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Slide multinational management 3e cullen ch14

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’
subordinates’expectations
expectations
Understand
Understand the
the role
role ofof transformational
transformational leadership
leadership inin
multinational
multinational settings
settings
Copyright© 2005 South-Western/Thomson Learning All rights reserved


Learning Objectives
•• Understand
Understand how
how the
the national
national culture
culture affects
affects aa leader’s
leader’s
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

Copyright© 2005 South-Western/Thomson Learning All rights reserved


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
Copyright© 2005 South-Western/Thomson Learning All rights reserved


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
Copyright© 2005 South-Western/Thomson Learning All rights reserved


Global Leadership:
Characteristics
•• Knowledgeable
Knowledgeable about
about cultural
cultural and
and institutional
institutional
influences
influences on
on management
management
•• Facilitator
Facilitator ofof subordinates’
subordinates’intercultural
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
Copyright© 2005 South-Western/Thomson Learning All rights reserved


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

Copyright© 2005 South-Western/Thomson Learning All rights reserved


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

Copyright© 2005 South-Western/Thomson Learning All rights reserved


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

Copyright© 2005 South-Western/Thomson Learning All rights reserved


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
Copyright© 2005 South-Western/Thomson Learning All rights reserved


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: leader’s
leader’s style
style
falls
falls midway
midway between
between autocratic
autocratic and
and democratic
democratic styles
styles

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exhibit 14.1: Likert’s Four Styles of
Management

Copyright© 2005 South-Western/Thomson Learning All rights reserved


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

Copyright© 2005 South-Western/Thomson Learning All rights reserved


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
Copyright© 2005 South-Western/Thomson Learning All rights reserved


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
Copyright© 2005 South-Western/Thomson Learning All rights reserved


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
•• Fiedler’s
Fiedler’s theory
theory ofof leadership
leadership
•• Path-goal
Path-goal theory
theory

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Fiedler’s 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’
subordinates’tasks
tasks
•• Power
Power ofof the
the leader
leader

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Fiedler’s 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
work—need
work—need 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
Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exhibit 14.2: Predictions of Leader
Effectiveness under Different
Conditions

Copyright© 2005 South-Western/Thomson Learning All rights reserved


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

Copyright© 2005 South-Western/Thomson Learning All rights reserved


Exhibit 14.3: A Simplified Model of
Path-Goal Theory

Copyright© 2005 South-Western/Thomson Learning All rights reserved


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 needs—adopt
needs—adopt the
the
supportive
supportive leadership
leadership style
style
•• When
When job
job isis unstructured—adopt
unstructured—adopt aa directive
directive style
style or
or an
an
achievement-oriented
achievement-oriented style
style

Copyright© 2005 South-Western/Thomson Learning All rights reserved


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.

Copyright© 2005 South-Western/Thomson Learning All rights reserved


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.

Copyright© 2005 South-Western/Thomson Learning All rights reserved


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