Compensation Strategies' Effects on Corporations in a Global Context: a Study on Compensation Strategies and Their Effects on Corporations in a Global Context

These days, as corporations are seeking global opportunities, how to motivate employees from different cultures, who have different values, needs, and norms, is becoming increasingly important. This study first dealt with the relationship between national culture and the prevalence of various reward practices. Secondly, this study examined the link between reward practices and organizational performance in different national cultures. In analyzing, this study picked up seven countries and used Hofstede?s four cultural dimension scores to examine the prevalence of reward practices. Also, to examine the effects of national culture on reward practices and organizational performance, multiple regression analysis was conducted. The findings of this study suggest that although national culture can play an important role in some reward practices, it is not the only factor to be considered in establishing compensation strategies abroad. That is, not only national culture but also other contextual factors, such as institutional factors, should also be considered as moderating variables when HRM managers build compensation strategies.