Business Management and Entrepreneurship (BUSI118)
Class notes
International Management Compensation Revision
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Course
Business Management and Entrepreneurship (BUSI118)
Institution
Nottingham Trent University (NTU)
Perfect for international business students. In-depth analysis of key theories and subjects regarding the reward and compensation management strategies across different nations/cultures.
Business Management and Entrepreneurship (BUSI118)
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Key sources
Brewster 2016 – 10.6
A SHRM Perspective on International
Compensation and Reward Systems (Bloom &
Milkovich)
International HRM: contemporary issues in
Europe (Brewster & Harris 1999)
Performance based rewards and innovative behaviours (Sanders et al 2018)
Key theories
Situational strength theory (Meyer et al 2010)
Situational strength theory posits that situations that provide more
information about expected behaviors (i.e., stronger situations) yield
greater compliance with the prescribed behavior pattern, relative to
weaker situations (Meyer et al., 2010; Mischel, 1977).
Critique of this theory - Yang (2015) explains that work environments that
promote autonomy stimulate creativity. Amabile (1995) used the
componential theory of creativity framework to show how individual
creativity leads to innovation. If employees are placed in a rigid HRM
system that gives too much supervision and instruction, employees will
have less freedom to think of their own ways to succeed in their role,
therefore reducing the perceived autonomy. This would negatively effect
the stimulation of creativity, which would likely negatively effect
innovation within the organisation.
Cultural duality framework (Bento & Ferreria 1992)
Critique of this theory – it can be argued that cultures are too complex to be defined by a
set of defined spectrums. The factors of the culture duality framework are not enough to
explain variances between cultures not only due to the oresence of other factors not in
the framework, but also variances between sub-cultures within a nation. An example is a
comparative study by Ramamoorthy (2019)managers in China and Tanzania showed
variation in internal attribution to employees, despite both cultures being collectivist.
, Another critique - Anwar and Chaker (2003) observed that organisational
groups in the UAE consider themselves as communities in their own
right with group connections being highly valued. They further
suggested that individualism or collectivism is a personal trait
regardless of the individualistic or collectivistic culture to which
individuals belong
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