Performance and pay practices in German and Indian manufacturing companies

Abstract

German manufacturing companies are expanding their operations to emerging industrial economies such as India. This paper focuses on pay and performance practices in German and Indian automobile manufacturing companies. The differences in perception of sixty four German managers and seventy seven Indian managers of these practices in their companies were explored. The results of the quantitative analysis of the relevant sections of the Best International Human Resource Practices Survey show no significant differences between performance appraisals and pay practices in these contexts. The only significant difference was on the question about pay practices that provide recognition for long term results. Further qualitative analyses noted several divergent perspectives as well as in the use of practices between the managers. A conclusion is that human resource practices are best when adapted to cultural and national differences.