Transcript Motivation in Multinational Companies

Motivation in
Multinational Companies
Chapter 13, part 2
Outline
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Process theories of motivation
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Expectancy theory
Equity theory
Goal-setting theory
Reinforcement theory
Multinational applications of these theories
Motivation and job design
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Job characteristics model
Sociotechnical systems approach
Expectancy Theory
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Three factors
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Expectancy: an individual’s belief that his or her
effort will lead to some desired result
Valence: the value that the person attaches to the
outcome of efforts. How important is this?
Instrumentality: the links between early and later
results of the work effort (long-term benefits)
Motivation = Expectancy x Valence x
Instrumentality
Applying Expectancy Theory in
Multinational Settings
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Two key issues
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Identify valued outcomes of work
Use culturally appropriate ways to convince
employees that their efforts will lead to desirable
ends
Equity Theory
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Focuses on the fairness that people perceive in
the rewards that they receive for their efforts
at work
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There are no universal standards for fairness in the
input/output (effort/reward) equation.
People compare themselves to others and adjust
their input (effort).
Applying Equity Theory in
Multinational Settings
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Beliefs about equity vary – what is fair?
Three principles of allocating rewards
 The principle of equity (based on contributions)
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The principle of equality (based on equal division
of rewards)
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Prevails in individualistic cultures
More likely in collectivistic cultures
The principle of need (based on individual needs)
Applying Equity Theory in
Multinational Settings (2)
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If expatriates are paid much more than host-country
nationals, host-country employees may see this as
unfair.
The perception of inequity can be reduced by
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Paying host-country employees more than their peers in
other companies
Treating host-country employees with respect
Explaining why expatriate employees are needed, at least
during the early years of an international venture
Providing opportunities for host-country nationals to advance
Goal Setting Theory
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Assumption that having a goal is motivating
The principles of goal setting
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Set clear and specific goals
Assign challenging but achievable goals
Increase employee acceptance of goals
Provide incentives to achieve goals
Give feedback on goal attainment
Goal setting theory works in most cultures
Goal Setting Theory (2)
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In collectivist cultures, it may be wise to set
goals for work groups, not individuals
In participative goal setting, individuals or
work groups have a role in setting the goals.
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In collectivist cultures, it may work better to have
work groups, rather than individuals, propose
goals
In Norway and Great Britain, workers prefer that
management work with union officials to set goals
Reinforcement Theory
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Operant conditioning: model proposes that
behavior is a function of its consequences
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Positive reinforcement—response with
rewarding consequence
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Does not focus on a psychological process that
affects motivation
Pleasurable consequence = behavior continues
Punishment—negative consequence
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Unpleasant consequence = behavior stops
Exhibit 13.12: Management Examples of OperantConditioning Process and Types of Consequences
Applying Reinforcement Theory in
Multinational Settings
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Positive reinforcement works better than negative
reinforcement
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In the long term, punishment is less effective than
reinforcement.
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National context defines acceptable and legitimate rewards
Punishment causes resentment and can produce undesirable
consequences for the company.
In low-context cultures (English-speaking countries,
most of Europe), extinction takes more time to work
than reinforcement or punishment
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Extinction is commonly used in Japan and Korea (high context)
Multinational Applications of
Process/Reinforcement Theories
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Expectancy theory: key is identifying nationally
appropriate rewards that have positive valence
Equity theory: assess meaning and principle of equity in
national context
Goal-setting theory: should goals be assigned to groups
or individuals?
Reinforcement theory: what people value at work will
influence the types of reinforcers that can be used
Job-Characteristics Model
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Three critical psychological states as
motivating
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A person must believe that his or her job is
meaningful.
A person must believe that he or she is
responsible or accountable for the outcome of
work.
A person must understand how well he or she has
performed.
Core Characteristics of Jobs
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Skill variety: the job requires the use of different
skills and abilities
Task identity: allowing a person to complete a "whole
piece of work"
Task significance: increases when a job has important
effects on other people
Autonomy: people can control their job procedures
and schedules (when tasks are done)
Feedback: people get timely information on their
performance
Exhibit 13.14: A Motivating Job in the JobCharacteristics Model
Motivation and Job Design:
European Perspective
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Sociotechnical systems (STS) approach: focuses on
designing motivating jobs by blending the social
system with different technologies
Autonomous work group: team or unit that has
nearly complete responsibility for a particular task
Team’s task is focus of job enrichment and job
characteristics
Choosing Job-Enrichment
Techniques in Multinational Settings
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Distinction between individualistic and
collectivist cultures should determine the
choice of job-enrichment
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U.S.—individual
Japan—team
Social loafing: term used when people
expend less effort when they work in groups
in individualistic cultures
Exhibit 13.15: Comparing the Performance of
Chinese, U.S., and Israeli Managers Working
Alone and in Groups