Leadership Across Cultures

1
Handout 3

• Leadership Across Cultures

2
Handout 3

• The specific objectives of this chapter are
• DESCRIBE the basic philosophic foundation and
  styles of managerial leadership
• EXAMINE the attitudes of European managers toward
  leadership practices
• COMPARE and CONTRAST leadership styles in Japan
  with those in the United States

3
Leadership Across Cultures
Handout 3
The specific objectives of this chapter are

1. REVIEW leadership approaches in China, the Middle
   East, and developing countries
2. EXAMINE recent, research and findings regarding
   leadership across cultures

4
Leadership Across Cultures
Handout 3
The specific objectives of this chapter are

1. DISCUSS the relationship of culture clusters and
   leader behavior on effective leadership practices
   including increasing calls for more responsible
   global leadership

5
Foundation for Leadership
Philosophical Background Theories X, Y, and Z
Theory X Manager

• A manager who believes that people are basically
  lazy and that coercion and threats of punishment
  often are necessary to get them to work.

6
Foundation for Leadership
Philosophical Background Theories X, Y, and Z
Theory X Manager

• A manager who believes that under the right
  conditions people not only will work hard but
  will seek increased responsibility and challenge.

Theory Y Manager
7
Foundation for Leadership
Philosophical Background Theories X, Y, and Z
Theory X Manager

• A manager who believes that workers seek
  opportunities to participate in management and
  are motivated by teamwork and responsibility
  sharing.

Theory Y Manager
Theory Z Manager
8
Foundation for Leadership
Leadership Behaviors and Styles
Authoritarian Leadership
Paternalistic Leadership
Participative Leadership
9
LeaderSubordinate Interactions
Authoritarian Leader
Subordinate
Subordinate
Subordinate
One-way downward flow of information and
influence from authoritarian leader to
subordinates.
Adapted from Figure 131 LeaderSubordinate
Interactions
McGraw-Hill/Irwin
10
LeaderSubordinate Interactions
Paternalistic Leader
Subordinate
Subordinate
Subordinate
Continual interaction and exchange of information
and influence between leader and subordinates.
Adapted from Figure 131 LeaderSubordinate
Interactions
McGraw-Hill/Irwin
11
LeaderSubordinate Interactions
Participative Leader
Subordinate
Subordinate
Subordinate
Continual interaction and exchange of information
and influence between leader and subordinates.
Adapted from Figure 131 LeaderSubordinate
Interactions
McGraw-Hill/Irwin
12
Likerts Systems or Styles Leadership
Adapted from Figure 132 Likerts Systems or
Styles Leadership
13
Likerts Systems or Styles Leadership
Adapted from Figure 132 Likerts Systems or
Styles Leadership
14
The Managerial Grid
9,9 Management Style Work accomplishment is from
committed people interdependence through a
common stake in organization purpose leads to
relationships of trust and respect
1,9 Management Style Thoughtful attention to
needs of people for satisfying relationships
leads to a comfortable friendly organization
atmosphere and work tempo
5,5 Management Style Adequate organization
performance is possible through balancing the
necessity to get out work with maintaining
morale of people at a satisfactory level
1,1 Management Style Exertion of minimum effort
to get required work done is appropriate to
sustain organization membership
9,1 Management Style Efficiency in operations
results from arranging conditions of work in such
a way that human elements interface to a minimum
degree
Adapted from Figure 132 The Managerial Grid
McGraw-Hill/Irwin
15
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.
16
Leadership in the International Context
Attitudes of European Managers Toward Leadership
Practices
European managers tend to use a participative
approach. Researchers investigated four areas
relevant to leadership.

• Does the leader believe that employees 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)

Capacity for Leadership and Initiative
17
Leadership in the International Context
Attitudes of European Managers Toward Leadership
Practices
Most evidence indicates European managers tend to
use a participative approach. Researchers
investigated four areas relevant to leadership.

• Does the leader believe that detailed, complete
  instructions should be given to subordinates and
  that subordinates need only this information to
  do their jobs?
• OR
• Does the leader believe that general directions
  are sufficient and that subordinates can use
  their initiative in working out the details?

Capacity for Leadership and Initiative
Sharing Information and Objectives
18
Leadership in the International Context
Attitudes of European Managers Toward Leadership
Practices
Most evidence indicates European managers tend to
use a participative approach. Researchers
investigated four areas relevant to leadership.

• Does the leader support participative leadership
  practices?

Capacity for Leadership and Initiative
Sharing Information and Objectives
Participation
19
Leadership in the International Context
Attitudes of European Managers Toward Leadership
Practices
Most evidence indicates European managers tend to
use a participative approach. Researchers
investigated four areas relevant to leadership.

• Does the leader believe that the most effective
  way to control employees is through rewards and
  punishment?
• OR
• Does the leader believe that employees respond
  best to internally generated control?

