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Chapter 13
Chapter 13
Chapter 13
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  • 1. Chapter 13Motivation in MultinationalCompanies Copyright© 2007 Thomson Learning All rights reserved
  • 2. Learning Objectives•• Know how people from different nations perceive the Know how people from different nations perceive the basic functions of working basic functions of working•• Know how people from different nations view the Know how people from different nations view the importance of working importance of working•• Understand how the national context affects the basic Understand how the national context affects the basic processes of work motivation processes of work motivation Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 3. Learning Objectives•• Be able to apply common theories of work motivation Be able to apply common theories of work motivation in different national context in different national context•• Be able to design jobs for high motivational potential in Be able to design jobs for high motivational potential in different national cultures different national cultures Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 4. Motivation in Multinationals•• Multinational managers must understand how to Multinational managers must understand how to motivate international employees motivate international employees•• Multinationals face an array of challenges to motivate Multinationals face an array of challenges to motivate a workforce in the face of a rapidly changing labor a workforce in the face of a rapidly changing labor market market Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 5. How Important is Work in People’s Lives?•• Work centrality: overall value of work in a person’s life Work centrality: overall value of work in a person’s life -- Work compared to other activities such as leisure Work compared to other activities such as leisure and family and family -- Higher levels of work centrality match average Higher levels of work centrality match average number of hours worked per week number of hours worked per week -- High levels of work centrality may lead to dedicated High levels of work centrality may lead to dedicated workers workers Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 6. Exhibit 14.1: Differences in WorkCentrality in Seven Countries Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 7. How Important is Work in People’s Lives?•• Work obligation norms Work obligation norms -- Societies that have high work obligation norms Societies that have high work obligation norms expect their citizens to view work as an obligation or expect their citizens to view work as an obligation or a duty a duty -- These societies are more likely to have individuals These societies are more likely to have individuals adhering to this norm by working longer adhering to this norm by working longer Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 8. Exhibit 14.2: Levels of WorkObligations in VariousSocieties Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 9. What Do People Value in Work?•• Extrinsic work values: individuals express preference Extrinsic work values: individuals express preference for security from their jobs with such aspects as for security from their jobs with such aspects as income, job security, and less demanding work income, job security, and less demanding work•• Intrinsic work values: express preferences for Intrinsic work values: express preferences for openness to change, the pursuit of autonomy, growth, openness to change, the pursuit of autonomy, growth, creativity, and the use of initiative at work creativity, and the use of initiative at work Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 10. Exhibit 14.3: Extrinsic WorkValues for Selected Countries Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 11. Exhibit 14.4: Intrinsic WorkValues for Selected Countries Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 12. Exhibit 14.5: Priorities Given toDifferent Job Characteristics inSelected Countries Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 13. What Do People Value in Work?•• In some societies, work is very central and absorbs In some societies, work is very central and absorbs much of a person’s life much of a person’s life•• All people hope to receive certain benefits from work All people hope to receive certain benefits from work•• Societies differ in the degree to which they regard work Societies differ in the degree to which they regard work as an obligation to society as an obligation to society•• Many of the emerging economies that value extrinsic Many of the emerging economies that value extrinsic work values such as income and job security also work values such as income and job security also place high value on intrinsic work values place high value on intrinsic work values Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 14. What Do People Value in Work?