Differential Responses to Managerial Incentives among Workers: Case Study

Abstract

There is a considerable interest and debate over the effectiveness of Managerial Incentives (MI). This paper examines the impact of sub-culture on preferences of managerial incentives. The purpose is to investigate the popular assumption that cultural differences exist at this level, and to see whether these differences have an impact on MI’s effectiveness. An experimental design is used to test a series of hypotheses based on a sample of Indian and Egyptian employees. It has found that despite the existence of cultural differences at an ethnic level, culture does not appear to have a significant impact on the employee responses to MI. Finally, the study also provides further evidence that validates a scale used for the measurement of culture.