Motivation in Multinational Companies

1. 14 Motivation in Multinational Companies

2. Learning Objectives (1 of 2) • Recognize how people from different nations perceive the basic functions of working. • Explain how people from different nations view the importance of working. • Understand how the national context affects the basic processes of work motivation.

3. Learning Objectives (2 of 2) • Apply common theories of work motivation in different national contexts. • Design jobs for high motivational potential in different national cultures.

4. Work Values and the Meaning of Work • Before we can understand how to motivate or lead people from different national cultures, we must have some knowledge about what work means to people from different societies. • Two basic questions must be answered: • How important is work in people’s lives? • What do people value in work?

5. How Important is Work in People’s Lives? (1 of 2) • Work Centrality is the degree of importance that work has in the life of an individual at a given time, as compared to other activities such as leisure and family. • Higher levels of work centrality are closely correlated with the average number of hours worked per week. • High levels of work centrality may lead to dedicated workers and effective organizations.

6. How Important is Work in People’s Lives? (2 of 2) • Work Obligation Norms are the degree to which work is seen as an obligation or duty in a society. • These societies are more likely to have individuals adhering to this norm by working longer. • Many of the emerging economies show very high levels of work obligation norms.

7. Exhibit 14.1: Levels of Work Obligation Norms in Various Societies

8. What Do People Value in Work? (1 of 3) • Two important work values are: • People with Extrinsic Work Values express a preference for the security aspect of jobs such as income, job security, and less demanding work. • Those with Intrinsic Work Values express preferences for openness to change, the pursuit of autonomy, growth, creativity, and the use of initiative at work.

9. Exhibit 14.2: Preference: Extrinsic Work Values

10. Exhibit 14.3: Preference: Intrinsic Work Values

11. Exhibit 14.4: Importance Rankings of Work Characteristics in Nine Countries

12. What Do People Value in Work? (2 of 3) • In some societies, work is very central and absorbs much of a person’s life. • All people hope to receive certain benefits from work. • Societies differ in the degree to which they regard work as an obligation to society. • Many of the emerging economies that value extrinsic work values such as income and job security also place high value on intrinsic work values.

13. What Do People Value in Work? (3 of 3) • The first key to successful motivational strategies in multinational companies is understanding the differences regarding how people view the functions of work, work centrality, and the priorities given to different job characteristics.

14. The Basic Work-Motivation Process (1 of 2) • Motivation is a psychological process resulting in goal-directed behavior that satisfies human needs • A Need is a feeling of deficit or lacking that all people experience at some time. • A Goal-directed Behavior is one that people use with the intention of satisfying a need.

15. The Basic Work-Motivation Process (2 of 2) • Reinforcement means that the consequences that follow a person’s behavior encourage the person to continue the behavior. • Example: bonus pay to encourage behavior • Punishment means that the consequences that follow a person’s behavior discourage the behavior. • Example: docking pay to discourage behavior

16. Exhibit 14.5: The Basic Work Motivation Process and the National Context

17. National Context and Work Motivation • Cultural values, norms & supporting social institutions influence the priority that people attach to work. • Example: Early education in collectivist societies encourage people to develop a need to belong to groups. • The national context influences reactions to goal-directed behaviors at work. • Example: A Japanese worker who brags about his performance will be sanctioned by his work group.

18. Theories of Work Motivationin the Multinational Context (1 of 2) • Managers can use work-motivation theories to develop systematic approaches to motivating employees. • There are two basic types of motivational theories: • The Need Theory assumes that people are motivated to work because their jobs satisfy basic needs and higher-level needs. • The Process Theory assumes that motivation arises from needs and values combined with an individual’s beliefs regarding the work environment.

