21).
This has certainly been the case with KFC and its burgeoning operations in many Asian countries where cultural factors that can affect business operations are particularly pronounced. For example, according to Briscoe and Schuler (2004), "In a highly successful strategy, KFC employed a first-generation Chinese-American to return to China to establish its chicken restaurants. These international employees may not be placed on a full expatriate compensation package, but rather may receive a form of hybrid compensation, with some aspects of the package received by a traditional expatriate and some aspects of local employees" (p. 219). Even though these KFC expatriate executives may not receive the full measure of the compensation package offered counterparts in other countries, these assignments are widely regarded as being important to achieving longer-term career goals, professional development and providing valuable work experience in cross-cultural settings (Konopaske et al., 2009).
Evaluate the monetary and nonmonetary programs based on selected criteria, such as employee motivation, organizational commitment, and employee satisfaction.
The use of the above-described hybrid compensation and benefits package approach used by KFC for its expatriate employees in its China operations may not be entirely transferable to other countries where the company competes, but it appears to be especially well suited for its operations in China. According to Stroh et al. (2005), "On average, 15% to 20% of managers fail in overseas assignments, primarily because of problems adjusting to the foreign culture. For example, when KFC launched its first restaurant in...
123). By recruiting expatriate executives who possess the requisite cross-cultural savvy and experience needed to successfully make the transition from one culture to another, KFC has hit upon a "win-win" approach to expatriate compensation that models the way for other multinationals seeking to identify better ways to motivate their employee base, promote organizational loyalty and commitment and improve employee satisfaction.
References
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Glover, J., Rainwater, K., Jones, G. & Friedman, H. (2002). Adaptive leadership (part two): Four principles for being adaptive. Organization Development Journal, 20(4), 18-19.
Konopaske, R., Robie, C. & Ivancevich, J.M. (2009). Managerial willingness to assume traveling short-term and long-term global assignments. Management International
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Lamb, L.F. & Mckee, K.B. (2005). Applied public relations: Cases in stakeholder management.
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