
 

|
 
   

9

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‡ Management theories: Theories X, Y,

and Z
‡ Leadership styles: authoritarian,
paternalistic, participative, laissez-faire
‡ The managerial grid
± Motivating Japanese and U.S. workers
‡ Japanese vs. U.S. Leadership Styles
± Overview
± Theory Z in detail
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‡ Leadership in China
‡ Transformational leadership vs. other
leadership styles
± Transactional
± Management-by-exception (active and passive)
± Laissez faire
‡ The GLOBE study of international leadership
‡ Characteristics of successful global
entrepreneurs

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{ 
{ 

 

± { 

 : A manager who

believes that people are basically lazy
and that coercion and threats of
punishment often are necessary to get
them to work.
± { 

 : A manager who
believes that under the right conditions
people will work hard and will seek
increased responsibility and challenge.

13-4
 { 

 

‡ { 

 : A manager who believes

that workers seek opportunities to participate
in management and are motivated by
teamwork and responsibility sharing.
± Combination of Theory Y and Japanese
management techniques
± Emphasizes mutual commitment between
the organization and the employee
± Theory developed by William Ouchi

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 |
  

‡ Leadership Behaviors and Styles:

± 

: use of work-centered behavior
designed to ensure task accomplishment.
± 
 

: use of work-centered behavior
coupled with protective employee centered concern
± 


 : use of both work or task centered
and people centered approaches to leading
subordinates.
± |
 
 ! The manager avoids taking action
and does not accept responsibility for the actions of
subordinates

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  "
 # 


 

|
 

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 |
 

Participative
Leader

Continued interaction and exchange of information between

leader and subordinates and among subordinates.

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$

9, 5 Management
Style = Paternalistic

Participative

Authoritarian
Laissez-faire

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 { 

 
$

%

  &' 
‡ Japanese workers with high achievement motivation
performed best when a participative leadership style
was used.
‡ Japanese workers with low achievement motivation
± Performed best when an authoritarian leadership style was
used
± By the end of the study, a participative leadership style was
the second most effective style
‡ A laissez-faire leadership style was not effective with
either type of workers.
‡ Results for U. S. workers have been similar.

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 %


‡ Japanese managers and employees have a
high need for safety and security
‡ Japanese managers also have a strong belief
in the ability of subordinates to take initiative
and exercise leadership
± Managers in English-speaking countries have an
even stronger belief in the ability of subordinates
to take initiative
‡ Japanese executives often give ambiguous
instructions and expect subordinates to fill in
the details

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 %



‡ Japanese managers focus more on problems.

U.S. managers focus more on opportunities.
‡ The percentage of employees in Japan who
have lifetime employment is 30% or less, and
declining
± Lifetime employment is restricted to permanent,
full-time employees of large companies. These
employees are usually male.
‡ Ouchi¶s Theory Z (Table 13.4, page 443)

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 %

(

‡ How senior managers process information and

learn:
± )
 
* 

: Japanese executives are
taught and tend to use variety amplification-the
creation of uncertainty and the analysis of many
alternatives regarding future action.
± )
  
: U.S. executives tend to use
variety reduction²limiting uncertainty and focusing
action on a limited number of alternatives.

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‡ Three factors used in a leadership study

± Individualism: The importance of self-sufficiency
and personal accomplishments
± Collectivism: willingness to subordinate personal
goals to those of the work group with an emphasis
on sharing and group harmony
± Confucianism: Measured by the importance of
societal harmony, virtuous interpersonal behavior,
and personal and interpersonal harmony

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‡ A new generation of Chinese managers is
emerging whose work values differ from
those of former managers
‡ Younger managers are
± more individualistic than older managers
± less committed to collectivism and
Confucianism than older managers

13-16
 {





{
 *

|
 

‡ Transactional leaders exchange rewards for

effort and performance and work on a
³something for something´ basis (also called
contingent reward)
‡ Transformational leaders are visionary agents
with a sense of mission who are capable of
motivating their followers to accept new goals
and new ways of doing things

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{
 *

 |
 
‡ Idealized influence ± charisma. Ability to get their
followers to accept a common purpose or vision
‡ Inspirational motivation ± an easy-to-understand
sense of purpose regarding what should be done.
‡ Intellectual stimulation ± giving people a new
paradigm or world view
‡ Individualized consideration ± identify development
needs and see that they are met.

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 * "+,


± Management-by-Exception - Active: The

manager monitors performance and takes
corrective action when deviations from
standards occur
± Management-by-Exception - Passive: The
manager intervenes in situations only when a
problem is called to his attention

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|
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.


  +
  
‡ Transformational
‡ Transactional (contingent reward)
‡ Management by exception ± active
‡ Management by exception ± passive
‡ Laissez faire
‡ This list is based on research in 8 countries.
‡ The way a leadership style is applied varies
according to a country¶s culture.

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/
" |
 

‡ Ads for management positions in western

Europe
± Great differences among countries regarding their
leadership requirements
± All countries expected executive applicants to
have good social and personal qualities
‡ Culture clusters and leader effectiveness
± Effective leader behaviors tend to vary by cultural
cluster
± Post-Communist countries put greater emphasis
on administrative skills than other countries.

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  "  

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|
 
$|-+ 
‡ Charismatic/Value-Based leadership captures
the ability of leaders to inspire, motivate, and
encourage high performance outcomes from
others based on a foundation of core values.
‡ Team-Oriented leadership places emphasis on
effective team building and implementation of a
common goal among team members

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0 

|
 
‡ Participative leadership reflects the extent to
which leaders involve others in decisions and
their implementation.
‡ Humane-Oriented leadership comprises
supportive and considerate leadership.
‡ Autonomous leadership refers to independent
and individualistic leadership behaviors.
‡ Self-Protective leadership ³focuses on ensuring
the safety and security of the individual and
group through status-enhancement and face-
saving.´
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  "  

&'     

‡ Integrity: being trustworthy, just, honest
‡ Having foresight and planning ahead
‡ Being positive, dynamic, motivating,
encouraging, and building confidence
‡ Communicating and being informed
‡ Being a coordinator and team integrator

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|
 
"  

   
‡ Most other leadership attributes work well in
some cultures but not in others.
‡ Two different collectivist approaches
± Nordic and Scandinavian countries: Participative
and self-protective leadership are valued most
highly.
± East Asia: Charismatic/values-based and team-
oriented leadership are valued most highly.

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‡ 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.

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 +   
‡ Are more creative and innovative than non-
entrepreneurs
‡ Do not need structure, support, or an
organization to guide their thinking
‡ See things differently and add value to
products in new ways
‡ Are willing to take personal and business
risks, and to do so in visible ways

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+   
‡ 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.

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