Cultural psychological processes underlying workplace remuneration in Japanese and European American contexts

Abstract

Japan's remuneration systems are moving away from seniority-based pay towards individual performance-based pay. We tested how the latter system works within the Japanese cultural context and whether the operation and functioning of the system reflects general psychological tendencies found in Japan. Japanese (Study 1 n = 197; Study 2 n = 235) and European American (Study 1 n = 201; Study 2 n = 186) participants read vignettes that described workplace success centred on a focal employee and including a team. Participants attributed contribution and rewards (financial and status) to a range of agents and factors with graded levels of focus, from the focal employee having the greatest and luck having the least. In general, we found that Japanese participants attributed greater contribution and reward to less focal agents and factors while European American participants attributed greater contribution and reward to more focal agents, in addition to some specific differences between the tasks and reward types. We discuss implications for more nuanced theorizing of the interaction between institutional systems and psychological processes.