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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