15LeadershipandManagementBehaviorinMultinationalCompaniesLearningObjectives(1of3)Knowthecharacteristicsofglobalbusinessleadership.DescribetraditionalNorthAmericanmodelsofleadership,includingtraittheory,behavioralapproaches,andcontingencytheory.ExplaintheJapaneseperformance-maintenancemodel.Applythecultural-contingencymodelofleadershipLearningObjectives(2of3)Developsensitivitytonationalculturaldifferencesinpreferredleadershiptraitsandeffectiveleadershipbehaviors.Discusshownationalcultureaffectsthechoiceofleaderinfluencetactics.Discusshownationalcultureinfluencessubordinates’expectationsregardingappropriatebehaviorsandthetraitsofleaders.LearningObjectives(3of3)Explaintheroleoftransformationalleadershipinmultinationalsettings.Understandhownationalcultureaffectsaleader’sattributionsregardingsubordinates’behaviors.Diagnoseculturalsituationsandsuggestappropriateleadershipstylestofitthem.LeadershipTheGLOBE’suniversaldefinitionofLeadership:“theabilityofanindividualtoinfluence,motivate,andenableotherstocontributetowardtheeffectivenessandsuccessoftheorganizationsofwhichtheyaremembers.”Effectivemultinationalleadershipismorechallengingthanbeingagooddomesticleader.Widelydifferentleadershipstylesmaybeequallyeffectiveinreachinggoalsinvariouscultures.GlobalLeadership:

TheNewBreedTheGlobalLeadermusthavetheskillsandabilitiestointeractwithandmanagepeoplefromdiverseculturalbackgroundsintheirmultinationalorganization.Characteristicsofagloballeader:CosmopolitanSkilledatinterculturalcommunicationCulturallysensitiveCapableofrapidacculturationGlobalLeadership:CharacteristicsCharacteristicsofagloballeader:(cont’d)Afacilitatorofsubordinates’interculturalperformanceAuserofculturalsynergyApromoteranduserofthegrowingworldcultureEmotionallyintelligentThreeClassicModels:

AVocabularyofLeadershipThethreebasicmodelsofleadershipentail:LeadershiptraitsLeadershipbehaviorContingencyleadershipLeadershipTraits(1of2)Areleadersbornormade?TheGreat-PersonTheoryistheideathatleadersarebornwithuniquecharacteristicsthatmakethemquitedifferentfromordinarypeople.Contemporaryviewsofleadershiptraitsdonotassumethatleadersareborn.Althoughleadersaredifferent,aspiringleaderscanachievethisdifferencebytrainingandexperience.LeadershipTraits(2of2)IntheU.S.,successfulleadersexhibit:Highintelligence&self-confidenceGreatinitiativeAssertiveness&persistenceAgreatdesireforresponsibilityandtheopportunitytoinfluenceothersAhighawarenessoftheneedsofothersU.S.Perspectives:

LeadershipBehaviors(1of2)Althoughleadershavedifferenttraitsthansubordinates,traitsalonedonotmakealeader.Thebehaviorsleadersusetomanageemployeesmaybemoreimportant.ClassicU.S.studiesofleadershiprevealtwotypes:Atask-centeredleadergivesspecificdirectionstosubordinatessothattheycancompletetasks.Aperson-centeredleaderfocusesonmeetingthesocialandemotionalneedsofemployees.U.S.Perspectives:

LeadershipBehaviors(2of2)Thedistinctionbetweentask-centeredandperson-centeredalsoappliestohowleadersmakedecisions:Leaderswhoadoptanautocraticleadershipstylemakeallmajordecisionsthemselves.Thosewhoemployademocraticleadershipstyledelegatethedecision-makingtosubordinates.Theconsultativeandparticipativeleadershipstylesfallsmidwaybetweentheautocraticanddemocraticstyles.Exhibit15.1:

Likert’sFourStylesofManagementJapanesePerspectives:

PerformanceMaintenanceTheory(1of2)ThePerformance-Maintenance(PM)TheoryofleadershiprepresentsaJapaneseperspective,balancingtask-andperson-centeredleaderbehaviorsHastwodimensionsPerformance(similartotask-centered)Maintenance(similartoperson-centered)JapanesePerspectives:

PerformanceMaintenanceTheory(1of2)Therearetwocomponentsofperformancefunction:Planningcomponent:theleaderworksfororwithsubordinatestodevelopworkproceduresPressurecomponent:theleaderthenpressuresemployeestoputforthmoreeffortandtodogoodworkContingencyTheoriesTheContingencyTheoriesassumethattheappropriatestyleandleaderdependsonthesituation.Successfulleaderschooseleadershipstylebasedonsituations.TherearetwoNorthAmericancontingencytheoriesofleadership:Fiedler’stheoryofleadershipPath-goaltheoryFiedler’sTheoryofLeadership(1of2)Fiedler’sTheoryofLeadershipholdsthatmanagerstendtobeeithertask-orperson-centeredleaders.Successdependsonthreecontingenciesorcharacteristicsofworksituation:TherelationshipbetweenleaderandsubordinatesThedegreetowhichsubordinates’tasksareclearlydefinedTheofficiallygrantedpoweroftheleaderFiedler’sTheoryofLeadership(2of2)Effectiveleadershipoccurswhentheleadershipstylematchsthesituation.Fiedler’sTheorysuggeststhattask-centeredleadershipworksbestinsituationsthatareeitherfavorableorunfavorableforaleader.Person-centeredleadershipworksbestinsituationsthatarenotclearlyfavorableorunfaborable.Exhibit15.2:

PredictionsofLeaderEffectivenessunderDifferentConditionsPath-GoalTheoryUsingPath-GoalTheory,aleadermightadoptoneoffourleadershipstyles,dependingonthesituation.Thesefourstylesare:Directive(givesubordinatesspecificgoals)Supportive(showconcernfortheirneeds)Participative(consultwiththemandencourage)Achievement-oriented(setgoalsandrewardgoalaccomplishments)Exhibit15.3:

ASimplifiedModelofPath-GoalTheoryPath-GoalTheory:

KeySuggestionsWhensubordinateshavehighachievementneeds,adopttheachievement-orientedstyle.Forsubordinateswithhighsocialneeds,adoptthesupportiveleadershipstyle.Whenthejobisunstructured,adoptadirectivestyleoranachievement-orientedstyle.

Traits,Behaviors&Contingencies

Leadershaveavarietyofbehaviorstheycanusetogetthejobdone.Mostexpertsnowbelievethatnooneleadershiptraitorbehaviorworksbestinallsituations.Asuccessfulleadermustdiagnosethesituation,pickthebehaviorsanddeveloptheleadershiptraitsthatfitbest.NationalContextContingencyModelofLeadership(1of2)Successfulleadershipinmultinationalcompaniesrequiresthatmanagersadjusttheirleadershipstylestofitdifferentsituations.Learnwhatlocalmanagersdotoleadsuccessfullyintheirowncountries.Usethatknowledgetomodifyyourleadershipstyleappropriately.NationalContextContingencyModelofLeadership(2of2)Inamultinationalsetting,thesecomponentsareallaffectedbythenationalcontext:Leaderbehaviors&traitsSubordinatescharacteristicsWorksettingExhibit15.4:

National-ContextContingencyModel

ofLeadershipLeadershipTraitsandBehaviorsintheNationalContextPeopleprefercertaintraitsandbehaviorsintheirleadersdependingontheirculturalbackgrounds,thoughsomebehaviors&traitsareculturaluniversals.GLOBE(GlobalLeadershipandOrganizationalBehaviorEffectiveness)conductedcross-nationalresearch

of60nationsondifferencesinleadership.Theirstudycontainsinsightsthatcanhelpamanagerdevelopleadershipstylestonavigatesuccessfullythroughamazeofculturalsettings.Exhibit15.5

Culture-FreePositivelyandNegativelyRegardedLeadershipTraits&BehaviorsExhibit15.6:

GLOBE’sStudyClustersand

CountriesIncludedinEachClusterExhibit15.7:

CulturallyContingentBeliefsRegardingEffectiveLeadershipStylesExhibit15.7:(cont’d)

CulturallyContingentBeliefsRegardingEffectiveLeadershipStylesGLOBEFindingsLeadershipstylesvarybycountry.Team-orientedleaderspreferredinLatinEuropean,EastEuropeanandSouthernAsiansocieties.ParticipativeleadersarepreferredbyAnglo,NordicEuropean,andGermanicEuropeancultures.HumaneleaderspreferredinSouthernAsiancultures.Allagreedthatautonomousleadersandself-protectiveleadersuniversallyimpededleadership.NationalContextandPreferredLeaderInfluenceTacticsInfluenceTacticsaretacticalbehaviorsleadersusetoinfluencesubordinates.U.SmanagersfavorseveninfluencetacticsAssertivenessFriendlinessReasoningBargainingSanctioningAppealstoahigherauthorityCoalitionsExhibit15.8:

PreferredLeaderInfluenceTactics

inFourCountriesNationalContextandSubordinates’Expectations(1of2)ThenationalcontextaffectsSubordinates’Expectations:whatleaders“should”doandwhattheymayormaynotdo.Powerdistancehasprofoundeffectsonexpectations:Inhighpower-distancecountries,autocraticleadershipisexpected.Inlowpower-distancecountries,theleadershouldforegostatussymbols,&involvesubordinatesindecision-making.Exhibit15.9:

Subordinates’Expectations

underThreeLevelsofPowerDistance

NationalContextandSubordinates’Expectations(2of2)Otherculturalvaluesaffectsubordinates’expectations:StrongmasculinitynormsleadtotheacceptanceofmoreauthoritarianleadershipStronguncertainty-avoidancenormsleadsubordinatestoexpecttheleadertoprovidemoredetailindirectionsContemporaryLeadershipPerspectives:

MultinationalImplicationsTherearetwocontemporaryapproachestoleadership:TransformationalLeadershipAttributionApproachTheGLOBEstudyfoundthatTransformationalLeadershipwasconsideredsuperiorinalmostallsocieties.TransformationalLeaders(1of2)TheTransformationalLeader:ArticulatesavisionBreaksfromthestatusquoProvidesgoalsandaplanGivesmeaningorapurposetogoalsTakesrisksIsmotivatedtoleadBuildsapowerbaseDemonstrateshighethicalandmoralstandardsTransformationalLeaders(2of2)Transformationalleaderssucceedbecausesubordinatesrespondtothemwithhighlevelsofperformance,personaldevotion,reverence,excitementaboutleader’sideas,andwillingnesstosacrificeforthegoodofthecompanyTransformationalLeadersgobeyondTransactionalLeadership

whichusespunishmentandrewards.Thesameleadershiptraitsmaynotleadtotransformationalleadershipinallcountries.AttributionsandLeadership(1of2)Theattributionalapproachtoleadershipemphasizestheleader’sattributionsregardingthecausesofsubordinates’behaviors.Indetermininghowtorespondtoasubordinate’sbehavior,theleadermakestwokeydistinctions:Externalattribution:factorsoutsidethepersonandbeyondtheperson’scontrol(illness);orInternalattribution:characteristicsoftheperson(e.g.,personality,motivation,lowability,etc.)AttributionsandLeadership(2of2)Onceleadermakesanattribution,theleaderrespondstothesubordinatebasedonthatassumption.Internalattribution:behaviorcorrectedorrewardedExternalattribution:modifytheworkenvironmentFundamentalattributionerror:anassumptionbyamanagerthatpeoplebehaveincertainwaysbecauseofinternalmotivations,ratherthanoutsidefactorsSuccessfulleadersmakethecorrectattributions.GettingtheResults:ShouldYouDoWhatWorksatHome?Thecontingencyviewofleadershipsuggeststhatmanagerscannotassumethatsuccessfulhomeleadershipstylesor