©2004 Prentice Hall15-1 Chapter 15: Leadership and Employee Behavior in International Business International Business, 4 th Edition Griffin & Pustay

©2004 Prentice Hall15-2 Chapter Objectives_1  Identify and discuss the basic perspectives on individual differences in different cultures  Evaluate basic views of employee motivation in international business  Identify basic views of managerial leadership in international business

©2004 Prentice Hall15-3 Chapter Objectives_2  Discuss the nature of managerial decision making in international business  Describe group dynamics and discuss how teams are managed across cultures

©2004 Prentice Hall15-4 Personality Differences across Cultures  Relatively stable set of psychological attributes that distinguishes one person from another  Nurture versus nature

©2004 Prentice Hall15-5 Big Five Personality Traits  Agreeableness  Conscientiousness  Emotional Stability  Extroversion  Openness

©2004 Prentice Hall15-6 Agreeableness High Low Good natured, Cooperative, understanding Short tempered, Irritable, uncooperative The ability to get along with others

©2004 Prentice Hall15-7 Conscientiousness High Low Organized, Self-disciplined, systematic Disorganized, Careless, irresponsible The drive to impose order and precision

©2004 Prentice Hall15-8 Emotional Stability High Low Resilient, calm, secure Reactive, excitable, insecure The inclination to maintain a balanced emotional state

©2004 Prentice Hall15-9 Extroversion High Low Sociable, talkative, assertive Less sociable, quiet, introverted One’s comfort level with relationships

©2004 Prentice Hall15-10 Openness High Low Willing to Change beliefs, ideas, and attitudes Nonreceptive to new ideas and change One’s rigidity of beliefs and range of interests

©2004 Prentice Hall15-11 Other Personality Traits at Work  Locus of Control  Self-efficacy  Authoritarianism  Self-esteem

©2004 Prentice Hall15-12 Attitudes Across Cultures  Job satisfaction  Organizational Commitment

©2004 Prentice Hall15-13 Table 15.1 Job Satisfaction Differences Between Japanese and U.S. Workers

©2004 Prentice Hall15-14 Perception Across Cultures  Set of processes by which an individual becomes aware of and interprets information about the environment  Stereotyping –Occurs when we make inferences about someone because of one or more characteristics they possess

©2004 Prentice Hall15-15 Workers in different cultures exhibit different profiles of characteristics, motivations, and processes

©2004 Prentice Hall15-16 Motivational Processes Across Cultures  Need-based models of motivation: Attempt to identify the specific need or set of needs that results in motivated behavior  Process-based models of motivation: Focus on conscious thought processes people use to select one behavior from among several

©2004 Prentice Hall15-17 Need-Based Models Across Cultures  Maslow’s Hierarchy of Needs  McClelland’s Learned Needs Framework  Herzberg’s Two-Factor Theory

©2004 Prentice Hall15-18 Expectancy Theory: A Process-Based Model  People are motivated to behave in certain ways to the extent that they perceive that such behaviors will lead to outcomes they find personally attractive  Cultural factors will affect the nature of work goals and people’s perceptions of how they should pursue them

©2004 Prentice Hall15-19 Reinforcement Model  Behavior that results in a positive outcome will likely be repeated under the same circumstances in the future  Behavior that results in a negative outcome will result in a different choice under the same circumstances in the future

©2004 Prentice Hall15-20 Leadership  Use of noncoercive influence to shape the goals of a group or organization, to motivate behavior toward reaching those goals, and to help determine the group or organizational culture

©2004 Prentice Hall15-21 Table 15.2 Differences between Leadership and Management ActivityManagementLeadership Creating an agendaPlanning and budgeting. Establishing detailed steps and timetables. Establishing direction. Developing vision. Developing a human network for achieving the agenda Organizing and staffing. Establishing structure. Aligning people. Communicating direction. Executing plansControlling and problem solving. Monitoring results. Motivating and inspiring. Energizing people. OutcomesProduces predictability and order. Produces change.

©2004 Prentice Hall15-22 Figure 15.2 The Role of Managers Varies across Cultures

©2004 Prentice Hall15-23 Models of Decision Making  Normative Model: managers apply logic and rationality in making the best decisions  Descriptive Model: behavioral processes limit a manager’s ability to always be logical and rational

©2004 Prentice Hall15-24 Figure 15.2 Models of the Decision- Making Process

©2004 Prentice Hall15-25 The Normative Model Across Cultures  Step 1: Problem Recognition  Step 2: Identifying Alternatives  Step 3: Evaluating Alternatives  Step 4: Selecting the Best Alternative  Step 5: Implementation  Step 6: Follow-up ad Evaluation

©2004 Prentice Hall15-26 Mature Team Characteristics  Develops a well-defined role structure  Establishes norms for members  Promotes cohesiveness  Includes informal leaders

©2004 Prentice Hall15-27 Managers must remain cognizant of differences resulting from diversity within a group