Motivation in Multinational Companies

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

Learning Objectives
•• Know
Know howhow people
people from
from different
different nations
nations perceive
perceive the
the
basic
basic functions
functions of
of working
working
•• Know
Know howhow people
people from
from different
different nations
nations view
view the
the
importance
importance ofof working
working
•• Understand
Understand howhow the
the national
national context
context affects
affects the
the basic
basic
processes
processes ofof work
work motivation
motivation
Copyright© 2005 South-Western/Thomson Learning All rights reserved

Learning Objectives
•• BeBe able
able toto apply
apply common
common theories
theories ofof work
work motivation
motivation
inin different
different national
national context
context
•• BeBe able
able toto design
design jobs
jobs for
for high
high motivational
motivational potential
potential inin
different
different national
national cultures
cultures

Motivation in Multinationals
•• Multinational
Multinational managers
managers must must understand
understand how
how toto
motivate
motivate international
international employees
employees
•• Multinationals
Multinationals face
face an
an array
array ofof challenges
challenges toto motivate
motivate aa
workforce
workforce inin the
the face
face ofof aa rapidly
rapidly changing
changing labor
labor
market
market

Work Values and the Meaning
of Work
•• Why
Why do do people
people work?
work?
•• Four
Four major
major functions
functions ofof work
work
•• Providing
Providing needed
needed income
income
•• Security
Security
•• Contact
Contact with
with other
other people
people
•• AA feeling
feeling ofof accomplishment
accomplishment

Exhibit 13.1: Ratings of Major
Functions at Work

Why Do People Work?
•• Emphasis
Emphasis differsdiffers byby country
country
•• Income
Income aa higher
higher priority
priority in:
in:
•• Transition
Transition economies
economies (e.g.,
(e.g., Azerbaijan
Azerbaijan and
and
Lithuania)
Lithuania) andand many
many ofof the
the developing
developing nations
nations
(e.g.,
(e.g., India)
India)
•• Contact
Contact with with and
and aa feeling
feeling ofof accomplishment
accomplishment moremore
important
important in: in:
•• Many
Many ofof collective
collective cultures
cultures andand the
the social
social
democracies
democracies
What Do People Value in
Work?
•• Work
Work centrality:
centrality: overall
overall value
value ofof work
work inin aa person’s
person’s life
life
•• Work
Work compared
compared toto other
other activities
activities such
such as as leisure
leisure
and
and family
family
•• Higher
Higher levels
levels ofof work
work centrality
centrality match
match average
average
number
number ofof hours
hours worked
worked per
per week
week
•• High
High levels
levels ofof work
work centrality
centrality may
may lead
lead toto dedicated
dedicated
workers
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
Goals that
that people
people hope
hope toto achieve
achieve fromfrom working
working
•• Ranking
Ranking ofof the
the work
work characteristics
characteristics for for 50
50 countries
countries
•• Generous
Generous holidays
holidays (73%)
(73%)
•• An
An opportunity
opportunity toto use
use initiative
initiative (53%)
(53%)
•• Good
Good hours
hours (53%)
(53%)
•• Respected
Respected job job (50%)
(50%)
•• Responsible
Responsible job job (46%)
(46%)

Importance of Work
6.Achievement
6.Achievement (42%) (42%)
7.Interesting
7.Interesting (39%)
(39%)
8.Abilities
8.Abilities (36%)
(36%)
9.Good
9.Good jobjob security
security (30%)
(30%)
10.Good
10.Good pay pay (19%)
(19%)
6.6.Reward
Reward ofof generous
generous holiday
holiday almost
almost universal
universal
7.7.However,
However, priorities
priorities given
given toto different
different job
job characteristics
characteristics
vary
vary by
by country
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
•• InIn some
some societies,
societies, work
work isis very
very central
central and
and absorbs
absorbs
much
much ofof aa person’s
person’s life.
life.
•• All
All people
people hope
hope toto receive
receive certain
certain benefits
benefits from
from work.
work.
•• The
The first
first key
key toto successful
successful motivation
motivation strategies
strategies isis
understanding
understanding the the differences
differences regarding
regarding how
how people
people
view
view work
work among
among countries.
countries.

