Free Essay

Self Determination Theory

In:

Submitted By Dominicanpapi101
Words 2068
Pages 9
Self-Determination Theory

312033788Work2218Assig1S12012
Word count: 1648

Motivation. A word used often to describe a compelling force that drives people to participate in task and activities such as; a marathon, diets, and writing case reports. But, where does this motivation stems from? To understand where, we must understand? And how can we sustain this drive in every aspect of our lives?
This report will cover self-determination theory and how it relates to an associated case study. Other theories and examples will be given along the way, but the focus is on understanding what factors play a role in motivating people to act.
Self-Determination Theory is the investigation of people’s inherent growth tendencies and innate psychological needs (Deci & Ryan 2000, pp 68), and its distinction between autonomous motivation and controlled motivation (Gagne and Deci 2005, pp. 333). Self-determination theory separates extrinsic and intrinsic motivators to examine in what ways can intrinsic motivation be sustained and applied to tasks that are displeasing. However, the conditions for personal growth, well-being, and social development must be met. Through research the universal necessities needed to promote the perfect conditions are autonomy, competence, and relatedness (Deci & Ryan 2000, pp 68). Self-determination theory could be paired with Cognitive evaluation theory which focuses on external and internal factors, but is limited to sonly those two. Self-determination theory allows extrinsic motivation and the autonomy continuum, which contain four levels of extrinsic motivation which are in a quasi-simplex pattern, positively correlating the closets and negatively correlating the furthest. These extrinsic fields include external regulation, introjected regulation, identified regulation, and intergrated regulation, where the later 2 are more internally motivated. To be autonomous is to be self-governed, to have competence is to be believed in and trusted, and have relatedness is to have a relationship with a significant other. These are the foundations, the universal necessities required to achieve well-being, and autonomous intrinsic motivation.
The case study begins with examining Madeline, the ward supervisor. Madeline feels the need to have supervised and regulations a lot of what the nurses do. This creates a controlled rather than an autonomous motivated environment. Being ward supervisor she is put on pressure by higher management to move out patients, which in turn can affect her to put pressure on her staff. This further creates a non-autonomous environment focused on removal of patients rather than. For certain activities like swapping of shifts, she felt obligated to arrive early and stay to verify that the nurses handed over properly at the end of their shifts. Through her display of professionalism, she wouldn’t allow idle chat and would also check along with the doctor to see if their records were up to date. Within self-determination theory, her interpersonal style of supervision deters autonomous intrinsic motivation. Her overbearing supervision could be interpreted as a lack of competence towards her staff. This lack of competence deter self-motivation, mental health and well-being of her staff, for it is a universal necessity; along with autonomy, and relatedness.
Margaret is one of the nurses at the hospital. She has an autonomous nature and is intrinsically motivated, but feels unease being constantly supervised by Madeline (controlled environment). Margaret is given praise, in secret, by Madeline for her very good work and compliments from patients (case study). In Gagne and Deci (in Deci, Koestner, & Ryan 1999, pp. 332) laboratory experiments show positive feedback enhances intrinsic motivation, but given the controlled environment, it had no or negative effect on Margaret’s intrinsic motivation. Margaret offers suggestions towards Madeline about bettering the ward with programs used in previous hospitals. These actions of formulating innovations exemplify an organizational citizen who behaviors that are not related to basic job functions but do promote organizational effectiveness (Gagne & Deci 2005, pp. 351).
