A Multi-Cultural Study of Salespeople's Behavior In Individual Pay-For-Performance Compensation Systems: When Managers Are More Equal And Less Fair Than Others

In this research, we examine salespeople's behavior in individual pay-for-performance compensation systems and show how perceived management fairness seems to energize sales employees in some environments but not in others. We use a large multicountry database of individual-level remuneration f...

Full description

Saved in:
Bibliographic Details
Published inThe Journal of personal selling & sales management Vol. 37; no. 3; pp. 198 - 212
Main Authors Rouziès, Dominique, Onyemah, Vincent, Iacobucci, Dawn
Format Journal Article
LanguageEnglish
Published Abingdon Routledge 03.07.2017
Taylor & Francis, Ltd
Taylor & Francis Ltd
Subjects
Compensation
culture
fairness
financial incentives
international compensation
Pay for performance
Perceptions
Salespeople
Online AccessGet full text

Cover

More Information
Summary:In this research, we examine salespeople's behavior in individual pay-for-performance compensation systems and show how perceived management fairness seems to energize sales employees in some environments but not in others. We use a large multicountry database of individual-level remuneration for more than 2,500 salespeople across four B2B industry sectors to demonstrate cultural adaptations of the effect of perceived management fairness. The results indicate that top management should be concerned with employees' perceptions of fairness in addition to the more typical concerns of control and motivation widely acknowledged in the microeconomics-based sales-force compensation literature. In particular, we show that perceptions of management fairness are key to salespeople's proportion of total pay generated by pay-for-performance formulas.
ISSN:0885-3134
1557-7813
DOI:10.1080/08853134.2017.1337519