MGT-485
CHAPTER 14
LEADERSHIP ACROSS
CULTURES
Theory X and Theory Y
Beliefs of Theory X Managers
People do not like to work
Workers have little ambition and like to be directed
The primary need of employees is job security
It is necessary to use coercion, control, and threats of
punishment
Beliefs of Theory Y Managers
Expending effort is a natural desire
External control and punishment are not necessary
Commitment is determined by the rewards
Human beings learn not only to accept but to seek
responsibility
Mgt-485 14-2
Leadership Behavior and
Styles
Authoritarian
The use of work-centered behavior
to ensure task accomplishment
Paternalistic
The use of work-centered behavior
coupled with a protective employee
centered concern
Participative
The use of both work-centered
and people-centered
approaches
Mgt-485 14-3
Leader-Subordinate Interactions
Authoritarian
Leader
Subordinate
Subordinate
Subordinate
Paternalistic
Leader
Subordinate
Subordinate
Subordinate
Participative
Leader
Subordinate
Subordinate
Subordinate
Mgt-485 14-4
Likert’s Systems of
Leadership
Table 14-3, pg. 405
S1
S2
S3
Exploitive
Autocratic
Benevolent
Autocratic
Participative
S4
Democratic
Mgt-485 14-5
Likert’s Systems of
Leadership
Exploitive Autocratic
– No confidence or trust in
subordinates
– Motivated by physical
security, economic needs and
desire for status
– Decisions made at the top
– Issues orders
Benevolent Autocratic
– Condescending confidence and
trust in subordinates
– Motivated by economic needs
and moderately by desire for
status
– Decisions made at all levels,
always checked by upper level
– Orders issued but with
comment opportunities
Mgt-485 14-6
Likert’s Systems of Leadership
Participative
– Substantial but not complete
confidence and trust in
subordinates
– Quite a bit of interaction aimed
at achieving objectives
– Broad policy decisions at top,
specific decisions at lower
levels
– Orders issued after discussion
with subordinates
Democratic
– Complete confidence and trust
in subordinates
– Interaction with individuals and
groups are high
– Decision making widely done
throughout organization
– Except in emergencies, goals
are usually established
through group participation
Mgt-485 14-7
The Managerial Grid
9(1,9)
8
(9,9)
P. 407
Team
Country Club
Management
Management
7
6
Middle of the Road
(5,5)
5
Management
4
3
2(1,1)
1 1
9
Impoverished
Task
Management
2
3
4
Management
(9,1)
5
6
7
8
Concern for Production (Task)
Mgt-485 14-8
European Managers
Attitude Toward Leadership
– Tend to use more participative and democratic styles
– Organizational level, company size, and age influence attitudes
Haire, Ghiselli, and Porter Study
1. Capacity for leadership and initiative
Do employees prefer to be directed or do they have
initiative in their inborn traits and abilities?
2. Sharing information and objectives
Do employees need detailed instruction or do they believe general
instructions are sufficient?
3. Participation
Does the leader support participative leadership practices?
4. Internal control
Is the most effective way to control employees through rewards
and punishment or to internally generate control?
Mgt-485 14-9
Japanese Managers
Attitudes Toward Leadership
– Paternalistic approach to leadership
– Promote high safety and security needs
– Possess high level of confidence in their
subordinates
– Express greater attitude for participation than
other countries
– Above average on their sharing of information and
objectives and internal control
Mgt-485 14-10
Japanese vs. U.S. Leadership Styles
Philosophical dimensions
Japanese approach
U.S. approach
Employment
Often for life; layoffs
are rare
Usually short-term;
layoffs are common
Evaluation and promotion
Very slow; big promos
may take 10 years
Very fast; those not
promoted quit
Career paths
Very general; people
become familiar with
all areas
Very specialized;
people tend to stay in
one area
Decision making
Group decision-making
Individual Manager
Control mechanism
Very implicit & informal
Very explicit
Responsibility
Shared collectively
Assigned to individual
Concern for employees
Involves business and
social life
Involves work life only
Mgt-485 14-11
Differences in Middle Eastern
and Western Management
Management dimensions
Middle Eastern
Western
Leadership
Highly authoritarian
Emphasis on leader’s
style and performance
Organizational structures
Highly bureaucratic
Highly delegatory
Decision making
Top-level decisions, risk
averse
Sophisticated planning
techniques
Performance evaluation
and control
Informal control
mechanisms
Advanced control with
focus on cost reduction
Personnel policies
Heavy reliance on
personal contacts
Qualifications are basis
for selection decisions
Communication
Social position present,
rigid chain of command,
binding friendships
Stresses equality,
friendships not binding
Mgt-485 14-12
Leadership Approaches in Developing
Countries

India
– More participative than early research showed
– Survey of cross-section of managers
14% classified organization as exploitive autocratic
 63% classified organization as benevolent autocratic
 23% classified organization as consultative
participative
 0% classified organization as democratic

Mgt-485 14-13
Leadership Approaches Continued

Peru
– Leadership styles closer to that of United States than
Argentina or Chile
– Stephens conducted research by matching three
Peruvian textile plants with U.S. plants, the results
were very similar
Mgt-485 14-14