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International Pay Systems Chapter Outline

Chapter Sixteen

German National System Strategic Comparisons: Japan, Germany, United States

Strategic Market Mind-Set Localizer: “Think Global, Act Local” Exporter: “One Size Fits All” Globalizer: “Think and Act Globally and Locally”

Expatriate Pay Elements of Expatriate Compensation The Balance Sheet Approach Expatriate Systems → Objectives? Quel dommage!

Borderless World → Borderless Pay? Globalists

Your Turn: Back to Classic Coke

Managing Variations: The Global Guide

The Social Contract

Culture Culture Matters, but So Does Cultural Diversity

Trade Unions and Employee Involvement

Ownership and Financial Markets

Managerial Autonomy

Comparing Costs Standard of Living: Basket of Goods versus Big Mac

Comparing Systems The Total Pay Model: Strategic Choices

National Systems-Comparative Mind-Set Japanese National System

Around the world, global competitive forces have changed the way people work and how they get paid. Toyota dismantled its seniority-based pay system for managers and re- placed it with a merit-based system.1 Toshiba offers stock awards, which were not even legal in Japan only a few years ago.2 Deutsche Bank, Nokia, Seimens, and other Euro- pean companies are experimenting with variable pay and performance-based (rather than personality-based) appraisal in their search for ways to improve productivity and control labor costs.3 Global acquisitions of former competitors change pay systems. As part of its

1A. Harney, “Toyota Plans Pay Based on Merit,” Financial Times, July 8, 1999, p. 20. 2Interviews with Toshiba managers, included in G. Milkovich, M. Bloom, and A. Mitra, “Research Report: Rethinking Global Reward Systems,” working paper, Cornell University, 2000. 3Also see Pay in Europe 2003, Remuneration Policy and Practices (Surrey, England: Federation of European Employers, 2003), and the FEE’s website at www.euen.cok.uk; Zhong-Ming Wang, presentation to Cornell University Global HRM Distance Learning seminar, Shanghai, China, March 2000; Conference Board, “Organizing for Global Competitiveness—Headquarters Design Report,” No. 123399RR, and “The Country Subsidiary Design Report,” No. 1180–97RR (New York: Conference Board, 1999).

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takeover and restructuring of Tungsram Electric in Poland, General Electric changed the pay system from a rigid seniority-based one to a more flexible one with broad bands, market-based wage rates, and performance bonuses.

Sometimes the changes in pay are directly tied to cataclysmic sociopolitical change, as in China, Russia, and eastern Europe.4 Central and government authorities had dictated pay rates in these communist command-and-control economies. Now these companies face the challenge of devising pay systems responsive to business and market pressures while maintaining a sense of social justice among the people. The Chinese situation is ex- traordinarily complex.5 State-owned enterprises are being asked to become profitable. The only hope of profitability is to cut the massively bloated head count. Yet an army of unemployed people without social support threatens stability and even government sur- vival. Some state-owned enterprises, such as Bao Gang, the country’s largest steelmaker, have moved to more “market- and performance-based” systems, even though labor mar- kets are just emerging in China. Shanghai Shenyingwanguo Security Company and Shanghai Bank have implemented job-based structures to help them retain key employees and increase pay satisfaction. Privatized enterprises, start-ups, and joint ventures with for- eign firms use a variety of approaches. Most surprising of all is that some town-owned enterprises are using stock ownership as part of their employee compensation.6 China may still be striving to become a worker’s paradise, but the experimentation with com- pensation approaches might already qualify it as a pay pundit’s paradise.

However, too much change and experimentation can have a dark side that threatens social unrest. There are reports from the Ukraine, Romania, and Russia of people going unpaid for months, without legal recourse.7 In Russia, a friend maintains that “the most effective pay delivery system is a brown bag under the table.”

