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11-2Copyright © Houghton Mifflin Company. All rights reserved.
Overview
• Motivating and leading abroad
• Motivation theories and cultural implications
• Effective Leadership in an international context
11-3Copyright © Houghton Mifflin Company. All rights reserved.
Motivating Across Cultures
• Cultural differences add complexity
• Applicability of American approaches?
• Culture-specific approaches
• Differences within a country
• Few universal principles
11-4Copyright © Houghton Mifflin Company. All rights reserved.
Motivation Theories
• Context theories– Maslow’s hierarchy of needs– Herzberg’s two-factor theory
• Process theories– Equity theory– Reinforcement theory– Goal theory– Expectancy theory
11-5Copyright © Houghton Mifflin Company. All rights reserved.
Maslow’s Hierarchy of Needs
►Self-actualization—maximum potential►Esteem needs—self respect & confidence
►Social needs—feeling of belonging►Safety needs—satisfy security concerns
►Physiological—food and shelter
• Hierarchical needs
• Lower order needs dominate behavior until met
11-6Copyright © Houghton Mifflin Company. All rights reserved.
Cross-Cultural Applicability of Maslow’s Hierarchy of Needs
• Some applicability across cultures
• Hierarchy scheme doesn’t fit every culture
• Cooperative/social needs may be most important in collectivist cultures
• Some argue that hierarchy reflects American values
11-7Copyright © Houghton Mifflin Company. All rights reserved.
Herzberg’s Two-Factor Theory
• Hygiene factors—needs to be satisfied– i.e., good working conditions– If satisfied, does not guarantee motivation
• Motivators—needs to be motivated– i.e., job enrichment– Must have both hygiene factors and
motivators to be motivated
11-8Copyright © Houghton Mifflin Company. All rights reserved.
Cross-Cultural Applicability of Herzberg’s Two-Factor Theory
• Some applicability
• Doesn’t fit every culture
• Motivators vary across cultures– Collectivist / individualist – Power distance– Uncertainty avoidance– Masculine / feminist
11-9Copyright © Houghton Mifflin Company. All rights reserved.
Where Are the (un)Happiest Employees?
11-10Copyright © Houghton Mifflin Company. All rights reserved.
Equity Theory
• Motivation linked to perceptions of being treated fairly in terms of– Job outcomes—pay, benefits– Job inputs—effort, skills
• Employees compare outcome/input ratio against others
• Balanced ratio = satisfied employee
11-11Copyright © Houghton Mifflin Company. All rights reserved.
Cross-Cultural Applicability of Equity Theory
• Individualistic cultures embrace equity theory
• Collectivist cultures more likely to prefer equal distribution of outcomes
• Differences in equity standards
• Social changes impact view of equity
• Managers must consider reactions to reward allocation system
11-12Copyright © Houghton Mifflin Company. All rights reserved.
Reinforcement Theory
• Consequences associated with behavior
• Positive reinforcers—improve performance– i.e., Bonuses
• Punishment—eliminate poor performance– i.e., Pay cut
11-13Copyright © Houghton Mifflin Company. All rights reserved.
Cross-Cultural Applicability of Reinforcement Theory
• Need to determine what employees value to use positive reinforcers
• Cultural differences of meaning of rewards– Positive vs. critical feedback– Praise– Performance-based, merit pay vs.
seniority
11-14Copyright © Houghton Mifflin Company. All rights reserved.
Goal Theory
• Establishing performance targets
• Specific and challenging goals as motivators
• Employee involvement in goal-setting
11-15Copyright © Houghton Mifflin Company. All rights reserved.
Cross-Cultural Applicability of Goal Theory
• Assumes: – Low power distance– Low uncertainty avoidance– High performance is valued
• Variations in approaches to goal setting
11-16Copyright © Houghton Mifflin Company. All rights reserved.
Expectancy Theory
• Assumes three employees believe:1. Hard work will result in good
performance
2. Rewards associated with good performance
3. Rewards are important to them
• If not, motivation suffers
11-17Copyright © Houghton Mifflin Company. All rights reserved.
Cross-Cultural Applicability of Expectancy Theory
• Emphasizes individualism
• Masculine orientation– Task versus relationship focus
• Locust of control– Internal versus external
• Reward system must be designed with cultural considerations
11-18Copyright © Houghton Mifflin Company. All rights reserved.
Developing a Motivation Strategy
• Take cultural variables into account
• Cultural values change and evolve
• Managers should be aware of own biases
• Any strategy should be…– Culturally synergistic—complement
various cultures involved
11-19Copyright © Houghton Mifflin Company. All rights reserved.
Steps to Developing a Motivation Strategy
1.Describe motivation situation
2.Identify cultural assumptions about motivation
3.Generate culturally synergistic alternatives
4.Select and implement a synergistic strategy
11-20Copyright © Houghton Mifflin Company. All rights reserved.
Leader Behavior Across Cultures
• Constantly changing and evolving
• U.S. research reveals two basic types:– Task-oriented behavior
• Providing clear expectations
– Relationship-oriented behavior• Showing personal concern
– This simple dichotomy not appropriate in all cultures
11-21Copyright © Houghton Mifflin Company. All rights reserved.
Likert’s System 4 Theory
• Argues all companies should move toward systems 3 and 4 for higher performance and moral
• May work best in low power distance cultures
• Managers should adjust leadership style to the cultural environment
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Likert’s System 4 Theory (cont’d)
System 1 - Exploitive authoritativeTop downPunishment used to motivate
System 2 - Benevolent authoritativeAutocraticPaternalistic
System 3 - ConsultativeEmployees involvedManagement final say
System 4 - DemocrativeEmployee part of decision makingLateral and verticalTeam approach
11-23Copyright © Houghton Mifflin Company. All rights reserved.
Leadership and Power
• Perspectives on power differ between cultures
• Position power
• Personal power
• Social influence tactics
11-25Copyright © Houghton Mifflin Company. All rights reserved.
Transformational Leadership
• Ability to influence – Poor to exceptional performance
• Creates emotional bond that results in loyalty and performance– Charisma– Use of inspirational appeals– Intellectual stimulation– Individualized consideration
• Less effective in collectivist cultures
11-26Copyright © Houghton Mifflin Company. All rights reserved.
Path-Goal Theory
• Model that includes cultural variables
• Four basic styles– Directive– Supportive– Participative– Achievement-oriented
• Contingency factors shape style
11-28Copyright © Houghton Mifflin Company. All rights reserved.
Leadership Challenges for MNCs
• Diversity of contexts
• Macro-level and micro-level factors
• National and corporate values
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