CHAPTER 14 LEADERSHIP AND MANAGEMENT BEHAVIOR IN MULTINATIONAL COMPANIES

1. CHAPTER 14 LEADERSHIP AND MANAGEMENT BEHAVIOR IN MULTINATIONAL COMPANIES

2. 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

3. GLOBAL LEADERS • Have skills and abilities to manage people from diverse backgrounds • cosmopolitan • skilled at intercultural communication • culturally sensitive

4. Global leaders, continued • rapid acculturators • know local cultures/social institutions • facilitate subordinates’ intercultural performance

5. Global leaders, continued • use cultural synergy • promote and use the growing world culture

6. THREE CLASSIC MODELS: A VOCABULARY OF LEADERSHIP • Leadership traits • Leader behavior • Contingency leadership models

7. LEADERSHIP TRAITS • Trait models of leadership: Are leaders born or made? • The great person theory

8. 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

9. U.S. PERSPECTIVES ON LEADERSHIP BEHAVIORS • Two major types of leadership behaviors • 1. Initiating structure: task-centered leaders • give directions, establish standards

10. U.S. perspectives on leadership behaviors, continued • 2. Focus on social and emotional needs of employees: • consideration or person- centered leaders

11. LEADER DECISION MAKING STYLES • Autocratic • Benevolent • Democratic • Consultative or participative leadership style

12. 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

13. WHICH STYLE OF LEADER BEHAVIOR IS BEST? • It all depends • Contemporary views: challenge the assumption that one style of leadership behavior fits all situations

14. CONTINGENCY THEORIES • Assumption: • different styles and different leaders are more appropriate for different situations

15. FIEDLER ON LEADERSHIP • Success depends on: • 1. Leader/subordinates relationships • 2. Subordinates' tasks • 3. Power of the leader • Effectiveness = style matches situation

17. PATH-GOAL THEORY • Identifies four types of leadership styles • directive • supportive • participative • achievement-oriented • See Exhibit 14.3 next

19. PATH-GOAL THEORY FITS • Subordinates • high achievement needs = achievement-oriented ldr. • high social needs = supportive ldr. • Job unstructured = directive or achievement-oriented ldr.

20. THE NATIONAL CONTEXT CONTINGENCY MODEL

21. Exhibit 14.5 (next) shows the national-context contingency model of leadership

23. 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

24. 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

27. EXHIBIT 14.8Culturally-Contingent Beliefs Regarding Effective Leadership Styles Contributes to outstanding leadership

28. Exhibit 14.8 continued Contributes to outstanding leadership

29. Exhibit 14.8 continued Contributes to outstanding leadership

30. Exhibit 14.8 continued Contributes to outstanding leadership

31. Exhibit 14.8 continued Contributes to outstanding leadership

32. EXHIBIT 14.9 PREFERRED LEADER INFLUENCE TACTICS

33. NATIONAL CONTEXT AND SUBORDINATE EXPECTATIONS • Differences in legitimate prerogatives of leadership • High power distance - autocratic leadership • Low power-distance - leader be more like them

34. National context and subordinate expectations, continued • Strong masculinity norms - more authoritarian leadership • Strong uncertainty avoidance norms - subordinates expect the leader to provide more direction

35. EXHIBIT 14.11 PREFERENCES FOR THE “SPECIFICS” LEADER

36. CONTEMPORARY LEADERSHIP PERSPECTIVES: MULTINATIONAL IMPLICATIONS

37. TWO BASIC FORMS OF LEADERSHIP • Transactional • Transformational

38. 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

39. ATTRIBUTIONS AND LEADERSHIP • Leaders make attributions regarding subordinates • Internal attribution - leader tends to correct or reward • External attribution, leader modifies the work environment

40. THE CULTURAL CONTEXT AND SUGGESTED LEADERSHIP STYLES

41. EXHIBIT 14.12 LEADERSHIP AND JOB PERFORMANCE OF U.S. MANAGERS IN THE U.S. AND H. K.

42. NATIONAL CULTURE AND LEADERSHIP STYLE

44. CONCLUSIONS • Multinational managers strive to become global leaders • A complex array of cultural, social, and institutional issues face the global leaders of today