Motivation in Multinational Companies

1. Motivation in Multinational Companies Chapter 13, part 2

2. Outline • Process theories of motivation • Expectancy theory • Equity theory • Goal-setting theory • Reinforcement theory • Multinational applications of these theories • Motivation and job design • Job characteristics model • Sociotechnical systems approach

3. Expectancy Theory • Three factors • Expectancy: an individual’s belief that his or her effort will lead to some desired result • Valence: the value that the person attaches to the outcome of efforts. How important is this? • Instrumentality: the links between early and later results of the work effort (long-term benefits) • Motivation = Expectancy x Valence x Instrumentality

4. Applying Expectancy Theory in Multinational Settings • Two key issues • Identify valued outcomes of work • Use culturally appropriate ways to convince employees that their efforts will lead to desirable ends

5. Equity Theory • Focuses on the fairness that people perceive in the rewards that they receive for their efforts at work • There are no universal standards for fairness in the input/output (effort/reward) equation. • People compare themselves to others and adjust their input (effort).

6. Applying Equity Theory in Multinational Settings • Beliefs about equity vary – what is fair? • Three principles of allocating rewards • The principle of equity (based on contributions) • Prevails in individualistic cultures • The principle of equality (based on equal division of rewards) • More likely in collectivistic cultures • The principle of need (based on individual needs)

7. Applying Equity Theory in Multinational Settings (2) • If expatriates are paid much more than host-country nationals, host-country employees may see this as unfair. • The perception of inequity can be reduced by • Paying host-country employees more than their peers in other companies • Treating host-country employees with respect • Explaining why expatriate employees are needed, at least during the early years of an international venture • Providing opportunities for host-country nationals to advance

8. Goal Setting Theory • Assumption that having a goal is motivating • The principles of goal setting • Set clear and specific goals • Assign challenging but achievable goals • Increase employee acceptance of goals • Provide incentives to achieve goals • Give feedback on goal attainment • Goal setting theory works in most cultures

9. Goal Setting Theory (2) • In collectivist cultures, it may be wise to set goals for work groups, not individuals • In participative goal setting, individuals or work groups have a role in setting the goals. • In collectivist cultures, it may work better to have work groups, rather than individuals, propose goals • In Norway and Great Britain, workers prefer that management work with union officials to set goals

10. Reinforcement Theory • Operant conditioning: model proposes that behavior is a function of its consequences • Does not focus on a psychological process that affects motivation • Positive reinforcement—response with rewarding consequence • Pleasurable consequence = behavior continues • Punishment—negative consequence • Unpleasant consequence = behavior stops

11. Exhibit 13.12: Management Examples of Operant-Conditioning Process and Types of Consequences

12. Applying Reinforcement Theory in Multinational Settings • Positive reinforcement works better than negative reinforcement • National context defines acceptable and legitimate rewards • In the long term, punishment is less effective than reinforcement. • Punishment causes resentment and can produce undesirable consequences for the company. • In low-context cultures (English-speaking countries, most of Europe), extinction takes more time to work than reinforcement or punishment • Extinction is commonly used in Japan and Korea (high context)

13. Multinational Applications of Process/Reinforcement Theories • Expectancy theory: key is identifying nationally appropriate rewards that have positive valence • Equity theory: assess meaning and principle of equity in national context • Goal-setting theory: should goals be assigned to groups or individuals? • Reinforcement theory: what people value at work will influence the types of reinforcers that can be used

14. Job-Characteristics Model • Three critical psychological states as 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.

15. Core Characteristics of Jobs • Skill variety: the job requires the use of different skills and abilities • Task identity: allowing a person to complete a "whole piece of work" • Task significance: increases when a job has important effects on other people • Autonomy: people can control their job procedures and schedules (when tasks are done) • Feedback: people get timely information on their performance

16. Exhibit 13.14: A Motivating Job in the Job-Characteristics Model

17. Motivation and Job Design: European Perspective • Sociotechnical systems (STS) approach: focuses on designing motivating jobs by blending the social system with different technologies • Autonomous work group: team or unit that has nearly complete responsibility for a particular task • Team’s task is focus of job enrichment and job characteristics

18. Choosing Job-Enrichment Techniques in Multinational Settings • Distinction between individualistic and collectivist cultures should determine the choice of job-enrichment • U.S.—individual • Japan—team • Social loafing: term used when people expend less effort when they work in groups in individualistic cultures

19. Exhibit 13.15: Comparing the Performance of Chinese, U.S., and Israeli Managers Working Alone and in Groups