Download Chapter 9 - Leadership

Chapter 9
Leadership
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
9-1
What is Leadership?

No straightforward definition of leadership in
cross-cultural context
– Not all cultures have the term leader (in Asian
countries its more a „coach“ of a group, in Germany
the term is not politically correct)
– Different understanding and expectations for authority
roles in different countries (depending on power distance)
– Countries like USA distinguish leadership roles
(assistant vice president, vice president, executive vice president,
senior vice president, president) and attach a great deal of
meaning to these titles
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
Definition of Leadership

Leadership is a process by which a
person
– exerts influence over other people
– inspires, motivates and directs their
activities (to achieve group/ organizational goals)
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
9-4
Culture and Leadership

Three cultural influences
– National Culture
– Political Culture
– Organizational Culture
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
Culture and Leadership

National Culture (core values about rights/
duties of citizens, constitute a worldview [e.g.
American understanding of freedom])
– Violating core values leads to loss of
leader‘s authority over subordinates (may
even be removed from leadership position)
– Otherwise: values or employment laws like
e.g. equal treatment of men and women
are often violated in companies by
sophisticated barriers
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
9-5
Culture and Leadership

Political Culture
– Political structures often reflect central
national cultural values
– Values of the political system affect
organizational leadership
Countries with democratic political values
prefer participative leadership in workplace
 Countries with autocratic political regimes (e.g.
in South America) prefer a nonparticipatory
leadership style

Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
Culture and Leadership

Organizational Culture (corporate culture)
– Managing organizational culture (creating,
maintaining or changing norms and values) is an
important leadership contribution
– Corporate culture can place constraints to
leaders and shape their behavior (e.g.
resistance to organizational changes)

Leadership, Culture and Organizational
Change: the example of DaimlerChrysler
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
Sources of Power
Reward
Power
Legitimate
Power
Coercive
Power
Enable managers to be
leaders & influence
subordinates to
achieve goals
Expert
Power
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
Referent
Power
Power: The Key to Leadership

Key component of effective leadership
is found in the power a leader has to
affect other people‘s behavior
– Position power

Authority by virtue of position in hierarchy
(hiring employees, assigning projects to other
workers, monitoring work [legitimate power])

Authority to give or withhold rewards (pay raises,
bonuses, verbal praise [Reward power])

Authority to punish others (dismissal, reductions
in pay,verbal reprimands [coercive power])
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
Power: The Key to Leadership
– Expert power based on special knowledge,
skills, and expertise a leader posses
– Referent power based on personal
characteristics of a leader (stems from
coworkers/ subordinates respect, admiration and
loyalty)
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
What Makes A Leader?

D. Goleman‘s Emotional Intelligence
(EQ) Approach
– IQ and technical skills are not irrelevant but
entry-level requirements for executive
positions
– Emotional intelligence makes a person a
leader and is much more important for
excellent performance
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
What Makes A Leader?

Components of Emotional Intelligence
– Self-Awareness
Ability to „know oneself“, i.e. to recognize and
understand one‘s mood, emotions, drives and
their effects on others
 Hallmarks: self-confidence, realistic selfassessment, self-deprecating sense of humor

Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
What Makes A Leader?
– Self-regulation

Ability to control disruptive impulses and moods
(frees us from being prisoners of our feelings)
Ability to suspend judgement (think before act)
 Hallmarks: trustworthiness and integrity,
comfort with ambiguity, openness to change

– Motivation
Intrinsic motivation (work for reasons beyond
money, status), pursuing of goals with energy
and persistence
 Hallmarks: strong drive to achieve, optimism even in the face of failure, organizational
commitment

Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
What Makes A Leader?
– Empathy
Ability to understand the emotional makeup of
other people and skill to treat people according to
their emotional reactions
 Hallmarks: expertise in building and retaining
talent, cross-cultural sensitivity, service to clients
and customers

– Social Skills
Proficiency in managing relationships and building
networks, ability to find common ground and build
rapport
 Hallmarks: effectiveness in leading change,
persuasiveness, expertise in building and leading
teams

Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
What Makes A Leader?