19. Theories of Work Motivationin the Multinational Context (2 of 2) • The Need Theories of motivation have the most international application. • There are four need theories of motivation: • Maslow’s Hierarchy of Needs • ERG theory • Motivator-hygiene theory • Achievement motivation theory

20. Exhibit 14.6: Need Theories of Motivation

21. Maslow’s Hierarchy of Needs (1 of 2) • Maslow offered the most famous need theory, ranking five basic types of needs (lowest to highest): • Physiological (food, water, basic survival) • Security (safety, avoidance of threats) • Affiliation (being loved, having friends, groups) • Esteem (respect, recognition by others, self-worth) • Self-actualization (maximize personal achievement)

22. Maslow’s Hierarchy of Needs (2 of 2) • People first seek to satisfy lower needs, then higher ones. • Once a lower need is satisfied, it no longer motivates. • Example: If your base pay is adequate for survival, it no longer has motivational value. • Then other characteristics of the work situation become motivational, such as working in teams to meet affiliation needs.

23. Alderfer’s ERG Theory • Alderfer’s simplified hierarchy of three needs includes existence needs, relatedness needs, & growth needs. • In ERG theory, frustration of a need motivates behavior to satisfy the need. • A person who cannot satisfy a higher need will seek to satisfy lower-level needs. • Example: If the satisfaction of growth needs is impossible on the job, relational needs become the prime motivator.

24. Motivator-Hygiene Theory • The Motivator-Hygiene Theory assumes that a job has two characteristics: motivators and hygiene factors. • Motivating Factors are the characteristics of jobs that allow people to fulfill higher-level needs. • Example: a challenging job for achievement • Hygiene Factors are characteristics of jobs that allow people to fulfill lower-level needs. • Example: good benefits and working conditions that satisfy security needs.

25. Achievement-Motivation Theory • Achievement-Motivation Theory suggests that only some people (10% in U.S.)have the need to win in competitive situations or to exceed a standard of excellence. • High achievement-motivated people set their own goals and seek challenging situations, but avoid those that are too difficult. • High achievers desire immediate feedback so that they know how they are performing at each step.

26. Needs and the National Context • Work related needs may be “grouped” in ways that match broad groups proposed by Need theories. • People from different nations do not give the same priorities to the needs that might be satisfied at work. • Even with similar needs, they may not give the same level of importance of satisfying these needs. • Multinational managers can use need satisfaction as a motivational tool if they take into account the particular needs that people in that nation seek.

27. Exhibit 14.7: Rankings of the Importance of Job-Related Sources of Need Satisfaction for Seven Countries

28. Exhibit 14.8: Hofstede’s Dimensions of National Culture and Motivators at Work

29. 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. • Note that sources of need fulfillment may differ for the same needs. • Understand the limitations of available jobs to satisfy needs.

30. Process and Reinforcement Theories of Motivation: Expectancy Theory • Expectancy Theory is a view of motivation that is more complex than simple need satisfaction: • Work motivation is a function not only of a person’s needs or values, but also of the person’s beliefs regarding what happens if you work hard. • Motivation includes a person’s desire to satisfy needs, but the level of motivation also depends on the person’s belief regarding how much - or if - his efforts will eventually satisfy his needs.

31. Expectancy Theory Equation • Three factors make up Expectancy Theory: • Expectancy: an individual’s belief that his or her effort will lead to some result • Valence: the value attached to the outcome of efforts • Instrumentality: the links between early and later results of the work effort • Motivation = Expectancy x Valence x Instrumentality

32. Applying Expectancy Theory in Multinational Settings • There are two key issues: • Identify which outcomes people value in a particular national or cultural setting; the multinational manager must find and use rewards with positive valance for employees. • Find culturally appropriate ways to convince employees that their efforts will lead to desirable ends.

33. Equity Theory • Equity Theory focuses on the fairness that people perceive in the rewards that they receive for their efforts at work. • People have no absolute standards for fairness regarding their efforts, but also compare themselves to others. • Example: If two people have the same job and experience, but not the same pay, one is in overpayment equity, and the other in underpayment.