4A. Puffer and S. Shekshnia, “Compensating Local Employees in Post-Communist Russia,” Compensation and Benefits Journal, September–October 1994, pp. 35–42; D. Soskice, “Wage Determination: The Changing Role of Institutions in Advanced Industrialized Countries,” Oxford Review of Economic Policy 6(4), pp. 36–61; D. Vaughan Whitehead, ed., Paying the Price: Crisis in Central and Eastern Europe (Geneva: ILO, 1999); L. Bajzikova, “Transition Process of HRM in the Slovak Republic,” Journal of International Human Resource Management, no. 2, 2001; N. Zupan, “HRM in Slovenian Transitional Companies,” presentation at CAHRS international conference, Berlin, June 2002. 5D. Dong, K. Goodall, and M. Warner, “The End of the Iron Rice Bowl,” International Journal of Human Resource Management, April 2, 2000, pp. 217–236. 6Zhong-Ming Wang, presentation to Cornell University Global HRM Distance Learning seminar, Shanghai, China, March 2000; comments by Ningyu Tang, instructor in Shanghai for Global HRM Distance Learning seminar; Peter Nolan, “China and the Global Business Revolution, Cambridge Journal of Economics 26 (2002), pp. 119–137; Jing Zhou and J. J. Martocchio “Chinese and American Managers’ Compensation Award Decisions,” Personnel Psychology 54 (Spring 2001), pp. 115–145; National Bureau of Statistics, People’s Republic of China, 2003; J. T. Landry, “Review of `The New Chinese Empire and What It Means for the United States’ by R. Terrill,” Harvard Business Review 81 (7) (July 3, 2003); Zaohui Zhao, “Earnings Differentials between State and Non-State Enterprises in Urban China,” Pacific Economic Review 7(1) (2002), pp. 181–197. 7G. T. Khulikov, “Ukraine Wage Decentralization in a Nonpayment Crisis,” chap. 11 in Pay the Price (Geneva: ILO, 2000); R. Yokovlev, “Wage Distortions in Russia,” chap. 9 in Pay the Price (Geneva: ILO, 2000); Muneto Ozocki, ed. Negotiating Flexibility: The Role of the Social Partners and the State (Geneva: ILO, 1999).

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So it is a time of unprecedented global change. Or is it? Let’s step back to gain some historical perspective:

There is hardly a village or town anywhere on the globe whose wages are not influenced by distant foreign markets, whose infrastructure is not financed by foreign capital, whose engineering, manufacturing, and even business skills are not imported from abroad, or whose labor markets are not influenced by the absence of those who had emigrated or by the presence of strangers who had immigrated.8

This is not a description of the 21st century. Rather, it is from 100 years ago. In the late 1800s, trade barriers were being reduced, free trade was being promoted, and mass mi- gration of people was underway. Thanks to transoceanic telegraphic cables, the speed of communication had increased dramatically, and investment capital flowed among na- tions. Yet by 1917 these global links had been replaced with a global war. Citizens be- came uncomfortable with the greater risks and uncertainty of globalization. Nations began to raise tariffs to protect domestic companies hurt by foreign competitors. Immi- grants were accused of “robbing jobs.” Historians conclude that “globalization is neither unique nor irreversible; it has and can again sow seeds of its own destruction.”9

MANAGING VARIATIONS: THE GLOBAL GUIDE

Understanding international compensation begins with recognizing differences and simi- larities and figuring out how best to manage them. How people get paid around the world depends on variations in the factors in the global guide depicted in Exhibit 16.1. Four general ones are listed: economic, institutional, organizational, and employee, with sub- factors. These factors have been discussed throughout the book; now they can be applied globally. But once we shift from a domestic to an international perspective, additional factors become important, too. Institutional factors, such as cultural traditions and politi- cal structures, and economic factors, such as differences in ownership of enterprises and the development of capital and labor markets, come into play. Further, social contracts and the role of trade unions must be considered. An example using the global guide illus- trates its usefulness.

Consider the DaimlerChrysler situation discussed in Chapter 2. Prior to Daimler’s ac- quisition of Chrysler, the pay for the top 10 Daimler executives equaled the pay of Chrysler’s CEO alone. As little as 25 percent of Chrysler managers’ total compensation was in the form of base pay, whereas Daimler managers’ base pay accounted for up to 60 percent of their total compensation. The merged DaimlerChrysler adopted a Chrysler- like approach to executive compensation. Some have even claimed that the attractive pay was the reason Daimler executives were eager to acquire Chrysler!

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8Kevin O’Rourke and J. G. Williamson, Globalization and History: The Evolution of a 19th Century Atlantic Economy (Cambridge, MA: MIT Press, 1999), p. 2. 9Kevin O’Rourke and J. G. Williamson, Globalization and History: The Evolution of a 19th Century Atlantic Economy (Cambridge, MA: MIT Press, 1999), chap. 14. Also see D. Rodrik, “Has Globalization Gone Too Far?” California Management Review 39(3) (Spring 1997); W. Keller, L. Pauly, and S. Reich, The Myth of the Global Corporation (Princeton, NJ: Princeton University Press, 1998); B. Kogut, “What Makes a Company Global?” Harvard Business Review, January–February 1999, pp. 165–170.

