Deck 12: Motivation Across Cultures

Question 1

Over the last five years, Corkley Finn, a regional investment brokerage house, has been extremely profitable.Some of its largest deals have involved cooperation with investment brokers in other countries.Realizing that the world economy is likely to grow vigorously over the next 25 years, the company has decided to expand its operations and open overseas branches.In the beginning, the company intends to work in cooperation with other local brokerages; however, the company believes that within five years, it will have garnered enough business to break away and operate independently.For the time being, the firm intends to set up a small office in London and another in Tokyo.
The firm plans on sending four people to each of these offices and recruiting the remainder of the personnel from the local market.These new branch employees will have to spend time meeting potential clients and building trust.This will be followed by the opportunity to put together small financial deals and, it is hoped, much larger ones over time.
The company is prepared to invest whatever time or money is needed to make these two branches successful."What we have to do," the president noted, "is establish an international presence and then build from there.We will need to hire people who are intensely loyal to us and use them as a cadre for expanding operations and becoming a major player in the international financial arena.One of our most important challenges will be to hire the right people and motivate them to do the type of job we want and stay with us.After all, if we bring in people and train them how to do their jobs well and then they don't perform or they leave, all we've done is spend a lot of money for nothing and provide on-the-job training for our competitors.In this business, our people are the most important asset, and clients most often are swayed toward doing business with an investment broker with whom they think they can have a positive working relationship.The reputation of the firm is important, but it is always a function of the people who work there.Effective motivation of our people is the key to our ultimate success in these new branches."
When motivating the personnel in London and Tokyo, is the company likely to find that the basic hierarchical needs of the workers are the same? Why or why not?

Answer 1

Employee motivation refers to commitment, hard work, energy, creativity, etc. that employees bring to the work while delivering duties in the firm. It is quite important for the firm to possess motivated employees so that whether the firm's growth shrinks or expands, the employees are there to support it.
Case summary:
Company CF has its profitable regional investment brokerage house operations in Country U. As the firm believes that the world economy would be growing vigorously over the next 25 years, the firm plans to expand its operations overseas. To start with this, the firm is creating two new operations in two cities City L in Country E and City T in Country J. four people from the home country would be send to each of these cities where they would be hired additional manpower locally. The firm is ready to undertake anything to get successful in two locations and increase its global presence. The firm believes that the motivation of the employees is the key to the success of any firm.
When employees in City L and City T have to be motivated, the company is not likely to find that the basic hierarchical needs of the workers at both the places would be the same. This is because both the places City L and City T belong to different countries and people from these countries carry different needs and perceptions of working in a business organization.
There are five types of needs given in the needs hierarchy by researcher Person M including physiological needs, safety needs, social needs, self-esteem, and self-actualization. Physiological needs refer to the basic needs of obtaining food, water, clothing, shelter, etc. Safety need refers to the personal security, job security, etc. Social needs refer to the love, friendship, companionship, sense of belonging, etc. carried by people. Self-esteem refers to the need of status, position, recognition, respect, etc. carried by people. Self-actualization refers to the need of a person to become the most one can be.
Like people from City L and from City T might be carrying similar psychological needs like food, water, shelter, sleep, etc. but it is not necessary that people of these two places would be carrying similar safety needs, social needs, self-esteem, and self-actualization needs. There can be huge difference in these needs as perceived by people belonging to two different cities and countries. There is no assurance that workforce in both the places would be having similar safety needs, social needs, self-esteem, and self-actualization needs. People from these two countries could be altogether opposite to each other when it comes to requirement of these needs. On the basis of this, it can be said that the basic hierarchical needs of the workers at both the places would not be the same when it comes to employee motivation.

Question 2

What are some current issues facing Singapore? What is the climate for doing business in Singapore today?

