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Chapter 3: Leadership, Motivation,
and Group Behavior
GROUP #2
Chapter Introduction
• Generating Interest in Business
• Leadership articles/books most published
• Not only in United States but all over, such as China
Chapter 3
 Chapter broken into 3 parts
 Leadership Across Cultures
 Motivation Across Cultures
 Group Behavior
 These parts are explained by 10 paradoxes
Section 1
LEADERSHIP
Paradox 3.1
FRAMING LEADERSHIP
Topics Covered
 Is the essence of leadership being stuck on the horns
of a dilemma?
 In order to answer this we must asses our own
definition of leadership
The Functions of the Executive
 Chester Barnard book The Functions of the Executive
published in 1938
 Managerial focus was tangible resources before World
War II
 After Barnard’s book focus shifted toward intangible
aspects of firms

Culture, service quality, customer perception
 Most importantly, motivating workers
Three Essentials of an Organization
 Defined by Bernard
 Systems of communication between individuals and groups
 Motivation (willingness to serve)
 Common purpose integrating efforts of individuals and groups
Three Essential Tasks
 Barnard then describes three essential tasks of the
Management/Executives



Development of effective communication throughout the
organization
To motivate subordinates
Define a common purpose, goal of organization, or defining
what the organization’s trying to accomplish
 Stresses that the Management/Executive is critical
factor of an organization
Reasons for Motivation
 Zone of Acceptance
Nine Dilemmas
 Thomas Stewart in an article, interview based
project, published in 1996 found leaders must
address nine dilemmas
1. Revenue growth versus cost containment
2. A short-term versus long-term focus
3. Creativity versus organizational discipline
4. The needs of people versus demand of productivity
Nine Dilemmas Continued
5. Specific capabilities of subordinates versus their
leadership potential
6. Independence versus Dependence of
organizational members and departments
7. Bureaucracy busting versus creating economies of
scale
8. Trust versus demand for change
9. Broad-based projects versus only-high visibility
projects
Application
 How does any of this help us become better leaders?
 Polarity Management
 Ambiguity Management
 Managing Opportunity Costs
 Jack Welch and Jeffery Immelt
Cultural Ties
 Culture and Leadership
 Thought it was complex before?
 What is socially acceptable in one country may be
legally unacceptable in another
 GLOBE Researchers support concept of “Cultural
Universals” as well as
“Cultural Specifics” (pg 52)
Bottom Line of 3.1
 Managing polarity and ambiguity can be seen as the
essence of leadership
 Activities range from 2 minutes to 2 hours
 Important to select the correct premise of dilemmas
 Equally important to fully commit to the
implementation of that which is selected
Paradox 3.2
WHO IS MORE EFFECTIVE, THE INSTRUMENTALVISIONARY-TRANSFORMATIONAL LEADER OR THE
HEADMAN?
Topics Covered
 Compare leadership styles in authority-ranking and
market-pricing cultures
 Will discuss briefly the GLOBE study
 Transformational leadership - the degree to which the
leader is able to effect a change not only in the firm’s
culture but also in profitability
 Visionary leadership – the degree to which the leader
provides a vision of the future to which organizational
members subscribe so that the transformation can occur
Market Pricing Cultures
 This is the culture here in the U.S
 Example of a great transformational and visionary leader
is Jack Welch, a CEO of General Electric
 Leaders come in all different types, shapes, and varieties
 Charismatic leadership: larger-than-life individual
capable of galvanizing and motivating subordinates
through his assumed special abilities
Authority Ranking Cultures
 Found in areas such as Asia, Latin America, the Middle
East, and Africa
 Headman leadership: a two-way psychological
relationship based on mutual obligations exists between
leader and follower and extends beyond work to include
cultural and community factors
 The headman leadership role can be very stressful for the
leaders
 Have the concept of guaranteed employment
Two Cultures Together
 General Motors and Toyota’s joint venture in the late
1980’s
 Toyota’s Production System
 Guaranteed employment and Employability
 Puter Sampoerna and the Sampoerna Company in
Indonesia
GLOBE Study
 62 National cultures broken down into 10
clusters
Bottom Line of 3.2
 Leadership styles in authority-ranking and market-
pricing cultures
 The GLOBE study
 Transformational leadership
 Visionary leadership
Paradox 3.3
WHEN SHOULD A LEADER ALLOW SUBORDINATES TO
PARTICIPATE IN DECISION MAKING?
The degree of subordinate involvement in
decision making…
 Most popular topic evaluated considering work
motivation



