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Compensation in Japan; cross cultural factors to investing

Given your organizations intention to invest in Japan:

1. Address how compensation would affect organizational structure in Japan.
2. Summarize cross-culture factors relevant to investing in Japan. And summarize a country risk analysis for that same country.

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1. Address how compensation would affect organizational structure in Japan.

In Japan, employment and compensation systems (ECS) are different than those in the United States or other countries. The first important difference is the lifetime employment system that is common in large Japanese firms. The second important difference is the prevalence of the wage plus bonus system in Japan versus straight wage system in the United States. These low intensity incentives encourage employees to invest in firm-specific human capital. These attributes make Japanese system very effective when incremental innovation is required. Japanese organizational structure has flat hierarchies making decision making more participative and consensual. If ...

Solution Summary

The compensations in Japan, and cross cultural factors to investing is examined.

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