Motivation in

International Business
Presented by:
Rajneet Kaur
02519103909
MOTIVATION
Defined as “those forces that cause individuals to
behave in particular ways.”
It encompasses all those pressures and influences that
trigger , channel and sustain human behavior.
What motivates an individual or work group may or may
not motivate any other individual or work group.
The Centrality Of Motivation
 V. Vroom proposed that performance on the job is
determined by the following relationship ;
 P = f ( M, A, E)

where : P = Performance

M = Motivation

A = Ability

E = Environment
Framework for motivation
APPROACHES
THE SCIENTIFIC MANAGEMENT APPROACH

 Holds that workers are economically motivated .

 failed when management practices resulted in reduced

pay incentives and layoffs .

• THE HUMAN RELATIONS APPROACH

 postulated that people are motivated by their social

environment as well , apart from money .
THEORY X versus THEORY Y
• THEORY X – ASSUMPTIONS

 An average employee dislikes work and tries to avoid it

 need to be coerced , controlled , directed , sometimes

threatened to put forth adequate effort .

• THEORY Y – ASSUMPTIONS

 For an average person , work is natural as play or rest .

 need not to be coerced , controlled , directed or

threatened for work
THE CONTENT THEORY OF
MOTIVATION
 THE MASLOW’S APPROACH

 physiological needs . Ex- basic salary , air etc.

 safety needs . Ex – job security , fringe benefits.

 social needs . Ex –relationship with co- workers.

 esteem needs . Ex – status , recognition.

 Self actualization needs . Ex –personal growth , self

respect.
RESEARCH RESULTS
In USA , Canada , Great Britain and India – Maslow’s
hierarchy fits the culture.
In Mexico , Greece , Italy , Austria etc – safety and
security needs are the strongest needs because of
uncertainty avoidance.
In Netherlands , Sweden , Norway , Denmark etc – social
needs dominate because of strong concerns for the
quality of life.
Research results contd.
Another survey found this order of needs in various
nations-;
United states and Japan- self-actualization , esteem ,
safety , physiological and social needs.
France – Self actualization , esteem , physiological ,
safety , social.
India – Physiological , self actualization , esteem , social
, safety.
Germany – self actualization , physiological , esteem ,
social , safety.
The Mc Clelland Theory
David Mc Clelland used Themantic Apperception Test
( TAT ).
His studies led to identification of 3 acquired needs ,
namely;
The Need for achievement

The need for power

The need for affiliation

The Process Theory Of Motivation
EQUITY THEORY

 Based on notion that people want to be treated equally

 EQUITY – Belief that one is being treated fairly in

relation to other.

 INEQUITY – Belief that one is being treated unfairly in

relation to other.
Equity Theory contd..
 Worker considers a ratio of SELF INPUTS ( SI ) to SELF
OUTCOMES ( SO ).

 At the same time , he/she evaluates another worker on

the basis of OTHER’S INPUTS ( OI ) and OTHER’S
OUTCOMES (OO)

 The worker then compares SI/SO with OI/OO and

perceives either equity or inequity.

 Those perceiving equity are motivated to maintain it.

 Those perceiving inequity are motivated to reduce or

eliminate it.
Goal Setting Theory
 Cognitive approach

 It contends that workers are conscious ( cognitive ) creatures

who strive to achieve goals.
 This theory holds that worker’s motivation is influenced by
various factors:

1)workers are motivated to achieve specific goals than vague ,

general goals.

2)workers commit fully to difficult goals rather than easy ones.

3) workers motivation is decreased when performance feedback is

with held.
Applications Of Motivation Theory
 Reinforcement Theory

 Reinforcement refers to anything that causes a

targeted behavior to be either repeated or inhibited

 This theory is a motivational approach that attempts to

explain the role of rewards in the motivation process.

 Positive reinforcement

 Punishment

 Behavior modification
REWARD SYSTEM
Defined as those methods by which the employing
organizations defines , evaluates , rewards employee
performance.
Effective reward system should incorporate motivational
principles.
Should have certain essential characteristics:

 Meet the worker’s need for basic necessities.

 Rewards must compare favorably with rewards offered

by other relevant employers.

 Must be distributed in equitable manner.

Guidelines For Effective
Motivation Programmes
Managers should know workers have different abilities
and motives.
Job reward should be tied to performance , not to
seniority or other non merit- based factor.
Job should be designed in such a way as to provide
challenge and variety.
Managers should be certain that subordinates clearly
understand what is expected of them.
Managers should try to stay close to their subordinates
and correct the problems as they arise.
THANK YOU