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Slide multinational management 3e cullen ch13

Chapter 13
Motivation in Multinational
Companies

Copyright© 2004 Thomson Learning All rights reserved


Learning Objectives
•• Know
Know how
how people
people from
from different
different nations
nations perceive
perceive the
the
basic
basic functions
functions ofof working
working

•• Know
Know how
how people
people from
from different
different nations
nations view
view the
the
importance
importance ofof working
working
•• Understand
Understand how
how the
the national
national context
context affects
affects the
the basic
basic
processes
processes ofof work
work motivation
motivation

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Learning Objectives
•• Be
Be able
able toto apply
apply common
common theories
theories ofof work
work motivation
motivation
inin different
different national
national context
context
•• Be
Be able
able toto design
design jobs
jobs for
for high
high motivational
motivational potential
potential inin
different
different national
national cultures
cultures

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Motivation in Multinationals
•• Multinational
Multinational managers
managers must
must understand
understand how
how toto
motivate
motivate international
international employees
employees
•• Multinationals
Multinationals face
face an
an array
array ofof challenges
challenges toto motivate
motivate aa
workforce
workforce inin the
the face
face ofof aa rapidly
rapidly changing
changing labor
labor
market
market

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Work Values and the Meaning
of Work
•• Why
Why do
do people
people work?
work?
•• Four
Four major
major functions
functions ofof work
work
•• Providing
Providing needed
needed income
income
•• Security
Security
•• Contact
Contact with
with other
other people
people
•• AAfeeling
feeling ofof accomplishment
accomplishment

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exhibit 13.1: Ratings of Major
Functions at Work

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Why Do People Work?
•• Emphasis
Emphasis differs
differs by
by country
country
•• Income
Income aa higher
higher priority
priority in:
in:
•• Transition
Transition economies
economies (e.g.,
(e.g.,Azerbaijan
Azerbaijan and
and
Lithuania)
Lithuania) and
and many
many ofof the
the developing
developing nations
nations
(e.g.,
(e.g., India)
India)
•• Contact
Contact with
with and
and aa feeling
feeling ofof accomplishment
accomplishment more
more
important
important in:
in:
•• Many
Many ofof collective
collective cultures
cultures and
and the
the social
social
democracies
democracies
Copyright© 2005 South-Western/Thomson Learning All rights reserved


What Do People Value in
Work?
•• Work
Work centrality:
centrality: overall
overall value
value ofof work
work inin aa person’s
person’s life
life
•• Work
Work compared
compared toto other
other activities
activities such
such as
as leisure
leisure
and
and family
family
•• Higher
Higher levels
levels ofof work
work centrality
centrality match
match average
average
number
number ofof hours
hours worked
worked per
per week
week
•• High
High levels
levels ofof work
work centrality
centrality may
may lead
lead toto dedicated
dedicated
workers
workers
Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exhibit 13.2: Differences in Work
Centrality in Seven Countries

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exhibit 13.3: Ranking of Work
Centrality of Selected Countries of the
World Values Survey

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Importance of Work
••
••

Goals
Goals that
that people
people hope
hope toto achieve
achieve from
from working
working
Ranking
Ranking ofof the
the work
work characteristics
characteristics for
for 50
50 countries
countries
•• Generous
Generous holidays
holidays (73%)
(73%)
•• An
An opportunity
opportunity toto use
use initiative
initiative (53%)
(53%)
•• Good
Good hours
hours (53%)
(53%)
•• Respected
Respected job
job (50%)
(50%)
•• Responsible
Responsible job
job (46%)
(46%)
Copyright© 2005 South-Western/Thomson Learning All rights reserved


Importance of Work
6.Achievement
6.Achievement (42%)
(42%)
7.Interesting
7.Interesting (39%)
(39%)
8.Abilities
8.Abilities (36%)
(36%)
9.Good
9.Good job
job security
security (30%)
(30%)
10.Good
10.Good pay
pay (19%)
(19%)
6.6.Reward
Reward ofof generous
generous holiday
holiday almost
almost universal
universal
7.7.However,
However, priorities
priorities given
given toto different
different job
job characteristics
characteristics
vary
vary by
by country
country
Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exhibit 13.4: Importance Rankings
of Work Characteristics in Nine
Countries

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exhibit 13.4: Importance Rankings
of Work Characteristics in Nine
Countries

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Work Values and the Meaning
of Work: Conclusions
•• InIn some
some societies,
societies, work
work isis very
very central
central and
and absorbs
absorbs
much
much ofof aa person’s
person’s life.
life.
•• All
All people
people hope
hope toto receive
receive certain
certain benefits
benefits from
from work.
work.
•• The
The first
first key
key toto successful
successful motivation
motivation strategies
strategies isis
understanding
understanding the
the differences
differences regarding
regarding how
how people
people
view
view work
work among
among countries.
countries.

