Chapter 13: International Negotiation and Cross-Cultural Communication
Chapter 14: Motivation in Multinational Companies
Question 1
The needs theory (Maslow’s theory, ERG, motivator-hygiene, and achievement motivation) and the process theory (expectancy, equity, goal setting, and reinforcement theories) of motivation are applicable in different situations and cultures. Compare, contrast, and discuss multinational management applications of these two categories of motivation theories. What challenges would multinationals experience as they apply these theories of motivation to work environment?
There is a difference between needs and process theories of motivation. Multinational organizations implement or execute these theories in different manners. Of course, some challenges emerge when executing these theories in these firms. In Greece and Zambia, the management of companies intends to motivate employees through attractive salary, good working conditions, and job security, which are prominent aspects of Maslow theory of needs. Also, according to ERG theory, multinational firms provide immense growth opportunities for employees to motivate and satisfy them. Many firms in India and China apply the motivator-hygiene theory, as they enable challenging job features or characteristics to derive motivations and quality work. Comparatively, instead of applying motivator-hygiene theory, some companies apply achievement motivation theory, as people in the company usually set their own goals and standards of excellence. The implementation or application of these theories is possible in multinational firms through work nature identification, cultural integration, considering the source of job fulfillment, and understanding the job limitations to meet needs of employees (Cullen & Parboteeah, 2014, P. 622).
Conversely, expectancy theory indicates the individual’s expectations regarding the amount of work to gain the satisfaction and motivation. The big challenge when applying this theory is to identify outcomes in the local and national culture. Moreover, it also seems tough for the management to make employee believe that their efforts will reach desired needs. Similarly, in Indian firms, performance is measured through expectations and fulfillment (Cullen & Parboteeah, 2014, P. 624)
In the equity theory, comparatively, it looks a big challenge for multinational companies to create equity norms. As compared to needs theory, process theories contain fewer chances of acceptance. For Instance, over equity mat emerge in different conditions but does not occur when applying the need theory. Similarly, in goal setting theory, the focus is on setting individual goals in the presence of different cultural expectations (P 627). This process theory can be applied before executing the work, and comparatively, several needs theories are visible after the work execution. The difference between process and need theories is also visible when an international firm applies reinforcement theory. Firms usually intend to sustain the process, which drives a good behavior of employees. For example, in Japan, people like to have perks, attractive salaries, and many other incentives to dedicate their lives to companies. Accordingly, it is the way for the company to motivate employees and enable the sustainable work process. However, the big challenge is to stop negative reinforcement, which usually occurs due to different expectations regarding rewards (Cullen & Parboteeah, 2014, P. 630).
In the end, the big difference, which can be derived regarding the process and need theories, is the perception. Need theories are triggered by the employee perceptions, and process theories are integrated with the management perceptions.
Question 2
Dirty tricks might be unavoidable in cross-cultural negotiation. What are examples of dirty tricks? How are they inappropriate in international negotiation and how should negotiators avoid them?
In the cross-cultural integration process, employee conflicts or disputes are possible. However, international firms are using different methods of negotiation to resolve these conflicts. It seems compulsory for the management of the company to be fair in the negotiation process instead of depicting some dirty tricks. Some example of dirty tricks to create the win situation for a particular party are bluffing, stalling, and escalating authority, good-guy/bad-guy routine. Interestingly, when the management persists on the undesired agreements for parties, it looks unavoidable due to the possible negative impact. These tricks are inappropriate in the international negotiation because it is not acceptable. It may create a negative perception of parties, as they can perceive the partitioning behavior of negotiators. The best way to avoid these dirty tricks is recognizing the dirty trick early and come up with some different alternatives to propose the solution. It is essential to standardize the negotiation process, which can restrain the negotiators from using dirty tricks and enhancing the visibility of impartial behavior. There are many opportunities that the negotiator can identify to use dirty tricks. Probably, the purpose of negotiator is to derive personal benefits. In an international negotiation process, different parties are aware of these intended dirty tricks. Negotiator and parties understand the standard negotiation process, which enables the successful conflict resolution (Cullen & Parboteeah, 2014, P. 582).
Question 3
Discuss the major principles of reward allocation. Which one(s) is (are) preferred by the collectivist culture? Individualistic culture? Why?
Different organizations have created an effective culture, which boosted the performance of employees. In an organizational culture, there are some rewarding principles. For Instance, equity is a major principle (Cullen & Parboteeah, 2014, P. 626). The management of the company must contain the fairness when giving rewards, based on performance, as unfair rewarding can convert employees. Furthermore, the equality and need are other principles, which are based on equal distribution and personal needs respectively. In the collectivist culture, firms have preferred the equity principle. For example, performance appraisal system is good in forms to measure the performance and share results to contain the fairness. At the workplace, the management has to face the employee diversity. Different employees contain different values, traditions, norms, behaviors, and intentions, and consequently, they may have a different perception regarding rewards. Thus, to avoid any impairment, every employee should be facilitated equally and fairly. For Instance, if two employees have performed and contributed well, there should be the same reward. Even in the reward planning process, fairness is an integral aspect, and it can motivate and satisfy employees. In return, every employee becomes loyal, and it is also a protuberant goal of multinational companies. In an Individualistic culture, the need principle is pertinent; as the management can focus on each employee motivation through navigating his/her needs (Cullen & Parboteeah, 2014).
Question 4
What do you think Vroom’s expectancy theory of motivation stands for? In a multicultural environment, what are the multinational management implications for this expectancy model?
Vroom’s expectancy theory of motivation stands for different individual factor. These individual factors are knowledge, experience, personality, skills, and abilities. To motivate employees in the company, the management usually has to identify the performance expectations. Accordingly, the firm management identifies the appropriate rewards for employees in a national culture (P 631). According to Vroom, an employee in the company puts his efforts to expect the performance. After this, he analyzes his performance to expect the reward from the management. It leads towards the reward valences. In the multinational organization, the managerial implications of this expectancy theory are the identification of some outcomes, which are preferred or valued. During local or national culture, the management has to ensure the desired ends through different actions of employees. Generally, in several multinational firms, the management understands the expectations of employees and makes strategies or develops traits to motivate and retain them for a long run. Integrating with the employee expectations is obvious, as it shapes positive employee behavior. Making efforts of employees in the company pertinent is one of the top managerial implications, and multinational firms are quite up to it. Engaging employees, along with their expectations is effective and lucrative when operating in different companies. When an employee in a firm knows that he can get a particular reward from the management through a particular behavior and work progress, he ensures efficiency and hard work (Cullen & Parboteeah, 2014, P. 623).
Reference
Cullen, J.B., & Parboteeah, K.P. (2014). Multinational management: A strategic approach (6 ed.). Mason, OH: South-Western
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