Chapter 13

1. Why international negotiation is more complex than domestic negotiation? Why communication skills are crucial in the arena of international business? What are different types of international negotiations?

2. What roles interpreters can play in the international negotiations? What skills are necessary in international negotiation and how one prepares for it?

3. What are various steps in international negotiation? Pick up three and explain why they are important.

Chapter 14

4. What are the Work Centrality, Work Obligation, Extrinsic and Intrinsic values in working? People in emerging economies have what kinds of inclinations and why?

5. What are the differences between need and process theories of motivation? What are the components of  Maslow’s theory of needs? Where that theory is placed among other theories of motivation? Where are areas of similarities and difference? 

6. What role national cultures play in motivation? How equity theory can be described in the context of culture and motivation?  

Chapter
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13
International Negotiation and
Cross-Cultural Communication

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Learning Objectives (1 of 2)
Understand the basics of verbal and nonverbal communication that may influence cross-cultural management and negotiation.
Describe the basic international negotiation processes from preparation to closing the deal.
Explain the basic tactics of international negotiations.
Recognize and respond to “dirty tricks” in international negotiations.

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Learning Objectives (2 of 2)
Know the differences between the problem-solving and competitive approaches to international negotiation.
Identify the personal characteristics of the successful international negotiator.

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International Negotiation
International Negotiation: the process of making business deals across cultures; it precedes any multinational project
Without successful negotiation and the accompanying cross-cultural communication, there are seldom successful business transactions.
As the world becomes increasingly global, companies will need to become adept at such negotiations.

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The Basics of Cross-Cultural Communication (1 of 2)
Successful international negotiation requires successful cross-cultural communication.
Negotiators must understand all components of culturally different communication styles, both verbal and nonverbal, including:
Subtle gestures of hand and face
The use of silence
What is said or not said

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The Basics of Cross-Cultural Communication (2 of 2)
Mistakes often go unnoticed by the communicator, but they can do damage to international relationships and negotiations.
Major issues in cross-cultural communication:
Relationship between language and culture
Cultural differences in communication styles
Nonverbal communication
How and when to use interpreters
Speaking to nonnative speakers of your language
Cross-cultural communication errors from faulty attributions

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Language and Culture (1 of 2)
Language is so essential to culture that many consider linguistic groups synonymous with cultural groups.
Whorf hypothesis: the theory that a society’s language determines the nature of its culture
Words provide the concepts of understanding the world; language structures the way we think about it.
All languages have limited sets of words.
Restricted word sets constrain the ability to conceptualize the world.

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Language and Culture (2 of 2)
Languages are critical because people from different countries use language to negotiate.
A common language is needed for such negotiations.
Common languages allow foreign direct investment and international trade to flourish.
Languages are powerful in that they have the capacity of lowering transaction costs for people from different countries by facilitating understanding between people.
It is therefore critical for multinationals to assess the language proficiency of their employees.

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High- and Low-Context Languages (1 of 2)
Low-context Language: people state things directly and explicitly, and you need not understand the context.
Examples: Most northern European languages including German, English, and the Scandinavian languages
High-context Language: people state things indirectly and implicitly.
Asian and Arabic languages
Communications may have multiple meanings depending on the context

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Exhibit 13.1:
Country Differences in High-Context and Low-Context Communication

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High- and Low-Context Languages (2 of 2)
Steps to ensure that the multinational has the employees with the necessary language skills
Adopt a common language (a lingua franca)
Pay attention to employees with strong growth potential
Provide necessary language training for these employees
Provide language training during work hours

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Basic Communication Styles (1 of 2)
Other cultural differences in communication can influence cross-cultural interactions & negotiations.
Direct Communication: communication that asks questions, states opinions, comes to the point and lacks ambiguity
Indirect Communication: people attempt to state their opinions or ask questions by implied meaning, believing direct communication is impolite

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Basic Communication Styles (2 of 2)
Formal Communication: communication that acknowledges rank, titles, and ceremony in prescribed social interaction
People in the U.S. are among the least formal in communication, casually using first names, and dispensing with titles.
Most other cultures communicate with more formality, especially in business settings, taking care to acknowledge rank and titles when addressing others.

