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LEADERSHIP IN THE INTERNATIONAL CONTEXT

the specific objectives of this chapter are:

1. EXAMINE the attitudes of European managers toward leadership


practices
2. COMPARE and CONTRAST leadership styles in Japan with those in
Thethe United States
specific objectives of this chapter are:
3. REVIEW leadership approaches in the Middle East, and developing
countries
4. EXAMINE recent, research and findings regarding leadership across
cultures
Foundation for Leadership
Philosophical Background: Theories X, Y, and Z

 A manager who believes that


Theory X Manager people are basically lazy and that
coercion and threats of
punishment often are necessary to
get them to work.
Foundation for Leadership

Philosophical Background: Theories X, Y, and Z

 A manager who believes that


Theory X Manager under the right conditions people
not only will work hard but will
Theory Y Manager seek increased responsibility and
challenge.
Foundation for Leadership
Philosophical Background: Theories X, Y, and Z

 A manager who believes that


Theory X Manager workers seek opportunities to
participate in management and
Theory Y Manager are motivated by teamwork and
responsibility sharing.

Theory Z Manager
Foundation for Leadership
Leadership Behaviors and Styles

The use of work-centered behavior


Authoritarian designed to ensure task
Leadership accomplishment.
The use of work-centered behavior
Paternalistic coupled with a protective employee
Leadership centered concern.
The use of both work- or task-centered
Participative and people centered approaches to
Leadership leading subordinates.
Leader–Subordinate Interactions

Authoritarian Leader

Subordinate Subordinate Subordinate

One-way downward flow of information


and influence from authoritarian leader
to subordinates.
Leader–Subordinate Interactions

Paternalistic Leader

Subordinate Subordinate Subordinate

Continual interaction and exchange of


information and influence between
leader and subordinates.
Leader–Subordinate Interactions

Participative Leader

Subordinate Subordinate Subordinate

Continual interaction and exchange of


information and influence between
leader and subordinates.
Leadership in the International
Context
How do leaders in other countries attempt to direct
or influence their subordinates?
Are their approaches similar to those used in the
United States?

Research shows that there are both similarities and


differences – most international research on leadership
has focused on Europe, East Asia, the Middle East,
and developing countries such as India, Peru, Chile,
and Argentina.
Attitudes of European Managers Toward Leadership
Practices
Leadership in the International
Context
Attitudes of European European managers tend to use a
participative approach. Researchers
Managers Toward investigated four areas relevant to
Leadership Practices leadership.

Capacity for Leadership Does the leader believe that employees


and Initiative prefer to be directed and have little
ambition? (Theory X)

OR
Does the leader believe that characteristics
such as initiative can be acquired by most
people regardless of their inborn traits and
abilities? (Theory Y)
Leadership in the International
Context
Attitudes of European Most evidence indicates European
managers tend to use a participative
Managers Toward approach. Researchers investigated
Leadership Practices four areas relevant to leadership.

Capacity for Leadership Does the leader believe that detailed,


and Initiative complete instructions should be given to
subordinates and that subordinates need
Sharing Information only this information to do their jobs?
and Objectives
OR
Does the leader believe that general
directions are sufficient and that
subordinates can use their initiative in
working out the details?
Leadership in the International
Context
Attitudes of European Most evidence indicates European
managers tend to use a participative
Managers Toward approach. Researchers investigated
Leadership Practices four areas relevant to leadership.

Capacity for Leadership Does the leader support participative


and Initiative leadership practices?

Sharing Information
and Objectives

Participation
Leadership in the International
Context
Attitudes of European Most evidence indicates European
managers tend to use a participative
Managers Toward approach. Researchers investigated
Leadership Practices four areas relevant to leadership.

Capacity for Leadership Does the leader believe that the most
and Initiative effective way to control employees is
through rewards and punishment?
Sharing Information
and Objectives OR
Does the leader believe that employees
Participation respond best to internally generated
control?

Internal Control
Clusters of Countries in the Haire,
Ghiselli, and Porter Study

(Believe workers have more initiative,


more autocratic, more external rewards)
Leadership in the International
Context
Attitudes of European The Role of Level, Size, and
Managers Toward Age on European Managers’
Leadership Practices Attitudes Toward Leadership
 Higher-level managers tend to express more democratic values than
lower-level managers in some countries – in other countries, the
opposite was true

 Company size tends to influence the degree of participative-


autocratic attitudes

 Younger managers were more likely to have democratic values when


it came to capacity for leadership and initiative and to sharing
information and objectives
Leadership in the International
Context
Attitudes of European
Conclusion About European
Managers Toward
Leadership Practices
Leadership Practices
 Most European managers tend to reflect more participative and
democratic attitudes – but not in every country

 Organizational level, company size, and age seem to greatly


influence attitudes toward leadership

 Many of the young people in this study now are middle-aged –


European managers in general are highly likely to be more
participative than their older counterparts of the 1960s and 1970s
Japanese Leadership Approach
Leadership in the International
Context
Japanese Leadership
Approaches

