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Comparision of the US and European Management Practice
Dátum pridania: | 02.10.2002 | Oznámkuj: | 12345 |
Autor referátu: | neuvedeny | ||
Jazyk: | Počet slov: | 2 935 | |
Referát vhodný pre: | Stredná odborná škola | Počet A4: | 11 |
Priemerná známka: | 2.98 | Rýchle čítanie: | 18m 20s |
Pomalé čítanie: | 27m 30s |
Nevertheless, American managers run the risk of being drawn in to an expensive lawsuit, if they break any of the sensitive personal or minority rights.
2. Pay differences
US economy is well-known for huge differences in remuneration among positions, jobs and industries. As an example, an average investment banker earns 10 times more than an average teacher does. Some statistics say managers earn in average 90 times more than blue-collar workers, incomes of top managers soaring each year to dazing heights. On the other hand in Europe emphases was always put on internal consistency and industry-wide wage bargaining. As an example, in Germany that is known for its balanced remuneration system, average non-worker (or white-collar) wage is only 20% over the average worker`s wage. Even that the stated indicators are not comparable, it is evident there are huge pay differences in both regions. (2)
In additions, especially in European countries with coordinated wage bargaining systems, companies can not use wages to poach skilled workers from other companies, what slows down wage increase especially in the export oriented industries. (3)
3. Employment management
Workforce mobility is a significant factor distinguishing employment management in the US from the one in Europe. While Americans regularly change firms and their place of living, inclined towards constant search of something “new” and “better”, the European are rather attached to their firm and region. They do not seek change, unless they are sure of notable improvement.(5)
Consequently the attitude of an American and European company differs. As the American firm would be concerned with the loyalty of its best workers, the European firm would seek to encourage mobility within the subsidiaries of the company. While in Europe, especially Germany, mobility is basic precondition for career development, in the US loyalty to the company is expected for the sake of human resource development. Nevertheless, loyalty to the profession is more common than loyalty to the company on the US. (3)
The term “investment in human resources” has different connotation in the two areas. In the United States, when it exists, it is a deliberate choice and is shown through selectivity and targeting of the “best people” whom the firm wants to retain. In Europe it is almost inevitable and extensive HR activity, since the personnel forms one of the most stable resources of the organization. (3)
4. Short-term perspective
The major concerns of the American firm are based on the Stock Exchange (Wall Street) performance and external development.