Motivation in Multinational Companies

1. Motivation in Multinational Companies Chapter 13, part 1

2. Chapter Outline • Work values and the meaning of work • Work motivation and the national context • Theories of work motivation in the multinational context • Need theories • Process theories • Motivation and job design

3. Motivation in Multinationals • Multinational managers must understand how to motivate international employees • Multinationals face an array of challenges to motivate a workforce in the face of a rapidly changing labor market

4. Four Major Functions of Work • Providing needed income • Providing security • Contact with other people • A feeling of accomplishment

5. Exhibit 13.1: Ratings of Major Functions of Work

6. Why Do People Work? • Emphasis differs by country • Income a higher priority in • Transition economies (e.g., Azerbaijan and Lithuania) and many of the developing nations (e.g., India) • Contact with and a feeling of accomplishment more important in: • Some collective cultures and the social democracies (examples: Germany, Scandinavian countries)

7. How Much Do People Value Work? • Work centrality: overall value of work in a person’s life, as compared to other activities, such as leisure and family • Work centrality varies by countries • In countries with high work centrality, people tend to work more hours per week • High levels of work centrality may lead to dedicated workers

8. Desired Job Characteristics • Goals that people hope to achieve from working • Ranking of the work characteristics for 50 countries • Generous holidays (73%) • An opportunity to use initiative (53%) • Good hours (53%) • Respected job (50%) • Responsible job (46%)

9. Importance of Work • Achievement (42%) • Interesting (39%) • Abilities (36%) • Good job security (30%) • Good pay (19%) • Desire for generous holidays almost universal (Japan is an exception) • However, priorities given to different job characteristics vary by country

10. Exhibit 13.4: Importance Rankings of Work Characteristics in Nine Countries

11. Exhibit 13.4: Importance Rankings of Work Characteristics in Nine Countries

12. Work Values and the Meaning of Work: Conclusions • In some societies, work is very central and absorbs much of a person’s life. • All people hope to receive certain benefits from work. • The first key to successful motivation strategies is understanding the differences regarding how people view work among countries.

13. Drive toward goal to satisfy need The Basic Work-Motivation Process • Motivation: a psychological process resulting in goal-directed behavior that satisfies human needs • Need: feeling of deficit or lacking • Goal-directed behavior: one that people use with the intention of satisfying a need Unsatisfied need Attainment of goal (need satisfaction)

14. Work Motivationand National Context • Reinforcement: reactions to a person’s behavior that encourage the person to continue the behavior • E.g., bonus pay to encourage behavior • Punishment: consequences of a person’s behavior that discourage the behavior • E.g., docking pay to discourage behavior

15. Exhibit 13.5: The Basic Work Motivation Process and National Context

16. National Context and Work Motivation • Culture and social institutions • Influence the priority people attach to work • Define what behaviors are legitimate ways to satisfy goals • Influences reactions to goal-directed behaviors at work – what is rewarded or punished, and how • Influences employees' relationships with the organization they work for

17. Need Theories of Motivation • Four need theories of motivation • Maslow’s Hierarchy of Needs • ERG theory • Motivator-hygiene theory • Achievement motivation theory • Need theories and Hofstede's dimensions of culture

18. Maslow’s Hierarchy of Needs • Physiological needs: food, clothing, shelter, and other basic physical needs • Security: safety, stability, absence of pain • Social: need to interact with others, affiliate with others, and feel wanted by others • Esteem: needs for power, status, influence • Self-actualization: desire to reach one's full potential by becoming everything that one is capable of being

19. Self- actualization Esteem Social Physiological Maslow’s Hierarchy of Needs Security

20. Maslow’s Hierarchy of Needs (2) • States that people have five basic types of needs • Physiological, Security, Affiliation, Esteem, and Self-actualization • The needs follow a basic hierarchy • People first seek to satisfy lower needs • Once lower need is satisfied, it no longer motivates • Then people try to satisfy higher needs

21. Exhibit 13.6: Need Theories of Motivation

22. Alderfer’s ERG Theory • Simplified hierarchy of needs, including existence needs, relatedness needs, and growth needs • Frustration of a need motivates behavior to satisfy the need. • People seek to satisfy higher and lower level needs. • If people cannot satisfy higher needs, they will try to satisfy lower level needs.

23. Motivator-Hygiene Theory • Theory that there are two sets of factors that influence job satisfaction: motivators and hygiene factors • Motivators correspond to Maslow's high-level needs. • Job content factors, such as achievement, recognition, responsibility, advancement, and the work itself • They produce satisfaction with the job • More important in motivating employees than hygiene factors in most cultures.

24. Motivator-Hygiene Theory (2) • Hygiene factors correspond to Maslow's low level andmiddle level needs. • Job context variables that include salary, interpersonal relations, supervision, working conditions, and company policies and administration • When these factors are not adequate, employees become dissatisfied with the job.

25. Achievement Motivation Theory • Theory that only some people have the need to win in competitive situations or to exceed a standard of excellence • Three key needs for achievement-motivated people: achievement, affiliation, and power • High achievement people have needs to win and to set own goals and seek challenging situations • They also avoid goals that they think are too difficult to achieve

26. Achievement Motivation Theory (2) • People who have strong a achievement need: • Want personal responsibility for solving problems • Tend to be moderate risk takers • Want immediate, concrete feedback about their performance • Are competitive and often do not get along well with other people • Achievement motivation is learned and can sometimes be developed through training

27. Achievement Motivation Theory (3) • Cultures that support achievement motivation include • English-speaking countries – highly individualism • Countries that reward entrepreneurial effort • In countries with low masculinity, quality of life is likely to be a better motivator than achievement • Achievement motivation training has been successful in some developing countries

28. How to Encourage Achievement Motivation • Train people to • Obtain feedback on performance • Use the feedback to make efforts in areas where they are likely to succeed • Emulate people who have been successful achievers • Develop an internal desire for success and challenges • Daydream in positive terms by picturing themselves as being successful in the pursuit of important objectives

29. Exhibit 13.8: Rankings of the Importance of Job-Related Sources of Need Satisfaction for Seven Countries

30. Exhibit 13.9: Hofstede’s Dimensions of National Culture and Motivators at Work

31. Applying Need Theories in Multinational Settings • Identify the basic functions of work in the national or local culture • Identify the needs considered most important by workers in the national or local culture • Sources of need fulfillment may differ for the same needs • Example: different jobs are respected in different cultures • Understand limitations of available jobs to satisfy needs