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The Daimler and Chrysler managerial pay systems are contrasted in Exhibit 16.2, using the factors in our global guide (Exhibit 16.1). At Daimler, the roots of today’s pay system reach back to postwar Germany and efforts to rebuild an economy devastated by two world wars. Rather than companies’ engaging in aggressive wage competition that risked inflation, trade union federations, employer associations, government agencies, and financial institutions participated in centralized negotiations. The result was industry- wide negotiated pay systems called tariff agreements. They included predictable annual increases, government-provided social welfare programs, and well-defined internal struc-

EXHIBIT 16.1 Guide to International Compensation

Competitive dynamics/ marketsSocial

contract

Culture/ politics

Capital flows/ ownership

Taxes

Demographics

Knowledge/ skills

Attitudes/ preferences

Strategic intent

Technology Innovation Work roles

Autonomy

Information flows

Trade unions

Employer federations

IN TE

RNATIONAL

Organization Success and Fair Treatment of Employees

C O

M PENSATION SY

ST EM

S

IN ST

IT UT

IO NA

L OR

GA NI

ZA TI

O N

A L

EM PLOYEE

ECONOM IC

© George T. Milkovich.

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tures. All companies competing in the same product markets (e.g., Daimler, Volkswagen, and Opel) used the same pay structures. Daimler could pay above these negotiated rates but had little reason to do so. Instead, it competed for employees based on its reputation as a place to work, its quality of training, and the like. As a result, managers were less likely to consider pay as an instrument of strategy. Instead, pay was a constraint deter- mined outside the organization.

German tax policies and labor regulations supported this approach. A typical Daimler employee’s marginal tax rate (percent tax on each additional euro earned) is 30 percent higher than a Chrysler employee’s tax rate on an additional dollar’s pay in the United States. As a result, the financial returns for working longer and harder in order to

Chapter 16 International Pay Systems 501

Pressures Daimler Chrysler

Economic

Competitive markets Moderately competitive Highly competitive Capital/ownership Few shareholders Many shareholders Taxes High taxes Moderate taxes

Institutional

Culture/politics Centralized process Decentralized process Regulations Strong government/ Limited government involvement

trade union involvement Trade union/ Tripartite-based social contract Individual/employer-based social employer federations contract

Organizational

Strategic intent High margins/high-end vehicles Lower-margin passenger vehicles, higher-margin SUVs, mini vans

Autonomy Lower autonomy Moderate autonomy Work roles Defined roles More flexible roles

Employee

Skill/knowledge Continuous learning On-the-job Attitudes/behaviors High commitment Committed but contentious Demographics Older, experienced Older, experienced

Total pay system

Sensitive to social contract; Aligned with strategy, sensitive to hierarchical; well-defined jobs competitive markets Base and benefits; annual increase Base/performance bonuses, stock

ownership Focus on commitment and Focus on performance and cost control continuous learning

EXHIBIT 16.2 Applying the Global Guide

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receive performance bonuses are significantly smaller at Daimler. Until very recently, broad-based stock options for employees were illegal. Daimler changed its plan in 2003 to award stock rather than options. Nevertheless, base salary and across-the-board pay in- creases (rather than performance bonuses and stock) remain the most common pay forms. In exchange for their higher taxes, Daimler employees receive generous welfare and un- employment payments, plus subsidized college and apprenticeship programs. As Exhibit 16.2 shows, centralized wage setting with predictable annual pay increases, concentrated financial ownership, and high taxes that support a wide social safety net still provide the context for the pay system at DaimlerChrysler’s German locations.10

Now let us apply the global guide to Chrysler. Chrysler reflects the competitive dynamics in U.S. labor and product markets as well as the social contract in the United States, which places high value on individual choice. Pay setting is highly decentralized. Government’s in- volvement is limited to ensuring conformance with minimum wage, tax, and discrimination laws. Chrysler’s managerial pay system is arguably aligned with its business strategy, is sen- sitive to market conditions, and includes significant performance bonuses and stock owner- ship. The U.S. tax code supports the use of stock options. The pay system is considered a strategic tool intended to competitively attract, retain, and motivate managers and also sup- port customer satisfaction and improve shareholder value (sound familiar?).

