Chapter 11 Leadership © 2005 Prentice-Hall, Inc. 11-1 Learning Objectives Define leadership Understand the relationship between culture and leadership Discuss the theory of leader legitimacy and its practical importance Describe typical leadership patterns in different cultures © 2005 Prentice-Hall, Inc. 11-2 Learning Objectives Understand the implications of Project GLOBE for cross-cultural leadership Identify issues that affect women becoming leaders in various cultures Consider ways that leadership is becoming more similar or different because of changes in organizations worldwide © 2005 Prentice-Hall, Inc. 11-3 Leadership The influential increment over and above mechanical compliance with routine directives of the organization © 2005 Prentice-Hall, Inc. 11-4 Culture and Leadership National culture Influences leadership Complex relationship between national cultural values and actual behavior in organizations Political culture Values of national political system affect organizational leadership © 2005 Prentice-Hall, Inc. 11-5 Culture and Leadership Organizational culture Leaders can create, maintain, and change organizational culture Culture places constraints on leaders and shapes their behavior. © 2005 Prentice-Hall, Inc. 11-6 Leadership Theories U.S. theories may not have global application Theory X and Y Leadership and management styles vary according to assumptions about human nature Ambivalent Leadership © 2005 Prentice-Hall, Inc. Produced by a culture with contradictory norms and values 11-7 Cultural Assumptions of Leaders About Workers Labor relations reflect key assumptions about human nature Europe © 2005 Prentice-Hall, Inc. Labor relations political Based on greater social class distinctions between workers and management or ownership than in U.S. Government takes more direct role in regulating labor and management and in responsibility for worker social security concerns Because of long history of unions, higher degree of acceptance and integration of them into the economy than in the U. S. 11-8 Cultural Assumptions of Leaders About Workers Japan South America © 2005 Prentice-Hall, Inc. Firm organizes and usually controls union Unions responsible in negotiations, abide by their contracts, strikes quite rare Close relationship between unions and government Many rights and benefits for workers codified in law 11-9 PM Leadership Theory Developed in Japan P - performance function M - maintenance function Effective leader emphasizes both functions Leadership functions in different ways from situation to situation © 2005 Prentice-Hall, Inc. Elements of culture in which leadership takes place Specific contexts within a culture 11-10 NT Leadership Theory Developed in India Two dimensions of effective leader behavior Nurturance (N) Task (T) © 2005 Prentice-Hall, Inc. Preferred leadership style provides Nurturant and Task behaviors simultaneously 11-11 Differences in Leadership Theories © 2005 Prentice-Hall, Inc. Western social and positivist social science methods influenced the development of PM Theory Focus on two characteristics of leader behavior in the PM and NT theories similar to focus on task and maintenance functions found in U.S. leadership theories Difference between the PM and NT leadership theories and those developed in U.S. is cultural context conceptualized as part of theories 11-12 Social Bases of Leader Legitimacy Weber’s Theory of Leadership Traditional authority Characteristic Rational authority Underpins of Asian societies bureaucratic organizations Charismatic authority Can erupt in all societies Most appropriate type for leaders in developing countries © 2005 Prentice-Hall, Inc. 11-13 Leadership and Ethics Leaders set moral and ethical standards for organization Rational authority less ethical obligation than traditional and charismatic authority, but leadership based on rational authority still has legal and ethical requirements to meet © 2005 Prentice-Hall, Inc. 11-14 Transformational Leadership Acts as teacher, role model, and inspirational figure to create conditions under which subordinates enthusiastically contribute to organization Focus on non-routine aspects of organization © 2005 Prentice-Hall, Inc. 11-15 Leadership and Meaning Leaders create symbolic meaning systems Leaders interpret and shape larger culture to needs of organization © 2005 Prentice-Hall, Inc. 11-16 Overseas Chinese Leadership © 2005 Prentice-Hall, Inc. Legitimacy of leader derives from patrimonial loyalty Variation in Mainland Chinese leadership ranges from managerial practices based on traditional values, continuation of key elements of communist industrial system, and modern capitalist management Overseas Chinese leadership style continues tradition of patriarchy 11-17 French Administrative Leadership © 2005 Prentice-Hall, Inc. Unequal distribution of power and centralized decision making Consistent with bureaucratic rationality French organizations have more levels of hierarchy, more lateral segmentation into departments and work groups Many French companies paternalistic, hierarchical, but French multinational corporations increasingly decentralizing 11-18 Project GLOBE Major long-term multi-phase, multimethod research project to study cross-cultural leadership differences and similarities among countries © 2005 Prentice-Hall, Inc. 11-19 Global Leader Behavior Dimensions Transformational-charismatic Team-oriented Integrator, diplomatic, benevolent, collaborative attitude about team Self-protective © 2005 Prentice-Hall, Inc. Decisive, performance-oriented, a visionary, an inspiration to subordinates, willing to sacrifice for the organization Self-centered, status conscious, conflictual, procedural, a face saver 11-20 Global Leader Behavior Dimensions Participative Humane Modest, compassionate Autonomous © 2005 Prentice-Hall, Inc. Delegator, encourages subordinate participation in decisions Individualistic, independent, autonomous, unique 11-21 GLOBE Cultural Dimensions Uncertainty avoidance Power distance © 2005 Prentice-Hall, Inc. Extent to which members of an organization or society strive to avoid uncertainty by reliance on social norms, rituals, and bureaucratic practices to alleviate the unpredictability of future events Degree to which members of an organization or society expect and agree that power should be unequally shared 11-22 GLOBE Cultural Dimensions Societal collectivism In-group collectivism © 2005 Prentice-Hall, Inc. Degree to which organizational and societal institutional practices encourage and reward collective distribution of resources and collective action Degree to which individuals express pride, loyalty, and cohesiveness in their organizations or families 11-23 GLOBE Cultural Dimensions Gender egalitarianism Assertiveness © 2005 Prentice-Hall, Inc. Extent to which an organization or a society minimizes gender role differences and gender discrimination Degree to which individuals are assertive, confrontational, and aggressive in social relationships 11-24 GLOBE Cultural Dimensions Future orientation Performance orientation Degree to which individuals engage in future-oriented behaviors such as planning, investing in the future, and delaying gratification Extent to which an organization or society encourages and rewards performance improvement and excellence Humane orientation Degree to which individuals encourage and reward others for being fair, altruistic, friendly, generous, caring, and kind © 2005 Prentice-Hall, Inc. 11-25 The Meaning of Project GLOBE Findings Because each culture varies, actual leadership and leadership preferences of each culture vary Approach to leadership based on cultural values and differences in leader behavior should inform global manager's selection of leaders for specific international assignments © 2005 Prentice-Hall, Inc. 11-26 The Meaning of Project GLOBE Findings International managers should interact with managers from another culture in ways that correspond with preferred leadership style in that country Strong and universal endorsement of charismatic-transformational leadership © 2005 Prentice-Hall, Inc. 11-27 Women as Leaders In many parts of the world, women occupy secondary role compared to men, particularly in leadership positions in organizations Participation of women in managerial positions worldwide is likely to increase as modernization and globalization progress © 2005 Prentice-Hall, Inc. 11-28 Convergence or Divergence? © 2005 Prentice-Hall, Inc. Most countries have preference for charismatic and transformational leadership Global corporations can change leadership in other countries Resistance of national cultures to new styles of leadership 11-29 Implications for Managers © 2005 Prentice-Hall, Inc. Understanding leadership important since all managers perform leadership functions Need to assess other cultures to understand what can be changed and what is immutable Charismatic or transformational leadership styles appropriate for large organizational change efforts 11-30