PM Theory

Chapter 14
Leadership and Management

Behavior in Multinational
Companies
Copyright 2004 Thomson Learning All rights reserved
Learning Objectives
Know
Know the
the characteristics
characteristics ofof global
global business
business leadership
leadership
Understand
Understand traditional
traditional North
NorthAmerican
American models
models ofof
leadership
leadership
Understand
Understand the
the Japanese
Japanese performance-maintenance
performance-maintenance
model
model ofof leadership
leadership
Be
Be able
able toto apply
apply the
the cultural-contingency
cultural-contingency model
model ofof
leadership
leadership
Copyright 2005 South-Western/Thomson Learning All rights reserved
Learning Objectives
Develop
Develop sensitivity
sensitivity toto national
national cultural
cultural differences
differences
Understand
Understand how
how national
national culture
culture affects
affects the
the choice
choice ofof
leader
leader influence
influence tactics
tactics
Understand
Understand how
how national
national culture
culture influences
influences
subordinates
subordinatesexpectations
expectations
Understand
Understand the
the role
role ofof transformational
transformational leadership
leadership inin
multinational
multinational settings
settings
Learning Objectives
Understand
Understand how
how the
the national
national culture
culture affects
affects aa leaders
leaders
attributions
attributions
Understand
Understand the
the role
role ofof women
women global
global leaders
leaders for
for
multinationals
multinationals
Develop
Develop the
the ability
ability toto diagnose
diagnose cultural
cultural situations
situations and
and
suggest
suggest appropriate
appropriate leadership
leadership style
style toto fitfit the
the situation
situation
Leadership
Leadership:
Leadership: process
process ofof influencing
influencing group
group members
members toto
achieve
achieve organizational
organizational goals
goals
Excellent
Excellent leaders
leaders
Motivate
Motivate their
their employees
employees toto achieve
achieve more
more than
than
minimal
minimal requirements
requirements
What
What makes
makes aa great
great leader?
leader?
Many
Many formal
formal theories
theories ofof leadership
leadership exist
exist
Most
Most people
people have
have their
their own
own beliefs
beliefs
Global Leadership: The New

Breed
One
One who
who has
has the
the skills
skills and
and abilities
abilities toto interact
interact with
with and
and
manage
manage people
people from
from diverse
diverse cultural
cultural backgrounds
backgrounds
Characteristics
Characteristics ofof aa global
global leader
leader
Cosmopolitan
Cosmopolitan
Skilled
Skilled atat intercultural
intercultural communication
communication
Culturally
Culturally sensitive
sensitive
Capable
Capable ofof rapid
rapid acculturation
acculturation
Global Leadership:
Characteristics
Knowledgeable
Knowledgeable about
about cultural
cultural and
and institutional
institutional
influences
influences on
on management
management
Facilitator
Facilitator ofof subordinates
subordinatesintercultural
intercultural performance
performance
AAuser
user ofof cultural
cultural synergy
synergy
AApromoter
promoter and
and user
user ofof the
the growing
growing world
world culture
culture
AAcommitment
commitment toto continuous
continuous improvement
improvement inin selfselfawareness
awareness and
and renewal
renewal
Three Classic Models:

A Vocabulary of Leadership
Three
Three basic
basic models
models ofof leadership
leadership
Leadership
Leadership traits
traits
Leadership
Leadership behavior
behavior
Contingency
Contingency leadership
leadership
Leadership Traits
Are
Are leaders
leaders born
born or
or made?
made?
Great-person
Great-person theory:
theory: idea
idea that
that leaders
leaders are
are born
born with
with
unique
unique characteristics
characteristics that
that make
make them
them quite
quite different
different
from
from ordinary
ordinary people
people
Contemporary
Contemporary views
views ofof leadership
leadership traits
traits do
do not
not assume
assume
that
that leaders
leaders are
are born
born
Traits of Successful U.S.

