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International Management

© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

© 2018 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Chapter 13

Leadership across Cultures

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Learning Objectives

Describe the basic philosophic foundation and styles of managerial leadership

Examine the attitudes of European managers toward leadership practices

Compare and contrast leadership styles in Japan with those in the United States

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Learning Objectives (continued)

Review leadership approaches in China, the Middle East, and developing countries

Examine recent research and findings regarding leadership across cultures

Discuss the relationship of culture clusters and leader behavior on effective leadership practices, including increasing calls for more responsible global leadership

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Effective Global Leadership

Essential competency of leading MNCs

Helps companies enter and operate in new markets

Achieved through the use of structured programs that:

Are designed to develop skills and capabilities

Help the firms become more culturally sensitive, adaptable, and able to effectively manage in challenging global environments

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Leadership

Process of influencing people to direct their efforts toward the achievement of some particular goal or goals

Leaders and managers should:

Develop skills in effective communication, planning, organizing, and problem solving

Exhibit the ability to focus on the future while maintaining current organizational trends

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Table 13.1 – Perceived Differences: Managers versus Leaders

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International Leadership

Areas that help compare the foundations

Philosophical grounding of how leaders view their subordinates

Theory X, theory Y, and theory Z

Leadership approaches as reflected by autocratic-participative behaviors of leaders

Authoritarian, paternalistic, and participative

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Philosophical Assumptions of Theory X Managers

Workers do not like to work and will avoid it whenever possible

Workers have little ambition, try to avoid responsibility, and like to be directed

Primary need of employees is job security

Use of coercion, control, and threats of punishment is necessary

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Philosophical Assumptions of Theory Y Managers

Expenditure of physical and mental effort at work is as natural to people as resting or playing

People will exercise self-direction and self-control if committed to the goals

Under proper conditions, the average human being learns not only to accept but to seek responsibility

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Philosophical Assumptions of Theory Y Managers (continued)

Commitment to objectives relies on the rewards associated with their achievement

Capacity to exercise a relatively high degree of imagination, ingenuity, and creativity is widely distributed throughout the population

Intellectual potential of the average human being is only partially tapped under conditions of modern industrial life

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Philosophical Assumptions of Theory Z Managers

People are motivated by a strong sense of commitment to be part of a greater whole

Employees seek out responsibility and look for opportunities to advance in an organization

Employees who learn different aspects of the business will be in a better position to contribute to the broader goals of the organization

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Philosophical Assumptions of Theory Z Managers (continued)

Organization will engender in employees strong bonds of loyalty, making the organization more productive and successful

By making commitments to employees’ security through lifetime or long-term employment

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Types of Leadership

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Authoritarian leadership

Use of work-centered behavior designed to ensure task accomplishment

Paternalistic leadership

Use of work-centered behavior coupled with a protective employee-centered concern

Participative leadership

Use of both work- or task-centered and people-centered approaches to leading subordinates

Figure 13.1 – Leader-Subordinate Interactions

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Figure 13.2 – The Managerial Grid

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Areas Relevant to Leadership

Help identify the attitudes toward leadership practices across countries by investigating:

Capacity for leadership and initiative

Sharing information and objectives

Participation

Internal control

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Role of Level, Size, and Age on European Managers' Attitudes toward Leadership

Higher-level managers tend to express more democratic values than lower-level managers in some countries

Company size tends to influence the degree of participative-autocratic attitudes

Younger managers are more likely to have democratic values in terms of:

Leadership and initiative

Sharing information and objectives

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Japanese Leadership Approaches

Paternalistic

Have greater belief in the capacity of subordinates for leadership and initiative

People express attitudes toward the use of participation to a greater degree than others

Above average in sharing information and objectives and using internal control

Place a strong emphasis on ambiguous goals

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Japanese Leadership Approaches (continued)

Benefits

Leader maintains stronger control of the followers

Manager ensures that the personnel are prepared to deal with any situation and all its ramifications

Leader maintains order and provides guidance

Drawback

Subordinates spend a lot of time overpreparing their assignments

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Table 13.4 – Japanese versus U.S. Leaderships Styles

Source: Adapted from William Ouchi, Theory Z: How American Business Can Meet the Japanese Challenge (Reading, MA: Addison-Wesley, 1981).

