Chapter 11 Motivating and Leading Across Cultures.

Chapter 11

Motivating and Leading Across Cultures

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Overview

• Motivating and leading abroad

• Motivation theories and cultural implications

• Effective Leadership in an international context


Motivating Across Cultures

• Cultural differences add complexity

• Applicability of American approaches?

• Culture-specific approaches

• Differences within a country

• Few universal principles


Motivation Theories

• Context theories– Maslow’s hierarchy of needs– Herzberg’s two-factor theory

• Process theories– Equity theory– Reinforcement theory– Goal theory– Expectancy theory


Maslow’s Hierarchy of Needs

►Self-actualization—maximum potential►Esteem needs—self respect & confidence

►Social needs—feeling of belonging►Safety needs—satisfy security concerns

►Physiological—food and shelter

• Hierarchical needs

• Lower order needs dominate behavior until met


Cross-Cultural Applicability of Maslow’s Hierarchy of Needs

• Some applicability across cultures

• Hierarchy scheme doesn’t fit every culture

• Cooperative/social needs may be most important in collectivist cultures

• Some argue that hierarchy reflects American values


Herzberg’s Two-Factor Theory

• Hygiene factors—needs to be satisfied– i.e., good working conditions– If satisfied, does not guarantee motivation

• Motivators—needs to be motivated– i.e., job enrichment– Must have both hygiene factors and

motivators to be motivated


Cross-Cultural Applicability of Herzberg’s Two-Factor Theory

• Some applicability

• Doesn’t fit every culture

• Motivators vary across cultures– Collectivist / individualist – Power distance– Uncertainty avoidance– Masculine / feminist


Where Are the (un)Happiest Employees?


Equity Theory

• Motivation linked to perceptions of being treated fairly in terms of– Job outcomes—pay, benefits– Job inputs—effort, skills

• Employees compare outcome/input ratio against others

• Balanced ratio = satisfied employee


Cross-Cultural Applicability of Equity Theory

• Individualistic cultures embrace equity theory

• Collectivist cultures more likely to prefer equal distribution of outcomes

• Differences in equity standards

• Social changes impact view of equity

• Managers must consider reactions to reward allocation system


Reinforcement Theory

• Consequences associated with behavior

• Positive reinforcers—improve performance– i.e., Bonuses

• Punishment—eliminate poor performance– i.e., Pay cut


Cross-Cultural Applicability of Reinforcement Theory

• Need to determine what employees value to use positive reinforcers

• Cultural differences of meaning of rewards– Positive vs. critical feedback– Praise– Performance-based, merit pay vs.

seniority


Goal Theory

• Establishing performance targets

• Specific and challenging goals as motivators

• Employee involvement in goal-setting


Cross-Cultural Applicability of Goal Theory

• Assumes: – Low power distance– Low uncertainty avoidance– High performance is valued

• Variations in approaches to goal setting


Expectancy Theory

• Assumes three employees believe:1. Hard work will result in good

performance

2. Rewards associated with good performance

3. Rewards are important to them

• If not, motivation suffers


Cross-Cultural Applicability of Expectancy Theory

• Emphasizes individualism

• Masculine orientation– Task versus relationship focus

• Locust of control– Internal versus external

• Reward system must be designed with cultural considerations


Developing a Motivation Strategy

• Take cultural variables into account

• Cultural values change and evolve

• Managers should be aware of own biases

• Any strategy should be…– Culturally synergistic—complement

various cultures involved


Steps to Developing a Motivation Strategy

1.Describe motivation situation

2.Identify cultural assumptions about motivation

3.Generate culturally synergistic alternatives

4.Select and implement a synergistic strategy


Leader Behavior Across Cultures

• Constantly changing and evolving

• U.S. research reveals two basic types:– Task-oriented behavior

• Providing clear expectations

– Relationship-oriented behavior• Showing personal concern

– This simple dichotomy not appropriate in all cultures


Likert’s System 4 Theory

• Argues all companies should move toward systems 3 and 4 for higher performance and moral

• May work best in low power distance cultures

• Managers should adjust leadership style to the cultural environment


Likert’s System 4 Theory (cont’d)

System 1 - Exploitive authoritativeTop downPunishment used to motivate

System 2 - Benevolent authoritativeAutocraticPaternalistic

System 3 - ConsultativeEmployees involvedManagement final say

System 4 - DemocrativeEmployee part of decision makingLateral and verticalTeam approach


Leadership and Power

• Perspectives on power differ between cultures

• Position power

• Personal power

• Social influence tactics

Ranking the Importance of Leader Influence Tactics Across Countries


Transformational Leadership

• Ability to influence – Poor to exceptional performance

• Creates emotional bond that results in loyalty and performance– Charisma– Use of inspirational appeals– Intellectual stimulation– Individualized consideration

• Less effective in collectivist cultures


Path-Goal Theory

• Model that includes cultural variables

• Four basic styles– Directive– Supportive– Participative– Achievement-oriented

• Contingency factors shape style

Introducing Cultural Contingencies Into Path-goal Theory: Identifying Compatible Leadership Styles


Leadership Challenges for MNCs

• Diversity of contexts

• Macro-level and micro-level factors

• National and corporate values

Comparing Transnational and Traditional Skills for International Managers


Suggestions for Developing Leaders With Transnational Skills

Chapter 11 Motivating and Leading Across Cultures.

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Transcript of Chapter 11 Motivating and Leading Across Cultures.