Global Reward Strategy. How is that done in a Swedish multinational corporation?

Abstract

The practice perspective in HR strategy making is underdeveloped in the literature. This master thesis explores how a growing Swedish multinational corporation does its reward strategy in relation to the corporate HR strategy and business strategy in a global context from the practice perspective. Consequently, the focus of this study has been on actions and interactions of different strategists as well as on what they bring in the strategy process in the situation of change from a local to a more global approach in the HR strategy and practice. The focus of this paper is limited to one part of reward strategy – the benefits strategy. An explorative study was conducted in the organisation using a mix of participant observation and interviews methods for data collection. The empirical material was analysed from the Strategy as Practice perspective using the concepts of practice, praxis and practitioners. This approach enabled a broad angle of analysis of multiple actors and their roles in the strategy process. Findings of this thesis outline how the ‘global’ is being constructed in an organisation by a mix of top-down and bottom-up strategic processes. It is explained how the actions of the headquarters and local country HR are blended together in building a global reward strategy. I also emphasise the importance of consultancies in the reward practice.