Leadership Across Cultures
The specific objectives of this chapter are:
1.
DESCRIBE the basic philosophic foundation and styles of managerial leadership
2.
EXAMINE the attitudes of European managers toward leadership practices
3.
COMPARE and CONTRAST leadership styles in
Japan with those in the United States
13

13
Leadership Across Cultures
The specific objectives of this chapter are:
4.
REVIEW leadership approaches in China, the Middle
East, and developing countries
5.
EXAMINE recent, research and findings regarding leadership across cultures

Leadership Across Cultures
The specific objectives of this chapter are:
6.
DISCUSS the relationship of culture clusters and leader behavior on effective leadership practices including increasing calls for more responsible global leadership
13

Foundation for Leadership
Philosophical Background:
Theories X, Y, and Z
Theory X Manager
 A manager who believes that people are basically lazy and that coercion and threats of punishment often are necessary to get them to work.
4

Foundation for Leadership
Philosophical Background:
Theories X, Y, and Z
Theory X Manager
Theory Y Manager
 A manager who believes that under the right conditions people not only will work hard but will seek increased responsibility and challenge.
5

Foundation for Leadership
Philosophical Background:
Theories X, Y, and Z
Theory X Manager
Theory Y Manager
 A manager who believes that workers seek opportunities to participate in management and are motivated by teamwork and responsibility sharing.
Theory Z Manager
6

7
Foundation for Leadership
Leadership Behaviors and Styles
Authoritarian
Leadership
Paternalistic
Leadership
Participative
Leadership
The use of work-centered behavior designed to ensure task accomplishment.
The use of work-centered behavior coupled with a protective employee centered concern.
The use of both work- or taskcentered and people centered approaches to leading subordinates.

Leader –Subordinate Interactions
Authoritarian Leader
Subordinate Subordinate Subordinate
8
One-way downward flow of information and influence from authoritarian leader to subordinates.
Adapted from Figure 13–1: Leader–Subordinate Interactions
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Leader –Subordinate Interactions
Paternalistic Leader
Subordinate Subordinate Subordinate
9
Continual interaction and exchange of information and influence between leader and subordinates.
Adapted from Figure 13–1: Leader–Subordinate Interactions
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Leader –Subordinate Interactions
Participative Leader
Subordinate Subordinate Subordinate
10
Continual interaction and exchange of information and influence between leader and subordinates.
Adapted from Figure 13–1: Leader–Subordinate Interactions
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Likert’s Systems or Styles Leadership
11
Adapted from Figure 13–2: Likert’s Systems or Styles Leadership

Likert’s Systems or Styles Leadership
12
Adapted from Figure 13–2: Likert’s Systems or Styles Leadership

13
The Managerial Grid
High
1,9 Management Style
Thoughtful attention to needs of people for satisfying relationships leads to a comfortable friendly organization atmosphere and work tempo
9,9 Management Style
Work accomplishment is from committed people; interdependence through a “common stake” in organization purpose leads to relationships of trust and respect
5,5 Management Style
Adequate organization performance is possible through balancing the necessity to get out work with maintaining morale of people at a satisfactory level
Low
1,1 Management Style
Exertion of minimum effort to get required work done is appropriate to sustain organization membership
1
Low
2 3
9,1 Management Style
Efficiency in operations results from arranging conditions of work in such a way that human elements interface to a minimum degree
4 5 6
Concern for Production/Task
7 8 9
High
Adapted from Figure 13–2: The Managerial Grid
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Leadership in the International Context
14
Research shows that there are both similarities and differences – most international research on leadership has focused on Europe, East Asia, the Middle East, and developing countries such as India, Peru, Chile, and Argentina.