The last of the character is Molly, the older nurse. We can assume molly is intrinsically motivated to work based on (Kooij, Lange, Jansen, and Dikkers 2008(in Lord 2004) pp. 368) stating the motivations of elderly workers and their choice to continue work is primarily they enjoy working, derive satisfaction from using their skills, and gain a sense of accomplishment from the job they perform. Molly is a bit inattentive to certain task, assuming they are uninteresting. (Gagne & Deci 2005, pp. 347) explains with mundane tasks there is no difference between using autonomous or controlling motivation(Gagne & Deci 2005, pp. 347) therefore Madeline’s controlled environment shouldn’t undermined Molly’s autonomous intrinsic motivation. Molly is also suspicious with newer treatments and methods employed by younger nurse, which positively correlates with (Kooij, Lange, Jansen, and Dikkers 2008 (in Kanfer and Ackerman 2004), pp.379) findings that older workers will have a lowered motivation when it comes to performing new tasks. The case states that she has taken instructions towards prioritize her work task without any resistance. Does that indicated that she view the instructions as vital to her job? Compared to the earlier statement she seems to be presenting introjected regulation, for she has complied with the instruction, but still hasn’t internalized to where it aligned with her internal morals.
The staff, Margaret and Molly, holds dissatisfaction towards her interpersonal controlling style. If left unchanged, they will continue to bring down the morale of the other nurses. But is the cause Madeline’s controlled environment approach, or also taking the way they extrinsic motivation is being distributed. The case briefly mentions that work, and pay rate are set out in the NSW Nurse Award. Assuming the awards are predetermined this could eliminate the external factor of competition. Research in cognitive evaluation theory has shown decrease in intrinsic motivation given extrinsic factors such as competition or evaluation. Gagne and Deci (in Amabile, Goldfarb, &Brackfield, 1990; McGraw 1978, pp. 332). This would not deter intrinsic motivation, but the dissatisfaction of the nurses and the continuing absent of an autonomous environment can.
Using elements of self-determination theory, cognitive evaluation theory and other relating to social perception of age, we manage to dissect the nurses. Now, to use elements of self-determination theory increase the intrinsic motivation and wellbeing of Madeline and her staff. (Gagne & Deci (in Deci, Connell, and Ryan 1989(, pp. 342-343) researched showed that when managers where trained to be more autonomy supportive, their subjects became more trusting of the organization and displayed more positive work related attitudes. If Madeline receives training to alter her control managerial style to a more autonomy supportive one, then she will be trusted more. If she is trusted more than she will be able to develop relatedness with the other staff members. This also tends to the staff’s universal need of self-determination theory. Madeline also can reduce her stress and pressure from the war by confining in her nurses or colleagues. In Stone, Deci, and Ryan 2009(in Deci, Connell and Ryan 1989, pp. 85-86) the experiment had dissatisfied, controlling, and pressured (accountable) managers sharing their problems and strategies with one another, which resulted in functioning as a productive team. This gave way to a more autonomy support and empowerment. This could also assist in creating the autonomous environment that will increase the intrinsic motivation of the staff. People are more securely attached to those who met their universal needs of self-determination theory Patrick, Knee, Canevello, and Lonsbary 2007 (in La Guardia et al., pp. 436). Having a more autonomous supportive environment allows people like Margaret to strive for Madeline will be more supportive of her suggestions that could benefit the ward. (Gagne & Deci 2005, pp. 345) mentions how managerial autonomy support, where a manager acknowledge their subordinates’ perspectives, providing relevant information in a non-controlling way, and encouraging self-initiation was associated with employees’ being more satisfied with their job. In conclusion, giving her a sense of achievement and more incentive to strive to do more towards her job rather than what is requested. Margaret’s patients were always well tended even if she was a little abrupt with and their families sometimes. With the new the autonomous environment, Margaret will be more autonomous, and that can transcend to the patients. For example, a study mentioned in Kasser, V. and Ryan, R. 1999, (in Williams, Grow, Freedman, Ryan, & Deci, 1996, pp. 939)in a weight-loss program for morbidly obese individuals (Williams, Grow, Freedman, Ryan, & Deci, 1996) found that patients who perceived the staff as autonomy-supportive had higher rates of attendance, developed greater self-motivation for change, and were more likely to complete the program. This will not only have great satisfaction towards her patients but also their families for meeting their universal necessitates of self-determination theory.

