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Culture, work and motivation

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Chapter 9
To motivate employees, you must bring
them into the family and treat them like
respected members of it.
-- Akio Morita
Founder and former CEO
Sony Corporation, Japan
(p. 280)
We need the fork on employee’s
necks in Russia, not all these nice
words and baby techniques.
-- Snejina Machailova
University of Auckland, New Zealand
(p. 280)
Opening question:
Why are these two observations about how to
motivate employees so different? And what
are the managerial implications?
Performance incentives at Lincoln Electric
1. Lincoln is the story of applying a highly
successful American-based employee incentive
system in Germany, Mexico, and China.
2. Why did the plan fail when it was applied in
Germany and Mexico?
3. What did Lincoln managers learn that allowed
them to finally succeed in Mexico, and later in
(pp. 281-285)
Topic for today:
Culture, work, and motivation
• The world of work
• Work and leisure
• Culture, motivation, and work behavior: A
• Culture and the psychology of work
• Incentives and rewards across cultures
Consider: Work motivation
1. Why do people work? Why do you work?
2. Do these motivations differ across cultures
and regions? If so, how?
3. Recognizing individual differences, would
you expect the within-culture or the
between-culture variance to be larger in the
reasons why people work?
Personal work values
and employee behavior
(p. 286)
Managing a maquiladora:
Mexico and Korea
• Korean manager’s views: Mexican workers do
not see work as a sacred duty, routinely make
commitments they have no intention of keeping,
fail to distinguish between work and play, play
loud music, and talk incessantly.
• Mexican worker’s views: Korean managers
evaluate everyone using their own (Korean)
standards and philosophy, establish unrealistic
work goals, blame workers for failures, and look
down on locals.
(pp. 286-287)
Top 4 work preferences across countries
(p. 288)
Work values and
the psychological contract
Work, wages, benefits
and security
(p. 290)
Consider: Work and leisure
Do most people work to live or live to work?
What about you?
Vacation policies
(p. 292)
What is motivation?
Work motivation is defined as that which
energizes, directs, and sustains human behavior.
Consider: Which, if any, of these three
components of work motivation can be affected
by cultural differences?
(p. 294)
Cultural influences on work motivation
and performance: A model
Culture 1: Manager’s
normative beliefs about
social relationships and
time/work patterns
(e.g., belief in individualism;
monochronic behavior)
Culturally compatible
approach to motivation
(e.g., preference for goals
and targets; performancebased compensation)
Manager’s approach to
work motivation
(e.g., use of managementby-objectives programs;
merit-based compensation
tied to individual
Other influences on work motivation and performance
(e.g., company policies; legal or contractual obligations; employee
skills and abilities; managerial and organizational experience in
motivating others; mutual trust; personal and situational
Culture 2: Employees’
normative beliefs about
social relationships and
time/work patterns
(e.g., belief in collectivism;
polychronic behavior)
Culturally compatible
approach to motivation
(e.g., preference for general
goals and targets; seniority
or group-based
Employee response
(e.g., lack of employee buyin or commitment;
resistance to intra-group
competition; poor work
(p. 295)
Culture and the psychology of work
Culture can influence:
• Cognitions and expectations: How problems are
identified or analyzed by both employees and managers,
as well as what constitutes an acceptable solution.
• Causal attributions: How credit and blame are
• Risk and uncertainty: The extent to which individuals
and groups will accept or tolerate risk.
• Social loafing and team performance: The extent to
which groups experience social loafing.
(pp. 296-300)
Extrinsic and intrinsic rewards
• Extrinsic rewards are rewards that are provided to
employees as a result of good performance, including
such items as salaries, bonuses, benefits, and job
security. They are largely “administered” by the firm, not
the employee, as a consequence of his or her
• Intrinsic rewards are rewards that arise from doing one’s
job in a satisfactory way. They are largely “selfadministered;” that is, employees may feel pride or
satisfaction from a job well done or they may enjoy the
holiday time they receive as a consequence of hard work.
(p. 301)
Extrinsic incentives and rewards
Financial incentives
Executive compensation
Gender and compensation
Employee perks
(p. 302)
Ratio CEO compensation
to average employees
(p. 304)
Wage gaps between
men and women across nations
(p. 305)
Intrinsic incentives and rewards
• Employee involvement
• Work-related attitudes
(p. 307)
Expectations, rewards, and job attitudes
(p. 308)
Average job satisfaction
(p. 309)
Motivating a global workforce
• Motivating employees
from different cultures
and countries
Personal work values
Employee cognitions
Cultural taboos
Reward preferences
• Incentives and rewards
• Psychological contracts
• Work environment
Work outcomes
• Effort and performance
• Cooperation and
• Loyalty
• Continued membership
(p. 311)
Power distribution and incentives
• Hierarchical cultures tend to stress specific job
requirements and top-down directives to
subordinates, with primarily extrinsic rewards for
compliance and loyalty.
• Egalitarian cultures tend to stress employee
involvement in helping to determine the best
means to achieve corporate objectives, with a
greater (though not exclusive) emphasis on
intrinsic rewards.
(pp. 311-312)
Social relationships and incentives
• Individualistic cultures tend to emphasize
extrinsic rewards tied to personal responsibility
and achievement.
• Collectivistic cultures tend to emphasize intrinsic
rewards tied to employee commitment and/or
group-based rewards based on group
(p. 312)
Environmental relationships and
• Mastery-oriented cultures tend to encourage
competitive work environments with large
monetary and symbolic rewards for “breakthrough” accomplishments.
• Harmony-oriented cultures tend to emphasize
cooperation and team efforts with standardized
rewards based on seniority or collective efforts.
(p. 312)
Time, work patterns, and incentives
• Monochronic cultures tend to provide employees
with simple, straightforward—and measureable—
tasks to accomplish within specific time limits, with
intrinsic and extrinsic rewards tied to employee
focus on the job at hand.
• Polychronic cultures tend to provide employees
with less direction and more flexibility in time
limits, with intrinsic and extrinsic rewards tied to
being able to accomplish multiple tasks
(pp. 312-313)
Uncertainty, social control, and
• Rule-based cultures tend to reward strict
adherence to clearly publicized rules and
regulations that are applied uniformly to all
employees; rewards are often based on objective
or quantitative criteria.
• Relationship-based cultures tend to allow for
extenuating circumstances or personal
relationships in evaluating performance; rewards
are often based on subjective or qualitative
(p. 313)
Lincoln Electric, one more time
Lincoln Electric began with a naГЇve assumption that
incentive systems are universal; they soon learned
otherwise. Even so, they continued to try to tinker
with their existing pay plan in plants around the globe
instead of beginning anew based on local
1. Why did Lincoln take this approach?
2. If you were in change, what would you do differently?
Specifically, outline a plan you would recommend to
design localized incentive systems in various
countries that would still meet the company’s
business objectives and maintain its corporate image.
Think about it:
Personalizing work motivation
1. In rank order, list the five most important
incentives or rewards that you seek in a job.
2. Are these rewards largely extrinsic or intrinsic?
3. How do you plan to pursue these rewards in the
4. Would working in a global environment (as
opposed to a local one) enhance or impede the
pursuit of these rewards? How?
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