Incentive Preferences of Employees in Germany and the USA: An Empirical Investigation
This study investigates performance reward preferences of employees in Germany and the USA. The investigation uses 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 Incentive Schemes as motivational devices in organizations. Our empirical investigation is based upon survey data collected from employees of a MNC in Germany and the USA using an enriched form of Hofstede?s cross-cultural questionnaire. Our results show that employees from these countries have different preferences on incentives and further that incentive plans designed for one country might have non-motivating consequences in the other. We also find that the logic of diminishing marginal utility applies to certain rewards. Referencing these results, we suggest a method for organizations to develop effective and efficient incentive systems.
Volume (Year): 16 (2005)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.hampp-verlag.de/|
|Order Information:|| Postal: Rainer Hampp Verlag, Marktplatz 5, 86415 Mering, Germany|
Web: http://www.hampp-verlag.de/ Email:
When requesting a correction, please mention this item's handle: RePEc:rai:mamere:1861-9908_mrev_2005_01_rehu. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rainer Hampp)
If references are entirely missing, you can add them using this form.