Table of Contents
Background of the strategy 1
Human Resource implication of a business 1
Expatriate vs. local 1
Advantages of Expatriates 2
Training or Recruitment is not needed 2
Managerial Knowledge 2
Existing manufacturing knowledge 2
Expatriates vs. Local workforce 2
Cross-cultural adjustments 2
Staffing policy 3
HRM policy 3
Homogeneous Factors to create better working environment: 3
Legal Implication in Hungary: 3
Rule Regarding Foreign Work Policy: 4
Labor law in Hungary: 4
Laws regarding company: 5
Laws regarding Taxation: 5
Laws of termination of Business: 6
Laws related to Investment: 6
Economic Factors that relates to ...view middle of the document...
There are plenty of reasons for shifting. And as Hungary is investment and labor friendly country the company decided to go there.
Human Resource implication of a business
The human resource implication is necessary in the business. In Hungary it is bit complicated. But it is not a big problem there. The growth rate and GDP is increasing there and the same time the inflation rate is under control. For the telecommunication sector it is really essential. It is also important to maintain a successful domestic and international market in this sector (Kalocsai, 2011)
Expatriate vs. local
In the Hungary there are some people who are not basically Hungarian. They come from abroad for work. This number is not significant. The management and training of these people is also tough. On the other hand the local people are skilled and they can be thought easily.
Advantages of Expatriates
There are significant advantages of expatriates. They have got some specific and special skill. That is all are the main advantages of being them in the company.
Training or Recruitment is not needed
As the PTM is comes from abroad into Hungary all the employees of it will be counted as the Expatriates. They need not to be recruited into the company as they are already works for the organization. And the same reason they need not to be train as they are already expert in doing their work.
People of Hungary have got lacking in this. They don’t have good managerial knowledge. The Expatriates have got this. And when they use it to the expert Hungarian workers they did their work better.
Existing manufacturing knowledge
Many Expatriates have got existing manufacturing knowledge. They might good skill also. They come to the Hungary only for better job. This knowledge works well in the organization. It also creates speed on it.
Expatriates vs. Local workforce
Expatriates and the local workforce have got significant differences and values. These ares-
The cross-cultural adjustments are very common in Europe. And it also works in Hungary. Different people of different culture are met each other and it is only for working purpose. This also works positively sometimes. The workforce sometimes willing to work more, in this working culture.
With the culture the language is also different in the workplace. For this the standard language is used. This will help everyone to understand the order of the management. Generally English is used. But sometimes French, Spanish or other different language is used with English.
This is also works well in Hungary. As the entire employee works well and they are also loyal to the foreign owner company.
PTM follow the law all the time and it is follow 1989 policy for its staffing. There is special section for the local employee. If this is not maintained then the government of Hungary may take steps against the organization.