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Seminar:How National Culture Moderates the Influence of Pay for Individual Performance on the Financial Performance of Multinational Enterprises

Topic :How National Culture Moderates the Influence of Pay for Individual Performance on the Financial Performance of Multinational Enterprises

Speaker :Richard Posthuma (Professor, University of Texas at El Paso)

Time:Friday, 2:30-4:00pm , June 23th , 2017

Venue :WANGDAO HAN CONFERENCE ROOM, LINGNAN HALL

Language :Chinese/English

 

Abstract :

This study examines the effectiveness of Pay for Individual Performance (PFIP) in companies operating in multiple cultures. Using data from 308 multinational enterprises (MNEs) we tested hypotheses regarding the moderating influence of 9 dimensions of the GLOBE country culture model on the relationship between PFIP and changes in MNE financial performance over time.  Employees reported the extent their MNE employers used PFIP and other High Performance Work Practices (HPWPs). These data were matched at the firm level to changes in Net Income per Employee derived from Wharton Data Research Service (WDRS).  After controlling for country GDP per capita, country unemployment rate, firm size, and industry, the data indicated that the positive relationship between PFIP and MNE Performance can be enhanced in cultures that have higher Future Orientation, In-group and Institutional Collectivism, and Uncertainty Avoidance; and also lower Power Distance and Humane Orientation. Implications for future research and practice are provided.

 

About the speaker :

Dr. Richard A. Posthuma is a Professor of Management. He earned his Master's degree in Labor and Industrial Relations from Michigan State University in 1977; his J.D., cum laude, from Thomas M. Cooley Law School in 1992; and his Ph.D. from the Krannert Graduate School of Management at Purdue University in 1999. He has worked for many years in Human Resource Management, Labor Relations, and Law in both the private and public sectors in union and nonunion settings. His teaching interests include Human Resource Management, Negotiation, Employee Relations, and Employment Law. He conducts and publishes research in both domestic and international settings related to employee staffing (recruiting, selection, and turnover), conflict management, and legal institutions.

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