•• The first key to successful motivational strategies is The first key to successful motivational strategies is understanding the differences regarding how people understanding the differences regarding how people view work among countries view work among countries Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 15. The Basic Work-Motivation Process•• Motivation: a psychological process resulting in goal- Motivation: a psychological process resulting in goal- directed behavior that satisfies human needs directed behavior that satisfies human needs•• Need: feeling of deficit or lacking Need: feeling of deficit or lacking•• Goal-directed behavior: one that people use with the Goal-directed behavior: one that people use with the intention of satisfying a need intention of satisfying a need Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 16. Work Motivation and the National Context•• Reinforcement: reactions to a person’s behavior that Reinforcement: reactions to a person’s behavior that encourage the person to continue the behavior encourage the person to continue the behavior •• E.g., bonus pay to encourage behavior E.g., bonus pay to encourage behavior•• Punishment: consequences of a person’s behavior that Punishment: consequences of a person’s behavior that discourage the behavior discourage the behavior •• E.g., docking pay to discourage behavior E.g., docking pay to discourage behavior Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 17. Exhibit 14.6: The Basic WorkMotivation Process and theNational Context Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 18. National Context and Work Motivation•• Culture and social institution influence Culture and social institution influence -- They influence the priority people attach to work They influence the priority people attach to work -- They define what behaviors are legitimate ways to They define what behaviors are legitimate ways to satisfy goals satisfy goals -- National context also influences reactions to goal- National context also influences reactions to goal- directed behaviors at work directed behaviors at work Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 19. Theories of Work Motivation in the Multinational Context•• Two basic types of motivational theories Two basic types of motivational theories -- Need theory: assumes that people can satisfy basic Need theory: assumes that people can satisfy basic human needs in the work setting human needs in the work setting -- Process theory: arising from needs and values Process theory: arising from needs and values combined with an individual’s beliefs regarding the combined with an individual’s beliefs regarding the work environment work environment Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 20. Theories of Work Motivation in the Multinational Context•• Four need theories of motivation Four need theories of motivation -- Maslow’s Hierarchy of Needs Maslow’s Hierarchy of Needs -- ERG theory ERG theory -- Motivator-hygiene theory Motivator-hygiene theory -- Achievement motivation theory Achievement motivation theory Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 21. Exhibit 14.7: Need Theories ofMotivation Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 22. Maslow’s Hierarchy of Needs Theory•• States that people have five basic types of needs States that people have five basic types of needs -- Physiological, Security, Affiliation, Esteem, and Physiological, Security, Affiliation, Esteem, and Self-actualization Self-actualization•• The needs follow a basic hierarchy The needs follow a basic hierarchy•• People first seek to satisfy lower needs People first seek to satisfy lower needs•• Once lower need is satisfied, it no longer motivates Once lower need is satisfied, it no longer motivates•• People try to satisfy higher needs People try to satisfy higher needs Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 23. Exhibit 14.8: Maslow’s Hierarchy ofNeeds and Country Level Measures Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 24. Alderfer’s ERG Theory•• Simplified hierarchy of needs, including existence Simplified hierarchy of needs, including existence needs, relatedness needs, and growth needs needs, relatedness needs, and growth needs -- Frustration of a need motivates behavior to satisfy Frustration of a need motivates behavior to satisfy the need. the need. -- People seek to satisfy higher and lower level needs. People seek to satisfy higher and lower level needs. -- If people cannot satisfy higher needs, they will try to If people cannot satisfy higher needs, they will try to satisfy lower level needs. satisfy lower level needs. Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 25. Motivator-Hygiene Theory•• Assumption that a job has two basic characteristics: Assumption that a job has two basic characteristics: motivators and hygiene factors motivators and hygiene factors -- Job content—motivating factors Job content—motivating factors •• E.g., challenging job E.g., challenging job -- Job context—hygiene factors Job context—hygiene factors •• E.g., good benefits E.g., good benefits Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 26. Achievement-motivation Theory•• Suggestion that only some people have the need to Suggestion that only some people have the need to win in competitive situations or to exceed a standard of win in competitive situations or to exceed a standard of excellence excellence -- Three key needs: achievement, affiliation, and power Three key needs: achievement, affiliation, and power -- High achievement people have needs to win and to High achievement people have needs to win and to set own goals and seek challenging situations set own goals and seek challenging situations Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 27. Needs and the National Context: Lessons•• People from different nations do not give the same People from different nations do not give the same priorities to the needs that might be satisfied at work priorities to the needs that might be satisfied at work•• Even with similar needs, they may not give the same Even with similar needs, they may not give the same level of importance of satisfying these needs