Motivation in Multinational Companies

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Motivation in Multinational Companies

• Chapter 13, part 1

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Chapter Outline

• Work values and the meaning of work
• Work motivation and the national context
• Theories of work motivation in the multinational
  context
• Need theories
• Process theories
• Motivation and job design

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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

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Four Major Functions of Work

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

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Exhibit 13.1 Ratings of Major Functions of Work
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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
• Some collective cultures and the social
  democracies (examples Germany, Scandinavian
  countries)

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How Much Do People Value Work?

• Work centrality overall value of work in a
  persons life, as compared to other activities,
  such as leisure and family
• Work centrality varies by countries
• In countries with high work centrality, people
  tend to work more hours per week
• High levels of work centrality may lead to
  dedicated workers

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Desired Job Characteristics

• 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)

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Importance of Work

• Achievement (42)
• Interesting (39)
• Abilities (36)
• Good job security (30)
• Good pay (19)
• Desire for generous holidays almost universal
  (Japan is an exception)
• However, priorities given to different job
  characteristics vary by country

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Exhibit 13.4 Importance Rankings of Work
Characteristics in Nine Countries
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Exhibit 13.4 Importance Rankings of Work
Characteristics in Nine Countries
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Work Values and the Meaning of Work Conclusions

• In some societies, work is very central and
  absorbs much of a persons 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.

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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

Unsatisfied need
Attainment of goal (need satisfaction)
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Work Motivationand National Context

• Reinforcement reactions to a persons behavior
  that encourage the person to continue the
  behavior
• E.g., bonus pay to encourage behavior
• Punishment consequences of a persons behavior
  that discourage the behavior
• E.g., docking pay to discourage behavior

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

• Culture and social institutions
• Influence the priority people attach to work
• Define what behaviors are legitimate ways to
  satisfy goals
• Influences reactions to goal-directed behaviors
  at work what is rewarded or punished, and how
• Influences employees' relationships with the
  organization they work for

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Need Theories of Motivation

• Four need theories of motivation
• Maslows Hierarchy of Needs
• ERG theory
• Motivator-hygiene theory
• Achievement motivation theory
• Need theories and Hofstede's dimensions of culture

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Maslows Hierarchy of Needs

• Physiological needs food, clothing, shelter, and
  other basic physical needs
• Security safety, stability, absence of pain
• Social need to interact with others, affiliate
  with others, and feel wanted by others
• Esteem needs for power, status, influence
• Self-actualization desire to reach one's full
  potential by becoming everything that one is
  capable of being

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Maslows Hierarchy of Needs
Security
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Maslows Hierarchy of Needs (2)

• 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
• Then people try to satisfy higher needs

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Exhibit 13.6 Need Theories of Motivation
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Alderfers 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.

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Motivator-Hygiene Theory

• Theory that there are two sets of factors that
  influence job satisfaction motivators and
  hygiene factors
• Motivators correspond to Maslow's high-level
  needs.
• Job content factors, such as achievement,
  recognition, responsibility, advancement, and the
  work itself
• They produce satisfaction with the job
• More important in motivating employees than
  hygiene factors in most cultures.

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Motivator-Hygiene Theory (2)

• Hygiene factors correspond to Maslow's low level
  and middle level needs.
• Job context variables that include salary,
  interpersonal relations, supervision, working
  conditions, and company policies and
  administration
• When these factors are not adequate, employees
  become dissatisfied with the job.

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Achievement Motivation Theory

• Theory that only some people have the need to win
  in competitive situations or to exceed a standard
  of excellence
• Three key needs for achievement-motivated people
  achievement, affiliation, and power
• High achievement people have needs to win and to
  set own goals and seek challenging situations
• They also avoid goals that they think are too
  difficult to achieve

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Achievement Motivation Theory (2)

• People who have strong a achievement need
• Want personal responsibility for solving problems
• Tend to be moderate risk takers
• Want immediate, concrete feedback about their
  performance
• Are competitive and often do not get along well
  with other people
• Achievement motivation is learned and can
  sometimes be developed through training

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Achievement Motivation Theory (3)

• Cultures that support achievement motivation
  include
• English-speaking countries highly individualism
• Countries that reward entrepreneurial effort
• In countries with low masculinity, quality of
  life is likely to be a better motivator than
  achievement
• Achievement motivation training has been
  successful in some developing countries

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How to Encourage Achievement Motivation

• Train people to
• Obtain feedback on performance
• Use the feedback to make efforts in areas where
  they are likely to succeed
• Emulate people who have been successful achievers
• Develop an internal desire for success and
  challenges
• Daydream in positive terms by picturing
  themselves as being successful in the pursuit of
  important objectives

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Exhibit 13.8 Rankings of the Importance of
Job-Related Sources of Need Satisfaction for
Seven Countries
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Exhibit 13.9 Hofstedes Dimensions of National
Culture and Motivators at Work
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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
• Example different jobs are respected in
  different cultures
• Understand limitations of available jobs to
  satisfy needs