Chapter 15 Leadership and Management Behavior in Multinational Companies © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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, the the Indian Indian nurturant-task-oriented nurturant-task-oriented model, model, and and Afro-centric Afro-centric model model ofof leadership leadership Be Be able able toto apply apply the the cultural-contingency cultural-contingency model model ofof leadership leadership © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Learning Objectives •• Develop Develop sensitivity sensitivity toto national national cultural cultural differences differences inin preferred preferred leadership leadership traits traits and and behaviors behaviors •• 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 © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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 © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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 © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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 © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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 © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Global Leadership: The New Breed •• Emotional Emotional intelligence: intelligence: refers refers toto the the ability ability ofof the the global global leader leader toto accurately accurately perceive perceive his his or or her her emotions emotions and and toto use use those those emotions emotions toto solve solve problems problems and and toto relate relate toto others others © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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 © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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 © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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 © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Preference for “Specific” Leader In Thirteen Countries © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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 © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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 © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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 © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Exhibit 15.11: GLOBE Study and Charismatic Leadership © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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.) © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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 © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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” © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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 © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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 © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Exhibit 15.12: Leadership Behavior and Job Performance of U.S Managers in the U.S and in Hong Kong © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 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 © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Exhibit 15.13: National Culture and Recommended Leadership Styles © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Conclusion •• All All multinational multinational managers managers should should strive strive toto become become global global leaders leaders •• Chapter Chapter provides provides important important information information on on the the nature nature ofof leadership leadership and and understanding understanding ofof leadership leadership inin the the international international setting setting •• Chapter Chapter reviews reviews classic classic leadership leadership theories theories and and applies applies them them toto the the international international settings settings © 2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part ... 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