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					                                                  Survey


                          - Variable Worker Compensation -




Dear Survey Participant,


First of all, I would like to thank you for taking the time to participate in this survey!



The Purpose of this research is to analyze how best to structure and implement wage systems
for (blue-collar) workers in order to to maximize the benefit of the amount of money spent on wages.
The special focus of the study is on variable compensation, its components, evaluation criteria and the
underlying assumptions and intentions.

I have managed a JV production plant for ContiTech in China for 4 years.
The experiences, positive and negative ones, have motivated me to start this research project (DBA).
It is supervised by the Grenoble Ecole de Management and the University of Newcastle.

All participants of the survey will receive a copy of the survey results and analyses. In addition,
a summary of these survey results and my experiences in restructuring a worker compensation
scheme will be presented at the German       Chamber HR workshop on November 23rd.

I suggest that Plant/General Managers fill in pages 3-5 (about 1 hour) after the
HR department has filled in pages 1-2 (about 1 hour). Page 2 is provided in Chinese as well.
Please use the language version that is most convenient for your understanding and data entry.
While many comments have been linked to the questionnaire itself (red corner as sign for a comment)
the worksheet 'Instructions' contains some definitions and additional remarks on how to understand
and answer the questions.

Any compensation survey raises the question of confidentiality. Each individual feedback will be
handled strictly anonymous, and results will only be presented as aggregate results.
The answers to this quesionnaire will only be used for the purpose of this DBA research and related
publications, the workshop of the German Chamber, and the feedback to participants.
No data will be given to other organizations, sold or used for any paid consultancy purposes.
In case you still have any hesitations, I would appreciate if you would still participate in the survey
and answer all questions you do not feel uncomfortable about.

In case of any questions, please contact either:
Mr. Michael Bott             Phone: 187 0218 1915         Email: michael.bott@mailbox.grenoble-em.com
Mrs. Zhang, JingJing         Phone: 139 6233 9720         Email: carrie.zhang@contitech.cn

Please return the answered questionnaire until October 15th to the following email account:
michael.bott@mailbox.grenoble-em.com

Again, many thanks for your participation in this survey and I hope that the findings of this
survey will be of interest and benefit for all participants.

Kind regards,
                                                                                                        Survey

                                                                           - Variable Worker Compensation -


                                                                                                                                                                                                                                Page 1
      Remark on Data-entry fields:                                    Enter data or mark 'X' into orange or yellow fields (see below).
                                                                      Orange background = Requested data entry
                                                                      Yellow background = Optional data entry

1.)   Contact Details:
      1.1)      Name of company/plant:

      1.2)      Name of responding person (s):

      1.3)      Title of responding person(s):                                                        GM ?                                                                             HR Manager ?

      1.4)      Can the researcher contact you in case                               Yes                           No                                                     Yes                               No
                of any questions about your answers?                  Email:                                                                          Email:

      1.5)      Contact details:                                      Phone:                                                                          Phone:


      1.6)      Location (city) of plant:


2.)   Company Characteristics:
      2.1)      Main type of operation:                                                                                   Production                                       Service

      2.2)      How many years is this company/plant/JV in operation in China?                                                     Years

      2.3)      Mark type of ownership:                                                                                  100% WFOE                                              JV                                100% Chinese

                2.3.1)   If JV, what is the shareholding?             Foreign shareholding:                                         %
                                                                      Local shareholding:                                           %

                2.3.2)   If foreign shareholding (WFOE, JV), country of foreign owner(s)?                    Please enter here country of foreign shareholder(s)

                2.3.3)   If 100% Chinese, please further indicate ownership:                                                Private                                State-owned (SOE)                                  Others

      2.4)      Sales turnover of your company/plant (2009):                                                            < 20 million RMB                           < 100 million RMB                             > 100 million RMB

      2.5)      Current number of personnel:




                                                                                                                                                                                                                                    Total
                                                                                                                             Blue-collar                                   White-collar
                                                                                                                                                                                                                            0
                                                                                                                             workers                                       employees


      2.6)      Industry classification (see worksheet "Industry classification"):                           Copy from "Industry classification" & paste here


3.)   Evaluation of Importance of Wages in Comparison to Other Costs:
      3.1)      Please indicate base period the following data is based:                                                   Year 2009                                 Jan-June 2010                                     Other, which?


      3.2)      Below data has been provided by:                                        GM                               HR Manager                                GM + HR Manager                                     Others, who?


      3.3)     Wage costs in relation to other personnel or company costs
                                                                                                                                                          All Personnel                 White-collar                Blue-collar
      Definition:                                                                                                                                         (employees +                  Employees                    Workers
      Total Cash Compensation Wage/salary+all cash allowances+cash bonuses+over-                                                                            workers)
      Costs            (TCCC) = time pay + performance pay and any cash reward/pay                                                                              A                               B                       C
      (TCCC is excl.: non-financial benefits, mandatory social benefits, expatriate costs if possible)

      3.3.1)    (TCCC)     /   (Plant's total costs for the period)             see comment, left                (A = B+C)                                     0           %                        %                           %
      3.3.2)    (Workers' TCCC) / (Total personnel's TCCC)                     see comment,left       (A = 100% = B+C)                                     100             %              100       %                           %
      3.3.3)    (Workers' TCCC) / (Total variable costs of the plant) see comment, left                                                                            n.a.                     n.a.                                %
      3.3.4)    (Total mandatory social costs)                                    see comment, left                                                                        %                        %                           %
      3.3.5)    Monthly average TCCC per person                                                        (total annual TCCC / 12)                                            RMB                      RMB                         RMB

      3.3.6)    Monthly average number of working hours / per person;           incl. average overtime hours                                                               hours                    hours                       hours

      3.3.7)    Average hourly TCCC / per person                                                       (3.3.7 = 3.3.5 / 3.3.6)                           #DIV/0!           RMB         #DIV/0!      RMB           #DIV/0!       RMB

      3.3.8)    Minimum (legal) wage per month in your area (determined by local government)                                                                                                                                    RMB


      3.4)      Which non-cash benefits does your company                                     Dormatory                                Transportation to plant                             Free meals during work
      provide to its workers (if cash -> see Page 2, line 53/54) ?                     If there are other non-cash benefits, please over-write here

      3.5)      Comments on the importance of worker compensation in comparison to employee or other costs for your organization:




4.)   Development of Total Cash Compensation Costs (TCCC):
      4.1)      Below data has been provided by:                                        GM                               HR Manager                                GM + HR Manager                                     Others, who?