34. Applying Equity Theory in Multinational Settings • Three principles of allocating rewards, depending on cultural settings: • Equity norms prevail in individualistic cultures • Equality norms prevail over equity norms in collectivist cultures. • The principle of need may prevail over equity in certain conditions.

35. Exhibit 14.9: Rewards from Peers for Contributions to a Student Group Project

36. Goal Setting Theory • Goal-Setting Theory assumes that people want to achieve goals; the existence of a goal is motivating. • To motivate, follow the principles of goal setting: • Set clear and specific goals. • Assign difficult but achievable goals. • Increase employee acceptance of goals. • Provide incentives to achieve goals. • Give feedback on goal attainment.

37. Applying Goal-Setting Theory in Multinational Settings • Goal-Setting works to some degree, anywhere. • Cultural expectations vary re who sets goals, and it is better to set goals for groups or individuals. • In individualistic cultures, setting individual goals may be more effective than group goals. • In collectivist cultures, workers will want to participate in goal-setting; participation may have a greater chance of enhancing workers’ commitment to the goal.

38. Exhibit 14.10: Cultural Effects on Performance by the Degree of Participation in Goal Setting

39. Reinforcement Theory • Reinforcement Theory focuses on operant conditioning, a model which proposes that behavior is a function of its consequences. • If a pleasurable consequence follows certain behavior, the behavior continues. (positive reinforcement) • If a negative consequence follows certain behavior, the behavior stops. (negative reinforcement)

40. Exhibit 14.11: Examples of Operant-Conditioning Process and Types of Consequences

41. Applying Reinforcement Theory in Multinational Settings • For observable behaviors, most U.S. studies suggest that positive reinforcement works. • The difficulty is in identifying appropriate rewards as reinforcers to a diverse group. • The national context defines acceptable and legitimate rewards. • Germany: pay and benefits not available as rewards • Japan: Public praise may be embarrassing.

42. Key Points in Multinational Applications of Process/Reinforcement Theories • Expectancy Theory: The key is to identify nationally appropriate rewards that have positive valence. • Equity Theory: Assess the meaning and principle of equity in the national context. • Goal-setting Theory: Should goals be group/individual? Should workers/leaders participate in goal setting? • Reinforcement Theory: The institutional environment and what people value will affect the types of available rewards in a society.

43. Motivation and Job Design: A U.S. Perspective • A U.S. approach: The Job-Characteristics Model • The most popular U.S. approach is the Job Characteristics Model: Work is more motivating when managers enrich core job characteristics, as by increasing number of skills a job requires.

44. The Job-Characteristics Model • Three critical psychological states are motivating: • A person must believe that his or her job is meaningful. • A person must believe that he or she is responsible or accountable for the outcome of work. • A person must understand how well he or she has performed.

45. Core Characteristics of Job • The core job characteristics that lead to motivating psychological states are: • Skill variety • Task identity • Task significance • Autonomy • Feedback

46. Exhibit 14.12: A Motivating Job in the Job-Characteristics Model

47. Motivation and Job Design: A European Perspective • The Sociotechnical Systems (STS) approach attempts to mesh both modern technology and the social needs of workers, but does not consider them as individuals. • Uses an Autonomous Work Group: A team or unit that has nearly complete responsibility for a particular task. • The STS approach builds into a job many of the same motivational job characteristics, but the team’s task, not individual tasks, become the focus of enrichment.

48. Choosing Job-Enrichment Techniques in Multinational Settings (1 of 2) • Experts recommend: • a team focus on job enrichment in collectivist cultures (Japan) • an individual focus in individualistic cultures (US) • In individualistic cultures, performance drops with the use of teams. • Social Loafing: People expend less effort when they work in groups.

49. Choosing Job-Enrichment Techniques in Multinational Settings (2 of 2) • Why Social Loafing in individualistic cultures? • People do not feel responsible for group outcomes. • They believe the group will take up the slack. • They give their own work and interests priority over those of the group.

50. Exhibit 14.13: Comparing the Performance of Chinese, U.S., and Israeli Managers Working Alone and in Groups