European Hotels Plc owns 10 hotel chains across Europe. They recently acquired a small hotel chain operating in Jamaica.

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European Hotels Plc owns 10 hotel chains across Europe. They
recently acquired a small hotel chain operating in Jamaica. The
acquisition of a small hotel supports European Hotels’ strategic
objective of growing the organization but ensuring that new
ventures are well supported, opened on time and within budget.
European Hotels Plc is considered a budget accommodation; they are
functional, clean and reasonably priced. Most guests stay for one
to three nights and are a combination of leisure and business
travellers. The hotels are typically situated in European locations
that are easily accessible by ground transportation. They follow
the bed and breakfast model of hospitality. The organization has
decided to use a modified ethnocentric approach and send some of
their existing European-based managers to Jamaica to lead the
changeover of the new hotels and then manage them after they
re-open. If this new overseas venture is successful, European
Hotels may decide to acquire other small hotel groups in other
Caribbean countries. The organization would like to own four hotel
chains in the next five years. Their 10-year plan is to own eight
chains across the Caribbean. This is an ambitious target, so it is
important that the organization finds an effective formula to
operate successfully in the Caribbean. The organization has never
hired managers to work outside Europe and thus, the owners do not
know how to start determining the compensation and training needs.
However, they do know that: The existing average salary for
managers in Europe is 53,000 Euros plus bonuses. Surveys show that
the average salary for hotel managers in Jamaica is 45,000 Euros
with no opportunity to earn bonuses. European Hotels Plc current
pays management staff an average of 55,000 Euros, with the
opportunity for bonuses and commission. The owners want to have a
consistent approach as to how they compensate expatriates because
they expect their overseas business to expand in the future. They
also want existing employees to be enticed into working abroad and
know that they will need to have a good range of incentives.
Using the information supplied in the case and theories
presented by Dowling et al, (2013) propose an appropriate training
approach for the managers slated to go to Jamaica. Your answer
should;
- discuss the role of training as support to the
expatriates’ ability to adjust and perform in their new roles;
and
- propose relevant components of an effective
pre-departure programme.