                                                                                                                                 Estimated Annual            Actual                        Plan                  Estimated Annual
      Increase in Total Cash Compensation Costs (TCCC as defined in 3.3)
                                                                                                                                      Average               Annual                       Annual                       Average
                                                                                                                                   2006 till 2009         2009 -> 2010                 2010 -> 2011                 next 3 years

      4.2)      What is your past and estimated future increase in average monthly compensation costs for the following compensation components (in %)?
                4.1.1)   Average per white-collar employee TCCC                                                                               %                            %                        %                           %
                4.1.2)   Average per blue-collar worker TCCC                                                                                  %                            %                        %                           %

      4.3)      Comments on the expected importance of workers' compensation in the future:
                How important do you consider workers' wage levels and wage structure for you in the coming years? Will it increase in comparison to other issues?
                                                                                                                                                                                                               Survey

                                                                                                                                                                                    - Variable Worker Compensation -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Page 2
5.)   Characteristics of your worker compensation system


      5.1)                                            Please indicate base period the following data is based:                                                                                                                                        Year 2009                                                                  Jan-June 2010                                                                                                              Other, which?

      5.2)                                            Detailed information on various wage systems within your plant

                                                      Wage system                                                                                                                                                                              Examples                                     5.2.1)               5.2.2)        5.2.3)          5.2.4)             5.2.5)               5.2.6)                            5.2.7)                             5.2.8)            5.3.16)
        A.) Identification of Data Set




                                                                                                                                                                                                                                                                                                                                                   Maintenance
                                                      Department/Function




                                                                                                                                                                                                                                                 Production




                                                                                                                                                                                                                                                                                                                                                                       Production


                                                                                                                                                                                                                                                                                                                                                                                                            Production


                                                                                                                                                                                                                                                                                                                                                                                                                                               Production


                                                                                                                                                                                                                                                                                                                                                                                                                                                                Production


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Production
                                                                                                                                                                                                                            Total Plant




                                                                                                                                                                                                                                                                                                 Total Plant




                                                                                                                                                                                                                                                                                                                                  Logistics
                                                                                                                                                                                                                                                                          Quality




                                                                                                                                                                                                                                                                                                                    Quality
                                                      (Production, Quality, Logistics, etc.)




                                                                                                                                                                                                                                                                                                                                                                                                                          Highest variable pay
                                                                                                                                                                                                                                                                                                                                                                                        Lowest variable pay
                                                                                                                                                                                                                                                                                                                                                                   group see comment
                                                                                                                                                                                                                                                                                                                                                                   Largest / average
                                                                                                                                                                                                                                                 Grinding_Cell 1




                                                                                                                                                                                                                                                                                             All (blue-collar)
                                                                                                                                                                                                                        All blue-collar




                                                                                                                                                                                                                                                                                                                                                                                                                                                             Further wage
                                                                                                                                                                                                                                                                                                                                                Maintenance
                                                      Description




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Supervisors
                                                                                                                                                                                                                                                                                                                                Shipping &
                                                                                                                                                                                                                                                                          Inspection




                                                                                                                                                                                                                                                                                                                  Inspection




                                                                                                                                                                                                                                                                                                                                Packaging
                                                      (e.g. departments, workgroups, skilled/unskilled, workers/supervisors, etc.)




                                                                                                                                                                                                                                                                                                                                                                                        group(s)


                                                                                                                                                                                                                                                                                                                                                                                                                          group(s)
                                                                                                                                                                                                                        workers




                                                                                                                                                                                                                                                                                             workers




                                                                                                                                                                                                                                                                                                                                                                                                                                                             groups
                                                                                                                                                                                                                                                                                                                  group




                                                                                                                                                                                                                                                                                                                                                group
                                                      Total number of blue-collar workers in this group                                                                                                   Persons                         20                       15                   5
                                                                                          of that men                                                                                                     Persons                         17                       15                   2
                                                                                          of that women                                                                                                   Persons                         3                        0                    3
        B.) Worker Information




                                                                                          of that local workers                                                 (see comment)                             Persons                         15                       11                   4
                                                                                          of that migrant workers                                                (see comment)                            Persons                         5                        4                    1
                                                      Are supervisors or workshop line-managers incl. in these data?                                                                                      Yes / No                   Yes                     Yes                       No
                                                      If 'Yes', how many are included                                                                                                                     Persons                         1                        1                    0
                                                      Average age of this workgroup' personnel                                                                                                                 Years            26.5                               28                  22
                                                      Average number of years in current position                                                                                                              Years            4.25                               5                    2
                                                      Average number of years with current company/plant                                                                                                       Years                  5.8                          7                    2
                                                      Annual unwanted turnover due to compensation (see comment)                                                                                                  %              13%                   10%                     20%
                                                                                          Elementry school or less (6 years)                                                                              Persons                         0                        0                    0
                                                                Education




                                                                                          Basic school education (9 years)                                                                                Persons                         18                       13                   5
                                                                                          High school/vocational schook education (12 years)                                                              Persons                         2                        2                    0
        C.) Job-Matching Information




                                                                                          Others (e.g. driver licence, welding certificate, etc.)                                                         Persons                         3                        2                    1
                                                                                                                               Average training time to get familiar with the tasks                            Days                       40                       50                  10
                                                                                                                          Physical strength
                                                                Job-related Information




                                                                                                                                                                                                                                      3.5                          4                    2
                                                                                             Requirements for workers




                                                                                                                          Accept hard work conditions                                        Answer Key                               2.5                          3                    1
                                                                                                                          Productivity oriented                                                                                       3.5                          4                    2
                                                                                                                                                                                             5 (= Very high)
                                                                                                                          Quality oriented                                                   4 (= High)                         4.25                               4                    5
                                                                                                                          Interpersonal skills                                               3 (= Average)                      2.25                               2                    3
                                                                                                                                                                                             2 (= Low)
                                                                                                                          Foreign language skills                                                                                         1                        1                    1
                                                                                                                                                                                             1 (= None)
                                                                                                                          Others                                                                                                          1                        1                    1
                                                     Average monthly total cash compensation (TCCC) per worker                                                                                   RMB/month                 2,175                 2,300                    1,800
                                                                                          Fixed wage components / TCCC                                                                            % (of TCCC)                    50%                   40%                     80%
                                                                                                                          Basic wage (incl. 13th-month pay if applicable)                         % (of TCCC)                    39%                   28%                     72%
                                                                                                                          Guaranteed bonuses (e.g. guaranteed minimum bonus)                      % (of TCCC)                         0%                       0%                  0%
                                                                                             Composition of fixed wages




                                                                                                                          Allowances - For shift work                                             % (of TCCC)                         4%                       5%                  2%
                                                                Fixed-wages




                                                                                                                          Allowances - For work conditions (e.g. heat)                            % (of TCCC)                         0%                       0%                  0%
                                                                                                                          Allowances - Food, transportation                                       % (of TCCC)                         0%                       0%                  0%
        D.) Total Cash Compensation Costs (TCCC)




