Which of the following statements is TRUE?
A) Organizations operating in China cannot use individual pay-for-performance because it violates cultural norms of equal treatment.
B) Global firms can use pay-for-performance systems if the organization has the same competitive strategy in each country in which it operates.
C) Variable pay systems are unpopular in Europe because the culture values stability and predictability in compensation systems.
D) Global firms can use incentive systems if they are adapted to appropriate goals in different geographic regions.

Question

Quizplus · Accepted Answer

This statement is the only one that correctly reflects the importance of adapting incentive systems to different geographic regions. While individual pay-for-performance may not be appropriate in some cultures, it is not necessarily true for all organizations operating in China. Similarly, there is no evidence to suggest that variable pay systems are unpopular in Europe, as this may vary by country or industry. The key to successful implementation of incentive systems in a global context is to ensure that they are tailored to local goals and cultural norms.

Which of the Following Statements Is TRUE