Answer 2

Answer: Most of the issues currently facing Singapore stem from labor shortages and increased costs of labor. Prime Minister Lee Kuan Yew, who has now stepped down, led Singapore to economic prosperity with an iron hand. Singapore is also an extraordinarily clean city with much vigor and vitality as evidenced by the vast amount of new construction. Multinational companies obviously find Singapore a good place for investment that can produce profits for the investors as well as jobs for Singaporeans.
Free trade, free markets, and a favorable climate for investment and profits make Singapore a very desirable prospect for trade. Legislation to attract new foreign investment was passed in 1967. This allows investors to be eligible for tax-exempt status for up to a five-year period. Singapore serves as a financial bridge between the East and the West and competes with Hong Kong as the center for trading foreign currencies and dealing in financial futures. In addition, the government of Singapore welcomes all foreign companies and offers low corporate taxes and a welcome package that includes help in arranging permanent residency for transferred executives, assistance in locating office space in government?owned buildings, and special tax breaks to companies that establish regional headquarters in Singapore. Another important factor that adds to Singapore's business climate is that there are no foreign exchange controls. This represents a big plus for traders who like to dodge in and out of stocks without a lot of bureaucratic paperwork. Singapore has been exceptionally helpful to the U.S. by following a policy of cooperation with international bodies and the community of nations. The country expects to continue to attract outside capital by having a business and social climate that is favorable and stable.

Question 3

Do people throughout the world have needs similar to those described in Maslow's need hierarchy? What does your answer reveal about using universal assumptions regarding motivation?

Answer 3

It is a well-known fact that employees all over the world agree that their needs are very similar, this is the major reason why Establishment likes the International Labor Organization (ILO) Exists.
The International Labor Organization is a UN agency that deals with Labor issues, especially international labor standard, social protection and work opportunities for all. This organization also promotes a uniformed labor practice which is similar and agrees to with Maslow's theory of motivation.
This theory in relation to the subject matter dealt extensively with the fact that workers all over the world are in need of food, shelter, job security, interaction with others, power, status and to reach their full potentials.
In some cases, countries with a high level of government control in business operations like CN and IR this theory might be slightly altered. Multinationals doing Business in these countries must adjust to the cultures, labor laws and formulate a compensation structure that will suit the Governments regulations.
In conclusion, irrespective of the culture and government policies of a nation the needs of employees are always similar.

Question 4

How could an understanding of the two?factor theory of motivation be of value in motivating the personnel at both these locations? Would hygiene factors be more important to one of these groups than to the other? Would there be any difference in terms of the importance of motivators?

Question 5

Singapore is an island city-state that is located at the southern tip of the Malay Peninsula.The small country covers 239 square miles and is connected by train across the Johore Strait to West Malaysia in the north.The Strait of Malacca to the south separates Singapore from the Indonesian island of Sumatra.There are approximately 4.7 million people in Singapore, resulting in a population density per square mile of almost 18,000 people.About three-fourths of Singaporeans are of Chinese descent, 15 percent are Malays, and the remainder are Indian and European.The gross domestic product of this thriving country is over $235.7 billion, and per capita GDP is around $50,300.One of the so-called newly industrialized countries, Singapore in recent years has been affected by the economic uncertainty around the world, but the currency and prices have remained relatively stable.The very clean and modern city remains the major commercial and shipping center of Southeast Asia.
Singapore is a Southeast Asian financial and high-tech hub, attracting more and more pharmaceutical and medical technology producers from across the globe.
The Madruga Corporation of Cleveland has been producing small electronic toys in Singapore.The small factory has been operated by local managers, but Madruga now wants to expand the Singapore facilities as well as integrate more expatriate managers into the operation.The CEO explained: "We do not want to run this plant as if it were a foreign subsidiary under the direct control of local managers.It is our plant and we want an on-site presence.Over the last year we have been staffing our Canadian and European operations with headquarters personnel, and we are now ready to turn attention to our Singapore operation." Before doing so, the company intends to conduct some on-site research to learn the most effective way of managing the Singapore personnel.In particular, the Madruga management team is concerned with how to motivate the Singaporeans and make them more productive.One survey has already been conducted among the Singapore personnel; this study found a great deal of similarity with the workers at the U.S.facilities.Both the Singapore and the U.S.employees expressed a preference for job-content factors such as the chance for growth, achievement, and increased responsibility, and they listed money and job security toward the bottom of the list of things they looked for in a job.
Madruga management is intrigued by these findings and believes that it might be possible to use some of the same motivation approaches in Singapore as it does in the United States.Moreover, one of the researchers sent the CEO a copy of an article showing that people in Singapore have weak uncertainty avoidance and a general cultural profile that is fairly similar to that of the United States.The CEO is not sure what all this means, but she does know that motivating workers in Singapore apparently is not as "foreign" a process as she thought it would be.
www.sg.
What are some current issues facing Singapore? What is the climate for doing business in Singapore today?

Question 6

What kinds of incentives do scientific and technical employees respond to that might not be as meaningful to other categories of employees?