With Madeline’s new training in autonomous supportive approaches, she will be more relatable towards Molly. Given Molly’s disaffection towards new task or rules, Madeline can better explain to Molly why the new methods are essential to help the patients, and (Stone, Deci, and Ryan 2009, pp.81) states providing a meaningful rationale for an uninteresting task, with acknowledgement of their feelings, will intregate an extrinsic motivation. By Madeline being empathetic towards Molly for her suspicions toward the new methods, she will be prompted to alter from her ‘tried and true approach’. This suspicion can also be overcome by allowing the nurses to chat. It promotes a teamwork setting, rather than and individual one, and assuming that the nurses have the same goal, helping the patient efficiently and promptly, than this will benefit their sense of autonomy and their communication amongst the staff. When viewing teamwork (Latham and Locke 2007, pp.296) claims the sharing of knowledge and information is essential for a team to become and remain effective.
In the case report, Madeline privately praises Magaret. This task should not have been done in private and should be done more often. For example, Kooij, Lange, Jansen, and Dikkers 2008 (in Greller and Simpson 1999 2005, pp.379) claim a lack of feedback can further reduce the motivation of older employees. It was not stated if Molly was ever praised, so a positive verbal feedback would definitely raise the intrinsic motivation of any nurse, and could lead to integration of the task they were praised for. “Tangible extrinsic rewards undermined intrinsic motivation whereas verbal rewards enhanced it.” Gagne & Deci (in Deci, 1971, pp. 332)
After the intervention with Madeline, can self-determination theory really be affected in her situation? As explained above, by providing an managerial autonomous supported environment, Madeline must allow the staff the choice to intergrate these task. Will merely choice motivate the staff to do so an increase their intrinsic satisfaction with the task? Also, is it possible to overdo attention to certain nurses? For example, Margaret seems to be a very internally motivated person, and to have so much support could lead to the opposite effects of self-determination theory. This theory is good, as a theory, and only recently has it been applied to the certain work forces. Nevertheless, I do believe that self-determination theory can play a role in improving Madeline’s autonomous support, Margaret’s innovation and intrinsic motivation, and Molly’s integration of new regulations. All that’s left is to put it to the test.

References, Harvard style

* Deci, L. and Ryan, R. 2000. Self-determination theory and the Facilitation of Intrinsic Motivation, Social Development, and Well Being. University of Rochester(NY): American Psychological Association * Gagne, M and Deci, E. 2005. Self-Determination Theory and Work Motivation. J. Organiz. Behav., 26: 331–362. doi: 10.1002/job.322 * Stone, D., Deci, E., and Ryan, R. 2009. Beyond Talk: creating autonomous motivation through self-determination theory. Journal of General Management 34(3), 75-91 * Kasser, V. and Ryan, R. 1999. The Relation of Psychological Needs for Autonomy and Relatedness to Vitality, Well-Being, and Mortality in a Nursing Home. Journal of Applied Social Psychology 29(5), 935-954 * Patrick, H., Knee, C., Canevello, A., and Lonsbary, C. 2007.The Role of Need Fulfillment in Relationship Functioning and Well-Being: A Self-Determination Theory Perspective. Journal of Personality and Social Psychology 92(3) 434-457 * Latham, G. and Locke, E. 2007. New Developments in and Directions for Goal-Setting Research. European Psychologist 12(4), 290-300 * Kooij, D., Lange, A., Jansen, P., and Dikkers, J. 2008. Older workers’ motivation to continue to work: five meanings of age. Journal of Managerial Psychology 23(4) 364-394

Similar Documents

Premium Essay

Self-Determination Theory

...directly met by intrinsic strivings and goals (Deci & Ryan 1991; Ryan 1995). Those inner psychological needs are the assumed source of a genuine sense of personal welfare or eudaimonia (Ryan & Deci 1995; Ryff 1995; Waterman 1993). In contradiction, strong emphasis on reaching extrinsic aims and rewards such as bonuses, social recognition, and status can meet these basic needs indirectly and may truly distract from their implementation. Besides, extrinsic strives, when they are predominant priorities, may result in engagement of egoistic behavior of an individual accompanied with stress and pressure (Ryan 1982; Ryan, Koestner, & Deci 1991), which another study indicates to be associated with low level of vitality and well-being rather than self-determined involvement in the task (Nix, Ryan, Manly, & Deci...

