International Management International Ninth Edition Management Ninth Edition Chapter 12 Motivation Across Cultures Luthans | Doh Fred Luthans Jonathan P. Doh International Management Ninth Edition Luthans | Doh Motivation Across Cultures • The specific objectives of this chapter are to 1. 2. 3. 4. 5. DEFINE motivation, and explain it as a psychological process. EXAMINE the hierarchy-of-needs, two-factor, and achievement motivation theories, and assess their value to international human resource management. DISCUSS how an understanding of employee satisfaction can be useful in human resource management throughout the world. EXAMINE the value of process theories in motivating employees worldwide. UNDERSTAND the importance of job design, work centrality, and rewards in motivating employees in an international context. International Management Ninth Edition Luthans | Doh The Nature of Motivation • Motivation – A psychological process through which unsatisfied wants or needs lead to drives that are aimed at goals or incentives • The determinants of motivation can be – Intrinsic • An individual experiences fulfillment through carrying out an activity itself and helping others. – Extrinsic • The external environment and result of the activity in the form of competition or compensation or incentive plans are of great importance. International Management Ninth Edition The Basic Motivation Process Luthans | Doh International Management Ninth Edition Luthans | Doh Motivation Across Cultures The Universalist Assumption • The Universalist Assumption – The motivation process is universal; all people are motivated to pursue goals they value. – But, culture influences specific content and goals pursued. – So, the specific nature of motivation differs across cultures. – The motivational process may be the same, but the specific needs and goals can be different between the two cultures. – The ways in which individuals in emerging and changing nations are motivated will change. International Management Ninth Edition Luthans | Doh Motivation Across Cultures The Assumption of Content and Process • The Assumption of Content and Process • Content Theories of Motivation – Explains work motivation in terms of what arouses, energizes, or initiates employee behavior – The subject of most research in the field • Process Theories of Motivation – Explains work motivation by how employee behavior is initiated, redirected, and halted – More sophisticated and focused on individual behavior in specific setting International Management Ninth Edition Luthans | Doh The Hierarchy-of-Needs Theory • Maslow’s theory – Five basic needs constitute a need hierarchy. 1. Physiological: basic physical needs for water, food, clothing, and shelter 2. Safety: desires for security, stability, and absence of pain 3. Social: needs to interact and affiliate with others and the need to feel wanted by others 4. Esteem: needs for power and status 5. Self-actualization: desire to reach one’s full potential International Management Ninth Edition Luthans | Doh The Hierarchy-of-Needs Theory • Maslow’s theory rests on a number of assumptions: – Lower-level needs must be satisfied before higherlevel needs become motivators. – A need that is satisfied no longer motivates. – There are more ways to satisfy higher-level needs than there are ways to satisfy lower-level needs. • These assumptions have driven much of the international research on the theory. International Management Ninth Edition Maslow’s Need Hierarchy Luthans | Doh International Management Ninth Edition Luthans | Doh The Hierarchy-of-Needs Theory International Findings • Haire’s study indicated that all needs are important to respondents across cultures. – International managers (not rank and file employees) indicated that upper-level needs were of particular importance to them. – Findings for select country clusters (Latin Europe, U.S./UK, Nordic Europe) indicated autonomy and selfactualization were the most important and least satisfied needs for respondents. – Business firms will have to be concerned with the satisfaction of these needs for their managers and executives. International Management Ninth Edition Luthans | Doh The Hierarchy-of-Needs Theory International Findings • Another study of East Asian managers in eight countries found autonomy and self-actualization in most cases ranked high. • Some researchers have suggested modification of Maslow’s Western-oriented hierarchy by re-ranking needs. – Asian culture emphasizes the needs of society – A Chinese hierarchy of needs might have four levels ranked from lowest to highest: • • • • Belonging (social) Physiological Safety Self-actualization (in service of society) International Management Ninth Edition Collectivist Need Hierarchy Luthans | Doh International Management Luthans | Doh Ninth Edition Top-Ranking Goals for Professional Technical Personnel from a Large Variety of Countries continues International Management Ninth Edition Luthans | Doh Top-Ranking Goals for Professional Technical Personnel from a Large Variety of Countries International Management Ninth Edition Luthans | Doh The Four Most Important Goals Ranked by Occupational Group and Related to the Need Hierarchy International Management Ninth Edition Luthans | Doh The Two-Factor Theory of Motivation • The Herzberg Theory – A theory that identifies two sets of factors that influence job satisfaction. • Motivators: Job-content factors such as achievement, recognition, responsibility, advancement, and the work itself. Only when motivators are present will there be satisfaction. • Hygiene Factors: Job-context factors such as salary, interpersonal relations, technical supervision, working conditions, and company policies and administration. If hygiene factors aren’t taken care of there will be dissatisfaction. International Management Ninth Edition Luthans | Doh Herzberg’s Two-Factor Theory International Management Ninth Edition Luthans | Doh The Relationship Between Maslow’s Need Hierarchy and Herzberg’s Two Factor Theory International Management Ninth Edition Luthans | Doh The Two-Factor