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Variety Amplification and Variety Reduction

Variety amplification: Creation of uncertainty and the analysis of many alternatives regarding future action

Used by Japanese managers

Variety reduction: Limiting of uncertainty and the focusing of action on a limited number of alternatives

Used by U.S. managers

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Findings of Research on Emerging Leaders in China

Show that the new generation group:

Scored significantly higher on individualism than the current and older generation groups

Scored significantly lower on collectivism and Confucianism than the other two groups

Show that leadership is culturally influenced

Greater exposure to Western societal influences may result in leadership styles similar to those of Western managers

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Table 13.5 – Differences between Middle Eastern and Western Management

Source: From M. K. Badawy, “Styles of Mideastern Managers,” California Management Review 22, no. 3 (Spring 1980), pp. 51–58.

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Table 13.5 – Differences between Middle Eastern and Western Management (continued)

Source: From M. K. Badawy, “Styles of Mideastern Managers,” California Management Review 22, no. 3 (Spring 1980), pp. 51–58.

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Leadership Approaches in India

Focus should be on individuals and maintaining awareness of the tasks that need to be completed

Indians and the Anglo-Americans are:

Similar in attitudes toward capacity for leadership and initiative, participation, and internal control

Different in sharing information and objectives

Show that participative leadership may be common and effective in developing countries

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Leadership Approaches in Latin America

Transitional nature of managers within the region increases as globalization increases

Mexico – Combination of authoritarian and participative behaviors

Chile, Argentina, and Bolivia – Authoritarian

Peru – Style is closer to those in the U.S. than previously assumed

Participative styles may gain importance as countries become economically advanced

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Transformational, Transactional, and Charismatic Leadership

Transformational leaders: Motivate followers to accept new goals and new ways of doing things

Transactional leaders: Exchange rewards for effort and performance

Charismatic leaders: Inspire and motivate employees through charismatic traits and abilities

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Findings and Insights about Leadership

Research has discovered that:

Much more universalism in leadership is present than believed previously

Most effective managers are transformational leaders and are characterized by four interrelated factors (4 I’s)

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4 I’s

Idealized influence

Inspirational motivation

Intellectual stimulation

Individualized consideration

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Qualities for Successful Leaders

Ability to cooperate

Independence

Leadership ability

Ability to take initiatives

Aim and result orientation

Creativity

Ability to motivate and inspire others

Business orientation

Age

Extrovert personality

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Qualities for Successful Leaders (continued)

Customer ability

Analytic Ability

Ability to communicate

High level of energy

Responsibility

Enthusiasm and involvement

Organization skills

Team builder

Self-motivated

Flexibility

Precision

Dynamic personality

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Leader Behavior, Leader Effectiveness, and Leading Teams

Culture is vital in explaining how leaders act in order to be effective:

In affective cultures, such as the United States, leaders tend to exhibit their emotions

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

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Cross-Cultural Leadership: Insights from the GLOBE Study

Leadership behavior can be categorized into:

Charismatic/value-based: Captures the ability of leaders to inspire, motivate, and encourage high performance outcomes from others based on a foundation of core values

Team-oriented: Emphasizes effective team building and implementation of a common goal among team members

Participative: Involves others in decisions and decision implementation

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Cross-Cultural Leadership: Insights from the GLOBE Study (continued)

Humane-oriented: Comprises supportive and considerate leadership

Autonomous: Independent and individualistic leadership behaviors

Self-protective: Ensures safety and security of the individual and group through status-enhancement and face-saving

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Relationship between Cultural Values and Leadership Attributes

GLOBE researchers concluded the following:

Collectivism I values (Sweden and other Nordic and Scandinavian countries) were likely to view Participative and Self-Protective leadership behaviors favorably

In-Group Collectivism II values (Philippines and other East Asian countries) were positively related to Charismatic/Value-Based leadership and Team-Oriented leadership

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Relationship between Cultural Values and Leadership Attributes (continued 1)

