Role of the reward system in managing changes of organizational culture

The paper intends to investigate how companies can efficiently manage their organizational cultures through changes in the reward system. The paper is based on a research which has taken place in one Serbian company which decided to change its organizational culture, as a prerequisite for further organizational changes. As the main instrument for changing organizational culture, the top management used changes in the reward system. The findings suggest that in the short run only narrow changes of organizational culture are likely to occur. The influence of the reward system on cultural changes is quite limited, and therefore should be strengthened by using various HRM policies.