Cross culture Essay Example | Topics and Well Written Essays - 2500 words

Cross culture - Essay Example The international transfer department is responsible devising policies related to the international assignments. As regarded by LVMH â€Å"international mobility† is the essence of career development which helps the potential candidates to acquire the requisite competencies. This case study delineates the procedure of international mobility. This assignment focuses on some of the key issues of international mobility so as to bring in light the challenges faced by the company and ways to tackle with them. Challenges faced by LMVH: LVMH, being a global company, required the expertise of personnel having international experience. To assure the availability of potential human resource who could operate anywhere in the dominated market, company decided to build in a pool of such asset by moving them internationally as part of their career development process. International mobility is the reality which has become pertinent for almost every global organization to work effectively in a cut throat competition. International assignments are considered as one of the most potent means of developing â€Å"Global leaders† (Stroh & Black, 2005). ... This at times become quite frustrating, time consuming and even more expensive when dealing with the potential subject’s non-technical requirements. The situation grows even more problematic when people try to compare there package with others holding same position in different companies within the group. LVMH follows a â€Å"balance sheet approach† to devise an appropriate salary for the expatriates. This approach is widely used owing to its advantages for an international assignments; it treats all the employees with equity without creating a difference in their salaries owing to the market rate of the host country, this in turn reduces the chances of uncertainty thus encouraging employees to take on the assignment (Stroh & Black, 2005). However, the increase in the firm size surges the administrative burdens and thus the cost. â€Å"Security benefits† is yet one other concern that needs to be dealt with appropriately when laying out the package. Security packa ges generally differ in each country. Devising a package keeping in view the host countries requirement at times is problematic owing to the complexities involved in it. Every country has its own rich culture strongly held by its dwellers. Cultural differences strongly impede the process of adjustment by a foreigner because of differing managerial values (Bigoness &Blakelly, 1996). Thus to ease out the process, LVMH believes in the training its employees. However training process is time consuming and the adjustment is left on the employees to deal with. Moreover devising and then implementing appropriate cost effective policies for managing international assignments and recruiting process pose a significant risk to