MGT_4302_VIII

MGT 4302, International Management 1

Course Learning Outcomes for Unit VIII Upon completion of this unit, students should be able to:

3. Evaluate the cultural challenges of managing an international business. 3.2 Reflect on the concepts of formalization, specialization, and the impact of multi-national

corporations. Required Unit Resources Chapter 12: Motivation Across Cultures Chapter 14: Human Resource Selection and Development Across Cultures Unit Lesson

Motivation Motivation varies from person to person, and motivation varies by region. Motivation is considered often as the pursuit or drive to satisfy a need. Certainly, we all have the same needs such as food, shelter, and clothing, but most of us have different interests in how those needs are met. That means that some people have different likes and different ways we want our needs met, or we fulfill our needs intrinsically or extrinsically. Intrinsic does not necessarily mean the person is an introvert though. Someone who wants to fulfill their needs extrinsically is not necessarily an extrovert. Ambivert’s have a combination of traits. While there is a universalist approach, meaning that everyone has the same motivators, looking at different geographic regions, even within the United States, demonstrates that individuals have different issues and motivations. Legendary investor, Warren Buffet, reframed a statement made by British leadership guru John Adair, when he stated, “a leader as someone who can get the job done through other people” (Witzel, 2014, p. 79). Regardless of the culture in which the business is situated, there are some key basic motivational needs of those within the organization. Understanding those needs and cultural demands can have a huge impact on the success of an international business venture. Another characterization is that, “The most effective leaders rally a broader group of people toward an organization’s goals, mission, and objectives. They lead. People follow” (Rath & Conchie, 2008, p. 79).

Motivational Theories Maslow’s need hierarchy denotes that a level of needs must be met before a person can move up. In fact, physiological needs must be met before safety needs. Safety needs must be met before social needs, and social needs must be met before esteem needs and self-actualization needs. Collectivists rearrange this and use only the needs of belonging first, then physiological, with safety next, and self-actualization last. Collectivists’ view self-actualization as service in society or to society. Thus, servant leadership can become more important to collectivists than other forms of management. Collectivists are often a group-based society that is more homogenous, at least on the surface. Thus, knowing how needs are met in your community in general, as well as in the organization you work with and the country you live in is imperative. For example, the Amish do not use modern electricity, except at their milk stations. With four main sects, the old order being the most conservative, will have different motivations than those who are used to electricity. For example, most teenagers in all countries want an electronic device that allows them to communicate and play games on as well as read on. Typically, Amish teens are not interested in

UNIT VIII STUDY GUIDE Motivation and Human Resource Management Across Cultures

MGT 4302, International Management 2

UNIT x STUDY GUIDE Title

these devices. They also are generally not interested in radio, television, or computers and are not motivated by new songs, new movies, or new games. The two-factor theory of motivation proposed by Herzberg indicates that there are two factors in motivation: one being hygiene factors and the other being motivators (Doh et al., 2024). For example, salary would be a hygiene factor, and the motivator would be achievement. Hygiene factors include job context variables while motivators are job content variables. Hygiene factors are either absent or present, and motivators are absent or present. Comparing Maslow’s hierarchy to Herzberg’s theory, Herzberg’s hygiene factors compare to Maslow’s hierarchy of needs, which are divided into physiological, safety, and social needs. Maslow organized these needs in a pyramid structure. Those at the bottom must be achieved before the next level up. You cannot reach the top of the pyramid without achieving all the other levels first. In other words:

• you must achieve the physiological needs (food, water, and basic body functions such as breathing) before you can deal with safety.

• Safety includes the security of your body, family, health, property, and resources before you can achieve the next level of belonging.

• Belonging means that you have friends, family, and folks with whom you can feel close to and/or intimate with. You need to achieve belonging before you can feel esteem.

• Esteem means that you have confidence to achieve physical and mental items. It also means you have respect for other people and other people respect you on some level. You must have esteem before you can become self-actualized.

• Self-actualization is the top or pinnacle of the pyramid. Self-actualization means you demonstrate moral standards for the groups you interact with, you are creative, you accept certain pieces of information as facts, you are able to problem solve and you can problem solve without prejudice toward other people.

