chapter 13 motivation in multinational companies
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CHAPTER 13
MOTIVATION
IN
MULTINATIONAL COMPANIES
INTRODUCTIONINTRODUCTION
• Multinational managers Multinational managers need to motivate employees need to motivate employees with diverse backgroundswith diverse backgrounds
• Need to understandNeed to understand•why do people work?why do people work?•what do people value in work?what do people value in work?
• functions and work centralityfunctions and work centrality
WHY DO PEOPLE WORK?WHY DO PEOPLE WORK?
• The major functions of workThe major functions of work•providing needed incomeproviding needed income•secure jobsecure job•contact with other peoplecontact with other people•feeling of accomplishmentfeeling of accomplishment
• Emphasis differs by countryEmphasis differs by country
Excerpts from Exhibit 13.1 Excerpts from Exhibit 13.1 (next) shows the major (next) shows the major
functions of work for selected functions of work for selected countries countries
0% 20% 40% 60% 80% 100%
Norway
Japan
Philippines
Brazil
USA
Mexico
Nigeria
S Africa
Russia
Lithuania
Distribution of Top Choice
Needed Income
Secure Job
Contact with People
Feeling ofAccomplishment
WORK CENTRALITYWORK CENTRALITY
• Work versus other activitiesWork versus other activities• Higher levels of work centrality Higher levels of work centrality
also match average number of also match average number of hours worked per weekhours worked per week
• High levels of work centrality High levels of work centrality may lead to dedicated workersmay lead to dedicated workers
EXHIBIT 13.2 DIFFERENCES EXHIBIT 13.2 DIFFERENCES IN WORK CENTRALITYIN WORK CENTRALITY
0 0.5 1 1.5 2
Work Centrality
Britian
Netherlands
U.S.A.
Japan
IMPORTANCE OF WORKIMPORTANCE OF WORK• What people value in their What people value in their
current job current job • generous holidays (#1)generous holidays (#1)• use initiativeuse initiative• good work hoursgood work hours• respected jobrespected job• responsible jobresponsible job
• See Exhibit 13.3 nextSee Exhibit 13.3 next
U.S.A.1. G ENEROUS
H OLIDAYS
2. J OB R ESPECTED
3. G OOD H OURS
4. U SE INITIATIVE
TURKEY
1. G ENEROUS
H OLIDAYS
2. I NTERESTING
JOB
3. R ESPONSIBILITY
4. U SE INITIATIVE
GERMANY
1. G ENEROUS
H OLIDAYS
2. J OB R ESPECTED
3. G OOD H OURS
4. R ESPONSIBILITY
CHINA
1. G ENEROUS
H OLIDAYS
2. R ESPONSIBILITY
3. U SE INITIATIVE
4. I NTERESTING
JOB
INDIA
1. G ENEROUS
H OLIDAYS
2. U SE INITIATIVE
3. I NTERESTING
JOB
4. G OOD H OURS
RUSSIA
1. R ESPONSIBILITY
2. U SE INITIATIVE
3. G ENEROUS
H OLIDAYS
4. G OOD H OURS
N IGERIA
1. G ENEROUS
H OLIDAYS
2. G OOD H OURS
3. U SE INITIATIVE
4. J OB R ESPECTED
PERU
1. G ENEROUS
H OLIDAYS
2. I NTERESTING
JOB
3. G OOD H OURS
4. A CHIEVE
S OMETHING
WORK MOTIVATION AND THE WORK MOTIVATION AND THE NATIONAL CONTEXT NATIONAL CONTEXT
THE BASIC WORK THE BASIC WORK MOTIVATION PROCESSMOTIVATION PROCESS
• Motivation: psychological Motivation: psychological process that results in process that results in goal-directed behavior that goal-directed behavior that satisfy human needssatisfy human needs
• Needs: a feeling of deficitNeeds: a feeling of deficit •work satisfies many work satisfies many needs - e.g., food and needs - e.g., food and sheltershelter
• Motivation includes more Motivation includes more than satisfying needsthan satisfying needs
• Reactions to behaviors Reactions to behaviors •reinforcement reinforcement •punishmentpunishment
See Exhibit 13.4 (next) for See Exhibit 13.4 (next) for the basic work motivation the basic work motivation process and the national process and the national
context context
NATIONAL C ONTEXTINDIVIDUAL W ORK
MOTIVATION
UNSATISFIED N EEDS
GOAL -D IRECTED
BEHAVIOR TO
SATISFY N EEDS
REINFORCEMENT OR
PUNISHMENT
DEFINES THE
IMPORTANCE OF
D IFFERENT N EEDS
DEFINES L EGITIMATE
BEHAVIORS OF W ORK
DEFINES W HAT ISREWARDED OR
PUNISHED AND H OW
C ONTINUE OR S TOP
BEHAVIORS ; S TAY
OR L EAVE THE
ORGANIZATION
DEFINES R ELATIONSHIP
WITH O RGANIZATION
NATIONAL CONTEXT AND NATIONAL CONTEXT AND WORK MOTIVATIONWORK MOTIVATION
• Culture and supporting Culture and supporting institutions influenceinstitutions influence• the priority people attach to workthe priority people attach to work• types of needs people satisfy at types of needs people satisfy at
workwork• reactions to goal-directed reactions to goal-directed
behaviors at workbehaviors at work
THEORIES OF WORK THEORIES OF WORK MOTIVATION IN THE MOTIVATION IN THE
MULTINATIONAL CONTEXT MULTINATIONAL CONTEXT • Two basic types of Two basic types of
motivation theories:motivation theories:•need theoriesneed theories•process theoriesprocess theories
• Applications to Applications to multinational context multinational context followfollow
NEED THEORIESNEED THEORIES• Assume that working can Assume that working can
satisfy basic human needssatisfy basic human needs• Four popular need theories: Four popular need theories:
Maslow’s hierarchy of needs, Maslow’s hierarchy of needs, ERG theory, Motivator-ERG theory, Motivator-Hygiene theory, and Hygiene theory, and Achievement Motivation Achievement Motivation theorytheory
MASLOW'S HIERARCHY OF MASLOW'S HIERARCHY OF NEEDSNEEDS
• Basic needs: physiological, Basic needs: physiological, security, affiliation, esteem, security, affiliation, esteem, and self-actualizationand self-actualization•a hierarchya hierarchy•once one need is satisfied, once one need is satisfied, it no longer motivatesit no longer motivates
ALDERFER'S ERG THEORYALDERFER'S ERG THEORY
• Simplified hierarchy: growth Simplified hierarchy: growth needs, relatedness needs, needs, relatedness needs, and existence needsand existence needs
• Frustration motivates Frustration motivates behavior to satisfy the needbehavior to satisfy the need
• People seek to satisfy higher People seek to satisfy higher and lower level needsand lower level needs
MOTIVATOR-HYGIENE MOTIVATOR-HYGIENE THEORYTHEORY
• Job content = motivating Job content = motivating factorsfactors
• Job context = hygiene Job context = hygiene factorsfactors
• Only job content factors Only job content factors truly motivatingtruly motivating
ACHIEVEMENT MOTIVATION ACHIEVEMENT MOTIVATION THEORYTHEORY
• Three key needs: Three key needs: achievement, affiliation, and achievement, affiliation, and powerpower
• High achievement people High achievement people have: needs to win and to have: needs to win and to set own goals and seek set own goals and seek challenging situationschallenging situations
NEEDS AND THE NATIONAL NEEDS AND THE NATIONAL CONTEXT CONTEXT
• Need priorities differ by Need priorities differ by countrycountry
• Even with similar ranks, Even with similar ranks, level of importance differs level of importance differs by countryby country
APPLYING NEED THEORIES IN APPLYING NEED THEORIES IN MULTINATIONAL SETTINGS MULTINATIONAL SETTINGS
• Identify:Identify:• basic functions of workbasic functions of work• needs considered most needs considered most
importantimportant• Sources of need fulfillmentSources of need fulfillment• Know available jobs to satisfy Know available jobs to satisfy
needsneeds
PROCESS THEORIES OF PROCESS THEORIES OF MOTIVATIONMOTIVATION
• Three major theories: Three major theories: expectancy theory, equity expectancy theory, equity theory, and goal setting theory theory, and goal setting theory
• More complex than need More complex than need theoriestheories•relate individual beliefs relate individual beliefs
regarding effort, outcomes, and regarding effort, outcomes, and performanceperformance
EXPECTANCY THEORYEXPECTANCY THEORY
• Motivation = Expectancy X Motivation = Expectancy X Valence X InstrumentalityValence X Instrumentality
APPLYING EXPECTANCY APPLYING EXPECTANCY THEORY IN MULTINATIONAL THEORY IN MULTINATIONAL
SETTINGSSETTINGS
• Identify valued outcomes of Identify valued outcomes of workwork
• Use culturally appropriate Use culturally appropriate ways to convince ways to convince employees that their employees that their efforts will lead to efforts will lead to desirable endsdesirable ends
EQUITY THEORYEQUITY THEORY
• Fairness in the Fairness in the input/output equation input/output equation
• Relative rewards vis-a-vis Relative rewards vis-a-vis inputs leads to:inputs leads to:•reduced or increased reduced or increased
contribution to organizationcontribution to organization
APPLYING EQUITY THEORY IN APPLYING EQUITY THEORY IN MULTINATIONAL SETTINGSMULTINATIONAL SETTINGS
• Equity norms varyEquity norms vary• Principles of allocating rewards: Principles of allocating rewards:
• contributions - prevail in individualistic contributions - prevail in individualistic culturescultures
• equality - more likely in collectivist equality - more likely in collectivist culturescultures
• need - more likely in collectivist need - more likely in collectivist culturescultures
GOAL SETTING THEORYGOAL SETTING THEORY
• Premise: People want to Premise: People want to achieve goals achieve goals
• Effective Goals:Effective Goals:•clear, specific, and difficult clear, specific, and difficult
but achievablebut achievable
• For Goals setting to work, For Goals setting to work, managers must:managers must:• increase employee acceptance of increase employee acceptance of
goalsgoals• provide incentives to achieve goals provide incentives to achieve goals • give feedback on goal attainmentgive feedback on goal attainment
Goal setting theory, Goal setting theory, continuedcontinued
APPLYING GOAL SETTING APPLYING GOAL SETTING THEORY IN MULTINATIONAL THEORY IN MULTINATIONAL
SETTINGSSETTINGS• Goal setting works to some Goal setting works to some
degree regardless of degree regardless of location location
• Cultural expectations vary - Cultural expectations vary - managers must know:managers must know:•is it better to set goals for is it better to set goals for
groups or for individuals?groups or for individuals?
