MM591
September 20, 2010
International Pay Systems
Riordan manufacturing has proven to be leader in the manufacturing industry with the production of plastic injecting molding. They have plants in Georgia, Michigan and China, and have even been carefully viewing their options for opening a plant in Japan. Riordan understands that with the possibility of expansion in global markets that there is a need for great legal and regulatory practices and policies that must be adhered to. The Human Resource department must be able to work closely with the foreign country in order to understand the customs and preferences of the locals while complying and enforcing privacy, copyright, and intellectual property laws. …show more content…
Senior mangers typically earn a higher gross salary than that of a lower ranked employee in many countries including Japan. Once the local taxation and cost of living are taken into account, it is estimated that the United States employee is compensated well than that of his Japanese counterpart. If Robert Lord was sent to Japan on the domestic terms, his buying power is reduced greatly although the gross salary would be higher. The spendable incomes need to be adjusted to meet the differences in the cost of living. In doing this the expatriate is assured of the same appending power in the host country as here in the United States. Several allowances and or incentives could also be added to the host country …show more content…
These issues revolve around negotiations which if there are too many premiums and inventive you will create an international stamped and unrest in the domestic pay system. On the other hand too few incentives given and you will influence people not to risk foreign assignment (Engle, 2007). Issues brought to light by trial and error, or the components and adjustments to domestic pay which comprise the company’s balance sheets. This so called stumbling to a “balance sheet” approach has comprised much of the case-oriented research relation to the pay of expatriates. Information on the cost of transportation options, suitable housing, education of the expatriate’s children, and other incentives needs to be facilitated by consulting firms, in which a pattern can be developed to have a standardized balance sheet approach (Briscoe, 1995). In doing this the company is able to adjust to the intention environment, but by relying on their own domestic