Exam 10: Compensation for a Global Workforce

Milkovich and Bloom's strategic flexibility model includes the following compensation sets:

Managers should work to eliminate all disincentives faced by employees in the overall reward system since, as disincentives, they serve to block desired job performance.

For expatriates needing tax adjustments, in most cases the __________ method is used where MNCs deduct income taxes from the expatriate's salary at the rate that would normally be paid in the home country, and then pay any additional tax owed due to the higher local tax rates in the host country.

In this organization-based compensation approach, employees tend to be rewarded on a regular basis according to an established performance measure, such as monthly level of work unit productivity.

Many new and small firms are finding success in attracting and retaining strong talent to drive innovation and company growth through providing

Which employee group tends to have the lowest proportion of total direct financial compensation at risk with individual, group, and organizational incentives?

Individual performance-pay approaches tend to emphasize the importance of individual

To fit country cultures that are relatively high in power distance, such as in __________, compensation practices might employ pay and rewards that reinforce status distinctions, with little or no employee participation in reward determination and distribution decisions.

Individual managers tend to have greatest control over this general form of employee reward, which also can be highly motivating:

In most cases, __________ rewards are becoming an increasing focus in performance-based pay.

A total reward system perspective also considers possible negative factors and disincentives faced by employees.

Compensation for a global workforce is faced with the dynamic tension of the duality challenge, i.e., global integration vs. local responsiveness. Explain how to begin to address this challenge by structuring employee total compensation according to Milkovich and Bloom's three-level model of strategic flexibility.

There is an increasingly strong push to manage reward systems globally for at least three reasons: achieving economies of scale, building unique firm capability, and

Despite increasing interest across the globe in performance-based pay, there also is nearly universal agreement that incentives should constitute a limited portion of the compensation package.

Especially used as a form of incentive compensation for groups or larger distinct working units, profit sharing tends to be rewarded on a regular basis according to an established performance measure, such as monthly levels of work unit productivity or cost savings.

These employees will likely continue to have their total compensation based on organizational performance to a greater extent than for other employees: