Holiday Villas owns more than 40 hotels throughout the United States. They recently acquired a small hotel chain in Brazil (6 hotels), with the objective of growing the organization globally and establishing an international presence.
Holiday Villas are family style rooms, typically two bedroom suites and a mini kitchen that cater to families on vacation who want to spend time in a low budget but well located area.
Most guests stay 3-7 nights, and most guest are families or groups. The hotels are typically located in cities with tourist attractions, near downtown locations that are easily accessible by mass transit.
The organization has decided to use the acquisition of the hotels in Brazil as a pilot project and if all goes well, they will consider acquiring other hotel chains across Europe and South America. This is a strategic endeavor, so it is important that the organization finds an effective formula to operate successfully in the global arena.
The organization has never owned hotels outside the US before, and has hired you to provide consultation on how they should proceed.
This assignment allows you to demonstrate mastery of course outcomes 2 and 4:
- Distinguish national and global culture and the impact they have on the globalized workforce in order to contribute to human resource practices across countries and cultures
- Analyze and assess global human resource policies, practices, and functions in order to meet an organization’s goals and objectives while maintaining the values and traditions of the local culture
The management team has now hired a manager for each hotel. The managers are PCNs (parent country nationals). Now they need to figure out how to develop a compensation plan that is aligned with the company’s compensation but also takes into consideration the host country’s financial situation. You are asked to:
- Put together a compensation plan along with a balance sheet. Assume that the base salary of a manager in the U.S. is $7500 a month. You may need to do some additional research to find out what taxes are in Brazil, what is a typical housing allowance, and cost of living.
- List the top three benefits that should be offered to the expatriate. Explain why you chose these as the most important. Support your choice with literature.
Use at least three course resources for this assignment.
Please use these references for the citations:
Lowe, K. B., Milliman, J., Cieri, H. D., & Dowling, P. J. (2002). International compensation practices: A ten-country comparative analysis. Human Resource Management, 41(1), 45-66. doi:10.1002/hrm.10019
(PDF) International Compensation Practices: A Ten-Country … (n.d.). Retrieved July 7, 2020, from https://www.researchgate.net/publication/227722802_International_Compensation_Practices_A_Ten-Country_Comparative_Analysis