INTRODUCTIONINTRODUCTION

Multinational managers need to Multinational managers need to motivate international employeesmotivate international employees

Need to understandNeed to understand–Why do people work?Why do people work?–What do people value in What do people value in

work?work?

WHY DO PEOPLE WORK?WHY DO PEOPLE WORK?

Meaning of Work studyMeaning of Work studyThree major functions of workThree major functions of work–Providing needed incomeProviding needed income–Interesting activityInteresting activity–Contact with other peopleContact with other people

Emphasis differs by countryEmphasis differs by country

EXHIBIT 13-1 RATINGS OF EXHIBIT 13-1 RATINGS OF MAJOR FUNCTIONS OF WORKMAJOR FUNCTIONS OF WORK

0 10 20 30 40 50

Points out of 100

Japan

Germany

Belgium

Britian

U.S.A.

Israel

Netherlands

Provides needed income Interesting and SatisfyingContact with people

WORK CENTRALITYWORK CENTRALITYWork versus other activitiesWork versus other activitiesHigher 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 WORKWhat do people hope to achieve What do people hope to achieve

from working? from working? –Interesting work (#1)Interesting work (#1)–Good payGood pay–Job securityJob security–Good interpersonal relationshipsGood interpersonal relationships

U.S.A.1. Interesting Work2. Pay3. Job Security4. Fit with Job

Germany1. Pay2. Fit with Job3. InterestingWork

Britain1. InterestingWork2. Pay3. Job Security

Israel1. Fit with Job2. Relations withPeople3. Pay

Japan1. Fit with Job2. InterestingWork3. Autonomy

Netherlands1. Autonomy2. InterestingWork3. Relationshipswith People

Belgium1. InterestingWork2. Pay3. Job Security

EX 13.3 MAJOR WORK GOALSEX 13.3 MAJOR WORK GOALS

CONCLUSIONS: MOW STUDYCONCLUSIONS: MOW STUDYWork centrality Work centrality Benefits from work and money Benefits from work and money

alone is not enough alone is not enough Priorities given to work goals Priorities given to work goals

similar but emphasis different similar but emphasis different

WORK MOTIVATION AND THE WORK MOTIVATION AND THE NATIONAL CONTEXT NATIONAL CONTEXT

THE BASIC WORK THE BASIC WORK MOTIVATION PROCESSMOTIVATION PROCESS

Motivation: psychological process Motivation: psychological process that results in goal-directed that results in goal-directed behavior that satisfy human needsbehavior that satisfy human needs

Needs: a feeling of deficit Needs: a feeling of deficit Work satisfies many needs - e.g., Work satisfies many needs - e.g.,

food and shelterfood and shelter

Motivation includes more than Motivation includes more than satisfying needssatisfying needs

Reactions to behaviors Reactions to behaviors –Reinforcement Reinforcement –PunishmentPunishment

SEE EXHIBIT 13-4 FOR SEE EXHIBIT 13-4 FOR THE BASIC WORK THE BASIC WORK

MOTIVATION PROCESS AND MOTIVATION PROCESS AND THE NATIONAL CONTEXT THE NATIONAL CONTEXT

National Context(Culture and

Social Institutions)

IndividualWork

Motivation

Unsatisfied Needs

Goal-DirectedBehavior to

Satisfy Needs

Reinforcement orPunishment

Defines theImportance of

Different Needs

Defines LegitimateBehaviors of Work

Defines What isRewarded or

Punished and How

Continue or StopBehaviors; Stay

or Leave theOrganization

Defines Relationshipwith Organization

NATIONAL CONTEXT AND NATIONAL CONTEXT AND WORK MOTIVATIONWORK MOTIVATION

Culture and supporting Culture and supporting institutions institutions –Influence the priority people Influence the priority people

attach to workattach to work–Influence reactions to goal-Influence reactions to goal-

directed behaviors at workdirected behaviors at work

THEORIES OF WORK THEORIES OF WORK MOTIVATION IN THE MOTIVATION IN THE

MULTINATIONAL CONTEXT MULTINATIONAL CONTEXT Two basic types of motivation Two basic types of motivation

theories:theories:–Need theoriesNeed theories–Process theoriesProcess theories

Applications to multinational Applications to multinational context followcontext follow

NEED THEORIESNEED THEORIESAssume that work can satisfy basic Assume that work can satisfy basic

humanhumanFour popular need theories: Four popular need theories:

Maslow’s hierarchy of needs, ERG Maslow’s hierarchy of needs, ERG theory, Motivator-Hygiene theory, theory, Motivator-Hygiene theory, and Achievement Motivation theoryand Achievement Motivation theory

MASLOW'S HIERARCHY OF MASLOW'S HIERARCHY OF NEEDSNEEDS

Basic needs: physiological, Basic needs: physiological, security, affiliation, esteem, and security, affiliation, esteem, and self-actualizationself-actualization