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Exhibit 13.2:
Cultural Differences in
Communication Styles

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Nonverbal Communication
Nonverbal Communication means communicating without words.
One may communicate without speaking; people gesture, smile, hug, and engage in other behaviors that supplement or enhance spoken communication.
Such nonverbal communication includes:
Kinesics, proxemics, haptics, oculesics, and olfactics

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Kinesics
Kinesics means communication through body movements.
Every culture uses posture, facial expressions, hand gestures and movement to communicate non-verbally.
Most Asian cultures use bowing to show respect.
It’s easy to misinterpret the meaning of body movements in another culture.
The safest strategy is to minimize their use.

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Proxemics
Proxemics focuses on how people use space to communicate.
Each culture has an appropriate distance for various levels of communication; violations of space may be uncomfortable or even offensive.
The personal bubble of space may range from 9 inches to over 20 inches.
North Americans prefer 20 inches, while Latin and Middle East cultures prefer less.

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Haptics or Touching, Oculesics, and Olfactics (1 of 3)
Haptics or touching is communication through body contact, and is related to proxemics.
The type of touching deemed appropriate is deeply rooted in cultural values. Generally:
No touching cultures are Japan, U.S., England, and many Northern European countries;
Moderate touching cultures are Australia, China, Ireland, and India.
Touching cultures are Latin American countries, Italy and Greece.

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Haptics or Touching, Oculesics, and Olfactics (2 of 3)
Oculesics refers to communication through eye contact or gazing; the degree of comfort with eye contact varies widely:
U.S. and Canada: People are very comfortable and expect eye contact to be maintained for a short moment during conversations.
China and Japan: Eye contact is considered very rude and disrespectful; respect is shown by avoiding eye contact.

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Haptics or Touching, Oculesics, and Olfactics (3 of 3)
Olfactics is the use of smells as means of nonverbal communication.
U.S. and U.K: These cultures are uncomfortable with body odors, and may find it offensive.
Arabs are much more accepting of body odors, and consider them natural.
Negotiators must be aware of these perspectives and accept and adapt to them.

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Using Interpreters (1 of 4)
The role of an Interpreter is to provide a simultaneous translation of a foreign language.
This requires greater linguistic skills than speaking a language or translating written documents.
The Interpreter must have the technical knowledge and vocabulary to deal with technical details common in business transactions.
Even if a negotiator understands both languages, its best to have an interpreter to ensure the accuracy and common understanding of agreements.

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Using Interpreters (2 of 4)
Even with interpreters, the intended message is not always conveyed efficiently.
There is a significant gap between translation and communication.
Cultural context must be considered for communication to be effective.

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Using Interpreters (3 of 4)
Tips for the successful use of interpreters:
Spend time with the interpreter, so s/he gets to know your accent and general approach to conversation.
Go over technical and other issues with the interpreter to make sure they are properly understood.
Insist on frequent interruptions for translations rather than translations at the end of statements.
Learn about appropriate communication styles and etiquette from the interpreter.

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Using Interpreters (4 of 4)
Tips for the successful use of interpreters (cont.):
Look for feedback and comprehension by watching the listener’s eyes.
Discuss the message beforehand with the interpreter if it is complex.
Request that your interpreter apologize for your inability to speak in the local language.
Confirm through a concluding session with the interpreter that all key components of the message have been properly comprehended.

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Communication with Nonnative Speakers (1 of 2)
Tips to make communication easier and more accurate
Use the most common words with their most common meanings.
Select words with few alternative meanings.
Strictly follow the rules of grammar.
Speak with clear breaks between words.
Avoid sports words or words borrowed from literature.
Avoid words or expressions that are pictures.
Avoid slang.

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Communication with Nonnative Speakers (1 of 2)
Tips to make communication easier and more accurate
Mimic the cultural flavor of the nonnative speaker’s language.
Summarize.
Test your communication success.
Repeat basic ideas using different words when your counterpart does not understand.
Confirm important aspects in writing.

