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Detail 2

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Seda B

on 11 October 2013

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Transcript of Detail 2

Case 6 –
Expatriate compensation at Robert Bosh GMBH: Coping With Modern Mobility Challenges
page: 312

Tanisha Dawking S00120119
Seda Bideratan S00140154
Maraiata Cecelia S00123872
Evelyn Lal S00119790
Jessica Georges S00118990
Rachel Skelton S00106351

Why did Bosch state the cost-of-living allowance amount as a CEHB-based sum and a separate cost-of-living supplement n the first and the second years of the assignment in the balance sheet of Korea?
There are many costs involved concerning international assignments. There are six main areas of most common allowances.
Can alternative assignments substitute for traditional expatriate assignments?
With the changes in technology, travel and communications many companies are able to use short-term assignments as an alternative to the traditional assignment.
What are the major barriers to the localization of expatriate managers?

Language barriers

Management styles

Psychological stress

Knowledge transfer

Case Overview & Cost-of-Living Allowance - Tanisha

Allowances & Cost Safety Measures - Mariata

Solutions to Designing Internal Assignment Policy - Jessica

Opportunities and Barriers of Substituting Alternative Assignments for Traditional Assignments - Evelyn

Outsourcing Administration Functions - Seda

Major Barriers of Expatriate Managers & Foreign Assignment Allowances - Rachel
6 Common Allowances
- Cost of living allowance
- Housing allowance
- Home leave allowances
- Education allowances

Relocation allowances
- Spouse Assistance
Allowances at
Relocation allowance
Efficient calculations of the cost-of living allowance
Cap on allowances
Housing allowance and/or costs
Travel Expenses

Cost Saving Measures
Shorter assignments
Outsourcing alternatives
Expatriate Benefits

Is it possible to design an Bosch Group internal assignment policy covering both expatriates and inpatriate in all international locations?
Main factor:
How to reduce costs of expatriates- mostly to the living expenses

Outsourcing Administration Functions

Foreign Assignment Allowance
Focus on Core
Cost and Efficiency Savings
Operational Control
Staffing Flexibility
Develop Internal Staff
Loss of Managerial Control
Threat to Security and Confidentiality
Quality Problems
Tied to the Financial Well-being of another Company
Remuneration for International Assignments 2009
Remuneration for International Assignments 2009
One of the measures used to reduce the costs of expatriation was to outsource elements of the administration function to external service providers.
Expatriate compensation at Robert Bosh GMBH: Coping With Modern Mobility Challenges
'I would rather lose money than trust.'
- Robert Bosch
High cost
Assignment failure
Employee unhappiness
Boost morale
Encourage productivity
Employees will feel
Looked after
Short-term Assignments
“According to KPMG's Global Mobility Advisory Services survey for the 2003-2006 period, approximately 75 percent of respondents use short-term assignments.”
Frequent-flyer assignments

Commuter assignments

Global virtual teams
Short-term Assignments
Opportunities & Barriers
Cost Efficiency

Personal & Work Issues

Work Effectiveness

What does CEHB index stand for?
A. Cost Effective House Benefit
B. Coastal Effect on Home Base
C. Cost Effective Home Base
What Changes to Travel Assignments were made to reduce costs?
A. Business to First Class
B. Home Travel introduced Business to Economy
C. Economy to First Class
D. All of the Above
Research with KPMG suggested possible solutions:
Relocation Allowance
Efficient calculations of the cost-of-living
Cap on allowances
Housing allowance and/or costs
Travel expenses

Although these methods are increasingly popular and not too hard to implement there are other factors that need to be taken into account:
Motivating potential expatriates
Impact of international assignment on professional careers
Family income

Using technology
Frequent flyer assignments
Commuter an rotational assignments
Global virtual teams

Other Alternatives
Is it Possible?
Klaus needs to do:
Multiple calculations
Negotiating with colleagues
Negotiating with external mobility services providers
Linkages ad implications operating across multiple HR functions and practices and geographic unitss

What other factors does Robert need to take inconsideration?
A. Food, shopping and social media
B. Cultural Factors, return of expatriates that didn't succeed
C. Sightseeing famous monuments
What is one disadvantage of outsourcing administration functions?
A. Quality Problems
B. Stress Problems
C. Going Overseas
What are some alternative assignments?
A. Facebook, traveling & telecommunication
B. Business trips, global virtual teams & cross-boarder commuter
C. Telecommunications, business holidays & international assignments
What are the major barriers of expat managers localization?
A. Food
B. Culture
C. Staff
What is one advantage of foreign arrangement allowance?
A. Increased Staff Moral
B. Lower Productivity
C. Assignment Failure
Full transcript