A Performance Motivator in one Country, A Non-Motivator in Another? An Empirical Study

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Authors

The management of the 21st century faces the challenge of employing workforce in different countries. These employees have different preferences related to performance rewards. Our research employs the following three constructs: the institutional framework and its formal and informal implications for incentive compensation, diminishing marginal utility of individuals related to performance rewards, and the incentive system as a motivational device in the organizational work environment. We have conducted an empirical study using an enriched form of Hofstede's cross-cultural questionnaire to examine employees of one MNC in China, Germany, Japan and the USA. Our results show that employees from these countries have different preferences on incentives and that incentive plans designed for one country might not even have motivating consequences in the others. We also find that the logic of diminishing marginal utility applies to certain rewards.
Original languageEnglish
JournalAcademy of Management Proceedings
Volume2005
Issue number1
Number of pages6
ISSN0065-0668
DOIs
Publication statusPublished - 01.08.2005
Externally publishedYes
Event65th Annual Meeting of the Academy of Management - AOM 2005: A New Vision of Management in the 21st Century - Honolulu, United States
Duration: 05.08.200510.08.2005
Conference number: 65
https://www.effectuation.org/wp-content/uploads/2017/05/A-new-Vision-of-Management-1.pdf
http://aom.org/Meetings/Past-Meetings/
https://pd.aom.org/2005/pdf/AOM_2005_Annual_Meeting_Program.pdf
http://aom.org/Meetings/annualmeeting/past-meetings/theme2005.aspx

    Research areas

  • Management studies - Cross-national comparison, Incentive compensation, Performance rewards

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