Chapter 8 Leadership Across Cultures Managing Organizations in

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Chapter 8 Leadership Across Cultures Managing Organizations in a Global Economy: An Intercultural Perspective

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: F The process of influencing people to direct their efforts toward

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

F Qualities of good leaders (Jackson 1993): The ability to build an effective team.

F Qualities 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

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

F Understanding Leadership: Conceptual Background Douglas Mc. Gregor’s Theory X versus Theory Y manager

F Understanding Leadership: Conceptual Background Douglas Mc. Gregor’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 employeecentered concern. Participative: both work and peoplecentered

Paternalistic: work-centered behavior coupled with protective employeecentered concern. Participative: both work and peoplecentered approach.

F All these theories advance the notion that participative leadership behavior is more effective

F All 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.

F Relationship-Oriented and Task. Oriented Leadership Relationship-oriented leaders place much more emphasis on maintaining

F Relationship-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

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)

F Japanese PM Theory of Leadership (Peterson 1988) P = performance, leadership is oriented

F Japanese 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

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 F Most comprehensive research to date (Haire et al.

Leadership in the International Context F Most comprehensive research to date (Haire et al. 1966) - 3641 respondents from 14 countries. F Europe F Japan

F Variety amplification: creation of uncertainty and the analysis of many alternatives regarding future

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

F Variety reduction (US) – the limiting of uncertainty and the focusing of action

F Variety reduction (US) – the limiting of uncertainty and the focusing of action on a limited number of alternatives. F Consequences 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

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;

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 : F Know yourself and

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

Basic points to successfully lead in an international environment: F Gain consensus in group

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

Basic points to successfully lead in an international environment : FDiscuss the difficulties at

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

Basic points to successfully lead in an international environment : F Make the objectives

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