So the global guide serves as a tool kit. By examining each of the factors, we can in- crease our understanding of the variation in international pay practices. Five factors are particularly salient. These are variations in (1) social contracts, (2) cultures, (3) trade unions, (4) ownership and capital markets, and (5) managers’ autonomy. While we sepa- rate the factors to clarify our discussion, they do not separate so easily in reality. Instead, they overlap and interact.

THE SOCIAL CONTRACT

Viewed as part of the social contract, the employment relationship is more than an ex- change between an individual and an employer. It includes the government, all enterprise owners (sometimes acting individually and sometimes collectively through owner associ- ations), and all employees (sometimes acting individually and sometimes in trade unions). The relationships and expectations of these parties form the social contract. As you think about how people get paid around the world, it will be clear that different peo- ple in different countries hold differing beliefs about the role of government, employees, unions, and employers. Understanding how to manage employee compensation in any country requires an understanding of the social contract in that country. Efforts to change employee compensation systems—for example, to make them more responsive to cus- tomers, encourage innovative and quality service, or control costs—require changing the expectations of parties to the social contract.

10Lowell Turner, ed., Negotiating the New Germany: Can Social Partnership Survive? (Ithaca, NY: Cornell University Press, 1998); Hugh Williamson, “IGMetall Is the Trend-Setter: What Happened in the Strike Will Have Far-Reaching Implications,” Financial Times, July 2, 2003, p. 11; G. Thomas Sims and Christoper Rhoads, “Tough Times Humble German Labor,” Wall Street Journal, July 1, 2003, p. A9; NCEO “Global Employee Ownership Plans Continue to Grow,” Employee Ownership Report 22(2) (2002); Uta Harnischfeger, “DaimlerChrysler Mulls Removal of Options,” Financial Times, July 10, 2003, p. 17.

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Centralized-Localized Decision Making Perhaps the most striking example of the social contract’s effects on pay systems is in Ex- hibit 16.3, which contrasts the degree of centralization of pay setting among countries.11

The United States, United Kingdom, Canada, Hong Kong, and Brazil use highly decentral- ized approaches with little government involvement. Japan, Singapore, Germany, Bel- gium, and Slovakia are moderately centralized by industry sector. Sweden, Denmark, and Austria use highly centralized approaches that create a national pay system.

CULTURE

Culture is defined as shared mental programming which is rooted in the values, beliefs, and assumptions held in common by a group of people and which influences how infor- mation is processed.12 How critical is culture in managing international pay? Very impor- tant, according to some. The assumption that pay systems must be designed to fit differ- ent national cultures is based on the belief that most of a country’s inhabitants share a

Chapter 16 International Pay Systems 503

Highly Centralized

Argentina Brazil Canada France Hong Kong Mexico Singapore U.K. U.S.A.

Local Systems

Sector/Industrywide Systems

PAY-SETTING SYSTEMS

Nationwide Systems

Czech Republic Germany India Israel Japan Korea Slovakia Slovenia

Austria Belgium Cuba Hungary Poland Sweden

SO C

IA L

C O

N T

R A

C T

Localized

EXHIBIT 16.3 Social Contracts and Pay Setting

11Linda Bell and R. Freeman, “The Incentive for Working Hard: Explaining Hours Worked Differences in the US and Germany,” NBER paper, 2000; R. Freeman and L. F. Katz, Differences and Changes in Wage Structures (Chicago: University of Chicago Press, 1994); Income Data Services, Employment Europe 2000 (monthly newsletter). 12F. Trompenaars, Riding the Waves of Culture: Understanding Diversity in Global Business (Burr Ridge, IL: Irwin, 1995); H. C. Triandis, “Cross-Cultural Industrial and Organizational Psychology,” in Handbook of Industrial and Organizational Psychology, eds. M. D. Dunnette and L. M. Hough (Palo Alto, CA: Consulting Psychologists Press, 1994), pp. 103–172; H. C. Triandis, Individualism and Collectivism (Boulder, CO: Westview Press, 1995).

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national character. Therefore, the job of the global manager is to define the national char- acteristics that influence pay systems.