Time issues
Extra/special knowledge available
Increase acceptance of programs
(Research done in the US)
Other nations surveys show…
 Positive links with respondents
 Consider maximums and minimums
 Emphasize difference between leaders
 Could unintentionally challenge values
Bottom Line of 3.3
 Consider implementing subordinate participation in
decision making, but also make sure actions are
made consistent with those in a given culture.
Paradox 3.4
CAN AN EFFECTIVE LEADER BE SOMEONE WHO
PUBLICLY HUMILIATES SUBORDINATES?
How would you feel if your boss…
 Publicly humiliated you?
 Closely supervised you?
 Constantly pointed out your errors?
 Strongly insisted how each step of the process should
be done?
Individualistic Cultures
Collectivist Cultures
 Ineffective, distasteful
 Positive, encouraging
 Individualists tend to
 Why?
 Sign of genuine care
 High consideration
favor:




Positive reinforcement
Private negative feedback
Work independently
Positive recognition
 Argument Against:
 Macho Collectivists
Cultures

 CEO of Hewett-Packard

Africa, Latin America
Developing Cultures

Changes in Trends
Qualities of an Effective Leader
 Two Main Predictors of an Effective Leader:
 Empathy
 Flexibility
 Identical across cultures…
 Surface Features
 How a leader implements these predictors
 Vary enormously across cultures
Bottom Line of 3.4
 Motivation is necessary
 How to motivate depends on the social norms
 It is very important to know your environment
 Research and read
 Talk with current and former employees (Ex-Pat)
Section 2
MOTIVATION
Paradox 3.5
IS THE RELATIONSHIP BETWEEN MOTIVATION AND
ABILITY ADDITIVE OR MULTIPLICATIVE IN THE
PREDICTION OF INDIVIDUAL SUCCESS AND
PERFORMANCE?
Helps us answer two questions
 What is the relationship between performance and
success?
 What is the relationship between ability and
motivation?
The Expectancy Theory
Says individuals must perceive that
 They have proper resources, skills, and abilities to be
successful
 If they make an effort, they will be successful and
they will be rewarded
 The rewards are the ones they desire
Collectivistic vs. Individualistic
 Collectivist cultures (ex. China)
 Assume the relationship between ability and motivation is
additive
 Individualistic (ex. US)
 Assume the relationship between ability and motivation is
multiplicative
Examples
 Additive

Receiving a 6* for both ability and motivation would give a
score of 12
 Multiplicative

Receiving a 6* for both ability and motivation would give a
score of 36
*on a 10 point scale
 This means…
“Market-pricing cultures (like the US) generally expect far more from
their managers and workers than do collectivistic, authority-ranking
cultures[…] this, in turn, increases the the total score or level of
performance expected” (pg. 65).
United States
 Equality of opportunity NOT equality of
outcomes
 “Pay
for performance”
 “Management by objectives”
 Suggest that
 levels
of performance should be compensated
 motivation can influence performance
China
 See the organization as a family
 Relationship between superior and subordinate is
psychological in nature
 Tendency to
 Avoid rating and ranking managers and employers who will
work together for 30 or more years
 Make statements of “average performance” in order to save
face
Bottom Line of 3.5
 “When culture is included in the framework, the
relationship between ability and motivation is
assumed to be significantly different” (pg. 66).
Paradox 3.6
CAN AN INDIVIDUALLY BASED NEED HIERARCHY
EXIST IN A COLLECTIVISTIC CULTURE?
Maslow’s Hierarchy of Needs
 Experts have reduced the theory to 2 Levels:

1. Physiological and Safety

2. Higher-order Needs
Market-Pricing Culture
 Focuses on individual
responsibility
 One-way relationship
between the leader and
subordinates
 Western nations
Authority-Ranking Culture
 Emphasize a family
model
 Two-way relationship
between the leader and
subordinates
 Non-Western nations
Differences in Motivation of Cultures
 European/American background:


Person specific
Ego-centered
 Asian background:


Trust authority figures or peers
Social
 Commonalities:

People want to be treated equally and fairly with adequate awards
 Notions of equity and adequate rewards vary drastically
Bottom Line of 3.6
 People have their own needs (survival, social status)
 Main motivation
 Important in every culture
 To what degree…
 Equality
 United States
Opportunity
 Treatment


