This research work evaluate and analyze the expatriate remuneration at Ford Motor. it reveals aim and objectives further more literature review explain about expatriate remuneration, on the other hand it depicts issues related to expatriate remuneration which highlights, different allowances such as separation allowances, clothing allowances, added responsibility allowances, relocation allowance, market rate approach, educational expenses, health insurance, holidays, home leaves etc. research methodology concentrate that data collection method which covers secondary data, primary data. whereas it explain qualitative and quantitative research as well. next section is about questioner which helped me to analyze data by graphical representation. graphical representation is very easy method to analyse data. where as ethical issues explain about administration services, tax equalisation etc. limitation tells about the importance of time and finding of this report is not applicable to the other multinational organisations.

finally, last but not least conclusion.

Sources for this research include article, journals, organisational websites, media and commentary of academic experts of expatriate and strategic management. The first section of my report tells about research question and literature review, which gives idea about expatriate remuneration, where as second section explain and justification of research methodology. Third section describe data analysis, ethical issues involved and limitation of my research, and finally it revels conclusion.

2. RESEARCH AIM AND OBJECTIVES

Today many companies growing their business globally, for variety of reasons. Naturally they want to send home country employee abroad or hire host country national or hire third party employee to look after companies foreign operations. All 3 cases are connect to good remuneration packages. So it’s become very important to multinational organisation, to concentrate on expatriate remuneration and related issues. By taking into account all this fact, my research aim and objectives are as follows.

(2.1) Aim

Aim of this research is to investigate the effectiveness of expatriate remuneration in a ford motor

(2.2) Objective

-To design of remuneration strategies, and systems to achieve organisational strategy

-To prepare a report and corresponding result circulated to the senior management staff based at Ford Motor.

3. FORD MOTOR

Ford motor is one of global leader in automotive industry. They have manufacturing and distribution centre across the six continent like North America, Europe, Asia pacific, Latin America, middle East, Africa, Caribbean. Approximately they are employing 201,000 employee in 90 countries. The companies have variety of automotive brands and that includes Ford, Lincoln, Mercury, Volvo. further more company have their own financial services like ford motor credit.(Ford, 2009).

4. LITERATURE REVIEW

Many authors have different thoughts about remuneration but the spirit an essence remain same. The literature review suggests that, (Krueger, 2007) “as pay levels increase, the attraction of potential employees increases along with the likelihood of job acceptance and the quality of job applicants”. (Kerr, 2002) “Remuneration systems represent a powerful and unique means for influencing an organisation’s culture”. According to Schloss (2009) “remuneration is systematic tool which include important variables within an organisation such as job design, management philosophy, performance appraisal, training and development and superior subordinate relationship.” on the other hand Porter defines, (Porter, 2003 ) “remuneration practices directly influence the decision an employee makes about whether to join an organisation, when to quit and whether to come to work”.

Attractive remuneration packages are play a vital role in attracting and retaining good employees in multinational organisation. Attractive remuneration package must have to consider different allowances like relocation allowance, clothing allowances, separation allowances, hardship allowances, added responsibility allowance, car allowances, apart from this it must consider home leave, physical condition insurance, holidays (public holidays, and annual leave), etc. on the other hand, lack of attractive remuneration packages link to employee dissatisfaction, increased absenteeism etc. because of this, Today multinational organisation gives more attention to expatriate remuneration packages. further more expatriate remuneration package are different in different multinational organisation, also different in different countries because of laws and regulation.

Expatriates defined as “employees of business and government organizations who are sent by their organization to a related unit in a country which is different from their own, to accomplish a job or organization-related goal for a pre-designated temporary time period of usually more than six months than five years in one term.” (Evers,2005). When a company expands internationally, managers are generally responsible for ensuring that operations are staffed. (Bohlander & Snell, 2007) There are many ways a company can staff a new global operation. Out of them one is the company can send people from its home country. These employees are often referred to as expatriates, or home country nationals. second, it can hire host-country nationals, natives of the host country, to do managing. Third it can hire third-country national, natives of a country other than the home country or the host country. Each of these three sources provides certain advantages and certain disadvantages. Most corporations use all three for staffing their multinational operations, although some companies exhibit a distinct bias for on or another. However, that host countries sometimes restrict their choices by passing laws and regulations designed to employ host-country individuals. Tax incentives, tariffs, and quotas are frequently implemented by the host country to encourage local hiring. In addition, the company must consider the air fares to and from the destination, which are not insignificant when individuals are accompanied by their families and may return once or twice a year for leave, or need to go to a holiday resort for test and recuperation. Employing local nationals is usually much cheaper and has distinct local political advantages by comparison with expatriation, but many organisation continue to mix the local workforce with at least some management from the headquarters. It is often only possible to maintain an expatriate’s home standard of living at noteworthy cost to the company, particularly if the spouse is working as well. A pre-assignment trip to the host location to allow the expatriate and accompanying family to decide whether they can live in the host location, as well as a cultural briefing before going, is recognized as a way of minimizing assignment failure, language tuition and independent financial counselling are often arranged for expatriates at this stage and are recognized as diminishing anxiety quite co