1. MULTINATIONAL COMPANIES
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 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