                                                                                                                          Allowances - Others                                                     % (of TCCC)                         0%                       0%                  0%
                                                                                                                          Guaranteed holiday & vacation pay                                       % (of TCCC)                         4%                       4%                  4%
                                                                                                                          Paid sick-leave                                                         % (of TCCC)                         1%                       1%                  1%
                                                                                                                          Seniority pay                                                           % (of TCCC)                         2%                       2%                  1%
                                                                                                                          Other fixed components                                                  % (of TCCC)                         0%                       0%                  0%                      0%             0%              0%                 0%                 0%                          0%                                 0%                        0%                0%
                                                                                          Variable wage components / TCCC                                                                         % (of TCCC)                    50%                   60%                     20%               100%               100%          100%            100%                 100%                     100%                              100%                          100%             100%
                                                                                                                          Performance-based wage / TCCC                                           % (of TCCC)                    37%                   45%                     12%
                                                                                                                                       Output-related performance wage / TCCC                     % (of TCCC)                    26%                   35%                         0%
                                                                                                                            Criteria




                                                                                                                                       Quality-related performance wage / TCCC                    % (of TCCC)                    11%                   10%                     12%
                                                                                                                                                                                                  % (of TCCC)
                                                                Variable wages




                                                                                                                                       Other criteria-related perf.wage / TCCC                                                        0%                       0%                  0%                      0%             0%              0%                 0%                 0%                          0%                                 0%                        0%                0%
                                                                                          Composition of
                                                                                          variable wages




                                                                                                                                       Individual-related performance wage / TCCC                 % (of TCCC)                    30%                   40%                         0%
                                                                                                                                       Group/Team-related performance wage / TCCC                 % (of TCCC)                         7%                       5%              12%
                                                                                                                            Base




                                                                                                                                       Plant-related performance wage / TCCC                      % (of TCCC)                         0%                       0%                  0%
                                                                                                                                       Other base-related perf.wage / TCCC                        % (of TCCC)                         0%                       0%                  0%                      0%             0%              0%                 0%                 0%                          0%                                 0%                        0%                0%
                                                                                                                          Over-time pay                                                           % (of TCCC)                         8%               10%                         3%
                                                                                                                          Bonus - Non-guaranteed bonuses(e.g. year-end bonus)                     % (of TCCC)                         5%                       5%                  5%
                                                                                                                          Other variable components                                               % (of TCCC)                         0%                       0%                  0%            100%               100%          100%            100%                 100%                     100%                              100%                          100%             100%
                                                                                                                               Top criteria                        Ranking:                                            E.3.1                   E3.1                     E2.3
                                        Performance-based pay




                                                                                                                          (each >= 40% of total)                                                                       E.2.3
                                                                                                                                                                From most (=top)
                                             E.) Criteria for




                                                                                                                            Important criteria                                         Please select codes             E.2.1                   E2.1
                                                                                                                          (each >= 25% of total)                                       from the table on               E2.2                    E2.2
                                                                                                                                                                                            the right
                                                                                                                             Minor criteria                                                                            E4.1                    E4.1                     E3.1
                                                                                                                          (each < 25% of total)                   least important                                      E3.1                                             E4.1
                                                                                          How many different criteria do you use at maximum to evaluate the performance of a workgroup?

      5.3)                                            Any comments on the above data/questions?
                                                                                                                            调查问卷


                                                                                                                  工人的浮动薪酬

                                                                                                                                                                                                                                                                                                           Page 2
5.)   工人薪酬系统的特征


      5.1)                              请您选择所提供数据的时间年度:                                                                                                       2009年                                                 2010年1-6月                                                             其它时间,请注明

      5.2)                              您工厂不同岗位的薪酬系统信息:

                                        薪酬系统                                                                                                           举例                           5.2.1)          5.2.2)       5.2.3)         5.2.4)       5.2.5)         5.2.6)         5.2.7)         5.2.8)          5.3.16)




                                                                                                                                       工厂全员




                                                                                                                                                                                      工厂全员
                                        职能部门




                                                                                                                                                                                                                                                                                                             Production
                                                                                                                                                        生产


                                                                                                                                                                         质量
        A.) 数据分类




                                        (生产, 质量和物流等)




                                                                                                                                                                                                      质量


                                                                                                                                                                                                                   物流


                                                                                                                                                                                                                                  维修


                                                                                                                                                                                                                                                       生产


                                                                                                                                                                                                                                                                      生产


                                                                                                                                                                                                                                                                                     生产


                                                                                                                                                                                                                                                                                            生产
                                                                                                                                                                                                                                              人数最多或最具代


                                                                                                                                                                                                                                                             浮动薪酬最低的组


                                                                                                                                                                                                                                                                            浮动薪酬最高的组
                                                                                                                                       所有蓝领工人




                                                                                                                                                                                      所有蓝领工人
                                                                                                                                                        打磨_单元 1




                                                                                                                                                                                                                                                                                            其它薪酬组别
                                                                                                                                                                                                      质检组
                                        组别描述




                                                                                                                                                                         质检




                                                                                                                                                                                                                   包装和发货




                                                                                                                                                                                                                                              表性的组别
                                        (如, 部门, 工作站, 有技术/无技术岗位, 工人/主管等)




                                                                                                                                                                                                                                  维修组




                                                                                                                                                                                                                                                                                                            主管
                                                                                                                                                                                                                                                             别


                                                                                                                                                                                                                                                                            别
                                        此组别的全部工人                                                                             人数                 20                15            5
                                                      其中,男性                                                                  人数                 17                15            2
                                                      其中,女性                                                                  人数                  3                0             3
                                                      其中, 本地工人                                     (见注释)                     人数                 15                11            4
        B.) 工人信息




                                                      其中,外地工人                                      (见如上注释)                   人数                  5                4             1
                                        主管和生产线管人员是否已包含在此数据中?                                                                是/否                 Yes          Yes              No
                                        如果是,有多少                                                                              人数                  1                1             0
                                        此组别的平均年龄                                                                                 年        26.5                    28           22
                                        在本岗位的平均工龄                                                                                年        4.25                    5             2
                                        在本公司/工厂的平均工龄                                                                             年              5.8               7             2
                                        由于薪酬原因的年度离职率                                                    (见注释)                    %          13%              10%              20%
                                                      小学(6年)                                                                 人数                  0                0             0
                                             教育程度




                                                      初中 (9年)                                                                人数                 18                13            5
                                                      高中或技校 (12年)                                                            人数                  2                2             0
                                                      其它 (如, 驾驶执照和焊接证书等)                                                     人数                  3                2             1
        C.) 岗位匹配度信息




                                                                                          上岗前培训                                  天              40                50           10
                                                                        体力强度                                                                    3.5               4             2
                                                                        接受艰苦工作环境的程度                                                             2.5               3             1
                                             职位相关信息




                                                                        以产量为导向                                  5 (= 非常高)                       3.5               4             2
                                                       要求条件