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International Negotiation (1 of 2)
International negotiation is more complex than domestic negotiation.
Differences in national cultures, & political, legal, and economic systems can separate business partners.
Most international businesspeople find it necessary to modify the negotiation styles of their home country.
To succeed, they must develop a style of negotiation based on the flexible application of sound principles.

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International Negotiation (2 of 2)
Aspects of negotiation affected by cross-cultural differences
The purpose of the negotiation
Risk taking
Communication styles
Form of agreements
Emotions
Negotiation style

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Steps in International Negotiations
Steps in international negotiation:
Preparation
Building the relationship
Exchanging information
First offer
Persuasion,
Concessions,
Agreement
Post agreement.

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Exhibit 13.3:
Steps in International Negotiations

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Step 1: Preparation (1 of 3)
Essential questions and issues to consider before a negotiation
Determine if the negotiation is possible.
Know exactly what your company wants.
Be aware of what can be compromised.
Know the other side.
Send the proper team.
Understand the agenda.
Prepare for a long negotiation.

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Step 1: Preparation (2 of 3)
Key negotiation style differences among cultures
What is the Negotiation goal – signing the contract or forming a relationship?
Should you use a formal or informal personal communication style?
Should you use a direct or indirect communication style?
Is sensitivity to time low or high?
What form of agreement – specific or general?

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Step 1: Preparation (3 of 3)
Key negotiation style differences among cultures (cont.)
What is the team organization – a team or one leader?
What is the attitude towards negotiation – win-lose or win-win?
What is the appropriate emotional display – high or low emotions?
Latin Americans and the Spanish show their emotions through negotiations.
Japanese and Germans tend to be more reserved.

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Exhibit 13.4:
Cultural Differences in
Preference for Broad Agreements

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Step 2:
Building the Relationship
At this stage, negotiators do not focus on the business issues, but on social and interpersonal matters.
Negotiation partners get to know one another.
They develop opinions regarding the personalities of the negotiators, including whether they can be trusted.
The duration, importance of this stage vary by culture.
U.S. negotiators are notorious in their attempts to get down to business after brief socializing.

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Step 3:
Exchanging Information
and the First Offer
Parties exchange task-related information on their needs for the agreement, which pertains to the actual details of the proposed agreement.
Typically, both sides make a formal presentation of what they desire out of the relationship.
Then, both sides usually present their first offer, which is their first proposal of what they expect from the agreement.

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Exhibit 13.6:
Information Exchange
and First-Offer Strategies

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Step 4:
Persuasion
In the persuasion stage, each side in the negotiation attempts to get the other side to agree to its position.
This is the heart of the negotiation process.
Numerous tactics are used, but two general types:
Standard verbal and nonverbal negotiation tactics, and
Some dirty tricks

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Verbal and Nonverbal Negotiation Tactics (1 of 2)
Verbal communication tactics common in international negotiations include:
Promise
Threat
Recommendation
Warning
Reward
Punishment

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Verbal and Nonverbal Negotiation Tactics (2 of 2)
Verbal communication tactics common in international negotiations include (con’t.)
Normative appeal
Commitment
Self disclosure
Question
Command
Refusal
Interruption

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Exhibit 13.7:
Comparison of Brazilian, U.S.,
and Japanese Negotiators

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Dirty Tricks in International Negotiations (1 of 2)
All negotiators want to get the best deal for their company, and they use a range of tactics to do that.
However, people from different cultures consider some negotiating tactics dirty tricks: negotiation tactics that pressure opponents to accept unfair or undesirable agreements or concessions.
Cultures differ on the norms and values that determine acceptable strategies for negotiation; some examples follow.

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Dirty Tricks in International Negotiations (2 of 2)
Dirty tricks and possible response tactics:
Deliberate deception or bluffing – Point out what you believe is happening.
Stalling – Don’t reveal when you plan to leave.
Escalating authority – Clarify decision making authority.
Good-guy, bad-guy routine – Don’t make any concessions.
You are wealthy, we are poor – Ignore the ploy and focus on the mutual benefits of potential agreement.
Old friends – Keep a psychological distance.