Leadership in the International Context
Attitudes of European
Managers Toward
Leadership Practices
Capacity for Leadership and Initiative
European managers tend to use a participative approach. Researchers investigated four areas relevant to leadership.
Does the leader believe that employees prefer to be directed and have little ambition? (Theory X)
OR
Does the leader believe that characteristics such as initiative can be acquired by most people regardless of their inborn traits and abilities? (Theory Y)
15

Leadership in the International Context
Attitudes of European
Managers Toward
Leadership Practices
Capacity for Leadership and Initiative
Sharing Information and Objectives
Most evidence indicates European managers tend to use a participative approach. Researchers investigated four areas relevant to leadership.
Does the leader believe that detailed, complete instructions should be given to subordinates and that subordinates need only this information to do their jobs?
OR
Does the leader believe that general directions are sufficient and that subordinates can use their initiative in working out the details?
16

Leadership in the International Context
Attitudes of European
Managers Toward
Leadership Practices
Capacity for Leadership and Initiative
Most evidence indicates European managers tend to use a participative approach. Researchers investigated four areas relevant to leadership.
Does the leader support participative leadership practices?
Sharing Information and Objectives
17
Participation

Leadership in the International Context
Attitudes of European
Managers Toward
Leadership Practices
Capacity for Leadership and Initiative
Sharing Information and Objectives
Most evidence indicates European managers tend to use a participative approach. Researchers investigated four areas relevant to leadership.
Does the leader believe that the most effective way to control employees is through rewards and punishment?
OR
Participation
Does the leader believe that employees respond best to internally generated control?
18
Internal Control

Clusters of Countries in the Haire,
Ghiselli, and Porter Study
19
(Believe workers have more initiative, more autocratic, more external rewards)
Adapted from Table 13–3: Clusters of Countries in the Haire, Ghiselli, and Porter Study

Leadership in the International Context
Attitudes of European
Managers Toward
Leadership Practices
The 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 – in other countries, the opposite was true
 Company size tends to influence the degree of participativeautocratic attitudes
 Younger managers were more likely to have democratic values when it came to capacity for leadership and initiative and to sharing information and objectives
20

Leadership in the International Context
Attitudes of European
Managers Toward
Leadership Practices
Conclusion About European
Leadership Practices
 Most European managers tend to reflect more participative and democratic attitudes – but not in every country
 Organizational level, company size, and age seem to greatly influence attitudes toward leadership
 Many of the young people in this study now are middle-aged –
European managers in general are highly likely to be more participative than their older counterparts of the 1960s and
1970s
21

Leadership in the International Context
22
Japanese Leadership
Approaches
 Japan is well known for its paternalistic approach to leadership
 Japanese culture promotes a high safety or security need, which is present among home country –based employees as well as MNC expatriates
 Japanese managers have much greater belief in the capacity of subordinates for leadership and initiative than do managers in most other countries – only managers in Anglo-American countries had stronger feelings in this area

Leadership in the International Context
Differences Between
Japanese and U.S.
Leadership Styles



Except for internal control, large U.S. firms tend to be more democratic than small ones – the profile is quite different in
Japan
Younger U.S. managers appear to express more democratic attitudes than their older counterparts on all four leadership dimensions
Japanese and U.S. managers have a basically different philosophy of managing people – Ouchi’s Theory Z combines
Japanese and U.S. assumptions and approaches providing a comparison of seven key characteristics
23

Leadership in the International Context
Differences Between
Japanese and U.S.
Leadership Styles
Another difference between Japanese and U.S. leadership styles is how senior-level managers process information and learn


Variety Amplification
Japanese executives are taught and tend to use variety amplification – t he creation of uncertainty and the analysis of many alternatives regarding future action
Variety Reduction
U.S. executives are taught and tend to use variety reduction – the limiting of uncertainty and the focusing of action on a limited number of alternatives
24