level of importance of satisfying these needs Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 28. Exhibit 14.9: Rankings of theImportance of Job-Related Sources ofNeed Satisfaction for Seven Countries Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 29. Exhibit 14.10: Hofstede’s Dimensionsof National Culture and Motivators atWork Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 30. Applying Need Theories in Multinational Settings•• Identify the basic functions of work in the national or Identify the basic functions of work in the national or local culture local culture•• Identify the needs considered most important by Identify the needs considered most important by workers in the national or local culture workers in the national or local culture•• Sources of need fulfillment may differ for the same Sources of need fulfillment may differ for the same needs needs•• Understand limitations of available jobs to satisfy Understand limitations of available jobs to satisfy needs needs Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 31. Process and Reinforcement Theories of Motivation: Expectancy Theory•• Expectancy theory Expectancy theory -- Assumes that part of motivation is an individual’s Assumes that part of motivation is an individual’s desire to satisfy needs desire to satisfy needs -- People’s beliefs regarding how much their efforts at People’s beliefs regarding how much their efforts at work will eventually satisfy their needs work will eventually satisfy their needs Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 32. Expectancy Theory•• Three factors Three factors -- Expectancy: an individual’s belief that his or her Expectancy: an individual’s belief that his or her effort will lead to some result effort will lead to some result -- Valence: the value attached to the outcome of efforts Valence: the value attached to the outcome of efforts -- Instrumentality: the links between early and later Instrumentality: the links between early and later results of the work effort results of the work effort•• Motivation = Expectancy x Valence x Instrumentality Motivation = Expectancy x Valence x Instrumentality Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 33. Applying Expectancy Theory in Multinational Settings•• Two key issues Two key issues -- Identify valued outcomes of work Identify valued outcomes of work -- Use culturally appropriate ways to convince Use culturally appropriate ways to convince employees that their efforts will lead to desirable employees that their efforts will lead to desirable ends ends Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 34. Equity Theory•• Focuses on the fairness that people perceive in the Focuses on the fairness that people perceive in the rewards that they receive for their efforts at work rewards that they receive for their efforts at work -- There are no absolute standards for fairness in the There are no absolute standards for fairness in the input/output (effort/reward) equation. input/output (effort/reward) equation. -- People compare themselves to others and adjust People compare themselves to others and adjust their input (effort). their input (effort). Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 35. Applying Equity Theory in Multinational Settings•• Equity norms vary Equity norms vary•• Three principles of allocating rewards Three principles of allocating rewards -- The principle of equity (based on contributions) The principle of equity (based on contributions) •• Prevails in individualistic cultures Prevails in individualistic cultures -- The principle of equality (based on equal division of The principle of equality (based on equal division of rewards) rewards) •• More likely in collectivistic cultures More likely in collectivistic cultures -- The principle of need (based on individual needs) The principle of need (based on individual needs) Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 36. Exhibit 14.11: Rewards from Peers forContributions to a Student GroupProject Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 37. Goal Setting Theory•• Assumption that the mere existence of a goal is Assumption that the mere existence of a goal is motivating motivating•• The principles of goal setting The principles of goal setting -- Set clear and specific goals Set clear and specific goals -- Assign difficult but achievable goals Assign difficult but achievable goals -- Increase employee acceptance of goals Increase employee acceptance of goals -- Provide incentives to achieve goals Provide incentives to achieve goals -- Give feedback on goal attainment Give feedback on goal attainment Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 38. Applying Goal-Setting Theory in Multinational Settings•• Goal setting works to some degree, regardless of Goal setting works to some degree, regardless of location. location.•• Cultural expectations vary—managers must know Cultural expectations vary—managers must know -- Is it better to set goals for groups or for Is it better to set goals for groups or for individuals? individuals? Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 39. Exhibit 14.12: Cultural Effects onPerformance by the Degree ofParticipation in Goal Setting Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 40. Reinforcement Theory•• Operant conditioning: model proposes that behavior is Operant conditioning: model proposes that behavior is a function of its consequences a function of its consequences•• Positive reinforcement—response with rewarding Positive reinforcement—response with rewarding consequence consequence -- Pleasurable consequence = behavior continues Pleasurable consequence = behavior continues•• Punishment—negative consequence Punishment—negative consequence -- Unpleasant consequence = behavior stops Unpleasant consequence = behavior stops Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 41. Exhibit 14.13: Management Examplesof Operant-Conditioning Process andTypes of Consequences Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 42. Applying Reinforcement Theory in Multinational Settings•• Positive reinforcement works Positive reinforcement works•• Difficulty is in identifying appropriate rewards as Difficulty is in identifying appropriate rewards as reinforcers reinforcers•• National context defines acceptable and legitimate National context defines acceptable and legitimate rewards rewards Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 43. Exhibit 14.14: Effects of PositiveReinforcement and Types of Rewardsin a Russian Cotton Mill Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 44. Multinational Applications of Process/Reinforcement Theories•• Expectancy theory: key is identifying nationally Expectancy theory: key is identifying nationally appropriate rewards that have positive valence appropriate rewards that have positive valence•• Equity theory: assess meaning and principle of equity Equity theory: assess meaning and principle of equity in national context in national context•• Goal-setting theory: should goals be assigned to Goal-setting theory: should goals be assigned to groups or individuals? groups or individuals?•• Reinforcement theory: what people value at work will Reinforcement theory: what people value at work will influence the types of reinforcers that can be used influence the types of reinforcers that can be used Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 45. Motivation and Job Design: U.S. Perspectives•• The job-characteristic model approach The job-characteristic model approach -- Work is more motivating when managers enrich core Work is more motivating when managers enrich core job characteristics, such as by increasing number of job characteristics, such as by increasing number of skills a job requires. skills a job requires. Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 46. Job-Characteristics Model•• Three critical psychological states as motivating Three critical psychological states as motivating -- A person must believe that his or her job is A person must believe that his or her job is meaningful. meaningful. -- A person must believe that he or she is responsible A person must believe that he or she is responsible or accountable for the outcome of work. or accountable for the outcome of work. -- A person must understand how well he or she has A person must understand how well he or she has performed. performed. Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 47. Core Characteristics of Job•• Skill variety Skill variety•• Task identity Task identity•• Task significance Task significance•• Autonomy Autonomy•• Feedback Feedback Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 48. Exhibit 14.15: A Motivating Job in theJob-Characteristics Model Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 49. Motivation and Job Design: European Perspective•• Sociotechnical systems (STS) approach: focuses on Sociotechnical systems (STS) approach: focuses on designing motivating jobs by blending the social designing motivating jobs by blending the social system with different technologies system with different technologies•• Autonomous work group: team or unit that has nearly Autonomous work group: team or unit that has nearly complete responsibility for a particular task complete responsibility for a particular task•• Team’s task rather than individual task is focus of job Team’s task rather than individual task is focus of job enrichment enrichment Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 50. Choosing Job-Enrichment Techniques in Multinational Settings•• Distinction between individualistic and collectivist Distinction between individualistic and collectivist cultures should determine the choice of job-enrichment cultures should determine the choice of job-enrichment -- U.S.—individual U.S.—individual -- Japan—team Japan—team•• Social loafing: term used when people expend less Social loafing: term used when people expend less effort when they work in groups effort when they work in groups Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 51. Exhibit 14.16: Comparing thePerformance of Chinese, U.S., andIsraeli Managers Working Alone and inGroups Copyright© 2007 South-Western/Thomson Learning All rights reserved
  • 52. Conclusion•• Motivating workers in diverse cultural settings is a constant Motivating workers in diverse cultural settings is a constant challenge for multinational managers challenge for multinational managers•• Chapter addresses several important issues related to Chapter addresses several important issues related to motivation motivation•• Chapter first examines basic differences in how people view Chapter first examines basic differences in how people view various work aspects various work aspects•• Chapter reviews basic processes and classic theories of Chapter reviews basic processes and classic theories of motivation motivation•• Each multinational must find ways to motivate their workers to Each multinational must find ways to motivate their workers to stay competitive stay competitive Copyright© 2007 South-Western/Thomson Learning All rights reserved

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