Question 7

Over the last five years, Corkley & Finn, a regional investment brokerage house, has been extremely profitable.Some of its largest deals have involved cooperation with investment brokers in other countries.Realizing that the world economy is likely to grow vigorously over the next 25 years, the company has decided to expand its operations and open overseas branches.In the beginning, the company intends to work in cooperation with other local brokerages; however, the company believes that within five years, it will have garnered enough business to break away and operate independently.For the time being, the firm intends to set up a small office in London and another in Tokyo.
The firm plans on sending four people to each of these offices and recruiting the remainder of the personnel from the local market.These new branch employees will have to spend time meeting potential clients and building trust.This will be followed by the opportunity to put together small financial deals and, it is hoped, much larger ones over time.
The company is prepared to invest whatever time or money is needed to make these two branches successful."What we have to do," the president noted, "is establish an international presence and then build from there.We will need to hire people who are intensely loyal to us and use them as a cadre for expanding operations and becoming a major player in the international financial arena.One of our most important challenges will be to hire the right people and motivate them to do the type of job we want and stay with us.After all, if we bring in people and train them how to do their jobs well and then they don't perform or they leave, all we've done is spend a lot of money for nothing and provide on-the-job training for our competitors.In this business, our people are the most important asset, and clients most often are swayed toward doing business with an investment broker with whom they think they can have a positive working relationship.The reputation of the firm is important, but it is always a function of the people who work there.Effective motivation of our people is the key to our ultimate success in these new branches."
How could an understanding of the two-factor theory of motivation be of value for motivating the personnel at both locations? Would hygiene factors be more important to one of these groups than to the other? Would there be any difference in the importance of motivators?

Question 8

Based on the information in this case, determine the specific things that seem to motivate human resources in Singapore.

Question 9

Is Herzberg's two?factor theory universally applicable to human resource management, or is its value limited to Anglo countries?

Question 10

Using Figure 12?7 as a point of reference, what recommendations would you make regarding how to motivate the personnel in London? In Tokyo? Are there any significant differences between the two? If so, what are they? If not, why not?

Question 11

Singapore is an island city-state that is located at the southern tip of the Malay Peninsula.The small country covers 239 square miles and is connected by train across the Johore Strait to West Malaysia in the north.The Strait of Malacca to the south separates Singapore from the Indonesian island of Sumatra.There are approximately 4.7 million people in Singapore, resulting in a population density per square mile of almost 18,000 people.About three-fourths of Singaporeans are of Chinese descent, 15 percent are Malays, and the remainder are Indian and European.The gross domestic product of this thriving country is over $235.7 billion, and per capita GDP is around $50,300.One of the so-called newly industrialized countries, Singapore in recent years has been affected by the economic uncertainty around the world, but the currency and prices have remained relatively stable.The very clean and modern city remains the major commercial and shipping center of Southeast Asia.
Singapore is a Southeast Asian financial and high-tech hub, attracting more and more pharmaceutical and medical technology producers from across the globe.
The Madruga Corporation of Cleveland has been producing small electronic toys in Singapore.The small factory has been operated by local managers, but Madruga now wants to expand the Singapore facilities as well as integrate more expatriate managers into the operation.The CEO explained: "We do not want to run this plant as if it were a foreign subsidiary under the direct control of local managers.It is our plant and we want an on-site presence.Over the last year we have been staffing our Canadian and European operations with headquarters personnel, and we are now ready to turn attention to our Singapore operation." Before doing so, the company intends to conduct some on-site research to learn the most effective way of managing the Singapore personnel.In particular, the Madruga management team is concerned with how to motivate the Singaporeans and make them more productive.One survey has already been conducted among the Singapore personnel; this study found a great deal of similarity with the workers at the U.S.facilities.Both the Singapore and the U.S.employees expressed a preference for job-content factors such as the chance for growth, achievement, and increased responsibility, and they listed money and job security toward the bottom of the list of things they looked for in a job.
Madruga management is intrigued by these findings and believes that it might be possible to use some of the same motivation approaches in Singapore as it does in the United States.Moreover, one of the researchers sent the CEO a copy of an article showing that people in Singapore have weak uncertainty avoidance and a general cultural profile that is fairly similar to that of the United States.The CEO is not sure what all this means, but she does know that motivating workers in Singapore apparently is not as "foreign" a process as she thought it would be.
www.sg.
Based on the information in this case, determine the specific things that seem to motivate human resources in Singapore.

