Equity Sensitivity and Cultural Factors in Multicultural Workforces

Introduction and Theoretical Model

Research in organizational settings has long demonstrated the impact of cultural factors on work motivation (Maslow). The current study develops a model of cultural factors and work motivation—more specifically, equity sensitivity—in a concerted effort to understand worker motivation in the context of a multicultural workforce. Past research provides the foundation for this academic investigation, demonstrating the evolution of academic theories supported by ongoing empirical research. The research is designed to demonstrate the impact of a multicultural workforce on the ability of human resource managers to successfully motivate employees.

This paper examines the synthesis of theoretical and empirical research pertaining to the equity sensitivity construct and an actual multicultural organizational setting, and explains the theoretical model underpinning the study. The review also discusses work motivation theories and cultural factors.

The globalization of the workforce creates an environment in which cultural differences produce unique working environments within multicultural organizations. The ability to equitably reward and motivate employees continues to challenge American-based organizations (Henderson, 1994). Current research explores the evolution of the workforce both domestically and globally (Chhokar, Zhuplev, Fok, & Hartman, 2001; Hofstede, 2001; Wheeler, 2002). In the fast pace of current business operations, organizations are increasingly faced with the challenge of attempting to gain a strategic advantage through employee motivation (Schein, 1996). The expanding global economy has led to an increasing emphasis on understanding cultural values and their impact on human resource management throughout the world.

To implement employee motivation strategies properly, firms must understand how employees from various cultures are motivated in the workplace (Hofstede, 1997; Trompenaars, 1998; Vladimir et al., 1992). Understanding and implementing cost-effective yet successful employee reward programs is critical to organizations attempting to recruit and retain a culturally diverse workforce. Reward systems that are very effective in motivating workers in one culture might be met with hostility, perceptions of inequity, and dissatisfaction in an environment with differing cultural values (Wheeler, 2002). This unpredictable response to similar reward systems by employees within the same organization necessitates the need for firms to determine why individuals respond differently to similar rewards.

The globalization of the workforce is not limited to one industry. However, certain fields—such as healthcare—have experienced a dramatic increase in culturally diverse employees. One reason for this is the shortage of nurses in the domestic workforce and an inability to meet the medical needs of an aging population. This growing demand is creating a dependency on international workers within American hospitals. One major challenge that organizations face is the development of reward systems that are perceived to be fair, equitable, and distributing rewards in accordance with employee beliefs about their own value to the organization (Ramlall, 2004; Henderson, 1994; Fine, 1996). An equitable reward system has the potential to stabilize an organization's workforce while improving the organizational commitment of employees (Lust, 2003; Heneman, 2003).

Research in social psychology and in human and work motivation supports the contention that culture shapes beliefs, values, and perceptions (Henderson, 1994; Fine, 1996). Research also suggests that people of different cultures cannot be expected to exhibit similar behavior patterns or react to stimuli similarly in an organizational context (Mueller and Clarke, 1998).

To attain high levels of performance, employers depend on their employees to perform at levels that positively affect the bottom line (Wiley, 1997). Thus, employers must understand what motivates workers in an organizational setting. Rather than attempting to adapt employees to existing reward systems, organizations must realize that reward systems need to be adapted to the needs of the individual employee. This information, combined with the potential predictability of equity sensitivity, is an extremely valuable tool in the recruitment and retention battle in industries facing a shortage of qualified candidates.

Among theories of motivation, equity sensitivity is ideal for exploring the context of a multicultural workforce due to its combination of cultural factors and work motivation. Previous studies have explored this area; however, many of these studies specifically dealt with a student population and/or foreign countries as opposed to investigating a multicultural, professional workforce in an American organization (Chen, 1995; Chhokar et al., 2001; Wheeler, 2002). The context of prior research investigations is important due to the influence that environmental settings have on the behaviors of study participants. For instance, students may respond differently to certain reward situations because they prefer academic rewards rather than economic rewards; on the other hand, an individual in the workforce has a different set of goals and thus responds differently compared to a student.

Work Motivation Theories

Maslow's Hierarchy of Needs

A major theorist in the area of motivation was Abraham Maslow, who contended that human beings possess a hierarchy of needs. Within this hierarchy, there are five groups of needs that must be met (Maslow, 1943). The most primitive needs are physical—food, water, shelter, and so on. The next set of needs deals with the safety of an organism's surroundings; people have a need to be free from inherent danger. Maslow also contends that people have a need for love and attention (Maslow, 1943). In addition, Maslow asserts that living things have socialized needs. Last in the hierarchy is the need for self-actualization (Byrne and Lindgren, 1971).

Maslow explains that the motivation of human beings is dependent upon the fulfillment of these five needs. This hierarchy is the foundation of most motivation theories. While the first four needs deal with biological and social issues (Byrne and Lindgren, 1971), the final need for self-actualization is used most often in developing reward systems for employees.

Goal Setting

Edwin Locke has also been a preeminent theorist in the area of motivation as it pertains to workplace and educational environments. Locke's theory of motivation asserts that goal setting plays a large role in worker motivation. Early goal-setting theories contend that "goal setting theory is based on the premise that much human action is purposeful, in that it is directed by conscious goals" (Drillings and O'Neil, 1994). Locke's theory asserts that because human beings have the ability to reason, they have the ability to set goals and pursue long-range purposes (Locke and Latham, 1990).

Team Motivation

Lawler asserts that motivation can change when individuals are placed in a team setting. According to Lawler, a team is defined as "a distinguishable set of two or more people who interact, dynamically, interdependently, and adaptively toward a common and valued goal/objective/mission; each of whom has been assigned specific roles or functions to perform, and who have a limited life-span membership" (Salas et al., 1992). Lawler contends that team motivation consists of team spirit, interpersonal skills, leadership, and communication. Knowledge of what motivates teams is essential to human resource managers because many organizations rely on teamwork to achieve organizational goals. According to Katz and Kahn (1978), three main factors motivate teams: external rewards, rule enforcement, and internalized motivation.

Intrinsic and Extrinsic Motivation

Many theories make predictions about individual motivation to perform in organizations (Harder, 1992). The unique differences among individuals continue to make the motivation of employees an ongoing challenge for theorists and organizations dealing with worker motivation. These theories have been predominantly divided into two broad classes: intrinsic and extrinsic motivational theories. A person is intrinsically motivated if he or she performs an activity for no apparent reward except the activity itself (Turnage and Muchinsky, 1976). Extrinsic motivation refers to the performance of an activity because it leads to an external reward. The equity sensitivity construct is derived from the original equity theory—which is intrinsic in nature—and is utilized due to its predictive value. This construct provides additional clarity to equity theory, allowing it to function as a substantive tool for organizations and human resource executives. In addition, the equity sensitivity construct provides insight into the various responses of individuals within similar reward systems.