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Step 5 and 6:
Concessions and Agreement
(1 of 2)
Concession Making requires that each side relax some of its demands to meet the other party’s needs.
Styles of concession making differ among cultures:
Sequential approach: Each side reciprocates concessions made by the other side.
Common in North America
Holistic approach: Each side makes very few, if any, concessions until the end of the negotiation
Common in Asia

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Step 5 and 6:
Concessions and Agreement
(2 of 2)
Successful negotiations result in the Final agreement: the signed contract, agreeable to all sides.
The agreement must be consistent with the chosen legal system or systems.
The safest contracts are legally binding in the legal systems of all the signers.
Most important, people from different national and business cultures must understand the contract in principle, and have a true commitment beyond legal.

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Basic Negotiating Strategies
There are two basic negotiating strategies:
Competitive Negotiation: Each side tries to give as little as possible and win the maximum for its side.
Seeks win-lose resolution; uses dirty tricks.
Seldom leads to long-term relationships or trust.
Problem solving: Negotiators seek mutually satisfactory ground beneficial to both parties.
Search for possible win-win situations; no dirty tricks.
Builds long term relationships; more successful strategy.

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Exhibit 13.9:
Cultural Differences in Preference for a Problem-Solving Negotiation Strategy

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Step 7:
Postagreement
A commonly ignored step by U.S. negotiators is the postagreement phase, which consists of an evaluation of the success of a completed negotiation.
Postagreement analysis can be beneficial because it allows the garnering of insights into the strengths and weaknesses of the approach used during negotiation.
Postagreement analysis can also enable members of the negotiating team to develop a closer relationship with their counterparts.

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The Successful International Negotiator: Personal Characteristics (1 of 2)
Personal success characteristics enhance negotiators’ abilities to adjust to cross-cultural negotiations:
Tolerance of ambiguity
Flexibility and creativity
Humor
Stamina
Empathy
Curiosity
Bilingualism

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The Successful International Negotiator: Personal Characteristics
(2 of 2)
A final key personal skill that international negotiators need to succeed is cultural intelligence, which is the ability to successfully deal with uncertainties and adapt to the challenges in a new cross-cultural setting.
A person with high cultural intelligence has the skills to learn aspects of a new culture and willing to challenge their own assumptions about the new cultures and ultimately behave differently based on new mental frameworks appropriate for the new culture.

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Summary and Conclusions
Chapter 13 examined the negotiating process and other elements of cross-cultural communication.
International negotiation involves several steps, including preparation, building the relationship, persuasion, making concessions and reaching agreement.
Successful negotiators prepare and understand these steps and adapt them to local host countries.

Chapter
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14
Motivation in Multinational Companies

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Learning Objectives (1 of 2)

Recognize how people from different nations perceive the basic functions of working.
Explain how people from different nations view the importance of working.
Understand how the national context affects the basic processes of work motivation.

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Learning Objectives (2 of 2)

Apply common theories of work motivation in different national contexts.
Design jobs for high motivational potential in different national cultures.

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Work Values and
the Meaning of Work
Before we can understand how to motivate or lead people from different national cultures, we must have some knowledge about what work means to people from different societies.
Two basic questions must be answered:
How important is work in people’s lives?
What do people value in work?

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How Important is Work
in People’s Lives? (1 of 2)
Work Centrality is the degree of importance that work has in the life of an individual at a given time, as compared to other activities such as leisure and family.
Higher levels of work centrality are closely correlated with the average number of hours worked per week.
High levels of work centrality may lead to dedicated workers and effective organizations.

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How Important is Work
in People’s Lives? (2 of 2)
Work Obligation Norms are the degree to which work is seen as an obligation or duty in a society.
These societies are more likely to have individuals adhering to this norm by working longer.
Many of the emerging economies show very high levels of work obligation norms.