Question 12

What advantages might employees see in working for a truly global company (as opposed to a North American MNC)?

Question 13

Over the last five years, Corkley & Finn, a regional investment brokerage house, has been extremely profitable.Some of its largest deals have involved cooperation with investment brokers in other countries.Realizing that the world economy is likely to grow vigorously over the next 25 years, the company has decided to expand its operations and open overseas branches.In the beginning, the company intends to work in cooperation with other local brokerages; however, the company believes that within five years, it will have garnered enough business to break away and operate independently.For the time being, the firm intends to set up a small office in London and another in Tokyo.
The firm plans on sending four people to each of these offices and recruiting the remainder of the personnel from the local market.These new branch employees will have to spend time meeting potential clients and building trust.This will be followed by the opportunity to put together small financial deals and, it is hoped, much larger ones over time.
The company is prepared to invest whatever time or money is needed to make these two branches successful."What we have to do," the president noted, "is establish an international presence and then build from there.We will need to hire people who are intensely loyal to us and use them as a cadre for expanding operations and becoming a major player in the international financial arena.One of our most important challenges will be to hire the right people and motivate them to do the type of job we want and stay with us.After all, if we bring in people and train them how to do their jobs well and then they don't perform or they leave, all we've done is spend a lot of money for nothing and provide on-the-job training for our competitors.In this business, our people are the most important asset, and clients most often are swayed toward doing business with an investment broker with whom they think they can have a positive working relationship.The reputation of the firm is important, but it is always a function of the people who work there.Effective motivation of our people is the key to our ultimate success in these new branches."
Using Figure 12-7 as a point of reference, what recommendation would you make regarding how to motivate the personnel in London? In Tokyo? Are there any significant differences between the two? If so, what are they? If not, why not?

Question 14

Would knowledge of the achievement motive be of any value to the expatriate managers who are assigned to the Singapore operation?

Question 15

What are the dominant characteristics of high achievers? Using Figure 12‑7 as your point of reference, determine which countries likely will have the greatest percentage of high achievers.Why is this so? Of what value is your answer to the study of international management?

Question 16

If you were using Figure 12?7 to help explain how to effectively motivate the Singapore human resources, what conclusions could you draw that would help provide guidelines for the Madruga management team?

Question 17

Singapore is an island city-state that is located at the southern tip of the Malay Peninsula.The small country covers 239 square miles and is connected by train across the Johore Strait to West Malaysia in the north.The Strait of Malacca to the south separates Singapore from the Indonesian island of Sumatra.There are approximately 4.7 million people in Singapore, resulting in a population density per square mile of almost 18,000 people.About three-fourths of Singaporeans are of Chinese descent, 15 percent are Malays, and the remainder are Indian and European.The gross domestic product of this thriving country is over $235.7 billion, and per capita GDP is around $50,300.One of the so-called newly industrialized countries, Singapore in recent years has been affected by the economic uncertainty around the world, but the currency and prices have remained relatively stable.The very clean and modern city remains the major commercial and shipping center of Southeast Asia.
Singapore is a Southeast Asian financial and high-tech hub, attracting more and more pharmaceutical and medical technology producers from across the globe.
The Madruga Corporation of Cleveland has been producing small electronic toys in Singapore.The small factory has been operated by local managers, but Madruga now wants to expand the Singapore facilities as well as integrate more expatriate managers into the operation.The CEO explained: "We do not want to run this plant as if it were a foreign subsidiary under the direct control of local managers.It is our plant and we want an on-site presence.Over the last year we have been staffing our Canadian and European operations with headquarters personnel, and we are now ready to turn attention to our Singapore operation." Before doing so, the company intends to conduct some on-site research to learn the most effective way of managing the Singapore personnel.In particular, the Madruga management team is concerned with how to motivate the Singaporeans and make them more productive.One survey has already been conducted among the Singapore personnel; this study found a great deal of similarity with the workers at the U.S.facilities.Both the Singapore and the U.S.employees expressed a preference for job-content factors such as the chance for growth, achievement, and increased responsibility, and they listed money and job security toward the bottom of the list of things they looked for in a job.
Madruga management is intrigued by these findings and believes that it might be possible to use some of the same motivation approaches in Singapore as it does in the United States.Moreover, one of the researchers sent the CEO a copy of an article showing that people in Singapore have weak uncertainty avoidance and a general cultural profile that is fairly similar to that of the United States.The CEO is not sure what all this means, but she does know that motivating workers in Singapore apparently is not as "foreign" a process as she thought it would be.
www.sg.
Would knowledge of the achievement motive be of any value to the expatriate managers who are assigned to the Singapore operation?

