Centralization and effectiveness of reward management in multinational enterprises - Perceptions of HQ and subsidiary reward managers
Publication type
Journal article with impact factorPublication Year
2018Journal
Journal of Personnel PsychologyPublication Volume
17Publication Issue
2Publication Begin page
55Publication End page
65
Metadata
Show full item recordAbstract
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, PerceptionsKnowledge Domain/Industry
Entrepreneurshipae974a485f413a2113503eed53cd6c53
10.1027/1866-5888/a000195