2 Leadership Across Cultures The specific objectives of this chapter are to1. 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.
3 Leadership Across Cultures 4. REVIEW leadership approaches in China, the Middle East, and developing countries.5. EXAMINE recent research and findings regarding leadership across cultures.6. DISCUSS the relationship of culture clusters and leader behavior to effective leadership practices, including increasing calls for more responsible global leadership.
4 Foundation for Leadership The process of influencing people to direct their efforts toward the achievement of some particular goals or goal.The management-leader paradigmManagers may provide leadership and leaders perform management functions, but managers don’t perform the unique functions of leaders
6 Foundation for Leadership Theories X, Y, and Z Theory X managerBelieves that people are basically lazy and that coercion and threats of punishment often are necessary to get them to work.Theory Y managerBelieves that under the right conditions people not only will work hard but will seek increased responsibility and challenge.Theory Z managerBelieves that workers seek opportunities to participate in management and are motivated by teamwork and responsibility sharing.
8 Leadership Behaviors and Styles There are three common styles of leader behaviorAuthoritarian leadership: use of work-centered behavior designed to ensure task accomplishmentPaternalistic leadership: use of work-centered behavior coupled with protective employee centered concernParticipative leadership: use of both work or task centered and people centered approaches to leading subordinates
11 Leadership in the International Context How do leaders in other countries attempt to direct or influence their subordinates?Research shows there are both similarities and differencesMost international research has focused upon Europe, East Asia, the Middle East, and developing countries such as India, Peru, Chile, and Argentina
12 Leadership in the International Context European Managers European managers tend to use a participative approachResearchers investigated four areas relevant to leadership:Capacity for leadership and initiative: Theory X vs. Theory YSharing information and objectives: general vs. detailed, completed instructions for subordinates.Participation: leadership support for participative leadershipInternal control: leader control through external vs. internal means
13 Leadership in the International Context European Managers The role of level, size, and age on European managers’ attitudes toward leadershipHigher level managers tend to express more democratic values than lower-level managers in some countries, but in other countries the opposite is trueCompany size tends to influence the degree of participative-autocratic attitudesYounger managers are more likely to have democratic values in leadership and initiative, information sharing and objectives
14 Leadership in the International Context Japanese Managers Japan is well known for its paternalistic approach to leadershipJapanese culture promotes a high safety or security need, which is present among home country-based employees as well as MNC expatriatesJapanese managers have much greater belief in the capacity of subordinates for leadership and initiative than do managers in most other countriesOnly managers in Anglo-American countries had stronger feelings in this area
15 Leadership in the International Context Differences between Japanese and U.S. Leaderships Styles Japanese leadership styles differ from U.S. managersExcept for internal control, large U.S. firms tend to be more democratic than small onesProfile is quite different in Japan.Younger U.S. managers express more democratic attitudes than their older counterparts on all four leadership dimensionsYounger Japanese managers only for sharing information and objectives and the use of internal controlJapanese and U.S. managers have different philosophies of managing peopleOuchi’s Theory Z combines Japanese and U.S. assumptions and approaches.
16 Leadership in the International Context Differences between Japanese and U.S. Leaderships Styles Senior managers process information and learn differentlyJapanese executives are taught and tend to use variety amplificationThe creation of uncertainty and the analysis of many alternatives regarding future action.U.S. executives tend to use variety reductionThe limiting uncertainty and focusing action on a limited number of alternatives.
17 Leadership in the International Context Leadership in China Is China’s economic progress creating a new cadre of leaders with new leadership styles?Research shows thatThe “New Generation” group scored significantly higher on individualism than did the current and older generation groupsThey also scored significantly lower than the other two groups on collectivism and ConfucianismThese values appear to reflect the period of relative openness and freedom, often called the “Social Reform Era,” in which these new managers grew upThey have had greater exposure to Western societal influences which may result in leadership styles similar to those of Western managers
18 Leadership in the International Context Leadership in the Middle East Middle Eastern leadership styles are similar to those of Western countriesWestern management practices are evident in the Arabian Gulf region due to close business ties with the WestMany Arab managers attend Western universities and learn Western management approachesOrganizational culture, level of technology, level of education, and management responsibility were found to be good predictors of decision-making styles in the United Arab EmiratesThere is a tendency toward participative leadership styles among young Arab middle managers, as well as among highly educated managers of all ages
19 Differences Between Middle Eastern and Western Management
20 Leadership in the International Context Leadership in India Leadership style in India must satisfy traditional roots while at the same time be effective in a high-tech environmentManagerial attitudes in India are similar to Anglo-Americans toward capacity for leadership and initiative, participation, and internal control, but different in sharing information and objectivesParticipative leadership styles are becoming more common
21 Leadership in the International Context Leadership in Latin America As globalization increases, so does the transitional nature of managers within the regionIn Mexico, leaders tend to have authoritarian and participative behaviorsManagers in Chile, Argentina, and Bolivia also have take an authoritarian approachLeadership styles in Peru may be much closer to those in the United States than previously assumed
22 Recent Findings and Insights about Leadership Transformational leadersVisionary agents with a sense of mission who are capable of motivating their followers to accept new goals and new ways of doing things.A variation of this is the charismatic leaderInspires and motivates employees through charismatic traits and abilities.Transactional leadersIndividuals who exchange rewards for effort and performance and work on a “something for something” basis.
