Are wages more important for employees in poorer countries with harsher climates? Essay Example

among workers and managers globally. While the international perception of wage importance has already been studied, the current research aims to fill the gap by exploring the factors that shape this perception. Understanding employees' personal lives outside of work is crucial in order to comprehend the varying perceptions and identify the underlying influences.

There are five reasons why analyzing the overall climate of society in relation to the employee's available wealth is important. First, it can determine if an employee is overpaid or underpaid (Van de Vliert, 2003). Secondly, this notion challenges the assumption that "good pay" is universally applicable across different nations with varying climates. In other words, the concept of "good pay" is influenced by climate, making it difficult to establish international standards (Gerhart ; Milkovich, 1992, p. 490).

Another factor contributing to this is the emergence of a new perspective in analyzing wages at different levels (meso, micro, and macro), offering the opportunity for producing multilevel wage analyses. The fourth factor is the correlation between climate, wealth, and the significance of wages, which is supported by lower-level theories. Finally, if a relationship is found between climate, wealth, and the importance of wages, it could influence how companies establish cross-country wage levels. After establishing this background, the authors proceeded to list the hypotheses they formulated for their study.

The first hypothesis suggests that wages are considered more significant in countries with extreme climates, whether hot or cold. Additionally, wages are believed to hold greater importance in economically disadvantaged nations. The third hypothesis combines these two notions and posits that wages are especially important to employees in poorer countries that also experience extreme climates. After presenting these

hypotheses, the authors clearly identified the dependent and independent variables of the study and provided an outline of their research design and methodology. The research design employed was quantitative in nature. The study sample consisted of 37 nations, chosen to achieve geographic balance, ensuring equal representation of rich, richer, poor, and poorer countries across different climate patterns. To gather employee responses, stratified multistage random sampling was utilized within the selected nations.

The study involved sampling blue collar workers, white collar workers, and managers proportionately. The study encompassed three independent variables: wage importance, harsh climate, and national wealth. The author utilized data from the 1999-2002 World Values Surveys conducted by Inglehart, et. al (2004) to assess wage importance. Despite acknowledging that these values are not flawless, the authors utilized them while also establishing qualifications and validations along the way. Harsh climate was measured based on the extreme weather conditions of the countries, using an average scale of hotness or coldness of 22 degrees Celsius in this particular study.

In summary, the researchers assessed national wealth by comparing each country's Gross National Product to that of the United States on a logarithm scale. They employed various statistical analysis tools like median splits, correlations, and regression analysis. Their analysis revealed that while the first hypothesis (perceived importance of wages not differing significantly among countries with harsh climates) was unsupported, the second hypothesis (greater perceived importance of wages in poorer countries and those with higher inflation rates) was supported by the data. The third hypothesis had a comparatively lesser impact than the first two. Overall, these findings suggest that the perceived significance of working for money in harsh climates and poorer

countries needs to be qualified. Furthermore, they indicate that cold winters could potentially explain the effect of harsh climate and wealth on the perceived importance of wages.

Following data analysis, the researchers discussed the implications and conclusions of their study. They discovered that climate, specifically extreme cold weather, significantly affects how poorer individuals perceive wages. The researchers noted that there was no discernible distinction in wage perception between blue-collar workers, white-collar workers, and their managers. However, it is crucial to consider workers' individual requirements for thermal comfort, health, and nutrition in relation to their wages to fully comprehend the importance of wages to them. Furthermore, the authors briefly critiqued the research method employed by examining the reliability and validity of the variables measured in the study design.

After critiquing the method, the scholars examined three perspectives on the significance of wages to employees: adaptational, conglomerate, and strategic views. The adaptational view suggests that employees' and managers' perception of wages is shaped by the environmental conditions in the respective countries. As a result, organizations should offer higher wages to employees working in harsh climates or poorer countries. This ensures that workers facing challenging circumstances, such as colder climates or economic disadvantage, feel adequately compensated for their needs and challenges.

The conglomerate view acknowledges the significance of wages by considering other factors. These factors include the demands of the harsh climate, the resources or collective wealth of the country, and the values of the workers. The conglomerate view also takes into account the clash between the organization's values and those of the workers, which depends on factors such as organizational demands, available resources, and individual worker values (Karasek, 1979, p.

288). Additionally, they mention the Strategic View, which can be used to develop a strategic plan for managing personnel in organizations operating globally. By analyzing country-specific difficulties and perceptions of wage importance, multinational companies can create a fair salary schedule.

Ultimately, this can enhance competitiveness and employee satisfaction while bolstering employee retention in challenging climates and developing nations. The authors' findings underscore the significance of a flexible, collective, and strategic approach to wages.