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. 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
Drive toward goal to
satisfy need
Attainment of goal
(need satisfaction)

14. Work Motivation and 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. Maslow’s Hierarchy of Needs
Self-
actualization
Esteem
Social
Security
Physiological

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 and middle 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