Human Resource Management International Pay Systems - Essay Example

Download file to see previous pages Conversely, there is evidence that paying workers bonuses based on organizational performance can markedly increase their effort and performance (Bateman and Snell 2004). Pay can thus be a powerful motivator in encouraging many workers to higher performance and greater growth. Nevertheless, effective pay systems--satisfactory for the worker as well as productive for the employer--are more the exception than the rule. External wage comparability is regarded as a means of achieving a degree of equity vis--vis other employees outside the employing organization. The assumption is that wages in the organization should be comparable to those outside it. The focus is on the going rates for comparable work with other employers.
If Robert Lord works in Japan, his pay would differ from those of the same age. There are first the components of what is paid out in respect of the work done in any one pay period. There is commonly a basic time-rate, but this may account for only a minor part of total earnings, for these may also contain forms of payment by results or bonus on performance; payment for overtime; premiums for shift, night, or weekend work; other allowances for work in special conditions; allowances for tools, clothing, or travelling time; and allowances for seniority or age (Schuler, 1998). Robert Lord's pay would involve housing, healthcare, transportation and premiums. Also, the company will have to spend additional resources on language training and his family. There remain amenities that are made available to employees generally, but are not provided in specified amounts to any one employee as part of his agreed and enforceable terms of employment. These amenities include subsidized canteens and recreational and educational facilities; medical services; contributory pension or life insurance schemes in which the participation of the employee is voluntary; and sale of the firm's own product to employees at concessionary rates. This different is equitable because the company will have to create favorable and comfortable conditions for R. Lord and his family abroad. Allowance must be made for the boundaries between the groups of occupations having been drawn differently in the various countries, but this will hardly account for differences as great as we find when we run our eyes along the bottom row and the top. But pay differentials are not the sole or very possibly even the main means by which the required allocation is sought in practice. There are also administrative incentives and pressures, which in Poland have been described as 'the long-standing policy of planned recruitment, the training of cadres and the planned employment of persons graduating from higher and secondary schools, housing policy, and social policy (Bateman and Snell 2004).
In several years spent in Japan, Robert Lord would lose his connections and relations in his home country. The company would have to support him and help to adapt to new environment. In 3-5 years, the company's structure and design, climate and resources would change significantly, so the 'old' workplace would be alien to R. Lord. The company would have to support Lord and his family to relocate back to the USA (Schuler, 1998). Pay for ...Download file to see next pagesRead More