                                                                                                                4 (= 高)
                                                                        以质量为导向                                                            4.25                    4             5
                                                                                                                3 (= 平均)
                                                                        沟通技巧                                    2 (= 低)                   2.25                    2             3
                                                                        外语技能                                    1 (= 没有)                         1                1             1
                                                                        其它                                                                       1                1             1
                                        每个工人的月度平均TCCC                                                              人民币/月                2,175           2,300            1,800
                                                      固定薪酬部分 / TCCC                                                % (of TCCC)              50%              40%              80%
                                                                        固定工资 (如有13薪,请包含在内)                         % (of TCCC)              39%              28%              72%
                                                                        保证奖金 (例如,约定的最低奖金额)                         % (of TCCC)                  0%            0%              0%
                                                                        倒班津贴                                       % (of TCCC)                  4%            5%              2%
                                                                        工作条件津贴 (如:高温工作环境)                          % (of TCCC)                  0%            0%              0%
                                                       固定薪酬部分
                                             固定薪酬




                                                                        餐补和车贴                                      % (of TCCC)                  0%            0%              0%
                                                                        其它津贴                                       % (of TCCC)                  0%            0%              0%
                                                                        带薪节假日                                      % (of TCCC)                  4%            4%              4%
        D.) 全部现金薪酬成本(TCCC)




                                                                        带薪病假                                       % (of TCCC)                  1%            1%              1%
                                                                        年限工资                                       % (of TCCC)                  2%            2%              1%
                                                                        其他固定工资                                     % (of TCCC)                  0%            0%              0%               0%           0%             0%           0%            0%             0%             0%               0%               0%
                                                      浮动薪酬部分 / TCCC                                                % (of TCCC)              50%              60%              20%      100%            100%         100%           100%          100%           100%           100%          100%            100%
                                                                        绩效薪酬 / TCCC                                % (of TCCC)              37%              45%              12%
                                                                                以产量绩效部分 / TCCC                     % (of TCCC)              26%              35%              0%
                                                      浮动薪酬各部分与TCCC的比率


                                                                         标准




                                                                                以质量绩效部分 / TCCC                     % (of TCCC)              11%              10%              12%
                                                                                其他相关标准 / TCCC                      % (of TCCC)                  0%            0%              0%               0%           0%             0%           0%            0%             0%             0%               0%               0%
                                             浮动薪酬




                                                                                个人绩效 / TCCC                        % (of TCCC)              30%              40%              0%
                                                                         组成部分




                                                                                团队/小组绩效 / TCCC                     % (of TCCC)                  7%            5%              12%
                                                                                工厂绩效 / TCCC                        % (of TCCC)                  0%            0%              0%
                                                                                其它相关部分 / TCCC                      % (of TCCC)                  0%            0%              0%               0%           0%             0%           0%            0%             0%             0%               0%               0%
                                                                        加班费                                        % (of TCCC)                  8%           10%              3%
                                                                        奖金 -非约定性奖金(例如:年终奖)                         % (of TCCC)                  5%            5%              5%
                                                                        其它浮动薪酬                                     % (of TCCC)                  0%            0%              0%       100%            100%         100%           100%          100%           100%           100%          100%            100%
                                                                          非常重要标准                  排序:                                E.3.1            E3.1             E2.3
                             E.) 绩效薪酬的标准排序




                                                                        (>= 40% 绩效薪酬)                                                E.2.3
                                                                                                  从高
                                                                             重要标准                                                    E.2.1            E2.1
                                                                                                             请从右侧表格中选
                                                                        (>= 25% 绩效薪酬)                                                E2.2             E2.2
                                                                                                               择代码
                                                                            次要标准                                                     E4.1             E4.1             E3.1
                                                                        (< 25% 绩效薪酬)              到低                                 E3.1                              E4.1
                                                      在评估各组别的绩效时,您最多设置多少个考核标准?

      5.3)                              您对此页问卷的整体评价和建议:
                                                                                                                                                                                                                                                                               Survey

                                                                                                                                                                                                                                                   - Variable Worker Compensation -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Page 3




5.)   Characteristics of your worker compensation system (continued):


      5.1)                                   Please indicate base period the following data is based:                                                                                                                                                                                                 0          Year 2009                                                                             0     Jan-June 2010                                                          0                                                                           Other, which?



      5.2)                                   Detailed information on various wage systems within your plant
                                                                                                                                                                                                                                                                                                                                                                                                            Continued from Page 2
                                             Wage system                                                                                                                                                                                                                                                  Examples                         5.2.1)                                 5.2.2)                   5.2.3)         5.2.4)            5.2.5)                                  5.2.6)                                5.2.7)                                5.2.8)                              5.3.x)




                                                                                                                                                                                                                                                                                                                                                                                                                                               Largest / averagegroup see comment
        A.) Identification of Data Set




                                                                                                                                                                                                                                                                                                                                                                                                                              Maintenance
                                             Department/Function




                                                                                                                                                                                                                                                                                                            Production




                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Production


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Production


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Production


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Further wage groups Production


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Production
                                                                                                                                                                                                                                                                                        Total Plant




                                                                                                                                                                                                                                                                                                                                                                    Total Plant




                                                                                                                                                                                                                                                                                                                                                                                                              Logistics




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Highest variable pay group(s)
                                                                                                                                                                                                                                                                                                                              Quality




                                                                                                                                                                                                                                                                                                                                                                                     Quality




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Lowest variable pay group(s)
                                             (Production, Quality, Logistics, etc.)




                                                                                                                                                                                                                                                                                                                                              All (blue-collar)workers


                                                                                                                                                                                                                                                                                                                                                                                     Inspectiongroup
                                                                                                                                                                                                                                                                                                            Grinding_Cell 1
                                                                                                                                                                                                                                                                                    All blue-collar




                                                                                                                                                                                                                                                                                                                                                                                                                           Maintenance
                                             Description




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Supervisors
                                                                                                                                                                                                                                                                                                                                                                                                            Shipping &
                                                                                                                                                                                                                                                                                                                              Inspection




                                                                                                                                                                                                                                                                                                                                                                                                            Packaging
                                             (e.g. departments, workgroups, skilled/unskilled, workers/supervisors, etc.)




                                                                                                                                                                                                                                                                                    workers




                                                                                                                                                                                                                                                                                                                                                                                                                           group
                                                                                                                                                                                     Reduce costs per output unit                                                                          4                    4               3
                                                     Which objectives, and with which priority, would you 'ideally' like to achieve with your compensation system




                                                                                                                                                                                     Reduce material use                                                                                   2                    3               1
                                                                                                                                                                    Cost reduction




                                                                                                                                                                                     Reduce energy use                                                                                     2                    2               1
                                                                                                                                                                                     Reduce machine downtime & wear                                                                        3                    3               1
                                                                                                                                                                                     Others, please enter
                                                                                                                                                                                     Others, please enter
                                                                                                                                                                                     Promote product quality (see comment)                                                                 4                    4               5
                                                                               (compensation system as a tool to achieve objectives)?




