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CHAPTER 13 MOTIVATION IN MULTINATIONAL COMPANIES

CHAPTER 13 MOTIVATION IN MULTINATIONAL COMPANIES. 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. WHY DO PEOPLE WORK? .

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CHAPTER 13 MOTIVATION IN MULTINATIONAL COMPANIES

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  1. 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

  5. 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

  6. EXHIBIT 13.2 DIFFERENCES IN WORK CENTRALITY

  7. 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

  8. WORK MOTIVATION AND THE NATIONAL CONTEXT

  9. 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

  10. Motivation includes more than satisfying needs • Reactions to behaviors • reinforcement • punishment

  11. See Exhibit 13.4 (next) for the basic work motivation process and the national context

  12. 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

  13. THEORIES OF WORK MOTIVATION IN THE MULTINATIONAL CONTEXT • Two basic types of motivation theories: • need theories • process theories • Applications to multinational context follow

  14. 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

  15. 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

  16. 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

  17. MOTIVATOR-HYGIENE THEORY • Job content = motivating factors • Job context = hygiene factors • Only job content factors truly motivating

  18. 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

  19. NEEDS AND THE NATIONAL CONTEXT • Need priorities differ by country • Even with similar ranks, level of importance differs by country

  20. 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

  21. 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

  22. EXPECTANCY THEORY • Motivation = Expectancy X Valence X Instrumentality

  23. 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

  24. EQUITY THEORY • Fairness in the input/output equation • Relative rewards vis-a-vis inputs leads to: • reduced or increased contribution to organization

  25. 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

  26. GOAL SETTING THEORY • Premise: People want to achieve goals • Effective Goals: • clear, specific, and difficult but achievable

  27. 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

  28. 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?

  29. EXHIBIT 13.9 CULTURAL EFFECTS ON GOAL SETTING

  30. REINFORCEMENT THEORY • Behavior is a function of its consequences • Pleasurable consequence = behavior continues • Unpleasant consequence = behavior stops • Reinforcement, extinction, and punishment

  31. APPLYING REINFORCEMENT THEORY IN MULTINATIONAL SETTINGS • Positive reinforcement • Identify appropriate rewards as reinforcers • National context defines acceptable/legitimate rewards

  32. MOTIVATION AND JOB DESIGN: U.S. AND EUROPEAN PERSPECTIVES • Focus on nature of jobs • Psychological effects of tasks on workers

  33. A U.S. APPROACH: THE JOB CHARACTERISTICS MODEL • See Exhibit 13.12 next

  34. A EUROPEAN APPROACH: SOCIOTECHNICAL SYSTEMS • Technology and the social needs of workers • The autonomous work group • Team tasks the focus job enrichment

  35. 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

  36. PROBLMES OF TEAM WORK IN INDIVIDUALISTIC CULTURES • Social loafing • No responsibility for group outcomes • Individual work/interests have priority over group's

  37. CONCLUSIONS • Motivating the multinational workforce: a constant challenge • Motivation theories not culture free • Application requires knowledge of national context

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