1. Motivating and Leading Across Cultures
Chapter 11
Motivating and Leading Across Cultures

2. Overview Motivating and leading abroad
Motivation theories and cultural implications
Effective Leadership in an international context
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3. Motivating Across Cultures
Cultural differences add complexity
Applicability of American approaches?
Culture-specific approaches
Differences within a country
Few universal principles
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4. 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
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5. 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
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6. 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
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7. 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
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8. 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
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9. Where Are the (un)Happiest Employees?
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10. 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
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11. 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
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12. Reinforcement Theory Consequences associated with behavior
Positive reinforcers—improve performance
i.e., Bonuses
Punishment—eliminate poor performance
i.e., Pay cut
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13. 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
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14. Goal Theory Establishing performance targets
Specific and challenging goals as motivators
Employee involvement in goal-setting
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15. Cross-Cultural Applicability of Goal Theory
Assumes:
Low power distance
Low uncertainty avoidance
High performance is valued
Variations in approaches to goal setting
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16. 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
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17. 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
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18. 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
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19. Steps to Developing a Motivation Strategy
Describe motivation situation
Identify cultural assumptions about motivation
Generate culturally synergistic alternatives
Select and implement a synergistic strategy
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20. 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
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21. 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
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22. 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
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23. Leadership and Power Perspectives on power differ between cultures
Position power
Personal power
Social influence tactics
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24. Ranking the Importance of Leader Influence Tactics Across Countries

25. 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
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26. Path-Goal Theory Model that includes cultural variables
Four basic styles
Directive
Supportive
Participative
Achievement-oriented
Contingency factors shape style
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27. Introducing Cultural Contingencies Into Path-goal Theory: Identifying Compatible Leadership Styles

28. Leadership Challenges for MNCs
Diversity of contexts
Macro-level and micro-level factors
National and corporate values
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29. Comparing Transnational and Traditional Skills for International Managers

30. Suggestions for Developing Leaders With Transnational Skills
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