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

2. 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

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

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

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

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

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

8. 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

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

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

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

12. 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

13. 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

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

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

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

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

20. THE NATIONAL CONTEXT CONTINGENCY MODEL21

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

23. 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

24. 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

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

28. Exhibit 14.8 continued
Contributes to outstanding leadership

29. Exhibit 14.8 continued
Contributes to outstanding leadership

30. Exhibit 14.8 continued
Contributes to outstanding leadership

31. Exhibit 14.8 continued
Contributes to outstanding leadership

32. EXHIBIT 14.9 PREFERRED LEADER INFLUENCE TACTICS

33. 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

34. 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

35. EXHIBIT 14.11 PREFERENCES FOR THE “SPECIFICS” LEADER

36. CONTEMPORARY LEADERSHIP PERSPECTIVES: MULTINATIONAL IMPLICATIONS30

37. TWO BASIC FORMS OF LEADERSHIP
Transactional
Transformational

38. 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

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

40. THE CULTURAL CONTEXT AND SUGGESTED LEADERSHIP STYLES37

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

42. NATIONAL CULTURE AND LEADERSHIP STYLE

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