International International ManagementManagement

By By

Prof.N.S.NilakantanProf.N.S.Nilakantan

International managementInternational management

The challenging role of international manager.The challenging role of international manager.

·· Globalization, disappearing boundaries.Globalization, disappearing boundaries.

·     Organisation culture and its implication for ·     Organisation culture and its implication for international business.international business.

·     The design of International organizations·     The design of International organizations

·     The manager as leader; the leadership role ·     The manager as leader; the leadership role across culturesacross cultures

·     Challenge of Multinational Work cultures, ·     Challenge of Multinational Work cultures, Groups & Teams.Groups & Teams.

International managementInternational management

““A definition of international management A definition of international management must include an interpretation and must include an interpretation and ‘elaboration of the key terms international ‘elaboration of the key terms international and management as well as of their and management as well as of their interaction’.” – Jean J. Boddewyninteraction’.” – Jean J. Boddewyn

The term ‘international’ means “crossing The term ‘international’ means “crossing the borders and (applies) to processes the borders and (applies) to processes intersected by national borders. intersected by national borders.

managementmanagement

Management can be defined as the Management can be defined as the process aimed at accomplishing process aimed at accomplishing organizational objectives by (1) effectively organizational objectives by (1) effectively coordinating the procurement, allocation, coordinating the procurement, allocation, and utilization of the human, financial, and utilization of the human, financial, intellectual, and physical resources of the intellectual, and physical resources of the organization and (2) maintaining the organization and (2) maintaining the organisation in a state of satisfactory , organisation in a state of satisfactory , dynamic equilibrium within the dynamic equilibrium within the environment. environment.

Role of a managerRole of a manager The above definition of management has two The above definition of management has two

basic premises.basic premises. First, management is needed to coordinate the First, management is needed to coordinate the

human, financial, intellectual, and physical human, financial, intellectual, and physical resources and to integrate them into a unified resources and to integrate them into a unified whole.whole.

Second, an organization lives in a dynamic Second, an organization lives in a dynamic environment that constantly affects its environment that constantly affects its operations. operations.

To further complicate the manager’s job, the To further complicate the manager’s job, the various environments have different dynamism. various environments have different dynamism.

Role of an international managerRole of an international manager The multinational setting is more dynamic than The multinational setting is more dynamic than

the uni-national ( domestic) setting.the uni-national ( domestic) setting. This is due partly to the different rates of speed This is due partly to the different rates of speed

at which the various environmental factors are at which the various environmental factors are changing in the different countries and in part to changing in the different countries and in part to the nature of the parameters themselves.the nature of the parameters themselves.

For example, some of the environmental factors, For example, some of the environmental factors, such as the distinct national cultures, evolve and such as the distinct national cultures, evolve and converge over time.converge over time.

Others, like the political environments, have the Others, like the political environments, have the ability to be radically changed through elections ability to be radically changed through elections and revolutions.and revolutions.

The financial environment especially when one The financial environment especially when one considers foreign exchange rates is continuously considers foreign exchange rates is continuously in a state of change. in a state of change.

Importance of cultureImportance of culture

We had earlier studied financial and We had earlier studied financial and political environments.political environments.

Now let us take a look at the cultural Now let us take a look at the cultural environment.environment.

Organizational cultureOrganizational culture

Culture as a concept is very difficult to define.Culture as a concept is very difficult to define. Hofstede’s definition is perhaps the best known:Hofstede’s definition is perhaps the best known: ‘ ‘ Culture is the collective programming of the Culture is the collective programming of the

mind which distinguishes the members of one mind which distinguishes the members of one human group from another…. Culture, in this human group from another…. Culture, in this sense, includes systems of values; and values sense, includes systems of values; and values are among the building blocks of culture’.are among the building blocks of culture’.

Culture is an obvious source of difference to the Culture is an obvious source of difference to the international manager. Some cultural differences international manager. Some cultural differences are easier to manage than others.are easier to manage than others.

