As far as LSR plan to open up its base in India, the major problem for the management will be to deal with English in Indian accent. In view of the LSR Insurance companies decision to depute UK manager in India branch, there will be conflict in decisions between Indian and UK managers. The actual difference that may occur at the workplace is time and the employees will have to work during odd hours to answer the calls of UK customers. There is considerable difference in the work attitude between the local employees and UK managers which is primarily related to drive motivation. Further it has observed that Indian employees are very difficult to work in teams alongside UK employees. Further certain policies which UK employees are used to may give rise to conflicts among Indian employees.
LSR Insurance is experiencing difficulties in finding three managers to depute to India because there have been no previous appointments to India and lack of overseas experiences among the managers. Additionally potential applicants may be reluctant to go outside UK citing career development reason which might get affected once they leave the country. In view of the above circumstances, it is necessary for the LSR Insurance to offer lucrative pay packages to potential applicants so that they can be sent to India to manage the proceedings of the company. But the lack of clear policy about the pay and benefits for the employees while they are working in India is taking the potential managers on the back foot to apply for positions in India. Therefore it is necessary that all the multinational companies should formulate policies in order to lure the employees to take overseas assignments offering lucrative pay benefits and other promotional packages which is opined by (Brewster et al 2003) wherein it is stated that when the managers are expatriated to different nations, the organizations have to pay more in addition to normal salaries that were paid when in parent unit. Further Brewster, Schuler and Fenwick (Brewster, H et al (2003, p.158) mention that the expatriates are the most expensive people that an organization employs and involves a range of complex issues and performance appraisal systems for them are far from universal. Multinational companies can apply various methods like combining formal performance appraisal methods with visits from Head Quarter and back to HQ. LSR Insurance can adapt the same method as mentioned by Brewster, H et al (2003, p.158) to the managers assessing the frequency of visits and value of Indian currency. However, as the companies in UK pay their employees in pounds, the same number of amount in Indian currencies will be very low. Further Festing et al (Brewster, H et al (2003, p.167) states that organizational pay strategies are influenced by external factors and MNCs should follow different pay strategies to be effective in different countries and try to standardize pay strategy at a global level providing room for