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