Chapter Copyright© 2004 Thomson Learning All rights reserved 13 Motivation in Multinational Companies

Chapter

Copyright© 2004 Thomson Learning All rights reserved

13Motivation in Multinational Companies

Copyright© 2005 South-Western/Thomson Learning All rights reserved

Learning Objectives

• Know how people from different nations perceive the basic functions of working

• Know how people from different nations view the importance of working

• Understand how the national context affects the basic processes of work motivation


Learning Objectives

• Be able to apply common theories of work motivation in different national context

• Be able to design jobs for high motivational potential in different national cultures


Motivation in Multinationals

• Multinational managers must understand how to motivate international employees

• Multinationals face an array of challenges to motivate a workforce in the face of a rapidly changing labor market


Work Values and the Meaning of Work

• Why do people work?• Four major functions of work

• Providing needed income• Security• Contact with other people• A feeling of accomplishment


Exhibit 13.1: Ratings of Major Functions at Work


Why Do People Work?

• Emphasis differs by country• Income a higher priority in:

• Transition economies (e.g., Azerbaijan and Lithuania) and many of the developing nations (e.g., India)

• Contact with and a feeling of accomplishment more important in: • Many of collective cultures and the social

democracies


What Do People Value in Work?

• Work centrality: overall value of work in a person’s life• Work compared to other activities such as leisure

and family• Higher levels of work centrality match average

number of hours worked per week• High levels of work centrality may lead to dedicated

workers


Exhibit 13.2: Differences in Work Centrality in Seven Countries


Exhibit 13.3: Ranking of Work Centrality of Selected Countries of the World Values Survey


Importance of Work

• Goals that people hope to achieve from working• Ranking of the work characteristics for 50 countries

• Generous holidays (73%)• An opportunity to use initiative (53%)• Good hours (53%)• Respected job (50%)• Responsible job (46%)


Importance of Work

6.Achievement (42%)7.Interesting (39%)8.Abilities (36%)9.Good job security (30%)10.Good pay (19%)

6. Reward of generous holiday almost universal7. However, priorities given to different job characteristics

vary by country


Exhibit 13.4: Importance Rankings of Work Characteristics in Nine Countries


Exhibit 13.4: Importance Rankings of Work Characteristics in Nine Countries


Work Values and the Meaning of Work: Conclusions

• In some societies, work is very central and absorbs much of a person’s life.

• All people hope to receive certain benefits from work.• The first key to successful motivation strategies is

understanding the differences regarding how people view work among countries.


The Basic Work-Motivation Process

• Motivation: a psychological process resulting in goal-directed behavior that satisfies human needs

• Need: feeling of deficit or lacking• Goal-directed behavior: one that people use with the

intention of satisfying a need


Work Motivation and the National Context

• Reinforcement: reactions to a person’s behavior that encourage the person to continue the behavior• E.g., bonus pay to encourage behavior

• Punishment: consequences of a person’s behavior that discourage the behavior• E.g., docking pay to discourage behavior


Exhibit 13.5: The Basic Work Motivation Process and the National Context


National Context and Work Motivation

• Culture and social institution influence• They influence the priority people attach to work• They define what behaviors are legitimate ways to

satisfy goals• National context also influences reactions to goal-

directed behaviors at work


Theories of Work Motivation in the Multinational Context

• Two basic types of motivational theories• Need theory: assumes that people can satisfy basic

human needs in the work setting• Process theory: arising from needs and values

combined with an individual’s beliefs regarding the work environment


Theories of Work Motivation in the Multinational Context

• Four need theories of motivation• Maslow’s Hierarchy of Needs• ERG theory• Motivator-hygiene theory• Achievement motivation theory


Exhibit 13.6: Need Theories of Motivation


Maslow’s Hierarchy of Needs Theory

• States that people have five basic types of needs• Physiological, Security, Affiliation, Esteem, and

Self-actualization• The needs follow a basic hierarchy• People first seek to satisfy lower needs• Once lower need is satisfied, it no longer motivates• People try to satisfy higher needs


Exhibit 13.7: Maslow’s Hierarchy of Needs and Country Level Measures


Alderfer’s ERG Theory

• Simplified hierarchy of needs, including existence needs, relatedness needs, and growth needs• Frustration of a need motivates behavior to satisfy

the need.• People seek to satisfy higher and lower level needs.• If people cannot satisfy higher needs, they will try to

satisfy lower level needs.


