Cross cultural management 3e by cullen ch13

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Learning Objectives

• Know how people from different nations perceive the

basic functions of working

• Know how people from different nations view the

importance of working

• Understand how the national context affects the basic processes of work motivation

• Know how people from different nations perceive the

basic functions of working

• Know how people from different nations view the

importance of working

• Understand how the national context affects the basic processes of work motivation

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Learning Objectives

• Be able to apply common theories of work motivation

in different national context

• Be able to design jobs for high motivational potential in different national cultures

• Be able to apply common theories of work motivation

in different national context

• Be able to design jobs for high motivational potential in different national cultures

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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

• 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

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Work Values and the Meaning

of Work

• Why do people work?

• Four major functions of work

• Providing needed income

• Security

• Contact with other people

• A feeling of accomplishment

• Why do people work?

• Four major functions of work

• Providing needed income

• Security

• Contact with other people

• A feeling of accomplishment

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Exhibit 13.1: Ratings of Major

Functions at Work

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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:

• Many of collective cultures and the social democracies

• 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:

• Many of collective cultures and the social democracies

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What Do People Value in Work?

• Work centrality: overall value of work in a person’s life

• Work compared to other activities such as leisure

and family

• Higher levels of work centrality match average

number of hours worked per week

• High levels of work centrality may lead to dedicated workers

• Work centrality: overall value of work in a person’s life

• Work compared to other activities such as leisure

and family

• Higher levels of work centrality match average

number of hours worked per week

• High levels of work centrality may lead to dedicated workers

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Exhibit 13.2: Differences in Work

Centrality in Seven Countries

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Exhibit 13.3: Ranking of Work

Centrality of Selected Countries of the

World Values Survey

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Importance of Work

• Goals that people hope to achieve from working

• Ranking of the work characteristics for 50 countries

• Goals that people hope to achieve from working

• Ranking of the work characteristics for 50 countries

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6 Reward of generous holiday almost universal

7 However, priorities given to different job characteristics vary by country

6 Reward of generous holiday almost universal

7 However, priorities given to different job characteristics vary by country

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Exhibit 13.4: Importance Rankings

of Work Characteristics in Nine

Countries

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Exhibit 13.4: Importance Rankings

of Work Characteristics in Nine

Countries

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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

• 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

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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

• 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

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Work Motivation and the 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

• 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

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Exhibit 13.5: The Basic Work

Motivation Process and the

National Context

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National Context and Work Motivation

• Culture and social institution influence

• They influence the priority people attach to work

• They define what behaviors are legitimate ways to satisfy goals

• National context also influences reactions to

goal-directed behaviors at work

• Culture and social institution influence

• They influence the priority people attach to work

• They define what behaviors are legitimate ways to

satisfy goals

• National context also influences reactions to

goal-directed behaviors at work

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Theories of Work Motivation in the Multinational Context

• Two basic types of motivational theories

• Need theory: assumes that people can satisfy basic human needs in the work setting

• Process theory: arising from needs and values

combined with an individual’s beliefs regarding the work environment

• Two basic types of motivational theories

• Need theory: assumes that people can satisfy basic human needs in the work setting

• Process theory: arising from needs and values

combined with an individual’s beliefs regarding the

work environment

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Theories of Work Motivation in the Multinational Context

• Four need theories of motivation

• Maslow’s Hierarchy of Needs

• ERG theory

• Motivator-hygiene theory

• Achievement motivation theory

• Four need theories of motivation

• Maslow’s Hierarchy of Needs

• ERG theory

• Motivator-hygiene theory

• Achievement motivation theory

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Exhibit 13.6: Need Theories of

Motivation

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Maslow’s Hierarchy of Needs Theory

• 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

• People try to satisfy higher needs

• 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

• People try to satisfy higher needs

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Exhibit 13.7: Maslow’s Hierarchy of

Needs and Country Level Measures

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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

• 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

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Motivator-Hygiene Theory

• Assumption that a job has two basic characteristics:

motivators and hygiene factors

• Job content—motivating factors

• E.g., challenging job

• Job context—hygiene factors

• E.g., good benefits

• Assumption that a job has two basic characteristics:

motivators and hygiene factors

• Job content—motivating factors

• E.g., challenging job

• Job context—hygiene factors

• E.g., good benefits

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Achievement-motivation Theory

• Suggestion that only some people have the need to

win in competitive situations or to exceed a standard of excellence

• Three key needs: achievement, affiliation, and

power

• High achievement people have needs to win and to set own goals and seek challenging situations

• Suggestion that only some people have the need to

win in competitive situations or to exceed a standard of excellence

• Three key needs: achievement, affiliation, and

power

• High achievement people have needs to win and to set own goals and seek challenging situations

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Needs and the National Context: Lessons

• People from different nations do not give the same

priorities to the needs that might be satisfied at work

• Even with similar needs, they may not give the same

level of importance of satisfying these needs

• People from different nations do not give the same

priorities to the needs that might be satisfied at work

• Even with similar needs, they may not give the same

level of importance of satisfying these needs

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Exhibit 13.8: Rankings of the

Importance of Job-Related Sources of

Need Satisfaction for Seven Countries

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Exhibit 13.9: Hofstede’s Dimensions of

National Culture and Motivators at

Work

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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

• Identify the needs considered most important by

workers in the national or local culture

• Sources of need fulfillment may differ for the same

needs

• Understand limitations of available jobs to satisfy

needs

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Process and Reinforcement Theories of Motivation:

Expectancy Theory

• Expectancy theory

• Assumes that part of motivation is an individual’s

desire to satisfy needs

• People’s beliefs regarding how much their efforts at work will eventually satisfy their needs

• Expectancy theory

• Assumes that part of motivation is an individual’s

desire to satisfy needs

• People’s beliefs regarding how much their efforts at work will eventually satisfy their needs

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Expectancy Theory

• Three factors

• Expectancy: an individual’s belief that his or her

effort will lead to some result

• Valence: the value attached to the outcome of

efforts

• Instrumentality: the links between early and later

results of the work effort

• Motivation = Expectancy x Valence x Instrumentality

• Three factors

• Expectancy: an individual’s belief that his or her

effort will lead to some result

• Valence: the value attached to the outcome of

efforts

• Instrumentality: the links between early and later

results of the work effort

• Motivation = Expectancy x Valence x Instrumentality

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Applying Expectancy Theory

in Multinational Settings

• Two key issues

• Identify valued outcomes of work

• Use culturally appropriate ways to convince

employees that their efforts will lead to desirable

ends

• Two key issues

• Identify valued outcomes of work

• Use culturally appropriate ways to convince

employees that their efforts will lead to desirable

ends

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Equity Theory

• Focuses on the fairness that people perceive in the

rewards that they receive for their efforts at work

• There are no absolute standards for fairness in the input/output (effort/reward) equation

• People compare themselves to others and adjust

their input (effort)

• Focuses on the fairness that people perceive in the

rewards that they receive for their efforts at work

• There are no absolute standards for fairness in the input/output (effort/reward) equation

• People compare themselves to others and adjust

their input (effort)

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Applying Equity Theory in Multinational Settings

• Equity norms vary

• Three principles of allocating rewards

• The principle of equity (based on contributions)

• Prevails in individualistic cultures

• The principle of equality (based on equal division of rewards)

• More likely in collectivistic cultures

• The principle of need (based on individual needs)