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CHAPTER 14 LEADERSHIP AND MANAGEMENT BEHAVIOR IN MULTINATIONAL COMPANIES. INTRODUCTION. 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.
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CHAPTER 14 LEADERSHIP AND MANAGEMENT BEHAVIOR IN MULTINATIONAL COMPANIES
INTRODUCTION • 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 LEADERS • Have skills and abilities to manage people from diverse backgrounds • cosmopolitan • skilled at intercultural communication • culturally sensitive
Global leaders, continued • rapid acculturators • know local cultures/social institutions • facilitate subordinates’ intercultural performance
Global leaders, continued • use cultural synergy • promote and use the growing world culture
THREE CLASSIC MODELS: A VOCABULARY OF LEADERSHIP • Leadership traits • Leader behavior • Contingency leadership models
LEADERSHIP TRAITS • Trait models of leadership: Are leaders born or made? • The great person theory
TRAITS OF SUCCESSFUL U.S. LEADERS • 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 LEADERSHIP BEHAVIORS • Two major types of leadership behaviors 1. Initiating structure: task-centered leaders • give directions, establish standards
U.S. perspectives on leadership behaviors, continued 2. Focus on social and emotional needs of employees: consideration or person- centered leaders
LEADER DECISION MAKING STYLES • Autocratic • Benevolent • Democratic • Consultative or participative leadership style
JAPANESE LEADERSHIP Performance-Maintenance (PM) Theory • Performance function (P) • similar to task-centered • The maintenance function (M) • similar to person-centered • PM leader focuses on influencing groups
WHICH STYLE OF LEADER BEHAVIOR IS BEST? • It all depends • Contemporary views: challenge the assumption that one style of leadership behavior fits all situations
CONTINGENCY THEORIES • Assumption: • different styles and different leaders are more appropriate for different situations
FIEDLER ON LEADERSHIP • Success depends on: 1. Leader/subordinates relationships 2. Subordinates' tasks 3. Power of the leader • Effectiveness = style matches situation
PATH-GOAL THEORY • Identifies four types of leadership styles • directive • supportive • participative • achievement-oriented • See Exhibit 14.3 next
PATH-GOAL THEORY FITS • Subordinates • high achievement needs = achievement-oriented ldr. • high social needs = supportive ldr. • Job unstructured = directive or achievement-oriented ldr.
Exhibit 14.5 (next) shows the national-context contingency model of leadership
NATIONAL CONTEXT AND LEADER BEHAVIORS • Regardless of cultural background, leaders use both person and task-centered behaviors • Different behaviors communicate leadership style • Different tactics preferred
LEADERSHIP TRAITS AND BEHAVIORS IN THE NATIONAL CONTEXT • Selected findings from the GLOBE study • Global Leadership and Organizational Behavior Effectiveness • see Exhibits 14.6 to 14.8
EXHIBIT 14.8Culturally-Contingent Beliefs Regarding Effective Leadership Styles Contributes to outstanding leadership
Exhibit 14.8 continued Contributes to outstanding leadership
Exhibit 14.8 continued Contributes to outstanding leadership
Exhibit 14.8 continued Contributes to outstanding leadership
Exhibit 14.8 continued Contributes to outstanding leadership
NATIONAL CONTEXT AND SUBORDINATE EXPECTATIONS • Differences in legitimate prerogatives of leadership • High power distance - autocratic leadership • Low power-distance - leader be more like them
National context and subordinate expectations, continued • Strong masculinity norms - more authoritarian leadership • Strong uncertainty avoidance norms - subordinates expect the leader to provide more direction
CONTEMPORARY LEADERSHIP PERSPECTIVES: MULTINATIONAL IMPLICATIONS
TWO BASIC FORMS OF LEADERSHIP • Transactional • Transformational
TRANSFORMATIONAL LEADERSHIP • 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 LEADERSHIP • Leaders make attributions regarding subordinates • Internal attribution - leader tends to correct or reward • External attribution, leader modifies the work environment
EXHIBIT 14.12 LEADERSHIP AND JOB PERFORMANCE OF U.S. MANAGERS IN THE U.S. AND H. K.
CONCLUSIONS • Multinational managers strive to become global leaders • A complex array of cultural, social, and institutional issues face the global leaders of today