A Meta-Analytic Study of Pay for Performance and Job Performance with National Cultures as Moderators

Compensation strategies are important and commonly used strategies for business to attain the goals ofmotivation and retention (Lawler, 1971). Organizations around the world consistently increase therelationship between incentive and performance in order to motivate employee for better performance. Thepay for performance can apply to the format of team performance.Both the meta analytic studies of Condly et al. (2003) and Cerasoli et al. (2014) found the positiverelationships between monetary incentives and job performance; however, they did not include a veryimportant contextual factor – national culture in their reviews (Gerhart & Fang, 2015; Dowling et al., 2008;Evans et al., 2002) . It has become an important issue especially for international human resourcemanagement in a global competition.Gerhart & Fang (2015) pointed out the future research of national cultures should shed more light on theissues of effect sizes rather than the statistical significance. Therefore, the present study will usemeta-analytic method to examine the relationship between PFP and job performance under the moderatingeffects of national cultures. The national cultures included here are recommended by past researches forhaving the most relevance to human resource practices. These are collectivism (individualism), powerdistance, and high performance orientation. The results can be references for designing internationalcompensation strategies.