Global Manager Lecture 4
OPENING QUESTION: How can we best prepare today’s managers for tomorrow’s global challenges?
What is management? Some definitions Coordination and control of people, material, and processes to achieve organizational objectives as efficiently and effectively as possible. Getting things done through coordinated efforts. Planning, organizing, leading and controlling. Coordinating and overseeing the work activities of others so that their activities are completed efficiently and effectively.
IS MANAGEMENT UNIVERSAL? 1. Are these definitions of management universal or do they vary across different geographic regions? 2. If these definitions are universal, how might their implementation vary across national and regional boundaries? 3. What are the implications of such possible variations for global management development?
What Is Leadership? 10 -5
Leadership has been defined as the ability to persuade others to seek set objectives enthusiastically (Robbins, 1998). …. . “is the ability to influence, motivate and contribute towards the effectiveness of the organizations of which they are members” (House and Wright, 1997). 10 -6
Project GLOBE (Global Leadership and Organizational Behavior Effectiveness) – attempt to develop an empirically based theory to describe, understand, and predict the impact of specific cultural variables on leadership and organizational processes and the effectiveness of these processes
While the research on leadership across cultures is limited, one significant exception is Project GLOBE, a long-term, multimethod, multiphase, cross-cultural research program that looks at leadership and organizational practices and values in sixty-one countries (House et al. , 1999). Project GLOBE looks at the interrelationship between organizational leadership and societal and organizational culture, since culture affects values, beliefs, and meanings and also influences leadership (Ayman, Chemers, and Fiedler, 1995). http: //www. tlu. ee/~sirvir/IKM/Leadership%20 Dimensions/gl obe_project. html 10 -8
The GLOBE project conceived in 1991 by Robert J. House of the Wharton School of the University of Pennsylvania. The GLOBE Project directly involved 170 “country co-investigators” based in 62 of the world’s cultures as well as a 14 -member group of coordinators and research associates. This international team collected data from 17, 300 middle managers in 951 organizations. © 2006 Prentice Hall 10 -9
Nine Basic Cultural Dimensions from the GLOBE Project Power distance – How much unequal distribution of power should there be in organizations and society? Uncertainty-avoidance – How much should people rely on social norms and rules to avoid uncertainty and limit unpredictability?
Nine Basic Cultural Dimensions from the GLOBE Project Institutional collectivism – How much should leaders encourage and reward loyalty to the social unit, as opposed to the pursuit of individual goals? In-group collectivism – How much pride and loyalty should individuals have for their family or organization?
Nine Basic Cultural Dimensions from the GLOBE Project Gender egalitarianism – How much effort should be put into minimizing gender discrimination and role inequalities? Assertiveness – How confrontational and dominant should individuals be in social relationships? Future orientation – How much should people delay gratification by planning and saving for the future?
Nine Basic Cultural Dimensions from the GLOBE Project Performance orientation – How much should individuals be rewarded for improvement and excellence? Humane orientation – How much should society encourage and reward people for being kind, fair, friendly, and generous?
How do different countries score on the GLOBE cultural dimensions? A quick overview shows a great deal of cultural diversity around the world. © 2006 Prentice Hall 10 -14
Countries Ranking Highest and Lowest on the GLOBE Cultural Dimensions
HIGH PERFORMANCE ORIENTATION societies have characteristics such as. . . Value training and development. Value competitiveness and materialism. View formal feedback as necessary for performance improvement. Value what one does more than who one is. Expect direct, explicit communication. LOW PERFORMANCE ORIENTATION societies have characteristics such as. . . Value societal and family relationships. Value harmony with the environment. View formal feedback as judgmental and discomfiting. Value who one is more than what one does. Expect indirect, subtle communication. © 2006 Prentice Hall 10 -16
Countries Ranking Highest and Lowest on the GLOBE Cultural Dimensions
The next stage of the project included the development of a research protocol including a questionnaire to measure culturally endorsed implicit leadership theory, as well as interviews and theory focus groups designed to elicit information about the perceived attributes of ideal leaders. Implicit leadership theories look at the personal characteristics and attitudes that followers expect from their leaders. Explicit leadership theories are based on the observation and evaluation of the overt behavior of leaders. How we experience a leader and leadership is influenced by our personal implicit leadership theory. For example, if I think a leader should be very visible to his or her followers, I will perceive a person who stays in the office planning and creating as a less effective leader than someone who walks around a lot, even though the wandering may be accomplishing little. 10 -18