Leaders
Higher
Higher intelligence
intelligence and
and self-confidence
self-confidence
More
More initiative
initiative
More
More assertiveness
assertiveness and
and persistence
persistence
Greater
Greater desire
desire for
for responsibility
responsibility and
and the
the opportunity
opportunity toto
influence
influence others
others
AAgreater
greater awareness
awareness ofof the
the needs
needs ofof others
others
Leadership Behaviors
U.S.
U.S. perspectives
perspectives on
on leadership
leadership behaviors
behaviors
Two
Two major
major types
types ofof leadership
leadership behaviors
behaviors
Task-centered
Task-centered leader:
leader: focus
focus on
on completing
completing tasks
tasks by
by
initiating
initiating structure
structure
Gives
Gives subordinates
subordinates specific
specific standards,
standards,
schedules,
schedules, and
and tasks
tasks
Person-centered
Person-centered leader:
leader: focus
focus on
on meeting
meeting the
the social
social
and
and emotional
emotional needs
needs ofof employees
employees
Leader Decision Making

Styles
Autocratic
Autocratic leadership:
leadership: leaders
leaders make
make all
all major
major decisions
decisions
themselves
themselves
Democratic
Democratic leadership:
leadership: leader
leader includes
includes subordinates
subordinates inin
decision
decision making
making
Consultative
Consultative or
or participative
participative leadership:
leadership: leaders
leaders style
style
falls
falls midway
midway between
between autocratic
autocratic and
and democratic
democratic styles
styles
Exhibit 14.1: Likerts Four Styles of

Management
Japanese Perspectives on
Leader Behaviors
Performance-maintenance
Performance-maintenance (PM)
(PM) theory:
theory: balancing
balancing
tasktask- and
and person-centered
person-centered leader
leader behaviors
behaviors
Performance-Maintenance
Theory
Two
Two dimensions
dimensions ofof PM
PM theory
theory
Performance
Performance function
function (P):
(P): similar
similar toto task-centered
task-centered
leadership
leadership
Two
Two components
components ofof performance
performance function
function
Planning
Planning component:
component: the
the leader
leader works
works for
for or
or
with
with subordinates
subordinates toto develop
develop work
work procedures
procedures
Pressure
Pressure component:
component: the
the leader
leader then
then
pressures
pressures employees
employees toto put
put forth
forth more
more effort
effort
and
and toto do
do good
good work
work
Performance-Maintenance
Theory
Maintenance
Maintenance function
function (M):
(M): similar
similar toto person-centered
person-centered
Presents
Presents behaviors
behaviors that
that promote
promote group
group stability
stability and
and
social
social interaction
interaction
Difference
Difference between
between the
the Japanese
Japanese PM
PM approach
approach and
and
the
the U.S.
U.S. perspective
perspective
Japanese
Japanese PM
PM leader
leader focuses
focuses on
on influencing
influencing groups
groups
U.S.
U.S. approach
approach focuses
focuses on
on influencing
influencing individuals
individuals
Contingency Theory
Assumption
Assumption that
that different
different styles
styles and
and different
different leaders
leaders
are
are more
more appropriate
appropriate for
for different
different situations
situations
Two
Two North
NorthAmerican
American contingency
contingency theories
theories ofof
leadership
leadership
Fiedlers
Fiedlers theory
theory ofof leadership
leadership
Path-goal
Path-goal theory
theory
Fiedlers Theory of Leadership

Proposed
Proposed that
that managers
managers tend
tend toto be
be either
either tasktask- or
or
person-centered
person-centered leaders
leaders
Three
Three successful
successful contingencies
contingencies ofof the
the work
work situation
situation
Leader
Leader and
and subordinates
subordinates relationships
relationships
Clearly
Clearly defined
defined subordinates
subordinatestasks
tasks
Power
Power ofof the
the leader
leader
Fiedlers Theory of Leadership

Effective
Effective leadership
leadership occurs
occurs when
when the
the leadership
leadership styles
styles
match
match the
the situation
situation
Theory
Theory suggests
suggests that
that task-centered
task-centered leadership
leadership works
works
best
best when
when situation
situation isis favorable
favorable or
or not
not favorable
favorable for
for
leader
leader
IfIf favorable,
favorable, subordinates
subordinates are
are positive
positive about
about their
their
workneed
workneed toto be
be told
told what
what toto do
do
InIn unfavorable
unfavorable situations,
situations, job
job requirements
requirements are
are
unclear,
unclear, leader
leader need
need toto focus
focus on
on getting
getting things
things done
done
Exhibit 14.2: Predictions of Leader

Effectiveness under Different
Conditions
Path-Goal Theory
Four
Four leadership
leadership styles
styles that
that aa manager
manager might
might choose
choose
depending
depending on
on the
the situation
situation
Directive
Directive
Supportive
Supportive
Participative
Participative
Achievement-oriented
Achievement-oriented
Exhibit 14.3: A Simplified Model of

