MULTINATIONAL COMPANIES CHAPTER 13 MOTIVATION IN MULTINATIONAL COMPANIES

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

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

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

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

EXHIBIT 13.2 DIFFERENCES IN WORK CENTRALITY

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

WORK MOTIVATION AND THE NATIONAL CONTEXT

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

Motivation includes more than satisfying needs Reactions to behaviors reinforcement punishment

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

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

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

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

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

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

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

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

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

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

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

EXPECTANCY THEORY Motivation = Expectancy X Valence X Instrumentality

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

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

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

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

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

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?

EXHIBIT 13.9 CULTURAL EFFECTS ON GOAL SETTING

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

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

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

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

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

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

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

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