Hofstede’s study of culturesHofstede’s study of cultures Hofstede used five dimensions to explain Hofstede used five dimensions to explain

differences in behaviors from one culture to differences in behaviors from one culture to another. Individualism and collectivism are another. Individualism and collectivism are social patterns that define cultural syndromes.social patterns that define cultural syndromes.

Individualism and collectivismIndividualism and collectivism Power distancePower distance Uncertainty avoidanceUncertainty avoidance Masculinity and femininityMasculinity and femininity Time orientationTime orientation

Hofstede’s Cultural Dimensions Hofstede’s Cultural Dimensions (contd.)(contd.)

IndividualismIndividualism may be defined as a social may be defined as a social pattern that consists of loosely-linked individuals pattern that consists of loosely-linked individuals who view themselves as independent of groups who view themselves as independent of groups and who are motivated by their own preferences, and who are motivated by their own preferences, needs, rights, and contracts.needs, rights, and contracts.

CollectivismCollectivism may be defined as a social pattern may be defined as a social pattern that consists of closely linked individuals who that consists of closely linked individuals who see themselves as belonging to one or more see themselves as belonging to one or more groups and who are motivated by norms, duties, groups and who are motivated by norms, duties, and obligations identified by these groups.and obligations identified by these groups.

Hofstede’s Cultural Dimensions Hofstede’s Cultural Dimensions (contd.)(contd.)

Power distancePower distance is the extent to which the less is the extent to which the less powerful members of institutions and powerful members of institutions and organizations within a country expect and accept organizations within a country expect and accept that power is distributed unequally.that power is distributed unequally.

Uncertainty avoidanceUncertainty avoidance is the extent to which is the extent to which the members of a culture feel threatened by the members of a culture feel threatened by uncertain or unknown situations or by ambiguity uncertain or unknown situations or by ambiguity in a situation.in a situation.

Hofstede’s Cultural Dimensions Hofstede’s Cultural Dimensions (contd.)(contd.)

MasculinityMasculinity pertains to societies in which social pertains to societies in which social gender roles are clearly distinct (i.e., men are gender roles are clearly distinct (i.e., men are supposed to be assertive, tough, and focused on supposed to be assertive, tough, and focused on material success whereas women are supposed material success whereas women are supposed to be more modest, tender, and concerned with to be more modest, tender, and concerned with quality of life).quality of life).

FemininityFemininity pertains to societies in which social pertains to societies in which social gender roles overlap (i.e., both men and women gender roles overlap (i.e., both men and women are supposed to be modest, tender, and are supposed to be modest, tender, and concerned with the quality of life).concerned with the quality of life).

Hofstede’s Cultural DimensionsHofstede’s Cultural Dimensions

Hofstede’s final dimension is time orientation. Hofstede’s final dimension is time orientation. Societies place different emphasis on time. In Societies place different emphasis on time. In some cultures, efficient use of time is some cultures, efficient use of time is emphasized. However, in other countries, time emphasized. However, in other countries, time is not considered to be limited and valuable, but is not considered to be limited and valuable, but is an inexhaustible resource. is an inexhaustible resource.

Cultural differencesCultural differences

A culture must have these three characteristics:A culture must have these three characteristics: It is learnedIt is learned It is interrelatedIt is interrelated It is shared.It is shared. Culture can also be thought of as having three Culture can also be thought of as having three

other levels:other levels: The visible daily behaviourThe visible daily behaviour Values and social moralsValues and social morals Basic cultural assumptionsBasic cultural assumptions

Culture is learnedCulture is learned

Culture is acquired by people over time Culture is acquired by people over time through their membership of a group that through their membership of a group that transmits culture from generation to transmits culture from generation to generation. We learn our national culture generation. We learn our national culture very intensively in the early years of life. very intensively in the early years of life.

By the age of five, a person is already an By the age of five, a person is already an expert in using his/her language.expert in using his/her language.

He/she has also internalized values He/she has also internalized values associated with various activities.associated with various activities.

