Cross cultural management 3e by cullen ch14

Learning Objectives• Develop sensitivity to national cultural differences • Understand how national culture affects the choice of leader influence tactics • Understand how national cultu

Chapter 14

Leadership and Management

Behavior in Multinational

Companies

Learning Objectives

• Know the characteristics of global business leadership

• Understand traditional North American models of

• Know the characteristics of global business leadership

• Understand traditional North American models of

Learning Objectives

• Develop sensitivity to national cultural differences

• Understand how national culture affects the choice of leader influence tactics

• Understand how national culture influences

subordinates’ expectations

• Understand the role of transformational leadership in

multinational settings

• Develop sensitivity to national cultural differences

• Understand how national culture affects the choice of

leader influence tactics

• Understand how national culture influences

subordinates’ expectations

• Understand the role of transformational leadership in

multinational settings

• What makes a great leader?

• Many formal theories of leadership exist

• Most people have their own beliefs

• Leadership: process of influencing group members to achieve organizational goals

• Excellent leaders

• Motivate their employees to achieve more than

minimal requirements

• What makes a great leader?

• Many formal theories of leadership exist

• Most people have their own beliefs

Global Leadership: The New Breed

• One who has the skills and abilities to interact with and manage people from diverse cultural backgrounds

• Characteristics of a global leader

• Cosmopolitan

• Skilled at intercultural communication

• Culturally sensitive

• Capable of rapid acculturation

• One who has the skills and abilities to interact with and manage people from diverse cultural backgrounds

• Characteristics of a global leader

Global Leadership:

Characteristics

• Knowledgeable about cultural and institutional

influences on management

• Facilitator of subordinates’ intercultural performance

• A user of cultural synergy

• A promoter and user of the growing world culture

• A commitment to continuous improvement in

self-awareness and renewal

• Knowledgeable about cultural and institutional

influences on management

• Facilitator of subordinates’ intercultural performance

• A user of cultural synergy

• A promoter and user of the growing world culture

• A commitment to continuous improvement in

self-awareness and renewal

Three Classic Models:

Leadership Traits

• Are leaders born or made?

• Great-person theory: idea that leaders are born with

unique characteristics that make them quite different

from ordinary people

• Contemporary views of leadership traits do not assume that leaders are born

• Are leaders born or made?

• Great-person theory: idea that leaders are born with

unique characteristics that make them quite different

from ordinary people

• Contemporary views of leadership traits do not assume that leaders are born

Traits of Successful U.S

Leaders

• Higher intelligence and self-confidence

• More initiative

• More assertiveness and persistence

• Greater desire for responsibility and the opportunity to influence others

• A greater awareness of the needs of others

• Higher intelligence and self-confidence

• More initiative

• More assertiveness and persistence

• Greater desire for responsibility and the opportunity to influence others

• A greater awareness of the needs of others

Leadership Behaviors

• U.S perspectives on leadership behaviors

• Two major types of leadership behaviors

• Task-centered leader: focus on completing tasks by initiating structure

• Gives subordinates specific standards, schedules, and tasks

• Person-centered leader: focus on meeting the social and emotional needs of employees

• U.S perspectives on leadership behaviors

• Two major types of leadership behaviors

• Task-centered leader: focus on completing tasks by initiating structure

• Gives subordinates specific standards, schedules, and tasks

• Person-centered leader: focus on meeting the social and emotional needs of employees

Leader Decision Making Styles

• Autocratic leadership: leaders make all major decisions themselves

• Democratic leadership: leader includes subordinates in decision making

• Consultative or participative leadership: leader’s style falls midway between autocratic and democratic styles

• Autocratic leadership: leaders make all major decisions themselves

• Democratic leadership: leader includes subordinates in decision making

• Consultative or participative leadership: leader’s style falls midway between autocratic and democratic styles

Exhibit 14.1: Likert’s Four Styles of

Management

Japanese Perspectives on Leader Behaviors

• Performance-maintenance (PM) theory: balancing

task- and person-centered leader behaviors

• Performance-maintenance (PM) theory: balancing

task- and person-centered leader behaviors

Performance-Maintenance Theory

• Two dimensions of PM theory

• Performance function (P): similar to task-centered

leadership

• Two components of performance function

• Planning component: the leader works for or with subordinates to develop work procedures

• Pressure component: the leader then pressures employees to put forth more effort and to do good work

• Two dimensions of PM theory

• Performance function (P): similar to task-centered

leadership

• Two components of performance function

• Planning component: the leader works for or with subordinates to develop work procedures

