Chapter 8 Leadership Across Cultures Managing Organizations in a Global Economy: An Intercultural Perspective First Edition John Saee Copyright  by South-Western, a division of Thomson Learning. All rights reserved.

Definitions of leadership:  The process of influencing people to direct their efforts toward the achievement of some particular goal(s) (Hodgetts & Luthans 1998).  Getting the best out of subordinates individually and collectively, achieving objectives in the most effective way (Cadbury-Schweppes documentation).

FQualities of good leaders (Jackson 1993): The ability to build an effective team. The ability to listen. The capability to make decisions on their own. The ability to retain good people. The ability to surround themselves with good people.

Leadership competencies: Management of attention Management of meaning Management of trust Management of self

FUnderstanding Leadership: Conceptual Background Douglas McGregor’s Theory X versus Theory Y manager Leadership behaviors and styles (Hodgetts 1999) Authoritarian: work-centered behavior to ensure the accomplishment of the task.

Paternalistic: work-centered behavior coupled with protective employee- centered concern. Participative: both work and people- centered approach.

FAll these theories advance the notion that participative leadership behavior is more effective than authoritarian leadership behavior. This may be more true in small power distance cultures, than in large power distance cultures, where employees tend to expect authoritative leadership.

FRelationship-Oriented and Task- Oriented Leadership Relationship-oriented leaders place much more emphasis on maintaining a good relationship with their subordinates than they do on the performance of tasks.

Task-oriented leaders place more importance on the performance of tasks than they do on maintaining a good relationship with their subordinates. (Blake & Mouton 1964; Bass 1990; Bennett 1977)

FJapanese PM Theory of Leadership (Peterson 1988) P = performance, leadership is oriented toward forming and reaching group goals. M = maintenance, leadership oriented toward preserving group social stability. Some similarities and differences between Japanese and American leadership styles.

FConsideration (Rodrigues 1996) Consideration – the extent of trust, friendship, respect, and warmth that the leader extends to subordinates. FContingency Leadership Theory: Innovator, Implementor and Pacifier (Rodrigues 1988) Innovator Implementor Pacifier

Leadership in the International Context FMost comprehensive research to date (Haire et al. 1966) respondents from 14 countries. FEurope FJapan

FVariety amplification: creation of uncertainty and the analysis of many alternatives regarding future action (Hodgetts & Luthans 1998).

FVariety reduction (US) – the limiting of uncertainty and the focusing of action on a limited number of alternatives. FConsequences of variety amplification: Stronger control by the leader is maintained over the employees as employees are not certain about what is expected.

This approach helps the leader provide guidance and maintain order even if the leader is less knowledgeable than the followers. The managers’/leaders’ mission is to maintain harmony and not to be a technical expert. Employees are better prepared to deal with the situation and all of its ramifications.

Comparison between Japanese and American leadership styles (Ouchi 1981) Middle East (Badawy 1979; Abdulrahman & Hollingsworth 1983) India Latin America Conclusion

Basic points to successfully lead in an international environment : FKnow yourself and your culture well. Have a good idea of your strengths, development needs, and preconceptions. FKnow your personal goals.

Basic points to successfully lead in an international environment:  Gain consensus in group roles. Employees from high power distance cultures may require strong leadership from you, while others may find this offensive.

 Discuss the difficulties at the beginning and ask the team members what they think.  Use all resources of the team. Basic points to successfully lead in an international environment :

FMake the objectives specific and clear. FThe employees from high uncertainty avoidance cultures may require a great deal of certainty in what to expect. Basic points to successfully lead in an international environment :