CHAPTER 14 LEADERSHIP AND MANAGEMENT BEHAVIOR IN MULTINATIONAL COMPANIES

CHAPTER 14

LEADERSHIP AND

MANAGEMENT BEHAVIOR

IN MULTINATIONAL

COMPANIES

INTRODUCTIONINTRODUCTION

• Leadership: influencing group members to achieve goals

• Excellent leaders: motivate their employees to achieve more than minimal requirements

• The challenges of leadership in a multinational company

GLOBAL LEADERSGLOBAL LEADERS

•Have skills and abilities to manage people from diverse backgrounds•cosmopolitan •skilled at intercultural communication

•culturally sensitive

•rapid acculturators•know local cultures/social institutions

•facilitate subordinates’ intercultural performance

Global leaders, continuedGlobal leaders, continued

Global leaders, continuedGlobal leaders, continued

•use cultural synergy•promote and use the growing world culture

THREE CLASSIC MODELS: THREE CLASSIC MODELS: A VOCABULARY OF A VOCABULARY OF

LEADERSHIPLEADERSHIP

•Leadership traits•Leader behavior•Contingency leadership

models

LEADERSHIP TRAITSLEADERSHIP TRAITS

•Trait models of leadership: Are leaders born or made?

•The great person theory

TRAITS OF SUCCESSFUL U.S. TRAITS OF SUCCESSFUL U.S. LEADERSLEADERS

• Higher intelligence/self confidence • More initiative/assertiveness/

persistence • Greater desire for responsibility

and influence• Greater awareness of the needs of

others

U.S. PERSPECTIVES ON U.S. PERSPECTIVES ON LEADERSHIP BEHAVIORSLEADERSHIP BEHAVIORS

•Two major types of leadership behaviors

•1. Initiating structure: task-centered leaders•give directions, establish give directions, establish

standardsstandards

•2. Focus on social and emotional needs of employees:

• consideration or person-centered leaders

U.S. perspectives on U.S. perspectives on leadership behaviors, leadership behaviors,

continuedcontinued

•Autocratic •Benevolent•Democratic•Consultative or

participative leadership style

LEADER DECISION LEADER DECISION MAKING STYLESMAKING STYLES

JAPANESE LEADERSHIP JAPANESE LEADERSHIP Performance-Maintenance Performance-Maintenance

(PM) Theory(PM) Theory

•Performance function (P)•similar to task-centered similar to task-centered

•The maintenance function (M)•similar to person-centered similar to person-centered

•PM leader focuses on influencing groups

WHICH STYLE OF LEADER WHICH STYLE OF LEADER BEHAVIOR IS BEST?BEHAVIOR IS BEST?

• It all depends •Contemporary views:

challenge the assumption that one style of leadership behavior fits all situations

CONTINGENCY THEORIESCONTINGENCY THEORIES

•Assumption:•different styles and different styles and

different leaders are more different leaders are more appropriate for different appropriate for different situationssituations

FIEDLER ON LEADERSHIPFIEDLER ON LEADERSHIP

• Success depends on: • 1. Leader/subordinates 1. Leader/subordinates

relationshipsrelationships• 2. Subordinates' tasks2. Subordinates' tasks• 3. Power of the leader3. Power of the leader

• Effectiveness = style matches situation

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PATH-GOAL THEORYPATH-GOAL THEORY

• Identifies four types of leadership styles• directivedirective• supportivesupportive• participativeparticipative

• achievement-orientedachievement-oriented • See Exhibit 14.3 nextSee Exhibit 14.3 next

Leadership Styles:Directive

SupportiveParticipative

Achievement-Oriented

SubordinateCharacteristics:

AbilitiesNeeds

Work Experience

Characteristics of theWork Environment:

Organizational DesignJob Tasks

Work Group

MotivationalProcesses:Expectancy

ValanceInstrumentality

Outcomes:Effort

Performance

PATH-GOAL THEORY FITSPATH-GOAL THEORY FITS

• Subordinates • high achievement needs = high achievement needs =

achievement-oriented ldr.achievement-oriented ldr.• high social needs = supportive high social needs = supportive

ldr.ldr.• Job unstructured = directive or

achievement-oriented ldr.

THE NATIONAL THE NATIONAL CONTEXT CONTEXT

CONTINGENCY MODELCONTINGENCY MODEL

Exhibit 14.5 (next) Exhibit 14.5 (next) shows the national-shows the national-

context contingency context contingency model of leadership model of leadership

National Contex t

National Context

Subordinate Characteristics:

NeedsEducation

Achievement Motivation

Outcomes:Performance

MotivationSatisfaction

Leader Behaviors&

Leadership Traits

SubordinateMotivation

Work Setting:Nature of Tasks

Nature of Work GroupOrganizational Structu re

National Context

National Context

NATIONAL CONTEXT AND NATIONAL CONTEXT AND LEADER BEHAVIORSLEADER BEHAVIORS

•Regardless of cultural background, leaders use both person and task-centered behaviors

•Different behaviors communicate leadership style

•Different tactics preferred

LEADERSHIP TRAITS AND LEADERSHIP TRAITS AND BEHAVIORS IN THE BEHAVIORS IN THE

NATIONAL CONTEXTNATIONAL CONTEXT

•Selected findings from the GLOBE study•Global Leadership and Organizational Behavior Effectiveness

