This chapter examines incentive systems in automotive plants in Russia and China. The point of departure here is the distinction between job-based systems, where the associated tasks are determined as precisely as possible for each job, and person-based systems, which assign tasks not to certain jobs but to certain competence or performance levels. While job-based systems are more typical for Russia, person-based systems prevail in China. The chapter then turns to variable compensation elements and performance reviews and examines how supervisors deal with performance appraisals. It reveals considerable differences between Russian and Chinese sites. The most notable difference concerns the use of performance appraisals. The Russian plants are characterized by a punishment culture that undermines the motivational effects of the incentive systems.
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