LEADERSHIP ACROSS CULTURE

DongWoo, Carlos, Warren

Leadership Across Cultures Foundation for Leadership

Leadership in the International Context

Recent Findings and Insights About

Leadership

Case: An Offer from Down Under

Foundation for Leadership What is leadership???

Foundation for Leadership Leadership: The process of influencing

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

Foundation for Leadership: The Manager-Leader Paradigm

Foundation for Leadership: The Manager-Leader Paradigm

Foundation for Leadership: The Manager-Leader Paradigm

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.

Foundation for Leadership: Philosophical Background

Theory X managerBelieves that people are basically lazy and

that coercion and threats of punishment often are necessary to get them to work.

Foundation for Leadership: Philosophical Background

Theory Y managerBelieves that under the right conditions

people not only will work hard but will seek increased responsibility and challenge.

Foundation for Leadership: Philosophical Background

Theory Z managerBelieves that workers seek opportunities to

participate in management and are motivated by teamwork and responsibility sharing.

Foundation for Leadership: Leadership Behaviors and Styles

Foundation for Leadership: The Managerial Grid Performance

Four areas relevant to leadership1. Capacity for Leadership and Initiative

- Theory X or Y

2. Sharing Information and Objectives- Leader-Subordinate Interactions (Figure 13-1)

3. Participation

4. Internal or External Control(External: Reward, Punishment)

Discussion Is there any relationship between

company size and European managers’ attitude toward participative leadership style?

There was more support among manager in small firms than in large ones regarding the belief that individuals have a capacity for leadership and initiative

However, respondent from larger firms were more supportive of sharing information and objectives, participation, and use of internal control.

Japanese vs. U.S. Leadership Style

Philosophical Dimension

Japanese USA

Employment Layoff are rare Layoff are common

Promotion Very slow Very fast

Career paths Very general Very specialized

Decision making Group Individual

Control mechanism Very implicit Very explicit

Responsibility Shared collectively Assigned to individuals

Concern for employees

Whole life Work life

Another Difference Variety Amplification

Japanese executives are taught and tend to use variety amplification – the creation of uncertainty and the analysis of many alternatives regarding future action

Variety Reduction

U.S. executives are taught and tend to use variety reduction – the limiting of uncertainty and the focusing of action on a limited number of alternatives

Differences in Middle Eastern and Western Management

Adapted from Table 13–5: Differences in Middle Eastern and Western Management

Differences in Middle Eastern and Western Management

Adapted from Table 13–5: Differences in Middle Eastern and Western Management

Middle Eastern vs. Western Europe Management

Management Dimensions

Middle Eastern Western

Leadership Highly authoritarian Less emphasis on leader’s personality

Organizational structure

Highly bureaucratic Less bureaucratic

Decision making At the highest level of management

Modern tools of decision making

Performance evaluation and control

Informal control. Lack of evaluation systems.

Advanced control system

Personnel policies Heavy reliance on personal contacts

Sound personnel management policies

Communication Friendship intense and binding

Friendship not intense and binding

Discussion

Different leadership from different culture.

Korea / China

USA Europe

Leadership approach in developing countries

Older Current New

Individualism Low Low High

Collectivism High High Low

Confucianism High High Low

• Social Reform Era

1. Openness and Freedom2. Western Societal influences

China

Leadership approach in developing countries

India - similar to Anglo-Americans toward capacity for leadership and initiative, participation, and internal control(Great Britain)- but different in sharing information and objectives

Peru - much closer to leadership in the United States than previously assumed

*Developing countries may be moving toward a more participative leadership style

An Optimal Profile of Universal Leadership Behaviors

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Adapted from Figure 13–5: An Optimal Profile of Universal Leadership Behaviors

Effective

EffectiveI’s–transformational

CR–Contingent Reward

MBE-A–Active Management-by-Exception

MBE-P–Passive Management-by-Exception

LF–Laissez-Faire

Passive Active

Frequ

ency

I’s

CR

MBE-A

MBE-P

LF

Transformational leaders Four interrelated factors:

1. Idealized Influence

2. Inspirational Motivation

3. Intellectual Stimulation

4. Individualized ConsiderationTransformational leadershiphttp://www.youtube.com/watch?v=vI8GCfbdigI

Example of transformational leadershiphttp://www.youtube.com/watch?v=hRiW_RNuxus

Exercise

Role Playing

: Manage your employees who is constantly late for meetings.

Leader Types Laissez-faire leader: This leader avoids intervening or

accepting responsibility for follower actions. MEB-P -Passive Management-by-exception: This leader

takes action or intervenes in situations only when standard are not met.

MBE-A–Active Management-by-Exception: This individual monitors follower performance and takes corrective action when deviation from standards occur.

CR–Contingent Reward. This leader clarifies what needs to be done and provides both psychic and material rewards to those who comply with his or her directives.

Transformational leaders. This leaders are visionary agents with a sense of mission who are capable of motivating their followers to accept new goals and new ways of doing things.

Discuss

Is effective leadership behavior universal, or does it vary from culture to culture?

Rankings of the Most Important Leadership Attributes

Adapted from Table 13–7: Rankings of the Most Important Leadership Attributes by Region and Country Cluster

Rankings of the Most Important Leadership Attributes

Adapted from Table 13–7: Rankings of the Most Important Leadership Attributes by Region and Country Cluster

Authentic Leadership

Four distinct characteristics of authentic leaders

1. They do not fake their actions

2. They are driven from internal forces (not external

rewards)

3. They are unique and guide based on personal

beliefs, not other’s orders

4. They act based on individual passion and values

Discuss

How are authentic leaders different from transformational leaders?

An Offer from Down Under

Gandriff Corp. is a successful retail chain in the Midwest. Wants to expand!

Australian investors offer $100 million to help set up down under.

Operations will be run by Gandriff. Gandriff thinks Europe will have better

growth. Australians offer another $100m if

Australia if first.

An Offer from Down Under

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.

Leadership Across Cultures

Any questions?