Factors Affecting Expatriate Motivation in Multinational Corporation Company - Research Paper Example

Introduction The purpose of the study The objective of the Study Research methodology The concept of motivation and job satisfaction Motivation concept and theories overview Maslow theory McClelland theory Herzberg theory Vroom`s theory The theory of justice Expatriate profile The stages of expatriates employment and integration The factors of motivation for expatriates Possible obstacles Conclusion Factors Affecting Expatriates Motivation in Multinational Corporation by Name The name of the Class Tutor City Date Introduction With an increasing tendency of markets integration and companies foreign investments, the reality of business world has gained new perspective. The companies are no longer attached to the special sites to receive high production results. Businesses manage and operate their recourses in a new global way. And those aiming to succeed in the global markets face the problem of effective expatriates’ management (Black & Gregersen 1998). Expatriates are regarded as essential expertise and experience transferors from the source company to its branches. Expatriates can serve the key component for the companies in gaining competence in fast speeding global environment (Tempel, Tay & Chandrasekar 2006). However, most multinational companies are unable to receive satisfactotry results from their expatriate employees. It turns out that large proportion off the expatriates fail to perform their primary functions in the foreign surrounding due to numerous factors such as inability to adjust to new environment, inefficient social support, and unjustified expectations (Black & Gregersen 1999). That is why the problem of effective and highly motivational management of expatriates gains special significance. The purpose of the study is to evaluate the experience of multinational companies hiring expatriates and to identify the factors influencing motivation among these employees. The objective of the study is to assess the factors influencing motivation according their degree of value and to contribute to the study with possible mechanisms of expatriates’ work efficacy increasing. Research Methodology Having defined our study aim and objective, and having studied the literature regarding this problem we have managed to create the framework of our research. Firstly, due to the controversial and complicated concept of expatriation, qualitative method of research along with interpretation were used. With the help of qualitative research it is possible to process theoretical information regarding this topic along with case studies. The concept of job satisfaction has been regarded in a number of ways as it is one of the most extensively exploited terms in Organizational Psychology. It is generally associated with stability, personal involvement, possibility for promotion, friendly environment, positive evaluation, motivation, and high salary. Among numerous definitions of the term Locke (1976) explained job satisfaction as a gratifying or affirmative emotional state achieved from appraisal of one`s job or job experiences. Hulin and Judge (2003) emphasized the fact that job satisfaction includes multifaceted personal feedback from one`s job, and such a feedback has behavioral, affective, and cognitive nature simultaneously. Feelings evoked by one`s job such as boredom, irritation, happiness, sadness are explained in the terms of emotional part of the job satisfaction. Cognitive aspect of the term includes one`s opinions regarding the job such as exhausting or demanding. While people`s attitude to work, such as being late or working overtime reflects behavioral component of the concept (Bernstein & Nash, 2008). The interdependence between job satisfaction and motivation is out of question. Satisfaction stimulates loyalty, productivity, efficiency, but all these factors cannot depend only on the employer, thus it is the place where personal employee motivation arises (Tiejen &Muyers 1998). Motivation serves as a driving tool for the action, as an incentive for changes. To be motivated means to be driven by internal forces for achievement (Ryan & Deci 1999). Nevertheless, the authors differentiate extrinsic and intrinsic types of motivation. Intrinsic motivation presupposes action performance with no aim of achievement except for pure interest, while extrinsic motivation is based on the anticipation of consequences (Ryan & Deci 1999). The studies of motivation evolved throughout centuries as the concept of motivation achieves exceptional importance in psychology There exist two approaches in the study of the motivation theory. The first approach is based on the exploration of human basic needs which serve the main motivation for any human`s activity, and therefore, their job. A. Maslow, F. Herzberg, and D. McClelland can be considered apologists of this approach. In 1943 American psychologist Abraham Maslow extended the concept of motivation by creating his pyramid of needs. He divided basic human needs into five categories and disposed them in a certain hierarchy. In this hierarchy physiological needs (meal, water, accommodation) formed the bottom, while higher individual needs (self-actualization, self-expression) were located on the top of the pyramid. Maslow regarded a human as "animal, that constantly wants" something. When the necessities of the lower level are satisfied even partly, a man begins to move to satisfaction of needs of other levels of the hierarchy. Physiological needs are necessary for a survival. They include meal, water, defense, rest, sexual necessities. Social