Expatriate Remuneration Literature Review Management Essay

The collection of managers to serve abroad has been a location of strong interest for practitioners as well as academicians in their initiatives to ascertain predictors of success during international assignments (Doyle, 1990). Some experts are predicting that a person issue may impact the choice and in the end the success of expatriate professionals more than the variables examined in the past, particularly, the remuneration of expatriate (Harvey, 1985).

As important as the topic of expatriate remuneration is apparently, very little research has been conducted on the remuneration of expatriate who have been relocated internationally in accordance with that on expatriate managers. A vast majority of the previous research on remuneration of expatriate has been concerned with domestic relocations and the resulting discord, stress and modification for the remuneration of expatriate.

The first purpose of this research is to look at theories that relate to the potency of expatriate remuneration to glean insights into how to conform these approaches in multinational like Royal Dutch Shell. Another goal is to look at previous research workers' efforts in accordance with the remuneration program itself. The principal focus of this study is to gain insights into the unique problems associated with the expatriate remuneration.

In today's global environment overall economy, providing equitable remuneration for expatriates is a challenge for most employers. Browsing the package as a whole rather than the total of its parts, often helps a more effective design. Companies that contain successfully designed deals for expatriates have developed plans that gratify their own financial requirements while still staying flexible enough to adopt to specific needs and changes in a global environment. In order to review the remuneration package of expatriates there must be certain aspect or components is highly recommended like the component of cash which include basic salary, premium for the specific tasks, cost differential allowances, worker advantage, medical coverage etc. Most multinational company deals for expatriate include at least a few of the a) an allowance or salary increase to keep the expatriate's standard of living at least at the particular level loved at home b) foreign service allowance c) a hardship allowance (for certain places) d) contribution towards, or provision of, accommodation e) inducement or incentive factor f) education allowances g) paid local leave h) additional leave i) settlement from distance from home j) promotion k) terminal bonus l) insurance and medical care.

International benefits and settlement are determined to mirror the special status of the international managers. In addition to salary, taxes and benefits, international professionals also obtain different allowances within their overall reimbursement to simply accept an abroad position. The Foreign Service high grade is dependant on the expatriate's level in the company, the family size, and the positioning. Expatriate compensation programs are an important concern in managing incentive systems. Compensation plans for expatriate managers must be competitive, cost effective, motivating, reasonable and easy to understand, regular with international financial management, easy to manage, and simple to converse (Sherman, 1998).

Expatriate Remuneration Literature Review

There has been little theoretical research and few empirical studies related to remuneration bundle of expatriate. However, the expatriate literature on remuneration provides a starting point for evaluating the stress/ discord associated with remuneration program in general and, from that, to anticipate the stress for expatriate pay. Primarily, I completed brief books review to continue my research on expatriate remuneration in Royal Dutch Shell Group. It provided me a critical look at company's HR strategies regarding expatriate remuneration and benefits used. I experienced the existing theories about remuneration and benefits and deeply analyzed the current developments in the global Oil and Gas industry analysed various problems to find out why industry is facing lack of execution of effective remuneration for the expatriate and find out the possible strategic solutions for this issue. The need for HR regulations for recruitment and retention of expatriates is obvious as the company is facing powerful competition. Regarding to Remuneration & Profit Insurance plan at Royal Dutch Shell (2009), "With a large number of Expatriates about the world, we ensure that they get the kind of deals and ongoing support that makes their relocation a positive experience. Our team deals with all insurance policies for international flexibility, including short and long term international tasks as well as international rotators, commuters and recurrent international business travel. "According to Armstrong (2002), there are two basic approaches to devising expatriate pay deal: home-based pay and host based pay. The home based pay strategy aims to ensure that the value of the expatriate's salary is equivalent to in the house country. Alternatively host based mostly pay approach provides expatriate with salaries and benefits such as company cars and holidays that happen to be in the brand with those directed at nationals of the host country in a similar jobs.

The emphasis of the research could be the expatriate remuneration and if there is some difference among the list of expatriates that will generate the problem company itself as matching to (EBSCO coordinator, 2010), Pay differentials between local nationals and expatriates working alongside them stay substantial in Traditional western firms working in Central and Eastern Europe, regarding to a recently released review jointly conducted by Coopers & Lybrand, the international professional services firm, and Monks Collaboration, remuneration consultants in the U. K. and European countries. The review, which analyzed management pay issues in the Czech Republic, Hungary, Poland and Russia, discovered that pay levels for expatriates in Russia are up to ten times those for local nationals used in similar duties, within the Czech Republic, an expatriate may be paid up to eight times more than the neighborhood national.

