Collectivism and goal orientation as mediators of the effect of national identity on merit pay decisions

Abstract

Individual learning and performance goal orientations and collectivism are investigated as mediators of the relationship between national identity and merit pay allocation decisions. In a scenario-based study, a total of 563 English-speaking participants (168 United States, 212 Singaporeans and 192 Indonesians) completed questionnaires and allocated merit pay bonuses ranging from 0 to 20 per cent of base pay to four hypothetical high- and low-performing employees. General linear modelling was used to test the proposed mediational model. Results demonstrate that the effects of national identity on merit pay allocations are at least partially mediated by individual collectivism and goal orientations. Findings highlight the need for multinational organizations to be sensitive to differences in the orientations and values of employees across countries and to be cognizant of their role in merit pay decision making.

Keywords:

• Merit pay
• compensation
• goal orientation
• collectivism

Notes

Dr Stanley Gully, School of Management and Labor Relations, 203 Janice Levin Building, Department of Human Resource Management, Rutgers University, Piscataway, NJ 08854 8054, USA (tel: [phone]; fax: [phone]; e-mail: [email protected]).