Chapter 13

Chapter 13
Motivation in Multinational
Companies

Copyright© 2007 Thomson Learning All rights reserved

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

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


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


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


Exhibit 14.1: Differences in Work
Centrality in Seven Countries


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


Exhibit 14.2: Levels of Work
Obligations in Various
Societies


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


Exhibit 14.3: Extrinsic Work
Values for Selected Countries


Exhibit 14.4: Intrinsic Work
Values for Selected Countries


Exhibit 14.5: Priorities Given to
Different Job Characteristics in
Selected Countries


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

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


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


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


Exhibit 14.6: The Basic Work
Motivation Process and the
National Context


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


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


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


Exhibit 14.7: Need Theories of
Motivation


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


Exhibit 14.8: Maslow’s Hierarchy of
Needs and Country Level Measures


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.


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


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


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


Exhibit 14.9: Rankings of the
Importance of Job-Related Sources of
Need Satisfaction for Seven Countries


Exhibit 14.10: Hofstede’s Dimensions
of National Culture and Motivators at
Work


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

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


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


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


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).


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)

Exhibit 14.11: Rewards from Peers for
Contributions to a Student Group
Project


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

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?


Exhibit 14.12: Cultural Effects on
Performance by the Degree of
Participation in Goal Setting


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


Exhibit 14.13: Management Examples
of Operant-Conditioning Process and
Types of Consequences


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


Exhibit 14.14: Effects of Positive
Reinforcement and Types of Rewards
in a Russian Cotton Mill


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

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.


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.


Core Characteristics of Job

•• Skill variety
Skill variety
•• Task identity
Task identity
•• Task significance
Task significance
•• Autonomy
Autonomy
•• Feedback
Feedback


Exhibit 14.15: A Motivating Job in the
Job-Characteristics Model


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


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


Exhibit 14.16: Comparing the
Performance of Chinese, U.S., and
Israeli Managers Working Alone and in
Groups


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

Chapter 13

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Chapter 13