CHAPTER 13 MOTIVATION IN MULTINATIONAL COMPANIES

CHAPTER 13

MOTIVATION

IN

MULTINATIONAL COMPANIES

INTRODUCTIONINTRODUCTION

• Multinational managers Multinational managers need to motivate employees need to motivate employees with diverse backgroundswith diverse backgrounds

• Need to understandNeed to understand•why do people work?why do people work?•what do people value in work?what do people value in work?

• functions and work centralityfunctions and work centrality

WHY DO PEOPLE WORK?WHY DO PEOPLE WORK?

• The major functions of workThe major functions of work•providing needed incomeproviding needed income•secure jobsecure job•contact with other peoplecontact with other people•feeling of accomplishmentfeeling of accomplishment

• Emphasis differs by countryEmphasis differs by country

Excerpts from Exhibit 13.1 Excerpts from Exhibit 13.1 (next) shows the major (next) shows the major

functions of work for selected functions of work for selected countries countries

0% 20% 40% 60% 80% 100%

Norway

Japan

Philippines

Brazil

USA

Mexico

Nigeria

S Africa

Russia

Lithuania

Distribution of Top Choice

Needed Income

Secure Job

Contact with People

Feeling ofAccomplishment

WORK CENTRALITYWORK CENTRALITY

• Work versus other activitiesWork versus other activities• Higher levels of work centrality Higher levels of work centrality

also match average number of also match average number of hours worked per weekhours worked per week

• High levels of work centrality High levels of work centrality may lead to dedicated workersmay lead to dedicated workers

EXHIBIT 13.2 DIFFERENCES EXHIBIT 13.2 DIFFERENCES IN WORK CENTRALITYIN WORK CENTRALITY

0 0.5 1 1.5 2

Work Centrality

Britian

Netherlands

U.S.A.

Japan

IMPORTANCE OF WORKIMPORTANCE OF WORK• What people value in their What people value in their

current job current job • generous holidays (#1)generous holidays (#1)• use initiativeuse initiative• good work hoursgood work hours• respected jobrespected job• responsible jobresponsible job

• See Exhibit 13.3 nextSee Exhibit 13.3 next

U.S.A.1. G ENEROUS

H OLIDAYS

2. J OB R ESPECTED

3. G OOD H OURS

4. U SE INITIATIVE

TURKEY

1. G ENEROUS

H OLIDAYS

2. I NTERESTING

JOB

3. R ESPONSIBILITY

4. U SE INITIATIVE

GERMANY

1. G ENEROUS

H OLIDAYS

2. J OB R ESPECTED

3. G OOD H OURS

4. R ESPONSIBILITY

CHINA

1. G ENEROUS

H OLIDAYS

2. R ESPONSIBILITY

3. U SE INITIATIVE

4. I NTERESTING

JOB

INDIA

1. G ENEROUS

H OLIDAYS

2. U SE INITIATIVE

3. I NTERESTING

JOB

4. G OOD H OURS

RUSSIA

1. R ESPONSIBILITY

2. U SE INITIATIVE

3. G ENEROUS

H OLIDAYS

4. G OOD H OURS

N IGERIA

1. G ENEROUS

H OLIDAYS

2. G OOD H OURS

3. U SE INITIATIVE

4. J OB R ESPECTED

PERU

1. G ENEROUS

H OLIDAYS

2. I NTERESTING

JOB

3. G OOD H OURS

4. A CHIEVE

S OMETHING

WORK MOTIVATION AND THE WORK MOTIVATION AND THE NATIONAL CONTEXT NATIONAL CONTEXT

THE BASIC WORK THE BASIC WORK MOTIVATION PROCESSMOTIVATION PROCESS

• Motivation: psychological Motivation: psychological process that results in process that results in goal-directed behavior that goal-directed behavior that satisfy human needssatisfy human needs

• Needs: a feeling of deficitNeeds: a feeling of deficit •work satisfies many work satisfies many needs - e.g., food and needs - e.g., food and sheltershelter

• Motivation includes more Motivation includes more than satisfying needsthan satisfying needs

• Reactions to behaviors Reactions to behaviors •reinforcement reinforcement •punishmentpunishment

