b) Process Theories: These theories explain the thought processes. These thought processes guide certain behaviors through decisions and action to be applied in response to satisfy certain need. Two significant approaches are Vroom's expectancy theory and Adam's equity theory. These theories are helpful in understanding human action that responds to their needs. However it fails to understand continuous people behavior in a certain way.
c) Reinforcement theories: These theories identify the rationale behind people's behavior and examine the influence of consequences on behavior and suggest that people behavior is directly related to the consequences of their action. In the reinforcement theories the law of effect states that behaviors with pleasant consequences are more likely to be repeated then the behaviors with unpleasant consequences.
Rewards systems are designed in organizations to encourage employees to work for the attainment of short- and long-term goals. Reward system can take the form of salary increase; gain sharing, profit sharing and employee stock ownership. In many organizations employees have given liberty to choose the reward system for them. Brief perspective of these theories is discussed below with their necessary implication on the case (Baumeister, 2004).
McClelland's Acquired-Needs Theory
McClelland's acquired need theory was developed by psychologist David C. McClelland. It states that needs are acquired or learned through life and some people are more oriented to certain needs than to other needs. McClelland had identified three types of need in particular:
i. need for achievement
ii. need for affiliation iii. need for power
Implication
In the diversified cultural environment managers need to understand what needs employee pursue to fulfill from their job. If their specific need is fulfilled then they function best for the development of the organization. People who exhibit high level of need for achievement should be involved in the creative team and new product development team. Managers can stimulate motivation in employees with strong need for affiliation by creating the work environment that emphasize social teaming and foster team work. There are two type of power influenced on individual need. One is the personal power and other is the institutional power. People showing need for personal power will work for their own sake however people with institutional power have the concern for organization and will work hard and even make compromises to solve organizational problems. Therefore, managers need to identify people with institutional power and place them on managerial positions because they will be more effective then people with need for achievement (McClelland, 2008).
Adam's Equity Theory
Equity theory specifies that employees in an organization are primarily concerned with being fairly treated in relation to others. This theory was first given by J. Stacey Adams. The equity theory in brief postulates that people compare their ratio of their input like the number of hours work, their experience or training and their outcomes like promotion, salary and leaves with the ratio of inputs and outputs of people functioning in similar capacity (Carver, 2001).
Implication
Company like Ford when operating in global market place where teams are components of people with different cultural backgrounds having different set of needs and values, managers in order to motivate employees towards team efforts and productivity should encourage employees and make them assured that their efforts will lead to performance, that performance will lead to rewards and that these rewards are attractive for the employees. If employees are satisfied on this notion that others are being rewarded according to their input in the organization then they are more likely to be motivated and enthusiastic in achieving their objectives (Mintzberg, 1990).
Conclusion and Recommendation
Charismatic Leadership for managing across cultures
Modern researchers and management gurus are conducting studies that widen the horizon of leadership from the trait, behavioral and contingency theories to more transactional and transformational leadership. Some of the roles performed by a leader in an organization in his/her capacity of being manager are:
i. Interpersonal Role: Managers must take initiates in performing formal interpersonal duties towards their employees. Greeting them formally, being responsible for the duties of their work groups, influence their actions through motivation and leading direction and lastly making a collaborative effort in building strong relation with the employees that drives their actions towards the achievement of organizational objectives (Robert, 1990).
ii. Communication and information passing role: Managers are concerned to be the brain center...
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