                                                                                                                                                                                     Reduce scrap rates                                                                                    4                    4               3
                                                                                                                                                                    Quality




                                                                                                                                                                                     Reduce rework of parts                                                                                4                    4               3
                                                                                                                                                                                                                                                           Answer Key
                                                                                                                                                                                     Reduce claims from customers                                                                          3                    3               5
        F.) Management's Objectives




                                                                                                                                                                                     Others, please enter                                                  5 = Absolute must
                                                                                                                                                                                     Others, please enter
                                                                                                                                                                                                                                                           4 = High priority
                                                                                                                                                                                     Increase output/worker                                                                                4                    4               2
                                                                                                                                                                    Output




                                                                                                                                                                                     Increase output capacity of plant                                     3 = Medium                      3                    3               2
                                                                                                                                                                                                                                                              priority
                                                                                                                                                                                     Others, please enter
                                                                                                                                                                                     Faster/more reliable delivery times                                   2 = Low priority                3                    3               3
                                                                                                                                                                                     Promote flexibility to change task sequence                           1 = No priority                 3                    3               3
                                                                                                                                                                                     Promote teamwork and cooperation                                                                      2                    2               3
                                                                                                                                                                                     Promote training/learning of new skills                                                               3                    3               2
                                                                                                                                                                                     Reduce voluntary/unwanted turnover                                                                    3                    3               3
                                                                                                                                                                    Others




                                                                                                                                                                                     Reduce pay-related griefances or stoppage                                                             2                    2               2
                                                                                                                                                                                     Compliance with all laws & regulations                                                                5                    5               5
                                                                                                                                                                                     Safety standards                                                                                      5                    5               1
                                                                                                                                                                                     Others, please enter
                                                                                                                                                                                     Others, please enter
                                                                                                                                                                                     Others, please enter
                                                                                                                                                                                                                                                                   5 = very good
                                             How satisfying/successful would you rate your current
                                                                                                                                                                                                                                                           Rate
                                                                                                                                                                                                                                                           1-5




                                                                                                                                                                                                                                                                   3 = satisfying          3                    2               4
                                             wage systems overall, and for the individual groups?                                                                                                                                                                  1= Very poor
                                                                                                                                                                                     Average amount of cash compensation                                                                   4                    4               3
                                                                                                                                                                    Overall




                                                                                                                                                                                     Total non-cash benefits                                                                               3                    3               3
                                                                                                                                                                                     Fixed-percentage of total cash compensation                                                           2                    2               2
                                                                                                                                                                                                    Basic wage & guaranteed bonuses                                                        2                    2               3
                                                                                                                                                                    Fixed pay


                                                                                                                                                                                     components
                                                                                                                                                                                      Fixed pay
                                               to make on your current wage system(s)?




                                                                                                                                                                                                    Allowances                                                                             3                    3               2
                                                (Questions aim at averages per person)




                                                                                                                                                                                                                                                           Answer Key
                                                  Which changes would you propose




                                                                                                                                                                                                    Seniority pay                                                                          3                    3               3
                                                                                                                                                                                                    Other fixed-wage components                            5 = Increase
        G.) Evaluation of your Wage System




                                                                                                                                                                                                                                                                                           3                    3               3
                                                                                                                                                                                                                                                              strongly
                                                                                                                                                                                     Variable-percentage of total cash payment                                                             4                    4               4
                                                                                                                                                                                                    Performance-based variable pay                         4 = Increase a bit              4                    4               4
                                                                                                                                                                                                                      Output-related performance pay       3 = No change                   4                    4               3
                                                                                                                                                                                                    Performance pay
                                                                                                                                                                    Variable pay




                                                                                                                                                                                                      components




                                                                                                                                                                                                                      Quality-related performance pay                                      3                    3               4
                                                                                                                                                                                     Variable pay
                                                                                                                                                                                     components




                                                                                                                                                                                                                                                           2 = Reduce a bit
                                                                                                                                                                                                                      Individual-related performance pay                                   4                    4               3
                                                                                                                                                                                                                      Group-related performance pay        1 = Reduce                      3                    2               4
                                                                                                                                                                                                                                                              strongly
                                                                                                                                                                                                                      Company-related performance pay                                      3                    3               3
                                                                                                                                                                                                    Over-time pay                                                                          3                    3               3
                                                                                                                                                                                                    Others variable pay components                                                         3                    3               3
                                                                                                                                                                                     Others, please enter
                                                                                                                                                                    Others




                                                                                                                                                                                     Others, please enter
                                             Any other comments on your wage system(s) or on what you would like to change?
                                                                                                                     Survey

                                                                                     - Variable             Worker Compensation -


                                                                                                                                                                                                                                                                                                                                                                     Page 4
6.)   Process of Design/Modification & Implementation of Compensation Systems


      Who was, is or should be involved in the design process of your




                                                                                                                                                                                                                                                                                 Other functional heads
                                                                                                                                                                                                                                                                                 e.g. Logistics, Quality
                                                                                                                                       (e.g. Hewitt or others)




                                                                                                                                                                                                                                                                                                           e.g. production planer
      compensation system and to which degree?




                                                                                                                                       External consultants




                                                                                                                                                                                                     and/or Deputy GM




                                                                                                                                                                                                                                                            Production manager
                                                                                                                                                                                                                        Financial manager/
                                                                                                                                                                 (Foreign/Regional)



                                                                                                                                                                                                     General manager




                                                                                                                                                                                                                                                                                                           Other employees




                                                                                                                                                                                                                                                                                                                                                   representatives
                                                                                                                                                                                      Work council




                                                                                                                                                                                                                                                                                                                                                   Other worker
                                                                                                                                                                                                                                                                                                                                    Teamleaders
                                                                                                                                                                                                                                               HR manager




                                                                                                                                                                                                                                                                                                                                    Supervisors/
                                                                                                                                                                 Headquarter
      Please indicate involvement with the following answer keys:




                                                                                                                                                                                      Unions or




                                                                                                                                                                                                                        controllers
      5 = Key decision maker, 4 = Involved in decision making, 3 = Consulting function only,




                                                                                                                                                                                                                                                                                                                                                                       Others
      2 = Only informed about design/decisions, 1 = Not involved at all


      6.1)                 Who was in the past involved in the design of your compensation?           (use 1 - 5)
      6.2)                 Who should be involved in case of a future update or modification?          (use 1 - 5)

      6.3)                 If 'Others', please indicate who:

      6.4)                 How has your current wage system mainly been developed?                                                  Designed to                                                                                          Designed                                                                                        Take-over, e.g.
                                                                                                                                   HQ standards                                                                                           locally                                                                                          JV history

      6.5)                 Did you check external wage systems and wage levels in your area?                                       Yes, in detail                                                                               Yes, somewhat                                                                                                         No

      6.6)                 For the effectiveness of your wage system, how important would you consider the role of communication (information exchange, not decision making)
                           between management and workers during:
                           6.6.1)   The design stage:                                        Very important                          Important                                                                                 Little important                                                                                           No importance
                           6.6.2)          Why?
                           6.6.3)          How to communicate?

