1. © 2005 Prentice-Hall, Inc. 11-1 Chapter 11 Leadership

2. © 2005 Prentice-Hall, Inc. 11-2 Learning Objectives Define leadership Understand the relationship between culture and leadership Discuss the theory of leader legitimacy and its practical importance Describe typical leadership patterns in different cultures

3. © 2005 Prentice-Hall, Inc. 11-3 Learning Objectives Understand the implications of Project GLOBE for cross-cultural leadership Identify issues that affect women becoming leaders in various cultures Consider ways that leadership is becoming more similar or different because of changes in organizations worldwide

4. © 2005 Prentice-Hall, Inc. 11-4 Leadership The influential increment over and above mechanical compliance with routine directives of the organization

5. © 2005 Prentice-Hall, Inc. 11-5 Culture and Leadership National culture Influences leadership Complex relationship between national cultural values and actual behavior in organizations Political culture Values of national political system affect organizational leadership

6. © 2005 Prentice-Hall, Inc. 11-6 Culture and Leadership Organizational culture Leaders can create, maintain, and change organizational culture Culture places constraints on leaders and shapes their behavior.

7. © 2005 Prentice-Hall, Inc. 11-7 Leadership Theories U.S. theories may not have global application Theory X and Y Leadership and management styles vary according to assumptions about human nature Ambivalent Leadership Produced by a culture with contradictory norms and values

8. © 2005 Prentice-Hall, Inc. 11-8 Cultural Assumptions of Leaders About Workers Labor relations reflect key assumptions about human nature Europe Labor relations political Based on greater social class distinctions between workers and management or ownership than in U.S. Government takes more direct role in regulating labor and management and in responsibility for worker social security concerns Because of long history of unions, higher degree of acceptance and integration of them into the economy than in the U. S.

9. © 2005 Prentice-Hall, Inc. 11-9 Cultural Assumptions of Leaders About Workers Japan Firm organizes and usually controls union Unions responsible in negotiations, abide by their contracts, strikes quite rare South America Close relationship between unions and government Many rights and benefits for workers codified in law

10. © 2005 Prentice-Hall, Inc. 11-10 PM Leadership Theory Developed in Japan P - performance function M - maintenance function Effective leader emphasizes both functions Leadership functions in different ways from situation to situation Elements of culture in which leadership takes place Specific contexts within a culture

11. © 2005 Prentice-Hall, Inc. 11-11 NT Leadership Theory Developed in India Two dimensions of effective leader behavior Nurturance (N) Task (T) Preferred leadership style provides Nurturant and Task behaviors simultaneously

12. © 2005 Prentice-Hall, Inc. 11-12 Differences in Leadership Theories Western social and positivist social science methods influenced the development of PM Theory Focus on two characteristics of leader behavior in the PM and NT theories similar to focus on task and maintenance functions found in U.S. leadership theories Difference between the PM and NT leadership theories and those developed in U.S. is cultural context conceptualized as part of theories

13. © 2005 Prentice-Hall, Inc. 11-13 Social Bases of Leader Legitimacy Weber’s Theory of Leadership Traditional authority Characteristic of Asian societies Rational authority Underpins bureaucratic organizations Charismatic authority Can erupt in all societies Most appropriate type for leaders in developing countries

14. © 2005 Prentice-Hall, Inc. 11-14 Leadership and Ethics Leaders set moral and ethical standards for organization Rational authority less ethical obligation than traditional and charismatic authority, but leadership based on rational authority still has legal and ethical requirements to meet

15. © 2005 Prentice-Hall, Inc. 11-15 Transformational Leadership Acts as teacher, role model, and inspirational figure to create conditions under which subordinates enthusiastically contribute to organization Focus on non-routine aspects of organization

16. © 2005 Prentice-Hall, Inc. 11-16 Leadership and Meaning Leaders create symbolic meaning systems Leaders interpret and shape larger culture to needs of organization

