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The impact of cultural dimensions on sales force compensation

Author

Listed:
  • Dominique Rouzies

    (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique)

  • Michael Segalla

    (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique)

  • Madeleine Besson

    (IMT-BS - MMS - Département Management, Marketing et Stratégie - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], TEM Research - TEM - Télécom Ecole de Management)

Abstract

Financial compensation has long been held as the primary motivator of salespeople. Motivation however may be achieved differently in various countries, as the large disparities in pay schemes across countries seem to indicate. In this paper, the authors explore the impact of cultural dimensions on sales force compensation structures. Using data collected from financial companies of three European countries, they (1) assess transnational cultural profiles of managers (i.e., market, group-centric and hybrid), (2) confirm discrepancies in terms of managerial preferences for compensation structures and (3) uncover associated rationales such as rejection of incentive compensation due to its perceived immorality. The results indicate that cultural dimensions explain managers choice for (1) the use of incentive pay in the compensation package (i.e., fixed versus variable compensation) as well as (2) the basis for its allocation (i.e., individual versus group). The authors conclude by discussing the implications of their research for designing compensation plans in the global market place.

Suggested Citation

  • Dominique Rouzies & Michael Segalla & Madeleine Besson, 1999. "The impact of cultural dimensions on sales force compensation," Working Papers hal-00598178, HAL.
    • Handle: RePEc:hal:wpaper:hal-00598178
    as

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