Journal of Strategic Human Resource Management

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Cross Cultural Dimension of Compensation Management: Global Perspectives


Affiliations
1 Senior Professor and Director, Institute of Public Enterprise, Hyderabad, India
2 Assistant Professor, Institute of Public Enterprise, Hyderabad, India
     

   Subscribe/Renew Journal


With the advent of globalization, companies have realized the need to operate transnational and mark their footsteps across the world. The rise in frequent cross-nation transaction and operation has lead companies to focus on people centric approaches. Cross cultural issues have acted as hindrances in the performance of the organizations. Thus, there is a huge scope for companies to focus on HR approaches which act as a solution to numerous cross cultural issues. One such area which requires close attention of HR professionals is the 'Compensation Management'. While developing the global compensation and benefit composition, HR must deal with many factors that are not present in a domestic environment. In this paper, it is attempted to discuss about some of those factors that unswervingly impacts global compensation and benefits strategies. The paper identifies the factors affecting international compensation management and discusses the role of culture in developing compensation strategies.

Keywords

Expatriate Pay, Compensation Management, Cross-Culture, International Compensation
Subscription Login to verify subscription
User
Notifications
Font Size


  • Abowd, J. M. (1990). Does Performance-Based Compensation Affect Corporate Performance? Industrial and Labor Relations Review, 43(3), pp. 52-73.

  • Armstrong, M. (2007). Employee Reward. London: Kogan Page.

  • Cavusgil, S. T. & Das, A. (1997). Methodological Issues in Empirical Cross-Cultural Research: A Survey of the Management Literature and a Framework. Management International Review, 37, pp. 71-96.

  • Cheng, J. (1987). Designing Cross- National Organizational Research: A Macro Perspective, Paper Presented at the All- Academy Session on Cross- Cultural Research Methodology, Academy of Management Meetings (Unpublished).

  • Child, J. (1981). Cultural Contingency and Capitalism in the Cross- National Study of Organizations. Research in Organizational Behavior, 3, pp. 303-356.

  • Coughlan, A. & Schmidt, R. (1985). Executive Compensation, Management Turnover, and Firm Performance: An Empirical Investigation. J. Acc. Econ, 7(1-3), pp.43-66.

  • De Kok, J. (2003). Human Resource Management in Small and Medium-Sized Enterprises, pp .1-16.

  • Deresky, H. (2006). 5e, International Management- Managing Across Borders and Cultures, (pp. 386). Delhi: Pearson Prentice Hall.

  • Earley, P. C. & Gibson, C. B. (1998). Taking Stock in Our Progress on Individualism-Collectivism: 100 Years of Solidarity and Community. Journal of Management, 24(3) pp. 265-304.

  • Earley, P. C. & Singh, H. (1995). International and Intercultural Management Research: What's next? Academy of Management Journal, 38(2), pp. 327-340.

  • Evans, P. & Barsoux. (2010). The Global Challenge- International Human Resource Management. Tata Mcgraw Hill.

  • Fenwick, M. (2006). International Compensation and Performance Management. In Will, A., Harzing. & Ruysseveldt, J. V. (eds.), (pp. 311). London: Sage Publication.

  • Friedman, T. L. (2005). The World is Flat: A Brief History of the Twenty-First Century. New York: Farrar, Straus & Giroux.

  • Ger., G. (1999). Localizing in the Global Village: Local Firms Competing in Global Markets. California Management Review, 41(4), pp. 64-83.

  • Ghosh, A. (2003). Board Structure, Executive Compensation and Firm Performance in Emerging Economies: Evidence from India, IGIDR Working Paper Series. IDGIDR, Mumbai.

  • Gibbons. R, & Murphy, K. J. (1990). Relative Performance Evaluation for Chief Executive Offi cers. Indian Labor Relation Review, 43(3), pp. 30-51.

  • Ginnekan. & Hoevan. (1989). Industrialization, Employment and Earnings: An Internationalization, Employment and Earnings: An International Survey. International Labour Review, 128(5), pp. 571-59.

  • Greene, R. (2003). Variable Pay: How to Manage it Effectively, White Paper, SHRM, Alexandria, VA, April.

  • Griffi n. & Pustay. (1999). 2e, International Business- A Managerial Perspective. (pp .356). Addison Wesley Publishing Inc.

  • Hijazi, S. T & Bhatti, K. K. (2007). Determinants of Executive Compensation and Its Impact on Organizational Performance. Compensation & Benefi ts Review, (39(2), pp. 58-68). Sage Publications.

  • Himachali, S. Factors Affecting Global Compensation & Benefi ts. Retrieved 2nd Feb, 2011, from http://www.sanjeevhimachali.com/?p=19

  • Hofstede, G. (1980). Culture’s Consequences: International Differences in Work Related Values. Beverly Hills, CA: Sage publications.

