Global Insights Chapter 10 & 12

Achieving Cultural Synergy

1.Describe the motivation situation. 2.Identify cultural assumptions about motivation. 3.Determine where cultural overlaps exist. 4.Generate culturally synergistic alternates. 5.Select, implement, and then refine a synergistic strategy.

Expectancy Theory

ØArgues that motivation is a function of employees' beliefs that effort will lead to good performance and that good performance is tied to valued rewards. ØAssumes that individual workers are rational and control their lives by manipulating their efforts. Cultural values and beliefs that external forces (e.g., fate) are important can be at odds with Western emphasis on linking individual performance achievements to variable rewards.

Tax Equalization

ØAttempts to tie expatriates' tax burdens to their home countries regardless of where they are posted and simplify their reporting requirements. ØEntails the firm paying the difference (if any) between their expatriates' host-country tax obligation and their home-country tax obligation.

PM Leadership Style

ØCombines complementary concern about problem-solving and motivation of group performance (performance leadership) with behavior designed to promote interdependence, avoid conflict, and maintain harmony within the group (maintenance leadership).

Issues in Expatriate Compensation

ØCross-national legal/regulatory differences in compensation. ØCosts for maintaining expatriates on location. ØExpatriate employee comparisons with other similarly situated expatriates of other firms.

Basic PG Leadership Styles

ØDirective ØSupportive ØParticipative ØAchievement oriented.

Exchange Model of Compensation

ØEmployees provide effort and output while receiving wages and benefits in return.

Alternative Compensation Views

ØEntitlement and obligation are important factors affecting how employees view the compensation they receive from employers.

Cost-of-Living Allowance (Goods and Services Differential)

ØHelps offset higher living costs abroad by giving expatriates the same purchasing power enjoyed at home.

Task-Oriented Behavior

ØIncludes clarifying performance expectations and specific procedures to be followed, as well as planning, scheduling, providing technical help, and goal-setting.

Relationship-Oriented Behavior

ØIncludes showing concern for subordinates' feelings, needs, and well-being.

Job Enrichment

ØInvolves adding motivating factors (e.g., challenge, responsibility) to a job while avoiding demotivating factors (e.g., poor pay or working conditions).

The Localization Method

ØInvolves paying the expatriate essentially the same as local nationals in similar positions. ØIs useful when expatriates want to extend their stay in particular locations or are interested in being permanent expatriates. ØIs rarely used in its entirety—adjustments are often made to base pay, allowances, and retirement packages.

Cultural Synergy

ØIs achieved when managers rely on motivation approaches and tactics that complement rather than conflict with the specific cultures involved.

The Balance Sheet (Build-Up) Method

ØIs based on the belief that expatriates should not suffer a financial loss in an international assignment. ØAttempts to provide expatriates with purchasing-power parity in the foreign location as they would in their home country. ØMaintains base and merit pays, and considers foreign-service premiums, hardship differentials, housing costs, and danger pay.

Self-Actualization

ØIs the highest-order need that reflects employees' desire to reach their maximum potential. ØLike "achievement," it is extremely difficult to translate into other languages.

Hierarchy of Needs (Maslow)

ØIs the idea that needs are organized into a hierarchy, with higher-order needs being met only after lower-order ones are satisfied first. ØIs popular in U.S. because American culture values individualism, personal achievement, and risk-taking.

Nurturant Leadership Style

ØMixes empathy and concern for subordinates with an emphasis on getting the job done—often works best in Indian work contexts.

Transformational Leadership

ØOccurs when a leader is able to galvanize employees and turn poorly performing firms into winners by inspiring intense loyalty and outstanding performance. ØRelies on the bond created with employees by the leader's personal characteristics and behaviors: - Charisma - Use of inspirational appeals - Intellectual stimulation - Individualized consideration.

Equity Theory

ØPosits that, when employees feel they've been unfairly treated, they are motivated to restore fairness. ØIs concerned with what happens when employees compare themselves against other people in terms of job outcomes (e.g., pay) and job inputs (e.g., effort). ØCan be approached from an international context: Less focus on broad fairness rules and more understanding of the mental equations that employees in different cultures use when judging fairness.

Path-Goal Leadership

ØPredicts that leadership effectiveness is contingent on matching the leadership style used to the situation.

Core Questions: Should multinational firms

ØRely on a standardized set of policies, procedures, and practices when managing and appraising employee feedback worldwide? ØRely on a dispersed set of systems aligned with local business and management practices in the places where it does business? ØTake a blended performance appraisal and management approach to keep local practices intact?

Reinforcement Theory

ØStates that the best way to motivate is to clearly link valued consequences to desired employee behaviors. ØRelies on interpretation of performance-related feedback that is affected by the culture and societal context of an employee.

Two-Factor Theory (Herzberg)

ØSuggests there are two separate sets of needs—intrinsic motivators and extrinsic hygiene factors (or demotivators).

The Ad Hoc Method

ØThe expatriate negotiates with his or her firm for covering the costs inherent in a foreign assignment.

Evaluation Issues

ØThe impact and influence of local cultural values and context on effective delivery of feedback. ØConflicts that occur when an implicit and informal culture meets an explicit and formal performance evaluation system. ØCulture can shape how foreign employees react to performance feedback and the various types of evaluation review delivery mechanisms.

Equity Norm

ØThe notion that those who contribute more on the job are deserving of greater compensation.

Ad Hoc Method Drawbacks

ØThe potential for unequal treatment of expatriates if some expats negotiate better deals than others. ØAn inability to systematically track expatriate compensation packages. ØInadequate development of country-specific knowledge on the part of both the firm and the employee.

Goals of Multinational Compensation Systems

ØTo attract and retain the best people to staff positions worldwide. ØTo make it as easy as possible to transfer people to the various locations. ØTo be consistent and fair toward all employees wherever they are. ØTo maintain compensation levels that match well with competitors while also holding down costs.

Top Attraction Drivers

•Competitive Base Pay •Career Advancement Opportunity •Challenging Work •Learning/Development Opportunity •Competitive Benefits •Reputation of the Company •Vacation/Paid Days Off

Crafting Performance Feedback

•Give feedback through a third party. •Communicate to the whole group. •Change the form of feedback. •Simplify the feedback. •Avoid slang.