Words: 988 - Pages: 4

Premium Essay

Management Case

...Bradyn Stowe Management 321 Case 3 2/4/2016 Case 3: Everest Question 1: Why do people climb Mt. Everest? - People climb Mt. Everest for a myriad of reasons. Rooted in those reasons, though, you could probably find self-determination theory. They’re looking for autonomy, mastery, and relatedness. It struck me as kind of funny how in the case study so many of the climbers commented on not trusting or not believing in their team. Their team meant so much to them, climbing Mt. Everest with someone would be the highest form of bonding I could think of. As far as autonomy and mastery (competence), those are self-explanatory. Even though you’re with a group on the mountain, for a lot of it you are alone, there is a whole fight going on inside each of those climbers every day that they must do all on their own. People climb Mt. Everest to fulfill these intrinsic needs and drives. Question2: What types of mistakes in judgment and choices did climbers make? - It depends on if you consider dying on that mountain not worth it, really. Harris died, and I think he knew he was going to the whole time, but not getting to the top was just not an option, he’d rather die. And in that regard, he never made a mistake, it was all worth it for him. Anyone could say that the mistakes they made in judgment and choices were just over-confidence and they pushed it too far, but I just simply don’t agree. I’ve read the whole book written about this and I wholeheartedly believe everyone ended...

Words: 520 - Pages: 3

Free Essay

Psy111

...multiple choices (recognition). Using previous research that has shown that characteristics of environment are encoded in the memory, and can be used to retrieve other information; the researchers changed whether or not there was general background noise in controlled study and test conditions and measured the results based on performance in the test. Overall, studying and testing in the same environment resulted in better performance than in mismatching studying environments. This study also found that, unlike in Smith (1986, as cited in Grant 1998), the context dependency effect for newly learned material is seen regardless of whether short answer or multiple choice is tested. As well as this, the study found that in contrast to Smith’s theory, situations involving higher cognitive processing would still associate with context dependency. This was further supported by a study by Martin and Aggleton (1993, as cited in Grant, 1998). Based on this research, Grant came to the conclusion that because normal testing conditions are quiet, a...

Words: 3291 - Pages: 14

Premium Essay

Self Determination Theory Analysis

...Explanation and Practice Application of Self-Determination Theory Ryan S. Charland University of Central Florida Core concepts Self-Determination Theory is the concept that people are internally predisposed towards the accusation of competence, autonomy, and relatedness. SDT claims that these are the three basic psychological needs, the accusation of which results in a state of “full functioning”, or an emotional state of content, happiness, and prosperity. These constructs are considered needs by SDT, as the theory posits that the lack of these psychological ingredients will result in the deterioration of an individual’s psychological state. Integrally, the importance of the accusation of these needs remains true across the...

Words: 652 - Pages: 3

Premium Essay

Motivation and Performance Manager

...employee’s tendency to remain in an organization because he or she cannot afford to leave” (Nelson I Quick , 2013). Normative commitment can be defined” as an individual’s perceived obligation to remain with an organization because they feel they should” (Nelson I Quick , 2013). Job satisfaction is more strongly related to performance for McDonald’s corporation. McDonald’s offers their employees opportunities to grow with in the company by promotion or mentoring programs. Which will cause their employee’s to be happy and be more productive at work. McDonalds applies three components of the motivation system: financial encouragement, nonfinancial encouragement, and social policy. All these factors are described in Maslow's Motivation Theory. Maslow states “that all the needs must be fulfilled one after another” (Nelson I Quick , 2013). The research of the McDonalds Company, its strategy and structure...

