Understanding cultural influence on perceptions of target-based pay

This book examines cultural influences on employees' perceptions of target-based pay. As the positive effect of this instrument can only be expected when the employees perceive individual benefits, this research focuses specifically on cultural influences on employees' perceptions of target-based pay. Based on the findings of the literature review, the influence factors on employees' perceptions of target-based pay, as defined by previous researchers, were mapped with Hofstede's VSM framework. During the verification of the findings of the literature review, through discussions with a practitioner expert panel, a further cultural factor "general pay perception" was added to the original form of Hofstede's model. A survey was then designed to examine the influence of the cultural factors on the employees' perceptions of target-based pay in a multi-national manufacturing SME with subsidiaries in Germany, the Czech Republic and China. This research makes a contribution to knowledge by developing a methodology for the study of cultural influence on perceptions of target-based pay and by providing valuable real-world data for future research.