Centralization and effectiveness of reward management in multinational enterprises - Perceptions of HQ and subsidiary reward managers
Tekieli, Michael ; Festing, Marion ; Baeten, Xavier
Tekieli, Michael
Festing, Marion
Baeten, Xavier
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Publication Type
Journal article with impact factor
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Supervisor
Publication Year
2018
Journal
Journal of Personnel Psychology
Book
Publication Volume
17
Publication Issue
2
Publication Begin page
55
Publication End page
65
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Abstract
Based on responses from 158 reward managers located at the headquarters or subsidiaries of multinational enterprises, the present study examines the relationship between the centralization of reward management decision making and its perceived effectiveness in multinational enterprises. Our results show that headquarters managers perceive a centralized approach as being more effective, while for subsidiary managers this relationship is moderated by the manager’s role identity. Referring to social identity theory, the present study enriches the standardization versus localization debate through a new perspective focusing on psychological processes, thereby indicating the importance of in-group favoritism in headquarters and the influence of subsidiary managers’ role identities on reward management decision making.
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Keywords
Global Reward Management, Centralization, Effectiveness, Social Identity Theory, Perceptions