Leadership in a Global Environment

Prof. Dr. Yvonne Ziegler

24.07.09

Leadership in a Global Environment

Overview
Leadership

• Examples • Definition • Management vs. Leadership • Culture • Cultural dimensions • Components • Communication challenge • Expatriate success factors

International context

Cultural Intelligence

Leadership Implications

Who are leaders?

Leadership

Which leaders do you know? Who are leaders for you?

Characteristics

Leadership

What is characterizing a leader?

Definition

Leadership

Leadership is an influence relationship among leaders and followers who intend real changes and outcomes that reflect their shared purposes.

Source: Daft (2008), p.4

Management vs. Leadership
Management Leadership - Vision & strategy - Keeping an eye on the horizon - Creating shared values - Helping others grow - Reducing boundaries - Focusing on people - Based on personal power - Acting as a coach - Emotional connections - Open mind - Listening - Nonconformity - Insight into self - Creates change and a culture of integrity
Source: Daft (2008), p.15

Leadership

Direction:

- Planning & budgeting - Keeping an eye on the bottom line - Organizing & staffing - Directing & controlling - Creating boundaries - Focusing on products - Based on position power - Acting as boss - Emotional distance - Expert mind - Talking - Conformity - Insight into organization

Alignment:

Relationships:

Personal Qualities:

Outcomes: - Maintains stability - Creates culture of efficiency

Definition of culture
Internet in Leadership Germany Members of a group or a society sharing a distinct way of life with common values, attitudes and behaviors that are transmitted over time in a gradual, yet dynamic process.
Source: Harris, J.E./ Moran, R.T. (1979).

International Context

Culture

Behavior

Values

Attitudes
Source: Adler (2002) p.17.

Values - attitudes - behavior
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Values => explicit or implicit desirable to an individual or group => influences the selection from available modes, means and ends of action

International Context

=> can be both consciously and unconsciously

Attitudes => expresses values and disposes a person to act or react in a certain way to something

Behavior => any form of human action
Source: Adler ( 2002), p.18.

Linking values to behavior
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Behavior Value Sample Countries/Areas China/Thailand Australia/United States

1 2

Use of understatement Asking people to call you by your first name Taking off from work to attend the funeral of an aunt Not helping the person next to you on an exam Disagreeing openly with someone at a meeting Not laying off an older worker whose performance is weak

H Indirectness F Informality Centrality of family Self-reliance

3

B

Venezuela/Korea

International Context

4 5 6

I

Switzerland/Canada Germany/England

A Directness

E Respect for age

Japan/Pakistan

7

At a meeting agreeing with a suggestion you think is wrong

D Saving face

Asia generally

8

Inviting the teaboy to eat lunch with you in your office

J

Egalitarianism

Cambodia/Vietnam

9

Asking the headmaster's opinion about something you're an expert on

G Defence to authority

India/Brazil

10

Accepting, without question that something can't be changed

C External Control

Saudi Arabia/Turkey

Source: www.uop.edu/sis/culture.

Culture: The hidden dimension
Culture has observable aspects and suspected, imagined, or intuited.

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Holiday customs Facial expressions Paintings Food Music Eating habits Literature Concept of personal space Work ethic Gestures

International Context

Rules of social etiquete Religious beliefs

Concept of beauty

Childraising beliefs Importance of time

Values

Concept of leadership Concept of fairness

Concept of self

General world view

Nature of friendship

Source: www.uop.edu/sis/culture.

Cultural dimensions by Hofstede
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- based on the first and most detailed cross-cultural research study - national culture explained more of the differences in work-related values and attitudes than did position, profession, age or gender

International Context

1. Power distance

2. Individualism

3. Masculinity

4. Uncertainty avoidance

5. Long term orientation

Source: www.geert-hofstede.com.

Power distance
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1. Power distance = degree of equality, or inequality, between people in the country's society.

