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Due to the social democratic nature of Austrian culture, employees are much less motivated by financial incentives than in more capitalist countries such as

 

Due to the social democratic nature of Austrian culture, employees are much less motivated by financial incentives than in more capitalist countries such as the United States. As such, alternative methods need to be utilized in order to change employee behavior. Historically, there are two proven ways to motivate employees in such circumstances: non-financial incentives and leveraging social status. Austrians generally emphasize family life and believe in "working to live" rather than "living to work." As such, incentives that allow employees to spend more time with their families and improve their life/work balance are the most effective way to provide motivation. In addition to explicit incentive systems, Austrians are frequently intrinsically motivated by social status. By creating a social hierarchy that can be climbed through accomplishing specified goals and objectives, cultural change can be adopted over time. Establishing better external relationships with austomers can be accomplished by focusing on leveraging an understanding of Austrian culture. Answer the following question. Q1. Give an overview of the case. Q2. Why Austrians are less motivated by financial incentives?

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