Compensation Management

Some schools of thought believe that National Culture is a more important influence on compensation systems than Organizational Culture. I couldnt agree more. Prof. Hofstede, a recognized scholar, also shares the same views as expressed in his Five Cultural Dimensions (power distance index, uncertainty avoidance, individualism, masculinity, and, long term orientation) He describes National culture as the collective programming of the mind which distinguishes the members of one group or category of people from those of another.  (G. Hofstede). I feel compensation systems that reinforce or reflect established cultural values of a country or nation is likely to be easily embraceable and generate higher performance in employees. For emphasis, Culture - which is the attitudes and behavior characteristic of a particular social group or organization - if trampled upon in an attempt to superimpose organizational culture will do the opposite of motivate or compensate employees who are more or less the lifeblood of a company.

A number of human resource practices and employee compensation systems have specific characteristic related to specific countries. The following examples offer insights to how national culture takes preeminence over organizational culture with regard to employee compensation
In a country like Japan for example, a closer look at their national culture reveals that employees are more likely to demonstrate the highest standards of work ethic and enthusiasm if the employee compensation system in effect in an organization includes the employment for life program.
In the USA, employees are less likely to expect or be moved by employment for life programs, basically because its not in the American culture or doesnt form part of their believe system. Instead, to effectively compensate American employees, a companys compensation plan must include a robust remuneration scheme that ties basic salary to performance bonuses, stock options, and health insurance.

French employees can do anything in exchange for vacation or leisure except work more of course So an employment remuneration program that has an excellent vacation plan will encourage the staffs to work tirelessly in anticipation.    

In the UK, what employees value most or considers as appropriate compensation is not ample time for leisure. Instead, hourly monetary compensation for work done is more like it. If they can survive working round the clock and get paid by the hour doing it, then so be it.

From a Christian viewpoint, just like the cultures of a nation influence how its people will expect to be compensated by an organization, so does Christians look to their leader, Jesus Christ, for their reward (in this case everlasting life) for the works they have been tasked to do here on earth.

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