CHINESE AND AMERICAN MANAGERS' COMPENSATION AWARD DECISIONS: A COMPARATIVE POLICY‐CAPTURING STUDY

Abstract

Using a policy‐capturing approach, in this study we examined the extent to which 4 variables (work performance, relationship with coworkers, relationship with managers, and personal needs) affect the process through which Chinese and American managers make 2 types of compensation award decisions (bonus amounts and nonmonetary recognition). Results showed that, compared with their American counterparts, Chinese managers (a) put less emphasis on work performance when making bonus decisions; (b) put more emphasis on relationship with coworkers when making nonmonetary decisions; (c) put more emphasis on relationship with managers when making nonmonetary award decisions; and (d) put more emphasis on personal needs when making bonus decisions. We discussed the implications of these results for future research and practice.