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Organizations worldwide are faced with the challenge of motivating and retaining employees. In addressing this challenge, organizations may use a variety of incentive pay practices to align employee behavior with organizational objectives. The purpose of this paper is to empirically identify the incentive pay practice configurations or bundles adopted by private sector firms across 14 different countries from several geographic regions. The patterns of incentive pay configuration adoption for each country are evaluated.

Cluster analysis, ANOVA, and multilevel random-intercept logistic modeling are utilized on firms from the 2009 CRANET HRM survey.

Phase I of this study empirically identifies four different configurations (contingent rewarder, incentive minimizer, incentive maximizer, and profit rewarder) derived from three incentive pay practices (individual bonus, team bonus, and profit sharing practices) that firms adopt. Phase II evaluates adoption rates by country and finds striking differences in incentive configurations that firms avoid or adopt. Some countries have clear adoption preferences (e.g. Denmark, Sweden, Japan, and France). In other countries firms employ a variety of incentive bundles (e.g. USA, UK, and Germany) and seem to be less constrained by country-based institutional factors.

Incentive practices are typically studied independent of the configuration of practices that firms select. This research helps us understand the typical bundles in use.

Organizations worldwide are faced with the need to motivate employees. This research maps the incentive bundles preferred in each of 14 countries.

Employees in different countries come to work with expectations about pay and these shape their perceptions of incentive fairness.

Research on incentives has tended to focus independently on specific practices and ignore the reality that organizations generally select multiple practices. This research identifies the combinations of incentive practices generally used and does so with firms from 14 countries from various world regions. These results also offer a map of the incentive bundles preferred in each country.

The purpose of this paper is to investigate the influence of national culture on the adoption of four different incentive pay bundles (incentive maximizer, contingent rewarder, profit rewarder, and incentive minimizer) using GLOBE national culture dimensions in 14 countries. It uses incentive pay bundles derived by Prince et al. (2016).

The study adopted multilevel random-intercept logistic modeling using firm incentive practice usage from the CRANET database and country culture scores from the GLOBE study.

Evidence suggests that in-group collectivism is associated with increased use of the incentive maximizer approach, in which firms use a combination of high levels of individual, team, and profit sharing incentives, and decreased use of the incentive minimizer approach (where firms minimally employ incentives) and the individual and team bonus focused contingent rewarder configuration. Higher uncertainty avoidance is linked to increased use of the profit rewarder approach (where only profit sharing is emphasized) and decreased use of the contingent rewarder approach. Performance-orientation cultures appear to support using the incentive maximizer and avoiding the incentive minimizer bundles.

This study investigates incentive practice bundles that firms use verses separate analysis of practices and use the GLOBE culture metrics. It utilizes multilevel modeling, which has been lacking in past studies of culture and incentives.

Examines the reward structures used by private-sector firms in different locations.

Analyzes the prevailing incentive pay practice configurations in 14 countries over four continents. Investigates the extent to which local factors constrain firms’ use of personal and team bonuses or profit-sharing.

“When in Rome, do as the Romans do” – an old saying but still relevant for the growing number of firms operating in several countries. A well-thought-out incentive scheme encourages employees to think and act in ways that support company objectives. But people in different places can have different ideas about what is fair and appropriate. Human resource professionals have to decide whether to follow the local norms or to introduce the firm’s established practices – and an informed decision can make the difference between having a motivated workforce or making an expensive mistake.

Observes that organizations in some countries show a strong preference for a particular bundle of incentive options. Warns that introducing a different approach may prove counter-productive unless combined with a careful process of change management.

Highlights the importance of institutional context and social norms in determining the incentive pay configurations adopted in different countries.

Provides an international guide to prevailing patterns of incentive payment adoption. Shows that external constraints specific to individual countries can have a significant impact on the flexibility of incentive system design.

This case study examines how incentive pay programs are designed and changed over time in a financial organization that has typically relied on fixed salary compensation. Once incentive programs are introduced, pay plans change frequently, and this process allows the study of assumptions embedded in various incentive theories. Economic theories tend to explain incentives from an agency perspective, which suggests that incentives satisfy elaborate contractual requirements and vary with the risk preferences and costs of managers versus employees. Power theories, by contrast, argue that the interests and resources of various firm groups determine incentive structures. For this case study, qualitative data describing a firm’s process of changing compensation were gathered from documents, personnel manuals, and interviews with company managers. The findings suggest that instead of following from complicated cost‐benefit analyses, pay plans are often implemented within short time frames and with scant performance/effectiveness information. This evidence highlights the influence of power in efforts to change compensation structures and the importance of a multidisciplinary understanding of rewards.

The purpose of this paper is to provide a comprehensive review and critique of what we already know about pay systems in Chinese state‐owned enterprises, to identify the gaps in the literature and to stimulate more research in this area.

The paper first describes the policy issues at the macro‐level (government policies) in order to put micro‐level pay practices in a pertinent context. Then the paper provides a detailed review and critique on current empirical studies on pay practices in Chinese enterprises, their antecedents and consequences. Finally, the paper identifies potential research questions and provides some directions for future research.

The paper concludes from the extensive review of the current literature that the following research areas merit attention: Why do some firms pay their employees more than other firms? Why do we observe different types of internal pay structures among firms? What are the consequences of these different structures? Why is the link between pay and performance weak in some firms but strong in others? Under what conditions pay‐for‐performance enhances firm performance?

The paper is one of the most comprehensive reviews of the literature on compensation practices of Chinese companies.

