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Leadership Across Cultures

chapter thirteen

McGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.

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Chapter Objectives

The specific chapter objectives are:

1. DESCRIBE the basic philosophic foundation

and styles of managerial leadership2. EXAMINE the attitudes of European

managers toward leadership practices

3. COMPARE and CONTRAST leadershipstyles in Japan with those in the UnitedStates

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Specific Chapter Objectives(continued):

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 leadershippractices, including increasing calls for moreresponsible global leadership.

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Leadership Foundations

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Theories X, Y and Z (philosophicalbackground): Theory X: A manager who believes that people

are basically lazy and that coercion and threats of

punishment often are necessary to get them towork. Theory Y: A manager who believes that under the

right conditions people not only will work hard butwill seek increased responsibility and challenge.

Theory Z: A manager who believes that workersseek opportunities to participate in managementand are motivated by teamwork and responsibilitysharing.

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Managerial Beliefs about Work:Russia

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Managerial Beliefs about Work:Russia

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Leadership Behaviors and Styles: Authoritarian: use of work-centered

behavior designed to ensure task

accomplishment. Paternalistic: use of work-centered

behavior coupled with protective employeecentered concern

Participative: use of both work or taskcentered and people centered approachesto leading subordinates.

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Leadership in theInternational Context

How leaders in other countries attempt todirect or influence their subordinates.

International approaches to leadership

Research shows there are both similaritiesand differences. Most international research

has focused upon Europe, East Asia, theMiddle East, and developing countries such asIndia, Peru, Chile, and Argentina.

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European managers tend to use a participative approach.Researchers investigated four areas relevant toleadership:

1. Capacity for leadership and initiative (Theory X vs.

Theory Y)2. Sharing information and objectives: general vs.

detailed, completed instructions for subordinates.

3. Participation: leadership support for participativeleadership

4. Internal control: leader control through external vs.internal means

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Country Clusters

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The role of level, size, and age on Europeanmanagers attitudes toward leadership:

Higher level managers tend to express more

democratic values than lower-level managers insome countries; in other countries the opposite istrue.

Company size tends to influence the degree ofparticipative-autocratic attitudes

Younger managers were more likely to havedemocratic values in leadership and initiative,information sharing and objectives

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European Leadership Practices-- Conclusion

Most European managers tend to reflect moreparticipative and democratic attitudes

Organizational level, company size, and age greatlyinfluence attitudes toward leadership

Many young people from the study are now middle-aged-European managers who are highly likely to

be more participative than their older counterpartsof the 1960s and 1970s.

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Leadership in theInternational Context: Japanese

Japan is well known for its paternalisticapproach to leadership

Japanese culture promotes a high safety or

security need, which is present among homecountry-based employees as well as MNCexpatriates

Japanese managers have much greater belief

in the capacity of subordinates for leadershipand initiative than do managers in most othercountries. Only managers in Anglo-Americancountries had stronger feelings in this area

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International Leadership:Japanese vs. American

Except for internal control, large U.S. firmstend to be more democratic than small ones;profile is quite different in Japan.

Younger U.S. managers express moredemocratic attitudes than their oldercounterparts on all four leadership dimensions

Japanese and U.S. managers have different

philosophies of managing people. OuchisTheory Z combines Japanese and U.S.assumptions and approaches.

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International Leadership:Japanese vs. American

How senior managers process information andlearn:

Variety amplification: Japanese executives are

taught and tend to use variety amplification-thecreation of uncertainty and the analysis of manyalternatives regarding future action.

Variety reduction: U.S. executives tend to usevariety reductionlimiting uncertainty and focusingaction on a limited number of alternatives.

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Leadership in China

The New Generation group scored significantlyhigher on individualism than did the current and oldergeneration groups

They also scored significantly lower than the other two

groups on collectivism and Confucianism These values appear to reflect the period of relative

openness and freedom, often called the SocialReform Era, in which these new managers grew up

They have had greater exposure to Western societalinfluences may result in leadership styles similar tothose of Western managers

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Leadership in the Middle East

There may be much greater similarity between Middle Easternleadership styles and those of Western countries

Western management practices are evident in the Arabian Gulfregion due to close business ties between the West and this oil-rich area as well as the increasing educational attainment, often

in Western universities, of Middle Eastern managers Organizational culture, level of technology, level of education, and

management responsibility were good predictors of decision-making styles in the United Arab Emirates

There is a tendency toward participative leadership styles among

young Arab middle managers, as well as among highly educatedmanagers of all ages

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Leadership in OtherDeveloping Countries

