The objective of this paper is to provide John Maynard, head of the human resource department of Tamiflex, with a sound recommendation whether he should accept Marit Iyang’s application for the position as the head of the new sales department in Bangalore, India. Iyang, born in India and currently working as a sales manager in the company’s German headquarter, is highly qualified for the job due to her MBA-degree and three years of working experience as an expatriate in a sales office in China. Marit Iyang’s possible compensation as an expatriate manager in Bangalore is calculated using the balance sheet approach and considering the COLA index. In contrast the salary of a local sales manager with comparable qualifications is evaluated with an empirical, self-made survey. While Iyang’s compensation consisting of a base salary, cost of living allowance, overseas service premium, hardship allowance and housing allowance would add up to EUR 129,312, the total annual costs for a local sales manager would not exceed EUR 15,000. Thus the labor costs for Iyang are significantly higher but the company would benefit from her local background as well as from her working experience in the headquarter of Tamiflex. Marit Iyang should definitely be assigned as the head of the sales department in Bangalore, India.
Table of Contents
1 Introduction
2 International Compensation
2.1 The Balance Sheet Approach
2.2 Expatriate Sales Manager Salary in Bangalore, India
3 Local Compensation
4 Advantages and Drawbacks of Hiring a Local vs. Expatriate Manager
4.1 International Staffing Policies
4.2 Ethnocentric vs. Polycentric Staffing for the New Sales Manager Position at Tamiflex’s Branch in India
5 Conclusion
6 ITM Checklist
7 Bibliography
Objectives and Topics
The primary objective of this paper is to provide a recommendation to the Human Resource department of Tamiflex regarding the hiring of an expatriate manager for a new sales department in Bangalore, India, based on a comprehensive salary and staffing strategy analysis.
- Calculation of expatriate compensation using the balance sheet approach.
- Empirical analysis of local market salary ranges in Bangalore.
- Evaluation of international staffing policies (Ethnocentric vs. Polycentric).
- Strategic assessment of candidate qualifications and cultural fit.
- Consideration of legal and operational factors in international assignments.
Excerpt from the Book
Ethnocentric vs. Polycentric Staffing for the New Sales Manager Position at Tamiflex’s Branch in India
In order to decide which staffing approach is the most suitable for Tamiflex’s the merits and constrains has to be analyzed with respect to the job description. Basically, the decision can be simplified by comparing the ethnocentric and polycentric approach because neither a geocentric nor regiocentric framework applies in this case and can therefore be neglected.
As the position to be filled, the Tamiflex sales manager for India, implies tasks such as building, motivating and leading the local sales team and further to establish and maintain customer relations a HCN is obviously an advantage. The polycentric compared to the ethnocentric approach is in favor with respect to the importance of a sales manager adapting to local conditions and in addition, workplace standards and wage conditions will stay normal. Moreover, a HCN compared to a PCN will achieve a higher acceptance from his sales team and consequently the expected working moral is supposed to be higher as well. The drawback of the polycentric approach is relatively low compared to the advantages. The potential trend of a HCN sales manager to be quasi-autonomous and not, or only partly, following corporate sales strategies defined in the headquarter has not the same significance as a motivated sales force and good customer relations.
With respect to the application of Marit Iyang for this position the benefits of PCN and HCN can be combined. She has the local background and advantages of a HCN and at the same time the knowledge and experience of working in the headquarter like a PCN. Assigning her as Tamiflex sales manager for India would actually mean with respect to her knowledge and background to combine a ethnocentric and polycentric approach into a geocentric one and strengthen the local subsidiary as well as the headquarter.
Summary of Chapters
1 Introduction: Defines the scope of International Human Resource Management and presents the specific case study of Tamiflex’s expansion into India.
2 International Compensation: Explains the complexities of expatriate pay and details the balance sheet approach used for calculations.
3 Local Compensation: Provides an empirical survey of local salary benchmarks in Bangalore to serve as a comparison basis.
4 Advantages and Drawbacks of Hiring a Local vs. Expatriate Manager: Analyzes various staffing policies and their specific application to the Tamiflex sales vacancy.
5 Conclusion: Summarizes the salary findings and reaffirms the recommendation to hire the candidate based on her unique combination of local and headquarter experience.
6 ITM Checklist: Offers a structured overview of economic, strategic, and legal factors relevant to the assignment.
7 Bibliography: Lists all academic and practical sources used for the research.
Keywords
International Human Resource Management, Expatriate Compensation, Balance Sheet Approach, Bangalore, Tamiflex, Local Compensation, Staffing Policies, Ethnocentric, Polycentric, Sales Manager, Pharmaceutical Industry, Hardship Allowance, Cost of Living, Global Leadership, Cross-cultural Management.
Frequently Asked Questions
What is the core subject of this document?
The document addresses the strategic and financial considerations for staffing a new sales management position at Tamiflex’s branch in Bangalore, India.
What are the primary themes discussed?
The core themes include expatriate salary calculation, local market salary benchmarking, international staffing models, and the balancing of local vs. global corporate interests.
What is the main research question or goal?
The goal is to determine whether it is advisable to hire Marit Iyang for the head of sales position in Bangalore and to establish an appropriate, defensible compensation package.
Which scientific methodology is applied?
The author applies the 'Balance Sheet Approach' for expatriate compensation and conducts an empirical, self-made survey of local market data to evaluate compensation fairness.
What is covered in the main body?
The main body evaluates international compensation components, compares them against local Indian salary standards, and analyzes the organizational impacts of using ethnocentric versus polycentric staffing policies.
Which keywords define this paper?
Key terms include IHRM, Expatriate Compensation, Bangalore, Balance Sheet Approach, and Staffing Policies.
Why is the salary for an expatriate in this case significantly higher than a local hire?
The expatriate salary includes premiums for hardship, overseas service, and the maintenance of a home-country standard of living, whereas the local salary reflects indigenous market rates.
How does the author view the potential conflict between staffing policies?
The author suggests that Marit Iyang acts as a bridge, successfully combining ethnocentric (headquarter knowledge) and polycentric (local cultural fit) approaches into a more geocentric strategy.
- Quote paper
- Dipl. Ing. MBA Matthias Beer (Author), 2011, International Salary. Head of the Sales Department at Tamiflex in Bangalore, India, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/262135
