14 Motivation in Multinational Companies

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?

How Important is Work in People’s Lives? 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. 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.

What Do People Value in Work? 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.

Exhibit 14.4: Importance Rankings of Work Characteristics in Nine Countries

What Do People Value in Work? All people hope to receive certain benefits from work. Societies differ in the degree to which they regard work as an obligation to society. 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.

The Basic Work-Motivation Process 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. Reinforcement means that the consequences that follow a person’s behavior encourage the person to continue the behavior. Punishment means that the consequences that follow a person’s behavior discourage the behavior.

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

National Context and Work Motivation Cultural values, norms & supporting social institutions influence the priority that people attach to work. The national context influences reactions to goal-directed behaviors at work. Managers can use work-motivation theories to develop systematic approaches to motivating employees.

Theories of Work Motivation in the Multinational Context The Need Theories assume that people are motivated to work because their jobs satisfy basic needs and higher-level needs. These 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

Exhibit 14.6: Need Theories of Motivation

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)

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.

Exhibit 14.8: 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 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.

Process and Reinforcement Theories of Motivation: Expectancy Theory Process Theories assume that motivation arises from needs and values combined with an individual’s beliefs regarding the work environment. Expectancy Theory: Motivation = Expectancy x Valence x Instrumentality. 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.

Process and Reinforcement Theories of Motivation: Equity Theory Equity Theory focuses on the fairness that people perceive in the rewards that they receive for their efforts at work. 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.

Process and Reinforcement Theories of Motivation: Goal Setting Theory Goal-Setting Theory assumes that people want to achieve goals; the existence of a goal is motivating. Goal-Setting works to some degree, anywhere. Cultural expectations vary on 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.

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

Process and Reinforcement Theories of Motivation: Reinforcement Theory Reinforcement Theory focuses on operant conditioning, a model which proposes that behavior is a function of its consequences. The difficulty is in identifying appropriate rewards as reinforcers to a diverse group. The national context defines acceptable and legitimate rewards.

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.

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.

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

Choosing Job-Enrichment Techniques in Multinational Settings In individualistic cultures, performance drops with the use of teams. Social Loafing: People expend less effort when they work in groups. 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.