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Germany and Netherlands
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Introduction Germany and Netherlands created European Economic Community in 1957 in Rome Are influential members of Europe Union Adopted euro in 2002 Germany 3 820 billions GDP 4 in the world (2014) Netherlands 880 billions GDP 17 in the world (2014)
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Economics Both Industrialized countries Limited natural resources importations represent a big part of the economy Germany Economy dominated by large industrial organizations Majority of the workforce are employed by small and medium company Among the world’s largest industrial producers Economy growth in the recent years Netherlands Producer of agricultural products Hard hit by the international financial crises of 2008
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Politics Germany Federal states Federal president, democratically elected 2 chambers Netherlands Constitutional monarchy 12 self-governing provinces The monarch appoints the leader of the majority party as prime minister
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Culture Germany and Dutch known for Strong desire for ordering their time Punctuality Religions and social tolerance Emphasis on self-realization High moral value Freedom expression Netherlands 42% population have no religion Permits: Use of drugs, Same sex-marriage, Euthanasia
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Larbour market trends Germany Most populated country in west Europe Most employed in industry 29,7% compare to other European country Netherlands 17 millions people Workforce of 7,71 millions Low rates of unemployment in both country CountryAgricult ure % Industry %Services % Germany2,429,767,8 Netherlands2,023,475,6 Immigrant workers Germany has the third highest number of migrants in the world Nertherlands decided to restricte entry to workers from new members of UE
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Equal opportunities and diversity In both Discrimination is forbidden by law Still differences between men and women Germany Introduces work-life balance and family-friendly employment policies Women participation increase from 55,3% in 1995 to 59,6% in 2005 Netherlands Equal opportunities law Equal pay checklist at the organizational level Women participation increase from 63,5 in 2000 to 66,4 in 2005
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Older versus younger workers Both have growing population of older people and at the same time an increase of youth unemployment 20,3% German population over 65 years 15% nertherlands population over 64 years Introduced legislation to address the problem Country0-14 years 15-64 years Over 65Median years Life expectanc y Germany13,766,120,344,379,26 Netherlands17,467,714,940,879,4
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Strategic management Flexible working practices privileged and purchased by a lots of company in the both country Dutch economy has been labelled the « first part-time » economy in the world That encourages women and wen who needed to work flexibly
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Managing Human ressources Recruitment regulated in both In Germany by Federal Labour Department Intern recruitment encouraged by law Transfer between to department often In Netherlands by the Privacy Code for Recruitment and Selection Specifies rights of applicants Selection Number test used to select new employs and transfers between two jobs Germany encourages references Netherlands prefers application form Job training are also important
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Training and development Employers expect to have training plans and to give employees the opportunity to be trained to build their carreers Germany spends 70 millions € each years in education Employers spend between 3 and 8% of their annual age bills on trainings Both country are well educated and practice a lot vocational training MBA not well known by company but most of managers ask to pass them during their career
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Rewards and remuneration: Are influenced by federal and national collectives. The difference between the highest and lowest salary: Germany and Netherlands : 2.5% UK : 3.4 % France : 3.08% Wage earners are rewarded with high salaries. Employees are considered as a valuable asset.
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The minimum wage Germany does not have and doesn’t impose minimum wages. On the contrary the Netherlands represents a minimum wage of 1.357 euros per month since 2008, which is variable according to the age of the person.
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Allowances and benefits Companies provide their staff with: Sick pay Holiday pay Travelling allowances Child-care allowances Career break schemes Company doctors These allowances and benefits have known some internal changes.
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Employee relations They are characterized by social partnership in both countries. Laws that regulate employee relations in both countries matches the EU directives.
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Trade union Trade unions enhanced the developement and the industrialization in Germany, back in time. Trade union density 1999-2008 (%) Germany and Netherlands: Country 1999200020012002200320042005200620072008 Germany 25.324.623.723.52322.221.6.20.719.919.1 Netherlands 24.622.621.921.721.221.32120.419.818.9 Source OECD,2009.
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Works councils Co-determination in Germany and self-determination in the Netherlands follow the strategic feature of the Germanic approach to management. The main characteristics of works councils, according to Fürstenberg are: They represent all employees They have the right to information, consultation and co-determination They cannot take industrial action or call to a strike. They are involved in a wide range of issues such as : daily working hours and breaks, the fixing of piece rates, pay systems, works discipline, temporary short-term or overtime work etc.
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Collective bargaining In Germany : the legal framework is provided by the German collective Agreements. Collective bargaining is conducted at regional and industrial levels. The collective agreement act ( WCAO) was issued in 1927 an changed 2002. The recent developments are : The extension of collective agreements. The decentralization of collective bargaining: Those on issues that are agreed at the central or sector-wide levels. Those that apply only to specific sub-sectors for specific provisions. Those that are company-specific agreements Individual workers agreements have also been applied in what is called « cafeteria » agreements.
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Industrial Action Strikes are permitted in Germany and in the Netherlands. Settlement of industrial disputes The dispute can be of interest or of right. Disputes of interest are referred to a voluntary mediation procedure. Disputes of right result from interpretation of a collective agreement
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Conclusion GermanyNetherlands Federal democracyConstitutional monarchy Minimum salary Minimum age working : 15 yearsMinimum age working : 16 years Full-time umployment : 36 yearsFull-time umployment : 38 years Midian age: 43.8 yearsMidian age : 40 years Conciliate boardMediation panel
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