A hierarchyA hierarchyOnce one need is satisfied, it no Once one need is satisfied, it no

longer motivateslonger motivates

ALDERFER'S ERG THEORYALDERFER'S ERG THEORYSimplified hierarchy: growth needs, Simplified hierarchy: growth needs,

relatedness needs, and existence relatedness needs, and existence needsneeds

Frustration motivates behavior to Frustration motivates behavior to satisfy the needsatisfy the need

People seek to satisfy higher and People seek to satisfy higher and lower level needslower level needs

MOTIVATOR-HYGIENE MOTIVATOR-HYGIENE THEORYTHEORY

Job content = motivating factorsJob content = motivating factorsJob context = hygiene factorsJob context = hygiene factorsOnly job content factors truly Only job content factors truly

motivatingmotivating

ACHIEVEMENT MOTIVATION ACHIEVEMENT MOTIVATION THEORYTHEORY

Three key needs: achievement, Three key needs: achievement, affiliation, and poweraffiliation, and power

High achievement people have: High achievement people have: needs to win and to set own goals needs to win and to set own goals and seek challenging situationsand seek challenging situations

NEEDS AND THE NATIONAL NEEDS AND THE NATIONAL CONTEXT CONTEXT

Need priorities differ by countryNeed priorities differ by countryEven with similar ranks, level of Even with similar ranks, level of

importance differs by countryimportance differs by 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 importantNeeds considered most important

Sources of need fulfillmentSources of need fulfillmentKnow available jobs to satisfy needsKnow available jobs to satisfy needs

PROCESS THEORIES OF PROCESS THEORIES OF MOTIVATIONMOTIVATION

Three major theories: expectancy Three major theories: expectancy theory, equity theory, and goal theory, equity theory, and goal setting theory setting theory

More complex than need theoriesMore complex than need theories–Relate individual beliefs regarding Relate individual beliefs regarding

effort, outcomes, and performanceeffort, outcomes, and performance

EXPECTANCY THEORYEXPECTANCY THEORY

Motivation = Expectancy X Motivation = Expectancy X Valence X InstrumentalityValence X Instrumentality

APPLYING EXPECTANCY APPLYING EXPECTANCY THEORY IN MULTINATIONAL THEORY IN MULTINATIONAL

SETTINGSSETTINGSIdentify valued outcomes of Identify valued outcomes of

workworkUse culturally appropriate ways Use culturally appropriate ways

to convince employees that their to convince employees that their efforts will lead to desirable endsefforts will lead to desirable ends

EQUITY THEORYEQUITY THEORY

Fairness in the input/output Fairness in the input/output equation equation

Relative rewards vis-a-vis inputs Relative rewards vis-a-vis inputs leads to: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 varyPrinciples 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 THEORYPremise: People want to achieve Premise: People want to achieve

goals goals Effective Goals:Effective Goals:–Clear, specific, and difficult Clear, specific, and difficult

but achievablebut achievable

For Goals setting to work, managers For Goals setting to work, managers must: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

APPLYING GOAL SETTING APPLYING GOAL SETTING THEORY IN MULTINATIONAL THEORY IN MULTINATIONAL

SETTINGSSETTINGSGoal setting works to some Goal setting works to some

degree regardless of location degree regardless of 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?

EX 13.9 CULTURAL EFFECTS ON EX 13.9 CULTURAL EFFECTS ON GOAL SETTINGGOAL SETTING

0 5 10 15 20Performance

Assigned

Representative

Participative

Deg

ree

of P

artic

ipat

ion

U.S.Kibbutz IsareliUrban Israeli

REINFORCEMENT THEORYREINFORCEMENT THEORYBehavior is a function of its Behavior is a function of its

consequences consequences Pleasurable consequence = behavior Pleasurable consequence = behavior

continuescontinuesUnpleasant consequence = behavior Unpleasant consequence = behavior

stopsstopsReinforcement, extinction, and Reinforcement, extinction, and

punishmentpunishment

APPLYING REINFORCEMENT APPLYING REINFORCEMENT THEORY IN MULTINATIONAL THEORY IN MULTINATIONAL

SETTINGSSETTINGSPositive reinforcementPositive reinforcementIdentify appropriate rewards as Identify appropriate rewards as

reinforcers reinforcers National context defines National context defines

acceptable/legitimate rewards acceptable/legitimate 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 jobsPsychological effects of tasks on Psychological effects of tasks on

workersworkers

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 needs Technology and the social needs of workersof workers

The autonomous work groupThe autonomous work groupTeam tasks the focus job Team tasks the focus job

enrichmentenrichment

CHOOSING JOB ENRICHMENT CHOOSING JOB ENRICHMENT TECHNIQUES IN TECHNIQUES IN

MULTINATIONAL SETTINGSMULTINATIONAL SETTINGSDistinction between Distinction between

individualistic and collectivist individualistic and collectivist cultures should determine the cultures should determine the choice of job-enrichmentchoice of job-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

outcomesoutcomesIndividual work/interests have Individual work/interests have

priority over group'spriority over group's

CONCLUSIONSCONCLUSIONS

Motivating the multinational Motivating the multinational workforce: a constant challengeworkforce: a constant challenge

Motivation theories not culture Motivation theories not culture freefree

Application requires knowledge Application requires knowledge of national contextof national context