The changing face of manufacturing: New compensation practices in the German and American metal working industries

Harvey, N. (1994) The changing face of manufacturing: New compensation practices in the German and American metal working industries. Control Engineering Practice, 2 (4). pp. 697-705. ISSN 09670661

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Abstract

This paper examines changing practices in the German and American metal working industries - what are the factors giving rise to change, what are the types of changes being considered, and what are the changes taking place. It will be argued that the way firms do business in both countries is coming under considerable pressure to change from an increase in global competition and a shift in focus towards quality competitiveness. The dominant pay system, based on piece-rates, is ill-suited to emerging practices. Instead, firms need to develop new pay systems that encourage reward group, not individual, solutions, and that leads towards greater involvement of workers into decision-making. In the U.S., there is much experimentation with new forms of pay systems particularly Gainsharing. In Germany, while there is much talk about the need to change, as yet, there is little movement away from the classic piece-rate system. When movement occurs, it tends to be towards pay-for-knowledge.

Item Type:	Article
Uncontrolled Keywords:	cell manufacturing; employee involvement; Gainsharing; group work; JIT; lean and mean production; pay-for-knowledge; Piece-rates; production islands; SPC
Subjects:	H Social Sciences > HD Industries. Land use. Labor > Specific Industries > Manufacturing Industry H Social Sciences > HD Industries. Land use. Labor > Issues of Labour and Work > Remuneration
Divisions:	National College of Industrial Relations (1966-1998) > Staff Research and Publications
Depositing User:	Tamara Malone
Date Deposited:	09 Sep 2025 15:55
Last Modified:	09 Sep 2025 15:55
URI:	https://norma.ncirl.ie/id/eprint/8843

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