This presentation discusses international pay systems. It begins with an introduction to the topic and defines international pay systems as involving differences in economic, institutional, organizational, and employee factors that influence how people are paid around the world. The presentation then covers various aspects of international pay systems, including culture, trade unions, ownership structures, costs of living, approaches to comparing systems between countries, and elements of expatriate compensation. It concludes by noting the increasing need to adopt a worldwide perspective on compensation given the globalization of business.

1. WelcometothepresentationOn
InternationalPaySystems
By - Fakrul Hassan

2. Presented By
MEHER AFROJ
ID # 2018110005068
FAKRUL HASSAN
ID # 2018010005080
ABU BOKER
ID # 2018010005042
A.M. AHSANUR RAHMAN TONMOY
ID # 2018010005039
MD. ABDUL MUNIM
ID # 2018010005052
Presented To
Md. Abu Bakar Siddique
Lecturer
School Of Business Studies
Southeast university
By - Fakrul Hassan

3. Technology has greatly assisted the globalization of
pay systems although there are many differences
that still require a broad approach, says David
Shonfield. We live and work in a global economy but
what globalization actually involves is far less
obvious, especially for the management of pay and
reward.
Introduction
By - Fakrul Hassan

4. What Is International Pay System?
We live and work in a global economy but what
globalization actually involves is far less obvious,
especially for the management of pay and reward.
Companies operating in different cultures and
economic environments used to leave most things to
be determined at local level.
By - Fakrul Hassan

5. Managing Variations
How people get paid around the world depends on
differences (and similarities) in the following general
factors.
 Economic
 Institutional
 Organizational
 EmployeeBy - Fakrul Hassan

6. The Global Guide
By - Fakrul Hassan

7. The Social Contract
Employment
Relationship
Organizations Individuals
Social
Contract
Organizations
• Individual
Employers
• Employer
Consortium
Individuals
• Unions
• Union
Federations
Government
By - Fakrul Hassan

8. Culture
Culture is defined as shared mental programming
which is rooted in the values, beliefs, and
assumption in common by a group of people and
which influences how information is processed. The
assumption pay system must be designed to fit
different national cultures is based on the belief that
most of inhabitants share a national character.
By - Fakrul Hassan

9. Characteristics of Culture
Often defined as shared mental programming.
Involves acquiring knowledge that people use to
interpret experience and generate social behavior.
Rooted in values, beliefs, and assumptions shared in
common by a group of people.
Influences how information is processed.
By - Fakrul Hassan

10. Trade Unions and Employee Involvement
Europe remains highly unionized. Asia is less heavily
unionized. In some countries, workers pay is set by
collective agreements even through the workers may
not be union members. In addition to having higher
rates of unionization, Belgium and Germany require
the establishment of worker councils that must be
involved in any changes to a pay plan.
By - Fakrul Hassan

11. Ownership and Financial Markets
Ownership and financing of companies differ widely
around the world. These differences are important to
international pay.
Types:
 Stock Options
 Government Owned
 Bank Owned
 Multilevel ownershipBy - Fakrul Hassan

12. Level of Centralization
Regulations
Corporate Policy
Managerial Autonomy
By - Fakrul Hassan

13. Comparing Costs
Comparing costs can be very misleading even if wage rates
appear the same expenses for health care, living costs and
other employer provided allowances.
Include:
 Labor Costs and Productivity
 Standard of living costs
 Cost of Living and Purchasing Power
By - Fakrul Hassan

14. We have made the points that pay systems differ
around the globe and that the differences relate to
various in economic pressures, sociopolitical
institutions, and the diversity of organizations and
employees.
Comparing Systems
By - Fakrul Hassan

15. National Systems : Comparative Mindset
 A national system mindset assumes that most
employers in a country adopt similar pay. Understanding
and managing international compensation then consists
mainly of comparing the Japan to the German to the
U.S. or other national systems. This method may be
useful in nations with approaches.
By - Fakrul Hassan

16. Strategic Market Mind-Set
Localizer: “Think Global,Act Local”
 Designs pay systems to be consistent with local
conditions.
 Business strategy is to seek competitive advantage by
providing products and services tailored to local
customers.
 Operate independently of corporate headquarters.
By - Fakrul Hassan

17. Strategic Market Mind-Set (continued)
Exporter: “One Size Fits All”
 Basic total pay system designed at headquarters
and is “exported” world-wide for implementation
at all locations.
 Exporting a basic system makes it easier to move
managers and professionals among locations.
 One plan from headquarters gives all managers
around the world a common vocabulary and a
clear message what the leadership values.
By - Fakrul Hassan

18. Strategic Market Mind-Set (continued)
Globalizer: “Think and Act Globally and Locally”
 Seek a common system to be used as part of “glue” to
support consistency across all global locations.
 Headquarters and operating units are heavily networked
to shared ideas and knowledge.
 Performance is measured where it makes sense for the
business.
 Pay structures are designed to support business.
By - Fakrul Hassan

19. Salary Taxes
Housing Allowances and
Premiums
Elements of Expatriate Compensation
By - Fakrul Hassan

20. Common Allowances in Expatriate Pay
Financial Allowances
Social AdjustmentAssistance
Family Support
By - Fakrul Hassan

21. Borderless World - Borderless Pay?
 Corporations attempting to become “globally integrated
enterprises,” are creating cadres of globalists:
– Managers who operate anywhere in the world in a borderless
manner.
 Tosupport a global flow of ideas and people, companies are also
designing borderless, or at least regionalized, pay systems
– Testing ground for this approach - European Union
By - Fakrul Hassan

22. Limitations
 Can result is great disparities between expatriates
of different nationalists.
 Can be quite complex to administer.
 Can result is great disparities between expatriates
and local nationals.
By - Fakrul Hassan

23. Recommendation & Conclusion
Anyone interested in compensation must adopt a
worldwide perspective. The globalization of businesses,
financial markets, trade agreements, and even labor
markets is affecting every workplace and every
employment relationship.
By - Fakrul Hassan

24. Thank You
By - Fakrul Hassan