http://joongangdaily.joins.com/article/view.asp?aid=2889952
Since the 1997 Asian financial crisis, a growing number of Korean companies have replaced seniority-based salary systems with performance-based pay.
In a survey by Samsung Economic Research Institute, 74.3 percent of the CEOs and other senior executives asked said the biggest downside is an obsession with short-term achievement plus weakened cooperation between teams and departments and employees¨ distrust of evaluation methods.
In Japan, critics say performance-based pay amounts to copying a Western model without considering Japan¨s own institutional and cultural characteristics. They complain that stable employment relations based on trust are undermined and long-term nurturing of human resources is neglected.
Perhaps in response to such criticism, more and more Japanese companies now choose a homegrown model, a so-called New Japanese-Type Performance-based HRM, that combines long-term employment tradition and the advantages of a performance-based system.