• Pressure component: the leader then pressures employees to put forth more effort and to do good work

Performance-Maintenance Theory

• Maintenance function (M): similar to person-centered

• Presents behaviors that promote group stability and social interaction

• Difference between the Japanese PM approach and

the U.S perspective

• Japanese PM leader focuses on influencing groups

• U.S approach focuses on influencing individuals

• Maintenance function (M): similar to person-centered

• Presents behaviors that promote group stability and social interaction

• Difference between the Japanese PM approach and

the U.S perspective

• Japanese PM leader focuses on influencing groups

• U.S approach focuses on influencing individuals

Contingency Theory

• Assumption that different styles and different leaders

are more appropriate for different situations

• Two North American contingency theories of

leadership

• Fiedler’s theory of leadership

• Path-goal theory

• Assumption that different styles and different leaders

are more appropriate for different situations

• Two North American contingency theories of

leadership

• Fiedler’s theory of leadership

• Path-goal theory

Fiedler’s Theory of Leadership

• Proposed that managers tend to be either task- or

person-centered leaders

• Three successful contingencies of the work situation

• Leader and subordinates relationships

• Clearly defined subordinates’ tasks

• Power of the leader

• Proposed that managers tend to be either task- or

person-centered leaders

• Three successful contingencies of the work situation

• Leader and subordinates relationships

• Clearly defined subordinates’ tasks

• Power of the leader

Fiedler’s Theory of Leadership

• Effective leadership occurs when the leadership styles match the situation

• Theory suggests that task-centered leadership works

best when situation is favorable or not favorable for

leader

• If favorable, subordinates are positive about their

work—need to be told what to do

• In unfavorable situations, job requirements are

unclear, leader need to focus on getting things done

• Effective leadership occurs when the leadership styles

match the situation

• Theory suggests that task-centered leadership works

best when situation is favorable or not favorable for

leader

• If favorable, subordinates are positive about their

work—need to be told what to do

• In unfavorable situations, job requirements are

unclear, leader need to focus on getting things done

Exhibit 14.2: Predictions of Leader

Effectiveness under Different

Conditions

Path-Goal Theory

• Four leadership styles that a manager might choose

depending on the situation

• Directive

• Supportive

• Participative

• Achievement-oriented

• Four leadership styles that a manager might choose

depending on the situation

• Directive

• Supportive

• Participative

• Achievement-oriented

Exhibit 14.3: A Simplified Model of

Path-Goal Theory

Path-Goal Theory: Key Suggestions

• When subordinates have high achievement needs—

adopt the achievement-oriented style

• Subordinates with high social needs—adopt the

supportive leadership style

• When job is unstructured—adopt a directive style or an achievement-oriented style

• When subordinates have high achievement needs—

adopt the achievement-oriented style

• Subordinates with high social needs—adopt the

supportive leadership style

• When job is unstructured—adopt a directive style or an achievement-oriented style

Traits, Behaviors, and Contingencies

• No consistent leadership trait or behavior that works

best

• A successful leader must diagnose the situation and

pick the behaviors and/or develop the leadership traits that fits best

• No consistent leadership trait or behavior that works

best

• A successful leader must diagnose the situation and

pick the behaviors and/or develop the leadership traits that fits best

National Context as a Contingency for Leadership Behaviors

• Successful leadership in multinational companies

requires that managers adjust their leadership styles to fit different situations

• Successful leadership in multinational companies

requires that managers adjust their leadership styles to fit different situations

National Context as a Contingency for Leadership Behaviors

• Two steps to adjust a leadership to a multination

• Step 1: understanding what local managers do to

lead successfully in their own country

• Step 2: using this knowledge to modify one’s

leadership style

• National-context contingency model of leadership:

shows how culture and related social institutions affect

• Two steps to adjust a leadership to a multination

• Step 1: understanding what local managers do to

lead successfully in their own country

• Step 2: using this knowledge to modify one’s

leadership style

• National-context contingency model of leadership:

shows how culture and related social institutions affect

Exhibit 14.5: National-Context

Contingency Model of Leadership

The National-Context Contingency Model of Leadership

• Outlines of how leadership behaviors, traits, and

contingencies are affected by the national context:

• Leader behaviors and traits

• Subordinates’ characteristics

• Work setting

• Outlines of how leadership behaviors, traits, and

contingencies are affected by the national context:

• Leader behaviors and traits

• Subordinates’ characteristics

• Work setting

Leadership Traits and behaviors in the National Context

• GLOBE (Global Leadership and Organizational

Exhibit 14.5: Culture Contingent

Leadership Traits and Behaviors

Exhibit 14.6 Culture Free Positively and

Negatively Regarded Leadership Traits

and Behaviors from 60 countries

Exhibit 14.7: GLOBE’s Study Clusters

and Countries Included in Each Cluster

Exhibit 14.8: Culturally Contingent

Beliefs Regarding Effective Leadership

Styles

Exhibit 14.8: Culturally Contingent

Beliefs Regarding Effective Leadership

Styles

Exhibit 14.8: Culturally Contingent

Beliefs Regarding Effective Leadership

Styles

Exhibit 14.8: Culturally Contingent

Beliefs Regarding Effective Leadership

Styles

Exhibit 14.8: Culturally Contingent

Beliefs Regarding Effective Leadership

Styles

GLOBE findings

• Leadership styles vary by countries

• Team-oriented leaders are preferred in Latin European and Southern Asian countries

• Anglo and Germanic cultures prefer participative

leaders

• South Asian cultures prefer humane leader

• All countries agree that autonomous leaders and

self-• Leadership styles vary by countries

• Team-oriented leaders are preferred in Latin European and Southern Asian countries

• Anglo and Germanic cultures prefer participative

leaders

• South Asian cultures prefer humane leader

• All countries agree that autonomous leaders and

self-National Context and Preferred Leader-Influence Tactics

• Influence tactics: tactical behaviors leaders use to

Exhibit 14.9: Preferred Leader

Influence Tactics in Four Countries

National Context and Subordinates’ Expectations

• Subordinates’ expectations: expectations regarding

what leaders “should” do and what they may or may

not do

• High power-distance – autocratic leadership

• E.g., many of the Latin and Asian countries

• Low power-distance – leader be more like them

• E.g., Sweden and Norway

• Subordinates’ expectations: expectations regarding

what leaders “should” do and what they may or may

not do

• High power-distance – autocratic leadership

• E.g., many of the Latin and Asian countries

• Low power-distance – leader be more like them

• E.g., Sweden and Norway

Exhibit 14.10: Subordinates’

Expectations under Three Levels of

Power Distance

National Context and Subordinates’ Expectation

• Strong masculinity norms

• Lead to the acceptance of more authoritarian

leadership

• Strong uncertainty-avoidance norms

• Subordinates to expect the leader to provide more detail in directions

• Strong masculinity norms

• Lead to the acceptance of more authoritarian

leadership

• Strong uncertainty-avoidance norms

• Subordinates to expect the leader to provide more

detail in directions

Preference for “Specific” Leader In

Thirteen Countries

Contemporary Leadership Perspectives: Multinational Implications

• Two basic forms of leadership

• Transactional leadership: managers use rewards or punishments to influence their subordinates

• Most ordinary leaders use transactional leadership

• Two basic forms of leadership

• Transactional leadership: managers use rewards or punishments to influence their subordinates

• Most ordinary leaders use transactional leadership

Transformational Leadership

• Managers go beyond transactional leadership by

• Articulating a vision

• Breaking from the status quo

• Providing goals and a plan

• Giving meaning or a purpose to goals

• Taking risks

• Being motivated to lead

• Building a power base

• Managers go beyond transactional leadership by

• Articulating a vision

• Breaking from the status quo

• Providing goals and a plan

• Giving meaning or a purpose to goals

• Taking risks

• Being motivated to lead

• Building a power base

Transformational Leaders

• Succeed because subordinates respond to them with high levels of performance, devotion and willingness to sacrifice

• Same leadership traits may not lead to

transformational leadership in all countries

• Succeed because subordinates respond to them with

high levels of performance, devotion and willingness to sacrifice

• Same leadership traits may not lead to

transformational leadership in all countries

Exhibit 14.11: GLOBE Study and

Charismatic Leadership

Attributions and Leadership

• Emphasis on what leaders believe causes

subordinates’ behaviors

• Two key distinctions in attributions

• External attribution: factors outside the person and beyond the person’s control (e.g., natural disasters, illness, faulty equipment, etc.)

• Internal attribution: characteristics of the person

(e.g., personality, motivation, low ability, etc.)

• Emphasis on what leaders believe causes

subordinates’ behaviors

• Two key distinctions in attributions

• External attribution: factors outside the person and

beyond the person’s control (e.g., natural disasters, illness, faulty equipment, etc.)

• Internal attribution: characteristics of the person

(e.g., personality, motivation, low ability, etc.)