Culture is interrelated and sharedCulture is interrelated and shared

One part of the culture is deeply connected with One part of the culture is deeply connected with another part such as religion and marriage, another part such as religion and marriage, business and social status.business and social status.

Tenets of a culture extend to other members of Tenets of a culture extend to other members of the group. The cultural values are passed on to the group. The cultural values are passed on to an individual by other members of the culture an individual by other members of the culture group.group.

For our purpose, we will define culture as the For our purpose, we will define culture as the learned ways in which a society understands, learned ways in which a society understands, decides, and communicates. decides, and communicates.

Analysis of cultural influencesAnalysis of cultural influences

One way to approach the analysis, is to One way to approach the analysis, is to examine cultures by means of a high examine cultures by means of a high context/low context analysis.context/low context analysis.

The use of communication techniques The use of communication techniques varies in different cultures. Hall used this varies in different cultures. Hall used this finding to make a generalized division finding to make a generalized division between what he referred to as ‘low-between what he referred to as ‘low-context cultures’ and ‘ high –context context cultures’ and ‘ high –context cultures’.cultures’.

Hall’s FrameworkHall’s Framework

ContextContext refers to cues and other information refers to cues and other information that are present in a given situation.that are present in a given situation.

In In high contexthigh context cultures information is cultures information is embedded in the social situation and is implicitly embedded in the social situation and is implicitly understood by those involved in the situation.understood by those involved in the situation.

In In low contextlow context cultures information tends to be cultures information tends to be more explicitly stated.more explicitly stated.

Analysis of cultural influencesAnalysis of cultural influences Low-context cultures rely on spoken and written Low-context cultures rely on spoken and written

language for meaning. Senders of messages language for meaning. Senders of messages encode their messages, expecting that the encode their messages, expecting that the receivers will accurately decode the words used receivers will accurately decode the words used to gain a good understanding of the intended to gain a good understanding of the intended message.message.

High-context cultures use and interpret more of High-context cultures use and interpret more of the elements surrounding the message to the elements surrounding the message to develop their understanding of the message. In develop their understanding of the message. In such cultures, the social importance and such cultures, the social importance and knowledge of the person and the social setting knowledge of the person and the social setting add extra information, and will be perceived by add extra information, and will be perceived by the message receiver.the message receiver.

The different layers of cultureThe different layers of culture

Contextual continuum of differing culturesContextual continuum of differing cultures

Analysis of cultural influencesAnalysis of cultural influences As can be seen from the figure, at one extreme we have the As can be seen from the figure, at one extreme we have the

low-context cultures of northern Europe.low-context cultures of northern Europe. At the other extreme we have the high-context cultures. At the other extreme we have the high-context cultures.

The Japanese and Arabs have a complex way of The Japanese and Arabs have a complex way of communicating with people according to their socio communicating with people according to their socio demographic background.demographic background.

In an analysis of industrial behaviour in Arab countries In an analysis of industrial behaviour in Arab countries Solberg found that building trust with partners willing to Solberg found that building trust with partners willing to endorse one’s products take more time in Arab countries endorse one’s products take more time in Arab countries than is customary in the West.than is customary in the West.

Networking –using the power of other partners – seems to Networking –using the power of other partners – seems to play a far greater role for Arab buyers.play a far greater role for Arab buyers.

In Arab countries the position of the agent and his network In Arab countries the position of the agent and his network with prominent families may be critical for success.with prominent families may be critical for success.

‘ ‘ Falling in love’ with the wrong agent may therefore spoil Falling in love’ with the wrong agent may therefore spoil the exporter’s chances of spending a long period of time in the exporter’s chances of spending a long period of time in the market.the market.

Sensuality and touch culture –example of Sensuality and touch culture –example of Drakkar NoirDrakkar Noir

Saudi Arabia is the sixth biggest fragrance market in the Saudi Arabia is the sixth biggest fragrance market in the world after the U.S., Japan, Germany, France, and Italy. world after the U.S., Japan, Germany, France, and Italy. Saudi also has the highest per capita consumption of Saudi also has the highest per capita consumption of fragrance.fragrance.

