Motivation in Multinational Companies

Chapter 13, part 2

Outline

Process theories of motivation Expectancy theory Equity theory Goal-setting theory Reinforcement theory Multinational applications of these theories

Motivation and job design Job characteristics model Sociotechnical systems approach

Expectancy Theory Three factors

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

Two key issues Identify valued outcomes of work Use culturally appropriate ways to convince

employees that their efforts will lead to desirable ends

Equity Theory

Focuses on the fairness that people perceive in the rewards that they receive for their efforts at work 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

Beliefs about equity vary – what is fair? 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)

Applying Equity Theory in Multinational Settings (2)

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 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

Assumption that having a goal is motivating

The principles of goal setting 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) 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. 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 Operant conditioning: model proposes that

behavior is a function of its consequences Does not focus on a psychological process that

affects motivation Positive reinforcement—response with

rewarding consequence Pleasurable consequence = behavior continues

Punishment—negative consequence Unpleasant consequence = behavior stops

Exhibit 13.12: Management Examples of Operant-Conditioning Process and Types of

Consequences

Applying Reinforcement Theory in Multinational Settings

Positive reinforcement works better than negative reinforcement

National context defines acceptable and legitimate rewards In the long term, punishment is less effective than

reinforcement. 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

Extinction is commonly used in Japan and Korea (high context)

Multinational Applications of Process/Reinforcement Theories

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

Three critical psychological states as motivating 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 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 Job-Characteristics Model

Motivation and Job Design: European Perspective

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

Distinction between individualistic and collectivist cultures should determine the choice of job-enrichment 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