17. © 2005 Prentice-Hall, Inc. 11-17 Overseas Chinese Leadership Legitimacy of leader derives from patrimonial loyalty Variation in Mainland Chinese leadership ranges from managerial practices based on traditional values, continuation of key elements of communist industrial system, and modern capitalist management Overseas Chinese leadership style continues tradition of patriarchy

18. © 2005 Prentice-Hall, Inc. 11-18 French Administrative Leadership Unequal distribution of power and centralized decision making Consistent with bureaucratic rationality French organizations have more levels of hierarchy, more lateral segmentation into departments and work groups Many French companies paternalistic, hierarchical, but French multinational corporations increasingly decentralizing

19. © 2005 Prentice-Hall, Inc. 11-19 Project GLOBE Major long-term multi-phase, multi- method research project to study cross-cultural leadership differences and similarities among countries

20. © 2005 Prentice-Hall, Inc. 11-20 Global Leader Behavior Dimensions Transformational-charismatic Decisive, performance-oriented, a visionary, an inspiration to subordinates, willing to sacrifice for the organization Team-oriented Integrator, diplomatic, benevolent, collaborative attitude about team Self-protective Self-centered, status conscious, conflictual, procedural, a face saver

21. © 2005 Prentice-Hall, Inc. 11-21 Global Leader Behavior Dimensions Participative Delegator, encourages subordinate participation in decisions Humane Modest, compassionate Autonomous Individualistic, independent, autonomous, unique

22. © 2005 Prentice-Hall, Inc. 11-22 GLOBE Cultural Dimensions Uncertainty avoidance Extent to which members of an organization or society strive to avoid uncertainty by reliance on social norms, rituals, and bureaucratic practices to alleviate the unpredictability of future events Power distance Degree to which members of an organization or society expect and agree that power should be unequally shared

23. © 2005 Prentice-Hall, Inc. 11-23 GLOBE Cultural Dimensions Societal collectivism Degree to which organizational and societal institutional practices encourage and reward collective distribution of resources and collective action In-group collectivism Degree to which individuals express pride, loyalty, and cohesiveness in their organizations or families

24. © 2005 Prentice-Hall, Inc. 11-24 GLOBE Cultural Dimensions Gender egalitarianism Extent to which an organization or a society minimizes gender role differences and gender discrimination Assertiveness Degree to which individuals are assertive, confrontational, and aggressive in social relationships

25. © 2005 Prentice-Hall, Inc. 11-25 GLOBE Cultural Dimensions Future orientation Degree to which individuals engage in future-oriented behaviors such as planning, investing in the future, and delaying gratification Performance orientation Extent to which an organization or society encourages and rewards performance improvement and excellence Humane orientation Degree to which individuals encourage and reward others for being fair, altruistic, friendly, generous, caring, and kind

26. © 2005 Prentice-Hall, Inc. 11-26 The Meaning of Project GLOBE Findings Because each culture varies, actual leadership and leadership preferences of each culture vary Approach to leadership based on cultural values and differences in leader behavior should inform global manager's selection of leaders for specific international assignments

27. © 2005 Prentice-Hall, Inc. 11-27 The Meaning of Project GLOBE Findings International managers should interact with managers from another culture in ways that correspond with preferred leadership style in that country Strong and universal endorsement of charismatic-transformational leadership

28. © 2005 Prentice-Hall, Inc. 11-28 Women as Leaders In many parts of the world, women occupy secondary role compared to men, particularly in leadership positions in organizations Participation of women in managerial positions worldwide is likely to increase as modernization and globalization progress

29. © 2005 Prentice-Hall, Inc. 11-29 Convergence or Divergence? Most countries have preference for charismatic and transformational leadership Global corporations can change leadership in other countries Resistance of national cultures to new styles of leadership

30. © 2005 Prentice-Hall, Inc. 11-30 Implications for Managers Understanding leadership important since all managers perform leadership functions Need to assess other cultures to understand what can be changed and what is immutable Charismatic or transformational leadership styles appropriate for large organizational change efforts