Chapter

13
Leadership Across Cultures
The specific objectives of this chapter are:
1. DESCRIBE the basic philosophic foundation and
styles of managerial leadership
2. EXAMINE the attitudes of European managers
toward leadership practices
3. COMPARE and CONTRAST leadership styles in
Japan with those in the United States
 Chapter
13
Leadership Across Cultures
The specific objectives of this chapter are:
4. REVIEW leadership approaches in China, the Middle
East, and developing countries
5. EXAMINE recent, research and findings regarding
leadership across cultures
 Chapter
13
Leadership Across Cultures
The specific objectives of this chapter are:
6. DISCUSS the relationship of culture clusters and
leader behavior on effective leadership practices
including increasing calls for more responsible global
leadership
 4

Foundation for Leadership

Philosophical Background:
Theories X, Y, and Z

 A manager who believes that

Theory X Manager people are basically lazy and
that coercion and threats of
punishment often are
necessary to get them to work.
 5

Foundation for Leadership

Philosophical Background:
Theories X, Y, and Z

 A manager who believes that

Theory X Manager under the right conditions
people not only will work hard
Theory Y Manager but will seek increased
responsibility and challenge.
 6

Foundation for Leadership

Philosophical Background:
Theories X, Y, and Z

 A manager who believes that

Theory X Manager workers seek opportunities to
participate in management and
Theory Y Manager are motivated by teamwork and
responsibility sharing.

Theory Z Manager
 7

Foundation for Leadership

Leadership Behaviors
and Styles
The use of work-centered
Authoritarian behavior designed to ensure task
Leadership accomplishment.
The use of work-centered
Paternalistic
behavior coupled with a protective
Leadership employee centered concern.
The use of both work- or task-
Participative
centered and people centered
Leadership approaches to leading subordinates.
 8

Leader–Subordinate Interactions

Authoritarian Leader

Subordinate Subordinate Subordinate

One-way downward flow of information

and influence from authoritarian leader
to subordinates.

Adapted from Figure 13–1: Leader–Subordinate Interactions

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
 9

Leader–Subordinate Interactions

Paternalistic Leader

Subordinate Subordinate Subordinate

Continual interaction and exchange of

information and influence between
leader and subordinates.

Adapted from Figure 13–1: Leader–Subordinate Interactions

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
 10

Leader–Subordinate Interactions

Participative Leader

Subordinate Subordinate Subordinate

Continual interaction and exchange of

information and influence between
leader and subordinates.

Adapted from Figure 13–1: Leader–Subordinate Interactions

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
 11

Likert’s Systems or Styles Leadership

Adapted from Figure 13–2: Likert’s Systems or Styles Leadership

 12

Likert’s Systems or Styles Leadership

Adapted from Figure 13–2: Likert’s Systems or Styles Leadership

 13

The Managerial Grid

High 1,9 Management Style 9,9 Management Style

9

Thoughtful attention to needs of Work accomplishment is from

Concern for People/Relationships

people for satisfying relationships committed people; interdependence

8

leads to a comfortable friendly through a “common stake” in

organization atmosphere and organization purpose leads to
7

work tempo relationships of trust and respect

5,5 Management Style
6

Adequate organization performance is

possible through balancing the necessity
5

to get out work with maintaining morale of

people at a satisfactory level
4
3

1,1 Management Style 9,1 Management Style

Exertion of minimum effort to get Efficiency in operations results from
2

required work done is arranging conditions of work in such

Low
appropriate to sustain a way that human elements
1

organization membership interface to a minimum degree

1 2 3 4 5 6 7 8 9
Low Concern for Production/Task High

Adapted from Figure 13–2: The Managerial Grid

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
 14

Leadership in the International Context

How do leaders in other countries attempt to direct

or influence their subordinates?
Are their approaches similar to those used in the
United States?

Research shows that there are both similarities and

differences – most international research on leadership
has focused on Europe, East Asia, the Middle East,
and developing countries such as India, Peru, Chile,
and Argentina.
 15

Leadership in the International Context

Attitudes of European European managers tend to use a
participative approach. Researchers
Managers Toward investigated four areas relevant to
Leadership Practices leadership.

