International Management
    Spring 08
    Class Date: April 2, 2008
     
    SUBJECT: Chapter 11, Leadership
     
    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
    ¢   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
     
    Introductory Statement
     
    National and organizational culture affects the leader and the leader affects the culture.
     
    How leaders adapt or change behavior to cultures is key to global management.
     
    Leadership
     
    The influential increment over and above mechanical compliance with routine directives of the organization
     
    Leaders focus on creativity, vision and long term organizational development
    Managers implement leader’s vision through routine operations from their appointed position of power.
     
    Culture and Leadership
     
    Culture            Leadership Theories
    National
     
     
     
     
          		US
     
    U.S. theories may not have global application
     
    Political
     
     
     
          		Limitations
    Organizational
     
     
     
     
          		Theory X & Y
     
    Leadership and management styles vary according to assumptions about human nature
     
    Cultural Change
     
     
     
     
          		Ambivalent Leadeship
     
    Produced by a culture with contradictory norms and values
     
       
       

     
     
     
     
    Cultural Assumptions of Leaders about Workers (examined by labor relations)
     
    Europe –  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.
     
    Japan Firm organizes and usually controls union
    –  Unions responsible in negotiations, abide by their contracts, strikes quite rare
     
    South America
     
     
     
     
          		–  Close relationship between unions and government
    –  Many rights and benefits for workers codified in law
     
    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
    –  Elements of culture in which leadership takes place
    –  Specific contexts within a culture
     
     
          		NT Leadership Theory
    •  Developed in India
    •  Two dimensions of effective leader behavior
    –  Nurturance (N)
    –  Task (T)
    •  Preferred leadership style provides Nurturant and Task behaviors simultaneously

     
    Differences in Theories
     
    •  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
     
    Social Bases of Leader
    Legitimacy
    Weber’s Theory of Leadership
    Authority:
     
    Traditional
          		Leadership and Ethics
          		Transformational Leadership
          		Leadership and Meaning
     
    Rational
          		     
    Charismatic
          		     

     
     
     
     
     
     
     
     
     
     
    Leadership in two cultures
    Overseas Chinese Leadership
          		French Admin Leadership
     
    •  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
          		•  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

     
     
    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
     
    Implications for Managers
     
    •  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
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Project Globe
     
    Major long-term multi-phase, multi-method research project to study cross-cultural leadership differences and similarities among countries
     
    Leader Behavior Traits/styles       Dimensions of Culture  
    Transformational/charismatic Hofstede: Uncertainty avoidance
    Team oriented Power distance
    Self protective Societal Collectivism
    Participative In group collectivism
    Autonimous Gender egalitarianism
      Assertiveness
      Kluckholm & Strodtbeck’s Future Orient-
      McClelland’s Need for achievement
      Need for humane orientation

     
    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
    •  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
     

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