In today's intensely competitive labor market attracting and keeping the best and brightest professionals is the lifeblood of any successful business with global functions. Further, experienced expatriates are usually more valuable than ever before as organizations continue steadily to prolong their global market segments. This is vital since organizations need expatriates who can lead the demand as they seek out new global clients and new revenue channels (emeraldinsight, 2010).


The research technique used must have the ability to give reasonable answers to the study question and fulfil the goals of research. A couple of two mostly used research methodologies i. e. Deductive Way and Inductive Strategy. I will suggest Inductive approach because of this research which is dependant on collecting data, analysing it and then developing a theory. There is no established hypothesis as in Deductive procedure. Inductive strategy uses qualitative data alternatively than quantitative data and is not rigid procedure like deductive strategy (Saunders et al. , 2007).

In this research work, I am analysing the challenge of expatriate remuneration in Oil and Gas Industry; I must identify causes of expatriate remuneration and then devise a theory for effective expatriate remuneration in the company selected. The choice of approach directly affects the study strategy, type of data collected and data evaluation. Alternatively of Inductive approach, I can use mixture of both deductive and inductive approaches to implant more self-assurance in my own research work. The reason not to only use deductive strategy is its rigidness and its own circulation from generalization to specific focus research. Easterby-Smith et al. (2002) argues in Saunders et al. (2007) that with Inductive Way, appropriate research strategy will be Empirical review focusing on observations of particular event or experience to gather data where analysis of small sample of themes might be appropriate alternatively than large sample and viewpoint behind this strategy is Phenomenology. Research strategy will focus to observe effectiveness of expatriate remuneration strategies to establish the new insurance policies or changes in current strategies.

My research design depends on research study research strategy that is defined as strategy affecting empirical investigation of a particular contemporary sensation within its real life context using multiple sources of evidence (Robson, 2002 cited in Saunders et al. , 2007, p:139). This approach is helpful to cope with complexness of research by allowing concentration on framework of research details giving its wealthy understanding and generating more explanatory and exploratory research. With research study strategy, there could be various data collection techniques as both principal and extra data will be needed. Just as this assignment I will not package with the primary data therefore focus would be the secondary data. The secondary data collection will be through observation and documentary research of various areas of the organization by reading paperwork of HR guidelines in practice on expatriate package, analysing reports, memos, archives and industry figures etc. Qualitative data analysis is dependant on conceptualization. The data documented can be analysed to develop theory using various techniques like Grounded theory or Content analysis etc. Computer Aided Qualitative Data Research Software (CAQDAS) like N6, Hyper RESEARCH or NVivo can be used for this function. Proposed data analysis technique for this research is Grounded theory where data collection starts without development of a short theoretical framework and theory is developed form data produced by series of observations. Grounded theory works in three levels; at first stage data will be sorted using open coding technique that allows naming and categorizing phenomenon through close evaluation. At second stage, using axial coding data cracked into discrete parts is meticulously examined and compared for similarities and variations and questions asked are shown in data and marriage in data categories is recognised. At third level called selective coding, we assimilate these categories to develop the idea (Corbin & Strauss, 1990, 1998).

Ethical Issues:

There are always some moral issues from the implementation and execution of an good research work. I will give credited importance to the aspect of research and can comply with code of ethics to deliver an excellent research work. Some possible moral conditions that may rise in this research project are as follows

Integrity of data and intellectual property privileges will be of high goal along with data safety and accuracy. I'll comply in honest and ethical manner throughout research and steer clear of any misrepresentation or plagiarism. All publications or research material used will be quoted and referenced systematically.

I will make sure that research work is natural, free form any bias and undue affect. Research results will be used ethically for benefit for company with complete confidentiality and educated consent of particular authorities.

Research Limits:

The proposed research has some limitation and threats that could affect its credibility and reliability as follows;

The research work will be focused on one i. e. Royal Dutch Shell and results obtained might not be true (applicable or generalisable) for other organisations in Olive oil & Gas industry.

As there is absolutely no existence of most important data so may be the study is not exact and based on assumption.

There are tool and time limitations for this research as to create more specific results it requires huge resources and time. Hence time and reference constraints may influence the grade of research.

There will be limited observation of the HR tactics and actual steps within the company. For sound results you will see need of observations because behaviour cannot be measured or seen but we can feel and infer them.

The business data will be collected from various resources including publications and online materials. In this case the validity and dependability of some of information cannot be guaranteed.

These restrictions can either be removed or I could reduce their impact by adopting more careful and in-depth approach to research.

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