Capacity for Leadership Does the leader believe that employees

and Initiative prefer to be directed and have little
ambition? (Theory X)
OR
Does the leader believe that characteristics
such as initiative can be acquired by most
people regardless of their inborn traits and
abilities? (Theory Y)
 16

Leadership in the International Context

Attitudes of European Most evidence indicates European
managers tend to use a participative
Managers Toward approach. Researchers investigated
Leadership Practices four areas relevant to leadership.

Capacity for Leadership Does the leader believe that detailed,

and Initiative complete instructions should be given to
subordinates and that subordinates need only
Sharing Information this information to do their jobs?
and Objectives OR
Does the leader believe that general
directions are sufficient and that subordinates
can use their initiative in working out the
details?
 17

Leadership in the International Context

Attitudes of European Most evidence indicates European
managers tend to use a participative
Managers Toward approach. Researchers investigated
Leadership Practices four areas relevant to leadership.

Capacity for Leadership Does the leader support participative

and Initiative leadership practices?

Sharing Information
and Objectives

Participation
 18

Leadership in the International Context

Attitudes of European Most evidence indicates European
managers tend to use a participative
Managers Toward approach. Researchers investigated
Leadership Practices four areas relevant to leadership.

Capacity for Leadership Does the leader believe that the most
and Initiative effective way to control employees is
through rewards and punishment?
Sharing Information
OR
and Objectives
Does the leader believe that employees
Participation respond best to internally generated control?

Internal Control
 19

Clusters of Countries in the Haire,

Ghiselli, and Porter Study

(Believe workers have more initiative,

more autocratic, more external rewards)

Adapted from Table 13–3: Clusters of Countries in the Haire, Ghiselli, and Porter Study
 20

Leadership in the International Context

Attitudes of European The Role of Level, Size, and
Managers Toward Age on European Managers’
Leadership Practices Attitudes Toward Leadership
 Higher-level managers tend to express more democratic values
than lower-level managers in some countries – in other
countries, the opposite was true
 Company size tends to influence the degree of participative-
autocratic attitudes
 Younger managers were more likely to have democratic values
when it came to capacity for leadership and initiative and to
sharing information and objectives
 21

Leadership in the International Context

Attitudes of European
Conclusion About European
Managers Toward
Leadership Practices
Leadership Practices
 Most European managers tend to reflect more participative and
democratic attitudes – but not in every country
 Organizational level, company size, and age seem to greatly
influence attitudes toward leadership
 Many of the young people in this study now are middle-aged –
European managers in general are highly likely to be more
participative than their older counterparts of the 1960s and
1970s
 22

Leadership in the International Context

Japanese Leadership
Approaches

 Japan is well known for its paternalistic approach to leadership

 Japanese culture promotes a high safety or security need,

which is present among home country–based employees as
well as MNC expatriates
 Japanese managers have much greater belief in the capacity of
subordinates for leadership and initiative than do managers in
most other countries – only managers in Anglo-American
countries had stronger feelings in this area
 23

Leadership in the International Context

Differences Between
Japanese and U.S.
Leadership Styles
 Except for internal control, large U.S. firms tend to be more
democratic than small ones – the profile is quite different in
Japan
 Younger U.S. managers appear to express more democratic
attitudes than their older counterparts on all four leadership
dimensions
 Japanese and U.S. managers have a basically different
philosophy of managing people – Ouchi’s Theory Z combines
Japanese and U.S. assumptions and approaches providing a
comparison of seven key characteristics
 24

Leadership in the International Context

Differences Between
Japanese and U.S.
Leadership Styles
Another difference between Japanese and U.S. leadership styles is how
senior-level managers process information and learn
 Variety Amplification
Japanese executives are taught and tend to use variety amplification – the
creation of uncertainty and the analysis of many alternatives regarding
future action
 Variety Reduction
U.S. executives are taught and tend to use variety reduction – the limiting of
uncertainty and the focusing of action on a limited number of alternatives
 25