See Exhibit 13.4 (next) for See Exhibit 13.4 (next) for the basic work motivation the basic work motivation process and the national process and the national

context context

NATIONAL C ONTEXTINDIVIDUAL W ORK

MOTIVATION

UNSATISFIED N EEDS

GOAL -D IRECTED

BEHAVIOR TO

SATISFY N EEDS

REINFORCEMENT OR

PUNISHMENT

DEFINES THE

IMPORTANCE OF

D IFFERENT N EEDS

DEFINES L EGITIMATE

BEHAVIORS OF W ORK

DEFINES W HAT ISREWARDED OR

PUNISHED AND H OW

C ONTINUE OR S TOP

BEHAVIORS ; S TAY

OR L EAVE THE

ORGANIZATION

DEFINES R ELATIONSHIP

WITH O RGANIZATION

NATIONAL CONTEXT AND NATIONAL CONTEXT AND WORK MOTIVATIONWORK MOTIVATION

• Culture and supporting Culture and supporting institutions influenceinstitutions influence• the priority people attach to workthe priority people attach to work• types of needs people satisfy at types of needs people satisfy at

workwork• reactions to goal-directed reactions to goal-directed

behaviors at workbehaviors at work

THEORIES OF WORK THEORIES OF WORK MOTIVATION IN THE MOTIVATION IN THE

MULTINATIONAL CONTEXT MULTINATIONAL CONTEXT • Two basic types of Two basic types of

motivation theories:motivation theories:•need theoriesneed theories•process theoriesprocess theories

• Applications to Applications to multinational context multinational context followfollow

NEED THEORIESNEED THEORIES• Assume that working can Assume that working can

satisfy basic human needssatisfy basic human needs• Four popular need theories: Four popular need theories:

Maslow’s hierarchy of needs, Maslow’s hierarchy of needs, ERG theory, Motivator-ERG theory, Motivator-Hygiene theory, and Hygiene theory, and Achievement Motivation Achievement Motivation theorytheory

MASLOW'S HIERARCHY OF MASLOW'S HIERARCHY OF NEEDSNEEDS

• Basic needs: physiological, Basic needs: physiological, security, affiliation, esteem, security, affiliation, esteem, and self-actualizationand self-actualization•a hierarchya hierarchy•once one need is satisfied, once one need is satisfied, it no longer motivatesit no longer motivates

ALDERFER'S ERG THEORYALDERFER'S ERG THEORY

• Simplified hierarchy: growth Simplified hierarchy: growth needs, relatedness needs, needs, relatedness needs, and existence needsand existence needs

• Frustration motivates Frustration motivates behavior to satisfy the needbehavior to satisfy the need

• People seek to satisfy higher People seek to satisfy higher and lower level needsand lower level needs

MOTIVATOR-HYGIENE MOTIVATOR-HYGIENE THEORYTHEORY

• Job content = motivating Job content = motivating factorsfactors

• Job context = hygiene Job context = hygiene factorsfactors

• Only job content factors Only job content factors truly motivatingtruly motivating

ACHIEVEMENT MOTIVATION ACHIEVEMENT MOTIVATION THEORYTHEORY

• Three key needs: Three key needs: achievement, affiliation, and achievement, affiliation, and powerpower

• High achievement people High achievement people have: needs to win and to have: needs to win and to set own goals and seek set own goals and seek challenging situationschallenging situations

NEEDS AND THE NATIONAL NEEDS AND THE NATIONAL CONTEXT CONTEXT

• Need priorities differ by Need priorities differ by countrycountry

• Even with similar ranks, Even with similar ranks, level of importance differs level of importance differs by countryby country

APPLYING NEED THEORIES IN APPLYING NEED THEORIES IN MULTINATIONAL SETTINGS MULTINATIONAL SETTINGS

• Identify:Identify:• basic functions of workbasic functions of work• needs considered most needs considered most

importantimportant• Sources of need fulfillmentSources of need fulfillment• Know available jobs to satisfy Know available jobs to satisfy

needsneeds

PROCESS THEORIES OF PROCESS THEORIES OF MOTIVATIONMOTIVATION

• Three major theories: Three major theories: expectancy theory, equity expectancy theory, equity theory, and goal setting theory theory, and goal setting theory

• More complex than need More complex than need theoriestheories•relate individual beliefs relate individual beliefs

regarding effort, outcomes, and regarding effort, outcomes, and performanceperformance

EXPECTANCY THEORYEXPECTANCY THEORY

• Motivation = Expectancy X Motivation = Expectancy X Valence X InstrumentalityValence X Instrumentality

APPLYING EXPECTANCY APPLYING EXPECTANCY THEORY IN MULTINATIONAL THEORY IN MULTINATIONAL

SETTINGSSETTINGS

• Identify valued outcomes of Identify valued outcomes of workwork

• Use culturally appropriate Use culturally appropriate ways to convince ways to convince employees that their employees that their efforts will lead to efforts will lead to desirable endsdesirable ends

EQUITY THEORYEQUITY THEORY

• Fairness in the Fairness in the input/output equation input/output equation

• Relative rewards vis-a-vis Relative rewards vis-a-vis inputs leads to:inputs leads to:•reduced or increased reduced or increased

contribution to organizationcontribution to organization

APPLYING EQUITY THEORY IN APPLYING EQUITY THEORY IN MULTINATIONAL SETTINGSMULTINATIONAL SETTINGS

• Equity norms varyEquity norms vary• Principles of allocating rewards: Principles of allocating rewards:

