Individual pay for performance in Spain: Cognitive sociology and the subsidiary insider perspective

Abstract

This article examines how individual pay for performance is interpreted, predominantly by nonmanagerial employees, within the European context, at three subsidiaries of one U.S. multinational corporation in Spain. The study reveals how two levels of the cognitive socialization process color the lens through which employees view pay for performance and reveals how subsidiary founding, politics of resistance, and host‐country effects impact the implementation of the practice. Contrary to past studies in the literature, the study discovered a large number of nonmanagerial employees with a positive interpretation of pay for performance due to the influence of pre‐existing organizational cultural experiences. © 2010 Wiley Periodicals, Inc.

The Informal Organization of Korean Companies: Implications for Korean MNCs

“…Employees’ perceptions of their deserving respectful treatment are a key component in fairness evaluations (Heuer, Blumenthal, Douglas, & Weinblatt, ). In looking at issues relating to employee perceptions, Drape, Quintanilla, and Green () find that positive interpretation of tangible reward such as pay for performance is influenced by preexisting organizational cultural experiences. The procedural rules include process control or voice where procedures allow for expression of opinions (Thibault & Walker, ) as well as social sensitivity and justification by information (Bies & Moag, ).…”