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Chapter 13: Leadership Across CulturesMike Perez, Cole Underwood & Sarah Torp

ObjectivesDescribe the basic philosophic foundation & styles of managerial leadershipExamine the attitudes of European managers toward leadership practicesCompare & Contrast leadership styles in Japan with those of the USReview leadership approaches in China, the Middle East, and developing countriesExamine recent research & findings regarding leadership across culturesDiscuss the relationship of culture clusters & leader behavior on effective leadership practices, including increasing calls for more responsible global leadership

Foundation of LeadershipLeadership – The process of influencing people to direct their efforts toward the achievement of some particular goal or goals.BAM LEADERSHIPWhat would you say is the difference between a leader and a manager? Similarities?

Leadership Foundations (Pg. 432)

Leadership in the International ContextHow leaders in Europe attempt to direct or influence their subordinates? Are their approaches similar to those used in the United States?

Attitudes of European ManagersCapacity for leadership and initiative (Theory X vs. Theory Y)Sharing information and objectives: general vs. detailed, completed instructions for subordinates.Participation: leadership support for participative leadership Internal control: leader control through external vs. internal means

Philosophical BackgroundA leadership theorist Douglas McGregor started a idea that eventually developed into the X,Y,Z Theories.Theory X: 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: A manager who believes that under the right conditions people not only will work hard but will seek increased responsibility and challenge.Theory Z: A manager who believes that workers seek opportunities to participate in management and are motivated by teamwork and responsibility sharing.

Philosophical BackgroundWhat do you think is the most effective of these? Why?Easy Process

Leadership Behaviors and StylesLeaders behaviors can be translated into three different styles;Authoritarian leadershipPaternalistic leadershipParticipative leadershipWho’s your leader?

Authoritarian LeadershipAuthoritarian - use of work-centered behavior designed to ensure task accomplishment.

Paternalistic LeaderPaternalistic - use of work-centered behavior coupled with protective employee centered concern

Participative LeaderParticipative - use of both work or task centered and people centered approaches to leading subordinatesPage 436 Figure 13-1

The Managerial grid is a useful visual to chart how leadership behaviors compare with one another.Can you tell me which one of these points is an example of Participative, Paternalistic, or Authoritarian?

Japan Promotes high safety or security need

Leaders have confidence in the ability of their subordinates and use a style that allows their people to actively participate

Strong emphasis on ambiguous goals

Some believe it’s time consuming since most of the time subordinate are unsure what the leaders are asking of them & spend a great amount of time over preparing for a taskLeadership Differences in Japan & the USLarge US firms tend to be more democratic than smaller onesJapan and US managers have different philosophies on managing people (Table 13-4, p.443)Japanese executives use variety amplification  creation of uncertainty and analysis of many alternatives regarding future actionUS executives tend to use variety reduction  limiting of uncertainty and the focusing of action on a limited number of alternatives

US managers tend to limit the scope of questions and issues, emphasize one or two central aspects of that topic, identity specific employees respond to it, and focus on a goal or objective that is attainableIn contrast, Japanese managers are typically inclusive in their consideration of issues or problems, seek a large information to inform the problem, encourage all employees to engage in a solution, and aim for goals that are distant in the futureJapanese focused on problems and allowed poor performance so workers can learn from their mistakes while the US focused on opportunities and wanted to stop performance as quickly as possible

Leadership in ChinaNew generation of Chinese leaders are emerging & are different from past leaders in work valuesTested in three areas: Individualism, Collectivism & ConfucianismNew generation scored higher in individualism and lower in collectivism and ConfucianismAs the economy changes the country moves more and more toward capitalismDiscussion: Why do you think the new generation leaders are moving away from the older leaders leadership styles?

Indian Leadership Styles Indian is developing at a rapid rate as MNC’s increase investmentWorkers are more productive when managers took a high people and high participative approachImportant to focus on the individual but in order to be efficient, managers need to maintain awareness of the tasks that need to be completedStudy showed that job satisfaction increased as the leadership styles becomes more participativeDiscussion: What country’s leadership style do you support the most?