 Japan is well known for its paternalistic approach to leadership

 Japanese culture promotes a high safety or security need, which is


present among home country–based employees as well as MNC
expatriates

 Japanese managers have much greater belief in the capacity of


subordinates for leadership and initiative than do managers in
most other countries – only managers in Anglo-American countries
had stronger feelings in this area
Leadership in the International
Context
Differences Between
Japanese and U.S.
Leadership Styles
 Except for internal control, large U.S. firms tend to be more
democratic than small ones – the profile is quite different in Japan
 Younger U.S. managers appear to express more democratic
attitudes than their older counterparts on all four leadership
dimensions
 Japanese and U.S. managers have a basically different philosophy of
managing people – Ouchi’s Theory Z combines Japanese and U.S.
assumptions and approaches providing a comparison of seven key
characteristics
Leadership in the International
Context
Differences Between
Japanese and U.S.
Leadership Styles
Another difference between Japanese and U.S. leadership styles is how
senior-level managers process information and learn
 Variety Amplification
Japanese executives are taught and tend to use variety amplification – the
creation of uncertainty and the analysis of many alternatives regarding
future action
 Variety Reduction
U.S. executives are taught and tend to use variety reduction – the limiting of
uncertainty and the focusing of action on a limited number of alternatives
Productivity of Japanese Groups with High-Achievement
Motivation under Different Leadership Styles

80

50

Productivity
—— PM Leadership Style 9,9
(high task, high people)
—— M Leadership Style 1,9
(low task, high people)
—— P Leadership Style 9,1
(high task, low people)
0
—— PM Leadership Style 1,1
1 2 3 4 5 6 7
(low task, low people)
Sessions
Productivity of Japanese Groups with Low-Achievement
Motivation under Different Leadership Styles

80

50

Productivity
—— P Leadership Style 9,1
(high task, low people)
—— PM Leadership Style 9,9
(high task, high people) 25

—— PM Leadership Style 1,1


(low task, low people)
—— M Leadership Style 1,9 01 2 3 4 5 6
(low task, high people) 7 Sessions
Leadership in the Middle east
Leadership in the
Middle East

 There may be much greater similarity between Middle Eastern leadership


styles and those of Western countries
 Western management practices are evident in the Arabian Gulf region
due to close business ties between the West and this oil-rich area as well
as the increasing educational attainment, often in Western universities,
of Middle Eastern managers
 Organizational culture, level of technology, level of education, and
management responsibility were good predictors of decision-making
styles in the United Arab Emirates
 There is a tendency toward participative leadership styles among young
Arab middle managers, as well as among highly educated managers of all
ages
Differences in Middle Eastern and
Western Management
Differences in Middle Eastern and
Western Management
Leadership Approaches in Developing Countries

 Managerial attitudes in India are similar to Anglo-


Americans toward capacity for leadership and
initiative, participation, and internal control, but
different in sharing information and objectives
 Leadership styles in Peru may be much closer to
those in the United States than previously assumed
 Developing countries may be moving toward a more
participative leadership style
Leadership Approaches in Developing Countries
(Continue…)

 Some research has focused on leadership styles in


developing countries such as India, Peru, Chile and
Argentina. These studies have examined leadership in
terms of Likert’s systems or styles (Table 13-1 Page-366) and
the managerial attitudes toward the four dimensions of
leadership practice.

 Leadership styles in India would seem more likely to be


participative than those in the Middle East or other
developing countries.
Leadership Approaches in Developing Countries
(Continue…)

Some degree of similarity between leadership styles in


India and Anglo-American countries, but it was not so
significant. The study found Indians to be similar to
the Anglo-American in terms of managerial attitudes
toward capacity for leadership and initiative,
participation and internal control.

The difference is in sharing information and objectives.


Leadership Approaches in Developing Countries
(Continue…)

Early research on leadership styles in India found


that –
 A highly controlling superior had a positive effect on
subordinates’ job satisfaction.
 Indian managers often is a more participative one.
 Job satisfaction of Indian employees increases as
leadership style becomes more participative.
Leadership Approaches in Developing Countries
(Continue…)

One study reached similar conclusions based on interviews


and surveys conducted with managers in a cross-section
of industries in northern and western India using a
questionnaire that identified Linkert systems or styles of
leadership.
Of the 120 respondents –
 Exploitive autocratic leadership (system 1) – 14%
 Benevolent autocratic leadership (system 2) – 63%
 Consultative participative leadership (system 3) – 23%
 Democratic leadership (system 4) – none

This study found that the more autocratic the leadership styles
(system 1 & 2) the lower the level of job satisfaction.
Leadership Approaches in Developing Countries
(Continue…)

Different findings from India show that participative


leadership style may be more common and more
effective in developing countries. Over time,
developing countries may be moving toward a
more participative style.
Leadership Approaches in Developing Countries
(Continue…)

 Leadership styles in Peru would have been different


from other South American countries such as
Argentina or Chile.
 Leadership styles in Peru may be much closer to
those in the United States than previously assumed.
Differences in Leadership practices
 Japanese vs. USA
 Senior-level managers process information and learn.
 Variety amplification.
 Variety Reduction .

 Middle –East vs. Western


 Highly authotarian.
 Rigid instructions.

 Developed vs. Developing


 Autocratic
 Participative
 Democratic

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