Description
Solution
Two major differences in employment and labour market traditions between the UK and Japan are job security vs. labour flexibility and working hours and overtime culture.
Job Security vs. Labour Flexibility- Like most other countries, Japan has a lifetime employment tradition which encourages the employees to work with one company for most of their careers leading to loyalty and stability. On the contrary, the labour market in the UK is flexible and an employee can change jobs for career growth (Wahl and Tabor Hartley, 2011). In the example, A UK based pharmaceutical researcher would switch from one company to another every few years for better pay, while the Japanese counterpart would expect his or her long-term progression within a single company.
Working Hours & Overtime Culture – Japanese employees often work long hours with unpaid overtime (karoshi risks), prioritizing group harmony. The UK promotes work-life balance, with laws limiting excessive work hours. Example: In Japan, a production manager may stay late to support team efforts, while in the UK, strict working time regulations ensure employees do not exceed 48-hour workweeks unless they opt out.
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- In this report, an evaluation of a contract by Oracle which is FIDIC guiding their construction projects in more than 67 countries globally has been carried out.
- It is evident from the analysis that there are varying contractual terms having an influence on the power and risk distribution between a supplier and an organisation.
- The rationale of this is that a contract is a legally enforceable agreement between different parties with specific acts or practices to be put into account.
- The core report areas of focus of focus has included the issues of price, quality, construction projects delivery timeline and health and safety have been put into account on the extent in which the risk and power are distributed between the contractor and the organisations.
- In the components identified, it is evident that irrespective of whether the buyer or supplier executes the risk or power.
- Through the application of different tools such as Mendelow stakeholders matrix, SWOT analysis and others, distinct issues and risks characterised by various challenges in the construction projects execution with their mitigation approaches and risks have been evidenced.
- As evidenced from the Kraljic analysis, it is evident that contractual terms have a strategic relevance in the context of Oracle informing on their holistic leveraging on the risks and powers of the contract.
- In situations where Oracle fails in leveraging on contract holistic risks power balance, warrant and also insurance cover is used.
