MAN4605 Chapter 12 and 13 Final Exam rewards are distinct in different cultures Chapter 12 in America individual financial reward is best while in eastern countries collective financial rewards are best received intrinsic rewards is important around the world however what is meaningful and rewarding differs from country to country effectively motivating across cultures can create a competitive advantage that are difficult for competitors to match The Nature of Motivation motivation a psychological process through which unsatisfied wants or needs lead to drives that are aimed at goals or incentives o a person with an unsatisfied need will take goal directed behavior to satisfy the need o unsatisfied need drives toward goal to satisfy need attainment of goal need satisfaction Three basic elements unsatisfied need drives goal attainment intrinsic a determinant of motivation by which an individual experiences fulfillment through carrying out an activity itself and helping others extrinsic a determinant of motivation by which the external environment and result of the activity in the form of competition and compensation or incentive plans are of great importance What is being argued whether MNCs can use the same motivation from home country to use in other countries or whether those motivations need to be tailor made to specific cultures o are the differences really significant or can the motivation be applied throughout the world The Universalist Approach all people are motivated to pursue goals they value high valence or preference o the process is universal but culture affects the content and goals that are pursued o ex Americans value money Japanese value respect and Latin Americans family the universalist approach is saying that everyone is motivated by goals they value so americans by Japanese by respect etc and so the process is universal give incentives that people value universally but those incentives differ by culture o In the U S personal success and professional achievement are motivators and promotions and increased earnings are the goals motivations lead to goals o in China group affiliation is an important need and social harmony is an important goal needs are the things that motivates someone to have a goal o Study in Russia found that 1 some of the American motivators were also motivators for Russians 2 the danger of making universalist assumptions and that 3 motivators change as nations evolve o a study found that the frequency that one is involved in various skill activities reflects the relative frequency of others from same nation and different nations that are also involved in the same activity thus giving some support for the universalist approach The Assumption of Content and Process work motivation can be broken into content and process o content theories of motivation theories that explain work motivation in terms of what arouses energizes or initiates employee behavior most int l research is content based b c they have more general terms and are more useful in creating a picture of motivation in a particular country region a a a b Three content theories hierarchy of need theory two factor motivation theory and achievement motivation theory o process theories of motivation theories that explain work motivation by how employee behavior is initiated redirected and halted sophisticated focus on individual behavior in specific things thus less value in international settings Three process theories equity theory goal setting theory and expectancy theory The Hierarchy of Needs Theory Maslow s Helps understand employee motivation throughout the world with UPPER level managers Everyone has 5 basic needs In ascending order with the beginning being most basic 1 physiological needs basic physical needs for water food clothing and shelter a The drive to satisfy this need is greater than any other need b in work motivations this is satisfied through wages and salaries paid 2 safety needs desires for security stability and the absence of pain in work motivations this is satisfied by safety programs and equipment and providing security through medical insurance unemployment and retirement plans 3 social needs desires to interact and affiliate with others and to feel wanted by others in work motivations this is satisfied through social interaction with work groups where people give and receive friendship in formal and in informal groups 4 esteem needs needs for power and status individuals need to feel important and receive recognition from others in work motivations this is satisfied through promotions awards and feedback leading to self confidence prestige and self importance 5 self actualization needs desires to reach one s full potential to become everything that one is capable of becoming as a human being a in work motivations this is through mastering his environment and achieving personal goals Basic assumptions of Maslow s Hierarchy 1 lower level needs must be satisfied before higher level needs 2 a need that is satisfied no longer serves as a motivator 3 there are more ways to satisfy higher level goals than lower level goals International Findings on Maslow s Hierarchy o In the Western world autonomy and self actualization were the most important needs BUT those are the same needs that managers reported they were least satisfied Haire concluded the degree to which those needs were being satisfied didn t live up to their expectation o in the Eastern world Nevis believes that a more collectivist approach is needed The Chinese would have 4 levels most basic to highest social physiological safety and self actualization if this is true MNCs will have to reexamine motivation techniques using cultural factors that are unique to their surroundings as opposed to the universal Western approach o even though the hierarchy is culturally specific it offers a way to study and apply work motivations Hofstede however said that need satisfaction is NOT a useful way to address motivation b c there are so many subcultures within a country that it s difficult to figure out which culture variables are at work in a particular setting o he said that job categories are a more effective way of examining motivation o Haire and Hofstede did a study with 60 000 people in all types of jobs and asked them to rank a series o they found a correlation between job types and levels and the need hierarchy of 19 work goals o Results The top four goals ranked by professionals high Maslow The top