                           6.6.4)   The implementation stage:                                Very important                          Important                                                                                 Little important                                                                                           No importance
                           6.6.5)          Why?
                           6.6.6)          How to communicate?

      6.7)                 Has the structure (not amount) of your wage system changed over                                     Yes, significantly                                                                                    Yes, slightly                                                                                          Basically not
                           the last 5 years, e.g. ratio fixed/variable pay or performance criteria?
                           Is your current wage system satisfying or do you plan to make                                           Basically final                                                                               Small changes                                                                                            Large changes
      6.8)
                           changes?

      6.9)                 Above data has been provided by:                                           GM                           HR Manager                                                                               GM + HR Manager                                                                                                          Others, who?




7.)   Influence factors on performance-based compensation schemes:


      How would you judge from your experiences the general impact of the following factors on                                                                                                                                               Influence on the effectiveness of performance-
      the effectiveness/functioning of performance-based pay components?                                                                                                                                                                                   based pay scheme
      As these factors get stronger, do they increase or decrease the effectiveness of performance-based pay components?




                                                                                                                                                                                                                                                                                                                 Decrease
                                                                                                                                                                                                                                                                                 Neutral /




                                                                                                                                                                                                                                                                                                                                    decrease
                                                                                                                                                                                                                                             Strongly




                                                                                                                                                                                                                                                                                                                                    Strongly
                                                                                                                                                                                                                                                                                                                                                             Don't
                                                                                                                                                                                                                                                            Increase
                                                                                                                                                                                                                                             increase

                                    red corners to read comments and mark your choice then with an
                                                                                                                                                                                                                                                                                 None
      (Please click on                                                                                                'X')                                                                                                                                                                                                                                   know

                           7.1)     The education of a worker
                           7.2)     The experience level of a worker
       Individual
         related




                           7.3)     The physical strength of a worker
                           7.4)     The age of a worker
                           7.5)     Face - Importance a worker pays to the concept of 'Face'
                           7.6)     Living standards and wage income of a worker
                           7.7)     System simplicity:              The simpler and more understandable
                           7.8)     System complexity:              The more details and different aspects are considered
                           7.9)     Transparency - Workers can see what other workers earn and why
       Wage system




                           7.10)    Distributive fairness:          Clear & fixed rules based on which wages are determined
         related




                           7.11)    Procedural fairness:            Equal treatment and chances for all workers
                           7.12)    Clear relationship between performance and wage amount
                           7.13)    Pay criteria are fixed and measurable, not subject to supervisor evaluation
                           7.14)    Time to reward:          The faster the pay follows after performance (monthly <-> annually)
                           7.15)    The amount of the variable pay (e.g. the higher the RMB amount/output unit)
                           7.16)    Corporate culture and leadership emphasizing and living performance orientation
                           7.17)    Alignment between company strategy and performance criteria for workers
                           7.18)    Support:       Supervisors / line managers support of the wage system
       Company (culture)




                           7.19)    Support:       Functional managers (HR, production, ...) support of the wage system
           related




                           7.20)    Support:       Unions/work council support of the wage system
                           7.21)    Support:       Top management's involvement and support of the wage system
                           7.22)    Trust: Pay standards will not change once performance improves (e.g. RMB/unit)
                           7.23)    Guanxi - Relationships between a worker and superiors or other influential people
                           7.24)    Management's willingness to modify system if workers identify flaws
                           7.25)    Profitability of the company
      Which other influences would you consider as important for the effectiveness of a variable compensation system for workers?
                           7.26)
                           7.27)
            Others




                           7.28)
                           7.29)
                           7.30)
                                                                                                  Survey

                                                                       - Variable            Worker Compensation -


                                                                                                                                                                                                                             Page 5


      7.31) Do you believe that the gender (man/woman) of a worker makes a                                                 Yes                                              No difference                        Don't know
              difference for the effectiveness of a performance-based pay system?
      7.32) If 'Yes', why do you think it makes a difference and in what way?



      7.33) Do you believe that it makes a difference for the effectiveness of a                                           Yes                                              No difference                        Don't know
              performance-based pay system whether workers are
              local or migrant workers?                                      see comment
      7.34) If 'Yes', why do you think it makes a difference and in what way?

      7.35) Data in section 7) has been provided by:                                  GM                             HR Manager                                     GM + HR Manager                                     Others, who?




8.)   Basic assumptions and beliefs related to (variable) compensation systems:

                                                                                                                           Agree - Disagree




                                                                                                                                                                    Don't know
                         Please indicate whether and to which degree you agree or disagree                                                                                                      Please comment




                                                                                                                                              Disagree
                                                                                                                Strongly




                                                                                                                                                         Strongly
                                                                                                                                                         disagree
                                                                                                                                    Neutral
                                                                                                                           Agree
                                                                                                                 agree
                                           with the following statements                                                                                                                    why you agree or disagree


              Workers' main motivation is to earn money. Therefore, financial incentives can be helpful to
       8.1)
              motivate workers to produce more/better outcomes?

              Financial incentives are not as effective to improve workers' performance
       8.2)
              as "intrinsic motivation" (e.g. feeling of achievement and fulfillment)

              Motivation (Expectency theory): People will perform if they think that they
       8.3)
              can influence/achieve s.th. and that this will give them what they want.

              Motivation (Equity theory): Workers do not only care about their own wage, they pay high
       8.4)
              importance to the effort/wage ratio of co-workers (fairness!)

              A compensation system can create a win-win situation between companies
       8.5)
              and employees. It's not a zero-sum game where one party has to loose.

              To determine worker wages, it is better to use financial criteria (e.g. firm
       8.6)
              profit) instead of operational criteria (e.g. output, quality level)

              In order to improve the performance of workers, it is enough to influence
       8.7)
              workers behavior and efforts; it is not required to change their attitudes.

              The way workers perceive their wage system is more important than how the system 'really' is
       8.8)
              and functions (perception more important than 'reality')

            HR practices influence firm performance-> It's a one-direction causal chain
       8.9) Intended         Actual             Perceived         Employee       Firm
            HR practice     HR practices      HR practices     reactions     performance
            HR practices do not influence performance much.
      8.10) Rather, if a company's performance is good then it can afford to implement
            more HR practices that provide benefits to employees and workers.

              The effectiveness of wage systems depends on the situation of each firm.
      8.11)
              There is no "one best way" and "best-practices" can only offer guidance.

              There may very different blue-collar wage systems today in China. But over time they will
      8.12)
              become more and more similar.

