MULTINATIONAL MANAGEMENT IN A CHANGING WORLD

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CHAPTER 14 LEADERSHIP AND MANAGEMENT BEHAVIOR IN
MULTINATIONAL COMPANIES
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INTRODUCTION

• Leadership influencing group members to achieve
  goals
• Excellent leaders motivate their employees to
  achieve more than minimal requirements
• The challenges of leadership in a multinational
  company

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GLOBAL LEADERS

• Have skills and abilities to manage people from
  diverse backgrounds
• cosmopolitan
• skilled at intercultural communication
• culturally sensitive

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Global leaders, continued

• rapid acculturators
• know local cultures/social institutions
• facilitate subordinates intercultural
  performance

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Global leaders, continued

• use cultural synergy
• promote and use the growing world culture

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THREE CLASSIC MODELS A VOCABULARY OF LEADERSHIP

• Leadership traits
• Leader behavior
• Contingency leadership models

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LEADERSHIP TRAITS

• Trait models of leadership Are leaders born or
  made?
• The great person theory

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TRAITS OF SUCCESSFUL U.S. LEADERS

• Higher intelligence/self confidence
• More initiative/assertiveness/ persistence
• Greater desire for responsibility and influence
• Greater awareness of the needs of others

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U.S. PERSPECTIVES ON LEADERSHIP BEHAVIORS

• Two major types of leadership behaviors
• 1. Initiating structure task-centered leaders
• give directions, establish standards

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U.S. perspectives on leadership behaviors,
continued

• 2. Focus on social and emotional needs of
  employees
• consideration or person- centered leaders

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LEADER DECISION MAKING STYLES

• Autocratic
• Benevolent
• Democratic
• Consultative or participative leadership style

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JAPANESE LEADERSHIP Performance-Maintenance (PM)
Theory

• Performance function (P)
• similar to task-centered
• The maintenance function (M)
• similar to person-centered
• PM leader focuses on influencing groups

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WHICH STYLE OF LEADER BEHAVIOR IS BEST?

• It all depends
• Contemporary views challenge the assumption that
  one style of leadership behavior fits all
  situations

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CONTINGENCY THEORIES

• Assumption
• different styles and different leaders are more
  appropriate for different situations

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FIEDLER ON LEADERSHIP

• Success depends on
• 1. Leader/subordinates relationships
• 2. Subordinates' tasks
• 3. Power of the leader
• Effectiveness style matches situation

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PATH-GOAL THEORY

• Identifies four types of leadership styles
• directive
• supportive
• participative
• achievement-oriented
• See Exhibit 14.3 next

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PATH-GOAL THEORY FITS

• Subordinates
• high achievement needs achievement-oriented
  ldr.
• high social needs supportive ldr.
• Job unstructured directive or
  achievement-oriented ldr.

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THE NATIONAL CONTEXT CONTINGENCY MODEL
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Exhibit 14.5 (next) shows the national-context
contingency model of leadership
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NATIONAL CONTEXT AND LEADER BEHAVIORS

• Regardless of cultural background, leaders use
  both person and task-centered behaviors
• Different behaviors communicate leadership style
• Different tactics preferred

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LEADERSHIP TRAITS AND BEHAVIORS IN THE NATIONAL
CONTEXT

• Selected findings from the GLOBE study
• Global Leadership and Organizational Behavior
  Effectiveness
• see Exhibits 14.6 to 14.8

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EXHIBIT 14.8Culturally-Contingent Beliefs
Regarding Effective Leadership Styles
Contributes to outstanding leadership
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Exhibit 14.8 continued
Contributes to outstanding leadership
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Exhibit 14.8 continued
Contributes to outstanding leadership
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Exhibit 14.8 continued
Contributes to outstanding leadership
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Exhibit 14.8 continued
Contributes to outstanding leadership
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EXHIBIT 14.9 PREFERRED LEADER INFLUENCE TACTICS
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NATIONAL CONTEXT AND SUBORDINATE EXPECTATIONS

• Differences in legitimate prerogatives of
  leadership
• High power distance - autocratic leadership
• Low power-distance - leader be more like them

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National context and subordinate expectations,
continued

• Strong masculinity norms - more authoritarian
  leadership
• Strong uncertainty avoidance norms - subordinates
  expect the leader to provide more direction

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EXHIBIT 14.11 PREFERENCES FOR THE SPECIFICS
LEADER
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CONTEMPORARY LEADERSHIP PERSPECTIVES
MULTINATIONAL IMPLICATIONS
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TWO BASIC FORMS OF LEADERSHIP

• Transactional
• Transformational

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TRANSFORMATIONAL LEADERSHIP

• Articulates a vision
• Breaks from the status quo
• Provide goals and a plan
• Gives meanings/purpose to goals
• Take risks/motivated to lead
• Builds a power base
• Demonstrates high ethical/moral standards

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ATTRIBUTIONS AND LEADERSHIP

• Leaders make attributions regarding subordinates
• Internal attribution - leader tends to correct or
  reward
• External attribution, leader modifies the work
  environment

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THE CULTURAL CONTEXT AND SUGGESTED LEADERSHIP
STYLES
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EXHIBIT 14.12 LEADERSHIP AND JOB PERFORMANCE OF
U.S. MANAGERS IN THE U.S. AND H. K.
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NATIONAL CULTURE AND LEADERSHIP STYLE
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CONCLUSIONS

• Multinational managers strive to become global
  leaders
• A complex array of cultural, social, and
  institutional issues face the global leaders of
  today