Productivity of Japanese Groups with High-Achievement

Motivation under Different Leadership Styles
80

50

Productivity
—— PM Leadership Style 9,9
(high task, high people)
—— M Leadership Style 1,9
(low task, high people)
—— P Leadership Style 9,1
(high task, low people)
0
—— PM Leadership Style 1,1
1 2 3 4 5 6 7
(low task, low people)
Sessions
Adapted from Figure 13–3: Productivity of Japanese Groups with High-Achievement Motivation under Different
Leadership Styles
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
 26

Productivity of Japanese Groups with Low-Achievement

Motivation under Different Leadership Styles
80

50

Productivity
—— P Leadership Style 9,1
(high task, low people)
—— PM Leadership Style 9,9
(high task, high people) 25

—— PM Leadership Style 1,1

(low task, low people)
—— M Leadership Style 1,9 01 2 3 4 5 6
(low task, high people) 7 Sessions
Adapted from Figure 13–4: Productivity of Japanese Groups with Low-Achievement Motivation under Different
Leadership Styles
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
 27

Leadership in the International Context

Leadership in China

 Importance that the respondents in one study assigned to three areas:

Measured by importance of self sufficiency and

Individualism
personal accomplishments

Measured by willingness to subordinate personal

Collectivism goals to those of the work group with an emphasis
on sharing and group harmony
Measured by the importance of societal harmony,
Confucianism virtuous interpersonal behavior, and personal and
interpersonal harmony
 28

Leadership in the International Context

Leadership in China

 The “New Generation” group scored significantly higher on

individualism than did the current and older generation groups
 They also scored significantly lower than the other two groups on
collectivism and Confucianism
 These values appear to reflect the period of relative openness and
freedom, often called the “Social Reform Era,” in which these new
managers grew up
 They have had greater exposure to Western societal influences may
result in leadership styles similar to those of Western managers
 29

Leadership in the International Context

Leadership in the
Middle East
 There may be much greater similarity between Middle Eastern leadership
styles and those of Western countries
 Western management practices are evident in the Arabian Gulf region due to
close business ties between the West and this oil-rich area as well as the
increasing educational attainment, often in Western universities, of Middle
Eastern managers
 Organizational culture, level of technology, level of education, and
management responsibility were good predictors of decision-making styles in
the United Arab Emirates
 There is a tendency toward participative leadership styles among young Arab
middle managers, as well as among highly educated managers of all ages
 30

Differences in Middle Eastern and

Western Management

Adapted from Table 13–5: Differences in Middle Eastern and Western Management
 31

Differences in Middle Eastern and

Western Management

Adapted from Table 13–5: Differences in Middle Eastern and Western Management
 32

Leadership in the International Context

Leadership Approaches
in Developing Countries
 Managerial attitudes in India are similar to Anglo-
Americans toward capacity for leadership and initiative,
participation, and internal control, but different in sharing
information and objectives
 Leadership styles in Peru may be much closer to those in
the United States than previously assumed
 Developing countries may be moving toward a more
participative leadership style
 33

Recent Findings and Insights About

Leadership
Transformational, Transactional,
and Charismatic Leadership
Transformational leaders are characterized by four interrelated
factors:
Idealized Influence  Transformational leaders are a
source of charisma and enjoy the
admiration of their followers.
 They enhance pride, loyalty, and
confidence in their people, and
align these followers by providing a
common purpose or vision that the
latter willingly accept
 34

Recent Findings and Insights About

Leadership
Transformational, Transactional,
and Charismatic Leadership
Transformational leaders are characterized by four interrelated
factors:
Idealized Influence  These leaders are extremely
effective in articulating their vision,
mission, and beliefs in clear-cut
Inspirational Motivation ways, thus providing an easy-to
understand sense of purpose
regarding what needs to be done
 35

Recent Findings and Insights About

Leadership
Transformational, Transactional,
and Charismatic Leadership
Transformational leaders are characterized by four interrelated
factors:
Idealized Influence  Transformational leaders are able
to get their followers to question
old paradigms and to accept new
Inspirational Motivation views of the world regarding how
things now need to be done
Intellectual Stimulation
 36

Recent Findings and Insights About

Leadership
Transformational, Transactional,
and Charismatic Leadership
Transformational leaders are characterized by four interrelated
factors:
Idealized Influence  These leaders are able to diagnose
and elevate the needs of each of
their followers through
Inspirational Motivation individualized consideration, thus
furthering the development of these
Intellectual Stimulation people