International Context

High Power Distance - Core value: respect for status - Core distinction: powerful/dependant - Key element: centralization

Low Power Distance - Core value: people‘s equality - Core distinction: whether or not responsible for a certain task - Key element: decentralization

Individualism
2. Individualism (IDV)

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= degree the society reinforces individual or collective, achievement and interpersonal relationships.

International Context

Individualism - Core value: individual freedom - Core distinction: me/others - Key element: explicit concepts are preferred in communication

Collectivism - Core value: group harmony - Core distinction: in/outgroup - Key element: relationships are more important than tasks

Power distance/ individualism
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Collectivist

International Context
• AUT •ISR AUT• ISR

•PAK •COL • VEN • TAI •PER • SIN • THA •CHL •POR • HOK •YUG •GRE • TUR •MEX • PHI • BRA • IRA •ARG •IND • JAP

•SPA • FIN •GER •NOR • SWI • IRE •SWE •IRE •DEN • •NZL CAN • • NET • •GBR • AUL USA • •SAF •FRA • ITA •BEL

Individualist Small

Large POWER DISTANCE
Source: Hofstede (1980).

Masculinity
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3. Masculinity (MAS) = degree the society reinforces, or does not reinforce, the traditional masculine work role model of male achievement, control, and power.

International Context

Masculinity - Core value: winning - Core distinction: man/woman - Key element: material success is a dominant value

Feminity: - Core value: caring for others - Core distinction: care/need care - Key element: caring for the weak & preservation is dominant

Uncertainty avoidance
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4. Uncertainty avoidance (UAI) = level of tolerance for uncertainty and ambiguity within the society i.e. unstructured situations. Uncertainty avoidance - Core value: certainty - Core distinction: true/false - Key element: what is different is dangerous Uncertainty tolerance - Core value: exploration - Core distinction: urgent or not - Key element: what is different causes curiosity

International Context

Power distance/ Uncertainty avoidance
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Low

The village market
• DEN •DEN • SIN •SWE • IRE •IRE • GBR GBR • NZL •NZL • USA USA • CAN CAN • NOR •AUL • AUL • NET •NET • FIN • SWI •GER • AUT • ISR •SAF

The traditional family

International Context

UNCERTAINTY AVOIDANCE

• HOK •IND • PHI •IRA • THA •PAK • TAI

The pyramid of people

The well-oiled machine High

BRA • ITA •COL • BRA •SPA •CHL • VEN • TUR • ARG •FRA •MEX •PER •YUG •BEL • JAP •POR •GRE

Small POWER DISTANCE

Large
Source: Hofstede (1980).

Masculinity/ Uncertainty avoidance
Low

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• SIN

•DEN • SWE • HOK •GBR •IRE

UNCERTAINTY AVOIDANCE

International Context

• IND

•USA • PHI • NOR •NET • FIN •IRA • THA • TAI • PAK • ITA • • COL VEN • MEX •ARG • BEL • JAP •JAP • GRE •CAN •NZL • SAF • AUL •AUL • SWI • GER • AUT

• CHL • YUG

• BRA • ISR • FRA • SPA • TUR • PER

High

• POR

Feminity/quality of life

Masculinity/ Career success
Source: Hofstede (1980).

Long-term orientation
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5. Long-Term Orientation (LTO) = degree the society embraces, or does not embrace, long-term devotion to traditional, forward thinking values.

International Context

Long-Term Orientation - Core value: long-term benefits - Core distinction: serve goals/not - Key element: thrift and saving are good Short-Term Orientation - Core value: saving face - Core distinction: proper or not - Key element: quick results are expected

Long-term orientation
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Country China Hong Kong LTO 118 96 87 80 75 65 56 48 44 40 33 Country Poland Germany Australia New Zealand United States Great Britain Canada Zimbabwe Philippines Nigeria Pakistan LTO 32 31 32 30 29 25 23 25 19 16 0
Source: Hofstede, (1993), p. 191.

