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15LeadershipandManagementBehaviorinMultinationalCompaniesLearningObjectives(1of3)Knowthecharacteristicsofglobalbusinessleadership.DescribetraditionalNorthAmericanmodelsofleadership,includingtraittheory,behavioralapproaches,andcontingencytheory.ExplaintheJapaneseperformance-maintenancemodel.Applythecultural-contingencymodelofleadershipLearningObjectives(2of3)Developsensitivitytonationalculturaldifferencesinpreferredleadershiptraitsandeffectiveleadershipbehaviors.Discusshownationalcultureaffectsthechoiceofleaderinfluencetactics.Discusshownationalcultureinfluencessubordinates’expectationsregardingappropriatebehaviorsandthetraitsofleaders.LearningObjectives(3of3)Explaintheroleoftransformationalleadershipinmultinationalsettings.Understandhownationalcultureaffectsaleader’sattributionsregardingsubordinates’behaviors.Diagnoseculturalsituationsandsuggestappropriateleadershipstylestofitthem.LeadershipTheGLOBE’suniversaldefinitionofLeadership:“theabilityofanindividualtoinfluence,motivate,andenableotherstocontributetowardtheeffectivenessandsuccessoftheorganizationsofwhichtheyaremembers.”Effectivemultinationalleadershipismorechallengingthanbeingagooddomesticleader.Widelydifferentleadershipstylesmaybeequallyeffectiveinreachinggoalsinvariouscultures.GlobalLeadership:
TheNewBreedTheGlobalLeadermusthavetheskillsandabilitiestointeractwithandmanagepeoplefromdiverseculturalbackgroundsintheirmultinationalorganization.Characteristicsofagloballeader:CosmopolitanSkilledatinterculturalcommunicationCulturallysensitiveCapableofrapidacculturationGlobalLeadership:CharacteristicsCharacteristicsofagloballeader:(cont’d)Afacilitatorofsubordinates’interculturalperformanceAuserofculturalsynergyApromoteranduserofthegrowingworldcultureEmotionallyintelligentThreeClassicModels:
AVocabularyofLeadershipThethreebasicmodelsofleadershipentail:LeadershiptraitsLeadershipbehaviorContingencyleadershipLeadershipTraits(1of2)Areleadersbornormade?TheGreat-PersonTheoryistheideathatleadersarebornwithuniquecharacteristicsthatmakethemquitedifferentfromordinarypeople.Contemporaryviewsofleadershiptraitsdonotassumethatleadersareborn.Althoughleadersaredifferent,aspiringleaderscanachievethisdifferencebytrainingandexperience.LeadershipTraits(2of2)IntheU.S.,successfulleadersexhibit:Highintelligence&self-confidenceGreatinitiativeAssertiveness&persistenceAgreatdesireforresponsibilityandtheopportunitytoinfluenceothersAhighawarenessoftheneedsofothersU.S.Perspectives:
LeadershipBehaviors(1of2)Althoughleadershavedifferenttraitsthansubordinates,traitsalonedonotmakealeader.Thebehaviorsleadersusetomanageemployeesmaybemoreimportant.ClassicU.S.studiesofleadershiprevealtwotypes:Atask-centeredleadergivesspecificdirectionstosubordinatessothattheycancompletetasks.Aperson-centeredleaderfocusesonmeetingthesocialandemotionalneedsofemployees.U.S.Perspectives:
LeadershipBehaviors(2of2)Thedistinctionbetweentask-centeredandperson-centeredalsoappliestohowleadersmakedecisions:Leaderswhoadoptanautocraticleadershipstylemakeallmajordecisionsthemselves.Thosewhoemployademocraticleadershipstyledelegatethedecision-makingtosubordinates.Theconsultativeandparticipativeleadershipstylesfallsmidwaybetweentheautocraticanddemocraticstyles.Exhibit15.1:
Likert’sFourStylesofManagementJapanesePerspectives:
PerformanceMaintenanceTheory(1of2)ThePerformance-Maintenance(PM)TheoryofleadershiprepresentsaJapaneseperspective,balancingtask-andperson-centeredleaderbehaviorsHastwodimensionsPerformance(similartotask-centered)Maintenance(similartoperson-centered)JapanesePerspectives:
PerformanceMaintenanceTheory(1of2)Therearetwocomponentsofperformancefunction:Planningcomponent:theleaderworksfororwithsubordinatestodevelopworkproceduresPressurecomponent:theleaderthenpressuresemployeestoputforthmoreeffortandtodogoodworkContingencyTheoriesTheContingencyTheoriesassumethattheappropriatestyleandleaderdependsonthesituation.Successfulleaderschooseleadershipstylebasedonsituations.TherearetwoNorthAmericancontingencytheoriesofleadership:Fiedler’stheoryofleadershipPath-goaltheoryFiedler’sTheoryofLeadership(1of2)Fiedler’sTheoryofLeadershipholdsthatmanagerstendtobeeithertask-orperson-centeredleaders.Successdependsonthreecontingenciesorcharacteristicsofworksituation:TherelationshipbetweenleaderandsubordinatesThedegreetowhichsubordinates’tasksareclearlydefinedTheofficiallygrantedpoweroftheleaderFiedler’sTheoryofLeadership(2of2)Effectiveleadershipoccurswhentheleadershipstylematchsthesituation.Fiedler’sTheorysuggeststhattask-centeredleadershipworksbestinsituationsthatareeitherfavorableorunfavorableforaleader.Person-centeredleadershipworksbestinsituationsthatarenotclearlyfavorableorunfaborable.Exhibit15.2:
PredictionsofLeaderEffectivenessunderDifferentConditionsPath-GoalTheoryUsingPath-GoalTheory,aleadermightadoptoneoffourleadershipstyles,dependingonthesituation.Thesefourstylesare:Directive(givesubordinatesspecificgoals)Supportive(showconcernfortheirneeds)Participative(consultwiththemandencourage)Achievement-oriented(setgoalsandrewardgoalaccomplishments)Exhibit15.3:
ASimplifiedModelofPath-GoalTheoryPath-GoalTheory:
KeySuggestionsWhensubordinateshavehighachievementneeds,adopttheachievement-orientedstyle.Forsubordinateswithhighsocialneeds,adoptthesupportiveleadershipstyle.Whenthejobisunstructured,adoptadirectivestyleoranachievement-orientedstyle.
Traits,Behaviors&Contingencies
Leadershaveavarietyofbehaviorstheycanusetogetthejobdone.Mostexpertsnowbelievethatnooneleadershiptraitorbehaviorworksbestinallsituations.Asuccessfulleadermustdiagnosethesituation,pickthebehaviorsanddeveloptheleadershiptraitsthatfitbest.NationalContextContingencyModelofLeadership(1of2)Successfulleadershipinmultinationalcompaniesrequiresthatmanagersadjusttheirleadershipstylestofitdifferentsituations.Learnwhatlocalmanagersdotoleadsuccessfullyintheirowncountries.Usethatknowledgetomodifyyourleadershipstyleappropriately.NationalContextContingencyModelofLeadership(2of2)Inamultinationalsetting,thesecomponentsareallaffectedbythenationalcontext:Leaderbehaviors&traitsSubordinatescharacteristicsWorksettingExhibit15.4:
National-ContextContingencyModel
ofLeadershipLeadershipTraitsandBehaviorsintheNationalContextPeopleprefercertaintraitsandbehaviorsintheirleadersdependingontheirculturalbackgrounds,thoughsomebehaviors&traitsareculturaluniversals.GLOBE(GlobalLeadershipandOrganizationalBehaviorEffectiveness)conductedcross-nationalresearch
of60nationsondifferencesinleadership.Theirstudycontainsinsightsthatcanhelpamanagerdevelopleadershipstylestonavigatesuccessfullythroughamazeofculturalsettings.Exhibit15.5
Culture-FreePositivelyandNegativelyRegardedLeadershipTraits&BehaviorsExhibit15.6:
GLOBE’sStudyClustersand