              To motivate Chinese workers, one has to use different tools, actions,
      8.13)
              incentives, etc. than for workers in Western countries.

              Performance-based financial incentives are more important/suitable to motivate workers in
      8.14)
              China than in Western countries

              Performance-based incentives should not be capped at a max. amount. The higher a worker's
      8.15)
              performance, the higher his/her pay should be.

      8.16) Data in section 8) has been provided by:                                  GM                             HR Manager                                     GM + HR Manager                                     Others, who?




9.)   Interest in further cooperation and information exchange:

      I plan to conduct later on, as main part of my doctoral research, in-depth investigations in 3-4 companies' wage systems. During this investigation, I would
      bring in my own experiences in restructuring and implementing worker compensation systems.                                                                                              Yes, please contact us
      9.1)    Would you be interested to further cooperate with me on an in-depth case study research of your                                                                                 Maybe, please contact us
              worker compensation?                                                                                                                                                            No


                                                                                                   End of survey


                                                    Thank you very much for participating in this survey !!!
      Please post this survey upon completion to the following email:                                                              michael.bott@mailbox.grenoble-em.com

      Shanghai, September 15th, 2010:
                                                                                                                                                Instructions - Page 4

I.3)   Business Classification (NACE)

       A. Agriculture, Forestry and Fishing
               A01 Crop and animal production, hunting and related service activities
               A02 Forestry and logging
               A03 Fishing and aquaculture
       B. Mining and Quarrying
               B05 Mining of coal and lignite
               B06 Extraction of crude petroleum and natural gas
               B07 Mining of metal ores
               B08 Other mining and quarrying
               B09 Mining support service activities
       C. Manufacturing
               C10 Manufacture of food products
               C11 Manufacture of beverages
               C12 Manufacture of tobacco products
               C13 Manufacture of textiles
               C14 Manufacture of wearing apparel
               C15 Manufacture of leather and related products
               C16 Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials
               C17 Manufacture of paper and paper products
               C18 Printing and reproduction of recorded media
               C19 Manufacture of coke and refined petroleum products
               C20 Manufacture of chemicals and chemical products
               C21 Manufacture of basic pharmaceutical products and pharmaceutical preparations
               C22 Manufacture of rubber and plastic products
               C23 Manufacture of other non-metallic mineral products
               C24 Manufacture of basic metals
               C25 Manufacture of fabricated metal products, except machinery and equipment
               C26 Manufacture of computer, electronic and optical products
               C27 Manufacture of electrical equipment
               C28 Manufacture of machinery and equipment n.e.c.
               C29 Manufacture of motor vehicles, trailers and semi-trailers
               C30 Manufacture of other transport equipment
               C31 Manufacture of furniture
               C32 Other manufacturing
               C33 Repair and installation of machinery and equipment
       D. Electricity, Gas, Steam and Air Conditioning Supply
               D35 Electricity, gas, steam and air conditioning supply
       E. Water Supply; Sewerage, Waste Management and Remediation Activities
               E36 Water collection, treatment and supply
               E37 Sewerage
               E38 Waste collection, treatment and disposal activities; materials recovery
               E39 Remediation activities and other waste management services
       F. Construction
               F41 Construction of buildings
               F42 Civil engineering
               F43 Specialised construction activities
       G. Wholesale and Retail Trade; Repair Of Motor Vehicles and Motorcycles
               G45 Wholesale and retail trade and repair of motor vehicles and motorcycles
               G46 Wholesale trade, except of motor vehicles and motorcycles
               G47 Retail trade, except of motor vehicles and motorcycles
       H. Transportation and Storage
               H49 Land transport and transport via pipelines
               H50 Water transport
               H51 Air transport
               H52 Warehousing and support activities for transportation
               H53 Postal and courier activities
       I. Accommodation and Food Service Activities
               I55 Accommodation
               I56 Food and beverage service activities
                                                                                                                                Instructions - Page 5

J. Information and Communication
        J58 Publishing activities
        J59 Motion picture, video and television programme production, sound recording and music publishing activities
        J60 Programming and broadcasting activities
        J61 Telecommunications
        J62 Computer programming, consultancy and related activities
        J63 Information service activities
K. Financial and Insurance Activities
        K64 Financial service activities, except insurance and pension funding
        K65 Insurance, reinsurance and pension funding, except compulsory social security
        K66 Activities auxiliary to financial services and insurance activities
L. Real Estate Activities
        L68 Real estate activities
M. Professional, Scientific and Technical Activities
        M69 Legal and accounting activities
        M70 Activities of head offices; management consultancy activities
        M71 Architectural and engineering activities; technical testing and analysis
        M72 Scientific research and development
        M73 Advertising and market research
        M74 Other professional, scientific and technical activities
        M75 Veterinary activities
N. Administrative and Support Service Activities
        N77 Rental and leasing activities
        N78 Employment activities
        N79 Travel agency, tour operator and other reservation service and related activities
        N80 Security and investigation activities
        N81 Services to buildings and landscape activities
        N82 Office administrative, office support and other business support activities
O. Public Administration and Defence; Compulsory Social Security
        O84 Public administration and defence; compulsory social security
P. Education
        P85 Education
Q. Human Health and Social Work Activities
        Q86 Human health activities
        Q87 Residential care activities
        Q88 Social work activities without accommodation
R. Arts, Entertainment and Recreation
        R90 Creative, arts and entertainment activities
        R91 Libraries, archives, museums and other cultural activities
        R92 Gambling and betting activities
        R93 Sports activities and amusement and recreation activities
S. Other Service Activities
        S94 Activities of membership organisations
        S95 Repair of computers and personal and household goods
        S96 Other personal service activities
T. Activities Of Households As Employers; Undifferentiated Goods- and Services-Producing Activities Of Households For Own Use
        T97 Activities of households as employers of domestic personnel
        T98 Undifferentiated goods- and services-producing activities of private households for own use
U. Activities Of Extraterritorial Organisations and Bodies
        U99 Activities of extraterritorial organisations and bodies
                                                           Survey
                                              - Variable Worker Compensation -

                                                           Instructions


                                                                                                            Instructions - Page 1


       The following remarks are meant to facilitate an understanding of the survey and to ensure an equal
       answering of the questions in this survey.
       I recommend to print out the first 3 pages of the instructions (this worksheet, not the industry classification)
       and to use them as a reference while answering the survey question-by-question.
       Besides the following remarks, a number of remarks and comments on various questions have been
       attached as 'Comments' to the cells where the questions are raised. These comments can be
       recognized by the red mark in the upper right-hand corner of the cell.


