1. Leading Globally Leading Globally Seminar 7 Bus 476 – Intercultural Management Wendy R. Carroll, PhD.

2. Outline What is Leadership? The Leadership Theory Paradigms Global Leader Global Leaders Creating a Future – Ethics & CSR

3. TASK: Each group is to develop a list of the competencies most important for a Global Leader. Consider what these leaders need to do to be effective. TIME: 10 min preparation Deliverable: 1 group member provides an overview to the class. Group Exercise

4. Why Focus on Leadership? Interacting with.. Average happiness rating Average hrs/day Friends3.72.6 Relatives3.41.0 Spouse/Partner3.32.7 Own Children 3.32.3 Clients/customers2.84.5 Co-workers2.85.7 Alone2.73.4 Boss2.42.4 It appears that we are least happiest interacting with our boss!!

5. Scott Adams on Leadership "leadership is nature's way of removing morons from the productive flow". Source: Dilbert’s Official Website, http://www.dilbert.com/, accessed January 30, 2011. http://www.dilbert.com/

6. Origins of Leadership The latin word for the act of leading comes from “agere” meaning “to set in motion”. The Anglo-Saxon word “lead” comes from “laedere” and means “people on a journey”. Now, leader has come to mean –A person who sets ideas, people, organizations, and societies in motion. –A person who takes these ideas, people, organizations and societies on a journey. To do this, a leader must have vision, courage and influence. Leaders inspire, managers “act competently with the vision”. Source: Alder, N (2007). International Dimensions of Organizational Behaviour, 5 th Edition, p. 158.

7. Romance Trait or Competency Trait or Competency Behavior Contingency Transformational Defines leadership traits such as drive, emotional intelligence, self confidence, Intelligence, integrity, motivational Defines leadership traits such as drive, emotional intelligence, self confidence, Intelligence, integrity, motivational People oriented behaviors Task oriented behaviors People oriented behaviors Task oriented behaviors Path-goal Situational leadership model Fiedler’s Model Path-goal Situational leadership model Fiedler’s Model Transactional vs. transformational Attributing leadership Stereotyping leadership Need for situational control Attributing leadership Stereotyping leadership Need for situational control Leadership Theory Paradigms Source: McShane, 2004

8. Creating a Vision Creating a Vision Communicating the vision Communicating the vision Modeling the vision Modeling the vision Building Commitment Building Commitment Transformational Leadership Factors – The 4 I’s Idealized Influence or Charisma - Followers identify with and emulate leader - Respected and have referent power - Trusted Idealized Influence or Charisma - Followers identify with and emulate leader - Respected and have referent power - Trusted Inspirational Motivation - Leader uses symbols emotional appeals to increase awareness - Elevates followers expectations Inspirational Motivation - Leader uses symbols emotional appeals to increase awareness - Elevates followers expectations Intellectual Stimulation - Followers encouraged to question the ways things are done - Look at new ways of doing things Intellectual Stimulation - Followers encouraged to question the ways things are done - Look at new ways of doing things Individualized Consideration - Followers treated equally but equitably - Needs recognized and raised - Assignments given for development Individualized Consideration - Followers treated equally but equitably - Needs recognized and raised - Assignments given for development The 4I’s of Transformational Leadership Source: McShane, 2004

9. Theories Across Cultures Past leadership theories have not necessarily translated across cultures. For example, Hofstede concluded that participative leadership theory, which was highly encouraged in North America, did not transfer across cultures – dimensions such as collectivism vs. individualism. Some cultures want leaders to be decisive where as others look for consultation and consensus. Source: Alder, N (2007). International Dimensions of Organizational Behaviour, 5 th Edition.

10. Global Leaders Do Global leaders are expected to… –Articulate a vision that can guide employees towards achieving long-term economic value. –Inspire and motivate employees in consistent ways. –Continually create options and make decisions that impact the overall success of the company. Whereas managers act out the vision. Source: Alder, N (2007). International Dimensions of Organizational Behaviour, 5 th Edition.