Managerial attitudes in India are similar toAnglo-Americans toward capacity forleadership and initiative, participation, andinternal control, but different in sharing

information and objectives Leadership styles in Peru may be much closer

to those in the United States than previouslyassumed

Developing countries may be moving toward amore participative leadership style

Recent Leadership Findings:

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Recent Leadership Findings:Transformational, Transactional,

Charismatic

Transformational leaders: source of charisma; enjoy admiration of followers Idealized influence: Enhance pride, loyalty, and

confidence in their people; align followers by providingcommon purpose or vision that the latter willinglyaccept

Inspirational motivation: Extremely effective inarticulating vision, mission, beliefs in clear-cut ways

Intellectual stimulation: able to get followers to

question old paradigms and accept new views of world Individualized consideration: able to diagnose andelevate needs of each follower in way that furtherseach ones development

Recent Findings:

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Recent Findings:Transformational, Transactional,

Charismatic

Four other types of leadership are lesseffective than transformational: Contingent Reward: clarifies what needs to be done;

provides psychic and material rewards to those

who comply Active Management-by-Exception: monitors

follower performance and takes corrective actionwhen deviations from standards occur

Passive Management-by-Exception: intervenes insituations only when standards are met

Laissez-Faire: avoids intervening or acceptingresponsibility for follower actions

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Middle Eastern vs.Western Management

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Universal Leader Behaviors

Q li i M D d d i

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Qualities Most Demanded inEuropean Executives:

C l Cl d

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Culture Clusters andLeadership Effectiveness

Important attributes that form a concept of outstandingbusiness leader

Anglo mangers identify performance orientation, aninspirational style, having a vision, being a team

integrator, and being decisive as being the top fiveattributes

Nordic managers ranked these same five attributes asmost important but not in same order

Rankings of clusters in the North/West European region

were fairly similar Substantial differences exist within and between the

South/East European countries, countries from EasternEurope, and Russia and Georgia

R ki f

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Rankings ofLeadership Attributes

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Recent Findings

Leader Behavior, Leader Effectiveness, andLeading Teams:

One of the keys to successful globalleadership is knowing what style and behaviorworks best in a given culture and adaptingappropriately

In affective cultures, such as the United States,

leaders tend to exhibit their emotions

In neutral cultures, such as Japan and China,leaders do not tend to show their emotions

D i B i i Aff ti d

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Doing Business in Affective andNeutral Countries: Leadership Tips

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Cross-Cultural Comparison

P iti O i ti l S h l hi

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Positive Organizational Scholarshipand Leadership

Positive Organizational Scholarship (POS): Method that focuses onpositive outcomes, processes, and attributes of organizations and theirmembers.

Relates to leadership in that POS recognizes positive potential thatpeople have within.

Effective leaders seem to live by POS as constantly innovate, createrelationships, strive to bring organization to new heights, and work forgreater global good through self improvement.

Consists of three sub-units:

Enablers: 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.

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Authentic Leadership

Authentic leaders defined by an all encompassingpackage of traits, styles, behaviors, and credits.

4 Distinct Characteristics: (1) do not fake actions; trueto selves, do not adhere to external expectations; (2)

driven from internal forces not external rewards; (3)unique and guide based on personal beliefs, notothers orders; (4) act based on individual passion and

values.

Authentic leadership similar to traditional leadership,but has higher awareness; authentic leadership cancreate a better understanding within the organization.

C C lt l L d hi

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Cross-Cultural Leadership:Six Insights from the GLOBE Study

Charismatic/Value Based: captures ability ofleaders to inspire, motivate, encourage highperformance outcomes from others based onfoundation of core values

Team-oriented: emphasis on effective teambuilding and implementation of common goalamong team members

Participative: extent to which leaders involveothers in decisions and decisionimplementation

Cross C lt ral Leadership

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Cross-Cultural Leadership:Six Insights from the GLOBE Study

Humane-oriented: comprises supportiveand considerate leadership

Autonomous: independent andindividualistic leadership behaviors

Self-protective: ensures safety andsecurity of individual and group through

status enhancement and face-saving

Ethically Responsible

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Ethically ResponsibleGlobal Leadership

Linking leadership and corporateresponsibility through responsible globalleadership

Values Based Leadership

Ethical Decision Making

Quality Stakeholder Relationships

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Review and Discuss

What cultures would be the most likely toperceive differences between managerial andleadership duties? What cultures would viewthem as the same? Use evidence to support

your answer. Is there any relationship between companysize and European managers attitude towardparticipative leadership styles?

What do U.S. managers need to know aboutleadership in the international arena? Identifyand describe three important guidelines thatcan be of practical value.

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