GSBS6009 Cross Cultural Management

1. GSBS6009 Cross Cultural Management Lecture 7 Culture and Leadership Lecturer: Asif Iqbal Course Coordinator: Dr. Karen Tian

2. Learning Objectives • Understand the basic philosophic foundation and styles of managerial leadership • Compare and contrast leadership styles between West and East, particularly those Western ideas influenced by Asian concepts of leadership • Understand that that some attributes of leadership are shared across all cultures, even though these are perceived differently in different cultures

3. Leadership • Leaders • People who can influence the behaviors of others without having to rely on force • People who are accepted as leaders by others • What leaders actually do • Using non-coercive influence to shape the group’s or organization’s goals • Motivating others’ behavior toward goals • Helping to define organizational culture

4. 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 organization • 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 organization, the leader as one who ensures the success of the organization

5. “Hold on ! You can’t all have the front seat!” The Simple Truth Most corporations today are over managed and underled. This leads to enormous wastage of resources, deep inefficiencies, and unlimited frustration. The challenge for corporations, communities, and countries is to prevent this from happening.

6. Long Term Thinking Leadership is about maximizing your followers’ well-being, not their comfort. Chris Argyris

7. Leadership

8. Leadership • Power and Leadership • Legitimate power is granted through the organizational hierarchy • Reward power is the power to give or withhold rewards • Coercive power is the capability to force compliance by means of psychological, emotional, or physical threat • Referent power is the personal power that accrues to someone based on identification, imitation, loyalty, or charisma • Expert power is derived from the possession of information or expertise

9. Leadership • Using Power • Legitimate request • Compliance by a subordinate with a manager’s request because the organization has given the manager the right to make the request • Instrumental compliance • A subordinate complies with a manager’s request to get the rewards that the manager controls • Coercion • Threatening to fire, punish, or reprimand subordinates if they do not do something • Rational persuasion • Convincing subordinates that compliance is in their own best interest

10. Leadership • Using Power (cont’d) • Personal identification • Using the referent power of a superior’s desired behaviors to shape the behavior of a subordinate • Inspirational appeal • Influencing a subordinate’s behavior through an appeal to a set of higher ideals or values (e.g., loyalty) • Information distortion • Withholding or distorting information (which may create an unethical situation) to influence subordinates’ behavior

11. Exerting Strategic Leadership • Stay on top of how well things are going • Stay current with internal and external information, reports, etc. • Communicate regularly with colleagues, subordinates and customers • Keep abreast of rivals’ initiatives • MBWA

12. Exerting Strategic Leadership • Establish a strategy-supportive culture • Stakeholders are king • Challenge the status quo • Management must listen to customers • Sell the strategic initiatives to groups and individuals throughout the organization • Recognize and reward those who lead the change

13. Exerting Strategic Leadership • Keep the organization responsive and innovative • Empower “champions” • Encourage creativity and innovation • Allow champions to fail • Offer organizational support • Make rewards large and visible • Lead the process to develop new capabilities

14. Exerting Strategic Leadership • Exercise ethics leadership • Lead by example • Have written policies and guidelines • Enforce compliance • Encourage whistleblowers • Promote good corporate citizenship • Make corrective adjustments as needed

15. The leader and corporate culture (1) 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

16. The leader and corporate culture (2) • The routines/habits established by a leader may be difficult to break if there is need for change in response to a dynamic environment • The managers may not recognize the need for change and blame the environment for the change in fortunes • The leader must re-assert his position, instigate changes to revitalize the company or hand over the reins to a successor

17. Theories evolving around the leader (1) Scientific leadership • Standard methods for doing a job – the worker is not required to think, only the leader • Bureaucratic organizations the result: carefully designed hierarchy of authority, with clearly defined responsibilities • Functions specialized, information and control centralized • Uniform application of standard rules and procedures

18. Theories evolving around the leader (2) 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

19. Theories evolving around the leader (3) 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 organization’s employees

20. Task orientation versus relationship orientation (1) Theories X and Y (McGregor) A leader needs: • to remain task-oriented to ensure effective performanceof the organization • 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 Ymanager wants employees to participate in decision-making and problem-solving, use their creativity to solve problems and further the organization’s success

21. Task orientation versus relationship orientation (2) The contingency theory • Leadership effectiveness is the result of interaction between the style of the leader and the characteristics of the working environment. This environment is characterized by three factors: • 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

22. Task orientation versus relationship orientation (3) The Z theory focuses on the attitudes and responsibilities of subordinates (Ouchi) • Reflects basic concept found in Japan that all employees share a collective responsibility for their company’s fate • Individuals are encouraged to develop their potential within the company: are expected to function (with training) in different positions • The theory has had an enormous impact on views of management in the US

23. The new leadership (1) • 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

24. The new leadership (2) • 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 • E.g. Minzberg’s ‘Quiet Management’ (quieter, less dramatic leadership at all levels). This reflects ideas of Lao Tzu, 6th century Chinese philosopher (‘A leader is best when people barely know he exists’).

