Chapter 13 Leadership Across Cultures The specific objectives of this chapter are: 1. DESCRIBE the basic philosophic foundation and styles of managerial.

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Leadership Across Cultures

The specific objectives of this chapter are:

1. DESCRIBE the basic philosophic foundation and styles of managerial leadership

2. EXAMINE the attitudes of European managers toward leadership practices

3. COMPARE and CONTRAST leadership styles in Japan with those in the United States

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4. REVIEW leadership approaches in China, the Middle East, and developing countries

5. EXAMINE recent, research and findings regarding leadership across cultures


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


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Foundation for Leadership

Philosophical Background: Theories X, Y, and Z

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

Theory X ManagerTheory X Manager

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

Theory Y ManagerTheory Y Manager


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

Theory Z ManagerTheory Z Manager

Theory Y ManagerTheory Y Manager


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Leadership Behaviors and Styles

Participative Leadership

Participative Leadership

Authoritarian Leadership

Authoritarian Leadership

Paternalistic Leadership

Paternalistic Leadership

The use of work-centered behavior designed to ensure task accomplishment.

The use of work-centered behavior coupled with a protective employee centered concern.The use of both work- or task-

centered and people centered approaches to leading subordinates.

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Leader–Subordinate InteractionsLeader–Subordinate Interactions

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Adapted from Figure 13–1: Leader–Subordinate Interactions

Authoritarian Leader

Subordinate Subordinate Subordinate

One-way downward flow of information and influence from authoritarian leader to subordinates.

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Paternalistic Leader


Continual interaction and exchange of information and influence between leader and subordinates.

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Participative Leader


Continual interaction and exchange of information and influence between leader and subordinates.

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Likert’s Systems or Styles LeadershipLikert’s Systems or Styles Leadership

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

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Likert’s Systems or Styles LeadershipLikert’s Systems or Styles Leadership

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

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12

34

56

78

9

Co

nce

rn f

or

Pe

op

le/R

elat

ion

ship

s

High

Low

1 2 3 4 5 6 7 8 9

Concern for Production/Task HighLow

The Managerial GridThe Managerial Grid


Adapted from Figure 13–2: The Managerial Grid

1,1 Management StyleExertion of minimum effort to get required work done is appropriate to sustain organization membership

9,1 Management StyleEfficiency in operations results from arranging conditions of work in such a way that human elements interface to a minimum degree

5,5 Management StyleAdequate organization performance is possible through balancing the necessity to get out work with maintaining morale of people at a satisfactory level

9,9 Management StyleWork accomplishment is from committed people; interdependence through a “common stake” in organization purpose leads to relationships of trust and respect

1,9 Management StyleThoughtful attention to needs of people for satisfying relationships leads to a comfortable friendly organization atmosphere and work tempo

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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.

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Attitudes of European Managers Toward Leadership Practices

Capacity for Leadership and Initiative


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)

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Sharing Informationand Objectives


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?

Most evidence indicates European managers tend to use a participative approach. Researchers investigated four areas relevant to leadership.

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ParticipationParticipation

Does the leader support participative leadership practices?


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ParticipationParticipation

Internal ControlInternal Control

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?


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Clusters of Countries in the Haire, Clusters of Countries in the Haire, Ghiselli, and Porter StudyGhiselli, and Porter Study

Adapted from Table 13–3: Clusters of Countries in the Haire, Ghiselli, and Porter Study

(Believe workers have more initiative, more autocratic, more external rewards)

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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


The Role of Level, Size, and Age on European Managers’ Attitudes Toward Leadership

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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


Conclusion About European Leadership Practices

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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

Japanese Leadership Approaches

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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

Differences Between Japanese and U.S. Leadership Styles

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Another difference between Japanese and U.S. leadership styles is how senior-level managers process information and learn

Differences Between Japanese and U.S. Leadership Styles

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

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Productivity of Japanese Groups with High-Achievement Productivity of Japanese Groups with High-Achievement Motivation under Different Leadership StylesMotivation under Different Leadership Styles


Adapted from Figure 13–3: Productivity of Japanese Groups with High-Achievement Motivation under Different Leadership Styles

80

50

01 2 3 4 5 6 7

Pro

duct

ivity

Sessions

—— 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)

—— PM Leadership Style 1,1 (low task, low people)

