1. Chapter 13: Leadership Across Cultures Mike Perez, Cole Underwood & Sarah Torp

2. Objectives Describe the basic philosophic foundation & styles of managerial leadership Examine the attitudes of European managers toward leadership practices Compare & Contrast leadership styles in Japan with those of the US Review leadership approaches in China, the Middle East, and developing countries Examine recent research & findings regarding leadership across cultures Discuss the relationship of culture clusters & leader behavior on effective leadership practices, including increasing calls for more responsible global leadership

3. Foundation of Leadership Leadership – The process of influencing people to direct their efforts toward the achievement of some particular goal or goals. BAM LEADERSHIP What would you say is the difference between a leader and a manager? Similarities?

4. Leadership Foundations (Pg. 432)

5. Leadership in the International Context How leaders in Europe attempt to direct or influence their subordinates? Are their approaches similar to those used in the United States?

6. Attitudes of European Managers Capacity for leadership and initiative (Theory X vs. Theory Y) Sharing information and objectives: general vs. detailed, completed instructions for subordinates. Participation: leadership support for participative leadership Internal control: leader control through external vs. internal means

7. Philosophical Background A leadership theorist Douglas McGregor started a idea that eventually developed into the X,Y,Z Theories. Theory X: 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: A manager who believes that under the right conditions people not only will work hard but will seek increased responsibility and challenge. Theory Z: A manager who believes that workers seek opportunities to participate in management and are motivated by teamwork and responsibility sharing.

8. Philosophical Background What do you think is the most effective of these? Why? Easy Process

9. Leadership Behaviors and Styles Leaders behaviors can be translated into three different styles; Authoritarian leadership Paternalistic leadership Participative leadership Who’s your leader?

10. Authoritarian Leadership Authoritarian - use of work-centered behavior designed to ensure task accomplishment.

11. Paternalistic Leader Paternalistic - use of work-centered behavior coupled with protective employee centered concern

12. Participative Leader Participative - use of both work or task centered and people centered approaches to leading subordinates Page 436 Figure 13-1

13. The Managerial grid is a useful visual to chart how leadership behaviors compare with one another. Can you tell me which one of these points is an example of Participative, Paternalistic, or Authoritarian?

14. Leadership Across The Globe

16. Use of participation

17. Leaders have confidence in the ability of their subordinates and use a style that allows their people to actively participate

18. Strong emphasis on ambiguous goals

20. US managers tend to limit the scope of questions and issues, emphasize one or two central aspects of that topic, identity specific employees respond to it, and focus on a goal or objective that is attainable In contrast, Japanese managers are typically inclusive in their consideration of issues or problems, seek a large information to inform the problem, encourage all employees to engage in a solution, and aim for goals that are distant in the future Japanese focused on problems and allowed poor performance so workers can learn from their mistakes while the US focused on opportunities and wanted to stop performance as quickly as possible

21. Leadership in China New generation of Chinese leaders are emerging & are different from past leaders in work values Tested in three areas: Individualism, Collectivism & Confucianism New generation scored higher in individualism and lower in collectivism and Confucianism As the economy changes the country moves more and more toward capitalism Discussion: Why do you think the new generation leaders are moving away from the older leaders leadership styles?

22. Middle East

23. Indian Leadership Styles Indian is developing at a rapid rate as MNC’s increase investment Workers are more productive when managers took a high people and high participative approach Important to focus on the individual but in order to be efficient, managers need to maintain awareness of the tasks that need to be completed Study showed that job satisfaction increased as the leadership styles becomes more participative Discussion: What country’s leadership style do you support the most?

24. Types of Leaders Transformational Leaders: Visionary agents with a sense of mission who are capable of motivating their followers to accept new goals & new ways of doing things. Idealized influence: Enhance pride, loyalty, and confidence in their people; align followers by providing common purpose or vision that the latter willingly accept Inspirational motivation: Extremely effective in articulating vision, mission, beliefs in clear-cut ways Intellectual stimulation: able to get followers to question old paradigms and accept new views of world Individualized consideration: able to diagnose and elevate needs of each follower in way that furthers each one’s development Charismatic Leaders: Leaders who inspire & motivate employees through their charismatic traits and abilities Transactional Leaders: individuals who exchange rewards for effort & performance and work on a “something for something basis”

25. Discussion: What kind of leader is the most efficient? Best Boss Ever

26. Culture Clusters and Leader Effectiveness In addition to research about universal leadership traits, there are also recent findings that show that effective leader behaviors tend to vary by cultural cluster Look at Table 13-7 on page 453 Shows data from a survey of about 6,000 European middle managers’ opinions of what traits make an outstanding business leader Similarities between culture clusters, but none of the lists are identical

27. Leader Behavior, Leader Effectiveness, and Leading Teams Culture is important in helping explain how leaders should act in order to be effective Leaders in affective cultures tend to exhibit their emotions United States Leaders in neutral cultures do not tend to show their emotions Japan and China

28. Leader Behavior, Leader Effectiveness, and Leading Teams In some cultures, people are taught to exhibit their emotion but separate those emotions from their decision-making In other cultures, emotions and making rational decisions are intertwined What are some advantages and disadvantages of both mixing and separating emotions from decision-making? What role do you think emotions play in decision-making by American workers?

