1. Leadership Across Cultures
chapter thirteen
Leadership Across Cultures
McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.

2. Chapter Outline Management theories: Theories X, Y, and Z
Leadership styles: authoritarian, paternalistic, participative, laissez-faire
The managerial grid
Motivating Japanese and U.S. workers
Japanese vs. U.S. Leadership Styles
Overview
Theory Z in detail

3. Chapter Outline (2) Leadership in China
Transformational leadership vs. other leadership styles
Transactional
Management-by-exception (active and passive)
Laissez faire
The GLOBE study of international leadership
Characteristics of successful global entrepreneurs

4. Theory X and Theory Y Managers
Theory X Manager: 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 Y Manager: A manager who believes that under the right conditions people will work hard and will seek increased responsibility and challenge.

5. Theory Z Managers
Theory Z Manager: A manager who believes that workers seek opportunities to participate in management and are motivated by teamwork and responsibility sharing.
Combination of Theory Y and Japanese management techniques
Emphasizes mutual commitment between the organization and the employee
Theory developed by William Ouchi

6. Leadership Styles Leadership Behaviors and Styles:
Authoritarian: use of work-centered behavior designed to ensure task accomplishment.
Paternalistic: use of work-centered behavior coupled with protective employee centered concern
Participative: use of both work or task centered and people centered approaches to leading subordinates.
Laissez-faire: The manager avoids taking action and does not accept responsibility for the actions of subordinates

7. Leader-Subordinate Relations Authoritarian Leaders

8. Leader-Subordinate Relations Paternalistic Leaders

9. Leader-Subordinate Relations Participative Leaders
Continued interaction and exchange of information between
leader and subordinates and among subordinates.

10. Managerial Grid 9, 5 Management Style = Paternalistic Participative
Authoritarian
Laissez-faire

11. The Managerial Grid Motivating Japanese Workers
Japanese workers with high achievement motivation performed best when a participative leadership style was used.
Japanese workers with low achievement motivation
Performed best when an authoritarian leadership style was used
By the end of the study, a participative leadership style was the second most effective style
A laissez-faire leadership style was not effective with either type of workers.
Results for U. S. workers have been similar.

12. Leadership in Japan
Japanese managers and employees have a high need for safety and security
Japanese managers also have a strong belief in the ability of subordinates to take initiative and exercise leadership
Managers in English-speaking countries have an even stronger belief in the ability of subordinates to take initiative
Japanese executives often give ambiguous instructions and expect subordinates to fill in the details

13. Leadership in Japan (2)
Japanese managers focus more on problems. U.S. managers focus more on opportunities.
The percentage of employees in Japan who have lifetime employment is 30% or less, and declining
Lifetime employment is restricted to permanent, full-time employees of large companies. These employees are usually male.
Ouchi’s Theory Z (Table 13.4, page 443)

14. Leadership in Japan (3)
How senior managers process information and learn:
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 tend to use variety reduction—limiting uncertainty and focusing action on a limited number of alternatives.

15. Leadership in China Three factors used in a leadership study
Individualism: The importance of self-sufficiency and personal accomplishments
Collectivism: willingness to subordinate personal goals to those of the work group with an emphasis on sharing and group harmony
Confucianism: Measured by the importance of societal harmony, virtuous interpersonal behavior, and personal and interpersonal harmony

16. Leadership in China (2)
A new generation of Chinese managers is emerging whose work values differ from those of former managers
Younger managers are
more individualistic than older managers
less committed to collectivism and Confucianism than older managers

17. Transactional and Transformational Leadership
Transactional leaders exchange rewards for effort and performance and work on a “something for something” basis (also called contingent reward)
Transformational leaders are visionary agents with a sense of mission who are capable of motivating their followers to accept new goals and new ways of doing things

18. Characteristics of Transformational Leaders
Idealized influence – charisma. Ability to get their followers to accept a common purpose or vision
Inspirational motivation – an easy-to-understand sense of purpose regarding what should be done.
Intellectual stimulation – giving people a new paradigm or world view
Individualized consideration – identify development needs and see that they are met.

19. Management by Exception
Management-by-Exception - Active: The manager monitors performance and takes corrective action when deviations from standards occur
Management-by-Exception - Passive: The manager intervenes in situations only when a problem is called to his attention

20. Universal Leader Behaviors

21. Leader Behaviors in Decreasing Order of Effectiveness
Transformational
Transactional (contingent reward)
Management by exception – active
Management by exception – passive
Laissez faire
This list is based on research in 8 countries.
The way a leadership style is applied varies according to a country’s culture.

22. Recent Findings about Leadership
Ads for management positions in western Europe
Great differences among countries regarding their leadership requirements
All countries expected executive applicants to have good social and personal qualities
Culture clusters and leader effectiveness
Effective leader behaviors tend to vary by cultural cluster
Post-Communist countries put greater emphasis on administrative skills than other countries.

23. Rankings of Leadership Attributes

24. Styles of International Leadership (GLOBE study)
Charismatic/Value-Based leadership captures the ability of leaders to inspire, motivate, and encourage high performance outcomes from others based on a foundation of core values.
Team-Oriented leadership places emphasis on effective team building and implementation of a common goal among team members

25. Styles of International Leadership (2)
Participative leadership reflects the extent to which leaders involve others in decisions and their implementation.
Humane-Oriented leadership comprises supportive and considerate leadership.
Autonomous leadership refers to independent and individualistic leadership behaviors.
Self-Protective leadership “focuses on ensuring the safety and security of the individual and group through status-enhancement and face-saving.”

26. Leadership Attributes that Work in Most Cultures (universal)
Integrity: being trustworthy, just, honest
Having foresight and planning ahead
Being positive, dynamic, motivating, encouraging, and building confidence
Communicating and being informed
Being a coordinator and team integrator

27. Differences in Leadership Attributes across Cultures
Most other leadership attributes work well in some cultures but not in others.
Two different collectivist approaches
Nordic and Scandinavian countries: Participative and self-protective leadership are valued most highly.
East Asia: Charismatic/values-based and team-oriented leadership are valued most highly.

28. Cross-Cultural Comparison

29. Why Start-up Businesses Fail
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.

30. Key Personal Characteristics Of Entrepreneurs
Are more creative and innovative than non-entrepreneurs
Do not need structure, support, or an organization to guide their thinking
See things differently and add value to products in new ways
Are willing to take personal and business risks, and to do so in visible ways

31. Key Personal Characteristics Of Entrepreneurs (2)
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
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.