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 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 Goal Setting Theory •• Assumption Assumption that that the the mere mere existence existence ofof aa goal goal isis motivating motivating •• The The principles principles ofof goal goal setting setting •• Set Set clear clear and and specific specific goals goals •• Assign Assign difficult difficult but but achievable achievable goals goals •• Increase Increase employee employee acceptance acceptance ofof goals goals •• Provide Provide incentives incentives toto achieve achieve goals goals •• Give Give feedback feedback on on goal goal attainment attainment Copyright© 2005 South-Western/Thomson Learning All rights reserved Applying Goal-Setting Theory in Multinational Settings •• Goal Goal setting setting works works toto some some degree, degree, regardless regardless ofof location location •• Cultural Cultural expectations expectations vary—managers vary—managers must must know know •• IsIs itit better better toto set set goals goals for for groups groups or or for for individuals? individuals? Copyright© 2005 South-Western/Thomson Learning All rights reserved Exhibit 13.11: Cultural Effects on Performance by the Degree of Participation in Goal Setting Copyright© 2005 South-Western/Thomson Learning All rights reserved Reinforcement Theory •• Operant Operant conditioning: conditioning: model model proposes proposes that that behavior behavior isis aa function function ofof its its consequences consequences •• Positive Positive reinforcement—response reinforcement—response with with rewarding rewarding consequence consequence •• Pleasurable Pleasurable consequence consequence == behavior behavior continues continues •• Punishment—negative Punishment—negative consequence consequence •• Unpleasant Unpleasant consequence consequence == behavior behavior stops stops Copyright© 2005 South-Western/Thomson Learning All rights reserved Exhibit 13.12: Management Examples of Operant-Conditioning Process and Types of Consequences Copyright© 2005 South-Western/Thomson Learning All rights reserved Applying Reinforcement Theory in Multinational Settings •• •• Positive Positive reinforcement reinforcement works works Difficulty Difficulty isis inin identifying identifying appropriate appropriate rewards rewards as as reinforcers reinforcers •• National National context context defines defines acceptable acceptable and and legitimate legitimate rewards rewards Copyright© 2005 South-Western/Thomson Learning All rights reserved Exhibit 13.13: Effects of Positive Reinforcement and Types of Rewards in a Russian Cotton Mill Copyright© 2005 South-Western/Thomson Learning All rights reserved Multinational Applications of Process/Reinforcement Theories •• Expectancy Expectancy theory: theory: key key isis identifying identifying nationally nationally appropriate appropriate rewards rewards that that have have positive positive valence valence •• Equity Equity theory: theory: assess assess meaning meaning and and principle principle ofof equity equity inin national national context context •• Goal-setting Goal-setting theory: theory: should should goals goals be be assigned assigned toto groups groups or or individuals? individuals? •• Reinforcement Reinforcement theory: theory: what what people people value value atat work work will will influence influence the the types types ofof reinforcers reinforcers that that can can be be used used Copyright© 2005 South-Western/Thomson Learning All rights reserved Motivation and Job Design: U.S Perspectives •• The The job-characteristic job-characteristic model model approach approach •• Work Work isis more more motivating motivating when when managers managers enrich enrich core core job job characteristics, characteristics, such such as as by by increasing increasing number number ofof skills skills aa job job requires requires Copyright© 2005 South-Western/Thomson Learning All rights reserved Job-Characteristics Model •• Three Three critical critical psychological psychological states states as as motivating motivating •• AAperson person must must believe believe that that his his or or her her job job isis meaningful meaningful •• AAperson person must must believe believe that that he he or or she she isis responsible responsible or or accountable accountable for for the the outcome outcome ofof work work •• AAperson person must must understand understand how how well well he he or or she she has has performed performed Copyright© 2005 South-Western/Thomson Learning All rights reserved Core Characteristics of Job •• •• •• •• •• Skill Skill variety variety Task Task identity identity Task Task significance significance Autonomy Autonomy Feedback Feedback Copyright© 2005 South-Western/Thomson Learning All rights reserved Exhibit 13.14: A Motivating Job in the Job-Characteristics Model Copyright© 2005 South-Western/Thomson Learning All rights reserved Motivation and Job Design: European Perspective •• Sociotechnical Sociotechnical systems systems (STS) (STS) approach: approach: focuses focuses on on designing designing motivating motivating jobs jobs by by blending blending the the social social system system with with different different technologies technologies •• Autonomous Autonomous work work group: group: team team or or unit unit that that has has nearly nearly complete complete responsibility responsibility for for aa particular particular task task •• Team’s Team’s task task rather rather than than individual individual task task isis focus focus ofof job job enrichment enrichment Copyright© 2005 South-Western/Thomson Learning All rights reserved Choosing Job-Enrichment Techniques in Multinational Settings •• Distinction Distinction between between individualistic individualistic and and collectivist collectivist cultures cultures should should determine determine the the choice choice ofof job-enrichment job-enrichment •• U.S.—individual U.S.—individual •• Japan—team Japan—team •• Social Social loafing: loafing: term term used used when when people people expend expend less less effort effort when when they they work work inin groups groups Copyright© 2005 South-Western/Thomson Learning All rights reserved Exhibit 13.15: Comparing the Performance of Chinese, U.S., and Israeli Managers Working Alone and in Groups Copyright© 2005 South-Western/Thomson Learning All rights reserved ... 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... 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... culture •• Identify Identify the the needs needs considered considered most most important important by by workers workers inin the the national national or or local local culture culture •• Sources