CountriesIncludedinEachClusterExhibit15.7:
CulturallyContingentBeliefsRegardingEffectiveLeadershipStylesExhibit15.7:(cont’d)
CulturallyContingentBeliefsRegardingEffectiveLeadershipStylesGLOBEFindingsLeadershipstylesvarybycountry.Team-orientedleaderspreferredinLatinEuropean,EastEuropeanandSouthernAsiansocieties.ParticipativeleadersarepreferredbyAnglo,NordicEuropean,andGermanicEuropeancultures.HumaneleaderspreferredinSouthernAsiancultures.Allagreedthatautonomousleadersandself-protectiveleadersuniversallyimpededleadership.NationalContextandPreferredLeaderInfluenceTacticsInfluenceTacticsaretacticalbehaviorsleadersusetoinfluencesubordinates.U.SmanagersfavorseveninfluencetacticsAssertivenessFriendlinessReasoningBargainingSanctioningAppealstoahigherauthorityCoalitionsExhibit15.8:
PreferredLeaderInfluenceTactics
inFourCountriesNationalContextandSubordinates’Expectations(1of2)ThenationalcontextaffectsSubordinates’Expectations:whatleaders“should”doandwhattheymayormaynotdo.Powerdistancehasprofoundeffectsonexpectations:Inhighpower-distancecountries,autocraticleadershipisexpected.Inlowpower-distancecountries,theleadershouldforegostatussymbols,&involvesubordinatesindecision-making.Exhibit15.9:
Subordinates’Expectations
underThreeLevelsofPowerDistance
NationalContextandSubordinates’Expectations(2of2)Otherculturalvaluesaffectsubordinates’expectations:StrongmasculinitynormsleadtotheacceptanceofmoreauthoritarianleadershipStronguncertainty-avoidancenormsleadsubordinatestoexpecttheleadertoprovidemoredetailindirectionsContemporaryLeadershipPerspectives:
MultinationalImplicationsTherearetwocontemporaryapproachestoleadership:TransformationalLeadershipAttributionApproachTheGLOBEstudyfoundthatTransformationalLeadershipwasconsideredsuperiorinalmostallsocieties.TransformationalLeaders(1of2)TheTransformationalLeader:ArticulatesavisionBreaksfromthestatusquoProvidesgoalsandaplanGivesmeaningorapurposetogoalsTakesrisksIsmotivatedtoleadBuildsapowerbaseDemonstrateshighethicalandmoralstandardsTransformationalLeaders(2of2)Transformationalleaderssucceedbecausesubordinatesrespondtothemwithhighlevelsofperformance,personaldevotion,reverence,excitementaboutleader’sideas,andwillingnesstosacrificeforthegoodofthecompanyTransformationalLeadersgobeyondTransactionalLeadership
whichusespunishmentandrewards.Thesameleadershiptraitsmaynotleadtotransformationalleadershipinallcountries.AttributionsandLeadership(1of2)Theattributionalapproachtoleadershipemphasizestheleader’sattributionsregardingthecausesofsubordinates’behaviors.Indetermininghowtorespondtoasubordinate’sbehavior,theleadermakestwokeydistinctions:Externalattribution:factorsoutsidethepersonandbeyondtheperson’scontrol(illness);orInternalattribution:characteristicsoftheperson(e.g.,personality,motivation,lowability,etc.)AttributionsandLeadership(2of2)Onceleadermakesanattribution,theleaderrespondstothesubordinatebasedonthatassumption.Internalattribution:behaviorcorrectedorrewardedExternalattribution:modifytheworkenvironmentFundamentalattributionerror:anassumptionbyamanagerthatpeoplebehaveincertainwaysbecauseofinternalmotivations,ratherthanoutsidefactorsSuccessfulleadersmakethecorrectattributions.GettingtheResults:ShouldYouDoWhatWorksatHome?Thecontingencyviewofleadershipsuggeststhatmanagerscannotassumethatsuccessfulhomeleadershipstylesor
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