Leadership and job motivation in international corporate governance

Cultural influences on the design of incentives and employee benefits

Seminar Paper , 2014 , 19 Pages , Grade: 1,3

Business economics - Business Management, Corporate Governance

For today’s globalized companies, the problem of how to effectively motivate staff is becom-ing more and more vital. During the last decades, a vast number of incentive schemes and bonus plans have been developed by researchers and are applied in daily business. By now organizations have realized to appropriately view employee rewards as a kind of key investment, rather than one of their largest expenses. But why do people put so much effort in researching and ascertaining incentive systems? Companies want to ensure that good and well-trained employees do not leave the company and they are desperately trying to avoid the recruitment of new professionals. To reach these goals companies should use the inter-dependencies of linking rewards, results, and employee motivation, which can be one of the most value-added human capital strategies (Chen/Hsieh 2005, p. 155).

In the meantime the process of globalization is accelerating this development. The growing demand for highly skilled employees is intensifying the competition for workers in certain specialized industries and regions. On the other hand companies are expanding to new markets and countries in order to secure future business success. This dynamic has a direct im-pact on the value employers are placing on retaining employees and increasing employee productivity as well.
The key questions to be answered in this context are: If an organization moves to multinational areas, do any problems in designing rewards arise due to different cultural under-standings? And if so, what is seen as motivating in specific cultural environments and what can be seen as non-motivating in multinational firms and international joint ventures?

In order to answer these questions I will justify the use of rewards and incentives based on a description of frequently used work motivation theories. Additionally I’m going to examine the scientific models for a certain ‘country-compatibility’. In a second step I will go into more depth by defining and differentiating between types of rewards. Furthermore I’m going to put my findings into a global context by introducing a theory which involves the influence of culture or cultural variations on organizational dynamics and employee performance.

Table of Contents

• 1 Introduction
• 2 Motivation Theories and their Country-Compatibility
  • 2.1 Herzberg's Two-Factor Theory
  • 2.2 Maslow's Hierarchy of Needs
• 3 Application of Reward Systems
  • 3.1 Different Types of Reward Programs
  • 3.2 Incentive Systems Applied in Different Cultures
• Conclusion

Objectives and Key Themes

This work explores the complexities of employee motivation in a globalized corporate environment, particularly focusing on the impact of cultural differences on reward systems and incentive design. It examines how to effectively motivate staff across various cultures and geographical locations. The main objective is to understand the challenges and opportunities associated with designing and implementing effective reward systems that resonate with diverse cultural values and preferences. The key themes explored include:

• The influence of culture on employee motivation and the design of incentive systems.
• The application of motivation theories in international contexts and their country-specific compatibility.
• Different types of reward programs and their effectiveness in various cultural settings.
• The role of cultural understanding in achieving employee retention, satisfaction, and performance.
• The challenges and best practices for managing and motivating employees in multinational organizations.

Chapter Summaries

• Chapter 1: Introduction: This chapter sets the context for the study by highlighting the increasing importance of effective employee motivation in a globalized business landscape. It emphasizes the need for organizations to understand and cater to cultural differences when designing reward systems and incentive structures. The chapter also outlines the key questions that will be addressed throughout the work, focusing on the impact of cultural variations on employee motivation and the effectiveness of different reward programs.
• Chapter 2: Motivation Theories and their Country-Compatibility: This chapter delves into two prominent motivation theories – Herzberg's Two-Factor Theory and Maslow's Hierarchy of Needs – examining their relevance and limitations in different cultural contexts. It explores the challenges of applying these theories universally and highlights the need for country-specific modifications to ensure effective motivation. The chapter discusses various studies and research findings that demonstrate the potential limitations of these theories in cross-cultural settings.
• Chapter 3: Application of Reward Systems: This chapter examines the different types of reward programs commonly used by organizations. It explores the various ways in which reward systems can be tailored to specific cultural environments to maximize their effectiveness. The chapter also analyzes the influence of cultural factors on the design and implementation of incentive systems, highlighting the importance of understanding cultural values and expectations when crafting reward strategies.

Keywords

This work centers around the intersection of leadership, employee motivation, and cultural influences within international corporate governance. Key concepts explored include: cross-cultural management, reward systems, incentive design, employee benefits, cultural variations, motivation theories, country-compatibility, globalization, and human capital management. It investigates the application of various theories like Herzberg's Two-Factor Theory and Maslow's Hierarchy of Needs within a multinational context, analyzing their relevance and limitations in diverse cultural settings.

• College: University of Applied Sciences Wildau (Wildau Institute of Technology)
• Course: Aviation Management 2012
• Grade: 1,3
• Author: Diplom-Kaufmann Sebastian Wagner (Author)
• Publication Year: 2014
• Pages: 19
• Catalog Number: V272860
• ISBN (eBook): 9783656651956
• ISBN (Book): 9783656694045
• Language: English
• Tags: Leadership, Motivation, Maslow, Corporate Governance, Incentives, Benefits, Employees, Mitarbeiter, Motivation Theory, Cross Cultural, Incentive Systems, Reward Program, Herzberg