needs include health, property, employment, recourses. Love and belonging needs presuppose friendship, sexual intimacy. Esteem needs mean personal achievements, competence, and respect from surrounding, confession. Needs of self-expression, self-realization are located on the top of hierarchy (Maslow 1943). The needs of higher levels of Maslow`s motivation theory gained special significance with economic relations development and perfection of management. The representative of this theory is David McClelland. According to the statement of McClelland (1987) the needs of higher level consist of three components: need of success, need of power, need of appraisal. Success is regarded as not only the need for appraisal from the colleagues, but also as the personal achievements from activity, as willingness to participate in decision-making process, and the necessity to bear responsibility for it. Aspiring to power is not only about ambition but concerns ability of man to work successfully on different levels of management in organizations, and the need of confession is the ability to be an informal leader, to have opinion and to be able to convince the rest in his rightness (Mcclelland 1987). Herzberg (1966) tried to determine the significance of material and non-material factors for motivation. He divided motivators into two categories: hygienic factors, which are connected to self-expression, human needs, and working environment and are essential for any job. Presence of these factors do not increase job satisfaction or motivation but if they absent the work results deteriorate. Company`s policy, working conditions, payment, internal relationship, fringe benefits, the degree of work control are the hygienic factors. Among the number of motivators the following were distinguished: success, possibility of promotion, results appraisal, responsibility level, creative growing. The second group is related to the specificity of work and is dependent on motivation The second approach to motivation theories is based on the concept of justification. It is related to division of labor among employees and the choice of peculiar style of behavior for concrete goals achievement. Vroom`s theory of expectation, the theory of justice appeal to this approach. According to Vroom (1988) needs are not the only driving force for human motivation as the choice of behavior is also significant. Employees behavior is usually dependent on several factors: employer`s stimulating behavior, employee`s behavior in case of probable benefits, employer and employee common behavior in case of work improvement, employer`s behavior regarding possible bonus. According to the theory of justice the employee`s performance is evaluated on the basis of comparison his achievements and the bonuses received with the other employees performing the same kind of work. The need for the expatriates’ employment has appeared recently with the development of global markets development. Expatriates are regarded as the source of experience and expertise and an optimal way for the company knowledge and skills transfer (Romero 2002). It is not for the reason that certain regions lack competent workers, it is rather for the necessity to share common knowledge and to view common company problems from different perspectives (Adler 2008). Expatriates mostly perform supervisor`s, mentor`s task in relation to the employees of the subsidiary. Expatriate from the historical perspective was perceived as a manager of higher hierarchy connecting subsidiary to the Headquarters (Bonache & Zaraga-Oberty 2008). Romero (2002) defines an expatriate as an employee with competitive level of knowledge, loyal to the company who is aimed to share experience with foreign subsidiary temporarily working there. Nevertheless, the profile of the expatriate has changed with the fast pace of globalization and today more and more workers are regarded as self-initiated expatriates. They aim is to work in international surrounding, receive certain experience, learn languages, get higher salary (Bonache & Zaraga-Oberty 2008). Expatriates pass through a certain cycle while being employed by the foreign companies. Understanding and even forecasting of probable complications, which arise during period of adaptation can shed light on the subject of expatriates’ motivation. It is possible to outline the following stages of expatriates’ employment: pre-departure state, connected with a selection process, company training period, the employment and the stay, and, in most cases, return to the permanent working place. The pre-departure stage is pivotal for the whole process of expatriation as during this phase the choice is made by both the employee and the employer (Black & Gregersen 1999). Thus, it is important for the employee to understand his motives, expectations, and goals, and for the company to provide the employer with all necessary information. While the acceptance of the job offer is completely dependent on the expatriate, the selection process and the training period are the company`s tasks. It is important to find out the motives of expatriates leaving their countries, work places, homes. Wages and special benefits can attract possible employers but they are not sufficient for all (Cohen 1977). Nevertheless, the decision of most of the expatriates can be explained by intrinsic needs, dictated by what Maslow defined top needs of self-actualization and growth. (Brooks 2006). According to Richardson & Maccena (2001) it is possible to divide the expatriates into several groups according to the driving force, motive of their movement. First group is concentrated