Compensation

It's getting harder to find good people willing to serve on a corporate board of directors due to the change in the actual job. According to Milkovich, Newman, Gerhart (2011), previous directors has the simple task of "rubber stamping" decision made by top management, or in other words "get paid for doing almost nothing". Today, more and more stock holders and the press are paying great attention to the benefits and compensations that directors received in comparison to their jobs.

It is easier to explain a $2million payout to Tiger Woods for working 4 days to win a Masters Championship simply because of job evaluation and the actually compensation for doing a task. Tiger Wood plays golf and a prize is set if someone wins the tournament. On the other hand, in the event of the CEO of a major company , special compensation package are written up for a specific task.

Merit pay is based on performance in the work place. If an employee does their work effectively then they can received bonuses and other compensation. Unions frequently oppose merit pay because certain merits can be liable to grievance. Unions rather have their members received set promotions rather than certain members received merit promotions.

The Japanese traditional system is comprised of three key points "three pillars"

Seniors members received more pay and first promotion,

Lifetime employment

Enterprise Unions

The German traditional system is both different and similar than that of the Japanese.

In the German system, compensations are more regulated by different rules and laws. Employees of different companies tend to received about the same pay at the other in keeping with the compensation limit that was set by the governing body.