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Leadership Across

The specific objectives of this chapter are:


1. DESCRIBE the basic philosophic foundation and styles
of managerial leadership Cultures
2. EXAMINE the attitudes of European managers toward
leadership practices
3. COMPARE and CONTRAST leadership styles in Japan
with those in the United States
Leadership Across
The specific objectives of this chapter are:
4. REVIEW leadership approaches in China, the Middle
Cultures
East, and developing countries
5. EXAMINE recent, research and findings regarding
leadership across cultures
Leadership Across
The specific objectives of this chapter are:
6. Cultures
DISCUSS the relationship of culture clusters and
leader behavior on effective leadership practices
including increasing calls for more responsible global
leadership
Foundation for Leadership
Philosophical Background:
Theories X, Y, and Z
 A manager who believes
Theory
Theory XX Manager
Manager that 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
Theory
Theory XX Manager
Manager that under the right
conditions people not only
Theory
Theory YY Manager
Manager will work hard but will seek
increased responsibility and
challenge.
Foundation for Leadership
Philosophical Background:
Theories X, Y, and Z
 A manager who believes
Theory
Theory XX Manager
Manager that workers seek
opportunities to participate
Theory
Theory YY Manager
Manager in management and are
motivated by teamwork and
responsibility sharing.
Theory
Theory ZZ Manager
Manager
Foundation for Leadership
Leadership Behaviors
and Styles
The use of work-centered
Authoritarian
Authoritarian behavior designed to ensure
Leadership
Leadership task accomplishment.
The use of work-centered
Paternalistic
Paternalistic behavior coupled with a
Leadership
Leadership protective employee centered
concern.
The use of both work- or task-
Participative
Participative centered and people centered
Leadership
Leadership approaches to leading
subordinates.
Leader–Subordinate Interactions

Authoritarian Leader

Subordinate Subordinate Subordinate

One-way downward flow of information


and influence from authoritarian leader
to subordinates.

Adapted from Figure 13–1: Leader–Subordinate Interactions


McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserve
Leader–Subordinate Interactions

Paternalistic Leader

Subordinate Subordinate Subordinate

Continual interaction and exchange of


information and influence between
leader and subordinates.

Adapted from Figure 13–1: Leader–Subordinate Interactions


McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserve
Leader–Subordinate Interactions

Participative Leader

Subordinate Subordinate Subordinate

Continual interaction and exchange of


information and influence between
leader and subordinates.

Adapted from Figure 13–1: Leader–Subordinate Interactions


McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserve
Likert’s Systems or Styles
Leadership

Adapted from Figure 13–2: Likert’s Systems or Styles Leadership


Likert’s Systems or Styles Leadership

Adapted from Figure 13–2: Likert’s Systems or Styles Leadership


The Managerial Grid
High 1,9 Management Style 9,9 Management Style
9

Thoughtful attention to needs of Work accomplishment is from


people for satisfying relationships committed people; interdependence
Concern for People/Relationships

leads to a comfortable friendly through a “common stake” in


organization atmosphere and organization purpose leads to
7

work tempo relationships of trust and respect


5,5 Management Style
6

Adequate organization performance is


possible through balancing the necessity
5

to get out work with maintaining morale of


people at a satisfactory level
4
3

1,1 Management Style 9,1 Management Style


Exertion of minimum effort to get Efficiency in operations results from
2

required work done is arranging conditions of work in such


Low
appropriate to sustain a way that human elements
1

organization membership interface to a minimum degree


1 2 3 4 5 6 7 8 9
Low Concern for Production/Task High

Adapted from Figure 13–2: The Managerial Grid


McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserve
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.
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 Does the leader believe that


Capacity for
for Leadership
Leadership
employees prefer to be directed and
and
and Initiative
Initiative 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 Does the leader believe that


Capacity for
for Leadership
Leadership
and detailed, complete instructions
and Initiative
Initiative should be given to subordinates and
Sharing that subordinates need only this
Sharing Information
Information
and information to do their jobs?
and Objectives
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
Capacity for
for Leadership
Leadership Does the leader support
and participative leadership practices?
and Initiative
Initiative
Sharing
Sharing Information
Information
and
and Objectives
Objectives

