How does GM establish international compensation packages for host country national and expatriates?

For example, Peter said that in Russia, there are legal requirements left from the communism era like basic healthcare. GM as an incentive for retention, provide a better heath care plan than other companies, which is a benefit of the employees and become part of their salary. They also do housing subsidiaries to help pay for apartments in Russia and China and they do profit volume structure bonuses to help GM to reach goals target.) A common regulation in the EU is that employees are entitled by law to mandatory pay vacation of an average of 25 days annually.

while establishing some home based incentives to motivate and retain employees in emerging economies like China or Africa where they are not wholly established and personnel retention is one of the biggest hurdles that international companies face - the unemployment rate in urban areas in China was 4.10 % in 2010. This means that once you trained the employee, competitors will fight for those skills, therefore our international compensation packets will need to be competitive an cost- effective will conforming with both international regulation and company policies. Brining the corporate culture from General Motors USA where it was originated and trying to inject that culture into a foreign country, how do you balance those cultures trades and company polices from the region that you are operating while maintaining the dynamic of who GM is?.

For GM it is fundamental to be in tune with the culture of the country in which they operate. Peters, says There is a way of doing business that is about common no matter where you are but you are definitely sensitive to culture if you do not want to hinder your business. However, they implement their home based USA prophesies and general global manufacturing standards. GM has its own global purchasing and supply chain processes, those do not change at all whether you are in China or Uzbekistan, they are pretty much the same, but as far as how they deal with local government and how they deal with cultures they are very sensitive in the way that GM manages it. Peter, emphasized that Asian and African cultures are more sensitive on how the political and general country culture is intertwining with the daily operations were Western Europe and USA as very much alike. In Asia GM employees would start the morning exercising and everyone would wear the same jackets at the workplace, or parties and social events would be held according to their traditions and customs of the Asian culture. While in Western Europe there is little per say in that respect, GM held teambuilding activities, where is less culture specific but more general good nature, he describes it as right thing to do for the employees. GM also implements its corporative polices in their foreign operations like Sexual Harassment, Safety, Discrimination, Equal Employment Opportunity. Asian and Indian cultures are very team orientated and educational power houses- they are very proud as a group but no as an individual while Russian there are team orientated in a more sarcastic way he describes, the Russians are not individualist but they are more group orientated in the sense that they can hide and there is not accountability. In African cultures, education is not driven, the ability to earn global standards. The same centralized/ decentralized approach would fit Worthit Parners,. For more a process stands point, reporting, recording, technological it would make more sense to apply a more centralized approach just for the merely purpose of consistency on the daily operations in all our locations. However, a more decentralized approach will need to take place when we get in the humanistic aspect and when integrating or interacting with each country cultures.

What methods or local assets did you use to acquire talent and what is the most difficult hurdle of this task ? GM operates ( works) with three outside firm. For hourlies, he has two contract houses that he hire from, he has an open blanket contract for skill and non-skill labor. For exempt employees he has an outside services firm that the hire engineers, purchasing personnel or quality people. He does this for two reasons, one because if you hire on your books on some countries, depending on their regulations, you can not fire them so they basically do it for pure trial period he can then look at these employees for 6 moths to a year as a new hire. By doing this he views then for 6 t a year and decides whether or not he is going to hire them and be a permanent viability for the firm. He highlights that you need to be very sure about someone before you hire. (Russia?). Basically GM operates by tide then up through an employment firm where they actually shouldering the burden?. Because in Russia once you hire you are liable for.

One of the most difficult things in some countries like Russia, Africa and is to find first qualified personnel. Some countries educational system is very different from the one in the USA. He points out that the way that educated people in Russia is very book smart but not practical smart. They make people ready for society in the old school of communism still. He mentioned that the lack of capable personnel in countries like Africa or Russia is due to a growing of number of things such as country history, economy, and government system, etc. In those scenarios where is difficult to find first qualified personnel they end up with expats likes himself or they par shut people in for periods of time with different levels of expertise but not necessarily the experience that they need, in those cases they give them a lot of training and hope you can keep a retain. He says that keeping a retaining is the biggest problem that the have in an emerging economy like China and Russia where is growing at double digit grade in Moscow right now the unemployment rate is just 4.5 so retention is the biggest problem because they invest a lot of time and money on these people and now they have something that maybe somebody else may not have and other companies are playing the game for it so number one problem is educate and then retain, the combination of these makes it very challenging. Does GM follow a traditional compensation foreign-based packet for local employees or it is some type of a blend between America compensation? GM uses a combination of both, depending on the country there are some regulations in the legal structure that are mandatory, so they have to cover those. In Russia, for example, there are legal requirements left from the communism era like basic healthcare. GM as an incentive for retention, provide a better heath care plan than other companies, which is a benefit of the employees and become part of their salary. They also do housing subsidiaries to help pay for apartments in Russia and China and profit bonuses -volume structure bonuses to get to help reach goals target. A combination of both foreign and home country approach should work for Worthit Parners as well. Each international location has its own regulations that need to be implemented to hire. For instance, a common regulation in the EU is that employees are entitled by law to mandatory pay vacation of an overage of 25 days per, plus sick leave and a number of personal days off per year or maternity leave in Europe is regulated by law. Worthit as GM does, would have to customized their international packets according to the countries legal requirements while establishing some home based incentives to motivate and retain employees in emerging economies like China or Africa where they are not wholly established and personnel retention is one of the biggest hurdles that international companies face - the unemployment rate in urban areas in China was 4.10 %. This means that once you trained the employee, competitors will fight for those skills, therefore our international compensation packets will need to be both competitive and government regulated. How does the company over come cultural clashes.

What was the most difficult hurdle that the company had to overcome during the process of going internationally? If you had to do it all over what would you do different?.

Which Strategy they used

How does GM establish international compensation packages for host country national and expatriates? For most expatriates at GM salary starts with home country salary, and then its build upon several variables like the foreign location, tax equalization, standard of living in the foreign country, health insurance, housing allowance and repatriation cost. In the case where expats travel with families schooling fees and childcare cost will also be added. Peter points out that expats that travel with family cost twice as much that expats that travel alone. Airfares, company vehicle and moving expenses also become part of their competition package as well as annually performance base bonuses. For host country nationals compensation will need to conform foreign government regulations while matching GM corporative polices. For example, Peter said that in Russia, there are legal requirements left from the communism era like basic healthcare. GM as an incentive for retention, provide a better heath care plan than other companies, which is a benefit of the employees and become part of their salary. They also do housing subsidiaries to help pay for apartments in Russia and China and they do profit volume structure bonuses to help GM to reach goals target. A common regulation in the EU is that employees are entitled by law to mandatory pay vacation of an average of 25 days annually. The same approach can be applied to Worthit Parners . One size do not fit all, therefore compensation packages will differ depending upon international locations, expat expertise, cost of living abroad, performance, etc. The coordinate polices and procedures that effectively

balance the needs and request of both host country nationals and parent country nationals while establishing some home based incentives to motivate and retain employees in emerging economies like China or Africa where they are not wholly established and personnel retention is one of the biggest hurdles that international companies face - the unemployment rate in urban areas in China was 4.10 % in 2010. This means that once you trained the employee, competitors will fight for those skills, therefore our international compensation packets will need to be competitive an cost- effective will conforming with both international regulation and company policies