In promoting perfumes the big importers generally use the In promoting perfumes the big importers generally use the same advertising materials used by marketers in Europe. same advertising materials used by marketers in Europe. What is specifically Arabian in the campaigns is often What is specifically Arabian in the campaigns is often dictated by Arabian morals.dictated by Arabian morals.

Normally Saudi Arabia is a high-touch culture but Normally Saudi Arabia is a high-touch culture but inappropriate use of touch in advertising messages may inappropriate use of touch in advertising messages may cause problems. Drakkar Noir has two versions of cause problems. Drakkar Noir has two versions of advertisements for the men’s perfume in which Guy advertisements for the men’s perfume in which Guy Larouche ( via the advertising agency Mirabelle) tones Larouche ( via the advertising agency Mirabelle) tones down the sensuality for the Arab version.down the sensuality for the Arab version.

The European ad shows a man’s hand clutching the The European ad shows a man’s hand clutching the perfume bottle and a woman’s hand seizing his bare perfume bottle and a woman’s hand seizing his bare forearm. In the Saudi version, the man’s arm is clothed in a forearm. In the Saudi version, the man’s arm is clothed in a dark jacket sleeve and the woman is touching the man’s dark jacket sleeve and the woman is touching the man’s hand only with her fingertip.hand only with her fingertip.

European ad –leftEuropean ad –leftSaudi ad - rightSaudi ad - right

Design of international organizationDesign of international organization Finding the organizational structure best suited Finding the organizational structure best suited

to a company’s global corporate strategy is a to a company’s global corporate strategy is a challenge for the international company’s top challenge for the international company’s top management. The imperative to coordinate the management. The imperative to coordinate the functions, products, and areas has created functions, products, and areas has created problems and tensions in the international problems and tensions in the international transactions and management of international transactions and management of international companies.companies.

Companies usually modify the structures and Companies usually modify the structures and make trade-offs among the various approaches make trade-offs among the various approaches while attempting to integrate their while attempting to integrate their geographically far-flung operations.geographically far-flung operations.

Design of international organizationDesign of international organization

This has led to the exploration of multi-This has led to the exploration of multi-dimensional structures as well as ways of dimensional structures as well as ways of enhancing the traditional hierarchies.enhancing the traditional hierarchies.

The international matrix structure offers various The international matrix structure offers various advantages over the traditional structures.advantages over the traditional structures.

Another challenge facing international managers Another challenge facing international managers is that, after finding a suitable structure for a is that, after finding a suitable structure for a particular global strategy at a certain point in particular global strategy at a certain point in time they must keep modifying the structure to time they must keep modifying the structure to suit evolving company strategy.suit evolving company strategy.

Leadership definedLeadership defined Leadership has existed as a concept since the Leadership has existed as a concept since the

beginning of recorded history, but the word leadership beginning of recorded history, but the word leadership seems to be relatively new.seems to be relatively new.

Descriptions of great leaders exist in culturally diverse Descriptions of great leaders exist in culturally diverse books and manuscripts like Homer’s Iliad, the Gita, the books and manuscripts like Homer’s Iliad, the Gita, the Bible, and other religious texts.Bible, and other religious texts.

Despite 50 years of research on this topic, no Despite 50 years of research on this topic, no generally accepted definition of leadership exists.generally accepted definition of leadership exists.

generally, leadership is defined as the process of generally, leadership is defined as the process of influencing people and providing a work environment influencing people and providing a work environment so that they can accomplish their group or so that they can accomplish their group or organizational objectives.organizational objectives.

Difference of a leaderDifference of a leader

The difference between a leader and other The difference between a leader and other organizational roles is the degree of influence organizational roles is the degree of influence that leaders have over their followers.that leaders have over their followers.

Effective leaders tend to exercise both Effective leaders tend to exercise both substantial and subtle influence over their substantial and subtle influence over their followers to perform actions that go beyond followers to perform actions that go beyond simple compliance with their job descriptions.simple compliance with their job descriptions.