Project GLOBE initially identified twenty-three leadership styles that work in one or more of the cultures included in the project. These leadership styles were then categorized into six distinct leadership models: transformational-charismatic team oriented, humane, participative, autonomous, and self-protective. 10 -19
Transformational-charismatic leaders are visionary, inspirational, decisive, and performance oriented, and they have high levels of personal integrity. Team-oriented leaders are team builders, and they are collaborative and diplomatic. Humane leaders are generous and compassionate in a calm, modest, and patient way. 10 -20
Participative leaders act in a nonautocratic and nondictatorial manner, they delegate, and they behave in an egalitarian way. Self-protective leadership involves being selfcentered, status conscious, face saving, conflict inducing, and procedural. Autonomous leaders are individualistic, independent, and unique. 10 -21
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South Asia cluster In the South Asia cluster (India, Indonesia, the Philippines, Malaysia, Thailand, and Iran), transformationalcharismatic and team-oriented leadership models were the most effective, although humane and participative leaders effective were also rated highly. Autonomous and self-protective leaders were seen as the least effective (Gupta, Surie, and Javidan, 2002). These research results suggest that leaders in this cluster need to be more responsive to humane considerations than they might need to be in other cultures. 10 -23
Anglo cluster Leaders who are charismatic, team oriented, and participative are seen as the most effective in the Anglo cluster (Australia, Canada, the United Kingdom, Ireland, New Zealand, and South Africa [white sample]). Once again, the autonomous and self-protective leadership styles were seen as not being effective. 10 -24
Eastern European cluster The samples from the Eastern European cluster (Albania, Georgia, Greece, Hungary, Kazakhstan, Poland, Russia, and Slovenia) responded in a similar way to those in the other clusters by identifying the transformationalcharismatic and team-oriented leadership behaviors as the most effective, with participative leadership also being seen as valuable and self-protectiveness seen as the least valuable (Bakacsi, Sandor, Andras, and Viktor, 2002). 10 -25
Germanic European cluster The Germanic European cluster (Austria, Germany, the Netherlands, and Switzerland) is characterized by a tendency for more rules and standardization, and once standardization again charisma, team-orientation, and participation are seen as effective leadership styles (Szabo et al. , 2002). In this cluster, humane orientation is also seen as helpful, but not at a high level. Autonomous leadership is seen as not contributing much, and self-protective behavior is seen as being an ineffective leadership style. 10 -26
Latin European cluster Leadership effectiveness is also associated with the charismatic, team-oriented, and participative styles in the Latin European cluster (Italy, Portugal, Spain). The respondents in this cluster scored lower on humane, autonomous, and self-protective leadership 10 -27
Arabic cluster The final cluster report relates to the Arabic cluster (Qatar, Morocco, Turkey, Egypt, and Kuwait). The top-two leadership characteristics of effective leaders were the same as for the other clusters, although their relative importance switched. For switched this cluster, team-orientation was rated the highest, with highest charismatic leadership also rated highly. Leaders are expected to be competent and have modest attributes and, at the same time, be a person with a “miracle” who is able to lead to attain followers’ ideals (Abdalla and Al. Homoud, 2001). Building relationships and trust are very important to managerial effectiveness. An “outstanding leader effectiveness in the Arabic cluster is a person who is able to initiate change and improvement by keeping group solidarity and yet at the same time avoiding nepotism” (Kabasakal and Bodur, 2002, p. 52). 10 -28
Types of Global Managers Expatriates managers Frequent flyers managers Virtual managers Management Focus • Long-term • Live in foreign country • Short term • Frequent visits • Remote • Work through technology Mode of communication Mostly face to face Mixed face-to-face and virtual Mostly virtual Key success factors • Deep knowledge of local culture • Local language • Local business environment • Global business issues • Understanding of cultural issues • Multilingual skills important • Deep understanding of global issues • Some understanding of cultural differences and variation in business practices • Multilingual skills useful Cultural challenge Regional myopia: overemphasis of local versus global Global myopia: overemphasis of global versus local Technological myopia: ignore impact of culture on uses and applications of technology
Building Global Management Skills Integration of management and cross-cultural skills
Key multicultural competencies A cosmopolitan outlook Intercultural communication skills Cultural sensitivity Rapid acculturation skills Flexible management style Cultural synergy
A learning strategy for global managers Develop awareness and Developing multicultural understanding competence and action plans Learn from observation, Adjust behavioral strategies in descriptions, actions, experiences, response to what has been reflections and analysis learned
