Influence of national culture on compensation systems and organizational culture

In 250 words, please provide 2 positive & 2 negative comments in the following paragraphs which talk about the influence of national culture on compensation systems and organizational culture:

When multinational corporations format their human resource and compensation strategies based upon the cultural preferences of the host nation, improved performance is the result (Westerman et al, 2009 p. 770). However, this important strategy of recognizing the appropriate reward systems of a particular national culture does not necessarily indicate that national culture is indeed a more important influence on compensation systems than organizational culture. Indeed, if national culture were the primary influence on compensations systems, any particular country would have very little variety within their systems and this is not the case. To be sure, organizational culture is the more significant influence upon an organization’s compensation strategy. “ Compensation systems provide outsiders with information about less visible organizational characteristics and, therefore, they might signal to a job applicant what an organization’s culture, norms, and values are like” (Li & Roloff, 2007 p. 211).

According to Martocchio, “Total compensation strategies describe the use of compensation and benefits practices that support both human resource strategies and competitive strategies” (2011 p. 16). So indeed, the organization does and should reflect their individual competitive strategy within their mix of monetary and nonmonentary compensation. To be more specific, an organization may be committed to being the low cost leader within a given industry. To successfully achieve this goal, the compensation strategy should be aligned with this purpose, keeping core compensation low and providing a mix of nonmonetary rewards which are also frugally applied. In contrast, an organization which is committed to cutting edge innovations and technologies would implement a remarkably different strategy toward compensation. In order to attract and retain technologically innovative, forward thinking employees, the organization would be compelled to offer higher than average salaries as well as non-monetary benefits which would simplify the lives of their busy employees, thus keeping them satisfied, comfortable, and unlikely to join forces with a competitor.