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Exhibit 14.1:
Work Obligation Norms for Selected Countries

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What Do People Value
in Work? (1 of 3)
Two important work values are:
People with Extrinsic Work Values express a preference for the security aspect of jobs such as income, job security, and less demanding work.
Those with Intrinsic Work Values express preferences for openness to change, the pursuit of autonomy, growth, creativity, and the use of initiative at work.

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Exhibit 14.4:
Importance Rankings of Work Characteristics in Nine Countries

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What Do People Value
in Work? (2 of 3)
In some societies, work is very central and absorbs much of a person’s life.
All people hope to receive certain benefits from work.
Societies differ in the degree to which they regard work as an obligation to society.
Many of the emerging economies that value extrinsic work values such as income and job security also place high value on intrinsic work values.

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What Do People Value
in Work? (3 of 3)
The first key to successful motivational strategies in multinational companies is understanding the differences regarding how people view the functions of work, work centrality, and the priorities given to different job characteristics.

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The Basic
Work Motivation Process (1 of 2)
Motivation is a psychological process resulting in goal-directed behavior that satisfies human needs
A Need is a feeling of deficit or lacking that all people experience at some time.
A Goal-directed Behavior is one that people use with the intention of satisfying a need.

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The Basic
Work Motivation Process (2 of 2)
Reinforcement means that the consequences that follow a person’s behavior encourage the person to continue the behavior.
Example: bonus pay to encourage behavior
Punishment means that the consequences that follow a person’s behavior discourage the behavior.
Example: docking pay to discourage behavior

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Exhibit 14.5:
The Basic Work Motivation Process and the National Context

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

National Context and Work Motivation: A Brief Introduction
Cultural values, norms & supporting social institutions influence the priority that people attach to work.
Example: Early education in collectivist societies encourage people to develop a need to belong to groups.
The national context influences reactions to goal-directed behaviors at work.
Example: A Japanese worker who brags about his performance will be sanctioned by his work group.

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Theories of Work Motivation
in the Multinational Context
(1 of 2)
Managers can use work-motivation theories to develop systematic approaches to motivating employees.
There are two basic types of motivational theories:
The Need Theory assumes that people are motivated to work because their jobs satisfy basic needs and higher-level needs.
The Process Theory assumes that motivation arises from needs and values combined with an individual’s beliefs regarding the work environment.

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Theories of Work Motivation
in the Multinational Context
(2 of 2)
The Need Theories of motivation have the most international application.
There are four need theories of motivation:
Maslow’s Hierarchy of Needs
ERG theory
Motivator-hygiene theory
Achievement motivation theory

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Maslow’s Hierarchy of Needs (1 of 2)
Maslow offered the most famous need theory, ranking five basic types of needs (lowest to highest):
Physiological (food, water, basic survival)
Security (safety, avoidance of threats)
Affiliation (being loved, having friends, groups)
Esteem (respect, recognition by others, self-worth)
Self-actualization (maximize personal achievement)

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Maslow’s Hierarchy of Needs (2 of 2)
People first seek to satisfy lower needs, then higher ones.
Once a lower need is satisfied, it no longer motivates.
Example: If your base pay is adequate for survival, it no longer has motivational value.
Then other characteristics of the work situation become motivational, such as working in teams to meet affiliation needs.

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Exhibit 14.7: Maslow’s Hierarchy of Needs and Country Level Measures

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Alderfer’s ERG Theory
Alderfer’s simplified hierarchy of three needs includes existence needs, relatedness needs, & growth needs.
In ERG theory, frustration of a need motivates behavior to satisfy the need.
A person who cannot satisfy a higher need will seek to satisfy lower-level needs.
Example: If the satisfaction of growth needs is impossible on the job, relational needs become the prime motivator.

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Motivator-Hygiene Theory
The Motivator-Hygiene Theory assumes that a job has two characteristics: motivators and hygiene factors.
Motivating Factors are the characteristics of jobs that allow people to fulfill higher-level needs.
Example: a challenging job for achievement
Hygiene Factors are characteristics of jobs that allow people to fulfill lower-level needs.
Example: good benefits and working conditions that satisfy security needs.