Types of LeadersTransformational Leaders: Visionary agents with a sense of mission who are capable of motivating their followers to accept new goals & new ways of doing things.Idealized 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 developmentCharismatic Leaders: Leaders who inspire & motivate employees through their charismatic traits and abilitiesTransactional Leaders: individuals who exchange rewards for effort & performance and work on a “something for something basis”

Discussion: What kind of leader is the most efficient?Best Boss Ever

Culture Clusters and Leader EffectivenessIn addition to research about universal leadership traits, there are also recent findings that show that effective leader behaviors tend to vary by cultural clusterLook at Table 13-7 on page 453Shows data from a survey of about 6,000 European middle managers’ opinions of what traits make an outstanding business leaderSimilarities between culture clusters, but none of the lists are identical

Leader Behavior, Leader Effectiveness, and Leading TeamsCulture is important in helping explain how leaders should act in order to be effectiveLeaders in affective cultures tend to exhibit their emotionsUnited StatesLeaders in neutral cultures do not tend to show their emotionsJapan and China

Leader Behavior, Leader Effectiveness, and Leading TeamsIn some cultures, people are taught to exhibit their emotion but separate those emotions from their decision-makingIn other cultures, emotions and making rational decisions are intertwinedWhat are some advantages and disadvantages of both mixing and separating emotions from decision-making?What role do you think emotions play in decision-making by American workers?

Leader Behavior, Leader Effectiveness, and Leading TeamsThe way in which managers speak to their employees can influence the outcomeIn Anglo cultures, managers raise their voices for emphasisIn Asian cultures, managers use self-control to speak at the same level, which shows respect for the other personIn Latin cultures, managers vary their tone of voice constantly to show interest and commitment to what they are saying

Cross-Cultural Leadership: Insights from the GLOBE StudyThe Global Leadership and Organizational Behavior Effectiveness (GLOBE study) is a 15-year, multi-method research program that is studying societal and organizational culture, effectiveness, and leadershipGLOBE researchers concluded that leadership behaviors can be summarized into six broad categories: Charismatic/Value-BasedTeam-OrientedParticipativeHumane-OrientedAutonomousSelf-Protective

DiscussionWhich leadership behaviors would you prefer managers in your present or future jobs to display, and why?

Universal Leadership QualitiesBeing trustworthy, just, and honest (having integrity)Having foresight and planning aheadBeing positive, dynamic, encouraging, motivating, and building confidenceBeing communicative and informedBeing a coordinator and a team integratorFuture orientation“the greater a society’s future orientation, the higher its average GDP per capita and its levels of innovativeness, happiness, confidence, and . . . competitiveness”

GLOBE Study ResultsSummary of GLOBE study’s findings:Cultural values affect leadership preferencesFuture orientation is essentialUnexpected findings: societies that valued assertiveness were positively correlated with valuing Humane-Oriented leadership

Positive Organizational Scholarship and LeadershipPositive organizational scholarship (POS) – a method that focuses on positive outcomes, processes, and attributes of organizations and their membersExample: if a firm is doing well financially due to downsizing, POS would emphasize the revenue and its potentials instead of criticizing the negative effectsEffective leaders seem to live by the POS model, as they are constantly innovating, creating relationships, striving to bring the organization to new heights, and working for the greater global good through self-improvementDo you think POS is more common in certain industries?

Authentic LeadershipDistinct Characteristics of Authentic Leaders:Do not fake their actions; they 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 valuesIncreased self-awareness differentiates authentic leaders from traditional leaders and creates a better understanding within the organization

Ethically Responsible Global LeadershipLinks leadership and corporate responsibility through responsible global leadershipValues-based leadershipEthical decision-makingMaintaining quality relationships with shareholdersScandals at corporations have led to a decrease in trust of global leadersThis has prompted some companies to go on the offensive and to develop more ethically oriented and responsible leadership practices

Entrepreneurial Leadership and MindsetWhat is the difference between a leader and an entrepreneur?An entrepreneur possesses many of the same qualities as a leader, but entrepreneurs must be opportunity seekers who are comfortable with failure and willing to accept personal and business risks.Global entrepreneurs must also possess cultural sensitivity, international vision, and global mindsets to effectively lead their venture as it confronts the challenges of doing business in other countries.

Discussion Questions:1. What cultures would be most likely to perceive differences between managerial and leadership duties? What cultures would view them as the same?2. Is there any relationship between company size and European managers’ attitude toward participative leadership styles?

Answers1. Japan would treat the positions the same. Their managing and leadership style are more group oriented than other cultures and have strong emphasis on ambiguous goals. The Middle East would view the two as different. Their leadership styles are similar to Western countries while their management styles are not.

Case StudyAn Offer from Down Under

Case Questions Will the leadership style used in the United States be successful in Australia, or will the Australians respond better to another?If the retailer goes into Europe, in which country will it have the least problem using its U.S-based leadership style? Why?If the company goes into Europe, what changes might it have to make in accommodating its leadership approach to the local environment? Use Germany as an example.

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