USN
1 P E
PESIT Bangalore South Campus
Hosur road, 1km before Electronic City, Bengaluru -100
Department of MBA
INTERNAL ASSESSMENT TEST – 2
Date
: 28.04.2015
Max Marks: 50
Subject & Code : INTERNATIONAL HUMAN RESOURCE MANAGEMENT.112MBAHR445 Section
:A
Name of faculty: Mr.Nagabhushana R
Time
: 8.30-10.00 AM
Note:
1.
Answer all the Questions
a
Write down various factors that influence international compensation policy.
3
Cost of living
Duration
Economic conditions of host country
Organizational policy
Skills of the employee
b
Explain key components of international compensation.
7
 Key Components:
 Base salary
 Foreign services inducement
 Hardship premium
 Allowances
I. Cost-of-living allowance
II.
Housing allowance
III.
Relocation allowance
IV. Education allowance
V. Home leave allowance
VI. Hardship allowance
 Benefits
c
Explain approaches to international compensation.
 Going Rate Approach (also referred to as the Market Rate
Approach)
I.
MBA II SEMESTER
Based on local market rates
10
USN
1 P E
PESIT Bangalore South Campus
Hosur road, 1km before Electronic City, Bengaluru -100
Department of MBA
II.
Relies on survey comparisons among



III.
IV.
Local nationals (HCNs)
Expatriates of same nationality
Expatriates of all nationalities
Compensation based on the selected survey comparison
Base pay and benefits may be supplemented by additional
payments for low-pay countries.
Balance Sheet Approach (also known as the Build-up Approach).
 The basic objective is to ‘keep the expatriate whole’ through maintenance
of home-country living standard plus a financial inducement to make
the package attractive.
 Home-country pay and benefits are the foundations of this approach
 Adjustments to home package to balance additional expenditure in
host country
 Financial incentives (e.g., expatriate/hardship premium) added to
make the package attractive
 Most common system in usage by multinationals
2.
a
Write short notes on knowledge transfer in multinational companies.
3
Three levels of knowledge transfer, such as
7



individual and
group level
organization level
Knowledge Transfer between Parent and Subsidiary
MBA II SEMESTER
USN
1 P E
PESIT Bangalore South Campus
Hosur road, 1km before Electronic City, Bengaluru -100
Department of MBA
B.
Explain repatriate training.
I.
II.
III.
IV.
Dealing with Reverse Culture ShockTransferring knowledge
Mentoring expatriates
Conducting repatriate forums
c
Explain various types of expatriate training.
 Short lectures
 Perspective-taking exercises
 Role plays
 Simulation game
 Self-reflection and assessments
 Small group discussion
 Group problem-solving and card-sorting activity
 Question and Answer period
 Action Planning (application of training to trainees' own situation)
10
3.
Case analysis
10
Design a compensation package for expatriate going for two year assignment to
Germany from Indian subsidiary. Also justify the components of the compensation.
Assume his domestic present package as 2 lakh INR per month.
KEY: Consider all the components of international compensation.
MBA II SEMESTER