Motivating and Leading Across Cultures Chapter 11 Motivating and Leading Across Cultures

Overview Motivating and leading abroad Motivation theories and cultural implications Effective Leadership in an international context Copyright © Houghton Mifflin Company. All rights reserved.

Motivating Across Cultures Cultural differences add complexity Applicability of American approaches? Culture-specific approaches Differences within a country Few universal principles Copyright © Houghton Mifflin Company. All rights reserved.

Motivation Theories Context theories Process theories Maslow’s hierarchy of needs Herzberg’s two-factor theory Process theories Equity theory Reinforcement theory Goal theory Expectancy theory Copyright © Houghton Mifflin Company. All rights reserved.

Maslow’s Hierarchy of Needs Self-actualization—maximum potential Esteem needs—self respect & confidence Social needs—feeling of belonging Safety needs—satisfy security concerns Physiological—food and shelter Hierarchical needs Lower order needs dominate behavior until met Copyright © Houghton Mifflin Company. All rights reserved.

Cross-Cultural Applicability of Maslow’s Hierarchy of Needs Some applicability across cultures Hierarchy scheme doesn’t fit every culture Cooperative/social needs may be most important in collectivist cultures Some argue that hierarchy reflects American values Copyright © Houghton Mifflin Company. All rights reserved.

Herzberg’s Two-Factor Theory Hygiene factors—needs to be satisfied i.e., good working conditions If satisfied, does not guarantee motivation Motivators—needs to be motivated i.e., job enrichment Must have both hygiene factors and motivators to be motivated Copyright © Houghton Mifflin Company. All rights reserved.

Cross-Cultural Applicability of Herzberg’s Two-Factor Theory Some applicability Doesn’t fit every culture Motivators vary across cultures Collectivist / individualist Power distance Uncertainty avoidance Masculine / feminist Copyright © Houghton Mifflin Company. All rights reserved.

Where Are the (un)Happiest Employees? Copyright © Houghton Mifflin Company. All rights reserved.

Equity Theory Motivation linked to perceptions of being treated fairly in terms of Job outcomes—pay, benefits Job inputs—effort, skills Employees compare outcome/input ratio against others Balanced ratio = satisfied employee Copyright © Houghton Mifflin Company. All rights reserved.

Cross-Cultural Applicability of Equity Theory Individualistic cultures embrace equity theory Collectivist cultures more likely to prefer equal distribution of outcomes Differences in equity standards Social changes impact view of equity Managers must consider reactions to reward allocation system Copyright © Houghton Mifflin Company. All rights reserved.

Reinforcement Theory Consequences associated with behavior Positive reinforcers—improve performance i.e., Bonuses Punishment—eliminate poor performance i.e., Pay cut Copyright © Houghton Mifflin Company. All rights reserved.

Cross-Cultural Applicability of Reinforcement Theory Need to determine what employees value to use positive reinforcers Cultural differences of meaning of rewards Positive vs. critical feedback Praise Performance-based, merit pay vs. seniority Copyright © Houghton Mifflin Company. All rights reserved.

Goal Theory Establishing performance targets Specific and challenging goals as motivators Employee involvement in goal-setting Copyright © Houghton Mifflin Company. All rights reserved.

Cross-Cultural Applicability of Goal Theory Assumes: Low power distance Low uncertainty avoidance High performance is valued Variations in approaches to goal setting Copyright © Houghton Mifflin Company. All rights reserved.

Expectancy Theory Assumes three employees believe: Hard work will result in good performance Rewards associated with good performance Rewards are important to them If not, motivation suffers Copyright © Houghton Mifflin Company. All rights reserved.

Cross-Cultural Applicability of Expectancy Theory Emphasizes individualism Masculine orientation Task versus relationship focus Locust of control Internal versus external Reward system must be designed with cultural considerations Copyright © Houghton Mifflin Company. All rights reserved.

Developing a Motivation Strategy Take cultural variables into account Cultural values change and evolve Managers should be aware of own biases Any strategy should be… Culturally synergistic—complement various cultures involved Copyright © Houghton Mifflin Company. All rights reserved.

Steps to Developing a Motivation Strategy Describe motivation situation Identify cultural assumptions about motivation Generate culturally synergistic alternatives Select and implement a synergistic strategy Copyright © Houghton Mifflin Company. All rights reserved.

Leader Behavior Across Cultures Constantly changing and evolving U.S. research reveals two basic types: Task-oriented behavior Providing clear expectations Relationship-oriented behavior Showing personal concern This simple dichotomy not appropriate in all cultures Copyright © Houghton Mifflin Company. All rights reserved.

Likert’s System 4 Theory Argues all companies should move toward systems 3 and 4 for higher performance and moral May work best in low power distance cultures Managers should adjust leadership style to the cultural environment Copyright © Houghton Mifflin Company. All rights reserved.

Likert’s System 4 Theory (cont’d) System 1 - Exploitive authoritative Top down Punishment used to motivate System 2 - Benevolent authoritative Autocratic Paternalistic System 3 - Consultative Employees involved Management final say System 4 - Democrative Employee part of decision making Lateral and vertical Team approach Copyright © Houghton Mifflin Company. All rights reserved.

Leadership and Power Perspectives on power differ between cultures Position power Personal power Social influence tactics Copyright © Houghton Mifflin Company. All rights reserved.

Ranking the Importance of Leader Influence Tactics Across Countries

Transformational Leadership Ability to influence Poor to exceptional performance Creates emotional bond that results in loyalty and performance Charisma Use of inspirational appeals Intellectual stimulation Individualized consideration Less effective in collectivist cultures Copyright © Houghton Mifflin Company. All rights reserved.

Path-Goal Theory Model that includes cultural variables Four basic styles Directive Supportive Participative Achievement-oriented Contingency factors shape style Copyright © Houghton Mifflin Company. All rights reserved.

Introducing Cultural Contingencies Into Path-goal Theory: Identifying Compatible Leadership Styles

Leadership Challenges for MNCs Diversity of contexts Macro-level and micro-level factors National and corporate values Copyright © Houghton Mifflin Company. All rights reserved.

Comparing Transnational and Traditional Skills for International Managers

Suggestions for Developing Leaders With Transnational Skills Copyright © Houghton Mifflin Company. All rights reserved.