MIM 512 Global Leadership & Ethics January 2012

1. MIM 512 Global Leadership & Ethics January 2012 Portland State University

2. Agenda • Review & Questions from last class • Guest Lecture • Lecture • Followership • Leadership & Culture • Dimensional Definitions • Javidan & Carl Article & Discussion

3. Followership • The extent to which followers identify with a leader • Followers empower, legitimize, and provide leaders the means to reach objectives • As followers we define our reality through leadership: • Business, finance, education, religion, sports, politics • Gender & culture apply to this reality • What happens if a leaders does not fit our “leadership perceptions?” • How does followership bias shape leader’s success?

4. Followership: Perceptions

5. Followership • "Aristotle believed these three characteristics to be the intelligence of the speaker (correctness of opinions, or competence), the character of the speaker (reliability - a competence factor, and honesty - a measure of intentions), and the goodwill of the speaker (favorable intentions towards the listener)."

6. The Nature of Culture • Culture • Acquired knowledge that people use to interpret experience and generate social behavior • forms values • creates attitudes • influences behavior.

7. Characteristics of Culture Learned Adaptive Shared Culture Patterned Transgenerational Symbolic

8. Culture and Leadership • Centralized vs. decentralized decision making • Safety vs. risk • Individual vs. group rewards • Informal vs. formal procedures • High vs. low organizational loyalty • Cooperation vs. competition • Short-term vs. long-term horizons • Stability vs. innovation

9. Culture & Leadership Description • Culture & Leadership –focuses on a collection of related ideas rather than a single unified theory • Globalization – • Increased after World War II • Increased interdependence between nations • Economic, social, technical, political • Has created many challenges • Need to design multinational organizations • Identify and select leaders for these organizations • Manage organizations with culturally diverse employees

10. Culture & Leadership Description • Globalization has created a need – • to understand how cultural differences affect leadership performance • for leaders to become competent in cross-cultural awareness and practice • Five cross-cultural competencies for Leaders (Adler & Bartholomew, 1992) • Understand business, political, & cultural environments worldwide • Learn the perspectives, tastes, trends & technologies of many cultures

11. Culture & Leadership Description • Five cross-cultural competencies for Leaders (Adler & Bartholomew, 1992), cont’d. • Be able to work simultaneously with people from many cultures • Be able to adapt to living & communicating in other cultures • Need to learn to relate to people from other cultures from a position of equality rather than superiority • Global leaders need to – • be skilled in creating transcultural visions • develop communication competencies to implement these visions

12. Values in Culture • Values • Basic convictions that people have • right and wrong • good and bad • important and unimportant • Learned from the culture in which the individual is reared • Influence one’s behavior • Differences in cultural values may result in varying management practices

13. What are your top 10 values? • Age/seniority • Authority • Belongingness • Collectiveness • Competition • Compromise • Cooperation • Devotion • Directness • Efficiency • Equality • Independence • Family harmony • Family security • Freedom • Go-between • Group consensus • Group harmony • Independence • Indirectness • Individualism • Hospitality • Openness • Parental guidance • Patience • Quality • Self-reliance • Time

14. Priorities of Cultural Values Priorities of Cultural Values: United States and Japan United States Japan • Freedom • Independence • Self-reliance • Equality • Individualism • Competition • Efficiency • Time • Directness • Openness • Belonging • Group harmony • Collectiveness • Age/seniority • Group consensus • Cooperation • Quality • Patience • Indirectness • Go-between Note: “1” represents the most important cultural value, “10” the least. Adapted from Table 4-1: Priorities of Cultural Values: United States, Japan, and Arab Countries

15. The American-Japanese Cultural Divide Japanese American Man within nature Man controlling nature Caution Risk-taking Incremental improvement Bold initiative Deliberation Spontaneity Adherence to form Improvisation Silence Outspokenness Memorization Critical thinking Emotional sensitivity Logical reasoning Indirectness Clarity and frankness Assuaging Confronting Avoiding Threatening Consensus building Decisiveness Patience Action

16. The American-Japanese Cultural Divide Japanese American Conformity Individuality Group convention Personal principle Trusted relationships Legal safeguards Collective strength Individual independence Maintain the group Protect the individual Modest resignation Righteous indignation Saving face Being heard Oppressive unanimity Chaotic anarchy Humble cooperation Proving oneself Harmony Freedom

17. The American-Japanese Cultural Divide Japanese American Rewarding seniority Rewarding performance Loyalty Track record Generalists Specialists Obligations Opportunities Untiring effort Fair effort Shame Guilt Dependency Autonomy Dutiful relationships Level playing field Industrial groups Industrial competition Strict ranking Ambiguous/informal ranking Racial differentiation Racial equality Gender differentiation Gender equality Equality Hierarchy