Typical of this thinking is the widely used list of national cultural attributes proposed by Hofstede (power distance, individualism–collectivism, uncertainty avoidance, and masculinity–femininity).13 Advocates of this view believe that “it is crucial that compa- nies adjust their compensation practices to the cultural specifics of a particular host coun- try.”14 Accordingly, in nations where the culture emphasizes respect for status and hierar- chy (high power distance, attributed to Malaysia and Mexico), hierarchical pay structures are appropriate. In low-power-distance nations (Australia and the Netherlands), egalitari- anism is called for.15

Advice can get even more specific. Companies operating in nations with “collectivis- tic” cultures, such as Singapore, Japan, Israel, and Korea, should use egalitarian pay structures, equal pay increases, and group-based rather than individual-based perfor- mance incentives. Employers in the more “individualistic” national cultures, such as the United States, United Kingdom, and Hong Kong, should use individual-based pay and performance-based increases.

But such thinking risks stereotyping.16 The question is not, What are the cultural dif- ferences among nations. Rather, the question is, Whose culture matters?17 Any group of people may exhibit a shared set of beliefs. Look around your college or workplace; engi- neers, lawyers, accountants, and technicians may each share some beliefs and values. Employees of organizations may, too. Your school’s “culture” probably differs from Mi- crosoft’s, Toshiba’s, or the London Symphony Orchestra’s. You may even have chosen your school because of its culture. However, you are likely part of many cultures. You

13G. Hofstede, “Cultural Constraints in Management Theories,” International Review of Strategic Management 5 (1994), pp. 27–51. 14R. Schuler and N. Rogovsky, “Understanding Compensation Practice Variations across Firms: The Impact of National Culture,” Journal of International Business Studies 29 (1998), pp. 159–178. 15L. R. Gomez-Mejia and T. Welbourne, “Compensation Strategies in a Global Context,” Human Resource Planning 14 (1994), pp. 29–41; Sunny C. L. Fong and Margaret A. Shaffer, “The Dimensionality and Determinants of Pay Satisfaction: A Cross-Cultural Investigation of a Group Incentive Plan,” International Journal of Human Resource Management 14(4), (June 2003), pp. 559–580. 16G. Milkovich and M. Bloom, “Rethinking International Compensation: From Expatriates and National Cultures to Strategic Flexibility,” Compensation and Benefits Review, April 1998; L. Markoczy, “Us and Them,” Across the Board, February 1998, pp. 44–48. 17F. Trompenaars, Riding the Waves of Culture: Understanding Diversity in Global Business (Burr Ridge, IL: Irwin, 1995); M. Bloom, G. Milkovich, and A. Mitra, “International Compensation: Learning from How Managers Respond to Variations in Local Host Contexts,” International Journal of Human Resource Management special issue, 2003; Allen D. Engle, Sr., and Mark Mendenhall “Transnational Roles and Transnational Rewards: Global Integration in Executive Compensation,” presentation at international HR conference, Limerick, Ireland, June 2003; Paul Evans, Vlado Pucik, and Jean-Louis Barsoux, The Global Challenge (New York: McGraw-Hill, 2002); G. Hundley and J. Kim, “National Culture and the Factors Affecting Perceptions of Pay Fairness in Korea and the U.S.,” International Journal of Organization Analysis 5(4) (October 1997), pp. 325–341; L. Kim and G. Yi, “Transformation of Employment Practices in Korean Business,” International Studies of Management and Organizations 28(4) (1998–99), pp. 73–83; G. Hofstede, “Cultural Constraints in Management Theories,” International Review of Strategic Management 5 (1994), pp. 27–51; P. C. Earley and C. B. Gibson, “Taking Stock in our Progress on Individualism–Collectivism: 100 Years of Solidarity and Community,” Journal of Management 24 (1998), pp. 265–304; David Landes, Culture Matters: How Values Shape Human Progress (New York: Basic Books, 2001).

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are not only part of your university but also part of your family, your social/political/ interest groups, your region of the state or country, and so on. Cultures may be similar or different among all these categories.

Culture Matters, but So Does Cultural Diversity Culture classifiers consider the United States a country of risk takers who rank high on the individualistic (rather than collectivistic) scale. In contrast, the country of Slovenia has been classified as more collectivistic and security-conscious (as opposed to risk taking).18

Slovenia was the first country to break off from the former Yugoslavia. (How is that for taking a risk?) It has a population of less than 3 million and by most standards would be considered very homogeneous. So you would expect Slovenian managers to be very dif- ferent from U.S. managers. However, a study found that Slovenian managers tended, on average, to be more risk taking and individualistic than U.S. managers. The most striking finding, as shown in Exhibit 16.4, was that the degree of variation among managers on cultural dimensions was virtually the same in both the Slovenian and the U.S. data. Thus, one can find risk-averse collectivists and risk-taking individualists in both nations.

