Global Issues in Leadership

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Topic 19

• Global Issues in Leadership

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Leadership in the Cross-cultural Context

• There are truths on this side of the Pyrenees
  which are falsehoods on the other.- Michel de
  Montaigne

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The Cross-cultural Context

• The vast majority of the contemporary scholarship
  directed toward leaders and the leadership
  process has been conducted in North America and
  Western Europe
• Do leadership theory and research results
  generalize from one culture to the next?

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Cultural Constraints in Management Theories

• Comparative management - diversity in management
  practices around the world
• Generally accepted U.S. theories may not apply or
  may only apply in part outside of the borders of
  ones country of origin
• Management scientists and theorists are human
• Their ideas cannot help but reflect the
  constraints of their environment
• The idea that validity of a theory is constrained
  by national borders is more obvious in Europe
  than in the U.S.

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The Five Dimensions of Culture
Power Distance
Individualism- Collectivism
Long-term- Short-term Orientation
Masculinity- Femininity
Uncertainty Avoidance
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Idiosyncrasies of American Management Theories

• In comparison to other countries, the U.S.
  culture is
• Below average on power distance and
• Below average on uncertainty avoidance
• Highly individualistic
• Fairly masculine
• Short-term-oriented

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Germany

• The manager is not a cultural hero in Germany
• The engineer fills the hero role
• The highly skilled and responsible German workers
  do not need an American-style manager to
  motivate them
• Germans have the highest rate of personnel in
  productive roles and the lowest both in
  leadership and staff roles
• Business schools are virtually unknown in Germany

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Japan

• The American-type manager is also missing in
  Japan
• The core of the Japanese enterprise is the
  permanent worker group
• The Japanese are paid according to seniority
  rather than position
• The Japanese are controlled by their peer group
  rather than by their manager

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Leadership in Japan

• Japan is higher in masculinity and uncertainty
  avoidance and medium on collectivism
• The ideal leadership model in Japan involves
  skillful unassertiveness, and leading by implicit
  consensus, nonverbal communication, and indirect
  discussions

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France

• The U.S. style manager does not exist in France
  either
• Philippe dIribarnes 3 basic management
  principles
• Fair contract between employer and employee
• Honor of each class in a society
• Consensus among parties in a group
• Matrix organizations have never become popular in
  France as they have in the U.S.

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Holland

• Need for consensus among parties is based on an
  open-ended exchange of views and a balancing of
  interests
• Leadership in Holland presupposes modesty, as
  opposed to assertiveness in the U.S.
• Americans attach more importance on earnings,
  advancement, benefits, and security of
  employment,
• Dutch attach more importance to freedom, mutual
  consultation, training, contributing to
  organizational success, using skills and
  abilities, and helping others

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The Overseas Chinese

• The overseas Chinese are found in three
  countries Taiwan, Hong Kong, and Singapore
• American enterprises in these countries lack
  almost all characteristics of modern U.S.-style
  management
• The systems origin is based on the principles of
  Confucian virtue
• Overseas Chinese command a collective gross
  national product that exceeds the GNP of
  Australia
• There is no denying that their system works

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Russia and China

• The crumbling of the former Eastern bloc has left
  a scattering of states and would-be states
• Their political and economic future is very
  uncertain
• Free-market capitalism is supposed to be the
  answer in the problems in these regions
• In studying leadership, theorists cannot neglect
  the great literature of these countries
• What works in China may not necessarily work in
  Russia

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Leadership in Taiwan

• Most overseas business and management practices
  in Taiwan are based on the family business model
• Open discussion about decisions tends to be
  viewed as a challenge to the leaders authority
• Judgement of a persons worth is based on loyalty
  rather than ability

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Leadership in South Korea

• South Korea is more heavily influenced by
  Confucianism than other Asian countries
• Its high collectivism and medium/high uncertainty
  avoidance make it culturally akin to Taiwan
• Centralized planning and control, and strong
  directiveness are evident in South Korean
  companies

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Leadership in Mexico

• Mexicos high collectivism, paternalism, power
  distance, and masculinity seems to resemble the
  Asian culture cluster more than the United States
• In Mexican society, status differences dominate
• Mexican history is filled with revolutionary
  charismatic leaders

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Management Transfer to Poor Countries

• Four-fifths of the world population live in
  countries that are poor
• The export of Western management practices and
  theories to poor countries has contributed little
  to nothing to their development
• This questions the idea that Western theories
  work in non-Western environments

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Leadership in the United States

• The United States is culturally unique in
  comparison to the other countries
• Much of the U.S. leadership research in the last
  decade focused on charismatic leadership

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Multicultural Leader

• A leader with skills and attitudes to relate
  effectively to and motivate people across race,
  gender, age, social attitudes, and lifestyles

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Figure 14-2 Dimensions of Individual Values
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Culturally Sensitive Leader

• Willing to acquire knowledge about local customs
• Willing to learn to speak the language
• Patient
• Adaptable
• Flexible
• Willing to listen and learn

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Cultural Intelligence (CQ)
an outsiders ability to interpret someones
unfamiliar and ambiguous gestures the way that
persons compatriots would.
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Facets of Cultural Intelligence (CQ)

• Cognitive CQ (head)
• Physical CQ (body)
• Emotional/motivational CQ (heart)

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Global Leadership Skills

• Behavioral complexity that allows the leader to
  attain corporate profitability and productivity,
  continuity and efficiency, commitment and morale,
  and adaptability and innovation
• Stewardship
• Ability to satisfy three metavalues including
  community, pleasure, and meaning

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Global Leadership Skills

• Cultural sensitivity
• Culturally adventurous
• Good command of a second language

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Cultural Diversity Initiatives

• Hold managers accountable for achieving diversity
• Establish minority recruitment, retention, and
  mentoring programs
• Conduct diversity training

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Cultural Diversity Initiatives (contd)

• Conduct intercultural training
• Encourage the development of employee networks
• Avoid group characteristics when hiring for
  person-organization fit

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Inter-Cultural Training
A set of learning experiences designed to help
employees understand the customs, traditions, and
beliefs of another language
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Summary

• The modern leader must be multicultural
• Managing for diversity brings a competitive
  advantage to the firm
• The leader must be aware of overt and subtle
  cultural differences to influence, motivate, and
  inspire culturally diverse people

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Summary (contd)

• Differences in cultural values help explain
  differences among people
• Cultural values influence leadership style as
  well as the behavior of other workers
• Cultural sensitivity is essential for inspiring
  people from different cultures

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Summary (contd)

• Global leadership skills help improve a companys
  reputation and contribute to a sustainable
  competitive advantage
• Top management commitment to valuing diversity is
  clearest when valuing diversity is embedded in
  organizational strategy