Path-Goal Theory
Path-Goal Theory: Key

Suggestions
When
When subordinates
subordinates have
have high
high achievement
achievement needs
needs
adopt
adopt the
the achievement-oriented
achievement-oriented style
style
Subordinates
Subordinates with
with high
high social
social needsadopt
needsadopt the
the
supportive
supportive leadership
leadership style
style
When
When job
job isis unstructuredadopt
unstructuredadopt aa directive
directive style
style or
or an
an
achievement-oriented
achievement-oriented style
style
Traits, Behaviors, and

Contingencies
No
No consistent
consistent leadership
leadership trait
trait or
or behavior
behavior that
that works
works
best
best
AAsuccessful
successful leader
leader must
must diagnose
diagnose the
the situation
situation and
and
pick
pick the
the behaviors
behaviors and/or
and/or develop
develop the
the leadership
leadership traits
traits
that
that fits
fits best.
best.
National Context as a
Contingency for Leadership
Behaviors
Successful
Successful leadership
leadership inin multinational
multinational companies
companies
requires
requires that
that managers
managers adjust
adjust their
their leadership
leadership styles
styles toto
fitfit different
different situations.
situations.
National Context as a
Contingency for Leadership
Behaviors
Two
Two steps
steps toto adjust
adjust aa leadership
leadership toto aa multination
multination
Step
Step 1:1: understanding
understanding what
what local
local managers
managers do
do toto
lead
lead successfully
successfully inin their
their own
own country
country
Step
Step 2:2: using
using this
this knowledge
knowledge toto modify
modify ones
ones
leadership
leadership style
style
National-context
National-context contingency
contingency model
model ofof leadership:
leadership:
shows
shows how
how culture
culture and
and related
related social
social institutions
institutions affect
affect
leadership
leadership practices
practices
Exhibit 14.5: National-Context

Contingency Model of Leadership
The National-Context
Contingency Model of
Leadership
Outlines
Outlines ofof how
how leadership
leadership behaviors,
behaviors, traits,
traits, and
and
contingencies
contingencies are
are affected
affected by
by the
the national
national context:
context:
Leader
Leader behaviors
behaviors and
and traits
traits
Subordinates
Subordinatescharacteristics
characteristics
Work
Work setting
setting
Leadership Traits and

behaviors in the National
Context
GLOBE
GLOBE (Global
(Global Leadership
Leadership and
and Organizational
Organizational
Behavior
Behavior Effectiveness)
Effectiveness)
The
The very
very latest
latest research
research on
on cross-national
cross-national
differences
differences inin leadership
leadership
Study
Study contains
contains insights
insights regarding
regarding crucial
crucial leadership
leadership
styles
styles toto navigate
navigate successfully
successfully through
through aa maze
maze ofof
cultural
cultural settings
settings
Exhibit 14.5: Culture Contingent

Leadership Traits and Behaviors
Exhibit 14.6 Culture Free Positively and

Negatively Regarded Leadership Traits
and Behaviors from 60 countries
Exhibit 14.7: GLOBEs Study Clusters

and Countries Included in Each Cluster
Exhibit 14.8: Culturally Contingent

Beliefs Regarding Effective Leadership
Styles

Styles

Styles

Styles

Styles
GLOBE findings
Leadership
Leadership styles
styles vary
vary by
by countries.
countries.
Team-oriented
Team-oriented leaders
leaders are
are preferred
preferred inin Latin
Latin European
European
and
and Southern
SouthernAsian
Asian countries.
countries.
Anglo
Anglo and
and Germanic
Germanic cultures
cultures prefer
prefer participative
participative
leaders.
leaders.
South
SouthAsian
Asian cultures
cultures prefer
prefer humane
humane leader.
leader.
All
All countries
countries agree
agree that
that autonomous
autonomous leaders
leaders and
and selfselfprotective
protective leaders
leaders universally
universally impeded
impeded leadership.
leadership.
National Context and