Motivator-Hygiene Theory

• Assumption that a job has two basic characteristics: motivators and hygiene factors• Job content—motivating factors

• E.g., challenging job• Job context—hygiene factors

• E.g., good benefits


Achievement-motivation Theory

• Suggestion that only some people have the need to win in competitive situations or to exceed a standard of excellence• Three key needs: achievement, affiliation, and

power • High achievement people have needs to win and to

set own goals and seek challenging situations


Needs and the National Context: Lessons

• People from different nations do not give the same priorities to the needs that might be satisfied at work

• Even with similar needs, they may not give the same level of importance of satisfying these needs


Exhibit 13.8: Rankings of the Importance of Job-Related Sources of Need Satisfaction for Seven Countries


Exhibit 13.9: Hofstede’s Dimensions of National Culture and Motivators at Work


Applying Need Theories in Multinational Settings

• Identify the basic functions of work in the national or local culture

• Identify the needs considered most important by workers in the national or local culture

• Sources of need fulfillment may differ for the same needs

• Understand limitations of available jobs to satisfy needs


Process and Reinforcement Theories of Motivation: Expectancy Theory

• Expectancy theory• Assumes that part of motivation is an individual’s

desire to satisfy needs• People’s beliefs regarding how much their efforts at

work will eventually satisfy their needs


Expectancy Theory

• Three factors • Expectancy: an individual’s belief that his or her

effort will lead to some result• Valence: the value attached to the outcome of

efforts• Instrumentality: the links between early and later

results of the work effort• Motivation = Expectancy x Valence x Instrumentality


Applying Expectancy Theory in Multinational Settings

• Two key issues• Identify valued outcomes of work• Use culturally appropriate ways to convince

employees that their efforts will lead to desirable ends


Equity Theory

• Focuses on the fairness that people perceive in the rewards that they receive for their efforts at work• There are no absolute standards for fairness in the

input/output (effort/reward) equation.• People compare themselves to others and adjust

their input (effort).


Applying Equity Theory in Multinational Settings

• Equity norms vary• Three principles of allocating rewards

• The principle of equity (based on contributions)• Prevails in individualistic cultures

• The principle of equality (based on equal division of rewards)• More likely in collectivistic cultures

• The principle of need (based on individual needs)


Exhibit 13.10: Rewards from Peers for Contributions to a Student Group Project


Goal Setting Theory

• Assumption that the mere existence of a goal is motivating

• The principles of goal setting• Set clear and specific goals• Assign difficult but achievable goals• Increase employee acceptance of goals• Provide incentives to achieve goals• Give feedback on goal attainment


Applying Goal-Setting Theory in Multinational Settings

• Goal setting works to some degree, regardless of location.

• Cultural expectations vary—managers must know• Is it better to set goals for groups or for

individuals?


Exhibit 13.11: Cultural Effects on Performance by the Degree of Participation in Goal Setting


Reinforcement Theory

• Operant conditioning: model proposes that behavior is a function of its consequences

• Positive reinforcement—response with rewarding consequence• Pleasurable consequence = behavior continues

• Punishment—negative consequence• Unpleasant consequence = behavior stops


Exhibit 13.12: Management Examples of Operant-Conditioning Process and Types of Consequences


Applying Reinforcement Theory in Multinational Settings

• Positive reinforcement works• Difficulty is in identifying appropriate rewards as

reinforcers• National context defines acceptable and legitimate

rewards


Exhibit 13.13: Effects of Positive Reinforcement and Types of Rewards in a Russian Cotton Mill


Multinational Applications of Process/Reinforcement Theories

• Expectancy theory: key is identifying nationally appropriate rewards that have positive valence

• Equity theory: assess meaning and principle of equity in national context

• Goal-setting theory: should goals be assigned to groups or individuals?

• Reinforcement theory: what people value at work will influence the types of reinforcers that can be used


Motivation and Job Design: U.S. Perspectives

• The job-characteristic model approach• Work is more motivating when managers enrich

core job characteristics, such as by increasing number of skills a job requires.


Job-Characteristics Model

• Three critical psychological states as motivating• A person must believe that his or her job is

meaningful.• A person must believe that he or she is responsible

or accountable for the outcome of work.• A person must understand how well he or she has

performed.


Core Characteristics of Job

• Skill variety• Task identity• Task significance• Autonomy• Feedback


Exhibit 13.14: A Motivating Job in the Job-Characteristics Model


Motivation and Job Design: European Perspective

• Sociotechnical systems (STS) approach: focuses on designing motivating jobs by blending the social system with different technologies

• Autonomous work group: team or unit that has nearly complete responsibility for a particular task

• Team’s task rather than individual task is focus of job enrichment


Choosing Job-Enrichment Techniques in Multinational Settings

• Distinction between individualistic and collectivist cultures should determine the choice of job-enrichment• U.S.—individual• Japan—team

• Social loafing: term used when people expend less effort when they work in groups


Exhibit 13.15: Comparing the Performance of Chinese, U.S., and Israeli Managers Working Alone and in Groups

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Chapter Copyright© 2004 Thomson Learning All rights reserved 13 Motivation in Multinational Companies