Productivity of Japanese Groups with High-Achievement
Motivation under Different Leadership Styles
80
25
50
——
PM Leadership Style 9,9
(high task, high people)
——
M Leadership Style 1,9
(low task, high people)
—— P Leadership Style 9,1
(high task, low people)
—— PM Leadership Style 1,1
(low task, low people)
0
1 2 3 4
Sessions
5 6 7
Adapted from Figure 13–3: Productivity of Japanese Groups with High-Achievement Motivation under Different
Leadership Styles
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Productivity of Japanese Groups with Low-Achievement
Motivation under Different Leadership Styles
80
26
50
——
P Leadership Style 9,1
(high task, low people)
——
PM Leadership Style 9,9
(high task, high people)
—— PM Leadership Style 1,1
(low task, low people)
—— M Leadership Style 1,9
(low task, high people)
25
0 1
7
2 3 4
Sessions
5 6
Adapted from Figure 13–4: Productivity of Japanese Groups with Low-Achievement Motivation under Different
Leadership Styles
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Leadership in the International Context
27
Leadership in China
 Importance that the respondents in one study assigned to three areas:
Individualism
Measured by importance of self sufficiency and personal accomplishments
Collectivism
Confucianism
Measured by willingness to subordinate personal goals to those of the work group with an emphasis on sharing and group harmony
Measured by the importance of societal harmony, virtuous interpersonal behavior, and personal and interpersonal harmony

Leadership in the International Context
28
Leadership in China
 The “New Generation” group scored significantly higher on individualism than did the current and older generation groups
 They also scored significantly lower than the other two groups on collectivism and Confucianism
 These values appear to reflect the period of relative openness and freedom, often called the “Social Reform Era,” in which these new managers grew up
 They have had greater exposure to Western societal influences may result in leadership styles similar to those of Western managers

Leadership in the International Context
29
Leadership in the
Middle East
 There may be much greater similarity between Middle Eastern leadership styles and those of Western countries
 Western management practices are evident in the Arabian Gulf region due to close business ties between the West and this oil-rich area as well as the increasing educational attainment, often in Western universities, of Middle
Eastern managers
 Organizational culture, level of technology, level of education, and management responsibility were good predictors of decision-making styles in the United Arab Emirates
 There is a tendency toward participative leadership styles among young Arab middle managers, as well as among highly educated managers of all ages

Differences in Middle Eastern and
Western Management
30
Adapted from Table 13–5: Differences in Middle Eastern and Western Management

Differences in Middle Eastern and
Western Management
31
Adapted from Table 13–5: Differences in Middle Eastern and Western Management

Leadership in the International Context
32
Leadership Approaches in Developing Countries
 Managerial attitudes in India are similar to Anglo-
Americans toward capacity for leadership and initiative, participation, and internal control, but different in sharing information and objectives
 Leadership styles in Peru may be much closer to those in the United States than previously assumed
 Developing countries may be moving toward a more participative leadership style

Recent Findings and Insights About
Leadership
Transformational, Transactional, and Charismatic Leadership
Transformational leaders are characterized by four interrelated factors:
Idealized Influence
 Transformational leaders are a source of charisma and enjoy the admiration of their followers.
33
 They enhance pride, loyalty, and confidence in their people, and align these followers by providing a common purpose or vision that the latter willingly accept

Recent Findings and Insights About
Leadership
Transformational, Transactional, and Charismatic Leadership
Transformational leaders are characterized by four interrelated factors:
Idealized Influence
 These leaders are extremely effective in articulating their vision,
Inspirational Motivation mission, and beliefs in clear-cut ways, thus providing an easy-to understand sense of purpose regarding what needs to be done
34

Recent Findings and Insights About
Leadership
Transformational, Transactional, and Charismatic Leadership
Transformational leaders are characterized by four interrelated factors:
Idealized Influence
 Transformational leaders are able to get their followers to question
Inspirational Motivation old paradigms and to accept new views of the world regarding how things now need to be done
Intellectual Stimulation
35

Recent Findings and Insights About
Leadership
Transformational, Transactional, and Charismatic Leadership
Transformational leaders are characterized by four interrelated factors:
Idealized Influence
 These leaders are able to diagnose and elevate the needs of each of
Inspirational Motivation their followers through individualized consideration, thus furthering the development of these
Intellectual Stimulation people
36
Individualized
Consideration