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Achievement-Motivation Theory
Achievement-Motivation Theory suggests that only some people (10% in U.S.) have the need to win in competitive situations or to exceed a standard of excellence.
High achievement-motivated people set their own goals and seek challenging situations, but avoid those that are too difficult.
High achievers desire immediate feedback so that they know how they are performing at each step.

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Needs and National Context
Work related needs may be “grouped” in ways that match broad groups proposed by Need theories.
People from different nations do not give the same priorities to the needs that might be satisfied at work.
Even with similar needs, they may not give the same level of importance of satisfying these needs.
Multinational managers can use need satisfaction as a motivational tool if they take into account the particular needs that people in that nation seek.

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Exhibit 14.9:
Hofstede’s Dimensions of National Culture and Motivators at Work

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Applying Need Theories in Multinational Settings
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.
Note that sources of need fulfillment may differ for the same needs.
Understand the limitations of available jobs to satisfy needs.

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Process and Reinforcement Theories of Motivation: Expectancy Theory (1 of 3)
Expectancy Theory is a view of motivation that is more complex than simple need satisfaction:
Work motivation is a function not only of a person’s needs or values, but also of the person’s beliefs regarding what happens if you work hard.
Motivation includes a person’s desire to satisfy needs, but the level of motivation also depends on the person’s belief regarding how much – or if – his efforts will eventually satisfy his needs.

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Process and Reinforcement Theories of Motivation: Expectancy Theory (2 of 3)
Three factors make up Expectancy Theory:
Expectancy: an individual’s belief that his or her effort will lead to some result
Valence: the value attached to the outcome of efforts
Instrumentality: the links between early and later results of the work effort
Motivation = Expectancy x Valence x Instrumentality

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Process and Reinforcement Theories of Motivation: Expectancy Theory (3 of 3)
Employers assume that employees can use such feedback to improve in the future.
A key aspect of this assumption is related to the application of expectancy theory.
If employees feel that they have achieved the desired effort (they have high expectancy), they will be more motivated in the future to continue engaging in such productive behavior.
Alternatively, performance appraisal can be accompanied by other remedial measures for those employees with low expectancy.

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Applying Expectancy Theory in Multinational Settings
There are two key issues:
Identify which outcomes people value in a particular national or cultural setting; the multinational manager must find and use rewards with positive valance for employees.
Find culturally appropriate ways to convince employees that their efforts will lead to desirable ends.

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Equity Theory (1 of 2)
Equity Theory focuses on the fairness that people perceive in the rewards that they receive for their efforts at work.
People have no absolute standards for fairness regarding their efforts, but also compare themselves to others.
Example: If two people have the same job and experience, but not the same pay, one is in overpayment equity, and the other in underpayment.

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Equity Theory (1 of 2)
Research suggests that culture has an impact on how people from different societies view the various elements of equity theory.
It is likely that people from more individualistic societies such as the U.S. will emphasize achievement-oriented input (performance) while those from more collectivistic societies will emphasize ascription-oriented inputs such as seniority.

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Applying Equity Theory in Multinational Settings
Three principles of allocating rewards, depending on cultural settings:
Equity norms prevail in individualistic cultures
Equality norms prevail over equity norms in collectivist cultures.
The principle of need may prevail over equity in certain conditions.

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Exhibit 14.10:
Rewards from Peers for Contributions to a Student Group Project

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Goal Setting Theory
Goal-Setting Theory assumes that people want to achieve goals; the existence of a goal is motivating.
To motivate, follow the principles of goal setting:
Set clear and specific goals.
Assign difficult but achievable goals.
Increase employee acceptance of goals.
Provide incentives to achieve goals.
Give feedback on goal attainment.

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Applying Goal-Setting Theory in Multinational Settings
Goal-setting works to some degree, anywhere.
Cultural expectations vary re who sets goals, and it is better to set goals for groups or individuals.
In individualistic cultures, setting individual goals may be more effective than group goals.
In collectivist cultures, workers will want to participate in goal-setting; participation may have a greater chance of enhancing workers’ commitment to the goal.

