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    Centralization and effectiveness of reward management in multinational enterprises - Perceptions of HQ and subsidiary reward managers

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    Publication type
    Journal article with impact factor
    Author
    Tekieli, Michael
    Festing, Marion
    Baeten, Xavier
    Publication Year
    2018
    Journal
    Journal of Personnel Psychology
    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.
    Keyword
    Global Reward Management, Centralization, Effectiveness, Social Identity Theory, Perceptions
    Knowledge Domain/Industry
    Entrepreneurship
    DOI
    10.1027/1866-5888/a000195
    URI
    http://hdl.handle.net/20.500.12127/6000
    ae974a485f413a2113503eed53cd6c53
    10.1027/1866-5888/a000195
    Scopus Count
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