Gender Egalitarian values (Hungary, Russia, and Poland) were positively associated with Participative and Charismatic/Value-based leader attributes

Performance Orientation values (Switzerland, Singapore, and Hong Kong) were positively associated with Participative and Charismatic/Value-Based leader attributes

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Relationship between Cultural Values and Leadership Attributes (continued 2)

Future Orientation values (Singapore) were positively associated with Self-Protective and Humane-Oriented leader attributes

Societal Uncertainty Avoidance values (Germany, Denmark, and China) were positively associated with Team-Oriented, Humane-Oriented, and Self-Protective leader attributes

Societal Humane Orientation values (Zambia, the Philippines, and Ireland) were positively associated with Participative leader attributes

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Relationship between Cultural Values and Leadership Attributes (continued 3)

Societal Assertiveness values (the United States, Germany, and Austria) were positively associated with Humane-Oriented leader attributes

Societal Power Distance values (Morocco, Nigeria, and Argentina) were positively correlated with Self-Protective and Humane-Oriented leader attributes

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Positive Organizational Scholarship (POS)

Focuses on positive outcomes, processes, and attributes of organizations and their members

Consists of three subunits:

Enablers – Capabilities, processes, and structure of the environment

Motivations – Unselfish, altruistic, or as having the ability to contribute without self-regard

Outcomes or effects – Vitality, meaningfulness, exhilaration, and high-quality relationships

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40

Authentic Leadership

Authentic leaders possess an all-encompassing package of traits, styles, behaviors, and credits

Authentic leaders:

Do not fake their actions

Are driven from internal forces, not external rewards

Are unique and guide based on personal beliefs, not others’ orders

Act based on individual passion and values

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Authentic Leadership (continued)

Authentic leaders must possess several interrelated qualities

Positive psychological aspects

Positive morals to guide them through processes

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How are Authentic Leaders different from Traditional Leaders?

Authentic leadership focuses primarily on the internal aspects of the leader

Transformational leadership focuses on motivating others, which is a secondary concern with authentic leadership

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Ethical and Responsible Leadership

Ethical principles provide the philosophical basis for responsible business practices

Leadership defines the mechanism through which these principles become actionable

Responsible global leadership encompasses:

Values-based leadership

Ethical decision making

Quality stakeholder relationships

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Ethical and Responsible Leadership (continued)

Responsible global leadership must be based on:

Core values and credos that reflect principled business and leadership practices and high levels of ethical and moral behavior

Set of shared ideals that advance organizational and societal well-being

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Servant Leadership

Gives priority to needs of colleagues and those they serve

Qualities required

Listening, empathy, healing, awareness, persuasion, conceptualization, foresight, stewardship, growth, and building community

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Entrepreneurial Leadership and Mindset

Reasons for high failure rate for international new ventures

Lack of capital and absence of clear goals and objectives

Failure in accurate assessment of market demand and competition

International entrepreneurial leaders must possess cultural sensitivity, international vision, and global mindset

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Be the International Management Consultant

As a management consultant, what opportunities do you see for Cisco in Germany?

What are some potential benefits that companies, like Cisco, can gain by partnering with public sector entities and foreign governments of developed nations as opposed to ones in emerging nations?

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Review and Discuss

What cultures would be the most likely to perceive differences between managerial and leadership duties?

What cultures would view them as the same?

Use evidence to support your answer

Using the results of the classic Haire and associates study as a basis for your answer, compare and contrast managers’ attitudes toward leadership practices in Nordic-European and Latin-European countries

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Review and Discuss (continued 1)

Is there any relationship between company size and European managers’ attitude toward participative leadership styles?

Using the GLOBE study results and other supporting data, determine what Japanese managers believe about their subordinates

How are these beliefs similar to those of U.S. and European managers?

How are these beliefs different?

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Review and Discuss (continued 2)

A U.S. firm is going to be opening a subsidiary in Japan within the next six months

What type of leadership style does research show to be most effective for leading high-achieving Japanese? Low-achieving Japanese?

How are these results likely to affect the way that U.S. expatriates should

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