Culture and compensation—unpicking the intricate relationship between reward and organizational culture

Abstract

Abstract Interest in culture and reward came to public attention during the banking crisis. This article builds a framework for further research on the linkages between reward systems and organizational culture. From European viewpoints, there is interest in applying social frameworks to reward systems, complementing economic and psychological perspectives. The theoretical complexity of culture could be a barrier to research but, it is argued, Martin's (2002) three perspectives and Hatch's (1993) cultural dynamics model provide sound foundations. For reward practitioners, the main message may be to spend as much time evaluating how reward plans are received as in designing perfect plans. © 2010 Wiley Periodicals, Inc.