Comparative Analysis of Pay and Employment Practices: Japan vs. Germany, and Key Concepts in Compensation and Benefits

Assignment comparing pay structures and employment policies in Japan and Germany.

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Comparative Analysis of Pay and Employment Practices: Japan vs. Germany,and Key Concepts in Compensation and BenefitsPart A: Answer each of the following questions in one or two paragraphs. Each answer isworth 15 points.1. Compare andcontrast the pay and employment practices common in Japan with the payand employment practices common in Germany.Over the years,bothGermany and Japan haveaverystrong industrialfoundation.ManyNations heavilydependenton the export products from thesetwo nations(Germany and Japan).Their industries are based on capital intensive production process withhigh labor cost.Bothcountries face challengesofanageing population. In spite of several similarities, they differ inpay and employment practices.Both countries differ significantly in terms of culture.In Japan,earnings are more strongly performance-related as compared to Germany.Both countries differin definition of part-time working. In Germany, part-time working is defined as involvingworking hour less than 35 hours a week. In Japan, part-time working is regarded as employmentinvolving shorter working hour than the full-time employees.In Germany, workers earning up to 400 euros a month or 4,800 euros a year do not haveto pay any taxes. In Japan, this limit is 1.03 million yen per year (approx. 7,875 euros).In bothJapan and Germany, more than half of the female employees are not in regular employment.(Seifert, 2010)The labor regulations in Germany are more effective than in Japan. As a result, in

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Germany, there is less inequality in pay and benefits between regular and agency employment,male and female workers, young and old workers. In contrast, in Japan, there is more inequality.2. What are the factors that affect external competitiveness in pay levels? How does eachfactor contribute to the overall pay level and mix decisions?The external competitiveness in pay levels refers to the pay relationship among organizations.i.e. the organization’s pay level as compared to its peers.The pay level refers to the averagearray of rates paid by the employer to employees. The pay level focuses on two factors:controlling labor costs, and attracting and retaining employees.External competitiveness in pay level depends on following factors:Labor market factors: The external competitiveness in pay level is influenced by nature ofdemand and nature of supply.Product market factors: The external competitiveness depends on degree of competition andlevel of product demand.Organization factor:The external competitiveness in pay level depends on organization factorssuch as industry, organizational strategy, size of organization, and individual managers.3. What are some of the ways used to judge a job analysis to ensure it’s an effectiveorganizational tool?There are several ways to judge a job analysis:
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