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Chapter Two
Global and Cross-Cultural
Leadership PRINCIPLES OF LEADERSHIP Andrew J. DuBrin, 7th Edition Learning Objectives
• Explain the potential ethical and competitive advantage
from leading and managing diversity. • Describe how cultural factors, including values, influence leadership practice. • Explain the contribution of cultural sensitivity and cultural intelligence to leadership effectiveness. • Explain how global leadership skills contribute to leadership effectiveness. • Pinpoint leadership initiatives to enhance the acceptance of cultural diversity. Work Force Trends • Work forces are becoming more diverse and cultures of inclusion are becoming more common.
• Globalization is compelling businesses to send more
workers to other countries.
• Leaders are traveling and working abroad in greater
numbers.
• Workers with international experience and skills are
increasingly more sought-after in the workplace. Diversity
• Human characteristics that make people
different from one another.
• Leaders should be the champions for
valuing the inclusion of these differences. Understanding the “Differences” • The sources of our individual variations are complex, but are generally grouped into two categories:
• Those over which we have little or no control
• Biologically determined – race, sex, age, certain physical attributes, the family and society we are born into
• Those over which we have some control
• Through our conscious choices and deliberate efforts • Work, background, income, marital status, military experience, political beliefs, geographic location, education Advantages of Managing Diversity • Reduction of turnover and absenteeism costs • Managing diversity well offers a marketing advantage • Companies with a favorable record in managing diversity are at a distinct advantage in recruiting and retaining talented people. • Heterogeneity in the work force may offer the company a creativity advantage, as well as improve its problem- solving and decision-making capability. • Diversity and inclusion programs help local economies thereby boosting social responsibility. Cultural Factors Influencing Leadership Practice • Multicultural leaders have skills and attitudes to relate effectively to and motivate people across race, gender, age, social attitudes, and lifestyles.
• One way to understand how national cultures differ is to examine
their values or cultural dimensions.
• The values embedded in a culture influence the behavior of leaders
and managers as well as the behavior of other workers.
• Relationships between people in a society are affected by the values
programmed in the minds of these people. Dimensions of Cultural Values European Styles of Management
• French managers – who work in a strong culture
of class - tend to behave in a superior, authoritarian, and bureaucratic manner.
• German managers tend to avoid uncertainty,
and are dispassionate, assertive, straightforward, and stern. Malaysian Managers • Culture emphasizes collectivism and is human- oriented. • Culture discourages aggressive, confrontational behavior, preferring harmonious relationships. • Managers show compassion but are more autocratic than participative. • Managers act logically, decisively, and remain resolute. • Managers adopt a more formal, diplomatic style to avoid conflict and show consideration of others. Northern US vs. Southern US Managers • Southern managers are low key and people- oriented.
• Northern managers are more brusque, efficient,
and task-oriented.
• Culturally-based differences in leadership style
are not as important as practices that work in every culture, for all businesses. Cultural Sensitivity and Cultural Intelligence • Cultural Sensitivity is an awareness of and a willingness to investigate the reasons why people of another culture act as they do.
• Cultural Intelligence is an outsider’s ability
to interpret someone’s unfamiliar and ambiguous gestures the way that person’s compatriots would. Global Leadership Skills • Refer to the ability to exercise effective leadership in a variety of countries. • The essence of global leadership is the ability to influence people who are dissimilar to the leader and stem from different cultural backgrounds. • Excellent global leaders have a leadership style that generates superior corporate performance in terms of: • Profitability and productivity • Continuity and efficiency • Commitment and morale • Adaptability and innovation Leadership Initiatives for Achieving Cultural Diversity • Hold managers accountable for achieving diversity • Establish minority recruitment, retention, and mentoring programs • Conduct diversity training • Conduct cross-cultural training • Encourage the development of employee networks • Avoid group characteristics when hiring for person- organization fit • Modify products and services for targeted demographic groups • Attain diversity among organizational leaders Summary • The modern leader must be multicultural. • Managing for diversity brings a competitive advantage to the firm. • The leader must be aware of overt and subtle cultural differences to influence, motivate, and inspire culturally diverse people. • Differences in cultural values help explain differences among people. • Cultural values influence leadership style as well as the behavior of other workers. • Cultural sensitivity is essential for inspiring people from different countries. • Global leadership skills help improve a company’s reputation and contribute to a sustainable competitive advantage. • Top management commitment to valuing diversity is clearest when valuing diversity is embedded in organizational strategy.