CMRS Presentation (Japan)1
Transcript of CMRS Presentation (Japan)1
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COMPENSATION MANAGEMENT IN
()
Presented B
Raveena K
Reema Gu
Richa Sriv
Rohit Pal
Rishabh B
Shikha Du
Srishti Ku
Swati Prak
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Culture
In terms of professionalism Japanese portray an ideal picture.
Punctuality
Believe in rendering quality Service
Build a Supportive workplace environment.
Loyalty
Appreciate and render help when needed by colleagues.
Always Ready to Adapt and Innovate.
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Philosophy
Japanese Begin any business process by exchanging business cards.
They emphasize on being dressed formally during a business meeting.
Low inter Company mobility in employees.
Employee welfare is very much emphasized.
A systematic work culture.
Consider experience reliable for better performance.
Compensation planned as per seniority and not on efficiency.
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How Japan is different from the rest?
Effectiveness preferred over efficiency
Prefer being a quality producer than quantity.
Adapts changes
Always ready to innovate.
Loyalty high amongst employees for their organization.
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Components of Presentation
Compensation System in Japan
Employment Policies
Wage system And Promotion System
Labor Unions
Conclusion
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Compensation System
Employee Cost
Cash wage
Cash wage
Compensbesides
wage
Monthly wage
Annual bonus
unplanned
PlannedAllowances
Basic wage
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Compensationbesides cash
wage
i.Legal welfare
expenses
ii.Non legal welfare
expenses
I.Employee
pension
II.Unemployme
insurance
III.Health
insurance
Housinga.housing
b.meals
c.Health Ins
d.Property f
iii.Retirement
payment
iv.Recruiting
expenses
v.Educational
training
expenses
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e. Culture physical &
recreational
f. Private insurance
system
g. Employee accident
premium
h. Money gifts for
congratulations
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Wage System
There are three elements linked in long-term mutual commitment
On the Job Training:- Through this training workers acquire their profess
Systematic Job Rotation:- In this every worker assigned to new job/loca
three or four years.
Career Plan:- Through this an organization encourage their workers fo
commitment towards the organization.
Seniority based wage system Nenko Jorestuis also an expression for the l
training. Wages rises automatically with age and seniority. Under this syst
given annual wages increases independent what they actually do on the job.
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Wage Scale and Promotional Syste
In Japan, each company has its own wage scale and promotional system, however th
elements because they have to meet the workers expectations and customary practices.
The wage policies of each companies emphasize the importance of wage factors, or the
Some factors that determine the Wages In Japan are:
Bargaining power of Unions
Seniority and education
Prevailing Pay
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Wage Scale and Promotional System
Promotional System:-
Japanese companies follow a system named NenkoJorestu, in this system job p
increases in accordance with age and length of the service.
Japanese companies have operated it in dependence upon personnel evaluati
competence, performance and affecting appraisal.
This system makes it possible to set a wage curve that keeps pace with outlays that inc
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Wage Determination
Japanese Trade Union Federation, known as Rengo
The leaders of Rengo sit opposite the Japan Business Federation, every spring and n
wage hikes across the various fields of Japanese industry.
Unified Collective Bargaining of wages moved towards enterprise based unions(belong
federation) where joint consultation is preferred for solving most issues.
No direct participation of industrial unions or national federations in wage negotiation.
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Labour unions are organised at the level of individual companies.
Collective bargaining can be classified as moderate and limited to some big companie
ORGANISATION LABOUR UNION
TOYOTA Toyota workers Union
NEC NEC workers Union
HITACHI HITACHI workers Union
Each firm has its own wage policy.
Its management discretion to decide the manner in which wages are distributed.
-Age
- Length of the service
- Ability
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Wage Differentials
Enterprise size
Class of position
Education
Age group
Length of service
On the basis of skill
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In Japanese companies the amounts of pay increases are determined by collective bargainin
The amount of bonuses is determined through negotiation between labour and employers
For companies without trade unions, the wage negotiation results from the industries and b
similar to them will be their benchmark.
Wage Negotiation
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In Japan, white-collar and blue-collar worker, are managed under the same
regardless of job type;
Not much wage differences between both.
In Japan, wages are given on the basis of (age skill) rank system.
The amount of bonuses is also determined through negotiation between labour and em
are paid twice a year.
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