International Context

Taiwan Japan South Korea Brazil Thailand Singapore Netherlands Bangladesh Sweden

Australia-Germany
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International Context

IDV: 90 PDI: 36 MAS: 61 UAI: 51 LTO: 32

IDV: 67 PDI: 35 MAS: 66 UAI: 65 LTO: 31

Definition
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Cultural intelligence (CQ)

International Context

= person‘s ablility to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behaviorial responses.
Source: Daft (2008), p.342

Cultural Intelligence

CQ Components
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Cognitive = observational & learnings skills Emotional

International Context

= self-confidence & self-motivation Physical = ability to shift speech patterns, expressions, and body language to be in tune with people from a different culture

Cultural Intelligence

Source: Daft (2008), p.343

Communication challenge
Fokusgruppe Internet in Leadership Allgemeiner Teil Germany
Multinational (Role sender)
Communicates role conception

PCN manager (Role recipient)

Fokusgruppe International Durchführung Context

Cultural boundary

Cultural Vor- und Intelligence Nachteile

Host-country stakeholders (Role sender)

PCN manager‘s role behavior

Source: Torbiörn (1985), p.60.

Expatriate success factors
Fokusgruppe Internet in Leadership Allgemeiner Teil Germany
Four dimensions of expatriate acculturation by Mendenhall/Oddou (1985)

1. Self orientation

Fokusgruppe International Durchführung Context

- reinforcement substitution, - stress reduction and - competence

Cultural Vor- und Intelligence Nachteile

2. External orientation - ability to form relationships - willingness/ability to communicate 3. Perceptive faculty 4. Cultural adaptability
Source: Mendenhall/Oddou (1985), p. 39-47.

Expatriate success factors
Fokusgruppe Internet in Leadership Allgemeiner Teil Germany
Four dimensions of expatriate acculturation by Mendenhall/Oddou (1985)

1. Self orientation

Fokusgruppe International Durchführung Context

- reinforcement substitution, - stress reduction and - competence

Cultural Vor- und Intelligence Nachteile

2. External orientation - ability to form relationships - willingness/ability to communicate 3. Perceptive faculty 4. Cultural adaptability
Source: Mendenhall/Oddou (1985), p. 39-47.

Effective leadership within a global context
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Executives in different counties might differ significantly in some areas => leadership problems

International Context

Culture effects both leadership style and leadership situation

For effective leadership => Leaders should be aware of cultural

Cultural Intelligence

and subcultural differences
Source: Daft (2008), p.343

Leadership Implications

Stages of personal diversity awareness
Higest Level of Awareness

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Integration

Adaptation

International Context
Acceptance

Cultural Intelligence

Minimizing Differences

Defense

Leadership Implications

Lowest Level of Awareness

Source: Bennet (1986), p.179-196

How to learn?
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As a leader, you can develop cultural intelligence!

International Context

You can study other languages and cultures and form relationships with people from different countries. You can learn to be sensitive to differences in social value systems, and find creative ways to address delicate cultural issues.
Source: Daft (2008), p.343

Cultural Intelligence

Leadership Implications

Thank you!
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International Context

Cultural Intelligence

Leadership Implications

Literature
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• • Adler, N.J. (2002): International dimensions of organizational behavior, South-Western Bennet, M. (1986): A developmental approach to training for intercultural sensitivity. International Journal of Intercultural Relations 10 • • Daft, R. L. (2008): The leadership experience. Thomson South Western Hofstede, G. (1980): Motivation, Leadership, and Organization: Do American Theories Apply Abroad? In: Organizational Dynamics. • • Mendenhall, M., Oddou, G. (1985): The dimensions of expatriates acculturation - A review in: Academy of Management Review, 10 Torbiörn, I. (1985): The structure of managerial roles in crosscultural settings, International Studies of Management & Organization, vol. 15, no.1

International Context

Cultural Intelligence

Leadership Implications