The Tasmanian Government, 2015), but will also

The intensification of globalisation and technological
advancements (O’Donnell, 2000; Appelbaum et al., 2011) has underscored many
firms’ expansion beyond the national borders, effectively operating as
multinational companies (MNCs) in various markets (Bloom. et al., 2003; Verburg.
et al., 1999). The increasingly competitive global business environment has
necessitated these MNCs to turn to their most valuable asset, the human capital,
to gain competitive advantage (Güngör 2011; Lekovi? & Mari?, 2013; Barney
1991). The decisive and critical role of human resource management (HRM) is
even more pronounced as only the best-managed companies can thrive in today’s
globalised market (Chiu, et al., 2002; Schuler & MacMillan, 1984). This
emphasises the importance for MCNs to develop various forms of rewards to
attract, retain and motivate their employees (Chiu, et al., 2002; Firoz et al.,
2002).

More
importantly, implementing the right reward systems for the multinational
workforce is vital as the provision of rewards that has minimal effects on employee
motivation would be an inefficient use of capital (Gunkel, 2006). Motivating
employees in an effective manner will not only serve as an impetus towards the
realisation of a company’s goals (Lekovi? & Mari?, 2013; Department of
State Growth, Tasmanian Government, 2015), but will also ensure the success of
an MNC’s business operations abroad (Schuler & Rogovsky,
1998).
It is, however, imperative to note that a certain type of reward that is
considered motivating in one culture may not have the same impact in another
(Gunkel, 2006; Schneider et al., 2014; Silverman, 2004). Towards this end,
understanding the influence of national culture on the effects of rewards on
employee motivation will be an increasingly crucial component of corporate
strategy in MNCs (Chiang, 2005; Chiu, et al., 2002; Gunkel, 2006; Schuler &
Rogovsky, 1998).