The Basic Work-Motivation
Process
•• Motivation:
Motivation: aa psychological
psychological process
process resulting
resulting inin goal-
goal-
directed
directed behavior
behavior thatthat satisfies
satisfies human
human needs
needs
•• Need:
Need: feeling
feeling ofof deficit
deficit or
or lacking
lacking
•• Goal-directed
Goal-directed behavior:
behavior: oneone that
that people
people use
use with
with thethe
intention
intention ofof satisfying
satisfying aa need
need

Work Motivation and the
National Context
•• Reinforcement:
Reinforcement: reactions
reactions toto aa person’s
person’s behavior
behavior that
that
encourage
encourage thethe person
person toto continue
continue the
the behavior
behavior
•• E.g.,
E.g., bonus
bonus pay
pay toto encourage
encourage behavior
behavior
•• Punishment:
Punishment: consequences
consequences ofof aa person’s
person’s behavior
behavior that
that
discourage
discourage thethe behavior
behavior
•• E.g.,
E.g., docking
docking pay
pay toto discourage
discourage behavior
behavior

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

National Context and Work
Motivation
•• Culture
Culture and
and social
social institution
institution influence
influence
•• They
They influence
influence the
the priority
priority people
people attach
attach toto work
work
•• They
They define
define what
what behaviors
behaviors are are legitimate
legitimate ways
ways toto
satisfy
satisfy goals
goals
•• National
National context
context also
also influences
influences reactions
reactions toto goal-
goal-
directed
directed behaviors
behaviors atat work
work

Theories of Work Motivation in
the Multinational Context
•• Two
Two basic
basic types
types ofof motivational
motivational theories
theories
•• Need
Need theory:
theory: assumes
assumes that that people
people can
can satisfy
satisfy basic
basic
human
human needs
needs inin the
the work
work setting
setting
•• Process
Process theory:
theory: arising
arising from
from needs
needs and
and values
values
combined
combined with
with an
an individual’s
individual’s beliefs
beliefs regarding
regarding the
the
work
work environment
environment

Theories of Work Motivation in
the Multinational Context
•• Four
Four need
need theories
theories ofof motivation
motivation
•• Maslow’s
Maslow’s Hierarchy
Hierarchy ofof Needs
Needs
•• ERG
ERG theory
theory
•• Motivator-hygiene
Motivator-hygiene theory
theory
•• Achievement
Achievement motivation
motivation theory
theory

Exhibit 13.6: Need Theories of
Motivation

Maslow’s Hierarchy of Needs
Theory
•• States
States that
that people
people have
have five
five basic
basic types
types ofof needs
needs
•• Physiological,
Physiological, Security,
Security, Affiliation,
Affiliation, Esteem,
Esteem, andand
Self-actualization
Self-actualization
•• The
The needs
needs follow
follow aa basic
basic hierarchy
hierarchy
•• People
People first
first seek
seek toto satisfy
satisfy lower
lower needs
needs
•• Once
Once lower
lower needneed isis satisfied,
satisfied, itit no
no longer
longer motivates
motivates
•• People
People trytry toto satisfy
satisfy higher
higher needs
needs

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

Alderfer’s ERG Theory
•• Simplified
Simplified hierarchy
hierarchy ofof needs,
needs, including
including existence
existence
needs,
needs, relatedness
relatedness needs,
needs, and
and growth
growth needs
needs
•• Frustration
Frustration ofof aa need
need motivates
motivates behavior
behavior toto satisfy
satisfy
the
the need.
need.
•• People
People seekseek toto satisfy
satisfy higher
higher and
and lower
lower level
level needs.
needs.
•• IfIf people
people cannot
cannot satisfy
satisfy higher
higher needs,
needs, they
they will
will try
try toto
satisfy
satisfy lower
lower level
level needs.
needs.

Motivator-Hygiene Theory
•• Assumption
Assumption that that aa job
job has
has two
two basic
basic characteristics:
characteristics:
motivators
motivators and and hygiene
hygiene factors
factors
•• Job
Job content—motivating
content—motivating factorsfactors
•• E.g.,
E.g., challenging
challenging job job
•• Job
Job context—hygiene
context—hygiene factorsfactors
•• E.g.,
E.g., good
good benefits
benefits

Achievement-motivation
Theory
•• Suggestion
Suggestion thatthat only
only some
some people
people have
have the
the need
need toto
win
win inin competitive
competitive situations
situations or
or toto exceed
exceed aa standard
standard ofof
excellence
excellence
•• Three
Three key
key needs:
needs: achievement,
achievement, affiliation,
affiliation, and
and
power
power
•• High
High achievement
achievement people
people have
have needs
needs toto win
win and
and toto
set
set own
own goals
goals and
and seek
seek challenging
challenging situations
situations