Words: 486 - Pages: 2

Free Essay

Case 3 Question

...1. There is a gymnasium and exercise facility provided free to employees and their families, and this includes services such as providing towels and laundering workout clothes, also a free service. The firm’s eating cafes serve excellent food at subsidized prices, with live piano music in the background. Again, families are encouraged to come and use this facility. I would value the Montessori school for the staff kinds. Employees’ profit sharing retirement plans. There is a bonus based in part on the company’s financial performance. 0ther rewards which are not offered are it does not pay fees for his employees in outside training. 2. The self-determination theory to SAS Institute are that the organization sets the goals for his employees and wait for see if they meet them rather than close supervision. 3. 3. It is not the strong financial performance the reason the company offers what it does to employees but it recruits the good working environment and the management style which contribute to the dedication of his employees, it recruits most of his employees from north as few people would prefer to stay there. 4. SAS Institute could improve with regard to motivating its employees is offering transport facilities to them, housing them with subsidized rents and paying fees for the outside employee training. 5. It was picked from the ashes by the two graduates and tremendously improved its growth through learning how to motivate employee who give back the growth of...

Words: 328 - Pages: 2

Premium Essay

Motivation Plan

...Action Plan |Relevant Theory | | | |A progressive training program that will develop the skills | | | | |necessary to complete the required functions of the job may | | |Vicki D. |Has low job satisfaction and low engagement due to a|assist with the lack of job satisfactions and disengagement, | | | |lack of skills and knowledge. Appears to be more |This will also lead to higher productivity and improve the | | | |concerned about recognition/monetary rewards and |quality of work. Recognizing these achievements and providing |Cognitive Evaluation | | |incentives than personal goal achievement |appropriate feedback will motivate the employee. | | | | | |Reinforcement Theory | | ...

Words: 662 - Pages: 3

Free Essay

Autonomz

...Autonomy : Theory and Practice Keywords : Territorial Autonomy, Non-Territorial Autonomy, The Basque Autonomous Community, Spain, Right to self – determination. It might be considered that autonomy can be easily defined since there are so many autonomy models in different parts of the world. However, autonomy does not have the same functioning system in all these parts. Some of them show the same characteristics whereas the others have differences. For instance, autonomy can be for both religious-ethnic groups and indigenous people in different geographical areas. In such group-based autonomies, group members have the right to rule certain matters, e.g. cultural or family issues, whereas autonomy for indigenous people possesses local administrative authorities, locally elected legislative assembly and local independent courts ( Hannum, 1990:467-468 qutoed in Xanthaki, 2007:165) Therefore, Potier (2001:54) claims that ‘international lawyers have failed to come to an agreement on a stable workable definition for autonomy’. According to his assumption, it is impossible to define autonomy accurately since ‘it is a loose and disparate concept which contains many threads, but no single strand’2 However, although he points at the difficulty of the theory of autonomy, there have been many scholars to explain it from different perspectives. We owe great thanks to forefather scientists in particular Ruth Lapidoth, Hurst Hannum, Markku Suksi, Yash Ghai and Yoram Dinstein...

Words: 297 - Pages: 2

Free Essay

Voices and Outcomes

...Job Satisfaction * Job satisfaction mainly affected by three parts derived from self determination theory - autonomy, or the desire to self-organize their own actions and for their actions to be causal - competence, or the desire to feel capable in affecting their surroundings - relatedness, or the desire to feel connected to and respected by a social group. That is, extrinsic incentives are thought to potentially crowd-out satisfaction if they are perceived as controlling, but conversely can crowd-in satisfaction if perceived as supportive of one’s psychological needs. * After doing the survey, it is found that wage and job satisfaction are positively correlated, but after the introduction of voice and autonomy, that relation becomes less significant * Revenue-sharing payment schemes only improve worker productivity when workers also have influence over their workplace Research of relationship between Voices and Employee Satisfaction Colquitt and colleagues (2001) * Voices positively related to outcome satisfaction (rcorrected = 0.45) * Voices positively related to job satisfaction (rcorrected = 0.37) Contingencies * Types of voices * Union voice leads to a higher job satisfaction when comparing with only one type of voice (e.g. Bryson, 2004) It is because union voice provides more opportunities and channels for the employees to raise their voices, especially the complaints. If the voices are accepted and the situation is improved, employees’ attitudes...

