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Cross Cultural Dimension of Compensation Management: Global Perspectives

Journal of Strategic Human Resource Management

Volume 1 Issue 2

Published: 2012
Author(s) Name: R. K. Mishra, Punam Singh, Shulagna Sarkar
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With the advent of globalization, companies have realized the need to operate transnational and mark their footsteps across the world. The rise in frequent cross-nation transaction and operation has lead companies to focus on people centric approaches. Cross cultural issues have acted as hindrances in the performance of the organizations. Thus, there is a huge scope for companies to focus on HR approaches which act as a solution to numerous cross cultural issues. One such area which requires close attention of HR professionals is the ‘Compensation Management’. While developing the global compensation and benefit composition, HR must deal with many factors that are not present in a domestic environment. In this paper, it is attempted to discuss about some of those factors that unswervingly impacts global compensation and benefits strategies. The paper identifies the factors affecting international compensation management and discusses the role of culture in developing compensation strategies.

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