L5b_Chiang&Birtch (2007): The transferability of management practices: Examining cross-national differences in reward preferences.

Question 1

main premise of the paper?

Answer 1

do preferences for reward types / systems / criterion etc. differ in different countries / cultures?

Question 2

what 4 dimensions by Hofstede were looked at?

Answer 2

• masculinity / femininity
• individualism / collectivism
• uncertainty avoidance (UA)
• power distance (PD)

Question 3

pay preferences: masc - fem

Answer 3

masc:
- performance-based rewards, personal achievements

fem:
- sensitive to pay inequality, emphasis on relationships

Question 4

pay preferences: individualism - collectivism

Answer 4

individ. :
- driven by self interest,
- equity-based reward system (max. personal gain)

collect. :
- loyalty, seniority, harmony are important
- non-performance factors (eg. relationships) should be included in rewards

Question 5

pay preferences: uncertainty avoidance (UA)

Answer 5

strong UA:
- fixed salary base

weak UA:

• performance-based pay
• incentive rewards

Question 6

pay preferences: power distance (PD)

Answer 6

low PD:

• intrinsic, supportive rewards
• performance-based, equity-based rewards

high PD:
- seniority plays a big role (the higher you are, the more you earn)

Question 7

findings of the study

Answer 7

cross-cultural differences do exists, but they are more complex than they thought (mixed results)
-> companies should look closely at country-specific pay preferences