Question 18

A U.S.manufacturer is planning to open a plant in Sweden.What should this firm know about the quality of work life in Sweden that would have a direct effect on job design in the plant? Give an example.

Question 19

Singapore is an island city-state that is located at the southern tip of the Malay Peninsula.The small country covers 239 square miles and is connected by train across the Johore Strait to West Malaysia in the north.The Strait of Malacca to the south separates Singapore from the Indonesian island of Sumatra.There are approximately 4.7 million people in Singapore, resulting in a population density per square mile of almost 18,000 people.About three-fourths of Singaporeans are of Chinese descent, 15 percent are Malays, and the remainder are Indian and European.The gross domestic product of this thriving country is over $235.7 billion, and per capita GDP is around $50,300.One of the so-called newly industrialized countries, Singapore in recent years has been affected by the economic uncertainty around the world, but the currency and prices have remained relatively stable.The very clean and modern city remains the major commercial and shipping center of Southeast Asia.
Singapore is a Southeast Asian financial and high-tech hub, attracting more and more pharmaceutical and medical technology producers from across the globe.
The Madruga Corporation of Cleveland has been producing small electronic toys in Singapore.The small factory has been operated by local managers, but Madruga now wants to expand the Singapore facilities as well as integrate more expatriate managers into the operation.The CEO explained: "We do not want to run this plant as if it were a foreign subsidiary under the direct control of local managers.It is our plant and we want an on-site presence.Over the last year we have been staffing our Canadian and European operations with headquarters personnel, and we are now ready to turn attention to our Singapore operation." Before doing so, the company intends to conduct some on-site research to learn the most effective way of managing the Singapore personnel.In particular, the Madruga management team is concerned with how to motivate the Singaporeans and make them more productive.One survey has already been conducted among the Singapore personnel; this study found a great deal of similarity with the workers at the U.S.facilities.Both the Singapore and the U.S.employees expressed a preference for job-content factors such as the chance for growth, achievement, and increased responsibility, and they listed money and job security toward the bottom of the list of things they looked for in a job.
Madruga management is intrigued by these findings and believes that it might be possible to use some of the same motivation approaches in Singapore as it does in the United States.Moreover, one of the researchers sent the CEO a copy of an article showing that people in Singapore have weak uncertainty avoidance and a general cultural profile that is fairly similar to that of the United States.The CEO is not sure what all this means, but she does know that motivating workers in Singapore apparently is not as "foreign" a process as she thought it would be.
www.sg.
If you were using Figure 12-7 to help explain how to motivate Singapore human resources effectively, what conclusions could you draw that would help provide guidelines for the Madruga management team?

Question 20

What does a U.S.firm setting up operations in Japan need to know about work centrality in that country? How would this information be of value to the multinational? Conversely, what would a Japanese firm need to know about work centrality in the United States? Explain.

Question 21

In managing operations in Europe, which process theory - equity theory, goal-setting theory, or expectancy theory-would be of most value to an American manager? Why?

Question 22

What do international managers need to know about the use of reward incentives to motivate personnel? What role does culture play in this process?

Question 23

When motivating the personnel in London and Tokyo, is the company likely to find that the basic hierarchical needs of the workers are the same? Why or why not?

Question 24

In order for multinationals to continue expanding their operations, they must be able to attract and retain highly qualified personnel in many countries.Much of their success in doing this will be tied to the motivational package that they offer, including financial opportunities, benefits and perquisites, meaningful work, and an environment that promotes productivity and worker creativity.Automotive firms, in particular, are a good example of MNCs that are trying very hard to increase their worldwide market share.So for them, employee motivation is an area that is getting a lot of attention.Go to the Web and look at the career opportunities that are currently being offered by Nestlé, Unilever, and Procter & Gamble (websites: nestle.com, unilever.com, png.com).All three of these companies provide information about the career opportunities they offer.Based on this information, answer these questions: (1) What are some of the things that all three firms offer to motivate new employees? (2) Which of the three has the best motivational package? Why? (3) Are there any major differences between P&G and European-based rivals? What conclusion can you draw from this?

Question 25

What are some of the things that successful MNCs do to effectively motivating European employees?