MAN4605Chapter 12 and 13 Final ExamChapter 12• rewards are distinct in different cultures• 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 incentiveso a person with an unsatisfied need will take goal-directed behavior to satisfy the needo ** 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 cultureso 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 pursuedo 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 goalso 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 evolveo 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 processo 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 ***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 needb. in work motivations, this is satisfied through wages and salaries paid2. safety needs- desires for security, stability, and the absence of paina. in work motivations, this is satisfied by safety programs and equipment and providing security through medical insurance, unemployment, and retirement plans3. social needs- desires to interact and affiliate with others and to feel wanted by othersa. in work motivations, this is satisfied through social interaction with work groups where people give and receive friendship, in formal and in informal groups4. esteem needs- needs for power and statusa. individuals need to feel important and receive recognition from othersb. in work motivations, this is satisfied through promotions, awards, and feedback leading to self-confidence prestige, and self-importance5. self-actualization needs- desires to reach one’s full potential, to become everything that one is capable of becoming as a human beinga. 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 Hierarchyo 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 expectationo 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 settingo he said that job categories are a more effective way of examining motivationo Haire and Hofstede did a study