Individualized
Consideration
 37

Recent Findings and Insights About

Leadership
Transformational, Transactional,
and Charismatic Leadership
Four other types of leaders are less effective than transformational
leaders Clarifies what needs to be done, provides
Contingent Reward (CR)
psychic and material rewards to those
Leader
complying with his or her directives
Monitors follower performance and takes
Active Management-by-
corrective action when deviations from
Exception (MBE-A) Leader standards occurs

Passive Management-by- Takes action or intervenes in situations only

Exception (MBE-P) Leader when standards are not met

Laissez-Faire (LF) Leader Avoids intervening or accepting

responsibility for follower actions
 38

An Optimal Profile of Universal Leadership Behaviors

I’s–transformational Effective
CR–Contingent Reward
MBE-A–Active Management-by-Exception I’s
MBE-P–Active Management-by-Exception
LF–Laissez-Faire CR

MBE-A
Passive Active
MBE-P

LF

Effective
Adapted from Figure 13–5: An Optimal Profile of Universal Leadership Behaviors
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
 39

Qualities Most Demanded in Advertisements for

European Executives

Adapted from Table 13–6: Qualities Most Demanded in Advertisements for European Executives
 40

Qualities Most Demanded in Advertisements for

European Executives

Adapted from Table 13–6: Qualities Most Demanded in Advertisements for European Executives
 41

Rankings of the Most Important

Leadership Attributes

Adapted from Table 13–7: Rankings of the Most Important Leadership Attributes by Region and Country Cluster
 42

Rankings of the Most Important

Leadership Attributes

Adapted from Table 13–7: Rankings of the Most Important Leadership Attributes by Region and Country Cluster
 43

Recent Findings and Insights About

Leadership
Leader Behavior, Leader
Effectiveness, and Leading Teams
 One of the keys to successful global leadership is knowing
what style and behavior works best in a given culture and
adapting appropriately
 In affective cultures, such as the United States, leaders
tend to exhibit their emotions
 Inneutral cultures, such as Japan and China, leaders
do not tend to show their emotions
 44

Leadership Tips for Doing Business in

Affective and Neutral Cultures
 45

Leadership Tips for Doing Business in

Affective and Neutral Cultures
 46

Leadership Tips for Doing Business in

Affective and Neutral Cultures
 47

Recent Findings and Insights About

Leadership
Ethically Responsible
Global Leadership
Linking leadership and corporate responsibility through
“responsible global leadership”
 Values Based Leadership
 Ethical Decision Making
 Quality Stakeholder Relationships

According to this view, global leadership must be based on core

values and credos that reflect principled business and leadership
practices, high levels of ethical and moral behavior, and a set of
shared ideals that advance organizational and societal well-being.
 48

Recent Findings and Insights About

Leadership
Entrepreneurial
Leadership and Mindset
 Promising start-ups fail for many reasons
 Lack of capital, absence of clear goals and objectives, and failure
to accurately assess market demand and competition
 Poor personal leadership ability of the entrepreneurial CEO
 For international new ventures, these factors are
significantly complicated by
 Differences in cultures, national political and economic systems,
geographic distance, and shipping, tax, and regulatory costs.
 49

Recent Findings and Insights About

Leadership
Entrepreneurial
Leadership and Mindset
Key personal characteristics of entrepreneurs and
strong leaders
 Appear to be more creative and innovative than non-
entrepreneurs
 Tend to break the rules and do not need structure, support, or
an organization to guide their thinking
 See things differently and add to a product, system, or idea
value that amounts to more than an adaptation or linear
change
 Are more willing to take personal and business risks, and to do
so in visible and salient ways
 50

Recent Findings and Insights About

Leadership
Entrepreneurial
Leadership and Mindset
Key personal characteristics of entrepreneurs and
strong leaders
 They are opportunity seekers and are comfortable with failure,
rebounding quickly to pursue another opportunity
 They are characterized as adventurous, ambitious, energetic,
domineering, and self-confident

Entrepreneurial leaders operating internationally must possess cultural

sensitivity, international vision, and global mindset to effectively lead
their venture through challenges of doing business in other countries.
 51

Case
 Road to Hell