Cross cultural management 3e by cullen ch14

Chapter 14 Leadership and Management Behavior in Multinational Companies Copyright© 2004 Thomson Learning All rights reserved Learning Objectives •• •• •• •• Know Know the the characteristics characteristics ofof global global business business leadership leadership Understand Understand traditional traditional North NorthAmerican American models models ofof leadership leadership Understand Understand the the Japanese Japanese performance-maintenance performance-maintenance model model ofof leadership leadership Be Be able able toto apply apply the the cultural-contingency cultural-contingency model model ofof leadership leadership Copyright© 2005 South-Western/Thomson Learning All rights reserved Learning Objectives •• •• •• •• Develop Develop sensitivity sensitivity toto national national cultural cultural differences differences Understand Understand how how national national culture culture affects affects the the choice choice ofof leader leader influence influence tactics tactics Understand Understand how how national national culture culture influences influences subordinates’ subordinates’expectations expectations Understand Understand the the role role ofof transformational transformational leadership leadership inin multinational multinational settings settings Copyrightâ 2005 South-Western/Thomson Learning All rights reserved Learning Objectives Understand Understand how how the the national national culture culture affects affects aa leader’s leader’s attributions attributions •• Understand Understand the the role role ofof women women global global leaders leaders for for multinationals multinationals •• Develop Develop the the ability ability toto diagnose diagnose cultural cultural situations situations and and suggest suggest appropriate appropriate leadership leadership style style toto fitfit the the situation situation Copyright© 2005 South-Western/Thomson Learning All rights reserved Leadership •• Leadership: Leadership: process process ofof influencing influencing group group members members toto achieve achieve organizational organizational goals goals •• Excellent Excellent leaders leaders •• Motivate Motivate their their employees employees toto achieve achieve more more than than minimal minimal requirements requirements •• What What makes makes aa great great leader? leader? •• Many Many formal formal theories theories ofof leadership leadership exist exist •• Most Most people people have have their their own own beliefs beliefs Copyright© 2005 South-Western/Thomson Learning All rights reserved Global Leadership: The New Breed •• One One who who has has the the skills skills and and abilities abilities toto interact interact with with and and manage manage people people from from diverse diverse cultural cultural backgrounds backgrounds •• Characteristics Characteristics ofof aa global global leader leader •• Cosmopolitan Cosmopolitan •• Skilled Skilled atat intercultural intercultural communication communication •• Culturally Culturally sensitive sensitive Capable Capable ofof rapid rapid acculturation acculturation Copyrightâ 2005 South-Western/Thomson Learning All rights reserved Global Leadership: Characteristics •• Knowledgeable Knowledgeable about about cultural cultural and and institutional institutional influences influences on on management management •• Facilitator Facilitator ofof subordinates’ subordinates’intercultural intercultural performance performance •• AAuser user ofof cultural cultural synergy synergy •• AApromoter promoter and and user user ofof the the growing growing world world culture culture •• AAcommitment commitment toto continuous continuous improvement improvement inin selfselfawareness awareness and and renewal renewal Copyright© 2005 South-Western/Thomson Learning All rights reserved Three Classic Models: A Vocabulary of Leadership •• Three Three basic basic models models ofof leadership leadership •• Leadership Leadership traits traits •• Leadership Leadership behavior behavior •• Contingency Contingency leadership leadership Copyright© 2005 South-Western/Thomson Learning All rights reserved Leadership Traits •• •• Are Are leaders leaders born born or or made? made? Great-person Great-person theory: theory: idea idea that that leaders leaders are are born born with with unique unique characteristics characteristics that that make make them them quite quite different different from from ordinary ordinary people people •• Contemporary Contemporary views views ofof leadership leadership traits traits do not not assume assume that that leaders leaders are are born born Copyright© 2005 South-Western/Thomson Learning All rights reserved Traits of Successful U.S Leaders •• •• •• •• Higher Higher intelligence intelligence and and self-confidence self-confidence More More initiative initiative More More assertiveness assertiveness and and persistence persistence Greater Greater desire desire for for responsibility responsibility and and the the opportunity opportunity toto influence influence others others •• AAgreater greater awareness awareness ofof the the needs needs ofof others others Copyright© 2005 South-Western/Thomson Learning All rights reserved Exhibit 14.10: Subordinates’ Expectations under Three Levels of Power Distance Copyright© 2005 South-Western/Thomson Learning All rights reserved National Context and Subordinates’ Expectation •• Strong Strong masculinity masculinity norms norms •• Lead Lead toto the the acceptance acceptance ofof more more authoritarian authoritarian leadership leadership •• Strong Strong uncertainty-avoidance uncertainty-avoidance norms norms •• Subordinates Subordinates toto expect expect the the leader leader toto provide provide more more detail detail inin directions directions Copyright© 2005 South-Western/Thomson Learning All rights reserved Preference for “Specific” Leader In Thirteen Countries Copyright© 2005 South-Western/Thomson Learning All rights