Japanese Corporations (Case Study Sample)
American corporations vary in numerous and varied degrees from corporations of other countries. For example, in Japan, the government limits the highest wages a corporate officer may receive based as a multiple of what the lowest wage earner in the corporation receives. At one point, the highest paid employee of a Japanese corporation could receive only sixty (60) times the wage of the lowest paid employee of the corporation.
Complete short answer questions below:
Is this a wise regulation, or does this somehow limit the competitiveness of Japanese corporations?
Do you think that Japanese corporations in general may be less competitive in the world's marketplace than American corporations because of these renumeration (wage) restrictions?
What about the common scenario in which a board of directors in a major corporation chooses to provide bonuses and/or raises to corporate executive officers despite the corporation failing to have a profitable year?
What about a board providing bonuses and/or raises to top executives in years in which the corporation was forced to lay off?
While wage restrictions have their advantages, mainly in balancing wages between the highest earners and lowest earners, the same could have detrimental effects on the economy of a country from the global perspective. Wage restriction is not a wise regulation. As stated, the regulation may help in balancing wages, but the regulation can limit the competitive capability of a firm. It is so because wages are motivational factors. Therefore, a country like Japan might not be in a position to outsource employees from other countries. Such may confine a company to hiring the local staff, which means that the company will remain local (The Economist, 2010).
Wage restrictions limit the corporationâ€™s chances of success in global markets. As stated, the Japanese corporations are not likely to be the favorites for outsourcing labor compared to the American corporations. A flexible wage structure is likely to influence employee attraction to a particular corporation. Apart from this, wage restriction for Japanese corporations is also likely to limit the attraction of skillful staff from joining the companies (The Economist, 2010). Bonuses and raises for corporate executives should only happen when the company is doing well in the market. One of the factors that the board of directors should consider during the provision of bonuses and raises is the profitability margin.
When the directors provide bonuses without considering the p...
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