Pay for performance in emerging markets: Insights from China

Du, Jing; Choi, Jin Nam

doi:10.1057/jibs.2009.40

Cited by 73 publications

(64 citation statements)

References 60 publications

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“…In addition, foreign-owned firms typically apply their existing Human Resource practices that are "characterized by consistent rules and systematic processes as well as by regular feedback directed to each employee," whereas domestically-owned firms "typically do not provide (or even informal) performance reviews" (p. 676). Du and Choi (2010) find, as do we, that pay-for-performance bonuses are more intensively used in domestically-owned firms compared to foreign-owned firms. As noted, foreign-owned firms in our data pay a much lower percent of their pay in bonuses.…”

Section: Datasupporting

confidence: 84%

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Compliance with legal minimum wages and overtime pay regulations in China

Gindling

2015

IZA J Labor Develop

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We use a matched firm-employee data set to examine the extent of compliance with minimum wage and overtime pay regulations in Chinese formal sector firms. We find evidence that there is broad compliance with legal minimum wages in China; fewer than 3.5% of full-time workers earn less than the legal monthly minimum wage. On the other hand, we find evidence that there is substantial non-compliance with overtime pay regulations; almost 29% of the employees who work overtime are not paid any additional wage for overtime hours, and 70% are paid less than the legally-required 1.5 times the regular wage.JEL codes: J3, J8, O17

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Section: Datasupporting

confidence: 84%

“…(Du and Choi, 2010, p. 672). Du and Choi (2010) argue that in China PFP can be more beneficial to domestic firms than to foreign firms. This is in part because there is no tradition of an "iron rice bowl" in foreign-owned firms.…”

Section: Datamentioning

confidence: 99%

Compliance with legal minimum wages and overtime pay regulations in China

Gindling

2015

IZA J Labor Develop

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“…This has been largely replaced by a more market-related individual and collective contract system [10], [11].…”

Section: Hrm Practices In Chinamentioning

confidence: 99%

Human Resource Management Practices in China a UAE-A Comparison

Shayah¹,

Sun²

2018

Proceedings of the 4th Annual International Conference on Management, Economics and Social Development (ICMESD 2018)

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Abstract. With the development of globalization and the high demands of the dynamically changing environment, HR managers must meet the required needs for guiding effective employment, deployment, and development of an organization's human resources in the different countries. This paper specifically examines the HRM practices in China and the UAE by reviewing various HRM practices including recruitment & selection, and training. The main aim of the research is to compare HRM practices adopted by organizations in China and the UAE in order to identify the differences, similarities and the future trends.

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“…Incentive pay may also urge employees to improve their task competence because extra remuneration is more achievable when a task is competently completed than when it is completed in a mediocre manner. Therefore, incentive pay strengthens the efforts of employees toward learning and leveraging their KSAs to enhance task performance and secure additional financial gains (Batt, ; Du & Choi, ). Moreover, employees frequently interpret performance‐contingent rewards as an indicator of their competence rather than a controller of their behavior because, in a sense, the company “bribes” them to perform tasks (Deci, Koestner, & Ryan, ).…”

Section: Theoretical Framework and Hypothesesmentioning

confidence: 99%

Incentive Pay and Firm Performance: Moderating Roles of Procedural Justice Climate and Environmental Turbulence

Sung

Choi

seungsik

2015

Human Resource Management

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In connection with the literature on strategic reward and agency theory, this study investigates the effects of incentive pay on employee outcomes and firm performance. We identify employee outcomes, such as commitment and competence, as mediating processes that explain the effects of incentive pay on firm performance. We further propose procedural justice climate and environmental turbulence as boundary conditions that determine the strength of the effects of incentive pay on employee outcomes. The research model is tested using multisource data collected at three time points over a five‐year period from 227 Korean companies. Our analysis confirmed that incentive pay enhanced employee commitment and competence, which, in turn, improved the operational and financial performances of firms. The effect of incentive pay on employee commitment was negative for firms with a low procedural justice climate, but positive for firms operated under a highly turbulent environment. By contrast, the effect of incentive pay on employee competence was positive only for firms operated under a stable environment. This study enriches the literature by presenting and validating plausible underlying mechanisms and boundary conditions under which strategic performance–contingent incentive pay affects firm performance. © 2015 Wiley Periodicals, Inc.

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Pay for performance in emerging markets: Insights from China

Cited by 73 publications

References 60 publications

Compliance with legal minimum wages and overtime pay regulations in China

Compliance with legal minimum wages and overtime pay regulations in China

Human Resource Management Practices in China a UAE-A Comparison

Incentive Pay and Firm Performance: Moderating Roles of Procedural Justice Climate and Environmental Turbulence

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