Global competence Expert global managers are different from expert domestic managers, if managers for no other reason that they are forced to adapt to the demands of significantly greater complexity. These demands include: - a heightened need for cultural understanding within a setting characterized by widerranging diversity; - greater need for broad knowledge that spans functions and nations; - heightened ambiguity surrounding decisions and related outcomes/effects; - more challenging ethical dilemmas relating to globalization. 10 -34
The basic model for global competency is illustrated in figure as a triangle with a foundation and four levels. 10 -35
Level 1 consists of four specific traits: integrity, humility, inquisitiveness, and hardiness. Level 2 of the triangle shifts to attitudes and orientations that influence how managers perceive and interpret the world. Attitudes are, in turn, followed by Level 3, which is associated with interpersonal interaction, with a particular focus on relationships within and among individuals and/or groups. Level 4. The top of the triangle reflects upward movement to the level of systems – organizational and/or sociocultural. The central focus at this level is the ability to manage people and the systems in which they work. Taken as a whole, these competencies are meta-skills that encapsulate many others required for global work. 10 -36
Preparing for a Foreign Assignment Expatriate – refers to anyone living and/or working outside their home country
The Foreign Assignment Cycle
Avoiding Culture Shock Culture shock – anxiety and doubt caused by an overload of new expectations and cues Best defense is comprehensive crosscultural training, including intensive language study
The Foreign Assignment Cycle
Ethnocentrism
Ethnocentrism is judging another culture solely by the values and standards of one's own culture. Ethnocentric individuals judge other groups relative to their own ethnic group or culture, especially with concern for language, behavior, customs, and religion. These ethnic distinctions and subdivisions serve to define each ethnicity's unique cultural identity. Ethnocentrism may be overt or subtle, and while it is considered a natural proclivity of human psychology, it has developed a generally negative connotation. – belief that one’s native country, culture, language, and behavior are superior to all others.
Research Insight and Dealing with Ethnocentrism A survey of companies in Europe, Japan and the U. S. found ethnocentric staffing and human resource policies to be associated with increased personnel problems. Those problems included recruiting difficulties, high turnover rates, and lawsuits over personnel policies. Research suggests ethnocentrism is bad for business. A survey of 918 companies with home offices in the United States (272 companies), Japan (309), and Europe (337) found ethnocentric staffing and human resource policies to be associated with increased personnel problems. Those problems included recruiting difficulties, high turnover rates, and lawsuits over personnel policies. Among the three regional samples, Japanese companies had the most ethnocentric human resource practices and the most international human resource problems.
The Role of the Expatriate Spouse We began to realize that the entire effectiveness of the assignment could be compromised by ignoring the spouse. —Steve Ford, Corporation Relocations, Hewlett-Packard Research on 321 American expatriate spouses shows effective cross-cultural adjustment is more likely – When the firms seek the spouse’s opinion about the international assignment – When the spouse initiates his/her own pre-departure training
Preparation Adaptation, and Repatriation Effective HRM ends with the successful repatriation of the executive into company headquarters Companies must prepare to minimize the potential effects of reverse culture shock Ineffective repatriation practices are clear – few managers will be willing to take international assignments
Preparation Adaptation, and Repatriation A mentor program to monitor the expatriate’s career path while abroad and upon repatriation As an alternative to the mentor program, the establishment of a special organizational unit for the purposes of career planning and continuing guidance for the expatriate A system of supplying information and maintaining contacts with the expatriate so that he or she may continue to feel a part of the home organization.
Successful International Assignments 1. Be sure that repatriation is an explicit part of your international assignment plan. A major reason for repatriate dissatisfaction and turnover is upon their return no positions were available for them. Their new skills and experiences were under appreciated and not utilized. 2. Identify, establish, and maintain communications with sources of ongoing support in your home country. Many repatriates complain that they became disconnected and out of the loop while away. They felt that their opportunities were limited once they returned because nobody was looking out for them while they were away (e. g. , manager, mentor, or career coach). 3. Confirm that senior management openly and genuinely values international expertise. For instance, be certain that international expertise is considered and matters when identifying candidates for future opportunities.