Although individuals may feel that they are not Although individuals may feel that they are not leaders, when they are able to get tasks leaders, when they are able to get tasks accomplished using their influence, they are accomplished using their influence, they are exercising leadership.exercising leadership.

Perspectives on leadershipPerspectives on leadership

Through research, mainly in the U.S., five Through research, mainly in the U.S., five different perspectives have been different perspectives have been identified.identified.

Trait-based perspectivesTrait-based perspectives Behavioural perspectivesBehavioural perspectives Contingency perspectivesContingency perspectives Implicit perspectivesImplicit perspectives Transformational perspectivesTransformational perspectives

Trait-based perspectivesTrait-based perspectives If you take the examples of Louis Gerstner, Lee If you take the examples of Louis Gerstner, Lee

Iacocca and other such leaders, it appears that these Iacocca and other such leaders, it appears that these individuals possess several leadership traits or individuals possess several leadership traits or competencies.competencies.

The trait-based perspective developed from the The trait-based perspective developed from the belief that certain leadership competences or traits belief that certain leadership competences or traits were natural to some and not to others.were natural to some and not to others.

Traits of self-confidence, intelligence, knowledge of Traits of self-confidence, intelligence, knowledge of the business, and emotional intelligence are all the business, and emotional intelligence are all necessary in different combinations for leadership.necessary in different combinations for leadership.

The last of these traits, emotional intelligence, has The last of these traits, emotional intelligence, has only recently been studied and is considered as only recently been studied and is considered as crucial for effectiveness.crucial for effectiveness.

Behavioural perspectivesBehavioural perspectives The behavioural perspective focuses on behaviours The behavioural perspective focuses on behaviours

that make leaders effective.that make leaders effective. Various studies have identified two clusters of Various studies have identified two clusters of

leadership .leadership . One cluster was called consideration which reflected One cluster was called consideration which reflected

people-oriented behaviours such as showing trust, people-oriented behaviours such as showing trust, respect and a concern for other’ wellbeing.respect and a concern for other’ wellbeing.

The other cluster was called initiation of structure The other cluster was called initiation of structure which focussed on behaviours that define and which focussed on behaviours that define and structure work roles.structure work roles.

In general, leaders high on both consideration and In general, leaders high on both consideration and initiation of structure tended to achieve higher initiation of structure tended to achieve higher subordinate performance.subordinate performance.

A number of cross- cultural studies have shown the A number of cross- cultural studies have shown the importance of these two dimensions.importance of these two dimensions.

Contingency perspectivesContingency perspectives The contingency perspective was developed to The contingency perspective was developed to

account for leadership effectiveness that did not account for leadership effectiveness that did not follow the predictions of behavioural theories.follow the predictions of behavioural theories.

The contingency model, developed by Fiedler, The contingency model, developed by Fiedler, presented the idea that the nature of the presented the idea that the nature of the situation moderates the relationship between the situation moderates the relationship between the leader’s style and group effectiveness.leader’s style and group effectiveness.

A leader’s style is assessed by the Least A leader’s style is assessed by the Least Preferred Co-workers (LPC) scale, and it reflects Preferred Co-workers (LPC) scale, and it reflects the leader’s ability to work with the least the leader’s ability to work with the least preferred co-workers in his or her group.preferred co-workers in his or her group.

A number of cross- cultural studies have been A number of cross- cultural studies have been conducted using this approach. conducted using this approach.

Cross –cultural studies Cross –cultural studies Filipino managers who are more task-oriented Filipino managers who are more task-oriented

were better at creating high-performing groups were better at creating high-performing groups but Chinese managers who were more but Chinese managers who were more relationship oriented were more effective in relationship oriented were more effective in achieving goals.achieving goals.

Research in Japan has not succeeded in finding Research in Japan has not succeeded in finding support for this and support in Mexico, where support for this and support in Mexico, where self-monitoring was used as another leadership self-monitoring was used as another leadership characteristic, is mixed.characteristic, is mixed.