Capacity for Leadership and Initiative
Sharing Information and Objectives
Participation
Internal Control
20
Clusters of Countries in the Haire, Ghiselli, and
Porter Study
Adapted from Table 133 Clusters of Countries in
the Haire, Ghiselli, and Porter Study
21
Leadership in the International Context
Attitudes of European Managers Toward Leadership
Practices
The Role of Level, Size, and Age on European
Managers 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

22
Leadership in the International Context
Attitudes of European Managers Toward Leadership
Practices
Conclusion About European 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

23
Leadership in the International Context
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

24
Leadership in the International Context
Japanese Leadership Approaches

• Japan is well known for its paternalistic and
  participative approach to leadership
• Japanese culture promotes a high safety or
  security need, which is present among home
  countrybased 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

25
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

26

• Japanese and U.S. managers have a basically
  different philosophy of managing people Ouchis
  Theory Z combines Japanese and U.S. assumptions
  and approaches providing a comparison of seven
  key characteristics

27
Leadership in the International Context
Leadership in China

• Importance that the respondents in one study
  assigned to three areas

Individualism
Measured by importance of self sufficiency and
personal accomplishments
Measured by willingness to subordinate personal
goals to those of the work group with an emphasis
on sharing and group harmony
Collectivism

• Measured by the importance of societal harmony,
  virtuous interpersonal behavior, and personal and
  interpersonal harmony (Confucianism strongly
  emphsizesMercy ,Social order
• And fulfillment of responsibilities

Confucianism
28
Leadership in the International Context
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
• They have had greater exposure to Western
  societal influences may result in leadership
  styles similar to those of Western managers

29
Leadership in the International Context
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

30
Differences in Middle Eastern and Western
Management
Adapted from Table 135 Differences in Middle
Eastern and Western Management
31
Differences in Middle Eastern and Western
Management
Adapted from Table 135 Differences in Middle
Eastern and Western Management
32
Leadership in the International Context
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

33
Recent Findings and Insights About Leadership
Transformational, Transactional, and Charismatic
Leadership

• Transformational leaders are characterized by
  four interrelated factors

Idealized Influence

• Transformational leaders are a 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

34
Recent Findings and Insights About Leadership
Transformational, Transactional, and Charismatic
Leadership

• Transformational leaders are characterized by
  four interrelated factors

Idealized Influence

• These leaders are extremely effective in
  articulating their vision, mission, and beliefs
  in clear-cut ways, thus providing an easy-to
  understand sense of purpose regarding what needs
  to be done

Inspirational Motivation
35
Recent Findings and Insights About Leadership
Transformational, Transactional, and Charismatic
Leadership
Transformational leaders are characterized by
four interrelated factors
Idealized Influence

• Transformational leaders are able to get their
  followers to question old paradigms and to accept
  new views of the world regarding how things now
  need to be done

Inspirational Motivation
Intellectual Stimulation
36
Recent Findings and Insights About Leadership
Transformational, Transactional, and Charismatic
Leadership

• Transformational leaders are characterized by
  four interrelated factors

Idealized Influence

• These leaders are able to diagnose and elevate
  the needs of each of their followers through
  individualized consideration, thus furthering the
  development of these people

Inspirational Motivation
Intellectual Stimulation
Individualized Consideration
37
Recent Findings and Insights About Leadership
Transformational, Transactional, and Charismatic
Leadership

• Four other types of leaders are less effective
  than transformational leaders

Clarifies what needs to be done, provides psychic
and material rewards to those complying with his
or her directives
Contingent Reward (CR) Leader
Monitors follower performance and takes
corrective action when deviations from standards
occurs
Active Management-by-Exception (MBE-A) Leader
Passive Management-by-Exception (MBE-P) Leader
Takes action or intervenes in situations only
when standards are not met
Laissez-Faire (LF) Leader
Avoids intervening or accepting responsibility
for follower actions
38
An Optimal Profile of Universal Leadership
Behaviors
Istransformational CRContingent
Reward MBE-AActive Management-by-Exception MBE-P
Active Management-by-Exception LFLaissez-Faire
Is
CR
MBE-A
MBE-P
Frequency
LF
Adapted from Figure 135 An Optimal Profile of
Universal Leadership Behaviors
McGraw-Hill/Irwin
39
Qualities Most Demanded in Advertisements for
European Executives
Adapted from Table 136 Qualities Most Demanded
in Advertisements for European Executives
40
Qualities Most Demanded in Advertisements for
European Executives
Adapted from Table 136 Qualities Most Demanded
in Advertisements for European Executives
41
Rankings of the Most Important Leadership
Attributes
Adapted from Table 137 Rankings of the Most
Important Leadership Attributes by Region and
Country Cluster
42
Rankings of the Most Important Leadership
Attributes
Adapted from Table 137 Rankings of the Most
Important Leadership Attributes by Region and
Country Cluster
43
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

44
Leadership Tips for Doing Business inAffective
and Neutral Cultures
45
Leadership Tips for Doing Business inAffective
and Neutral Cultures
46
Leadership Tips for Doing Business inAffective
and Neutral Cultures
47
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.
48
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.

49
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

50
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.