reserved Contemporary Leadership Perspectives: Multinational Implications •• Two Two basic basic forms forms ofof leadership leadership •• Transactional Transactional leadership: leadership: managers managers use use rewards rewards or or punishments punishments toto influence influence their their subordinates subordinates •• Most Most ordinary ordinary leaders leaders use use transactional transactional leadership leadership Copyright© 2005 South-Western/Thomson Learning All rights reserved Transformational Leadership •• Managers Managers go go beyond beyond transactional transactional leadership leadership by by •• Articulating Articulating aa vision vision •• Breaking Breaking from from the the status status quo quo •• Providing Providing goals goals and and aa plan plan •• Giving Giving meaning meaning or or aa purpose purpose toto goals goals •• Taking Taking risks risks •• Being Being motivated motivated toto lead lead •• Building Building aa power power base base •• Demonstrating Demonstrating high high ethical ethical and and moral moral standards standards Copyright© 2005 South-Western/Thomson Learning All rights reserved Transformational Leaders •• Succeed Succeed because because subordinates subordinates respond respond toto them them with with high high levels levels ofof performance, performance, devotion devotion and and willingness willingness toto sacrifice sacrifice •• Same Same leadership leadership traits traits may may not not lead lead toto transformational transformational leadership leadership inin all all countries countries Copyright© 2005 South-Western/Thomson Learning All rights reserved Exhibit 14.11: GLOBE Study and Charismatic Leadership Copyright© 2005 South-Western/Thomson Learning All rights reserved Attributions and Leadership •• Emphasis Emphasis on on what what leaders leaders believe believe causes causes subordinates’ subordinates’behaviors behaviors •• Two Two key key distinctions distinctions inin attributions attributions •• External External attribution: attribution: factors factors outside outside the the person person and and beyond beyond the the person’s person’s control control (e.g., (e.g., natural natural disasters, disasters, illness, illness, faulty faulty equipment, equipment, etc.) etc.) •• Internal Internal attribution: attribution: characteristics characteristics ofof the the person person (e.g., (e.g., personality, personality, motivation, motivation, low low ability, ability, etc.) etc.) Copyright© 2005 South-Western/Thomson Learning All rights reserved Attributions and Leadership •• Once Once leader leader makes makes attribution, attribution, leader leader responds responds toto subordinate subordinate based based on on that that assumption assumption •• Fundamental Fundamental attribution attribution error: error: assumption assumption by by managers managers that that people people behave behave inin certain certain ways ways because because ofof internal internal motivations, motivations, rather rather than than outside outside factors factors •• Successful Successful leaders leaders make make the the correct correct attributions attributions Copyright© 2005 South-Western/Thomson Learning All rights reserved Global Women Leaders: The Future? •• Women Women global global leadership: leadership: spread spread ofof traits traits or or qualities qualities that that are are associated associated with with women women toto the the process process ofof leading leading organizations organizations worldwide worldwide •• “orientation “orientation toward toward more more participative, participative, interactional, interactional, and and relational relational styles styles ofof leading” leading” Copyright© 2005 South-Western/Thomson Learning All rights reserved Global Women Leaders •• Women Women leaders leaders have have skills skills toto develop develop deep deep relationship relationship toto understand understand markets markets •• More More likely likely toto provide provide unity unity toto accommodate accommodate needs needs ofof various various stakeholders stakeholders •• Better Better ability ability toto understand understand diversity diversity atat global global levels levels Copyright© 2005 South-Western/Thomson Learning All rights reserved Getting the Results: Should You Do What Works at Home? •• Cannot Cannot assume assume that that successful successful home home leadership leadership styles styles or or traits traits will will result result inin equally equally successful successful leadership leadership inin aa foreign foreign country country •• ItIt isis nevertheless nevertheless difficult difficult toto adapt adapt Copyright© 2005 South-Western/Thomson Learning All rights reserved Exhibit 14.12: Leadership Behavior and Job Performance of U.S Managers in the U.S and in Hong Kong Copyright© 2005 South-Western/Thomson Learning All rights reserved The Cultural Context and Suggested Leadership Styles •• •• High High power power distance distance –– behave behave more more autocratically autocratically High High uncertainty uncertainty cultures cultures –– remove remove ambiguity ambiguity from from work work setting setting Copyright© 2005 South-Western/Thomson Learning All rights reserved Exhibit 14.13: National Culture and Recommended Leadership Styles Copyright© 2005 South-Western/Thomson Learning All rights reserved ... about cultural cultural and and institutional institutional influences influences on on management management •• Facilitator Facilitator ofof subordinates’ subordinates’intercultural intercultural... diverse cultural cultural backgrounds backgrounds •• Characteristics Characteristics ofof aa global global leader leader •• Cosmopolitan Cosmopolitan •• Skilled Skilled atat intercultural intercultural... multinationals multinationals •• Develop Develop the the ability ability toto diagnose diagnose cultural cultural situations situations and and suggest suggest appropriate appropriate leadership leadership