Question

Prepare a 6-column, 5-row chart for the following countries and parameters:

Columns (countries) are:

Japan

Mexico

India

China

Italy

Germany

Rows (factors to research) for each country are:

Average manufacturing wage

Country’s minimum wage

Typical restrictive work rules where there are unions

How unions enhance or detract from company results

Country’s unemployment rate

It is unlikely that you will find all of the necessary data in one online database. Instead, you will have to research a number of different ones.

In addition, in some cases you may have to make calculations from a “base=100” report to get an actual dollar figure.

Ensure that you cite the references used, in proper APA format.

Wikipedia is an unacceptable reference

For minimum wages, try one of the following sites:

Minimum Wages database

List of minimum wages by country

For unemployment percentages try the following site:

Unemployment rate (most recent) by country (be sure to note the year of the data)

Your recommendation summary should explain which country you recommend for the future overseas expansion, based solely on the HR in your chart.

Answer

 

Japan Mexico India China Italy Germany
Average manufacturing wage 15 USD per day 18 USD per day 5.21 USD/Day 21 USD peer day 111.60 index points/month 105.20 index points/month
Minimum wage 15,175 USD  per annual 2,125 USD/ annual 760-2551 USD/annual 1661 USD per annual No statutory min. wage 23750 USD per annual
Restrictive work rules where there are unions Presence of unions which negotiate various issues Few unions which have little power over employers Labor unions negotiate on behalf of employees Lack of independent trade unions and no right to strike Presence of trade unions Presence of labor unions which regulate the labor market
How unions enhance or detract for company results Labor unions regulate wages, salaries, and terms of engagement

 

Workers’ rights not protected by the labor unions. Trade unions work towards the betterment and welfare of workers More strikes as workers demand for better terms of employment affecting performance Trade unions agitate for the rights of workers Unions ensure that employers and employees agree on contentious issues
Country’s unemployment rate 3.7 4.9 3.6 4.7 12.5 5.0

 

From the analysis, the best country to invest in would be China. China has an unemployment rate of 4.7 meaning it would be easy to hire employees at the current wage rates. In addition, China has an average minimum wage of $ 1661 per annual. The minimum wage is not exorbitantly high meaning that an organization can be able to pay the minimum wage and remain competitive. Countries such as Germany and Japan which have a high minimum wage requirement are not attractive for investment. The high minimum wage reduce the competitiveness of the organization’s products in the global market. In China, there are no independent trade unions. On some occasions, the government does not allow workers to strike. The organization should pay workers above the minimum wage in order to improve their satisfaction and performance.

Reference

The World Bank. (2015). Unemployment, total (% of total labor force). Retrieved from:             http://data.worldbank.org/indicator/SL.UEM.TOTL.ZS

Trading Economics. (2015). Minimum Wages. Retrieved from:             http://www.tradingeconomics.com/country-list/minimum-wages

Trading Economics. (2015). Wages in Manufacturing. Retrieved from:             http://www.tradingeconomics.com/country-list/wages-in-manufacturing

 

The Collective Bargaining Process- MGMT348-Part 2

 

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