BBSB4103 CROSS CULTURAL MANAGEMENT

TOPIC 7 : LEADERSHIP ACROSS CULTURES

LEARNING OUTCOMES

By the end of this topic, you should be able to:

Explain the term leader

Explain different leadership styles and behavior across cultures;

Compare leadership practices in different countries;

Analyze three types of leaders.

INTRODUCTION
Managers nowadays cannot escape from working with people from
different cultural backgrounds as globalization and regional
integration increase.
Even firms that do not have businesses abroad might face
challenges in managing a culturally diverse workforce.
This creates a need for leaders who are well-versed in cross-
cultural management and its impact on the workplace.
 LEADERS
Good leaders are made not born. If you have the desire and willpower, you
can become an effective leader. Good leaders develop through a never-ending
process of self-study, education, training and experience - Jago, 1982

In the context of global business, leaders are those who have the ability to
inspire and influence the thinking, attitudes and behaviour of people
everywhere in the world (Deresky, 2007).

Leaders are people who hold a dominant or superior position within their
field, and are able to exercise a high degree of control or influence over others.
LEADERSHIP BEHAVIOURS AND STYLES
AUTHORITARIAN LEADERSHIP
Authoritative leaders provide clear expectations of what needs to be
done, when it should be done and how it should be done.
A clear division between the leader and the followers.

Leaders make decisions independently with little or no input from the

rest of the group.
Involves the use of a one-way communication from manager to
subordinates.
Best applied to situations where there is little time for group decision-
making or where the leader is the most knowledgeable member of the
group.
 CONT.
There are a few problems with this style:

(a) Decision-making is less creative as the majority of the ideas come from
the leaders themselves without asking and considering the opinion of the
workers;

(b) It is difficult for firms to move from an authoritarian style to a

democratic style and vice versa;

(c) Leaders who abuse this style are usually viewed as controlling, bossy and
dictatorial.
 PARTICIPATIVE LEADERSHIP
Democratic leaders offer guidance to group members.
They also participate in the group and allow input from other group
members
Using this style is not a sign of weakness; rather, it is a sign of strength as

most employees will respect the leaders.

The leader is not expected to know everything and this is why decision-
making is shared with more knowledgeable and skillful employees.
Using this style is of mutual benefit as it allows employees to become part of

the team and allows managers to make better decisions.

DELEGATIVE LEADERSHIP
In this type of leadership, the leader allows the employees to make the
decisions.
Delegative leaders offer little or no guidance to group members and leave
decision-making up to group members.
However, the leader is still responsible for the decisions made.

This is used when employees are able to analyze the situation and
determine what needs to be done and how to do it.
Leaders will only make important decisions based on the predetermined set
of priorities and at the same time, will delegate certain tasks to the
employees.
LEADERSHIP ACROSS CULTURES

The United States;

Japan;

China;

Middle East;

Europe; and

Latin America.
UNITED STATES LEADERSHIP STYLES
United States is a highly individualistic and masculine-oriented country
where the culture emphasizes the active recognition of their people roles
and contributions.
The American leadership style is seemingly participative and supportive as
it provides strong support in carrying out organizational objectives and
targets.
The participative leadership style involves strong roles played by
subordinates.
JAPANESE LEADERSHIP STYLES

Japan is well known for its paternalistic approach to leadership.

Japanese leaders will usually try to establish an atmosphere of respect
and obedience from their subordinates.
Japanese organisations are highly hierarchical and rigidly organised,

the leaders have an outstanding concern for the personal lives of their
subordinates.
In terms of decision-making, they similarly acknowledge the consensus
of everyone particularly during extensive consultation.
CHINESE LEADERSHIP STYLES

Leaders in China are said to be more authoritarian, which could

have been influenced by the Chinese communist ideology.
However, the country economic progress is creating a new cadre of
leaders whose styles are different from those of past leaders.
Integrating Western best practices with Chinese wisdom and one
of the most important differences that has led to business
leadership success in Chinese companies today.
MIDDLE EASTERN LEADERSHIP STYLES

The Middle Eastern style of

management is highly
authoritarian.
Middle Eastern organizations are
characterized by a one-way
downward flow of information
and influence from authoritarian
leader to subordinates.
Decision making flows from the
top to the bottom, known as a
top-down approach.
Decisions are made only at the

highest levels.
EUROPEAN LEADERSHIP STYLES
There are some differences in leadership styles among European
countries.
British managers, tend to use a highly participative leadership style
as the political background of the country favors it, not highly
involved in day-to-day affairs of the business.
French and Germans, prefer a more work-centered, authoritarian
approach.
Scandinavian countries, make wide use of participative leadership
approaches, with worker representation on the boards of directors
and high management-worker interaction regarding workplace
design and changes.
AMERICAN LATIN LEADERSHIP STYLES

Latin American leadership styles indicates universality among

countries.
Mexican leaders have a combination of authoritarian and participative
behaviors.
Leaders in Chile, Argentina and Bolivia also show signs of
authoritarian behaviors.
Managers who welcome input from workers are viewed as incompetent
or weak.
TYPES OF LEADERS
A) TRANSFORMATIONAL LEADERS

This type of leader can be associated with visionary agents with a

sense of mission and capable of motivating their followers to accept
new goals and new ways of doing things.
They always build commitment to the mission and always try to
achieve the objective of the organization.
Working for a transformational leader can be a wonderful and
uplifting experience as they put passion and energy into everything
and care about subordinates and their need to succeed.
B) TRANSACTIONAL LEADERS
This type of leader focuses on rewards in exchange for motivation,
productivity and effective task accomplishment.
This type of leader believes that the prime purpose of subordinates is
to do what their manager tells them to do, and could either be
rewarded or punished for the job they do.
Rewards could be in terms of work for pay, promotion or other
psychological rewards such as pride, status, recognition and self-
esteem.
C) CHARISMATIC LEADERS

Charismatic leaders inspire and motivate employees through their

charismatic traits and abilities.
Leaders demonstrate charm, grace and self-belief, which are needed
to create followers as people follow others whom they personally
admire.
There is a personal magnetism among these leaders that contributes
to remarkable ability to get other people to endorse to their vision
and promote it passionately.
 CONT.
Charismatic leaders use a wide range of methods to manage their image
and, if they are not naturally charismatic, may tirelessly practice
developing their skills.
They may engender trust through visible self-sacrifice and taking
personal risks in the name of their beliefs.
Charismatic leaders will always show these traits:

(a) Inspire great confidence in their followers;

(b) Very persuasive; and
(c) Make very effective use of body language and verbal language when
communicating.