Preferred Leader-Influence
Tactics
Influence
Influence tactics:
tactics:tactical
tacticalbehaviors
behaviorsleaders
leaders use
usetoto
influence
influencesubordinates
subordinates
U.S
U.S managers
managers favor
favorseven
seveninfluence
influencetactics
tactics
Assertiveness
Assertiveness
Friendliness
Friendliness
Reasoning
Reasoning
Bargaining
Bargaining
Sanctioning
Sanctioning
Appeals
Appeals toto aa higher
higher authority
authority
Coalitions
Coalitions
Exhibit 14.9: Preferred Leader

Influence Tactics in Four Countries

Subordinates Expectations
Subordinates
Subordinatesexpectations:
expectations: expectations
expectations regarding
regarding
what
what leaders
leaders should
should do
do and
and what
what they
they may
may or
or may
may
not
not do
do
High
High power-distance
power-distance autocratic
autocratic leadership
leadership
E.g.,
E.g., many
many ofof the
the Latin
Latin and
andAsian
Asian countries
countries
Low
Low power-distance
power-distance leader
leader be
be more
more like
like them
them
E.g.,
E.g., Sweden
Sweden and
and Norway
Norway
Exhibit 14.10: Subordinates

Expectations under Three Levels of
Power Distance

Subordinates Expectation
Strong
Strong masculinity
masculinity norms
norms
Lead
Lead toto the
the acceptance
acceptance ofof more
more authoritarian
authoritarian
leadership
leadership
Strong
Strong uncertainty-avoidance
uncertainty-avoidance norms
norms
Subordinates
Subordinates toto expect
expect the
the leader
leader toto provide
provide more
more
detail
detail inin directions
directions
Preference for Specific Leader In

Thirteen Countries
Contemporary Leadership
Perspectives: Multinational
Implications
Two
Two basic
basic forms
forms ofof leadership
leadership
Transactional
Transactional leadership:
leadership: managers
managers use
use rewards
rewards or
or
punishments
punishments toto influence
influence their
their subordinates
subordinates
Most
Most ordinary
ordinary leaders
leaders use
use transactional
transactional leadership
leadership
Transformational Leadership
Managers
Managers go
go beyond
beyond transactional
transactional leadership
leadership by
by
Articulating
Articulating aa vision
vision
Breaking
Breaking from
from the
the status
status quo
quo
Providing
Providing goals
goals and
and aa plan
plan
Giving
Giving meaning
meaning or
or aa purpose
purpose toto goals
goals
Taking
Taking risks
risks
Being
Being motivated
motivated toto lead
lead
Building
Building aa power
power base
base
Demonstrating
Demonstrating high
high ethical
ethical and
and moral
moral standards
standards
Transformational Leaders
Succeed
Succeed because
because subordinates
subordinates respond
respond toto them
them with
with
high
high levels
levels ofof performance,
performance, devotion
devotion and
and willingness
willingness toto
sacrifice
sacrifice
Same
Same leadership
leadership traits
traits may
may not
not lead
lead toto
transformational
transformational leadership
leadership inin all
all countries
countries
Exhibit 14.11: GLOBE Study and

Charismatic Leadership
Attributions and Leadership

Emphasis
Emphasis on
on what
what leaders
leaders believe
believe causes
causes
subordinates
subordinatesbehaviors
behaviors
Two
Two key
key distinctions
distinctions inin attributions
attributions
External
External attribution:
attribution: factors
factors outside
outside the
the person
person and
and
beyond
beyond the
the persons
persons control
control (e.g.,
(e.g., natural
natural disasters,
disasters,
illness,
illness, faulty
faulty equipment,
equipment, etc.)
etc.)
Internal
Internal attribution:
attribution: characteristics
characteristics ofof the
the person
person
(e.g.,
(e.g., personality,
personality, motivation,
motivation, low
low ability,
ability, etc.)
etc.)
Attributions and Leadership

Once
Once leader
leader makes
makes attribution,
attribution, leader
leader responds
responds toto
subordinate
subordinate based
based on
on that
that assumption
assumption
Fundamental
Fundamental attribution
attribution error:
error: assumption
assumption by
by
managers
managers that
that people
people behave
behave inin certain
certain ways
ways because
because
ofof internal
internal motivations,
motivations, rather
rather than
than outside
outside factors
factors
Successful
Successful leaders
leaders make
make the
the correct
correct attributions.
attributions.
Global Women Leaders:

The Future?
Women
Women global
global leadership:
leadership: spread
spread ofof traits
traits or
or qualities
qualities
that
that are
are associated
associated with
with women
women toto the
the process
process ofof
leading
leading organizations
organizations worldwide
worldwide
orientation
orientation toward
toward more
more participative,
participative, interactional,
interactional,
and
and relational
relational styles
styles ofof leading
leading
Global Women Leaders

Women
Women leaders
leaders have
have skills
skills toto develop
develop deep
deep
relationship
relationship toto understand
understand markets
markets
More
More likely
likely toto provide
provide unity
unity toto accommodate
accommodate needs
needs ofof
various
various stakeholders
stakeholders
Better
Better ability
ability toto understand
understand diversity
diversity atat global
global levels
levels
Getting the Results: Should

You Do What Works at Home?
Cannot
Cannot assume
assume that
that successful
successful home
home leadership
leadership styles
styles
or
or traits
traits will
will result
result inin equally
equally successful
successful leadership
leadership inin aa
foreign
foreign country
country
ItIt isis nevertheless
nevertheless difficult
difficult toto adapt.
adapt.
Exhibit 14.12: Leadership Behavior and

Job Performance of U.S. Managers in
the U.S. and in Hong Kong
The Cultural Context and

Suggested Leadership Styles
High
High power
power distance
distance behave
behave more
more autocratically
autocratically
High
High uncertainty
uncertainty cultures
cultures remove
remove ambiguity
ambiguity from
from
work
work setting
setting
Exhibit 14.13: National Culture and

Recommended Leadership Styles

PM Theory

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Chapter 14

Leadership and Management

Copyright 2004 Thomson Learning All rights reserved

Copyright 2005 South-Western/Thomson Learning All rights reserved

Global Leadership: The New

Three Classic Models:

Copyright 2005 South-Western/Thomson Learning All rights reserved

Copyright 2005 South-Western/Thomson Learning All rights reserved

Traits of Successful U.S.

Copyright 2005 South-Western/Thomson Learning All rights reserved

Leader Decision Making

Copyright 2005 South-Western/Thomson Learning All rights reserved

Exhibit 14.1: Likerts Four Styles of

Copyright 2005 South-Western/Thomson Learning All rights reserved

Copyright 2005 South-Western/Thomson Learning All rights reserved

Copyright 2005 South-Western/Thomson Learning All rights reserved

Fiedlers Theory of Leadership

Copyright 2005 South-Western/Thomson Learning All rights reserved

Fiedlers Theory of Leadership

Exhibit 14.2: Predictions of Leader

Copyright 2005 South-Western/Thomson Learning All rights reserved

Copyright 2005 South-Western/Thomson Learning All rights reserved

Exhibit 14.3: A Simplified Model of

Copyright 2005 South-Western/Thomson Learning All rights reserved

Path-Goal Theory: Key

Copyright 2005 South-Western/Thomson Learning All rights reserved

Traits, Behaviors, and

Copyright 2005 South-Western/Thomson Learning All rights reserved

Copyright 2005 South-Western/Thomson Learning All rights reserved

Exhibit 14.5: National-Context

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Copyright 2005 South-Western/Thomson Learning All rights reserved

Leadership Traits and

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Exhibit 14.5: Culture Contingent

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Exhibit 14.6 Culture Free Positively and

Copyright 2005 South-Western/Thomson Learning All rights reserved

Exhibit 14.7: GLOBEs Study Clusters

Copyright 2005 South-Western/Thomson Learning All rights reserved

Exhibit 14.8: Culturally Contingent

Copyright 2005 South-Western/Thomson Learning All rights reserved

Exhibit 14.8: Culturally Contingent

Copyright 2005 South-Western/Thomson Learning All rights reserved

Exhibit 14.8: Culturally Contingent

Copyright 2005 South-Western/Thomson Learning All rights reserved

Exhibit 14.8: Culturally Contingent

Copyright 2005 South-Western/Thomson Learning All rights reserved

Exhibit 14.8: Culturally Contingent

Copyright 2005 South-Western/Thomson Learning All rights reserved

National Context and

Exhibit 14.9: Preferred Leader

Copyright 2005 South-Western/Thomson Learning All rights reserved

National Context and

Exhibit 14.10: Subordinates

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National Context and

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Preference for Specific Leader In

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Copyright 2005 South-Western/Thomson Learning All rights reserved

Copyright 2005 South-Western/Thomson Learning All rights reserved

Exhibit 14.11: GLOBE Study and