The cultural influence on employees' preferences for reward allocation rules: A two-wave survey study in 28 countries
No Thumbnail Available
Date
2022
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
John Wiley & Sons Ltd
Abstract
Multinational organisations and government organisations
experienced problems introducing a merit pay system in
different countries. Designing the right reward system is
challenging in an international work environment, because
employees often have different expectations about reward
allocations. Most prior research predicted that individualis tic employees prefer equity as allocation rule for rewards,
while collectivistic employees prefer equality as allocation
rule. However, prior research could not confirm this predic tion. To expand prior research, we integrate cultural value
theory and allocation rule research to examine if employees'
culture-inspired personal values influence their preferred
allocation rule. We conducted a two-wave study with 3432
employees from 28 countries. The results show that employ ees' cultural value orientations are related to their preferred
allocation rules. Further, supervisors are not only consid ered fair if they distribute outcomes based on employees'
task performance but also based on equality or extra-role
performance
Description
Keywords
international HRM, compensation, allocation rules