CHAPTER 13 MOTIVATION IN MULTINATIONAL COMPANIES

1. CHAPTER 13 MOTIVATION IN MULTINATIONAL COMPANIES

2. 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

3. 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

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

6. 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

7. EXHIBIT 13.2 DIFFERENCES IN WORK CENTRALITY

8. 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

10. WORK MOTIVATION AND THE NATIONAL CONTEXT

11. 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

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

13. See Exhibit 13.4 (next) for the basic work motivation process and the national context

15. 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

16. THEORIES OF WORK MOTIVATION IN THE MULTINATIONAL CONTEXT • Two basic types of motivation theories: • need theories • process theories • Applications to multinational context follow

17. NEED THEORIES • Assume that working can satisfy basic human needs • Four popular need theories: Maslow’s hierarchy of needs, ERG theory, Motivator-Hygiene theory, and Achievement Motivation theory

18. 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

19. 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

20. MOTIVATOR-HYGIENE THEORY • Job content = motivating factors • Job context = hygiene factors • Only job content factors truly motivating

21. 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

22. NEEDS AND THE NATIONAL CONTEXT • Need priorities differ by country • Even with similar ranks, level of importance differs by country

23. 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

24. 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

25. EXPECTANCY THEORY • Motivation = Expectancy X Valence X Instrumentality

26. 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

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

28. 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

29. GOAL SETTING THEORY • Premise: People want to achieve goals • Effective Goals: • clear, specific, and difficult but achievable

30. 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

31. 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?

32. EXHIBIT 13.9 CULTURAL EFFECTS ON GOAL SETTING

33. REINFORCEMENT THEORY • Behavior is a function of its consequences • Pleasurable consequence = behavior continues • Unpleasant consequence = behavior stops • Reinforcement, extinction, and punishment

34. APPLYING REINFORCEMENT THEORY IN MULTINATIONAL SETTINGS • Positive reinforcement • Identify appropriate rewards as reinforcers • National context defines acceptable/legitimate rewards

35. MOTIVATION AND JOB DESIGN: U.S. AND EUROPEAN PERSPECTIVES • Focus on nature of jobs • Psychological effects of tasks on workers

36. A U.S. APPROACH: THE JOB CHARACTERISTICS MODEL • See Exhibit 13.12 next

38. A EUROPEAN APPROACH: SOCIOTECHNICAL SYSTEMS • Technology and the social needs of workers • The autonomous work group • Team tasks the focus job enrichment

39. 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

40. PROBLMES OF TEAM WORK IN INDIVIDUALISTIC CULTURES • Social loafing • No responsibility for group outcomes • Individual work/interests have priority over group's

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