Effective Leadership and Motivation in Global Teams
Motivating a Culturally Diverse Team in an MNE
Suppose that you work for a Multinational Enterprise (MNE) as the manager of a culturally diverse team. Briefly describe how you would go about achieving the maximum degree of motivation among your team members. Please be sure to include in your answer at least three of the following concepts: recognition, understanding tendencies, adapting your approach, flexibility, communication, loyalty, and commitment.
Firsthand, as a manager, I have an obligation to get to know the members of my work team and to let them know that I am interested in their contributions and opinions. Since we are a multicultural group, the beliefs and ideologies of everyone must be taken into account. Therefore, an environment where tolerance and respect prevail in the communication and treatment among all members is essential.
It is also important to highlight those who have made a difference through their performance, rewarding them with incentives such as bonuses or vacation periods. This encourages them to remain effective in their work and, at the same time, increases the loyalty and commitment of team members to the company. Supporting their growth and training within the company helps them feel supported and expand their knowledge.
All of this requires being open to change with a flexible mindset. Belonging to different cultures can be a great challenge, but we must learn to accept everyone equally. If the work environment is adapted so that all members feel comfortable—for example, as seen in a class example where there were prayer rooms for those who practice the Muslim religion—then as a manager, we can create a healthy and prosperous environment and relationship that will undoubtedly yield very effective and excellent results. This includes providing meaningful recognition for achievements.
Perceived Characteristics of Leaders vs. Managers
Leader Characteristics
- Have a future vision
- Bring you to new horizons
- Motivate and inspire
- Give recognition for a job well done
- Deal with ambiguity
- Are decision-makers
- Focus on effectiveness
- Earn respect through actions
- Set new standards
- Do the right things
- Often have innate characteristics
Manager Characteristics
- Have a present vision
- Take care of where you are
- Oversee and supervise
- Point out flaws to improve upon
- Deal with complexity
- Are fact-finders
- Focus on efficiency
- Are given immediate authority by the organization
- Follow company objectives
- Do things right
- Can learn necessary skills
Beliefs of Theory X, Y, and Z Managers
Theory X (Douglas McGregor)
- Employees must be coerced to do their jobs.
Theory Y (Douglas McGregor)
- Physical and mental effort at work is natural for people.
- Imagination, ingenuity, and creativity are characteristics that exist in the general population.
- Under proper conditions, the average person will learn to accept and seek responsibility.
Theory Z (William Ouchi)
- People strive to be part of a greater whole.
Are Theories X and Z Favored Over Theory Y?
Statement: Theories X and Z are currently the favored theories among managers and leaders, while Theory Y has fallen out of fashion.
Answer: False.
Information Exchange in Leadership Styles
Participative Leader
The interaction and exchange of information and influence is multidirectional: between the leader and subordinates, and also among subordinates.
Paternalistic Leader
The interaction and exchange of information and influence is bidirectional: between the leader and each subordinate.
Key Management Methodologies
Management by Objectives (MBO)
Developed by Peter Drucker, MBO includes a process for continually monitoring performance and progress. (True)
MBO is a process that:
- Allows a superior and their subordinate to jointly identify common goals and responsibilities.
- Provides for the setting of Key Performance Indicators (KPIs) and criteria for measurement and comparison of an employee’s actual performance to established standards.
- Allows for an organized and productive work environment.
Management by Walking Around (MBWA)
MBWA is useful in transmitting company values face-to-face between managers and employees. (True)
Principles of Total Quality Management (TQM)
Key principles of TQM, associated with W. Edwards Deming and Kaoru Ishikawa, include:
- Concurrent Engineering: Utilizes inter-functional teams to develop new products.
- Statistical Quality Control: Employs statistical methods to monitor and control quality.
- Employee Empowerment: Gives individuals and teams the resources, information, and authority needed to develop ideas and effectively implement them.
- Idea Generation: Uses techniques to streamline operations and eliminate waste.
Factors in MNE Decision-Making Delegation
The delegation of decision-making authority from an MNE’s headquarters to a subsidiary depends on several factors:
- Size of the company
- Amount of the investment under consideration
- The level of risk involved
- The need for coordination
- The experience of the subsidiary’s team
- The efficiency and effectiveness of the decision-making process
- Cultural differences between the headquarters and the subsidiary
The Decision-Making Process
A typical decision-making process involves multiple steps that are sequential, iterative, and contain multiple feedback loops. (True)
Statement: The critical final step of the decision-making process is a control step that involves evaluating actual results.
Answer: False.
The final step involves evaluating results in relation to plans/objectives and determining what action, if any, to take. This may include deciding if it is necessary to make a new decision or start a new process.
Control Challenges in MNE Decision-Making
Making decisions that impact the integrated or coordinated operating units of an MNE can present control challenges or conflicts that might originate from:
- Conflict between the objectives of the overseas operation and the MNE.
- Disagreements in the objectives of joint venture partners and corporate management.
- Variances in the degree of experience and competence among managers of subsidiaries.
- Basic philosophical disagreements in the objectives and policies of international operations due to cultural differences.
Cultural, Motivational, and Commitment Factors
Cultural Factors in Team Effectiveness
Cultural factors that influence people’s behavior will logically influence the effectiveness of working teams, their managers, and the decisions they make. Examples include:
- Acceptance of or resistance to individual rewards and recognition (e.g., “employee of the month”).
- The level of comfort toward risk.
- Different approaches to motivation.
Core Ideas of Motivation
- Motivation is deeply personal.
- People are motivated to pursue the goals they themselves value.
- It is relevant for achieving a sustained competitive advantage for the MNE.
Drivers of Employee Commitment
- Effective management
- Clear, multidirectional communication
- A positive work environment
Key Motivation Theories Explained
Maslow’s Hierarchy of Needs
Statement: According to Maslow’s Hierarchy of Needs Theory, a satisfied level continues to motivate.
Answer: False. Once a need level is satisfied, it is no longer a motivator.
Herzberg’s Two-Factor Theory
- Hygiene Factors: These are necessary to overcome dissatisfaction (e.g., salary, working conditions). (True)
- Motivation Factors: These are required for satisfaction to occur (e.g., achievement, recognition). (True)
Conflicts, Values, and Congruence in Organizations
Sources of Cross-Cultural Conflict
Potential conflicts in cross-cultural business settings can arise from:
- Distinct management styles
- Different ethical views
- Different interest groups
The Importance of Organizational Values
It is critically important for organizations that the values of their people are aligned and congruent with the values of the organization. (True)
The values of an organization:
- Are the backbone of its organizational culture.
- Influence the entire process of choice in decision-making.
- Set limits for ethical behavior in decision-making.
Outcomes of Value Congruence
Value congruence (the alignment of employee and organizational values) leads to:
- Trust and communication
- Satisfied and productive employees
- Organizational identification and engagement of employees
- Committed, loyal employees who intend to stay long-term