11. Differences Our understanding of leadership varies… –Across cultures. –And is impacted by differences in our understanding of leadership and the ways in which we motivate and make decisions. –Continually create options and make decisions that impact the overall success of the company. Source: Alder, N (2007). International Dimensions of Organizational Behaviour, 5 th Edition.

12. What great Global Leaders have Emotional Intelligence explains 90% of the success of a leader on a global assignment. Emotional Intelligence is a set of five individual and social competencies (Goldman): –Self-awareness (understand your actions affect on other people) –Self-regulation (think before you act) –Motivation (passion to work for passion – motivated by more than money) –Empathy (ability to understand others emotional make-up) –Social Skills (build relationships and rapport) Source: Alder, N (2007). International Dimensions of Organizational Behaviour, 5 th Edition, p. 112.

13. Global Leaders Role in the Future People have begun to think that in our globally driven world that business is detached from reality. Leadership becomes the intersection between business and society. Challenges leaders for better “corporate global citizenship”. Friedman has stated that there is a “lack of global leadership” and that many CEO’s are simply “Missing in Action”. Source: Alder, N (2007). International Dimensions of Organizational Behaviour, 5 th Edition.

14. Seminar: #7 Article # 1: Global leadership success through emotional and cultural intelligences Key Concepts A global leader needs to develop global competencies, and cultural and emotional intelligences. Cultural intelligence (CI) relates to a person’s ability to operate effectively in situations that are cultural diverse. Emotional intelligence (EQ) is a set of five individual and social competencies (Goldman): –Self-awareness –Self-regulation –Motivation –Empathy –Social Skills Limitations you can’t know if you are a global manager only by the results of the CI and EQ tests. Some others factors must be taken into consideration, as experiences. Contributions A company seeking to have its leaders succeed globally must either select leaders with the appropriate skills or develops its existing leaders in those skills, particularly as they relate to emotional and cultural intelligences.

15. Article 2: Transformational leadership: An examination of cross-national differences and similarities. Key Concepts The importance of transformational leaders. Transformational leaders are developing, intellectually stimulating, and inspiring followers to transcend their own self-interest for a higher collective purpose Often leads to results above expectations Can transformational leadership be transferred from North American culture to others?...see limitations Transactional and laissez-faire are two other types of leadership, but do not provide desired results (transactional- reaches the minimum expectations, laissez-faire-does not reach minimum expectations) Limitations Very North Americanized… different cultures place different levels of importance on different leadership characteristics The poll in the article did not use enough executives from the countries that were questioned (other than USA) and did not use enough countries in general The article was based on information from the petroleum industry… a singular, very masculine environment Contributions Can increase awareness of leadership styles and help global management change their style of leadership (to transformational) Through an effective leadership style, an organization (and the employee) can reach exceptional performance levels

16. Seminar: 7 / Article 3 : Do Cross-Cultural Values Affect Multisource Feedback Dynamics? The Case of High Power Distance and Collectivism in Two Latin American Countries Key Concepts The main goal of Multi-Source Feedbacks is to improve the performance thanks to better knowledge on employee’s characteristics and cultural aspects. The study was done in Columbia and Venezuela with 501 managers. Feedback is provided by subordinates, peers, and supervisors This study revealed that HPD and collectivism influence MSF dynamics. Limitations The sample is not representative (only composed of middle to top managers with a similar background). Power in enterprise in asymmetrically distributed. In other words the force to convince others decreases with top-down. It means that it can generalize the results to low responsibility positions Contributions Organizations are more and more cultural diverse, that’s why this type of study can help them to improve the work atmosphere. The better organizations know employees; the better is the work atmosphere and the motivation of employees.

17. Article 4: Leaders without ethics in global business: Corporate psychopaths. Key Concepts Identifying and recognizing the threats of corporate psychopaths in senior management roles and how they have a strain on organizations. Limitations The article doesn’t mention who would be in charge of finding the psychopath in the organizations We don’t know what the intent is for the future The article could be damaging to corporations morale and stability amongst one another Does discrimination become an issue? Contributions They should be weary that as an Americanization of the global market continues, corporate psychopaths may be more prevalent in other countries Awareness of the issue Perhaps more rigorous testing for employees that are in cross cultural companies