Chapter 13 - College of Business Administration

chapter thirteen
Leadership Across Cultures
Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Chapter Outline
• Management theories: Theories X, Y,
and Z
Leadership styles: authoritarian,
paternalistic, participative, laissez-faire
The managerial grid
Motivating Japanese and U.S. workers
Theory Z in detail
• Japanese vs. U.S. Leadership Styles
Chapter Outline (2)
• Leadership in China
• Transformational leadership vs. other
leadership styles
– Transactional
– Management-by-exception (active and passive)
– Laissez faire
• The GLOBE study of international leadership
• Characteristics of successful global
Theory X and Theory Y Managers
– 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.
– Theory Y Manager: A manager who
believes that under the right conditions
people will work hard and will seek
increased responsibility and challenge.
Theory Z Managers
• Theory Z Manager: A manager who believes
that workers seek opportunities to participate
in management and are motivated by
teamwork and responsibility sharing.
– Combination of Theory Y and Japanese
management techniques
– Emphasizes mutual commitment between
the organization and the employee
– Theory developed by William Ouchi
Leadership Styles
• Leadership Behaviors and Styles:
– Authoritarian: use of work-centered behavior
designed to ensure task accomplishment.
– Paternalistic: use of work-centered behavior
coupled with protective employee centered concern
– Participative: use of both work or task centered
and people centered approaches to leading
– Laissez-faire: The manager avoids taking action
and does not accept responsibility for the actions of
Leader-Subordinate Relations
Authoritarian Leaders
Leader-Subordinate Relations
Paternalistic Leaders
Leader-Subordinate Relations
Participative Leaders
Continued interaction and exchange of information between
leader and subordinates and among subordinates.
Managerial Grid
9, 5 Management
Style = Paternalistic
The Managerial Grid
Motivating Japanese Workers
• Japanese workers with high achievement motivation
performed best when a participative leadership style
was used.
• Japanese workers with low achievement motivation
– Performed best when an authoritarian leadership style was
– By the end of the study, a participative leadership style was
the second most effective style
• A laissez-faire leadership style was not effective with
either type of workers.
• Results for U. S. workers have been similar.
Leadership in Japan
• Japanese managers and employees have a
high need for safety and security
• Japanese managers also have a strong belief
in the ability of subordinates to take initiative
and exercise leadership
– Managers in English-speaking countries have an
even stronger belief in the ability of subordinates
to take initiative
• Japanese executives often give ambiguous
instructions and expect subordinates to fill in
the details
Leadership in Japan (2)
• Japanese managers focus more on problems.
U.S. managers focus more on opportunities.
• The percentage of employees in Japan who
have lifetime employment is 30% or less, and
– Lifetime employment is restricted to permanent,
full-time employees of large companies. These
employees are usually male.
• Ouchi’s Theory Z (Table 13.4, page 443)
Leadership in Japan (3)
• How senior managers process information and
– Variety amplification: Japanese executives are
taught and tend to use variety amplification-the
creation of uncertainty and the analysis of many
alternatives regarding future action.
– Variety reduction: U.S. executives tend to use
variety reduction—limiting uncertainty and focusing
action on a limited number of alternatives.
Leadership in China
• Three factors used in a leadership study
– Individualism: The importance of self-sufficiency
and personal accomplishments
– Collectivism: willingness to subordinate personal
goals to those of the work group with an emphasis
on sharing and group harmony
– Confucianism: Measured by the importance of
societal harmony, virtuous interpersonal behavior,
and personal and interpersonal harmony
Leadership in China (2)
• A new generation of Chinese managers is
emerging whose work values differ from
those of former managers
• Younger managers are
– more individualistic than older managers
– less committed to collectivism and
Confucianism than older managers
Transactional and
Transformational Leadership
• Transactional leaders exchange rewards for
effort and performance and work on a
“something for something” basis (also called
contingent reward)
• Transformational leaders are visionary agents
with a sense of mission who are capable of
motivating their followers to accept new goals
and new ways of doing things
Characteristics of
Transformational Leaders
• Idealized influence – charisma. Ability to get their
followers to accept a common purpose or vision
• Inspirational motivation – an easy-to-understand
sense of purpose regarding what should be done.
• Intellectual stimulation – giving people a new
paradigm or world view
• Individualized consideration – identify development
needs and see that they are met.
Management by Exception
– Management-by-Exception - Active: The
manager monitors performance and takes
corrective action when deviations from
standards occur
– Management-by-Exception - Passive: The
manager intervenes in situations only when a
problem is called to his attention
Universal Leader Behaviors
Leader Behaviors in Decreasing
Order of Effectiveness
Transactional (contingent reward)
Management by exception – active
Management by exception – passive
Laissez faire
This list is based on research in 8 countries.
The way a leadership style is applied varies
according to a country’s culture.
Recent Findings about Leadership
• Ads for management positions in western
– Great differences among countries regarding their
leadership requirements
– All countries expected executive applicants to
have good social and personal qualities
• Culture clusters and leader effectiveness
– Effective leader behaviors tend to vary by cultural
– Post-Communist countries put greater emphasis
on administrative skills than other countries.
Rankings of
Leadership Attributes
Styles of International Leadership
(GLOBE study)
• Charismatic/Value-Based leadership captures
the ability of leaders to inspire, motivate, and
encourage high performance outcomes from
others based on a foundation of core values.
• Team-Oriented leadership places emphasis on
effective team building and implementation of a
common goal among team members
Styles of
International Leadership (2)
• Participative leadership reflects the extent to
which leaders involve others in decisions and
their implementation.
• Humane-Oriented leadership comprises
supportive and considerate leadership.
• Autonomous leadership refers to independent
and individualistic leadership behaviors.
• Self-Protective leadership “focuses on ensuring
the safety and security of the individual and
group through status-enhancement and facesaving.”
Leadership Attributes that
Work in Most Cultures (universal)
• Integrity: being trustworthy, just, honest
• Having foresight and planning ahead
• Being positive, dynamic, motivating,
encouraging, and building confidence
• Communicating and being informed
• Being a coordinator and team integrator
Differences in Leadership
Attributes across Cultures
• Most other leadership attributes work well in
some cultures but not in others.
• Two different collectivist approaches
– Nordic and Scandinavian countries: Participative
and self-protective leadership are valued most
– East Asia: Charismatic/values-based and teamoriented leadership are valued most highly.
Cross-Cultural Comparison
Why Start-up Businesses Fail
• 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.
Key Personal Characteristics
Of Entrepreneurs
• Are more creative and innovative than nonentrepreneurs
• Do not need structure, support, or an
organization to guide their thinking
• See things differently and add value to
products in new ways
• Are willing to take personal and business
risks, and to do so in visible ways
Key Personal Characteristics Of
Entrepreneurs (2)
• They are opportunity seekers and are comfortable
with failure, rebounding quickly to pursue another
• They are characterized as adventurous, ambitious,
energetic, domineering, and self-confident
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.