Personality and national culture 767 Management Research News Vol. 32 No. 8, 2009 pp. 767-781 # Emerald Group Publishing Limited 0140-9174 DOI 10.1108/01409170910977988 Personality and national culture Predictors of compensation strategy preferences in the United States of America and India James W. Westerman Department of Management, Appalachian State University, Boone, North Carolina, USA Rafik I. Beekun Managerial Sciences Department, University of Nevada, Reno, Nevada, USA Joseph Daly Department of Management, Appalachian State University, Boone, North Carolina, USA, and Sita Vanka School of Management Studies, University of Hyderabad, Hyderabad, India Abstract Purpose – The purpose of this paper is to examine the relationships between individual personality and compensation package preferences and whether cross-cultural differences exist in these preferences in the USA and India. Design/methodology/approach – A survey methodology was used and subjects included 175 MBA students of two universities, one in the USA and one in India. Measurement instruments included a Big Five personality measure and a compensation pay strategy typology. Findings – Results indicated a significantly different pattern of results between subjects in the two countries. In the India sample, introversion was a significant predictor of a security/commitment pay strategy and extroversion and neuroticism were significant predictors of performance-driven pay strategies. In the US sample, none of the personality variables was predictive of pay strategy preferences. Practical implications – Multinational firms should reconsider ‘‘one-size-fits-all’’ compensation plans and tailor strategies to fit the profile of their workforce. Originality/value – The paper provides empirical data indicating that relationships exist between personality and pay package preferences, and that these relationships differ by culture. Keywords Personality, National cultures, Compensation, India, United States of America Paper type Research paper Introduction Compensation represents a potent tool for organizations to recruit and retain employees, to motivate employee behavior in organizationally beneficial directions and build strategic competitive advantage that is difficult to imitate (Milkovich and Newman, 2005). In this search for sustainable human resource (HR)-based competitive advantage, many organizations are altering and experimenting with their pay packages without a thorough understanding of their potential consequences. This research addresses a portion of this gap in compensation research by examining two specific areas: (1) The relationships between individual personality and compensation package preferences. (2) The role of national culture in determining such preferences. The current issue and full text archive of this journal is available at www.emeraldinsight.com/0140-9174.htm