global insights quiz ch. 10 & 12

Hierarchy of Needs (Maslow)

-Is the idea that needs are organized into a hierarchy, with higher-order needs being met only after lower-order ones are satisfied first.

-Is popular in U.S. because American culture values individualism, personal achievement, and risk-taking.

two-factor theory (herzberg)

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

Job Enrichment

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

4 concepts of "Do Western Motivation Concepts Apply?"

1. Hierarchy of needs (Maslow)

2. Self-actualization

3. Two-factor theory (herzberg)

4. Job enrichment

read slide 5 ch. 10

Equity Theory

-Posits that, when employees feel they've been unfairly treated, they are motivated to restore fairness.

-Is 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).

-Can 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.

equity theory

you should get what you deserve

reinforcement theory

Connecting Behavior and Consequences

Reinforcement Theory

-States that the best way to motivate is to clearly link valued consequences to desired employee behaviors.

-Relies on interpretation of performance-related feedback that is affected by the culture and societal context of an employee.

expectancy theory

setting goals and tying in rewards

expectancy theory

-Argues that motivation is a function of employees' beliefs that effort will lead to good performance and that good performance is tied to valued rewards.

-Assumes 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.

read slide 9 ch. 10 & 13

Top Attraction Drivers

•Competitive Base Pay

•Career Advancement Opportunity

•Challenging Work

•Learning/Development Opportunity

•Competitive Benefits

•Reputation of the Company

Vacation/Paid Days Off

cultural synergy

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

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.

effective leadership in an international context

-openness to other cultures

-appreciation of cultural differences

-ability to bridge differences quickly

when in romania: 2 leader behavior across cultures

1. task oriented behavior

2. relationship oriented behavior

task oriented behavior

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

relationship oriented behavior

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

2 leadership styles in non-western cultures

1. nurturant leadership style

2. PM leadership style

nurturant leadership style

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

PM leadership style

Combines 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).

read slide 16 ch. 10 & 18

transformational leadership

-Occurs when a leader is able to galvanize employees and turn poorly performing firms into winners by inspiring intense loyalty and outstanding performance.

-Relies on the bond created with employees by the leader's personal characteristics and behaviors:

*Charisma

*Use of inspirational appeals

*Intellectual stimulation

*Individualized consideration.

path-goal leadership

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

basic PG leadership styles

-Directive

-Supportive

-Participative

-Achievement oriented.

read slides 20-23 Ch. 10

Core questions: Should multinational firms...

-Rely on a standardized set of policies, procedures, and practices when managing and appraising employee feedback worldwide?

-Rely on a dispersed set of systems aligned with local business and management practices in the places where it does business?

-Take a blended performance appraisal and management approach to keep local practices intact?

performance evaluation issues

-Variation among firms in their approach to evaluation.

-Cultural values (frames of reference) affecting the focus of individual expatriate performance evaluation.

-Tailoring performance appraisal practices to the local context.

-Preserving corporate values deemed important for all employees.

Observing expatriates over a long period of time.

benefits of overseas assignments: Expatriate Managers

-Gained additional operational business skills and a global perspective their industry and markets.

-Increased their ability to manage cultural differences.

-Improved their understanding of international operations.

-Became more open minded about different problem-solving methods.

-Improved their ability to more flexibly approach human resource issues.

performance appraisal for expatriates

evaluation of expatriates

1. Who should evaluate their performance?

2. What aspects of their performance should be evaluated?

3. When and how often should they be evaluated?

read slides 7&8 ch. 12

context variables that impact evaluations of expatriates

1. task variables

2. environmental variables

3. personal characteristics

general guidelines for expatriate evaluation

•Rate the assignment's difficulty

-Language adjustment difficulty.

-Local economic and political stability.

•Evaluation by host-country managers

•Evaluation by expatriates with similar experience

•Other considerations:

-Communicate performance criteria

-Explain the performance appraisal process

-Train evaluators and expatriates about frames of reference and cultural differences

-Emphasize reasons for more frequent evaluations

evaluating first born employees

evaluation issues:

-The impact and influence of local cultural values and context on effective delivery of feedback.

-Conflicts that occur when an implicit and informal culture meets an explicit and formal performance evaluation system.

-Culture can shape how foreign employees react to performance feedback and the various types of evaluation review delivery mechanisms.

crafting performance feedback

•Give feedback through a third party.

•Communicate to the whole group.

•Change the form of feedback.

•Simplify the feedback.

•Avoid slang.

read slide 13 ch. 12

goals of multinational compensation systems

-To attract and retain the best people to staff positions worldwide.

-To make it as easy as possible to transfer people to the various locations.

-To be consistent and fair toward all employees wherever they are.

-To maintain compensation levels that match well with competitors while also holding down costs

Exchange Model of Compensation

Employees provide effort and output while receiving wages and benefits in return

equity norm

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

alternative compensation views

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

read slides 16,17, 18,20 ch. 12

issues in expatriate compensation

-Cross-national legal/regulatory differences in compensation.

-Costs for maintaining expatriates on location.

-Expatriate employee comparisons with other similarly situated expatriates of other firms.

effective compensation plans

•Some form of incentive for an employee to accept an expatriate assignment.

•Maintenance of a reasonable standard of living.

•Provisions to support the needs of any trailing family members.

•Provisions to successfully repatriate the employee back into the home country after the foreign assignment concludes.

questions affecting expatriate compensation

-How long will the assignment last?

-Who is the expatriate?

-Why is the expatriate being sent?

-What country is the expatriate departing from and going to?

-Who will the expatriate be comparing himself or herself against?

-Will the benefits of this assignment justify the cost?

methods for compensating expatriates

1. ad hoc method

2. ad hoc method drawbacks

3. localization method

4. balance sheet (build up) method

The Ad Hoc Method

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

Ad Hoc Method Drawbacks

-The potential for unequal treatment of expatriates if some expats negotiate better deals than others.

-An inability to systematically track expatriate compensation packages.

-Inadequate development of country-specific knowledge on the part of both the firm and the employee.

Localization method

-Involves paying the expatriate essentially the same as local nationals in similar positions.

-Is useful when expatriates want to extend their stay in particular locations or are interested in being permanent expatriates.

-Is rarely used in its entirety—adjustments are often made to base pay, allowances, and retirement packages.

Balance Sheet (Build-Up) Method

-Is based on the belief that expatriates should not suffer a financial loss in an international assignment.

-Attempts to provide expatriates with purchasing-power parity in the foreign location as they would in their home country.

-Maintains base and merit pays, and considers foreign-service premiums, hardship differentials, housing costs, and danger pay.

Read slides 26, 27, 29, 30 Ch. 12

two elements to the Balance Sheet Approach

1. Tax Equalization

2. Cost of Living Allowance (goods and services differential)

Tax Equalization

-Attempts to tie expatriates' tax burdens to their home countries regardless of where they are posted and simplify their reporting requirements.

-Entails the firm paying the difference (if any) between their expatriates' host-country tax obligation and their home-country tax obligation.

Cost of Living Allowance (Goods and Services Differential)

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