CHAPTER 13 MOTIVATION IN MULTINATIONAL COMPANIES

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CHAPTER 13 MOTIVATION IN MULTINATIONAL COMPANIES
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INTRODUCTION

• Multinational managers need to motivate employees
  with diverse backgrounds
• Need to understand
• why do people work?
• what do people value in work?
• functions and work centrality

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WHY DO PEOPLE WORK?

• The major functions of work
• providing needed income
• secure job
• contact with other people
• feeling of accomplishment
• Emphasis differs by country

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Excerpts from Exhibit 13.1 (next) shows the
major functions of work for selected countries
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WORK CENTRALITY

• Work versus other activities
• Higher levels of work centrality also match
  average number of hours worked per week
• High levels of work centrality may lead to
  dedicated workers

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EXHIBIT 13.2 DIFFERENCES IN WORK CENTRALITY
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IMPORTANCE OF WORK

• What people value in their current job
• generous holidays (1)
• use initiative
• good work hours
• respected job
• responsible job
• See Exhibit 13.3 next

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WORK MOTIVATION AND THE NATIONAL CONTEXT
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THE BASIC WORK MOTIVATION PROCESS

• Motivation psychological process that results in
  goal-directed behavior that satisfy human needs
• Needs a feeling of deficit
• work satisfies many needs - e.g., food and shelter

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• Motivation includes more than satisfying needs
• Reactions to behaviors
• reinforcement
• punishment

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See Exhibit 13.4 (next) for the basic work
motivation process and the national context
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NATIONAL CONTEXT AND WORK MOTIVATION

• Culture and supporting institutions influence
• the priority people attach to work
• types of needs people satisfy at work
• reactions to goal-directed behaviors at work

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THEORIES OF WORK MOTIVATION IN THE MULTINATIONAL
CONTEXT

• Two basic types of motivation theories
• need theories
• process theories
• Applications to multinational context follow

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NEED THEORIES

• Assume that working can satisfy basic human needs
• Four popular need theories Maslows hierarchy of
  needs, ERG theory, Motivator-Hygiene theory, and
  Achievement Motivation theory

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MASLOW'S HIERARCHY OF NEEDS

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

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ALDERFER'S ERG THEORY

• Simplified hierarchy growth needs, relatedness
  needs, and existence needs
• Frustration motivates behavior to satisfy the
  need
• People seek to satisfy higher and lower level
  needs

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MOTIVATOR-HYGIENE THEORY

• Job content motivating factors
• Job context hygiene factors
• Only job content factors truly motivating

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ACHIEVEMENT MOTIVATION THEORY

• Three key needs achievement, affiliation, and
  power
• High achievement people have needs to win and to
  set own goals and seek challenging situations

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NEEDS AND THE NATIONAL CONTEXT

• Need priorities differ by country
• Even with similar ranks, level of importance
  differs by country

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APPLYING NEED THEORIES IN MULTINATIONAL SETTINGS

• Identify
• basic functions of work
• needs considered most important
• Sources of need fulfillment
• Know available jobs to satisfy needs

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PROCESS THEORIES OF MOTIVATION

• Three major theories expectancy theory, equity
  theory, and goal setting theory
• More complex than need theories
• relate individual beliefs regarding effort,
  outcomes, and performance

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EXPECTANCY THEORY

• Motivation Expectancy X Valence X
  Instrumentality

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APPLYING EXPECTANCY THEORY IN MULTINATIONAL
SETTINGS

• Identify valued outcomes of work
• Use culturally appropriate ways to convince
  employees that their efforts will lead to
  desirable ends

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EQUITY THEORY

• Fairness in the input/output equation
• Relative rewards vis-a-vis inputs leads to
• reduced or increased contribution to organization

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APPLYING EQUITY THEORY IN MULTINATIONAL SETTINGS

• Equity norms vary
• Principles of allocating rewards
• contributions - prevail in individualistic
  cultures
• equality - more likely in collectivist cultures
• need - more likely in collectivist cultures

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GOAL SETTING THEORY

• Premise People want to achieve goals
• Effective Goals
• clear, specific, and difficult but achievable

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Goal setting theory, continued

• For Goals setting to work, managers must
• increase employee acceptance of goals
• provide incentives to achieve goals
• give feedback on goal attainment

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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?

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EXHIBIT 13.9 CULTURAL EFFECTS ON GOAL SETTING
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REINFORCEMENT THEORY

• Behavior is a function of its consequences
• Pleasurable consequence behavior continues
• Unpleasant consequence behavior stops
• Reinforcement, extinction, and punishment

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APPLYING REINFORCEMENT THEORY IN MULTINATIONAL
SETTINGS

• Positive reinforcement
• Identify appropriate rewards as reinforcers
• National context defines acceptable/legitimate
  rewards

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MOTIVATION AND JOB DESIGN U.S. AND EUROPEAN
PERSPECTIVES

• Focus on nature of jobs
• Psychological effects of tasks on workers

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A U.S. APPROACH THE JOB CHARACTERISTICS MODEL

• See Exhibit 13.12 next

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A EUROPEAN APPROACH SOCIOTECHNICAL SYSTEMS

• Technology and the social needs of workers
• The autonomous work group
• Team tasks the focus job enrichment

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CHOOSING JOB ENRICHMENT TECHNIQUES IN
MULTINATIONAL SETTINGS

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

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PROBLMES OF TEAM WORK IN INDIVIDUALISTIC CULTURES

• Social loafing
• No responsibility for group outcomes
• Individual work/interests have priority over
  group's

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CONCLUSIONS

• Motivating the multinational workforce a
  constant challenge
• Motivation theories not culture free
• Application requires knowledge of national context