Words: 297 - Pages: 2

Free Essay

Why Is the French Revolution Regarded as Such an Important Event in Modern International History?

...Modern society owes much of its origin to a great upheaval in the 18th century, the French Revolution. It was one aspect of a broader pattern of change that, since the Renaissance and Reformation, has set the West on a different path of development from that of the rest of the world. This pattern included the individualism and, in the end, the secularism, that was the Protestant legacy. It also included the rise of science, as a method and as a practice. This culminated in explosive events toward the end of the 18th century. The French Revolution ‘was a phenomenon as awful and irreversible as the first nuclear explosion, and all history has been permanently changed by it.’ The French Revolution is largely regarded as an important event in modern international history because of the way it has had international impact and continued to have international repercussions and influences on society and thought today. This essay will look at different aspects of the French Revolution and discuss how the different components of the revolution have affected the world and the impact of these at the time of the event. For the purposes of this essay the French Revolution will be defined as the insurrection in France that began in 1789 and ended in 1815 with the defeat of Napoleon at the Battle of Waterloo. The actual dates of the revolution are widely contested but for the purposes of this essay, these dates will be used as a framework. Modern international will be assumed to mean the...

Words: 1808 - Pages: 8

Premium Essay

Zumwald Case Study

...Session 4 assignment: Zumwald AG First of all we need to understand the context and the characteristics of this form, in order to take the best decision. For the information we have, the main characteristics of our company that are important to take a decision in this case are: * Highly descentralized basis / managers of each division have considerable autonomy * Bonuses assigned based on each division’s achievement of budgeted targets for ROIC and sales growth * Partly vertically integrated / Division managers were allowed to source their components externally * 3 operating divisions involved The main objective when we take the decision is to maximize the benefit of the whole company, but we have to take into account other arguments like the autonomy of the managers and their motivation, the success of this new product… At this point, we would like to analyse the impact for the whole company in both cases: external purchasing vs. internal purchasing (we have to take with contributions because fixed costs are irrelevant). External purchasing scenario: | ECD | Heidelberg | ISD | Zumwald | Turnover | - | - | 340,000 € | 340,000 € | Variable Costs | - | - | 26,300 €72,000 €100,500 € | 26,300 €72,000 €100,500 € | Fixed Costs | - | - | 117,700 € | 117,700 € | Contribution | - | - | 141,200 € | 141,200 € | Internal purchasing scenario: | ECD | Heidelberg | ISD | Zumwald | Turnover | 21,600 € | 140,000 € | 340,000 € | 340,000 €...

Words: 352 - Pages: 2

Free Essay

Public International Law

...International Law and Municipal Law Issues: • Does domestic law override international law? • Does international law apply domestically? 1 Theoretical Issues • Monism: Essentially exponents of natural-law theories; consequently, they regard all law as part of the same universal normative order, with municipal law deriving its binding force by way of delegation from international law. Thus, monists consider international law a part of domestic law. • Dualism: Essentially exponents of legal positivists – therefore, they have an essentially consensual view of international law, believing that international and municipal law were two separate legal orders. International law must be incorporated into domestic law, for it to apply domestically. • Harmonisation: Assumes that international law forms part of municipal law but acknowledges that on occasions when there was a conflict between the two systems, a municipal judge would be bound by the jurisdictional rules of the domestic domain. 2 Primacy of International Law 1 Municipal Tribunals Whether international law has primacy over municipal law depends on each particular country’s constitution. In Australia, there is no express incorporation of international obligations in Australia. Implementing legislation is required for both treaty and customary international law to apply. See below for further information. 2 International Tribunals A State cannot invoke domestic laws as an excuse for failure...

