TY - JOUR
T1 - The cultural influence on employees' preferences for reward allocation rules
T2 - A two-wave survey study in 28 countries
AU - Adamovic, Mladen
N1 - Publisher Copyright:
© 2023 The Authors. Human Resource Management Journal published by John Wiley & Sons Ltd.
PY - 2023/11
Y1 - 2023/11
N2 - 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 individualistic employees prefer equity as allocation rule for rewards, while collectivistic employees prefer equality as allocation rule. However, prior research could not confirm this prediction. 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 employees' cultural value orientations are related to their preferred allocation rules. Further, supervisors are not only considered fair if they distribute outcomes based on employees' task performance but also based on equality or extra-role performance.
AB - 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 individualistic employees prefer equity as allocation rule for rewards, while collectivistic employees prefer equality as allocation rule. However, prior research could not confirm this prediction. 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 employees' cultural value orientations are related to their preferred allocation rules. Further, supervisors are not only considered fair if they distribute outcomes based on employees' task performance but also based on equality or extra-role performance.
KW - allocation rules
KW - compensation
KW - culture-inspired personal values
KW - distributive fairness
KW - international HRM
KW - multinational organisations
KW - reward allocation
UR - http://www.scopus.com/inward/record.url?scp=85146096175&partnerID=8YFLogxK
U2 - 10.1111/1748-8583.12486
DO - 10.1111/1748-8583.12486
M3 - Article
AN - SCOPUS:85146096175
SN - 0954-5395
VL - 33
SP - 889
EP - 921
JO - HUMAN RESOURCE MANAGEMENT JOURNAL
JF - HUMAN RESOURCE MANAGEMENT JOURNAL
IS - 4
ER -