The purpose of this study is to investigate the link between top management team (TMT) gender diversity and firm risk-taking in hospitality companies. The study also links female leadership to risk-taking. Finally, this study examines the moderating effects of TMT incentive pay and TMT age on the relationship between TMT gender diversity and firm risk-taking.

This study uses an unbalanced data set of 81 hospitality firms and 888 firm-year observations over the period of 1992–2020. The study uses fixed-effects regression estimation for primary analyses and addresses potential endogeneity concerns via two-stage least square regression with firm fixed-effects instrumental variable regression. Risk-taking is measured by total firm risk (i.e. the annualized volatility of daily stock returns). Main results are supported with alternative measures of firm risk and estimation methods.

The study finds that increasing TMT gender diversity leads to a reduction in firm risk-taking in the hospitality industry. Moreover, the study finds that hospitality firms led by a female CEO experience lower firm risk compared to firms led by a male CEO. Finally, the study finds evidence that the relationship between TMT gender diversity and firm risk is contingent on the level of incentive pay awarded to TMT members and the age of TMT members. Increasing incentive pay and aging executive teams decrease the risk reduction effect of TMT gender diversity.

The findings of this study recommend that firm risk-taking in the hospitality industry is related to gender diversity in TMTs. Hence, the board of directors should pay attention to gender composition for executive positions for risk management. Moreover, the results also suggest that care should be exercised when using incentive pay to align the interests of managers and shareholders. Finally, the board of directors needs to consider both gender diversity and age of the TMT members for TMT composition to manage executives’ risk-taking behavior.

This study fills a research gap in the hospitality literature by providing empirical evidence for the link between TMT gender diversity and firm risk-taking. Additionally, the study introduces incentive pay and age of TMT as contingency factors for the link between TMT gender diversity and firm risk-taking.

The purpose of this research is to examine the relationship of perceptions of organizational justice on the ranking of candidates for incentive bonuses and the impact of organizational culture on these perceptions.

A questionnaire was developed which asked respondents to rank a set of seven candidates for a sales bonus based on deservingness for the bonus. Descriptions of the candidates included information not only on whether they achieved a pre-established metric for the bonus, but on how they achieved (or failed to achieve) the metric. Hypotheses related compliance with norms of organizational justice, both by candidates and the organization, to candidate rank. The survey was administered to a sample of 204 employees of business organizations at all levels obtained through a survey research firm, as well as a sample of 52 employees of organizations in the Christian publishing industry. Nonparametric statistics were used to analyze the results. A comparison was made between the respondents sourced through the research firm, seen as representing the general population and those from the Christian-oriented group.

Hypotheses that respondents will seek to punish violators of justice norms, reward compliers and compensate victims of organizational unfairness were generally supported. More interesting were differences between the groups of respondents from the general population and the group representing Christian-based firms.

This article reveals the impact of organizational culture on the acceptance of incentive systems. The research employed a practitioner survey, rather than more common experimental approach.

The purpose of this paper is to discuss diverse matters concerning the field of Participation and Employee Ownership (PEO) coinciding with the launch of the JPEO.

This paper used mixed methods including bibliometric analysis.

Significant gaps exist in our knowledge of the scope and nature of PEO. Citation counts illustrate both the changing composition of research within PEO and faster relative growth than terms used to describe related fields such as labor unions and trade unions. Based on manually collected citation data I identify the most highly cited studies within PEO. Few of these studies attain a “home-run” citation count. However, PEO scholars are cited 19 percent more than economists in top 30 schools and the median C5 (total citations for the author’s five most highly cited papers) is more than 260 percent of the median for economists in “top 30” institutions. There is also some weak evidence that the citation bias in economics against female scholars is not as marked in PEO as elsewhere. A qualitative assessment of PEO studies suggests markedly uneven progress in empirical work across types of PEO.

No similar review has been done before.

The purpose of this paper is to examine the impact of human resource management (HRM) practices on the market performance of manufacturing industries in Bangladesh. As one of the pioneer studies, it is hoped that this research will convince organizations that by adopting systematic and efficient HRM practices, they will achieve competitive advantages.

A quantitative survey was used to gather data from publicly listed, large manufacturing companies in Bangladesh. Modified questionnaires were used to measure the adoption of HRM practices and the perceived market performance of the organizations. The statistical programme, SPSS, was used to analyse and interpret the results.

The study revealed that HRM practices have a positive impact on organizations’ market performance. However, among different HRM practices, the performance appraisal seems to have the highest impact. Among the others, employee training and development, and the compensation practices were shown to have higher positive impacts than recruitment and selection practices.

The paper concludes that in order to improve their competitiveness and gain competitive advantages, business organizations in Bangladesh need to adopt systematic HRM practices. The paper's findings will encourage the next generation of business entrepreneurs to develop systematic HRM practices and corporate management culture in Bangladesh.

The paper validates the effectiveness of the US and European developed HRM practices in an Eastern developing country context. This is one of the pioneer studies which followed methodological rigor to validate the much discussed HRM‐performance relationship in Bangladesh.

This paper reports on empirical work recently conducted about the use and effectiveness of HRM practices in small and medium sized enterprises (SMEs). A telephone survey was conducted with 100 senior managers of SMEs to ascertain their use of a range of human resource practices and the extent to which they had found those practices successful in aiding the achievement of company objectives. Additionally in‐depth interviews were conducted with senior managers from a further 22 SMEs. Findings suggest that there is considerable diversity amongst SMEs in relation to their use of HR practices. A model is provided that identifies the key criteria that underlie the adoption of HRM practices, and the implications of the model are discussed.