In the traditional view, one is either satisfied or dissatisfied. As satisfaction varies from person to person, Maslow’s hierarchy assumes all items are easily available, and there is no competition or concern to obtain the items that meet our needs. Herzberg’s theory identifies items as absent or present. Thus, items that are absent can become present and then become absent based on an event. In fact, a country’s factors are taken into consideration in Herzberg’s theory, while they are not in Maslow’s theory. Achievement theory proposes that people have a need to get ahead. That motivation to get ahead and reach objectives will come before other things. Different countries will have different views of achievement, and this could be related to different cultural dimensions, which are categorized as power distance, individualism, uncertainty avoidance, and masculinity. In comparing one country to another, some rank higher in cultural dimensions that are considered masculine versus dimensions that are considered feminine or neutral. For example, when people are unclear or uncertain about a situation, they will avoid the situation in hopes to avoid consequences in which they do not understand, whether the consequences could be positive or negative. In this regard, the Japanese culture scores high on the masculine scale, reflecting strong uncertainty avoidance (Doh et al., 2024). Reviewing where you grew up, where co-workers grew up based on country, and the country you work in can help you understand more about why co-workers have different thoughts, achieve items in different sequences, and feel differently about certain items. Other theories include the equity theory, which focuses on how motivation is affected by people’s perception. The goal setting theory focuses on how people set goals and respond to them. The expectancy theory focuses on how much effort you expel will determine your performance and specific outcomes (Doh et al., 2024). These three theories will influence how jobs are designed, how rewards are structured, how satisfied employees are within a company, and how one values the work. The value of the work will determine the priorities of what gets done first and what gets done last. People who work overseas can be called expatriates, host-country nationals, or third-country nationals (TCNs). In some countries, there are informal group get-togethers so expatriates can socialize. All will have similar issues as they are working in another country and will have challenges with being in a host country for a long time. Sometimes, expats experience a great deal of stress, and being able to discuss it with others who have the same or similar issues is helpful. For example, in Xian, China, there is an expat group that gets together once a month. They do not meet to complain or commiserate but to discuss the various issues and

MGT 4302, International Management 3

UNIT x STUDY GUIDE Title

celebrate holidays. Returning to a home country for an expat may also not be easy. Thus, repatriation can be as difficult or more difficult for people when the overseas assignment is complete. Training will help and a debriefing program coming back will help as well. When determining whether an overseas assignment is right, individuals must consider their ability to adapt to another culture. Certainly, those individuals who have many and varied experiences are more likely to want and like overseas jobs. Yet, this does not mean that an individual will not experience some sadness or difficulties when living overseas. Language skills do help, most businesses use English around the world as the universal language of business. That said, it does help to know the local language so that terms and phrases can be understood. Compensation for overseas assignments will be different than for those who work in the United States. Base salary is a part, but there are many benefits. Often expats are allowed more vacation due to the stress of living away from home. Additionally, they have certain living costs paid for as well as all travel. Taxes are a big part of the compensation. Often taxes in another country are paid over the base salary so that the individual is not responsible for taxes in two countries. When companies have overseas businesses and overseas nationals, skills, access to training, and knowledge are important. The closer those skills are to the raw materials is important. The less you have to move certain materials the better off a company is. They save money as well as time from shaping a raw product into a finished product. This also means that certain items, such as coffee beans, may be better off dried in the country where they are grown rather than shipped raw. Dried does not mean roasted though. Thus, a master roaster may be needed in the United States just as much as where the beans are grown. Timing is a consideration in offshoring and outsourcing. For example, if a medical doctor has an ill patient and their notes are needed by another doctor the next day, outsourcing the medical transcription to India can ensure that the notes are ready for the next medical doctor in the morning. A medical transcriptionist does not have to stay up late in the United States or work overnight. Outsourcing can improve some businesses’ ability to serve customers.

Conclusion Motivation is important for employees, managers, and leaders. Understanding what motivates different people is imperative. People with the same skills will vary even if they have the same cultural background. Cultural background will provide some indications for needs and motivation, but it will not be the same for all. Recognizing that working with people who have different life experiences can be stressful, and living in another country, while working for a company can be even more stressful. Understanding how to focus and deal with the various issues will help individuals become more successful as managers or leaders whether they are outsourcing, offshoring, or working with a division overseas.

Resources Doh, J. P., Luthans, F., & Gaur, A. (2024). International management: Culture, strategy, and behavior (12th

ed.). McGraw-Hill. https://online.vitalsource.com/#/books/9781265812874 Rath, T., & Conchie, B. (2008). Strengths based leadership: Great leaders, teams, and why people follow.

Gallop. Witzel, M. (2014). Management from the masters: From Confucius to Warren Buffet, twenty timeless

principles for business. Bloomsbury Publishing.