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Productivity of Japanese Groups with Low-Achievement Productivity of Japanese Groups with Low-Achievement Motivation under Different Leadership StylesMotivation under Different Leadership Styles


Adapted from Figure 13–4: Productivity of Japanese Groups with Low-Achievement Motivation under Different Leadership Styles

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

—— PM Leadership Style 9,9(high task, high people)

—— PM Leadership Style 1,1 (low task, low people)

—— M Leadership Style 1,9 (low task, high people)

80

50

25

0 1 2 3 4 5 67

Pro

duct

ivity

Sessions

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

Leadership in China

Measured by the importance of societal harmony, virtuous interpersonal behavior, and personal and interpersonal harmony

IndividualismIndividualism

CollectivismCollectivism

ConfucianismConfucianism

Measured by willingness to subordinate personal goals to those of the work group with an emphasis on sharing and group harmony

Measured by importance of self sufficiency and personal accomplishments

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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

Leadership in China

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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

Leadership in the Middle East

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Differences in Middle Eastern and Differences in Middle Eastern and Western ManagementWestern Management

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

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Differences in Middle Eastern and Differences in Middle Eastern and Western ManagementWestern Management

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

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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

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Recent Findings and Insights About Leadership

Transformational, Transactional, and Charismatic Leadership

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

Transformational leaders are characterized by four interrelated factors:

Idealized InfluenceIdealized Influence

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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 MotivationInspirational Motivation

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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




Intellectual StimulationIntellectual Stimulation

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Transformational, Transactional, and Charismatic LeadershipTransformational leaders are characterized by four interrelated factors:

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

Individualized ConsiderationIndividualized Consideration



Intellectual StimulationIntellectual Stimulation

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Transformational, Transactional, and Charismatic LeadershipFour other types of leaders are less effective than transformational leaders

Avoids intervening or accepting responsibility for follower actionsLaissez-Faire (LF) LeaderLaissez-Faire (LF) Leader

Contingent Reward (CR) Leader

Contingent Reward (CR) Leader

Active Management-by-Exception (MBE-A) Leader

Active Management-by-Exception (MBE-A) Leader

Passive Management-by-Exception (MBE-P) Leader

Passive Management-by-Exception (MBE-P) Leader

Takes action or intervenes in situations only when standards are not met

Monitors follower performance and takes corrective action when deviations from standards occurs

Clarifies what needs to be done, provides psychic and material rewards to those complying with his or her directives

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An Optimal Profile of Universal Leadership BehaviorsAn Optimal Profile of Universal Leadership Behaviors


Adapted from Figure 13–5: An Optimal Profile of Universal Leadership Behaviors

Effective

EffectiveI’s–transformational

CR–Contingent Reward

MBE-A–Active Management-by-Exception

MBE-P–Active Management-by-Exception

LF–Laissez-Faire

Passive Active

Frequ

ency

I’s

CR

MBE-A

MBE-P

LF

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Qualities Most Demanded in Advertisements for Qualities Most Demanded in Advertisements for European ExecutivesEuropean Executives

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

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Qualities Most Demanded in Advertisements for Qualities Most Demanded in Advertisements for European ExecutivesEuropean Executives

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

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Rankings of the Most Important Rankings of the Most Important Leadership AttributesLeadership Attributes

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

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Rankings of the Most Important Rankings of the Most Important Leadership AttributesLeadership Attributes

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

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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

Leader Behavior, Leader Effectiveness, and Leading Teams

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Leadership Tips for Doing Business inLeadership Tips for Doing Business inAffective and Neutral CulturesAffective and Neutral Cultures

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Linking leadership and corporate responsibility through “responsible global leadership” Values Based Leadership Ethical Decision Making Quality Stakeholder Relationships

Ethically Responsible Global Leadership

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.

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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.

Entrepreneurial Leadership and Mindset

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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


Key personal characteristics of entrepreneurs and strong leaders

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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


Key personal characteristics of entrepreneurs and strong leaders

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.

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Case

Road to Hell

Chapter 13 Leadership Across Cultures The specific objectives of this chapter are: 1. DESCRIBE the basic philosophic foundation and styles of managerial.

Documents

styles leadership slide

contrast leadership

effective leadership

review leadership approaches

responsible global leadership

leader behavior

theories x

likerts systems