23 Recent Findings and Insights about Leadership Bass found that the most effective managers were transformational leaders who are characterized byIdealized influence: Enhance pride, loyalty, and confidence in their people; align followers by providing common purpose or vision that the latter willingly acceptInspirational motivation: Extremely effective in articulating vision, mission, beliefs in clear-cut waysIntellectual stimulation: able to get followers to question old paradigms and accept new views of worldIndividualized consideration: able to diagnose and elevate needs of each follower in way that furthers each one’s development
24 Recent Findings and Insights about Leadership Four other types of leadership are less effective than transformational leadersContingent Reward: clarifies what needs to be done; provides psychic and material rewards to those who complyActive Management-by-Exception: monitors follower performance and takes corrective action when deviations from standards occurPassive Management-by-Exception: intervenes in situations only when standards are metLaissez-Faire: avoids intervening or accepting responsibility for follower actions
25 An Optimal Profile of Universal Leadership Behaviors
26 Qualities Most Demanded in Advertisements for European Executives
27 Recent Findings and Insights about Leadership Culture clusters and leader effectivenessEffective leader behaviors tend to vary by cultural clusterAnglo mangers identify performance orientation, an inspirational style, having a vision, being a team integrator, and being decisive as being the top five leadership attributesNordic managers ranked these same five attributes as most important but not in same orderRankings of clusters in the North/West European region were fairly similarSubstantial differences exist within and between the South/East European countries, countries from Eastern Europe, and Russia and Georgia
28 Rankings of the Most Important Leadership Attributes by Region and Country Cluster
29 Recent Findings and Insights about Leadership Leader behavior, leader effectiveness, and leading teamsOne of the keys to successful global leadership is knowing what style and behavior works best in a given culture and adapting appropriatelyIn affective cultures, such as the United States, leaders tend to exhibit their emotionsIn neutral cultures, such as Japan and China, leaders do not tend to show their emotions
30 Leadership Tips for Doing Business in Affective and Neutral Countries
31 Recent Findings and Insights about Leadership Cross-Cultural Leadership: Insights from the GLOBE StudyLeadership behavior can be categorized intoCharismatic/Value Based: captures the ability of leaders to inspire, motivate, and encourage high performance outcomes from others based on a foundation of core valuesTeam-oriented: emphasis on effective team building and implementation of common goal among team membersParticipative: extent to which leaders involve others in decisions and decision implementation
32 Recent Findings and Insights about Leadership Humane-oriented: comprises supportive and considerate leadershipAutonomous: independent and individualistic leadership behaviorsSelf-protective: ensures safety and security of individual and group through status enhancement and face-saving
33 Cross-Cultural Comparison: Future Orientation and Competitiveness
34 Recent Findings and Insights about Leadership Positive Organizational Scholarship (POS)Focuses on positive outcomes, processes, and attributes of organizations and their members.POS recognizes the positive potential that people have withinConstructive behaviors will yield desired outcomes
35 Recent Findings and Insights about Leadership POS consists of three sub-unitsEnablers: could be capabilities, processes or methods, and structure of the environment, which are all external factors.Motivations: focus is inward (such as unselfish or altruistic).Outcomes or effects: accentuate vitality, meaningfulness, high-quality relationships.Effective leaders seem to live by POS as they constantly innovate, create relationships, strive to bring organization to new heights, and work for greater global good through self improvement35
36 Recent Findings and Insights about Leadership Authentic leaders are defined by an all encompassing package of traits, styles, behaviors, and creditsAuthentic leadersdo not fake actions; are true to themselves, and do not adhere to external expectationsAre driven from internal forces not external rewardsare unique and guide based on personal beliefs, not others’ ordersact based on individual passion and valuesAuthentic leadership is similar to traditional leadership, but has higher awarenessAuthentic leadership can create a better understanding within the organization
37 Recent Findings and Insights about Leadership Ethical, Responsible, and Servant LeadershipLinking leadership and corporate responsibility through responsible global leadershipValues Based LeadershipEthical Decision MakingQuality Stakeholder Relationships
38 Review and DiscussWhat cultures would be the most likely to perceive differences between managerial and leadership duties? What cultures would view them as the same? Use evidence to support your answer.Is there any relationship between company size and European managers’ attitudes toward participative leadership styles?What do U.S. managers need to know about leadership in the international arena? Identify and describe three important guidelines that can be of practical value.