Cultural differences may be a key situational Cultural differences may be a key situational characteristic which has many different characteristic which has many different dimensions.dimensions.

Implicit perspectivesImplicit perspectives

These theories focus on the way subordinates These theories focus on the way subordinates perceive a leader.perceive a leader.

Followers develop prototypes or mental Followers develop prototypes or mental representations of leaders through their life representations of leaders through their life experience and interactions with others.experience and interactions with others.

Specific leader behaviours do not necessarily Specific leader behaviours do not necessarily make a person a leader unless the followers make a person a leader unless the followers perceive him or her as a leader.perceive him or her as a leader.

Transformational perspectivesTransformational perspectives Transformational leadership theories focus on the process Transformational leadership theories focus on the process

of a leader using his or her charisma to inspire followers to of a leader using his or her charisma to inspire followers to go beyond their immediate self-interest for the good of the go beyond their immediate self-interest for the good of the work group and the organization.work group and the organization.

Charisma is a special quality of inter-personal influence Charisma is a special quality of inter-personal influence that some leaders possess and that enables their followers that some leaders possess and that enables their followers to develop respect and trust for the leader.to develop respect and trust for the leader.

U.S. Researchers have argued that charismatic leaders are U.S. Researchers have argued that charismatic leaders are more effective than non-charismatic leaders regardless of more effective than non-charismatic leaders regardless of national and cultural differences. This notion is supported national and cultural differences. This notion is supported across cultures. across cultures.

This perspective has the best potential for being applicable This perspective has the best potential for being applicable in different countries and cultures, but more research in different countries and cultures, but more research needs to be undertaken to fully understand how charisma needs to be undertaken to fully understand how charisma and cultural differences act together to produce effective and cultural differences act together to produce effective leaders. leaders.

Leadership across culture and bordersLeadership across culture and borders

Some functions of leadership are similar across Some functions of leadership are similar across borders and cultures.borders and cultures.

Industry leaders in Mexico, India, Italy, and France are Industry leaders in Mexico, India, Italy, and France are highly regarded for their social status and access to highly regarded for their social status and access to political power.political power.

Research on leadership from the U.S. perspective is Research on leadership from the U.S. perspective is mostly concerned with managerial behaviours and mostly concerned with managerial behaviours and tends to describe leaders as tends to describe leaders as

Autocratic versus democraticAutocratic versus democratic Participative versus directiveParticipative versus directive Task-versus relationship-orientedTask-versus relationship-oriented High on initiation of structure or consideration.High on initiation of structure or consideration.

When is leadership neededWhen is leadership needed Research on leadership clearly tells us that no style Research on leadership clearly tells us that no style

of leadership works well in all cultures and nations.of leadership works well in all cultures and nations. Concern about the significance of leadership in Concern about the significance of leadership in

managing organizations extends beyond the desire managing organizations extends beyond the desire for improved profitability and higher levels of for improved profitability and higher levels of performance in the stock market.performance in the stock market.

Leaders are not always needed to enhance Leaders are not always needed to enhance performance of work groups. performance of work groups.

In some task environments a work team may be In some task environments a work team may be entirely self-managing. In fact, attempts to change entirely self-managing. In fact, attempts to change the directions of the group can be counterproductive the directions of the group can be counterproductive in these cases.in these cases.

Let us look at some situations.Let us look at some situations.

Leader in individualistic cultureLeader in individualistic culture

A leader in an individualistic culture is best A leader in an individualistic culture is best seen as an individual who provides the seen as an individual who provides the task or relationship functions lacking in a task or relationship functions lacking in a group at a given point in time.group at a given point in time.

However many situations in high-tech and However many situations in high-tech and symbol processing organizations( such as symbol processing organizations( such as investment banks, universities, and investment banks, universities, and research laboratories) are of such a nature research laboratories) are of such a nature that leaders’ knowledge could be lower that leaders’ knowledge could be lower than the subordinates’. than the subordinates’.

