DIM2133

INTRODUCTION TO
CHAPTER 4:
CROSS CULTURAL
MANAGEMENT
CULTURE AND
LEADERSHIP
LEARNING OBJECTIVES

At the end on this topic, students should be able to

 Identify characteristics of leader across all cultures
 Explain leadership behavior and styles across cultures
LEADER
Hold dominant or superior position within their field, and are
able to exercise a high degree of control or influence over
others.
Have the ability to inspire and influence the thinking, attitudes
and behavior of people everywhere in the world (Deresky,
2007)
DIFFERENT CONCEPTIONS OF LEADERSHIP

A number of American and European theories about leadership.

 Most assume that leadership has to do with an individual intentionally exerting
influence on others to structure the relationships in an organisation.
 Definitions differ as to do with how the influence is exerted and the outcome of the
attempt to influence.
 The manager is often seen as the embodiment of stability within an organisation, the
leader as one who ensures the success of the organisation.
THE LEADER AND CORPORATE CULTURE

The mechanisms used by a leader to implant and maintain corporate culture

(Schein).
– What the leader considers important and pays attention to, what must be measured
and controlled
– The way a leader react to difficult situations/crises
– The priorities set when allocating resources
– The examples set by a leader
– The criteria used to allocate rewards and status as well as to reinforce desired
behaviours
– The criteria used for recruitment, selection, promotion and dismissal.
THEORIES EVOLVING AROUND THE LEADER

Scientific leadership
 Standard methods for doing a job – the worker is not required to think, only the
leader
 Bureaucratic organisations the result: carefully designed hierarchy of authority, with
clearly defined responsibilities:
 Functions specialised, information and control centralised
 Uniform application of standard rules and procedures.
THEORIES EVOLVING AROUND THE LEADER

The trait approach

Some people have traits and skills for leadership
 According to Stogdill (1974) great leaders throughout history have:
 high intelligence;
 considerable verbal fluency;
 overall knowledge;
 considerable initiative involving energy, ambition and persistence;
 height: tallness implies authority.
THEORIES EVOLVING AROUND THE LEADER

Human relations
Psychological and human factors identified relating to social norms and
non-economic rewards.
 Attempts made to marry the scientific and human approaches by
focusing on the role of the decision-makers.
 To operate successfully, leaders need to find a compromise between
rational, goal-oriented behaviour and non-rational behaviour among
an organisation’s employees.
TASK ORIENTATION VERSUS RELATIONSHIP ORIENTATION

Theories X and Y (McGregor)

A leader needs:
 To remain task-oriented to ensure effective performance
of the organisation
 To be relationship-oriented to ensure greater satisfaction among subordinates
 Theory X manager is results-driven, has little interest in human issues or the
workers’ morale
 Theory Y manager wants employees to participate in decision-making and problem-
solving, use their creativity to solve problems and further the organisation’s success.
TASK ORIENTATION VERSUS RELATIONSHIP ORIENTATION
(CONTINUED)

The contingency theory (Fiedler)

Leadership effectiveness is the result of interaction between the style of the leader and
the characteristics of the working environment.
 Three factors characterise this environment:
– Leader–member relationship: the degree of confidence, trust and respect
– Task-structure: the extent to which goals, procedure and guidelines need to be
spelled out to the workers
– Position power: the extent to which the leader or the group holds the power.
CULTURAL CONTINGENCIES

• The variables Fiedler describes may not be feasible because of cultural

constraints:
 Power: in large power distance cultures an ideal leader may well be
expected to display great authority, to the benefit of those being led.
 Uncertainty: in some cultures that prefer rules and avoid ambiguities the
leader may well need to give strong direction.
 Cultural profile of the leader who is making decisions as to how best to
lead.
 Leaders may be forced to alter their leadership behaviour to conform to
cultural realities faced
A TRANSFORMATIONAL RATHER THAN TRANSACTIONAL
LEADER

 The transformational leader

 Creates, communicates and embodies a vision which can influence
changes in the attitudes and assumptions of subordinates
 Builds their commitment inspires trust, confidence and loyalty.
 Bass (1985) compares this with the (traditional) transactional leader
 Has more of a ‘business-like’ relation with subordinates
 Appeals to the self-interest of all parties.
A TRANSFORMATIONAL RATHER THAN TRANSACTIONAL
LEADER (CONTINUED)

