International Pay Systems

Essay by rlundayUniversity, Master'sA+, September 2011

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International Pay Systems � PAGE \* MERGEFORMAT �1�

Running head: INTERNATIONAL PAY SYSTEMS

International Pay Systems

University of Phoenix

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International Pay Systems

The purpose of this paper is to identify how Robert Lord's pay as an expatriate differs from the pay of a Japanese national of the same age, and whether the difference is equitable, taking into consideration that an expatriate's pay would include housing, health care, transportation, allowances, and premiums. Also identified are whether Robert Lord's pay is different if he were relocated back to the United States, and whether the difference is equitable. Finally, this paper identifies the effect of trade unions and employee involvement on the Japanese national compensation system and the role social contract plays in the Japanese system related to the organizational objectives at Riordan Manufacturing (Riordan). Riordan is a global plastics manufacturer employing 550 people with projected annual earnings of $46 million.

The company is wholly owned by Riordan Industries, a Fortune 1000 enterprise with revenues in excess of $1 billion. Riordan's major customers are automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers, and are now considering expansion into Japan, (Apollo Group, Inc., 2011). The company has three production plants: Albany, Georgia, Pontiac, Michigan, and Hangzhou, China. Now Riordan is considering an expansion to Japan, and Robert Lord is the expatriate who will be sent to oversee the production plant in Japan. Expats are "people who are citizens of the employer's base country; e.g., a Japanese citizen working for Sony in Toronto," (Milkovich & Newman, 2004, p. 523).

Compensation between Expatriate and Nationals

The assumption is that Robert Lord's pay is $140,000 per year in the United States. Because of cultural differences, Robert Lord's pay as an expatriate would differ from the...