Leader in collectivistic cultureLeader in collectivistic culture In contrast, it is difficult, if not impossible, to find a In contrast, it is difficult, if not impossible, to find a

well-managed team in a collectivistic culture with high well-managed team in a collectivistic culture with high power distance.power distance.

Since the principle of seniority and respect for Since the principle of seniority and respect for organizational superiors is embedded in these organizational superiors is embedded in these contexts, an effective leader is one who has all of the contexts, an effective leader is one who has all of the necessary attributes of task and group maintenance necessary attributes of task and group maintenance functions.functions.

The way group leaders and followers relate to each The way group leaders and followers relate to each other is largely determined by the patterns of other is largely determined by the patterns of communication and motivation ( including reward communication and motivation ( including reward systems), as well as organizationally specific culture systems), as well as organizationally specific culture and control systems.and control systems.

Quality circlesQuality circles A number of studies show that group decision A number of studies show that group decision

making reflected in the well-known Japanese making reflected in the well-known Japanese techniques of quality circles ( a group of workers techniques of quality circles ( a group of workers who discuss ideas about improving work who discuss ideas about improving work processes when difficulties arise) is highly processes when difficulties arise) is highly effective in East Asian cultures.effective in East Asian cultures.

Surprisingly this technique has failed miserably, Surprisingly this technique has failed miserably, not only in the U.S., but also in India, Egypt, and not only in the U.S., but also in India, Egypt, and Latin America, despite multiple attempts by Latin America, despite multiple attempts by many companies to benefit from it.many companies to benefit from it.

Quality circles are effective in Japan because of Quality circles are effective in Japan because of the low level of influence that leaders exercise in the low level of influence that leaders exercise in improving work processes.improving work processes.

GLOBE project on leadershipGLOBE project on leadership

The largest study on leadership effectiveness is The largest study on leadership effectiveness is the Global Leadership and Organizational the Global Leadership and Organizational Effectiveness (GLOBE) research program done Effectiveness (GLOBE) research program done at Wharton.at Wharton.

A global network of more than 170 A global network of more than 170 management scholars and social scientists management scholars and social scientists from 62 countries collaborated for the purpose from 62 countries collaborated for the purpose of understanding cultural influences on of understanding cultural influences on leadership in organizations, using both leadership in organizations, using both quantitative and qualitative methods to collect quantitative and qualitative methods to collect data from over 18000 managers, representing a data from over 18000 managers, representing a majority of the world’s population.majority of the world’s population.

GLOBE project on leadershipGLOBE project on leadership

The goal of the GLOBE project is to understand The goal of the GLOBE project is to understand patterns of leadership that are universally accepted patterns of leadership that are universally accepted and those that are subject to the unique influences of and those that are subject to the unique influences of the cultural contexts in which they operate.the cultural contexts in which they operate.

Findings show that specific leadership behaviour – Findings show that specific leadership behaviour – being trustworthy, encouraging, an effective being trustworthy, encouraging, an effective communicator, a good bargainer, and a team builder, communicator, a good bargainer, and a team builder, for example – are accepted everywhere.for example – are accepted everywhere.

Negative behaviours that are universal include being Negative behaviours that are universal include being uncooperative, egocentric, ruthless, and dictatorial.uncooperative, egocentric, ruthless, and dictatorial.

Behaviours that are dependent on the cultural context Behaviours that are dependent on the cultural context include group orientation, self- protectiveness, include group orientation, self- protectiveness, participative skills, humaneness, autonomy, and participative skills, humaneness, autonomy, and charisma. charisma.

SubordinateshipSubordinateship

We discussed in implicit perspectives of leadership We discussed in implicit perspectives of leadership that in order to understand the significance of that in order to understand the significance of leadership in different countries we must focus on the leadership in different countries we must focus on the perceptions and attitudes that followers have about perceptions and attitudes that followers have about their leaders.their leaders.

