1. International Management
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2. Leadership across Cultures
Chapter 13
Leadership across Cultures

3. 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

4. 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

5. 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

6. 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

7. Table 13.1 - Perceived Differences: Managers versus Leaders

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. Types of Leadership Authoritarian leadership
Use of work-centered behavior designed to ensure task accomplishment
Authoritarian leadership
Use of work-centered behavior coupled with a protective employee-centered concern
Paternalistic leadership
Use of both work- or task-centered and people-centered approaches to leading subordinates
Participative leadership

15. Figure 13.1 - Leader-Subordinate Interactions

16. Figure 13.2 - The Managerial Grid

17. 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

18. 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

19. 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

20. 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

21. Table 13.4 - Japanese versus U.S. Leaderships Styles

22. 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

23. 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

24. Table 13.5 - Differences between Middle Eastern and Western Management

25. 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

26. 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

27. 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

28. 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)

29. 4 I’s Idealized influence Inspirational motivation
Intellectual stimulation
Individualized consideration

30. 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

31. 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

32. 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

33. 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

34. 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

35. 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

36. 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

37. 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

38. 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

39. 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

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

41. Authentic Leadership (continued)
Authentic leaders must possess several interrelated qualities
Positive psychological aspects
Positive morals to guide them through processes

42. 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

43. 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

44. 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

45. 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

46. 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

47. 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?

48. 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

49. 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?

50. 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 lead their Japanese employees?

51. Review and Discuss (continued 3)
What do U.S. managers need to know about leading in the international arena?
Identify and describe three important guidelines that can be of practical value
Is effective leadership behavior universal, or does it vary from culture to culture? Explain
What is authentic leadership?
What is ethically responsible leadership?