Psychological Needs and Employee Motivation

Organizations are connected through a vast network of trade relationships. These relationships involve the strategic reliance on export and import of merchandise, shared commercial services, and intermediate goods that constitute global value chains – all of which have displayed a growth trend in recent years.

Trade is spread across many different nations and cultures, with developing economies accounting for forty-two and thirty-five percent of world trade in merchandise and services in 2012. Trade relationships necessitate coordination between organizations and across borders. Coordination hinges on successful interaction of a motivated and committed international workforce.

Most executives report that working across borders (such as teams in different geographies) has increased in recent years, and that likewise, international reporting lines have also become more common. The same executives report that the primary focus of their Human Resource function has been and will continue to be retaining a committed workforce.

However, if current trends continue analysts project a global shortfall of medium- and high-skilled labor in the coming years. Therefore for organizations to remain competitive in the global economy an understanding of individual, national, and cultural differences related to motivation will be critical.

Establishing effective reward systems demands an understanding of the effect of intrinsic and extrinsic motivators on employee attitudes. Early theories of motivation viewed extrinsic and intrinsic rewards as additive. It was recommended to design reward systems that facilitated both intrinsic and extrinsic motivators, which would lead to eventual greater satisfaction and performance.

More recent research suggests that the interaction between intrinsic and extrinsic incentives is more complex. We’re investigating the interplay between intrinsic and extrinsic incentives as they’re impacted by cultural values.

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