Case Study - 1 CASE BACKGROUND Brunt Hotels, PLC, owns more than 60 hotels throughout the United Kingdom. They recently acquired a small hotel chain headquartered in France. Brunt's chief executive decided that half of the new hotels in France would be retained and rebranded as part of the Brunt Hotels Group; the other half will be sold. This will support Brunt's strategic objective of growing the organization slowly to make sure that new ventures are well supported and opened on time and on budget Brunt's hotels are considered budget accommodations, they are functional, clean and reasonably priced. Most guests stay for one to three nights and are a combination of business and leisure travellers. The hotels are typically situated in downtown locations that are easily accessible by mass transit. Tourists are attracted to these hotels in popular visitor destinations where the many local attractions mean that they will not be spending much time in their hotel rooms. The organization has decided to use an ethnocentric approach and send some of their existing UK-based managers to France to lead the changeover of the new hotels and then manage them after they re-open. If this new overseas venture is successful. Brunt may decide to acquire other small hotel groups in other European countries. The organization would like to own 150 hotels in the next five years. Their 10-year plan is to own 300 hotels across Europe. This is an ambitious target, so it is important that the organization finds an effective formula to operate successfully in other countries. The management team liked your recruitment advertisement, but realized that they did not consider the salary for these new positions! Since the organization has never hired managers to work outside the UK before, they do not know how to start determining the compensation. * They provide you with the following information that they found on the Internet: Existing salary for managers is 30,000 (45,000 Euros) plus bonuses. n * Surveys show that the average salary for hotel managers in France is 60,000 Euros with no opportunity to earn bonuses. The directors 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 want to have a good range of incentives, Questions 1. What are the advantages and disadvantages of recruiting expatriate staff externally? 2. What are the international pay models explain briefly