25. The leader’s role in a ‘learning organization’ • In ‘learning organizations’, according to Senge (1990) • people expand their capacity to create the results they truly desire • new and expansive patterns of thinking are nurtured • collective aspiration is set free, people are continually learning to see the whole together • Leaders of learning organizations are essentially responsible for learning in the organization: • they design the learning processes • create, foster and manage a shared vision • help people to understand what brings about change

26. Leadership in an international context • The extent to which aspects of culture can influence ‘Western’ ideas of leadership • The question of whether there are attributes of leadership common to all cultures

27. Leadership in an international context: contingencies (1) Cultural contingency factors • Fiedler argues that effective leadership is the result of interaction between the style of the leader and the characteristics of the environment. However, the variables he describes may not be feasible because of cultural constraints • Leaders may be forced to alter their leadership behaviour to conform to the cultural realities they face

28. Leadership in an international context: contingencies Leadership in an international context: contingencies(2) Cultural contingency factors (continued) Cultural realities – examples: • 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.

29. 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 summarize the characteristics perceived culturally to either further or impede effective leadership.

30. *Global leadership dimensions Table 8.2 Global leadership dimensions Source: Brodbeck et al. (2008): 1038 (adapted)

31. Leadership: two positive universal attributes (1) • 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’.

32. Leadership: two positive universal attributes (2) • 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

33. Non-universal leadership attributes • Other leadership dimensions are far from being universal. Key differences based on differing cultural practices and values: • Participative leadership found in all cultures studied, but different types or ‘species’ • Humane oriented leadership: impact varies from positive to neutral • Autonomous leadership: findings show the greatest variation of the six dimensions • Self-protective leadership: much variation, but not as extreme as autonomous leadership

34. Universality of transformational leadership • Transformational leadership may be universal • But the way transformational attributes are expressed may differ between cultures • For example, ‘Integrity’ is one attribute universally considered to be desirable – but how do people in different cultures conceptualize, perceive and exhibit behaviour that reflects integrity?

35. Gender Are some universal attributes of leadership more prevalent among male or female leaders? • Gender stereotypes may hamper developing an appropriate effective style of leadership. • Overcoming these stereotypes, while focusing on the characteristics appropriate to the position, is the key task of any candidate for leadership, whether male or female. • Male and female leaders, it appears, display differing behavioural tendencies whatever their country of origin. • Although leadership style may be based on gender, differences in the leadership style employed are based more on culture than on gender.

36. YOU! Leadership is about Leadership is not something that you do. It is an expression of who you are. - Kevin Cashman

37. “We are not certain you have a mandate anymore.”

38. Learning Activity • The Leadership of Steve Jobs • Watch video and discuss with your group: • Is the former CEO of Apple Mr. Steve Jobs a transformational leader or transactional leader? • Refer to Table 8.2 Global leadership dimensions(textbook p.184). If you were CEO of Apple, which type of leadership styles and management styles would you think are most suitable for the company?

39. Conclusion • There are consistent elements of leadership that are recognized across cultures but whose form may vary between cultures. • Some modern concepts of leadership generated in the West appear to have their antecedents in the East. • Different cultures can generate similar perceptions of leadership, even if the contexts within which leadership is affected are very different.

40. Assignment 2-Group Business Report • Group project • 30%, Due on Monday week 10, 2nd April 2012. • 1500 to 2000 words • Correct referencing according to NGSB Student Manual must be used, APA 6th. • Self and Peer evaluation (SPARK system)

41. The Structure of a Report • Executive summary • Table of contents • Main text • The introduction • The body • The conclusion • Recommendations • References

42. Objectives of this Assignment • are to assess students ability to Interact with team members within a problem-based learning structure to effectively coordinate and communicate project; • to incorporate theories, concepts and models relevant to the cross cultural issues.

43. Specific Task • Students should work in a group while analyzing critical cross-cultural issues related to setting up a subsidiary in a developing host country (e.g. China, Vietnam, or Thailand). Playing the role of a management team from a developed country (e.g. Australia), students should compare and contrast home country leadership and management styles against those of the host environment and evaluate and report on what adaptations need to be made for effective cross-cultural interactions in the host context. • There is a very detail instruction on assignment area Blackboard

44. Detailed Instructions: 1 • Firstly, students should give a brief introduction on the company and subsidiary. Eg. Country that home and host country located, size of company and number of employees, organizational structure, culture, product and services, etc. The introduction should not be more than 10% of total assignment (150-200 words).

45. Detailed Instructions: 2 • Secondly, Students should compare and contrast the existing home country and host country’s leadership and management styles consistently. • Students should use relevant data and apply the relevant leadership styles and management styles ( eg. Global leadership dimensions theories, Table 8.2 on textbook p. 184.)

46. Detailed Instructions: 3 • Finally, students should use the relevant data to evaluate and provide recommendations on which aspects of the leadership and management style need to be adapted for the host country.

47. Marking Criteria • Available on assessment area Blackboard • Comparative analysis of data in the context of the assessment task – i.e. should compare and contrast home and host country leadership and management styles • Level of Research adequate to make well-informed decisions and recommendations • Communication of report is presented in a logical and well organised manner as per the assessment task. • Writing General – language and grammar and referencing.