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

Participation
Participation Does the leader believe that
employees respond best to
internally generated control?
Internal
Internal Control
Control
Clusters of Countries in the Haire,
Ghiselli, and Porter Study

(Believe workers have more initiative,


more autocratic, more external rewards)

Adapted from Table 13–3: Clusters of Countries in the Haire, Ghiselli, and Porter Study
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
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
Adapted from Figure 13–3: Productivity of Japanese Groups with High-Achievement Motivation under Different
Leadership Styles
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserve
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
(low task, high people) 01 2 3 4 5 6
7 Sessions
Adapted from Figure 13–4: Productivity of Japanese Groups with Low-Achievement Motivation under Different
Leadership Styles
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserve
Leadership in China
 Importance that the respondents in one study assigned to three areas:

Measured by importance of self sufficiency and


Individualism
Individualism personal accomplishments

Measured by willingness to subordinate personal


Collectivism
Collectivism goals to those of the work group with an
emphasis on sharing and group harmony
Leadership in the International
Measured by the importance of societal harmony,
Context
Confucianism
Confucianism virtuous interpersonal behavior, and personal and
interpersonal harmony
Leadership in China

 The “New Generation” group scored significantly higher on


individualism than did the current and older generation groups
 They also scored significantly lower than the other two groups
on collectivism and Confucianism
 These values appear to reflect the period of relative openness
and freedom, often called the “Social Reform Era,” in which
these new managers grew up
Leadership in exposure
 They have had greater the International
to Western societal influences
Context
may result in leadership styles similar to those of Western
managers
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
Leadership in the International
styles in the United Arab Emirates

Context
 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

Adapted from Table 13–5: Differences in Middle Eastern and Western Management
Differences in Middle Eastern and
Western Management

Adapted from Table 13–5: 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

Leadership in the
Developing countries International
may be moving toward a more
participative leadership style
Context
Recent Findings and Insights About
Leadership
Transformational, Transactional,
and Charismatic Leadership
Transformational leaders are characterized by four interrelated factors:

Idealized  Transformational leaders are a


Idealized Influence
Influence
source of charisma and enjoy
the admiration of their
followers.
 They enhance pride, loyalty,
and confidence in their people,
and align these followers by
providing a common purpose
or vision that the latter
willingly accept
Recent Findings and Insights About
Leadership
Transformational, Transactional,
and Charismatic Leadership
Transformational leaders are characterized by four interrelated factors:

Idealized  These leaders are extremely


Idealized Influence
Influence
effective in articulating their
vision, mission, and beliefs in
Inspirational
Inspirational Motivation
Motivation clear-cut ways, thus providing
an easy-to understand sense
of purpose regarding what
needs to be done
Recent Findings and Insights About
Leadership
Transformational, Transactional,
and Charismatic Leadership
Transformational leaders are characterized by four
interrelated factors:
Idealized  Transformational leaders are
Idealized Influence
Influence
able to get their followers to
question old paradigms and to
Inspirational
Inspirational Motivation
Motivation accept new views of the world
regarding how things now
Intellectual Stimulation need to be done
Intellectual Stimulation
Recent Findings and Insights About
Leadership
Transformational, Transactional,
and Charismatic Leadership
Transformational leaders are characterized by four interrelated factors:

Idealized  These leaders are able to


Idealized Influence
Influence
diagnose and elevate the
needs of each of their followers
Inspirational
Inspirational Motivation
Motivation through individualized
consideration, thus furthering
Intellectual the development of these
Intellectual Stimulation
Stimulation
people
Individualized
Individualized
Consideration
Consideration
Recent Findings and Insights About
Leadership
Transformational, Transactional,
and Charismatic Leadership
Four other types of leaders are less effective than transformational leaders

