Effects Culture and Local Practices

Global organizations make a huge investment in payroll and employee benefits. Among the efforts by employers is the development of total rewards system. The effectiveness of such programs is affected by differences in the culture between different nations where multinational organizations operate, indicating the need to provide customized solutions. Culture is defined as a collective programming of the mind that is unique to the members of a certain group. Culture defines a system of norms and values that members of the specific group collectively hold as important (Hofstede & Hofstede, 2005). Consistently, we discuss how culture and local practices affect the motivational aspect of an employer seeking to achieve a total rewards system in a globalized organization.

Among the cultural dimension that affects the motivational aspect of an employer is the differences in individualism and collectivism dimensions. These dimensions affect the nature of rewards and their interpretation. In individualistic societies, people tend to work hard with a personal motive for improving performance due to the personal credit that they might achieve. On the other hand, collectivistic societies have individuals who strive hard to attain achievements of the group (Kanan, 2014). This affects the methods and systems that an employer can use in measuring and tracking the performance of the employees because each cultural orientation has unique needs.

Another cultural dimension as described by Hofstede encompasses masculinity and femininity of the culture. This affects what the employer includes as the components for the total rewards systems. In societies that are considered as feminine, factors that are valued include quality of life and employees’ attitudes towards their work and workplace environment. In the masculine societies, men are expected to be domineering, which affects the rewards system of an organization in terms of positions. Other societies will have little difference in what is regarded as masculine or feminine (Flisak & Bjerkhage, 2015). The employer’s motivation in creating a total reward system is thus, greatly affected by the need to balance the masculine/feminine dimension of culture and avoiding gender-based discrimination.

References

Flisak, D., & Bjerkhage, T. (2015). How culture affects the motivation of employees. A study in differences motivation between Swedish and Chinese employees. Gothenburg University  Publications University Archive. Retrieved from: https://gupea.ub.gu.se/bitstream/2077/39667/1/gupea_2077_39667_1.pdf

Hofstede, G., & Hofstede, G. J . (2004). Cultures and Organizations Software of the Mind. Blacklick: McGraw-Hill, New York.

Kanan, R. (2014). The impact of cultural differences on the basis of rewards-an empirical analysis of Anglo-American and Libyan companies operating in Libyan oil sector. The Business & Management Review, 4(3), 32-42.