MGT 4302, International Management 4

UNIT x STUDY GUIDE Title

Suggested Unit Resources At the end of each chapter in your textbook, there is a feature titled “In the International Spotlight” that offers a profile of a distinct country. This is followed by the exercise “You Be the International Business Consultant” that presents a business challenge in that country and invites you to recommend a course of action. You are highly encouraged to review the following country profiles in this unit:

• “In the International Spotlight: Nigeria,” p. 468 • “In the International Spotlight: Brazil,” p. 551

MGT 4302, International Management 1

Course Learning Outcomes for Unit VIII Upon completion of this unit, students should be able to:

3. Evaluate the cultural challenges of managing an international business. 3.2 Reflect on the concepts of formalization, specialization, and the impact of multi-national

corporations. Required Unit Resources Chapter 12: Motivation Across Cultures Chapter 14: Human Resource Selection and Development Across Cultures Unit Lesson

Motivation Motivation varies from person to person, and motivation varies by region. Motivation is considered often as the pursuit or drive to satisfy a need. Certainly, we all have the same needs such as food, shelter, and clothing, but most of us have different interests in how those needs are met. That means that some people have different likes and different ways we want our needs met, or we fulfill our needs intrinsically or extrinsically. Intrinsic does not necessarily mean the person is an introvert though. Someone who wants to fulfill their needs extrinsically is not necessarily an extrovert. Ambivert’s have a combination of traits. While there is a universalist approach, meaning that everyone has the same motivators, looking at different geographic regions, even within the United States, demonstrates that individuals have different issues and motivations. Legendary investor, Warren Buffet, reframed a statement made by British leadership guru John Adair, when he stated, “a leader as someone who can get the job done through other people” (Witzel, 2014, p. 79). Regardless of the culture in which the business is situated, there are some key basic motivational needs of those within the organization. Understanding those needs and cultural demands can have a huge impact on the success of an international business venture. Another characterization is that, “The most effective leaders rally a broader group of people toward an organization’s goals, mission, and objectives. They lead. People follow” (Rath & Conchie, 2008, p. 79).

Motivational Theories Maslow’s need hierarchy denotes that a level of needs must be met before a person can move up. In fact, physiological needs must be met before safety needs. Safety needs must be met before social needs, and social needs must be met before esteem needs and self-actualization needs. Collectivists rearrange this and use only the needs of belonging first, then physiological, with safety next, and self-actualization last. Collectivists’ view self-actualization as service in society or to society. Thus, servant leadership can become more important to collectivists than other forms of management. Collectivists are often a group-based society that is more homogenous, at least on the surface. Thus, knowing how needs are met in your community in general, as well as in the organization you work with and the country you live in is imperative. For example, the Amish do not use modern electricity, except at their milk stations. With four main sects, the old order being the most conservative, will have different motivations than those who are used to electricity. For example, most teenagers in all countries want an electronic device that allows them to communicate and play games on as well as read on. Typically, Amish teens are not interested in

UNIT VIII STUDY GUIDE Motivation and Human Resource Management Across Cultures

MGT 4302, International Management 2

UNIT x STUDY GUIDE Title

these devices. They also are generally not interested in radio, television, or computers and are not motivated by new songs, new movies, or new games. The two-factor theory of motivation proposed by Herzberg indicates that there are two factors in motivation: one being hygiene factors and the other being motivators (Doh et al., 2024). For example, salary would be a hygiene factor, and the motivator would be achievement. Hygiene factors include job context variables while motivators are job content variables. Hygiene factors are either absent or present, and motivators are absent or present. Comparing Maslow’s hierarchy to Herzberg’s theory, Herzberg’s hygiene factors compare to Maslow’s hierarchy of needs, which are divided into physiological, safety, and social needs. Maslow organized these needs in a pyramid structure. Those at the bottom must be achieved before the next level up. You cannot reach the top of the pyramid without achieving all the other levels first. In other words:

• you must achieve the physiological needs (food, water, and basic body functions such as breathing) before you can deal with safety.

• Safety includes the security of your body, family, health, property, and resources before you can achieve the next level of belonging.

• Belonging means that you have friends, family, and folks with whom you can feel close to and/or intimate with. You need to achieve belonging before you can feel esteem.

• Esteem means that you have confidence to achieve physical and mental items. It also means you have respect for other people and other people respect you on some level. You must have esteem before you can become self-actualized.

• Self-actualization is the top or pinnacle of the pyramid. Self-actualization means you demonstrate moral standards for the groups you interact with, you are creative, you accept certain pieces of information as facts, you are able to problem solve and you can problem solve without prejudice toward other people.