Needs and the National
Context: Lessons
•• People
People from from different
different nations
nations do
do not
not give
give the
the same
same
priorities
priorities toto the
the needs
needs that
that might
might bebe satisfied
satisfied atat work
work
•• Even
Even with
with similar
similar needs,
needs, they
they may
may not
not give
give the
the same
same
level
level ofof importance
importance ofof satisfying
satisfying these
these needs
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
Identify the
the basic
basic functions
functions ofof work
work inin the
the national
national or
or
local
local culture
culture
•• Identify
Identify the
the needs
needs considered
considered mostmost important
important by by
workers
workers inin the
the national
national oror local
local culture
culture
•• Sources
Sources ofof need
need fulfillment
fulfillment may
may differ
differ for
for the
the same
same
needs
needs
•• Understand
Understand limitations
limitations ofof available
available jobs
jobs toto satisfy
satisfy
needs
needs
Process and Reinforcement
Theories of Motivation:
Expectancy Theory
•• Expectancy
Expectancy theorytheory
•• Assumes
Assumes that that part
part ofof motivation
motivation isis an
an individual’s
individual’s
desire
desire toto satisfy
satisfy needs
needs
•• People’s
People’s beliefs
beliefs regarding
regarding howhow much
much their
their efforts
efforts atat
work
work will
will eventually
eventually satisfy
satisfy their
their needs
needs

Expectancy Theory
•• Three
Three factors
factors
•• Expectancy:
Expectancy: an an individual’s
individual’s belief
belief that
that his
his or
or her
her
effort
effort will
will lead
lead toto some
some result
result
•• Valence:
Valence: the the value
value attached
attached toto the
the outcome
outcome ofof
efforts
efforts
•• Instrumentality:
Instrumentality: the the links
links between
between early
early and
and later
later
results
results ofof the
the work
work effort
effort
•• Motivation
Motivation == Expectancy
Expectancy xx Valence
Valence xx Instrumentality
Instrumentality
Applying Expectancy Theory
in Multinational Settings
•• Two
Two keykey issues
issues
•• Identify
Identify valued
valued outcomes
outcomes ofof work
work
•• Use
Use culturally
culturally appropriate
appropriate waysways toto convince
convince
employees
employees that
that their
their efforts
efforts will
will lead
lead toto desirable
desirable
ends
ends

Equity Theory
•• Focuses
Focuses on on the
the fairness
fairness that
that people
people perceive
perceive inin the
the
rewards
rewards thatthat they
they receive
receive for
for their
their efforts
efforts atat work
work
•• There
There areare no
no absolute
absolute standards
standards for for fairness
fairness inin the
the
input/output
input/output (effort/reward)
(effort/reward) equation.
equation.
•• People
People compare
compare themselves
themselves toto others
others and
and adjust
adjust
their
their input
input (effort).
(effort).

Applying Equity Theory in
Multinational Settings
•• Equity
Equity norms
norms vary
vary
•• Three
Three principles
principles ofof allocating
allocating rewards
rewards
•• The
The principle
principle ofof equity
equity (based
(based onon contributions)
contributions)
•• Prevails
Prevails inin individualistic
individualistic cultures
cultures
•• The
The principle
principle ofof equality
equality (based
(based onon equal
equal division
division ofof
rewards)
rewards)
•• More
More likely
likely inin collectivistic
collectivistic cultures
cultures
•• The
The principle
principle ofof need
need (based
(based on on individual
individual needs)
needs)
Exhibit 13.10: Rewards from Peers for
Contributions to a Student Group
Project

Goal Setting Theory
•• Assumption
Assumption that that the
the mere
mere existence
existence ofof aa goal
goal isis
motivating
motivating
•• The
The principles
principles ofof goal
goal setting
setting
•• Set
Set clear
clear and
and specific
specific goals
goals
•• Assign
Assign difficult
difficult but
but achievable
achievable goals
goals
•• Increase
Increase employee
employee acceptance
acceptance ofof goals
goals
•• Provide
Provide incentives
incentives toto achieve
achieve goals
goals
•• Give
Give feedback
feedback on on goal
goal attainment
attainment
Applying Goal-Setting Theory
in Multinational Settings
•• Goal
Goal setting
setting worksworks toto some
some degree,
degree, regardless
regardless ofof
location.
location.
•• Cultural
Cultural expectations
expectations vary—managers
vary—managers must must know
know
•• IsIs itit better
better toto set
set goals
goals for
for groups
groups or
or for
for
individuals?
individuals?