Contingent Clarifies what needs to be done, provides


Contingent Reward
Reward (CR)
(CR) psychic and material rewards to those
Leader
Leader complying with his or her directives
Monitors follower performance and takes
Active
Active Management-by-
Management-by- corrective action when deviations from
Exception
Exception (MBE-A)
(MBE-A) Leader
Leader standards occurs

Passive
Passive Management-by-
Management-by- Takes action or intervenes in situations
Exception
Exception (MBE-P)
(MBE-P) Leader
Leader only when standards are not met

Laissez-Faire Avoids intervening or accepting


Laissez-Faire (LF)
(LF) Leader
Leader responsibility for follower actions
An Optimal Profile of Universal Leadership
Behaviors
I’s–transformational Effective
CR–Contingent Reward
MBE-A–Active Management-by-Exception I’s
MBE-P–Active Management-by-Exception
LF–Laissez-Faire CR

MBE-A
Passive Active
MBE-P

y
nc
ue
eq
Fr
LF

Effective
Adapted from Figure 13–5: An Optimal Profile of Universal Leadership Behaviors
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserve
Qualities Most Demanded in
Advertisements for European
Executives

Adapted from Table 13–6: Qualities Most Demanded in Advertisements for European Executives
Qualities Most Demanded in
Advertisements for European
Executives

Adapted from Table 13–6: Qualities Most Demanded in Advertisements for European Executives
Rankings of the Most Important
Leadership Attributes

Adapted from Table 13–7: Rankings of the Most Important Leadership Attributes by Region and Country Cluster
Rankings of the Most Important
Leadership Attributes

Adapted from Table 13–7: Rankings of the Most Important Leadership Attributes by Region and Country Cluster
Recent Findings and Insights About
Leadership
Leader Behavior, Leader
Effectiveness, and Leading Teams
One of the keys to successful global leadership is
knowing what style and behavior works best in a given
culture and adapting appropriately

◦ In affective cultures, such as the United States,


leaders tend to exhibit their emotions

◦ In neutral cultures, such as Japan and China, leaders


do not tend to show their emotions
Leadership Tips for Doing Business in
Affective and Neutral Cultures
Leadership Tips for Doing Business in
Affective and Neutral Cultures
Leadership Tips for Doing Business in
Affective and Neutral Cultures
Recent Findings and Insights About
Leadership
Ethically Responsible
Global Leadership
Linking leadership and corporate responsibility
through “responsible global leadership”
◦ Values Based Leadership
◦ Ethical Decision Making
◦ Quality Stakeholder Relationships
According to this view, global leadership must be based on core
values and credos that reflect principled business and leadership
practices, high levels of ethical and moral behavior, and a set of
shared ideals that advance organizational and societal well-being.
Recent Findings and Insights About
Leadership
Entrepreneurial
Leadership and Mindset
 Promising start-ups fail for many reasons
◦ Lack of capital, absence of clear goals and objectives, and failure to
accurately assess market demand and competition
◦ Poor personal leadership ability of the entrepreneurial CEO
 For international new ventures, these factors are significantly
complicated by
◦ Differences in cultures, national political and economic systems,
geographic distance, and shipping, tax, and regulatory costs.
Recent Findings and Insights About
Leadership
Entrepreneurial
Leadership and Mindset
Key personal characteristics of entrepreneurs
and strong leaders
◦ Appear to be more creative and innovative than non-
entrepreneurs
◦ Tend to break the rules and do not need structure, support, or an
organization to guide their thinking
◦ See things differently and add to a product, system, or idea
value that amounts to more than an adaptation or linear change
◦ Are more willing to take personal and business risks, and to do
so in visible and salient ways
Recent Findings and Insights About
Leadership
Entrepreneurial
Leadership and Mindset
Key personal characteristics of entrepreneurs
and strong leaders
◦ They are opportunity seekers and are comfortable
with failure, rebounding quickly to pursue another
opportunity
◦ They are characterized as adventurous, ambitious,
energetic, domineering, and self-confident
Entrepreneurial leaders operating internationally must possess cultural
sensitivity, international vision, and global mindset to effectively lead
their venture through challenges of doing business in other countries.
Road to Hell

Case

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