TY - JOUR

T1 - Country-Compatible Incentive Design

AU - Gunkel, Marjaana Anna Maria

AU - Lusk, Edward J.

AU - Wolff, Birgitta

PY - 2009

Y1 - 2009

N2 - Today’s management faces the challenge of employing workforces in different countries. Institutional frameworks, both formal and informal, in various countries influence employees’ preferences related to performance rewards and management styles. We conduct an empirical study to examine employees of a German multinational corporation at its locations in China, Germany, Japan, and the U.S. We find that employees from these countries have different preferences on incentives and management styles. Therefore, motivational mechanisms designed for one country might not work in others. We also find that the logic of diminishing marginal utility applies to most performance rewards.

AB - Today’s management faces the challenge of employing workforces in different countries. Institutional frameworks, both formal and informal, in various countries influence employees’ preferences related to performance rewards and management styles. We conduct an empirical study to examine employees of a German multinational corporation at its locations in China, Germany, Japan, and the U.S. We find that employees from these countries have different preferences on incentives and management styles. Therefore, motivational mechanisms designed for one country might not work in others. We also find that the logic of diminishing marginal utility applies to most performance rewards.

KW - Management studies

KW - Incentive Compensation

KW - Institutional Frameworks

KW - Management Style

KW - Motivation

KW - Performance Rewards

U2 - 10.1007/BF03396788

DO - 10.1007/BF03396788

M3 - Journal articles

VL - 61

SP - 290

EP - 309

JO - Schmalenbach Business Review

JF - Schmalenbach Business Review

SN - 1439-2917

IS - 3

ER -