So how useful is the notion of a national culture? In the absence of better data on varia- tions such as those in Exhibit 16.4, it may offer a starting point. However, it is only a starting point. National culture can be thought of as the “average” in Exhibit 16.4. It provides some information about what kinds of pay attitudes and beliefs you are likely to find in an area. But overreliance on the “average” can seriously mislead. This point is critical for managing international pay. As the paleobiologist Stephen Jay Gould noted, “Failure to consider the ‘full house’ of cases plunges us into serious error again and again.”19 While Gould may not

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18M. Bloom, G. Milkovich, and N. Zupan, “Contrasting Slovenian and U.S. Employment Relations: The Links between Social Contracts and Psychological Contracts” CEMS Business Review no. 2 (1997), pp. S95–S109. 19Stephen Jay Gould, Full House: The Spread of Excellence from Plato to Darwin (New York: Three Rivers Press, 1996).

Risk avoiding

U.S. MBAs Slovenian MBAs

Risk takingXU.S. XSlovenia

EXHIBIT 16.4 Understanding the “Full House” of Variation within a Culture

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have been talking about compensation, we can still extend his point to global pay. To claim that all organizations and people within Germany or within China use the same shared mind- set ignores variations and differences within each nation. Considerable diversity among com- panies and people within any country exists. So keep in mind our basic premise in this chap- ter: The interplay among economic, institutional, organizational, and individual conditions within each nation or region, taken as a whole, forms distinct approaches to total compar- isons. Understanding these factors in the global guide is useful for managing employee com- pensation. However, do not assume uniformity (the average) within a country. Understand- ing the full range of individuals within nations is important to managing international pay.

TRADE UNIONS AND EMPLOYEE INVOLVEMENT

As Exhibit 16.5 shows, Europe remains highly unionized: In Sweden, 91 percent of the work force belongs to unions; in the United Kingdom, 33 percent; and in Italy, 44 percent. Asia is less heavily unionized. Japan’s unionization rate is 24 percent, and South Korea’s is almost 13 percent. Although the exhibit might cause you to conclude that union power is declining, caution is in order. In some countries, workers’ pay is set by collective agreements even though the workers may not be union members. In France, for example, 90 percent of work- ers are covered by collective agreements, but only 9 percent are union members.20

In addition to having higher rates of unionization, Belgium, Germany, and the Euro- pean Union (EU) require the establishment of worker councils that must be involved in any changes to a pay plan. The European Union is trying to provide common labor stan- dards in all its member countries. The purpose of standards is to avoid “social dumping,” or the relocation of a business in a country with lower standards and labor costs. At pres- ent, hourly labor costs and productivity vary substantially among the EU countries. Often the higher labor costs are offset by greater productivity.21

Social legislation varies among European countries, as shown in Exhibit 16.6. Britain specifies the fewest requirements, with no minimum wage, no maximum hours, and no for- mal methods for employee participation. France and Germany have the most generous so- cial insurance. Some writers predict the eventual “Europeanization” of pay determination.22

20H. Katz and Owen Darbishire, Converging Divergences: Worldwide Changes in Employment Systems (Ithaca, NY: Cornell University Press, 2000); George Boyer “Review Symposium: Converging Divergences: Worldwide Changes in Employment System,” Industrial and Labor Relations Review 54 (2001). 21Christopher L. Erickson and Sarosh Kuruvilla, “Labor Costs and the Social Dumping Debate in the European Union,” Industrial and Labor Relations Review, October 1994, pp. 28–47; K. Schwab, M. Porter, J. Sachs, A. Warner, and M. Levison, The Global Competitiveness Report 2000, World Economic Forum (Cambridge, MA: Harvard University Press, 2000). 22Chris Brewster and Hilary Harris, International HRM: Contemporary Issues in Europe (London: Routledge Press, 1999); P. Dowling and R. Schuler, International Dimensions of Human Resource Management (Boston: PWS Kent, 2000); Matthew F. Davis, “Global Compensation in the New Economy,” International HR Journal 9(3) (Fall 2000), pp. 45–50; Mark Fenton-O’Creevy, “HR Practices: Vive La Difference; Part 7: Mastering People Management,” Financial Times, November 26, 2001; Paul R. Sparrow, “International Rewards System: To Converge or Not To Converge?” in International HRM: Contemporary Issues in Europe, ed. Chris Brewster and Hilary Harris (London: Routledge Press, 1999).

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