Theory of Motivation International Findings • International findings on Herzberg’s theory – Research tends to support Herzberg’s theory – Hines • Surveyed 218 middle managers and 196 salaried employees in New Zealand • Found validity across occupational levels – Similar study conducted among 178 Greek managers: Overall theory held true. – Study in an Israeli kibbutz: “Satisfactions arise from the nature of the work itself, while dissatisfactions have to do with the conditions surrounding the work.” International Management Ninth Edition Motivation Factors in Zambia Luthans | Doh International Management Ninth Edition Luthans | Doh Selected Countries Hygiene and Motivation continues International Management Ninth Edition Selected Countries Hygiene and Motivation Luthans | Doh International Management Ninth Edition Luthans | Doh The Results of Administering the JOI to Four Cross-Cultural Groups International Management Ninth Edition Luthans | Doh Achievement Motivation Theory • Achievement motivation theory – Holds that individuals can have a need to get ahead, to attain success, and to reach objectives. • Profile of high achievers – They like situations in which they take personal responsibility for finding solutions to problems. – They tend to be moderate risk-takers rather than high or low risk takers. – They want concrete feedback on performance. – They often tend to be loners, and not team players. International Management Ninth Edition Luthans | Doh Achievement Motivation Theory • To develop high achievement needs, individuals should – Obtain feedback on performance and use the information to channel efforts into areas where success is likely. – Emulate people who are successful achievers. – Develop an internal desire for success and challenges. – Daydream in positive terms by picturing self being successful in the pursuit of important objectives. International Management Ninth Edition Luthans | Doh Achievement Motivation Theory International Findings • Polish industrialists were high achievers. – Scoring 6.58 (U.S. managers’ scored an average 6.74) • Some studies did not find a high need for achievement in Central European countries. – Average score for Czech managers was 3.32―considerably lower than for U.S. managers. • Achievement motivation theory must be modified to meet specific needs of local culture. – Culture of many countries doesn’t support high achievement. – Anglo cultures and those rewarding entrepreneurial effort do support achievement motivation, and their human resources should probably be managed accordingly. International Management Ninth Edition Luthans | Doh Selected Countries on the UncertaintyAvoidance and Masculinity Scales International Management Ninth Edition Luthans | Doh Select Process Theories Equity Theory • Equity Theory – Focuses on how motivation is affected by people’s perception of how fairly they are being treated. • When people perceive they are treated equitably, this will have a positive effect on their job satisfaction. • If people believe they aren’t being treated fairly (especially relative to relevant others), they will be dissatisfied, leading to negative effect on job performance; they will attempt to restore equity. – While there is considerable support for the theory in the Western world, support is mixed on an international basis. International Management Ninth Edition Luthans | Doh Select Process Theories International Findings • International findings on equity theory – Israeli kibbutz production unit, everyone is treated the same but managers reported lower satisfaction levels than workers. • Managers perceived contributions greater than other groups in kibbutz and felt under-compensated for value and effort. – Employees in Asia and Middle East often readily accept inequitable treatment in order to preserve group harmony. – Japanese men and women (and in Latin America) typically receive different pay for doing same work; due to years of cultural conditioning women may not feel treated inequitably. International Management Luthans | Doh Ninth Edition Individualistic and Collectivist Approaches to Equity Model continues International Management Ninth Edition Individualistic and Collectivist Approaches to Equity Model Luthans | Doh International Management Ninth Edition Luthans | Doh Select Process Theories Goal-Setting Theory • Goal-Setting Theory – Focuses on how individuals set goals and respond to them and the overall impact of this process on motivation. • Specific areas given attention in this theory – – – – – Level of participation in goal setting Goal difficulty Goal specificity Importance of objective Timely feedback to progress toward goals International Management Ninth Edition Luthans | Doh Select Process Theories Goal-Setting Theory • Goal setting theory is continually refined and developed. • Considerable research evidence exists showing employees performing extremely well when assigned specific and challenging goals in which they have a hand in setting. • Most studies have been conducted in US; just a few have been carried out in other cultures. International Management Ninth Edition Luthans | Doh Select Process Theories International Findings • International findings on goal setting theory – Norwegian employees shunned participation and preferred to have union representatives work with management to determine work goals. – Individual participation in goal setting was inconsistent with the prevailing Norwegian philosophy of participation through a union rep. – In the U.S., employee participation in goal setting is motivational; no value for Norwegian employees in this study. – The value of goal-setting theory may well be determined by culture. International Management Ninth Edition Luthans | Doh Select Process Theories Expectancy Theory • Expectancy theory – A process theory that postulates that motivation is influenced by a person’s belief that • • • • Effort will lead to performance. Performance will lead to specific outcomes. Outcomes will be of value to the individual. High performance followed by high rewards will lead to high