30. Leader Behavior, Leader Effectiveness, and Leading Teams The way in which managers speak to their employees can influence the outcome In Anglo cultures, managers raise their voices for emphasis In Asian cultures, managers use self-control to speak at the same level, which shows respect for the other person In Latin cultures, managers vary their tone of voice constantly to show interest and commitment to what they are saying

31. Cross-Cultural Leadership: Insights from the GLOBE Study The Global Leadership and Organizational Behavior Effectiveness (GLOBE study) is a 15-year, multi-method research program that is studying societal and organizational culture, effectiveness, and leadership GLOBE researchers concluded that leadership behaviors can be summarized into six broad categories: Charismatic/Value-Based Team-Oriented Participative Humane-Oriented Autonomous Self-Protective

32. Discussion Which leadership behaviors would you prefer managers in your present or future jobs to display, and why?

33. Universal Leadership Qualities Being trustworthy, just, and honest (having integrity) Having foresight and planning ahead Being positive, dynamic, encouraging, motivating, and building confidence Being communicative and informed Being a coordinator and a team integrator Future orientation “the greater a society’s future orientation, the higher its average GDP per capita and its levels of innovativeness, happiness, confidence, and . . . competitiveness”

35. GLOBE Study Results Summary of GLOBE study’s findings: Cultural values affect leadership preferences Future orientation is essential Unexpected findings: societies that valued assertiveness were positively correlated with valuing Humane-Oriented leadership

36. Positive Organizational Scholarship and Leadership Positive organizational scholarship (POS) – a method that focuses on positive outcomes, processes, and attributes of organizations and their members Example: if a firm is doing well financially due to downsizing, POS would emphasize the revenue and its potentials instead of criticizing the negative effects Effective leaders seem to live by the POS model, as they are constantly innovating, creating relationships, striving to bring the organization to new heights, and working for the greater global good through self-improvement Do you think POS is more common in certain industries?

37. Authentic Leadership Distinct Characteristics of Authentic Leaders: Do not fake their actions; they are true to themselves and do not adhere to external expectations Are driven from internal forces, not external rewards Are unique and guide based on personal beliefs, not others’ orders Act based on individual passion and values Increased self-awareness differentiates authentic leaders from traditional leaders and creates a better understanding within the organization

38. Ethically Responsible Global Leadership Links leadership and corporate responsibility through responsible global leadership Values-based leadership Ethical decision-making Maintaining quality relationships with shareholders Scandals at corporations have led to a decrease in trust of global leaders This has prompted some companies to go on the offensive and to develop more ethically oriented and responsible leadership practices

39. Entrepreneurial Leadership and Mindset What is the difference between a leader and an entrepreneur? An entrepreneur possesses many of the same qualities as a leader, but entrepreneurs must be opportunity seekers who are comfortable with failure and willing to accept personal and business risks. Global entrepreneurs must also possess cultural sensitivity, international vision, and global mindsets to effectively lead their venture as it confronts the challenges of doing business in other countries.

40. Discussion Questions: 1. What cultures would be most likely to perceive differences between managerial and leadership duties? What cultures would view them as the same? 2. Is there any relationship between company size and European managers’ attitude toward participative leadership styles?

41. Answers 1. Japan would treat the positions the same. Their managing and leadership style are more group oriented than other cultures and have strong emphasis on ambiguous goals. The Middle East would view the two as different. Their leadership styles are similar to Western countries while their management styles are not.

42. Case StudyAn Offer from Down Under

43. Case Questions Will the leadership style used in the United States be successful in Australia, or will the Australians respond better to another? If the retailer goes into Europe, in which country will it have the least problem using its U.S-based leadership style? Why? If the company goes into Europe, what changes might it have to make in accommodating its leadership approach to the local environment? Use Germany as an example.

44. #1 Australia has a similar leadership role. There is no language boundary and they both tend to have a more paternalistic leadership role.

45. #2 The retailer will have the least trouble with England. Similar cultures and leadership styles.

46. #3 The U.S would need to continue