A comparative study of performance appraisals, incentives and rewards practices in domestic and multinational enterprises in the country of Brunei Darussalam

Singh, Satwinder and Mohamed, A Fattaah and Darwish, Tamer K (2013) A comparative study of performance appraisals, incentives and rewards practices in domestic and multinational enterprises in the country of Brunei Darussalam. International Journal of Human Resource Management, 24 (19). pp. 3577-3598. ISSN 0958-5192

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Abstract

Very little work in the past has focused on the comparative analysis of human resource management (HRM) practices between domestic and multinational enterprises (MNEs). The majority of the work in this area has instead concentrated on comparing the HRM practices utilised by the subsidiaries of MNEs, and has mostly been conducted in the context of developed countries. In this paper, we examine how the HR practices of appraisals, rewards and incentives are offered, explained and monitored in domestic enterprises (DEs) versus MNEs, and how they are similar or different in nature. This paper is based on primary data collected from a cross-section of firms operating in the country of Brunei Darussalam – a context within which no previous work of this nature has been undertaken. An analysis reveals several interesting results: HR practices are more advanced and better structured in MNEs that conduct performance appraisals (PA) more frequently than DEs, and their feedback system is also rapid; incentives and rewards systems in MNEs follow market ethos and principles; the HR directors and employees of MNEs are more receptive to PA than those in DEs whilst, in contrast to DEs, incentives and rewards systems in MNEs follow market ethos and principles. Furthermore, with regard to size, younger firms are more likely to be following market principles in terms of explaining incentives and rewards systems to their employees, whilst older firms claim that working for them carries social and psychological benefits for employees.

Item Type: Article
Article Type: Article
Additional Information: Published online: 14 Apr 2013
Uncontrolled Keywords: competitive advantage, HR practices, human resource management, Mann–Whitney U test, multinational enterprises, t-test
Subjects: H Social Sciences > HF Commerce > HF5001 Business > HF5549 Personnel management. Employment management
Divisions: Schools and Research Institutes > Business School > Business and Human Resource Management
Research Priority Areas: Applied Business Research
Depositing User: Tamer Darwish
Date Deposited: 12 Jan 2016 11:12
Last Modified: 31 Aug 2016 15:21
URI: http://eprints.glos.ac.uk/id/eprint/2989

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