Words: 34402 - Pages: 138

Free Essay

History of the Panama Canal

...In 1825, a group of American businesspeople announced the formation of a canal building company, with interests in constructing a canal system across the Isthmus. This project was to take place in an area now called Panama. The endeavor was filled with controversy. Though the canal itself was not built until the early 1900's every step toward the building and ownership, was saturated with difficulty. Walter LaFeber illustrates the dilemmas in a historical analysis. In his work he states five questions that address the significance of the Panama Canal to United States. This paper will discuss the historical perspective of the book's author, address pertinent three questions and give a critique of LaFeber's work, The Panama Canal. For proper historical analysis one must understand the importance of the Canal. The Panama Canal and the Canal Zone (the immediate area surrounding the Canal) are important areas used for trade. Even before the canal was built there were to large ports on both sides of the Isthmus. Large amounts of cargo passed through the Isthmus by a railroad that connected the two ports. The most important cargo was the gold mined in California before the transcontinental railroad was completed in the United States. It has strategic significance because of its location, acting as a gateway connecting the Pacific and Atlantic oceans. This allows for rapid naval deployment between fleets in either ocean. These two facets make the Panama Canal very important in the region...

Words: 1010 - Pages: 5

Free Essay

The Rise of Modern China

...the subsequent peace process that followed after the war and its impact on the main powers like European powers but rather he focused on the impact of the peace process on the side states like Korea and china. These countries didn’t play a major or rather significant role in the peace process in fact they were largely ignored. Central to his thesis is the Wilsonian message of national self-determination and equality among states. To be well conversant with the encumbrance and openings implanted in China's the excellent place to start is on Jonathan D. Spence's good new book. ''The Search for Modern China,'' a detailed account across centuries from the fall of the Ming dynasty in 1600 up to the point of death of the democracy movement in June 1989, will educate everybody students and public alike of Chinese history. The effect and similar causal sequence of Wilson's discourse from 1918 up to the end of Paris peace conference is what Manela defines as the "Wilsonian Moment. As per Manela, Wilson radical ideals was based on his need and determination for all the nations of the earth to become self-governed and to embrace colonial ideologies. Wilson was directing his message to Europe audience but the broadcasting media in Europe send the message across the globe and it was welcomed by leaders from non-western developing countries. The nationalistic movement emerge especially within eastern countries following up on Wilson’s vision. Manila in his book highlights how Wilson’s ideas...

Words: 1579 - Pages: 7

Premium Essay

Multinational Companies

...Advantages and Disadvantages of Transnational Corporations Host Country: Advantages 1. The investment level, employment level, and income level of the host country increases due to the operation of TNC's. 2. The industries of host country get latest technology from foreign countries through TNC's. 3. The host country's business also gets management expertise from TNC's. 4. The domestic traders and market intermediaries of the host country gets increased business from the operation of TNC's. 5. TNC's break protectionism, curb local monopolies, create competition among domestic companies and thus enhance their competitiveness. 6. Domestic industries can make use of R and D outcomes of TNC's. 7. The host country can reduce imports and increase exports due to goods produced by TNC's in the host country. This helps to improve balance of payment. 8. Level of industrial and economic development increases due to the growth of TNC's in the host country. Disadvantages 1. TNC's may transfer technology which has become outdated in the home country. 2. As TNC's do not operate within the national autonomy, they may pose a threat to the economic and political sovereignty of host countries. 3. TNC's may damage the domestic industry by monpolising the host country's market. 4. In order to make profit, TNC's may use natural resources of the home country indiscriminately and cause depletion of the resources. 5. A large sums of money flows to foreign countries in terms of payments...

Words: 316 - Pages: 2