satisfaction. International Management Ninth Edition Luthans | Doh Select Process Theories International Findings • International findings on expectancy theory – Eden found some support for the theory while studying workers in an Israeli kibbutz. – Matsui and colleagues found it could be successfully applied in Japan. • The theory seems culture-bound. – It is based on employees having considerable control over their environment (which does not exist in many cultures). International Management Ninth Edition Luthans | Doh Motivation Applied: Job Design, Work Centrality, and Rewards • Job Design – A job’s content, the methods that are used on the job, and the way the job relates to other jobs in the organization. • Quality of work life (QWL) is not the same throughout the world. – Assembly-line workers in Japan work at a rapid pace for hours and have little control over their work activities. – Assembly-line workers in Sweden work at more relaxed pace and have a great deal of control over work activities. – U.S. assembly-line workers typically work somewhere in between―at a pace less demanding than Japan’s but more structured than Sweden’s. – QWL may be directly related to culture of the country. International Management Ninth Edition Luthans | Doh Cultural Dimensions in Japan, Sweden, and the United States International Management Ninth Edition Luthans | Doh Motivation Applied: Job Design, Work Centrality, and Rewards Socio-Technical Job Designs • Sociotechnical designs – Job designs that blend personnel and technology. • The objective of these designs is to integrate new technology into the workplace so that workers accept and use it to increase overall productivity. – New technology often requires people learn new methods and in some cases work faster. • Employee resistance is common. – Some firms introduced sociotechnical designs for better blending of personnel and technology without sacrificing efficiency. International Management Ninth Edition Luthans | Doh Motivation Applied: Job Design, Work Centrality, and Rewards Work Centrality • Work centrality – The importance of work in an individual’s life relative to other areas of interest • Can provide important insights into how to motivate human resources in different cultures – – – – Japan has highest level of work centrality. Israel has moderately high levels. U.S. and Belgium have average levels. The Netherlands and Germany have moderately low levels. – Britain has low levels. International Management Ninth Edition Luthans | Doh Motivation Applied: Job Design, Work Centrality, and Rewards Value of Work • Work is an important part of people’s lives in the U.S. and Japan. – Americans and Japanese work long hours because the cost of living is high. – Most Japanese managers expect salaried employees who aren’t paid extra to stay late at work; overtime has become a requirement of the job. – Recent evidence exists that Japanese workers may do far less work in business day than outsiders would suspect. International Management Ninth Edition Luthans | Doh Motivation Applied: Job Design, Work Centrality, and Rewards Value of Work • There is a growing interest in the impact of overwork on employees. – In Japan, one-third of the working-age population suffers from chronic fatigue. • The Japanese prime minister’s office found the majority of those surveyed complained of – Chronic exhaustion – Emotional stress – Abusive conditions in workplace – Karoshi (“overwork” or “job burnout”) is now recognized as a real social problem. International Management Ninth Edition Luthans | Doh Reward Systems • Managers everywhere use rewards to motivate personnel – However, significant differences exist between reward systems that work best in one country and those that are most effective in another. • Many cultures base compensation on group membership – Sometimes these are financial in nature such as salary raises, bonuses, and stock options. – Workers in many countries motivated by things other than financial rewards International Management Ninth Edition Luthans | Doh Incentives and Culture • The use of financial incentives to motivate employees is very common. – But, culture influences the types of incentives that are considered to be important. • Financial incentive systems vary. – Individual incentive-based pay systems in which workers paid directly for output – Systems in which employees earn individual bonuses based on organizational performance goals International Management Ninth Edition Luthans | Doh Review and Discuss 1. Do people throughout the world have needs similar to those described in Maslow’s need hierarchy? What does your answer reveal about using universal assumptions regarding motivation? 2. Is Herzberg’s two-factor theory universally applicable to human resource management, or is its value limited to Anglo countries? International Management Ninth Edition Luthans | Doh Review and Discuss 3. What are the dominant characteristics of high achievers? Using Figure 12–7 as your point of reference, determine which countries likely will have the greatest percentage of high achievers. Why is this so? Of what value is your answer to the study of international management? International Management Ninth Edition Luthans | Doh Review and Discuss 4. A U.S. manufacturer is planning to open a plant in Sweden. What should this firm know about the quality of work life in Sweden that would have a direct effect on job design in the plant? Give an example. 5. What does a U.S. firm setting up operations in Japan need to know about work centrality in that country? How would this information be of value to the multinational? Conversely, what would a Japanese firm need to know about work centrality in the United States? Explain. International Management Ninth Edition Luthans | Doh Review and Discuss 6. In managing operations in Europe, which process theory―equity, goal-setting, or expectancy―would be of most value to an American manager? Why? 7. What do international managers need to know about the use of reward incentives to motivate personnel? What role does culture play in this process?