Recent Findings and Insights About
Leadership
Transformational, Transactional, and Charismatic Leadership
Four other types of leaders are less effective than transformational leaders
Contingent Reward (CR)
Leader
Clarifies what needs to be done, provides psychic and material rewards to those complying with his or her directives
Active Management-by-
Exception (MBE-A) Leader
Monitors follower performance and takes corrective action when deviations from standards occurs
37
Passive Management-by-
Exception (MBE-P) Leader
Takes action or intervenes in situations only when standards are not met
Laissez-Faire (LF) Leader
Avoids intervening or accepting responsibility for follower actions

An Optimal Profile of Universal Leadership Behaviors
I’s–transformational
CR–Contingent Reward
MBE-A–Active Management-by-Exception
Effective
MBE-P–Active Management-by-Exception
LF–Laissez-Faire CR
I’s
Passive
MBE-A
MBE-P
Active
38
LF
Effective
Adapted from Figure 13–5: An Optimal Profile of Universal Leadership Behaviors
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

39
Adapted from Table 13–6: Qualities Most Demanded in Advertisements for European Executives

40
Adapted from Table 13–6: Qualities Most Demanded in Advertisements for European Executives

Rankings of the Most Important
Leadership Attributes
41
Adapted from Table 13–7: Rankings of the Most Important Leadership Attributes by Region and Country Cluster

Rankings of the Most Important
Leadership Attributes
42
Adapted from Table 13–7: Rankings of the Most Important Leadership Attributes by Region and Country Cluster

Recent Findings and Insights About
Leadership
Leader Behavior, Leader
Effectiveness, and Leading Teams
 One of the keys to successful global leadership is knowing what style and behavior works best in a given culture and adapting appropriately
43
 In affective cultures , such as the United States, leaders tend to exhibit their emotions
 In neutral cultures , such as Japan and China, leaders do not tend to show their emotions

Leadership Tips for Doing Business in
Affective and Neutral Cultures
44

Leadership Tips for Doing Business in
Affective and Neutral Cultures
45

Leadership Tips for Doing Business in
Affective and Neutral Cultures
46

Recent Findings and Insights About
Leadership
Ethically Responsible
Global Leadership
Linking leadership and corporate responsibility through
“responsible global leadership”
 Values Based Leadership


Ethical Decision Making
Quality Stakeholder Relationships
47
According to this view, global leadership must be based on core values and credos that reflect principled business and leadership practices, high levels of ethical and moral behavior, and a set of shared ideals that advance organizational and societal well-being.

Recent Findings and Insights About
Leadership
Entrepreneurial
Leadership and Mindset
 Promising start-ups fail for many reasons
 Lack of capital, absence of clear goals and objectives, and failure to accurately assess market demand and competition
 Poor personal leadership ability of the entrepreneurial CEO
 For international new ventures, these factors are significantly complicated by
 Differences in cultures, national political and economic systems, geographic distance, and shipping, tax, and regulatory costs.
48

Recent Findings and Insights About
Leadership
Entrepreneurial
Leadership and Mindset
Key personal characteristics of entrepreneurs and strong leaders
 Appear to be more creative and innovative than nonentrepreneurs
 Tend to break the rules and do not need structure, support, or an organization to guide their thinking
 See things differently and add to a product, system, or idea value that amounts to more than an adaptation or linear change
 Are more willing to take personal and business risks, and to do so in visible and salient ways
49

Recent Findings and Insights About
Leadership
Entrepreneurial
Leadership and Mindset
Key personal characteristics of entrepreneurs and strong leaders
 They are opportunity seekers and are comfortable with failure, rebounding quickly to pursue another opportunity
 They are characterized as adventurous, ambitious, energetic, domineering, and self-confident
50
Entrepreneurial leaders operating internationally must possess cultural sensitivity, international vision, and global mindset to effectively lead their venture through challenges of doing business in other countries.

 Road to Hell
Case
51