Motivation in
Multinational Companies
Chapter 13, part 1
Chapter Outline
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Work values and the meaning of work
Work motivation and the national context
Theories of work motivation in the
multinational context
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Need theories
Process theories
Motivation and job design
Motivation in Multinationals
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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
Four Major Functions of Work
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Providing needed income
Providing security
Contact with other people
A feeling of accomplishment
Exhibit 13.1:
Ratings of Major Functions of Work
Why Do People Work?
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Emphasis differs by country
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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:
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Some collective cultures and the social
democracies (examples: Germany,
Scandinavian countries)
How Much Do People Value Work?
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Work centrality: overall value of work in a
person’s life, as compared to other activities,
such as leisure and family
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Work centrality varies by countries
In countries with high work centrality, people tend
to work more hours per week
High levels of work centrality may lead to
dedicated workers
Desired Job Characteristics
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Goals that people hope to achieve from
working
Ranking of the work characteristics for 50
countries
1.
2.
3.
4.
5.
Generous holidays (73%)
An opportunity to use initiative (53%)
Good hours (53%)
Respected job (50%)
Responsible job (46%)
Importance of Work
Achievement (42%)
7. Interesting (39%)
8. Abilities (36%)
9. Good job security (30%)
10. Good pay (19%)
Desire for generous holidays almost universal (Japan
is an exception)
However, priorities given to different job
characteristics vary by country
6.
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Exhibit 13.4: Importance Rankings of
Work Characteristics in Nine Countries
Exhibit 13.4: Importance Rankings of
Work Characteristics in Nine Countries
Work Values and the Meaning of
Work: Conclusions
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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.
The Basic Work-Motivation Process
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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
Unsatisfied
need
Drive toward goal to
satisfy need
Attainment of goal
(need satisfaction)
Work Motivation
and National Context
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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
Exhibit 13.5: The Basic Work Motivation
Process and National Context
National Context
and Work Motivation
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Culture and social institutions
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Influence the priority people attach to work
Define what behaviors are legitimate ways to
satisfy goals
Influences reactions to goal-directed behaviors at
work – what is rewarded or punished, and how
Influences employees' relationships with the
organization they work for
Need Theories of Motivation
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Four need theories of motivation
 Maslow’s Hierarchy of Needs
 ERG theory
 Motivator-hygiene theory
 Achievement motivation theory
Need theories and Hofstede's dimensions of
culture
Maslow’s Hierarchy of Needs
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Physiological needs: food, clothing, shelter,
and other basic physical needs
Security: safety, stability, absence of pain
Social: need to interact with others, affiliate
with others, and feel wanted by others
Esteem: needs for power, status, influence
Self-actualization: desire to reach one's full
potential by becoming everything that one is
capable of being
Maslow’s Hierarchy of Needs
Selfactualization
Esteem
Social
Security
Physiological
Maslow’s Hierarchy of Needs (2)
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States that people have five basic types of
needs
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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
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Then people try to satisfy higher needs
Exhibit 13.6: Need Theories of
Motivation
Alderfer’s ERG Theory
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Simplified hierarchy of needs, including
existence needs, relatedness needs, and
growth needs
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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.
Motivator-Hygiene Theory
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Theory that there are two sets of factors that
influence job satisfaction: motivators and hygiene
factors
Motivators correspond to Maslow's high-level needs.
 Job content factors, such as achievement,
recognition, responsibility, advancement, and the
work itself
 They produce satisfaction with the job
 More important in motivating employees than
hygiene factors in most cultures.
Motivator-Hygiene Theory (2)
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Hygiene factors correspond to Maslow's low level and
middle level needs.
 Job context variables that include salary,
interpersonal relations, supervision, working
conditions, and company policies and
administration
 When these factors are not adequate, employees
become dissatisfied with the job.
Achievement Motivation Theory
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Theory that only some people have the need
to win in competitive situations or to exceed a
standard of excellence
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Three key needs for achievement-motivated
people: achievement, affiliation, and power
High achievement people have needs to win and
to set own goals and seek challenging situations
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They also avoid goals that they think are too difficult to
achieve
Achievement Motivation Theory (2)
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People who have strong a achievement need:
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Want personal responsibility for solving problems
Tend to be moderate risk takers
Want immediate, concrete feedback about their
performance
Are competitive and often do not get along well
with other people
Achievement motivation is learned and can
sometimes be developed through training
Achievement Motivation Theory (3)
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Cultures that support achievement motivation include
 English-speaking countries – highly individualism
 Countries that reward entrepreneurial effort
In countries with low masculinity, quality of life is likely
to be a better motivator than achievement
Achievement motivation training has been successful in
some developing countries
How to Encourage Achievement Motivation
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Train people to
 Obtain feedback on performance
 Use the feedback to make efforts in areas where
they are likely to succeed
 Emulate people who have been successful
achievers
 Develop an internal desire for success and
challenges
 Daydream in positive terms by picturing
themselves as being successful in the pursuit of
important objectives
Exhibit 13.8: Rankings of the Importance of
Job-Related Sources of Need Satisfaction for
Seven Countries
Exhibit 13.9: Hofstede’s Dimensions of National
Culture and Motivators at Work
Applying Need Theories in
Multinational Settings
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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
needs
 Example: different jobs are respected in different
cultures
Understand limitations of available jobs to satisfy needs