A Cross-Cultural Study Of Sino-German Compensation Management

With the development of economy globalization, the competition between the corporations gets more and more violent. The corporations were forced to seek a broader space for development. Cooperation between enterprises gradually broke through the national boundaries, developed from the initial development of the market expansion to the core management field .Many problems arise in the human resources management in the process of Transnational business,especially for the integration of management salaries, many enterprises have nothing to do about it,because there are different expectation from different countries to compensation management,not only cooperation between enterprises in the process there will be differences but in individual salaries concept there will still have a long way to the pay practice. The problem that troubles the transnational companies is how to realize the individual values and personal contribution to the company.Based on the theory of compensation and cross-cultural management, this paper analyses the influence of national culuture on the compensation management and frameworks a cross-cultural compensation model. The compensation practices of two cultures are identified based on the analysis of Chinese and German culture. At the some time, the effectiveness of the model is proved by comparing Chinese and Germanic stipend management practice, and the discrepancies between theory and practice are interpreted.Based on the theories of compensation management, cross-cultural compensation management and other related the theory , this paper analyze the effect of national culture on the compensation management and on the basis of culture difference the model of the compensation management is established. In this model analyzes the possible compensation management mode exited in China culture and Germany culture.The modle has been proved correctly by the management practice and also have interpreted contray part between the theory and the practice.Meanwhile, the paper also selected China FAW and Volkswagen of Germany as a case for analysis .the difference of compensation management in the two enterprises are practice and theory.AS for the difference this paper propose some integration measures with the application of cross-cultural management theory and connection with the management of the pay practice .This paper hopes to be helpful to explain the joint venture compensation management conflict by such a method. through the relevant model to identify the cultural factors behind the conflict that make transnational joint ventures go well in integration to salary.