ModernMade Textiles has successfully used a piece-rate compensation plan in its U.S.plants for decades.The motivational effect of compensation policies is similar from one culture to another,so this compensation system can be implemented in new plants ModernMade plans to open in Vietnam and South Korea as long as it is adapted to the local rates of pay.

Question

Quizplus · Accepted Answer

The motivational effect of compensation policies can vary significantly between cultures due to differences in work values, social norms, and economic conditions. What motivates employees in one culture might not have the same effect in another, making it crucial to adapt not just the rates of pay but potentially the entire compensation strategy to fit the cultural context of Vietnam and South Korea.

ModernMade Textiles Has Successfully Used a Piece-Rate Compensation Plan in Its