18. Values in Culture • There is a reasonably strong relationship between the level of success achieved by leaders and their personal values. • Some differences, but similar findings for four countries (U.S., Japan, Australia, India) • Could be used in selection and placement decisions. • Values of more successful leaders appear to favor • Pragmatic, dynamic, achievement-oriented • Active role in interaction with others • Values of less successful leaders tend toward • Static and passive values • Relatively passive roles in interacting with others

19. Comparing Cultures as Overlapping Normal Distribution Chinese Culture U.S. Culture ? ?

20. Stereotyping from the Cultural Extremes: Brugha and Du’s research • How Americans see the Chinese • in community • avoid confrontation • (keep in harmony) • respect for authorities • and seniors • How Chinese see Americans • individualism • face confrontation • (arguments and debates) • respect for achievements Chinese Culture U.S. Culture

21. Hofstede’s Cultural Dimensions Power Distance • Extent to which less powerful members of institutions and organizations accept that power is distributed unequally • High power distance countries: people blindly obey the orders of their superiors, centralized and tall organization structures • Low power distance countries: flatter and decentralized organization structures, smaller ratio of supervisors

22. Hofstede’s Cultural Dimensions Uncertainty Avoidance • Extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid such situations • High uncertainty avoidance countries: people have high need for security, strong belief in experts and their knowledge, structured organizational activities, more written rules, less risk taking by managers • Low uncertainty avoidance countries: people are more willing to accept risks associated with the unknown, less structured organizational activities, fewer written rules, more risk taking by managers, higher employee turnover, more ambitious employees

23. Hofstede’s Cultural Dimensions Individualism/Collectivism • Individualism: Tendency of people to look after themselves and their immediate family only • Countries high in individualism: tend to be wealthier, support protestant work ethic, greater individual initiative, promotions based on market value • Collectivism: Tendency of people to belong to groups or collectives and to look after each other in exchange for loyalty • Countries high in collectivism: tend to be poorer, less support for protestant work ethic, less individual initiative, promotions based on seniority

24. Clusters of World Cultures

25. Characteristics include - Anglo – competitive and result-oriented Confucian Asia – result-driven, encourage group working together over individual goals Eastern Europe – forceful, supportive of co-workers, treat women with equality Germanic Europe – value competition & aggressiveness and are more result-oriented Latin America – loyal & devoted to their families and similar groups Characteristics of Clusters Observations

26. Characteristics include - Latin Europe – value individual autonomy Middle East – devoted & loyal to their own people, women afforded less status Nordic Europe – high priority on long-term success, women treated with greater equality Southern Asia – strong family & deep concern for their communities Sub-Sahara Africa – concerned & sensitive to others, demonstrate strong family loyalty Characteristics of Clusters Observations

27. Examples of Cultural Dimensions * A low score is synonymous with collectivism ** A low score is synonymous with masculinity *** A low score is synonymous with a short-term orientation

28. Global leadership behaviors: Charismatic/value-based leadershipreflects the ability to inspire, to motivate, and to expect high performance from others based on strongly held core values Team-oriented leadershipemphasizes team building and a common purpose among team members. Leadership Behavior & Culture Clusters

29. Global leadership behaviors: Participative leadershipreflects the degree to which leaders involve others in making and implementing decisions. Humane-oriented leadershipemphasizes being supportive, considerate, compassionate, and generous. Leadership Behavior & Culture Clusters

30. Global leadership behaviors: Autonomous leadership refers to independent and individualistic leadership, which includes being autonomous and unique. Self-protective leadershipreflects behaviors that ensure the safety and security of the leader and the group. Leadership Behavior & Culture Clusters

31. Culture Clusters & Desired Leadership Behaviors Confucian Asia Leadership Profile • A leader who works & cares about others but uses status & position to make independent decisions without input of others

32. Culture Clusters & Desired Leadership Behaviors Southern Asia Leadership Profile • Effective leadership as especially collaborative, inspirational, sensitive to people’s needs and concerned with status & face saving

33. Culture Clusters & Desired Leadership Behaviors USA Leadership Profile • Want leaders to be exceedingly motivating & visionary, considerate of others, team-oriented & autonomous and not autocratic

34. Universally Desirable Leadership Attributes

35. Universally Undesirable Leadership Attributes

36. Javidan’s Model • Visionary – develop a new sense of direction • Innovator – risk takers who generate ideas • Mobilizer – develop a pool of intellectual energy • Auditor – High performance expectations • Ambassadors – understands intra/inter orgs • + • Socializer – inclusive of others • Consideration - listens • Self-sacrifice – viewed as participative • Analyzer – understands and listens

37. Taiwan versus Canada • Shared Charisma, ambassador, & auditor in leaders • Canadians value visionary leaders • advancement • individualistic • Taiwanese value mobilizer leaders • cooperation • belongingness • work climate