ABSTRACT
As noted in the considerable body of research upon the subject, an organization’s reward system specifies guidelines for what employees have to do in order to receive pay rises, bonuses, promotions and praise. To this end it acts as an unequivocal statement of values, beliefs and assumptions (Bartlett and Ghoshal, 1989; Schein, 1987). In the past, the extent of incentives offered to staff – beyond adhering to the constraints of collective societal norms – was fairly limited, particularly in locally based conglomerates. Rigidly hierarchical management systems, the reluctance to dilute company ownership and a traditional disregard for the rights of minority shareholders have meant that local employees were served nothing like the kind of tangible benefits expected in the West. However, in an increasingly tight labor market, MNC branch reward structures are being clearly aligned with parent norms, the usual pay and benefits being supplemented by opportunities to buy shares in the company (Holland, 2000). As a case in point, the Anglo-Dutch consumer giant Unilever rewards loyalty in the company via generous benefit schemes and retirement packages. Because of this scheme the branch units across the region are considered as being home to an especially loyal workforce. From the envelope fillers, drivers and messenger boys at the lowest rungs of the organization right through to the top, there will be the global Unilever emphasis on employee empowerment – with clear links to the overall corporate reward structure.
