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 Benefits
Part A: Answer each of the following questions in one or two paragraphs. Each answer is
worth 15 points.
1. Compare and contrast the pay and employment practices common in Japan with the pay
and employment practices common in Germany.
Over the years, both Germany and Japan have a very strong industrial foundation. Many
Nations heavily dependent on the export products from these two nations(Germany and Japan).
Their industries are based on capital intensive production process with high labor cost. Both
countries face challenges of an ageing population. In spite of several similarities, they differ in
pay 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 differ
in definition of part-time working. In Germany, part-time working is defined as involving
working hour less than 35 hours a week. In Japan, part-time working is regarded as employment
involving 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 have
to pay any taxes. In Japan, this limit is 1.03 million yen per year (approx. 7,875 euros). In both
Japan 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
and Key Concepts in Compensation and Benefits
Part A: Answer each of the following questions in one or two paragraphs. Each answer is
worth 15 points.
1. Compare and contrast the pay and employment practices common in Japan with the pay
and employment practices common in Germany.
Over the years, both Germany and Japan have a very strong industrial foundation. Many
Nations heavily dependent on the export products from these two nations(Germany and Japan).
Their industries are based on capital intensive production process with high labor cost. Both
countries face challenges of an ageing population. In spite of several similarities, they differ in
pay 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 differ
in definition of part-time working. In Germany, part-time working is defined as involving
working hour less than 35 hours a week. In Japan, part-time working is regarded as employment
involving 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 have
to pay any taxes. In Japan, this limit is 1.03 million yen per year (approx. 7,875 euros). In both
Japan 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
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 each
factor 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 average
array 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 of
demand and nature of supply.
Product market factors: The external competitiveness depends on degree of competition and
level of product demand.
Organization factor: The external competitiveness in pay level depends on organization factors
such 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 effective
organizational tool?
There are several ways to judge a job analysis:
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 each
factor 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 average
array 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 of
demand and nature of supply.
Product market factors: The external competitiveness depends on degree of competition and
level of product demand.
Organization factor: The external competitiveness in pay level depends on organization factors
such 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 effective
organizational tool?
There are several ways to judge a job analysis:
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Subject
Human Resource Management