  • Hofstede, G. (1991). Cultures and Organization, Software of the Mind, Maidenhead. UK: McGraw Hills.

  • Hofstede, G. (1993). Cultural Constraints in Management Theories. Academy of Management Executive, 7(1), pp. 81-94.

  • Jensen, M. C. & Murphy, K. J. (1990 b.). Performance Pay and Top Management Incentives. Journal of Political Economy, 98(2), pp. 225-264.

  • Jensen, M.C. & Murphy, K. J. (1990 a.). CEO Incentives: It's Not How Much, But How. Harvard Business Review, 68(3), pp. 138-53.

  • Jing, P. (2010). Cross Cultural Management, Degree Thesis. Vaasa University of Applied Sciences, Degree Programme of International Business.

  • Kirkman, B. L., Lowe, K. B., & Gibson, C. B. (2006). A Quarter Century of Culture’s Consequences: A Review of Empirical Research Incorporating Hofstede’s Cultural Values Framework. Journal of International Business Studies, 37(3), pp. 285-320.

  • Lawler, E. (1971). Pay and Organizational Effectiveness: A Psychological Perspective. New York: McGraw-Hill.

  • Leibman, M. S. & Bruer, R. A. (1994). Where There is a Will There’s a Way. Journal of Business Strategy, March/April,15(2), pp. 26-34.

  • Marks, S. J. (2001). Incentives That Really Reward and Motivate. Workforce, 80(1), pp. 108-114.

  • Mc Adams, D. P. (1996). Alternative Futures for the Study of Human Individually. Journal of Research in Personality, 30, pp. 374-388.

  • McManis, G. L. & Leibman, M. S. (1988). Succession Planners. Personnel Administrators, April, pp. 24-30. Pearce, J. J., Stevenson, W. B. & Perry, J. L. (1985).

  • Managerial Compensation Based on Organizational Performance: A Time Series Analysis of the Effects of Merit Pay. Academy of Management Journal, 28(2), pp. 261-278.

  • Price, A. (2004). Human Resource Management in Business Context, pp. 32-35.

  • Ramaswamy, K. R. V. & Gomes, L. (2000). A Study of the Determinants of CEO Compensation in India. Management International Review, 40(2), pp. 167-191.

  • Rao, S. (2009). International Human Resource Management, (pp. 14,330). Mumbai: Himalaya Publishing House.

  • Reynolds, C. (1989 2e.). Compensation of Overseas Personnel, Famularo. Handbook of Human Resource Administration. McGraw-Hill.

  • Reynolds, C. (1989 2e.). Compensation of Overseas Personnel. In Famularo, Handbook of Human Resource Administration. McGraw-Hill.

  • Ronen, et al. (1985). Clustering Countries on Attitudinal Dimensions: A Review and Synthesis. Academy of Management Review, 10(3), pp. 449.

  • Skinner, B. F. (1968). The Technology of Teaching, (pp.84). New York: Appleton-Century-Crofts.

  • Townsend, Scott, Markham. (1990). 4th Quarter. Journal of International Business Studies, pp. 67-78.

  • Vroom. (1964). Work and Motivation, (pp. 331). New York: Wiley.

  • Werner, S. (2002). Recent Developments in International Management Research: A Review of 20 Top Management Journals. Journal of Management, 28(3), pp. 277-305.


Abstract Views: 678

PDF Views: 0




  • Cross Cultural Dimension of Compensation Management: Global Perspectives

Abstract Views: 678  |  PDF Views: 0

Authors

R. K. Mishra
Senior Professor and Director, Institute of Public Enterprise, Hyderabad, India
Punam Singh
Assistant Professor, Institute of Public Enterprise, Hyderabad, India
Shulagna Sarkar
Assistant Professor, Institute of Public Enterprise, Hyderabad, India

Abstract


With the advent of globalization, companies have realized the need to operate transnational and mark their footsteps across the world. The rise in frequent cross-nation transaction and operation has lead companies to focus on people centric approaches. Cross cultural issues have acted as hindrances in the performance of the organizations. Thus, there is a huge scope for companies to focus on HR approaches which act as a solution to numerous cross cultural issues. One such area which requires close attention of HR professionals is the 'Compensation Management'. While developing the global compensation and benefit composition, HR must deal with many factors that are not present in a domestic environment. In this paper, it is attempted to discuss about some of those factors that unswervingly impacts global compensation and benefits strategies. The paper identifies the factors affecting international compensation management and discusses the role of culture in developing compensation strategies.

Keywords


Expatriate Pay, Compensation Management, Cross-Culture, International Compensation

References