A comparison of Russian and U.S. pay allocation decisions, distributive justice judgments, and productivity under different payment conditions
This article reports the results of two studies of pay-related attitudes and behaviors of Russian and U.S. managers and students. In a pay allocation role play, managers in both countries place primary emphasis on individual performance (equity) and secondary emphasis on coworker relations and equality. In addition, Russian managerial subjects utilized need in their pay allocations. In a series of experiments, both Russian and U.S. students preferred the equity rule, although there were no productivity effects across different allocation rules. Procedural justice effects were also observed. Implications for pay practices are examined.
Efforts to transform Eastern Europe to a free market economy have led to calls for assistance from the West in the design of managerial practices (McNulty, 1992; Shama, 1993). In particular, there has been a strong push for wage reform that more closely links pay to productivity and emulates the wage systems of Western free-market economies (Shcherbakov, 1991). However, there has been little basic research regarding the transferability of Western managerial practices (GomezMejia & Welbourne, 1994). Recent studies indicate that there are crosscultural differences in what is perceived as fair (Kotabe, Dubinsky, & Lim, 1992), what is valued (Adler, 1986) and what motivates workers (Boyacigiller & Adler, 1991). Western pay practices are of particular concern because they may collide with collectivist cultures of countries such as Russia (Hofstede, 1993; Puffer & Shekshnia, 1994; 1996; Shcherbakov, 1991). Failure to recognize the values of the culture for which pay systems are designed could ultimately lead to employee resistance and ineffectiveness (Beatty, McCune, & Beatty, 1988).
This study compares Russian and U.S. pay allocation decisions, distributive justice judgments and productivity under various pay distribution rules. Procedural justice effects are also examined. The theoretical basis for our work is derived from an
Efforts to transform Eastern Europe to a free market economy have led to calls for assistance from the West in the design of managerial practices (McNulty, 1992; Shama, 1993). In particular, there has been a strong push for wage reform that more closely links pay to productivity and emulates the wage systems of Western free-market economies (Shcherbakov, 1991). However, there has been little basic research regarding the transferability of Western managerial practices (GomezMejia & Welbourne, 1994). Recent studies indicate that there are crosscultural differences in what is perceived as fair (Kotabe, Dubinsky, & Lim, 1992), what is valued (Adler, 1986) and what motivates workers (Boyacigiller & Adler, 1991). Western pay practices are of particular concern because they may collide with collectivist cultures of countries such as Russia (Hofstede, 1993; Puffer & Shekshnia, 1994; 1996; Shcherbakov, 1991). Failure to recognize the values of the culture for which pay systems are designed could ultimately lead to employee resistance and ineffectiveness (Beatty, McCune, & Beatty, 1988).
This study compares Russian and U.S. pay allocation decisions, distributive justice judgments and productivity under various pay distribution rules. Procedural justice effects are also examined. The theoretical basis for our work is derived from an