In the traditional view, one is either satisfied or dissatisfied. As satisfaction varies from person to person, Maslow’s hierarchy assumes all items are easily available, and there is no competition or concern to obtain the items that meet our needs. Herzberg’s theory identifies items as absent or present. Thus, items that are absent can become present and then become absent based on an event. In fact, a country’s factors are taken into consideration in Herzberg’s theory, while they are not in Maslow’s theory. Achievement theory proposes that people have a need to get ahead. That motivation to get ahead and reach objectives will come before other things. Different countries will have different views of achievement, and this could be related to different cultural dimensions, which are categorized as power distance, individualism, uncertainty avoidance, and masculinity. In comparing one country to another, some rank higher in cultural dimensions that are considered masculine versus dimensions that are considered feminine or neutral. For example, when people are unclear or uncertain about a situation, they will avoid the situation in hopes to avoid consequences in which they do not understand, whether the consequences could be positive or negative. In this regard, the Japanese culture scores high on the masculine scale, reflecting strong uncertainty avoidance (Doh et al., 2024). Reviewing where you grew up, where co-workers grew up based on country, and the country you work in can help you understand more about why co-workers have different thoughts, achieve items in different sequences, and feel differently about certain items. Other theories include the equity theory, which focuses on how motivation is affected by people’s perception. The goal setting theory focuses on how people set goals and respond to them. The expectancy theory focuses on how much effort you expel will determine your performance and specific outcomes (Doh et al., 2024). These three theories will influence how jobs are designed, how rewards are structured, how satisfied employees are within a company, and how one values the work. The value of the work will determine the priorities of what gets done first and what gets done last. People who work overseas can be called expatriates, host-country nationals, or third-country nationals (TCNs). In some countries, there are informal group get-togethers so expatriates can socialize. All will have similar issues as they are working in another country and will have challenges with being in a host country for a long time. Sometimes, expats experience a great deal of stress, and being able to discuss it with others who have the same or similar issues is helpful. For example, in Xian, China, there is an expat group that gets together once a month. They do not meet to complain or commiserate but to discuss the various issues and

MGT 4302, International Management 3

UNIT x STUDY GUIDE Title

celebrate holidays. Returning to a home country for an expat may also not be easy. Thus, repatriation can be as difficult or more difficult for people when the overseas assignment is complete. Training will help and a debriefing program coming back will help as well. When determining whether an overseas assignment is right, individuals must consider their ability to adapt to another culture. Certainly, those individuals who have many and varied experiences are more likely to want and like overseas jobs. Yet, this does not mean that an individual will not experience some sadness or difficulties when living overseas. Language skills do help, most businesses use English around the world as the universal language of business. That said, it does help to know the local language so that terms and phrases can be understood. Compensation for overseas assignments will be different than for those who work in the United States. Base salary is a part, but there are many benefits. Often expats are allowed more vacation due to the stress of living away from home. Additionally, they have certain living costs paid for as well as all travel. Taxes are a big part of the compensation. Often taxes in another country are paid over the base salary so that the individual is not responsible for taxes in two countries. When companies have overseas businesses and overseas nationals, skills, access to training, and knowledge are important. The closer those skills are to the raw materials is important. The less you have to move certain materials the better off a company is. They save money as well as time from shaping a raw product into a finished product. This also means that certain items, such as coffee beans, may be better off dried in the country where they are grown rather than shipped raw. Dried does not mean roasted though. Thus, a master roaster may be needed in the United States just as much as where the beans are grown. Timing is a consideration in offshoring and outsourcing. For example, if a medical doctor has an ill patient and their notes are needed by another doctor the next day, outsourcing the medical transcription to India can ensure that the notes are ready for the next medical doctor in the morning. A medical transcriptionist does not have to stay up late in the United States or work overnight. Outsourcing can improve some businesses’ ability to serve customers.

Conclusion Motivation is important for employees, managers, and leaders. Understanding what motivates different people is imperative. People with the same skills will vary even if they have the same cultural background. Cultural background will provide some indications for needs and motivation, but it will not be the same for all. Recognizing that working with people who have different life experiences can be stressful, and living in another country, while working for a company can be even more stressful. Understanding how to focus and deal with the various issues will help individuals become more successful as managers or leaders whether they are outsourcing, offshoring, or working with a division overseas.

Resources Doh, J. P., Luthans, F., & Gaur, A. (2024). International management: Culture, strategy, and behavior (12th

ed.). McGraw-Hill. https://online.vitalsource.com/#/books/9781265812874 Rath, T., & Conchie, B. (2008). Strengths based leadership: Great leaders, teams, and why people follow.

Gallop. Witzel, M. (2014). Management from the masters: From Confucius to Warren Buffet, twenty timeless

principles for business. Bloomsbury Publishing.

MGT 4302, International Management 4

UNIT x STUDY GUIDE Title

Suggested Unit Resources At the end of each chapter in your textbook, there is a feature titled “In the International Spotlight” that offers a profile of a distinct country. This is followed by the exercise “You Be the International Business Consultant” that presents a business challenge in that country and invites you to recommend a course of action. You are highly encouraged to review the following country profiles in this unit:

• “In the International Spotlight: Nigeria,” p. 468 • “In the International Spotlight: Brazil,” p. 551