In order to understand the importance of culturally appropriate reward systems, it’s necessary to understand the connection between rewards and motivation. Motivation is what compels or induces an individual to do what they do. Maslow’s hierarchy of needs is a good example of the factors which motivate people. What is questionable is how Maslow’s hierarchy applies cross-culturally (Deresky, 2014). How Maslow’s hierarchy translates in other cultures will affect how managers are able to use different methods to motivate employees.
One method of motivation is to use incentives and rewards (Deresky, 2014). However, like any other motivational method employed, the cultural context must be considered. A good manager will avoid ethnocentrism when considering ways of motivating employees – in other words, they will avoid projecting their own beliefs regarding goals, motivations, and habits and not “make negative value judgments about a person’s level of motivation because it differs from their own” (Deresky, 2014, p. 339).
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Therefore, in order for an organization to use a reward system effectively it must consider the cultural element to identify culturally appropriate. Rewards tend to fall in one of the following categories: financial, social status, job content, career, and professional (Deresky, 2014). For Americans, monetary rewards or forms of recognition like plaques for individuals would be culturally acceptable. In Japan, “reward systems are based primarily on seniority, and much emphasis is put on the bonus system” and focuses more on groups and group output (Deresky, 2014, p. 340).
Reward systems in Taiwan derive from the Taiwanese emphasis on recognition and affection, which often results in company departments vying “for praise from top management at their annual celebration” (Deresky, 2014, p. 340). In other words, to appeal to those aspects which most appeal to specific cultures, managers need to be culturally sensitive and use those elements that would be most effective.
- Deresky, H. (2014). International management: Managing across borders and cultures. Upper
Saddle River, New Jersey: Pearson Education, Inc.