•see Exhibits 14.6 to 14.8

Large Range of Cultural Diff erences

Small Range of Cultural Diff erences

Cunning Subdued Provocateur Sensitive Evasive Ambitious Group conflict avoider Status conscious Risk taker I ndependent Cautious

Self- sacrificing Compassionate I ntuitive Enthusiastic Worldly Logical Able to anticipate Unique Sincere Orderly I ndirect

Positively Regarded Traits and Behaviors

Negatively Regarded Traits and Behaviors

Trustworthy J ust Honest Plans ahead Encouraging Positive Dynamic Motivator Confidence builder

Dependable I ntelligent Decisive Eff ective bargainer Win- win problem solver Skilled administrator Communicator I nformed Team Builder

Loner Asocial Not cooperative Non- explicit Egocentric Ruthless Dictatorial

Contributes to outstanding leadership

EXHIBIT 14.8EXHIBIT 14.8Culturally-Contingent Beliefs Culturally-Contingent Beliefs

Regarding Effective Leadership Regarding Effective Leadership StylesStyles

I ndonesia

Mexico

Egypt

France

USA

Brazil

1 2 3 4 5 6 7

Participative

France

Denmark

Sweden

Indonesia

Egypt

Taiwan

1 2 3 4 5 6 7

Self- ProtectiveContributes to outstanding leadership

Exhibit 14.8 continuedExhibit 14.8 continued

France

Morocco

Denmark

I ndonesia

Nigeria

Philippines

1 2 3 4 5 6 7

Humane



Qatar

France

South

Korea

Colombia

Greece

Brazil

Morocco

1 2 3 4 5 6 7

Team Oriented



Qatar

Morocco

France

I srael

Philippines

1 3 5 7

Charismatic



EXHIBIT 14.9 PREFERRED EXHIBIT 14.9 PREFERRED LEADER INFLUENCE TACTICSLEADER INFLUENCE TACTICS

0 5 10 15 20 25

Bargaining

Reasoning

Sanctions

Higher Authority

Friendliness

Assertiveness

Coalitions

J apanese

Taiwanese

Austrialian

British

NATIONAL CONTEXT AND NATIONAL CONTEXT AND SUBORDINATE SUBORDINATE

EXPECTATIONSEXPECTATIONS•Differences in legitimate

prerogatives of leadership•High power distance -

autocratic leadership•Low power-distance -

leader be more like them

•Strong masculinity norms - more authoritarian leadership

•Strong uncertainty avoidance norms - subordinates expect the leader to provide more direction

National context and National context and subordinate expectations, subordinate expectations,

continuedcontinued

EXHIBIT 14.11 PREFERENCES EXHIBIT 14.11 PREFERENCES FOR THE “SPECIFICS” LEADERFOR THE “SPECIFICS” LEADER

0 20 40 60 80 100

CONTEMPORARY CONTEMPORARY LEADERSHIP LEADERSHIP

PERSPECTIVES: PERSPECTIVES: MULTINATIONAL MULTINATIONAL

IMPLICATIONSIMPLICATIONS

TWO BASIC FORMS OF TWO BASIC FORMS OF LEADERSHIPLEADERSHIP

•Transactional•Transformational

TRANSFORMATIONAL TRANSFORMATIONAL LEADERSHIPLEADERSHIP

• Articulates a vision• Breaks from the status quo• Provide goals and a plan• Gives meanings/purpose to goals• Take risks/motivated to lead• Builds a power base• Demonstrates high ethical/moral

standards

ATTRIBUTIONS AND ATTRIBUTIONS AND LEADERSHIPLEADERSHIP

•Leaders make attributions regarding subordinates

• Internal attribution - leader tends to correct or reward

•External attribution, leader modifies the work environment

THE CULTURAL THE CULTURAL CONTEXT AND CONTEXT AND

SUGGESTED SUGGESTED LEADERSHIP STYLESLEADERSHIP STYLES

EXHIBIT 14.12 LEADERSHIP AND EXHIBIT 14.12 LEADERSHIP AND JOB PERFORMANCE OF U.S. JOB PERFORMANCE OF U.S.

MANAGERS IN THE U.S. AND H. K.MANAGERS IN THE U.S. AND H. K.

0 0.2 0.4 0.6

Relationship

with

Performance

I nitiating

Structure

Consideration

Active

LeadershipU.S.Managers inHong Kong

U.S.Managers inthe U.S.

NATIONAL CULTURE NATIONAL CULTURE AND LEADERSHIP AND LEADERSHIP

STYLESTYLE

Cultural Context: Low PowerDistance and Low UncertaintyAvoidance

Leader Type: "The Democrat"

Recommended LeadershipStyles: Supportive,Participative, & Achievement

Example Country: Great Britain

Cultural context: High PowerDistance and Low UncertaintyAvoidance

Leader Type: "The Master"

Recommended LeadershipStyles: Directive & Supportive

Example Country: China

Cultural Context: Low PowerDistance and High UncertaintyAvoidance

Leader Type: " TheProfessional"

Recommended LeadershipStyles: Directive, Supportive,and Participative

Example Country: Germany

Cultural Context: High PowerDistance and High UncertaintyAvoidance

Leader Type: "The Boss"

Recommended LeadershipStyle: Directive

Example Country: Fran ce

CONCLUSIONSCONCLUSIONS

•Multinational managers strive to become global leaders

•A complex array of cultural, social, and institutional issues face the global leaders of today

Documents

CHAPTER 14 LEADERSHIP AND MANAGEMENT BEHAVIOR IN MULTINATIONAL COMPANIES