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Exhibit 14.11:
Cultural Effects on Performance by the Degree of Participation in Goal Setting

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Reinforcement Theory
Reinforcement Theory focuses on operant conditioning, a model which proposes that behavior is a function of its consequences.
If a pleasurable consequence follows certain behavior, the behavior continues. (positive reinforcement)
If a negative consequence follows certain behavior, the behavior stops. (negative reinforcement)
Example: Japanese salaryman

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Exhibit 14.12: Management Example of Operant-Conditioning Process and Types of Consequences

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Applying Reinforcement Theory
in Multinational Settings
For observable behaviors, most U.S. studies suggest that positive reinforcement works.
The difficulty is in identifying appropriate rewards as reinforcers to a diverse group.
The national context defines acceptable and legitimate rewards.
Germany: pay and benefits not available as rewards
Japan: Public praise may be embarrassing.

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Key Points
in Multinational Applications of Process/Reinforcement Theories
Expectancy Theory: The key is to identify nationally appropriate rewards that have positive valence.
Equity Theory: Assess the meaning and principle of equity in the national context.
Goal-setting Theory: Should goals be group/individual? Should workers/leaders participate in goal setting?
Reinforcement Theory: The institutional environment and what people value will affect the types of available rewards in a society.

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Motivation and Job Design:
U.S. and European Perspectives (1 of 4)
A U.S. approach: The Job-Characteristics Model
The most popular U.S. approach is the Job Characteristics Model: Work is more motivating when managers enrich core job characteristics, as by increasing number of skills a job requires.

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Motivation and Job Design:
U.S. and European Perspectives (2 of 4)
Three critical psychological states are 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.

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Motivation and Job Design:
U.S. and European Perspectives (3 of 4)
The core job characteristics that lead to motivating psychological states are:
Skill variety
Task identity
Task significance
Autonomy
Feedback

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Exhibit 14.13:
A Motivating Job in
the Job-Characteristics Model

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Motivation and Job Design:
U.S. and European Perspectives (4 of 4)
A European approach:
The Sociotechnical Systems (STS) approach attempts to mesh both modern technology and the social needs of workers, but does not consider them as individuals.
Uses an Autonomous Work Group: A team or unit that has nearly complete responsibility for a particular task.
The STS approach builds into a job many of the same motivational job characteristics, but the team’s task, not individual tasks, become the focus of enrichment.

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Choosing Job-Enrichment Techniques in Multinational Settings (1 of 4)
Experts recommend:
a team focus on job enrichment in collectivist cultures (Japan)
an individual focus in individualistic cultures (US)
In individualistic cultures, performance drops with the use of teams.
Social Loafing: People expend less effort when they work in groups.

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Choosing Job-Enrichment Techniques in Multinational Settings (2 of 4)
Why do people engage in Social Loafing in individualistic cultures?
People do not feel responsible for group outcomes.
They believe the group will take up the slack.
They give their own work and interests priority over those of the group.

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Exhibit 14.14:
Comparing the Performance of Chinese, U.S., and Israeli Managers Working Alone and in Groups

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Choosing Job-Enrichment Techniques in Multinational Settings (3 of 4)
Telecommuting more of a reality in multinationals today.
Telecommuting: employees working from a remote location that is equipped with telecommunications technology to allow employees to transfer their work to the employing firm.
Many multinationals have embraced telecommuting as a means to reduce costs while also giving employees better flexibility.

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Choosing Job-Enrichment Techniques in Multinational Settings (4 of 4)
Telecommuting advantages:
Cost reduction for MNCs
Flexibility and work-family balance
Increased employee morale
Telecommuting disadvantages:
Employees may not be as attuned to company culture
Assessing productivity is difficult
Motivating telecommuters can be difficult
Telecommuters lack access to all organizational resources

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Summary and Conclusions
Motivating workers in diverse cultural settings is a constant challenge for multinational managers.
Chapter 14 addresses several motivational issues and examines the differences in how people view work aspects.
Chapter 14 reviews basic processes and classic theories of motivation.
Each multinational must find ways to motivate their workers, appreciating subtleties in applying theories to different nations.