Subordinateship ( attitude towards leaders) is a strong Subordinateship ( attitude towards leaders) is a strong factor in determining the types of leaders that are factor in determining the types of leaders that are likely to be effective in each situation.likely to be effective in each situation.

In high power distance cultures, regardless of the In high power distance cultures, regardless of the educational level of the subordinate, the ideal boss is educational level of the subordinate, the ideal boss is a benevolent autocrat, or a good father, and less a benevolent autocrat, or a good father, and less powerful people take it for granted that they will be powerful people take it for granted that they will be dependent on the more powerful.dependent on the more powerful.

Hofstede’s findingsHofstede’s findings

In practice, Hofstede notes that less powerful In practice, Hofstede notes that less powerful people are at one extreme or the other. Those people are at one extreme or the other. Those who have strong emotional dependence on their who have strong emotional dependence on their leaders and those who do not have any leaders and those who do not have any emotional dependence on their leaders.emotional dependence on their leaders.

The next slide shows the kind of subordinate The next slide shows the kind of subordinate behaviours found in three countries behaviours found in three countries characterized in terms of three levels of power characterized in terms of three levels of power distance.distance.

Ex. 15-4: Subordinateship for Three Levels of Power DistanceEx. 15-4: Subordinateship for Three Levels of Power Distance

Small Power DistanceSmall Power Distance Medium Power Distance (U.S.)Medium Power Distance (U.S.) Large Power DistanceLarge Power Distance

Subordinates have weak Subordinates have weak dependence needsdependence needs

Subordinates have medium Subordinates have medium dependence needsdependence needs

Subordinates have strong Subordinates have strong dependence needsdependence needs

Superiors have weak Superiors have weak dependence needs toward their dependence needs toward their superiorssuperiors

Superiors have medium Superiors have medium dependence needs toward their dependence needs toward their superiorssuperiors

Superiors have strong Superiors have strong dependence needs toward their dependence needs toward their superiorssuperiors

Subordinates expect superiors Subordinates expect superiors to consult them and may rebel to consult them and may rebel or strike if superiors are not or strike if superiors are not seen as staying within their seen as staying within their legitimate role legitimate role

Subordinates expect superiors Subordinates expect superiors to consult them but will accept to consult them but will accept autocratic behavior as wellautocratic behavior as well

Subordinates expect superiors Subordinates expect superiors to act autocraticallyto act autocratically

Ideal superior to most is a loyal Ideal superior to most is a loyal democratdemocrat

Ideal superior to most is a Ideal superior to most is a resourceful democratresourceful democrat

Ideal superior to most is a Ideal superior to most is a benevolent autocrat or benevolent autocrat or paternalistpaternalist

Laws and rules apply to all, and Laws and rules apply to all, and privileges for superiors are not privileges for superiors are not considered acceptableconsidered acceptable

Laws and rules apply to all, but Laws and rules apply to all, but a certain level of privilege for a certain level of privilege for superiors is considered normalsuperiors is considered normal

Everybody expects superiors to Everybody expects superiors to enjoy privileges; laws and rules enjoy privileges; laws and rules differ for superiors and differ for superiors and subordinatessubordinates

Status symbols are frowned Status symbols are frowned upon and will easily come under upon and will easily come under attack from subordinatesattack from subordinates

Status symbols for superiors Status symbols for superiors contribute moderately to their contribute moderately to their authority and will be accepted authority and will be accepted by their subordinatesby their subordinates

Status symbols are very Status symbols are very important and contribute important and contribute strongly to the superior’s strongly to the superior’s authority with the subordinatesauthority with the subordinates

Assignment Assignment Define international management and explain Define international management and explain

the challenging role of an international the challenging role of an international manager.manager.

Describe the cultural difference as an Describe the cultural difference as an important challenge to the international important challenge to the international manager.manager.

What are the five dimensions used by What are the five dimensions used by Hofstede to explain cultural differences?Hofstede to explain cultural differences?

Explain the importance of context, as Explain the importance of context, as explained by Hall in his framework of cultural explained by Hall in his framework of cultural influences.influences.