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

Reinforcement Theory
•• Operant
Operant conditioning:
conditioning: model
model proposes
proposes that
that behavior
behavior isis
aa function
function ofof its
its consequences
consequences
•• Positive
Positive reinforcement—response
reinforcement—response with with rewarding
rewarding
consequence
consequence
•• Pleasurable
Pleasurable consequence
consequence == behavior
behavior continues
continues
•• Punishment—negative
Punishment—negative consequence
consequence
•• Unpleasant
Unpleasant consequence
consequence == behavior
behavior stops
stops

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

Applying Reinforcement
Theory in Multinational
Settings
•• Positive
Positive reinforcement
reinforcement works works
•• Difficulty
Difficulty isis inin identifying
identifying appropriate
appropriate rewards
rewards asas
reinforcers
reinforcers
•• National
National context
context defines
defines acceptable
acceptable and
and legitimate
legitimate
rewards
rewards

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

Multinational Applications of
Process/Reinforcement
Theories
•• Expectancy
Expectancy theory:
theory: key
key isis identifying
identifying nationally
nationally
appropriate
appropriate rewards
rewards that
that have
have positive
positive valence
valence
•• Equity
Equity theory:
theory: assess
assess meaning
meaning andand principle
principle ofof equity
equity
inin national
national context
context
•• Goal-setting
Goal-setting theory:
theory: should
should goals
goals be
be assigned
assigned toto
groups
groups oror individuals?
individuals?
•• Reinforcement
Reinforcement theory:
theory: what
what people
people value
value atat work
work will
will
influence
influence the
the types
types ofof reinforcers
reinforcers that
that can
can be
be used
used
Motivation and Job Design:
U.S. Perspectives
•• The
The job-characteristic
job-characteristic modelmodel approach
approach
•• Work
Work isis more
more motivating
motivating whenwhen managers
managers enrich
enrich
core
core job
job characteristics,
characteristics, such
such as
as by
by increasing
increasing
number
number ofof skills
skills aa job
job requires.
requires.

Job-Characteristics Model
•• Three
Three critical
critical psychological
psychological states
states as
as motivating
motivating
•• AA person
person must
must believe
believe that
that his
his or
or her
her job
job isis
meaningful.
meaningful.
•• AA person
person must
must believe
believe that
that he
he or
or she
she isis responsible
responsible
or
or accountable
accountable for
for the
the outcome
outcome ofof work.
work.
•• AA person
person must
must understand
understand how how well
well he
he or or she
she has
has
performed.
performed.

Core Characteristics of Job
•• Skill
Skill variety
variety
•• Task
Task identity
identity
•• Task
Task significance
significance
•• Autonomy
Autonomy
•• Feedback
Feedback

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

Motivation and Job Design:
European Perspective
•• Sociotechnical
Sociotechnical systems
systems (STS)
(STS) approach:
approach: focuses
focuses on on
designing
designing motivating
motivating jobs
jobs by
by blending
blending thethe social
social
system
system with
with different
different technologies
technologies
•• Autonomous
Autonomous workwork group:
group: team
team oror unit
unit that
that hashas nearly
nearly
complete
complete responsibility
responsibility for
for aa particular
particular task
task
•• Team’s
Team’s task
task rather
rather than
than individual
individual task
task isis focus
focus ofof job
job
enrichment
enrichment

Choosing Job-Enrichment
Techniques in Multinational
Settings
•• Distinction
Distinction between
between individualistic
individualistic and
and collectivist
collectivist
cultures
cultures should
should determine
determine thethe choice
choice ofof job-enrichment
job-enrichment
•• U.S.—individual
U.S.—individual
•• Japan—team
Japan—team
•• Social
Social loafing:
loafing: term
term used
used when
when people
people expend
expend less
less
effort
effort when
when they
they work
work inin groups
groups

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

Motivation in Multinational Companies

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Motivation in Multinational Companies

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Chapter 13

Copyright© 2004 Thomson Learning All rights reserved

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

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