LEADERSHIP AND MANAGEMENT BEHAVIOR IN MULTINATIONAL COMPANIES CHAPTER 14 LEADERSHIP AND MANAGEMENT BEHAVIOR IN MULTINATIONAL COMPANIES 1

INTRODUCTION Leadership: influencing group members to achieve goals Excellent leaders: motivate their employees to achieve more than minimal requirements The challenges of leadership in a multinational company 2

GLOBAL LEADERS Have skills and abilities to manage people from diverse backgrounds cosmopolitan skilled at intercultural communication culturally sensitive 3

Global leaders, continued rapid acculturators know local cultures/social institutions facilitate subordinates’ intercultural performance 4

Global leaders, continued use cultural synergy promote and use the growing world culture

THREE CLASSIC MODELS: A VOCABULARY OF LEADERSHIP Leadership traits Leader behavior Contingency leadership models 5

LEADERSHIP TRAITS Trait models of leadership: Are leaders born or made? The great person theory 6

TRAITS OF SUCCESSFUL U.S. LEADERS Higher intelligence/self confidence More initiative/assertiveness/ persistence Greater desire for responsibility and influence Greater awareness of the needs of others 7

U.S. PERSPECTIVES ON LEADERSHIP BEHAVIORS Two major types of leadership behaviors 1. Initiating structure: task-centered leaders give directions, establish standards 8

U.S. perspectives on leadership behaviors, continued 2. Focus on social and emotional needs of employees: consideration or person- centered leaders 9

LEADER DECISION MAKING STYLES Autocratic Benevolent Democratic Consultative or participative leadership style 10

JAPANESE LEADERSHIP Performance-Maintenance (PM) Theory Performance function (P) similar to task-centered The maintenance function (M) similar to person-centered PM leader focuses on influencing groups 12

WHICH STYLE OF LEADER BEHAVIOR IS BEST? It all depends Contemporary views: challenge the assumption that one style of leadership behavior fits all situations 11

CONTINGENCY THEORIES Assumption: different styles and different leaders are more appropriate for different situations 13

FIEDLER ON LEADERSHIP Success depends on: 1. Leader/subordinates relationships 2. Subordinates' tasks 3. Power of the leader Effectiveness = style matches situation 14

PATH-GOAL THEORY Identifies four types of leadership styles directive supportive participative achievement-oriented See Exhibit 14.3 next 16

PATH-GOAL THEORY FITS Subordinates high achievement needs = achievement-oriented ldr. high social needs = supportive ldr. Job unstructured = directive or achievement-oriented ldr. 18

THE NATIONAL CONTEXT CONTINGENCY MODEL 21

Exhibit 14.5 (next) shows the national-context contingency model of leadership

NATIONAL CONTEXT AND LEADER BEHAVIORS Regardless of cultural background, leaders use both person and task-centered behaviors Different behaviors communicate leadership style Different tactics preferred 25

LEADERSHIP TRAITS AND BEHAVIORS IN THE NATIONAL CONTEXT Selected findings from the GLOBE study Global Leadership and Organizational Behavior Effectiveness see Exhibits 14.6 to 14.8

EXHIBIT 14.8 Culturally-Contingent Beliefs Regarding Effective Leadership Styles Contributes to outstanding leadership

Exhibit 14.8 continued Contributes to outstanding leadership

Exhibit 14.8 continued Contributes to outstanding leadership

Exhibit 14.8 continued Contributes to outstanding leadership

Exhibit 14.8 continued Contributes to outstanding leadership

EXHIBIT 14.9 PREFERRED LEADER INFLUENCE TACTICS

NATIONAL CONTEXT AND SUBORDINATE EXPECTATIONS Differences in legitimate prerogatives of leadership High power distance - autocratic leadership Low power-distance - leader be more like them 28

National context and subordinate expectations, continued Strong masculinity norms - more authoritarian leadership Strong uncertainty avoidance norms - subordinates expect the leader to provide more direction 29

EXHIBIT 14.11 PREFERENCES FOR THE “SPECIFICS” LEADER

CONTEMPORARY LEADERSHIP PERSPECTIVES: MULTINATIONAL IMPLICATIONS 30

TWO BASIC FORMS OF LEADERSHIP Transactional Transformational

TRANSFORMATIONAL LEADERSHIP Articulates a vision Breaks from the status quo Provide goals and a plan Gives meanings/purpose to goals Take risks/motivated to lead Builds a power base Demonstrates high ethical/moral standards 32

ATTRIBUTIONS AND LEADERSHIP Leaders make attributions regarding subordinates Internal attribution - leader tends to correct or reward External attribution, leader modifies the work environment 34

THE CULTURAL CONTEXT AND SUGGESTED LEADERSHIP STYLES 37

EXHIBIT 14. 12 LEADERSHIP AND JOB PERFORMANCE OF U. S EXHIBIT 14.12 LEADERSHIP AND JOB PERFORMANCE OF U.S. MANAGERS IN THE U.S. AND H. K.

NATIONAL CULTURE AND LEADERSHIP STYLE

CONCLUSIONS Multinational managers strive to become global leaders A complex array of cultural, social, and institutional issues face the global leaders of today 38