International Pay Systems

Essay by didieveUniversity, Master's July 2008

download word file, 6 pages 0.0

When it comes to international pay there are many areas that are able to be researched. Employee compensation varies in all countries and is built around their traditions and way of life. Companies need to ensure that they understand the differences in the countries to be able to be successful when expanding their business internationally. This paper will explain what is needed to be accomplished by Riordan Manufacturing to successful grow in Japan. It will show how Robert Lord's pay is different in the United States than in Japan and if the difference is equitable. It will also show if he was to move back to the United States how his pay would be changed and if it is equitable. The paper will also evaluate the effect of trade unions and employee involvement on the Japanese National Compensation System. And lastly, it will explain what the role the social contract plays in the Japanese system.

Organizations expanding their operations globally often send employees on temporary assignments to other countries to form strategic alliances, market products and services, and start new ventures. A variety of factors can impact the total cost of supporting international assignees and how their pay plans are designed ( In order to be successful an organization needs to know and understand the country's belief system and their social contracts. The organization must take both into consideration what strategizing their move. A social contract is defined as a contract between persons in a pre-political or pre-social condition specifying the terms upon which they are prepared to enter society or submit to political authority (

Riordan Manufacturing must compare the differences between the United States and Japan. The United States uses a more works mainly with little involvement from their government which is considered to be more of...