Solvay Assignment

Solvay Assignment Words: 1005

So cost efficiency is important for international mobility Competition There is a lot of competition in chemical industry globally which erodes labor base. Lack of in Europe and lower cost in emerging countries in Asia indicates that they should probably improve their operational efficiencies by acquisitions there. High priced drugs Because of higher priced drugs the demand for generic drugs increased and they should compete with companies producing generic drugs and should be cost effective S c Cultural Diversity There is a lot of difference in the working style and cultures in the Europeans countries.

There are a lot of stigmas even in English speaking /European countries which means that it is difficult to succeed internationally keeping in mind the cultural diversities L Compliance Costs The disproportionate regulations in European companies have become a competitive disadvantage for them and the compliance costs were very high which means there is a need for focusing on this before expansion Relocation Costs The increased concern for environmental pollution demanded companies to relocate there by increasing the relocation expenses which are to be considered before expansion Internal Analysis:

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Strengths Exposure for the employees to various countries and cultures Believed in the philosophy of continuous improvement Highly adaptable Remuneration keeping employees happy Well placed Monitoring system Following strategy of development of people to grow Maintaining database for all the employees Weakness Complicated and tiring processes Inability to calculate ROI Not enough scope for the young recruits Lack of transparency Calculation of packages is a problem Informal way of identification of potential candidates Limitations of policies Opportunities Transparency can be improved

Exposure for young recruits as well use of advance tools in calculations Reducing biasness in various processes Attract new young talents The reads Employees reluctant to move in remote areas Very high attrition rate Major decisions can be affected due to interpersonal relationship Listing the factors 1. Cost efficiency 2. Learning and growth 3. Motivation 4. Promotion 5. Repatriation 6. Selection 7. Compensation 8. Cultural adaptability 9. Balancing family benefits Vs.. Disability 10. Transparency 11. Monitoring System Identify and list factors The critical factor list from the above factors IS given below, 1 .

Cost efficiency 4. Selection 6. Balancing family benefits Vs.. Disability 7. Promotion 8. Compensation Analyses the factors Cost Efficiency: Cost effectiveness Of the international mobility System will have a direct impact on the company profitability. It includes a look at the revenue generation opportunities which are exposed to the growing competition and govern meet regulation. Attrition rate also increases as the employees demand high compensation for the relocation. Learning and growth: Beyond compensation, most of the expatriates will look at onsite opportunities to learn, earn and grow.

This acts as a critical motivating factor to learn about new cultures and develop personally and professionally. Also they might see this as a stepping stone towards higher growth in future. Motivation: To motivate employees to move and to stay with company other incentives like, onsite opportunities, compensations, promotions and opportunities to move up in the hierarchy will act as motivational factors for them to accept. Selection: The effectiveness of the expatriate would be determined based on the success of the expatriates which would help the international mobility to be successful.

Thus in order to select such successful expatriates certain qualities like cultural adaptability, nature, role adaptability, technical knowledge etc. Is required. This would further motivate the employees to work hard and hence results in job satisfaction driving them to adapt foreign culture. Repatriation: Employees often come back after their onsite exposure and quit their jobs to find a new one with a greater jump in salary. Expatriates should be given a suitable repatriation program so that their mobility can be utilized fully and attrition would be reduced.

Also they would get chances to test and enhance their skills. Balancing benefits between family and adaptability: An effective mobility system should be designed considering facts like family commitments of the expect like presence of schools etc. In locality and providing for education allowance, house allowance to ensure no diversion with respect to such factors and total commitment to work. Promotion: Internal promotion of candidates motivates the employees to work harder and grab the expatriate opportunities. International experience is valued anywhere for growth.

Thus company can win the loyalty and trust of the employees and would also encourage young talented individuals to become a part of the company and serve there for a long time Compensation: Balance sheet approach is what the company should follow to encourage employees to take up expect roles taking care of the purchasing power parity in the host country and offering incentives like mobility premiums for moving on to foreign assignments and also take care of income taxes and other taxation issues. The company should follow the balance sheet approach to encourage employees to take us expect roles.

Their compensation should be in line with the POP of the country so that they could pay their taxes and also should be offered mobility premiums for moving on to other countries. This would be a big motivation factor. Constraints No Constraints List options 1 . Expatriate Program: The employees who have similar ranks can go for the exchange/swap option where they can replace the other for a specified period of time. Pros Knowledge sharing because of swapping where one has to help other to continue the work The package determination would be easy The relative evaluation will be easy

The value addition can be determined Cons Relative evaluation may increase insecurity in the employees This would create an impression that the person is replaceable which might not be good move for them The economic benefits must be high for the employees to agree for this relocation Strict evaluation and the value addition concept might lead to high attrition The standard relocation period is not easy to determine Non-managerial employees might feel that they are not getting the chance to move for growth 2.

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