Problem
Organizational cultures in countries such as Japan differ from those in the United States. Instead of the top management in an organization, business leaders have the ultimate authority to make critical decisions. When a company based in the United States wants to do business in countries such as Japan, it must first understand the cultural context of Japanese leaders. Cultural values are essential in determining the compensation system in a particular country. Seniority is valued in Japan when it comes to providing compensation. Regarding compensation, the priority in the US-based system is knowledge and performance.
Therefore, US-based companies should adopt Japan's compensation culture. They can promote pay-for-performance later. Young talent is underpaid in Japanese culture so employees will accept this strategy.
Discuss whether you feel that pay-for-performance programs are compatible in this country and provide your rationale.