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CHAPTER 16 - International Pay Systems (The Global Context (Economic…
CHAPTER 16
- International Pay Systems
The Global Context
Economic
Capital flows / ownership
Taxes
Competitive market dynamics
Employee
Knowledge/ skills
Demographics
Attitudes/ preferences
Institutional
Social contract and regulation
Trade unions & Employer federations
Culture/ politics
Organizational
Technology innovation work roles
Strategic intent
Managerial autonomy & Information flows
Comparing Cost and Productivity
Labor costs and productivity
Cost of living and purchasing power
The Social Contract
Centralized or Decentralized Pay-Setting
Regulation
Comparing Systems
The Total Pay Model: Strategic Choices
Internal alignment
Employee contributions
External competitiveness
Management
Objectives of pay systems
National Systems:Comparative Mind-Set
Japanese Traditional National System
Bonuses
Allowances/benefits
Commuting allowances
Housing and geographic differential allowances
Family allowances
Base pay
Years of service
Skills and performance
Career
German Traditional National System
Bonuses
Allowances and benefits
Base pay
Strategic Market Mind-Set
Exporter: "Headquarters Knows Best"
Localizer: "Think Global, Act Local"
Globalizer: "Think and Act Globally and Locally"
Expatriate Pay
Elements of expatriate compensation
Housing
Allowances and premiums
Taxes
Salary
The Balance Sheet Approach
Ensure that expatriates neither gain nor lose financially
Minimize adjustments required of expatriates and their dependents
Ensure mobility of people to global assignments as cost-effectively as feasible