• contributions - prevail in individualistic contributions - prevail in individualistic culturescultures

• equality - more likely in collectivist equality - more likely in collectivist culturescultures

• need - more likely in collectivist need - more likely in collectivist culturescultures

GOAL SETTING THEORYGOAL SETTING THEORY

• Premise: People want to Premise: People want to achieve goals achieve goals

• Effective Goals:Effective Goals:•clear, specific, and difficult clear, specific, and difficult

but achievablebut achievable

• For Goals setting to work, For Goals setting to work, managers must:managers must:• increase employee acceptance of increase employee acceptance of

goalsgoals• provide incentives to achieve goals provide incentives to achieve goals • give feedback on goal attainmentgive feedback on goal attainment

Goal setting theory, Goal setting theory, continuedcontinued

APPLYING GOAL SETTING APPLYING GOAL SETTING THEORY IN MULTINATIONAL THEORY IN MULTINATIONAL

SETTINGSSETTINGS• Goal setting works to some Goal setting works to some

degree regardless of degree regardless of location location

• Cultural expectations vary - Cultural expectations vary - managers must know:managers must know:•is it better to set goals for is it better to set goals for

groups or for individuals?groups or for individuals?

EXHIBIT 13.9 CULTURAL EXHIBIT 13.9 CULTURAL EFFECTS ON GOAL SETTINGEFFECTS ON GOAL SETTING

0 5 10 15 20Performance

Assigned

Representative

Participative

De

gre

e o

f P

art

icip

ati

on

U.S.

Kibbutz Isareli

Urban Israeli

REINFORCEMENT THEORYREINFORCEMENT THEORY

• Behavior is a function of its Behavior is a function of its consequences consequences

• Pleasurable consequence = Pleasurable consequence = behavior continuesbehavior continues

• Unpleasant consequence = Unpleasant consequence = behavior stopsbehavior stops

• Reinforcement, extinction, and Reinforcement, extinction, and punishmentpunishment

APPLYING REINFORCEMENT APPLYING REINFORCEMENT THEORY IN MULTINATIONAL THEORY IN MULTINATIONAL

SETTINGSSETTINGS

• Positive reinforcementPositive reinforcement• Identify appropriate Identify appropriate

rewards as reinforcers rewards as reinforcers • National context defines National context defines

acceptable/legitimate acceptable/legitimate rewards rewards

MOTIVATION AND JOB MOTIVATION AND JOB DESIGN: U.S. AND DESIGN: U.S. AND

EUROPEAN PERSPECTIVESEUROPEAN PERSPECTIVES

• Focus on nature of jobsFocus on nature of jobs• Psychological effects of Psychological effects of

tasks on workerstasks on workers

A U.S. APPROACH: THE JOB A U.S. APPROACH: THE JOB CHARACTERISTICS MODELCHARACTERISTICS MODEL

• See Exhibit 13.12 nextSee Exhibit 13.12 next

Characteristicsof a Job

Skills andabilities;

Opportunity tosee a whole

piece of work;Job effects

others

Freedom tochoose goals

and schedules

Feedback ontask

completionand quality

Worker FeelsResponsible

for Outcomes

CriticalPsychological

States

Work andPersonal

Outcomes

Job isMeaningful

Worker KnowsResults from

Efforts

Job SatisfiesGrowth Needs

Job is HighlyMotivating

Job is HighlySatisfying

High WorkQuantity andQuality

A EUROPEAN APPROACH: A EUROPEAN APPROACH: SOCIOTECHNICAL SYSTEMSSOCIOTECHNICAL SYSTEMS

• Technology and the social Technology and the social needs of workersneeds of workers

• The autonomous work The autonomous work groupgroup

• Team tasks the focus job Team tasks the focus job enrichmentenrichment

CHOOSING JOB ENRICHMENT CHOOSING JOB ENRICHMENT TECHNIQUES IN TECHNIQUES IN

MULTINATIONAL SETTINGSMULTINATIONAL SETTINGS• Distinction between Distinction between

individualistic and individualistic and collectivist cultures should collectivist cultures should determine the choice of determine the choice of job-enrichmentjob-enrichment•U.S. individual approachU.S. individual approach•European group approachEuropean group approach

PROBLMES OF TEAM WORK IN PROBLMES OF TEAM WORK IN INDIVIDUALISTIC CULTURESINDIVIDUALISTIC CULTURES

• Social loafing Social loafing • No responsibility for group No responsibility for group

outcomesoutcomes• Individual work/interests Individual work/interests

have priority over group'shave priority over group's

CONCLUSIONSCONCLUSIONS

• Motivating the multinational Motivating the multinational workforce: a constant workforce: a constant challengechallenge

• Motivation theories not Motivation theories not culture freeculture free

• Application requires Application requires knowledge of national contextknowledge of national context