on the exploration of a new country and culture, second group escapes from unsatisfying life at home in a search of better opportunities for personal and professional life. The third group members accept job offer mostly because of payment, while the last group has intention to build prominent carrier overseas. However, in most cases the expatriate has two or more motives, and one of them can be leading. The employer is completely responsible for the selection process of the successful candidate. Several psychologists have outlined the portrait of the potential expatiate, though there still remain arguments regarding the most valuable qualities of the expatriates. Professional skills are extremely important, and the first stage of selection is done only from the perspective of expertise and knowledge. However, for successful outcome of expatriation it is necessary to choose the right candidate with right qualities (Katz & Seifer 1996). The desire to cope with the challenging issue of expatriation along with ability to work in team, flexibility, tolerance are the main factors influencing successful candidates choice (Katz & Seifer 1996). All these factors were included in the term originated by Temper & Tray(2006), which emphasized the necessity of having intrinsic motives and so called Cultural Intelligence, which means strong desire, energy, attention. Sims & Schraeder (2004) describe the perfect expatriate as that having patience, endurance, and certain maturity apart from motivation. Adequate training is vital part of adaptation for expatriates though many companies seem to spend the money on it quite reluctantly. The accent should be put on language studies if needed, cultural awareness courses, psychological help in case of stress, and certain workshops (Romero 2002). Nauman (2003) suggests that setting realistic expectation regarding future job and gaining as much information as possible will save the expatriate from probable disappointment. Upon arrival to the country, the expatriate faces his choice directly. In this stage it is important for him to receive realistic support from the company. That is the phase when the employer should take into account all extrinsic motivators of the worker (Richardson & Maccena 2002). Particular attention is drawn to the ability of the company to provide housing, arrange transportation, and deal with family members if any (Sims & Schraeder 2004). Moreover, it is important to keep the communication between the headquarters and the subsidiary where the expatriate is staying. Lack of attention and control may result in decrease of motivation as expatriate may feel not as important as he was supposed to be. It is crucial to arrange telephone, video conferences between the headquarters and the expatriate on regular basis. During such communication, it is possible to discuss possible problems, receive additional instructions (Allen & Allvarez 1998). Additional possibility to contact with HR of the subsidiary company may alleviate first period. As for the possible demotivating factors influencing expatriate efficient adaption, it is possible to single out poor family adjustment, vague and irrelevant job tasks, lack of social support. In such a stressful new environment expatriate`s family serves the key component of stabilization and normal adaption. Failure at work is in most cases can be applied to family situation as some of the employees have to get separated with the families, while others fail to provide family members with necessary conditions ( work for spouses, housing, school for children). Thus, during selection the company must pay special attention to the family status of the future candidate and probably from 2 equally experienced and skilled workers choose the one who is single (Cohen 1977). Nevertheless, successful family adjustment can become a significant motivator to a new employee. Therefore, for the hosting company it would be extremely beneficial to take care about the family, at least initially (Adler 2006). Lack of sufficient social support serves as a demotivating factor for the expatriate. When the new staff member finds himself in unfamiliar stressful situation he might feel anxious, unsatisfied, and depressed (Richardson & Maccena 2002). According to Wang & Canugo (2004) the factors of social surrounding and job satisfaction as well as motivation are interdependent. Most expatriates are demotivated at realizing that the environment of their working place is somehow hostile. Employees who used to receive emotional feedback from relatives, friends, and colleagues realize their inability to perform work just for salary or promotion. Though the influence of this factor is generally diminished during pre-departure stage, it gains additional value on site. The company should take into account such important information regarding the employee and assist in adaptation. Language courses, corporate vents, corporate psychological help can be the solutions to these problems and improve motivation (Wang & Canugo 2004). Globalization has created a number of new concepts and processes in the human resource management, and the speed of changes in this sphere is incredible. Expatiate is the employee of the 21st century who due to his expertise and experience has opportunity to work in a foreign country. As any new the concept of expatriation continues to reveal its consequences on the human. 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Wang, X &Kanungo, N 2004, Nationality, social network and psychological well-being: expatriates in China, International Journal of Human Resource Management, vol. 15, issue 4 Read More