Copyright© 2005 South-Western/Thomson Learning All rights reserved


The Basic Work-Motivation
Process
•• Motivation:
Motivation: aa psychological
psychological process
process resulting
resulting inin goalgoaldirected
directed behavior
behavior that
that satisfies
satisfies human
human needs
needs
•• Need:
Need: feeling
feeling ofof deficit
deficit or
or lacking
lacking
•• Goal-directed
Goal-directed behavior:
behavior: one
one that
that people
people use
use with
with the
the
intention
intention ofof satisfying
satisfying aa need
need

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Work Motivation and the
National Context
•• Reinforcement:
Reinforcement: reactions
reactions toto aa person’s
person’s behavior
behavior that
that
encourage
encourage the
the person
person toto continue
continue the
the behavior
behavior
•• E.g.,
E.g., bonus
bonus pay
pay toto encourage
encourage behavior
behavior
•• Punishment:
Punishment: consequences
consequences ofof aa person’s
person’s behavior
behavior that
that
discourage
discourage the
the behavior
behavior
•• E.g.,
E.g., docking
docking pay
pay toto discourage
discourage behavior
behavior

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exhibit 13.5: The Basic Work
Motivation Process and the
National Context

Copyright© 2005 South-Western/Thomson Learning All rights reserved


National Context and Work
Motivation
•• Culture
Culture and
and social
social institution
institution influence
influence
•• They
They influence
influence the
the priority
priority people
people attach
attach toto work
work
•• They
They define
define what
what behaviors
behaviors are
are legitimate
legitimate ways
ways toto
satisfy
satisfy goals
goals
•• National
National context
context also
also influences
influences reactions
reactions toto goalgoaldirected
directed behaviors
behaviors atat work
work

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Theories of Work Motivation in
the Multinational Context
•• Two
Two basic
basic types
types ofof motivational
motivational theories
theories
•• Need
Need theory:
theory: assumes
assumes that
that people
people can
can satisfy
satisfy basic
basic
human
human needs
needs inin the
the work
work setting
setting
•• Process
Process theory:
theory: arising
arising from
from needs
needs and
and values
values
combined
combined with
with an
an individual’s
individual’s beliefs
beliefs regarding
regarding the
the
work
work environment
environment

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Theories of Work Motivation in
the Multinational Context
•• Four
Four need
need theories
theories ofof motivation
motivation
•• Maslow’s
Maslow’s Hierarchy
Hierarchy ofof Needs
Needs
•• ERG
ERG theory
theory
•• Motivator-hygiene
Motivator-hygiene theory
theory
•• Achievement
Achievement motivation
motivation theory
theory

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exhibit 13.6: Need Theories of
Motivation

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Maslow’s Hierarchy of Needs
Theory
•• States
States that
that people
people have
have five
five basic
basic types
types ofof needs
needs
•• Physiological,
Physiological, Security,
Security,Affiliation,
Affiliation, Esteem,
Esteem, and
and
Self-actualization
Self-actualization
•• The
The needs
needs follow
follow aa basic
basic hierarchy
hierarchy
•• People
People first
first seek
seek toto satisfy
satisfy lower
lower needs
needs
•• Once
Once lower
lower need
need isis satisfied,
satisfied, itit no
no longer
longer motivates
motivates
•• People
People try
try toto satisfy
satisfy higher
higher needs
needs
Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exhibit 13.7: Maslow’s Hierarchy of
Needs and Country Level Measures

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Alderfer’s ERG Theory
•• Simplified
Simplified hierarchy
hierarchy ofof needs,
needs, including
including existence
existence
needs,
needs, relatedness
relatedness needs,
needs, and
and growth
growth needs
needs
•• Frustration
Frustration ofof aa need
need motivates
motivates behavior
behavior toto satisfy
satisfy
the
the need.
need.
•• People
People seek
seek toto satisfy
satisfy higher
higher and
and lower
lower level
level needs.
needs.
•• IfIf people
people cannot
cannot satisfy
satisfy higher
higher needs,
needs, they
they will
will try
try toto
satisfy
satisfy lower
lower level
level needs.
needs.
Copyright© 2005 South-Western/Thomson Learning All rights reserved


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