I.1)   General remarks and definitions:
              Definitions:
              Workers:                             Blue-collar workers
                                                   no white-collar employees and preferably not including supervisors.
              Wage system:                         All workers within one wage system have the same criteria, base
                                                   and calculation formula to calculate their wages. They have the
                                                   same relationship of fixed pay to variable pay.
                                                   A wage system includes fixed + variable pay components.
                                                   There can be many different wage systems within one company.
                                                   Examples of differences between wage systems:
                                                   a) Some groups are paid based on the total team output while other
                                                      in other groups everyone is paid based on his/her individual output.
                                                   b) If a task allows a lot of individual influence, the variable pay may
                                                      make up most of the person's total pay while in another workgroup
                                                      where the process is controlled mainly by machines, the variable
                                                      portion may be very small.
                                                   c) Even groups are e.g. based on individual output may have differences
                                                      if their tasks are different, e.g. a long-lasting grinding process may
                                                      bring a different pay/piece as a quick spot welding.
              Variable compensation:               All compensation components which are not a fixed part of
                                                   the monthly or annual wage.
                                                   Variable compensation (for this research) consists of
                                                   performance-based and other variable compensation components.
              Performance-based                    Variable compensation components that are based on the
              compensation:                        performance of workers. 'Performance' may be defined
                                                   differently by each company, e.g. different combinations of
                                                   output and/or quality related criteria.
              Total Cash Compensation              Wage/salary + all cash allowances + cash bonuses + over-
              Costs (TCCC) =                       time pay + performance pay and any other cash pay

              Other remarks:
              Main data entry fields               These data entry fields are marked in orange color.
                                                   Please provide these data as complete as possible.
              Optional data entry fields           These data entry fields are marked in light yellow color.
                                                   I appreciate if these fields can be entered as well to provide
                                                   even more data.
              Your comments                        Please add as many comments as you like. The more the better!
                                                   Don't feel limited by the indicated spaces; use whatever space you need.
                                                          Survey
                                             - Variable Worker Compensation -

                                                         Instructions


                                                                                                          Instructions - Page 2


I.2)   Remarks concerning specific questions:

       Question:     Remark:

       3.3.1 - 3.3.5) The purpose of the questions in this section is to establish the importance of workers' wages
                      in relation to other cost categories of the company.
                      For questions 3.3.1 - 3.3.5, please put your cursor on the red corner (= comment) of cells
                      B60 - B64. A comment will appear that explains the intention of the question and how to
                      calculate the data to be entered.
                      If the calculation of exact data is not available or if you do not want to provide it,
                      please give an estimated or approximated data (e.g. rounded to an end figure '5' or '0')
                      and add a remark in 3.4) that the data is estimated or approximated.

       4.2)          The question aims to determine the percentage change (increase) of workers' and employees'
                     average monthly cash compensation costs (TCCC) for various years. The purpose is to
                     whether workers' wages are likely to gain in importance relative to other costs.
                     This question asks for the per person wage increase, not for a wage increase due to
                     employing more workers.

       5.1)          Please do not overlook question 5.1) at the top of the table (line 10)

       5.2)          Besides the following comments, a number of comments are also included to the cells in the
                     data entry sheets. Please look for the red corner mark (= comment) and put the cursor on it.

                     Question 5.2.1- ... aim to gain detailled information on a company's current wage schemes.
                     Please refer to the definition of "wage system" (above, page 1) and to the examples given
                     how wage systems can differ from each other.
                     In one company, there can be different wage systems for different workgroups,
                     e.g. welders' wage may be calculated different from someone's wage at an assembly line or
                     from someone who is exposed to a lot of heat (e.g. vulcanization) or who has to perform
                     very heavy labor work.
                     In order to analyze the success and failure factors of wage systems, it is therefore best
                     to look at these wage systems individually. Therefore, please try to provide data on the
                     wage systems of your main workgroups, including the workgroups with the highest and the
                     lowest variable wage portions in order to show the range of variable pay used.

                     If you have only data for all workers' of the plant, please provide these data and please try
                     to estimate (some of) the data or at least the overall fixed and variable percentages and the
                     performance criteria.

                     In case the data for any percentages are not available/known, please enter -> n.a.
                     into the respective cell

       5.2.1)        Shows the overall data for your entire plant if you cannot or do not want to provide a
                     breakdown into various wage systems.
       5.2.2-4)      If possible, show the wage systems for logistics, quality (assurance) and maintenance
                     workers separately from production workers.
       5.2.5-7)      3 lines for production wage systems: for the workgroups with the highest and the lowest
                     variable wage portion and one line for your largest, most representative workgroup
                     workgroup wage system.
                                                  Survey
                                     - Variable Worker Compensation -

                                                  Instructions


                                                                                                   Instructions - Page 3


Question:     Remark:
5.2.9-15)     These lines a hidden. If you can enter data for additional wage systems, please click on
              the '+' on the left, in the menu line, and additional lines will show up.
5.2.16)       Finally, since supervisors may have a different pay structure than their workers, it would be
              great if you could enter the data for your (production) supervisors here.
              Again, if not all data are available, maybe you can estimate the key data.

Section D.)   Total Cash Cost Compensation (TCCC), lines 48 - 71.
              For the definition of TCCC, please look above on Instructions - Page 1 for the components.

              Total wages are separated in total fixed (line 49) and total variable (line 60)
              wages. Fixed and variable wages are then further broken down into individual components.

              Variable wages are broken down into performance-based (line 61) and other variable
              components (lines 69 - 71).
              Performance-based wages (line 61) are further separated by criteria (lines 62 - 64) and
              by the base (lines 65 - 68). All components add up to the total (see next paragraph).

              All wage components in this section are expressed in % of the total TCCC. That means
              if one adds up all the fixed components (lines 50 - 59) one gets the same percentage
              as shown in line 49 for total fixed / TCCC; the same applies for other break-downs.

Section E.)   Since there are numberous possibilities how to measure workers' performance.
              I did only provide some pre-set examples in the table on the right of the entry sheet. This table
              leaves space so that you can enter the criteria you use in your own company. Please
              enter then the respective code (given in blue) to the wage systems where you apply this
              criteria.

Section F.)   This question identifies which objectives the company's management wants to achieve
              with its compensation scheme. It refers to the total compensation scheme, not just the
              variable portion.
              While Section F.) shows the intention what to achieve, Sections D.+E.) show how the
              company tries to get its workers to do what is necessary to achieve these objectives.

Section G.)   This question asks for management's evaluation to which degree you think that your
              various wage systems (as detailled in Section D.+E.) actually achieve the intended objectives
              (as detailed in Section F.)
              It is quite possible that you may be satisfied with the outcome of some of the wage systems
              while other workgroups do not perform as you would expect based on their wage system.

7.)           The question aims to identify the influence of various factors on the effectiveness
              of a performance-based pay system. While there are certainly many differences
              between the companies of the participants, the intention is to see whether there are some main
              factors which all/most of you think are important for the effectiveness of an incentive system.

8)            Question 8 asks for your opinion on a number of questions. The purpose is to see whether and
              how assumptions and beliefs influence and shape compensation systems in practice.

				
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posted:10/19/2011
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