 Bass and Avolio (2002) maintain that business needs

both types of leadership: the most effective leaders
combine the two styles
 More inclusive models of leadership have come to the
fore, influenced by leadership in Eastern cultures.
LEADERSHIP IN A GLOBAL CONTEXT

Definition of a Global Leader

Dynamic, engaged and driven individuals who possess a high
degree of intellectual curiosity and service-oriented humility;
an entrepreneur in the global public interest with a profound
sense of purpose regardless of the scale and scope of the
challenge.
UNIVERSAL ATTRIBUTES AND CULTURAL VARIABLES

 The question of universal attributes of leadership is one

concern of the GLOBE research project. So far it has
identified six global leadership dimensions.
 These dimensions summarise the characteristics
perceived culturally to either further or impede effective
leadership.
LEADERSHIP: TWO POSITIVE UNIVERSAL ATTRIBUTES

 GLOBE pinpoints two dimensions of leadership considered

very effective in all societies studied:
 Team-oriented leadership: the emphasis is on building
effective teams and implementing a goal common to team
members.
 Charismatic/value-based leadership: the emphasis is on the
communication of vision, values and having confidence in
the ‘followers’.
 GLOBAL LEADERSHIP DIMENSIONS

Table 8.1
Global
leadership
dimensions
Source:
Brodbeck et
al., 2008:
1038
(adapted).
LEADERSHIP: TWO POSITIVE UNIVERSAL ATTRIBUTES
(CONTINUED)

 Brodbeck et al. (2008) propose a number of cultural dimensions which

can predict these two types of leadership:
 Team-oriented leadership:
Performance orientation
 Charismatic/value-based leadership:
In-group collectivism
Humane orientation
Uncertainty avoidance.
11 KEY CHARACTERISTICS OF A GLOBAL BUSINESS LEADER BY JAMES G.
CLAWSON (2020), LEVEL THREE LEADERSHIP: GETTING BELOW THE
SURFACE, 5TH ED.
 Overseas experience
 Deep self-awareness
 Sensitivity to cultural diversity
 Humility
 Lifelong curiosity
 Cautious honesty
 Global strategic thinking
 Patiently impatient
 Well-spoken
 Good negotiator
 Presence
TYPES OF LEADERS

 There are many types of leaders based on their personal traits or

characteristics. These traits determine whether a person can be a good leader.
 Studies shown that there are three types of leaders
 Transformational leader (refer to slide 12)
 Transactional leader (refer to slide 12)
 Charismatic leader
 Other types of leader, please refer to slide 17.
LEADERSHIP ACROSS CULTURES

United States Leadership Styles

 The US is highly individualistic and masculine-oriented country where
the culture emphasizes the active recognition of their people’s roles and
contribution
 Participative Style - American leaders use this style, especially in the
decision-making processes.
 Leaders consult their subordinates and solicit valuable suggestion
 LEADERSHIP ACROSS CULTURES

 Japanese Leadership Styles

 Known for its paternalistic approach and leader try to establish an atmosphere of
respect and obedience from their subordinate. However, leader do not impose more
rules and laws on their subordinate.
 Trust plays important role as most leaders leave their subordinates with a set of
instructions and it is up to them to carry out the work.
 Believe that the employee are so motivated by teamwork that they want to share in the
responsibility for attaining group goals.
 In term of decision making, consensus is important and Japanese workers seek
opportunities to participate in the management process
 LEADERSHIP ACROSS CULTURES

 Middle Eastern Leadership Styles

 Style of management is highly authoritarian.
 Coercion is often needed to get the workers to perform.
 Managers take a strong work-centered approach to ensure that employee
complete their task.
 Organizations are characterized by a one-way downward flow of information
and decision-making flows from the top to the bottom, known as top-down
approach. (decisions are made only at the highest level)
 LEADERSHIP ACROSS CULTURES

 Latin American Leadership Styles

 Study indicates universality among countries.
 Mexican leaders have a combination of authoritarian and participative style.
 Leaders in Chile, Argentina and Bolivia shows sign of authoritarian behaviors.
 Based on study by GLOBE project, organizations in Latin America tend to value the following:
 Flexibility to face uncertainty
 Work groups
 Good personal relations over performance
 Management with masculine characteristics
 Short-term results
 Therefore, the most accepted l/ship style is participative that allows executive to maintain personal
relationships with subordinates.