little as possible still pervades SOE’s. Individuals still have little incentive to work hard. Pay is usually not linked to performance, and year-end bonuses are viewed as entitlements. Workers expect pay just for showing up to work. Supervisors often have to negotiate with them to get projects completed.Compensation and BenefitsMoney is always the most important motivator. In SOE’s, many workers have enjoyed being paid above the previously enforced, government-established wage. According to Buresh (1996), people in Hubei province spend 35 to 40 percent of their disposable income on food and utilities. In Shanghai, the number is as high as 75 percent. The Chinese are highly dependent on their base pay because of the proportionately higher percentage of income needed to support their basic needs and the greater economic uncertainty of the region.A typical Chinese managerial compensation package consists of approximately 65 percent base pay, 13 percent other cash, 15 percent benefits, and 7 percent bonus perks. In comparison, reports Hewitt Associates (1994), the average managerial compensation package in the U.S. consists of approximately 40 percent base pay, 27 percent long-term incentives, 15 percent benefits, and 18 percent bonuses and perks. The difference in these compensation packages stems from Americans' tendency to value future earnings, whereas the Chinese are more financially short-term oriented.The Chinese also place a high value on the social benefits traditionally offered by organizations. For example, women usually had company-paid maternity leave with a three-year guarantee to return to the same position. Every employee was entitled by law to 22 days of paid vacation, and tenured employees had unlimited paid sick leave. Large firms sponsored schools, housing, farms, grocery stores, dormitories, holiday accommodations, entertainment, recreational facilities, and cafeterias. Food grown on company farms was sold ...
