Motivation in Multinational Companies Chapter 13, part 1

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

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

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

Exhibit 13.1: Ratings of Major Functions of Work

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)

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

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%)

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

Exhibit 13.4: Importance Rankings of Work Characteristics in Nine Countries

Exhibit 13.4: Importance Rankings of Work Characteristics in Nine Countries

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.

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)

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

Exhibit 13.5: The Basic Work Motivation Process and National Context

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

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

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

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

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

Exhibit 13.6: Need Theories of Motivation

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.

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.

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.

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

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

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

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

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

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

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