A large body of literature provides empirical evidence of a positive relationship between reward practices and performance. However, little has been said about different combinations of individual and group incentives as drivers of organizational competitiveness. This paper examines bundles of nine individual and group PFP practices and their joint effect on selected financial and non-financial indicators of organizational performance (OP). Our empirical research study included 61 middleand large-sized companies in Croatia in order to analyze the aforementioned relationships. The categorical principal component analysis generated two factors of PFP practices that were subsequently used as independent variables in a multiple regression analysis. The first PFP bundle consisted of individual subjectively-based bonus and two shared-ownership practices and was found to positively influence non-financial indicators of OP, i.e. quality of services or products and innovativeness. The second factor consisted of individual performance appraisal and profit-sharing and it positively influenced financial indicators of OP, i.e. productivity and, to a lesser extent, profitability. Implications for theory and practice are also discussed.

With increasing worldwide use of individual variable pay (IVP) and thereby some theoretical suggestions to drop it in collectivistic societies it is worth examining the role of variable pay in such cultural surroundings. This paper aims at answering the following research questions: what kind of IVP systems are offered in collectivistic societies, is the implementation of IVP systems related to some specific company characteristic and what results can companies achieve by using IVP systems. A primary research of compensation practices was conducted among 58 Croatian medium and large companies. The research carried out shows that in Croatia, which is a highly collectivistic society, companies offer IVP such as pay for performance, sales commissions and occasional bonuses to its employees. Non-parametric testing has shown that the use of individual-based pay for performance is dependent upon the size and ownership structure of the company. However, contrary to some previous findings and expectations, our analysis reveals only minor differences in organisational outcomes between companies that apply or do not apply individual incentives. Research results support the thesis of global convergence of compensation practices and show that collectivistic heritage does not inhibit the implementation of IVP.

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Beneficije su oblik indirektnih kompenzacija, koji pokušava postići mnoge ciljeve. Međutim, poduzeća primarno pružaju beneficije, kako bi dokazala da brinu za osobne potrebe zaposlenika, ili žele ponuditi atraktivan i konkurentan ukupni paket kompenzacija. S obzirom da beneficije predstavljaju rastući dio ukupnih troškova kompenzacija te uzevši u obzir da se odnedavno propituje njihov motivacijski potencijal, potrebno je analizirati ulogu beneficija u postizanju primarnih ciljeva upravljanja ljudskim potencijalima (privlačenju, zadržavanju i angažmanu zaposlenika) u hrvatskim poduzećima. Stoga je provedena empirijska studija na uzorku hrvatskih poduzeća, koja pokazuje da su sigurnost te mirovinske i zdravstvene beneficije nedovoljno zastupljene u hrvatskim poduzećima, iako ih zaposlenici obično visoko cijene. Kod administrativnih i proizvodnih radnika, socijalne aktivnosti, dobrovoljno zdravstveno i mirovinsko osiguranje te mogućnost rada od kuće su pozitivno povezani sa zadržavanjem zaposlenika. Međutim, statistički značajne povezanosti između beneficija, uglavnom orijentiranih na održavanje ravnoteže između radnog i osobnog života, te ishoda upravljanja ljudskim resursima, za eksperte su bile gotovo uvijek negativno. Samo se dobrovoljno zdravstveno osiguranje pokazalo kao potencijalno korisno za angažiranje i zadržavanje eksperata. Stoga bi poslodavci trebali redizajnirati strategiju beneficija i promisliti o opcionalnoj ponudi fleksibilnog sustava beneficija.