China
Team
 Success

Paradox 3.7
DO EFFECTIVE EXECUTIVES ATTRIBUTE SUCCESS TO
THEMSELVES OR TO OTHERS?
Topics Covered
 Leadership vs. Motivation
 Attribution Theory
Types of Attribution Theory
 Fundamental attribution error
 Attributes success to subordinates, superiors, peers, or
environment
 Self-serving bias
 Attributes success to the individuals own effort and deemphasizes the efforts of others and the environment
 Ex: new CEO taking all the credit for success when
really it really was strategies of the former CEO and
co-workers that were successful
Individualistic vs. Collectivists
 Individualistic, market-pricing culture Fundamental attribution error
 Self-serving bias
 Collectivists, authority ranking culture Fundamental attribution error
 Non-self-serving attribution error
 Daewoo Motor Company example
Bottom Line of 3.7
 Studies repeatedly show China and other Asian
countries are Collectivists but, the United States selfserving bias is higher than expected.
 There are clear connections between leadership and
motivation. These differences will explain actual
behaviors in the next section.
Section 3
GROUP BEHAVIOR
Paradox 3.8
DO GROUPS CONTAIN FREE RIDERS, OR ARE ALL
MEMBERS EQUALLY RESPONSIBLE CONTRIBUTORS?
Group Behavior
 Linear four-step pattern
 Forming
 Storming
 Norming
 Performing
Bottom Line of 3.8
 Free rider effect
 Peer-group ratings
 Group sizes
 Culture
 Individualistic
 Collectivistic
 China
Paradox 3.9
IN GENERAL AND IN SMALL GROUPS, DO THE
PERSONALITIES OF INDIVIDUALS PRIMARILY
REFLECT THE INFLUENCE OF CULTURE?
Culture’s Influence on Personalities
 Collectivistic
 Individualistic
 Can deviate from the culture’s values
Your Personality
 What personality type are you?
 ‘20 Items’
 Finish the phrase “I am…” with adjectives, items, or
descriptions
Personality Interaction
 The criticality of the culture generally determines a
person’s tendency toward a personality
 Both personalities will adopt to the group norm
Group Interactions
Group
Personality
Individual Personality
Individualism
Collectivism
Individualistic
Collectivistic
Less
Cooperative
Less Cooperative
Follows
Individualistic
Norms
More Cooperative
Works Hard
Strives Harder to
Great Cooperation
Fit-In
Sources of Personalities
 Collectivistic cultures
 No distinction between individual and situation
 ‘Continuous Shaping’ through situational influences
 Get traits OUT of the situation
 Individualistic Cultures
 Act in character no matter the situation
 Norm of consistency
 Bring traits INTO the situation
Bottom Line of 3.9
 Your individual personality can differ from culture
values
 In small groups, your individual personality can
change to adopt to norms of your group
 Your personality traits are either consistent or
shaped by your situation depending on your culture
influence
Paradox 3.10.
SHOULD MULTICULTURAL GROUPS BE MANAGED
DIFFERENTLY FROM SINGLE-CULTURE GROUPS?
Smith and Berg
 Kenwyn Smith and David Berg (1987)
 Counterintuitive concepts about the functioning and
management of multicultural small groups

Smith and Berg point out differences predominate in multicultural
small groups
 As a result
 Smith and Berg developed a three phase process to enhance
the functioning of multicultural small groups
Smith and Berg’s Three-phases
 Learning how to learn together
 Learning something of value
 Discovering members’ unique cultural contributions
 Knowledge of other cultures is limited
 Exploring group polarities
 How groups should function in home countries
Results of three-phase process
 Description of dilemmas that small groups face such
as:





Individualism or collectivism
Autocratic versus participative decision making
Spontaneous versus orchestrated decisions before the meeting
Task orientation versus process orientation
Quality versus quantity of actions taken
Smith and Berg’s Solutions
 Movement away from a linear and non-paradoxical
way of thinking to a nonlinear way of thinking that
accepts paradoxes openly
 Integrate each element of the paradox
 The paradoxes that Smith and Berg identified are of
a special type, namely dilemmas
Bottom Line of 3.10.
 This paradox confirms that perception, leadership,
motivation, and actual behavior differ significantly
across culture, particularly when we compare
collectivistic, authority-ranking cultures and
individualistic, market-pricing cultures.
The End