EXHIBIT 13.9 CULTURAL EXHIBIT 13.9 CULTURAL EFFECTS ON GOAL SETTINGEFFECTS ON GOAL SETTING
0 5 10 15 20Performance
Assigned
Representative
Participative
De
gre
e o
f P
art
icip
ati
on
U.S.
Kibbutz Isareli
Urban Israeli
REINFORCEMENT THEORYREINFORCEMENT THEORY
• Behavior is a function of its Behavior is a function of its consequences consequences
• Pleasurable consequence = Pleasurable consequence = behavior continuesbehavior continues
• Unpleasant consequence = Unpleasant consequence = behavior stopsbehavior stops
• Reinforcement, extinction, and Reinforcement, extinction, and punishmentpunishment
APPLYING REINFORCEMENT APPLYING REINFORCEMENT THEORY IN MULTINATIONAL THEORY IN MULTINATIONAL
SETTINGSSETTINGS
• Positive reinforcementPositive reinforcement• Identify appropriate Identify appropriate
rewards as reinforcers rewards as reinforcers • National context defines National context defines
acceptable/legitimate acceptable/legitimate rewards rewards
MOTIVATION AND JOB MOTIVATION AND JOB DESIGN: U.S. AND DESIGN: U.S. AND
EUROPEAN PERSPECTIVESEUROPEAN PERSPECTIVES
• Focus on nature of jobsFocus on nature of jobs• Psychological effects of Psychological effects of
tasks on workerstasks on workers
A U.S. APPROACH: THE JOB A U.S. APPROACH: THE JOB CHARACTERISTICS MODELCHARACTERISTICS MODEL
• See Exhibit 13.12 nextSee Exhibit 13.12 next
Characteristicsof a Job
Skills andabilities;
Opportunity tosee a whole
piece of work;Job effects
others
Freedom tochoose goals
and schedules
Feedback ontask
completionand quality
Worker FeelsResponsible
for Outcomes
CriticalPsychological
States
Work andPersonal
Outcomes
Job isMeaningful
Worker KnowsResults from
Efforts
Job SatisfiesGrowth Needs
Job is HighlyMotivating
Job is HighlySatisfying
High WorkQuantity andQuality
A EUROPEAN APPROACH: A EUROPEAN APPROACH: SOCIOTECHNICAL SYSTEMSSOCIOTECHNICAL SYSTEMS
• Technology and the social Technology and the social needs of workersneeds of workers
• The autonomous work The autonomous work groupgroup
• Team tasks the focus job Team tasks the focus job enrichmentenrichment
CHOOSING JOB ENRICHMENT CHOOSING JOB ENRICHMENT TECHNIQUES IN TECHNIQUES IN
MULTINATIONAL SETTINGSMULTINATIONAL SETTINGS• Distinction between Distinction between
individualistic and individualistic and collectivist cultures should collectivist cultures should determine the choice of determine the choice of job-enrichmentjob-enrichment•U.S. individual approachU.S. individual approach•European group approachEuropean group approach
PROBLMES OF TEAM WORK IN PROBLMES OF TEAM WORK IN INDIVIDUALISTIC CULTURESINDIVIDUALISTIC CULTURES
• Social loafing Social loafing • No responsibility for group No responsibility for group
outcomesoutcomes• Individual work/interests Individual work/interests
have priority over group'shave priority over group's
CONCLUSIONSCONCLUSIONS
• Motivating the multinational Motivating the multinational workforce: a constant workforce: a constant challengechallenge
• Motivation theories not Motivation theories not culture freeculture free
• Application requires Application requires knowledge of national contextknowledge of national context