McGregor‘s Theory X and Y
– Leadership style is dominated by assumptions
leaders develop about work attitudes and
behaviors
– Theory X

People are seen to prefer to avoid hard work and
require constant direction and supervision (e.g. by
means of „the carrot and stick“)

Managers as leaders try to maximize control over
worker‘s behavior (by developing rules [SOP‘s] and a
well defined system of rewards and punishments to be
able to exert control)
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
9-6
What Makes A Leader?
– Theory Y
Workers are seen as self-motivated and
capable of undertaking complex requiring little
direct supervision
 Limits of collaboration are not limits of human
nature but of leaders inventiveness in realizing
workers‘ potential
 Managers as leaders should trust workers and
provide opportunities for workers to flourish

(create work settings that encourage initiative and
self-direction)
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
What Makes A Leader?
– Japan has different work settings than USA:
collective orientation towards work
– Theory Z tries to capture the advantages of
the Japanese approach

Workers are guaranteed long-term employment
(takes off the layoff-risk)

recognition of individual contributions is
combined with group orientation (interpersonal
skills that improve decision making or communication)

Requires a more flexible and change responsive
organization
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
What Makes A Leader?
– Theory X and Y shouldn‘t be viewed as
mutually exclusive but as complementary in
explaining human behavior
– Theory Y leadership style is consistent with
low power distance orientation
– In high power countries a participative leader
may appear incompetent (leader is expected to
lead by dominating behavior [e.g. exerting power])
– Not all societies value underlying
assumptions of achievement and selfdevelopment
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
Fiedler‘s Contingency Model
effective leadership is contingent on
both the characteristics of the leader
and the situation.
 Two basic leader styles

– Relationship-oriented: concerned with
developing good interpersonal relations
with subordinates
– Task-oriented: concerned that workers
perform so the job gets done (performance
may even be measured on a weekly basis)
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
Fiedler‘s Contingency Model

To measure leader style Fiedler let
leaders rate coworkers with whom they
could work least well (called LeastPreferred Coworker or LPC)
– Relationship-oriented leaders tend to
describe the LPC in relatively positively
terms (leaders are referred to as high LPC)
– Task-oriented leaders tend to describe the
LPC in negative terms (leaders are referred to
as low LPC)
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
Fiedler‘s Contingency Model

Situational characteristics that determine,
how favorable a given situation is for leading
– Leader-member relations (how much do workers like
and trust their leader)
 Good leader-member relationships are favorable for
leading
– Task structure (extent to which workers tasks are clearcut)
 Clear issues make a situation favorable for leadership
– Position Power (amount of legitimate, reward, &
coercive power in a leader position)
 Strong positional power is favorable for exertion of
leadership
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
Fiedler‘s Contingency Model

Situational characteristics can be combined to identify
leadership situations for the two leadership styles
LeaderMember
Relations
GOOD
POOR
Task
Structure
HIGH
LO W
HIGH
Position
Power
S
S
W
S
W
S
III
IV
V
VI
VII
W
I
1
II
Kinds of
Leadership
Very
Situations Favorable
LOW
W
VIII
Very
Unfavorable
Relationship-oriented managers most effective in IV, V, VI, VII.
Task-oriented managers most effective in I, II, III or VIII.
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
Using Fiedler’s Model

Leader style is a characteristic
managers cannot change. Thus,
managers will be most effective when:
1. They are placed in leadership situations
that suit their style
2. The situation can be changed to fit the
manager
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
House’s Path-Goal Model
Path-Goal is a contingency model since it
proposes the steps managers should take
to motivate their workers.
 Model suggests that effective leaders
motivate workers to achieve by:

1) Clearly determine the outcomes workers are
trying to achieved.
2) Reward workers for high-performance and
attainment.
3) Clarifying the paths to the attainment of the
goals.
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
Steps to Path-Goal
1) Determine the outcomes your subordinates
are trying to obtain. (Can range from pay to job
security or interesting work)
 Once outcomes determined, manager needs to
be sure they have the reward power to provide
these.
2) Reward subordinates for high-performance
and goal attainment with the desired
outcomes.
3) Clarify the paths to goal attainment for
workers, remove obstacles to performance,
and express confidence in worker’s ability.
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
Motivating with Path-goal

Path-goal identifies four behaviors leaders
can use:
– set goals, assign tasks, show how to do
things. (Directive behaviors)
– look out for the worker’s best interest.
(Supportive behavior)
–
give subordinates a say in matters that affect
them. (Participative behavior)
– Setting very challenging goals, believing in
worker’s abilities. (Achievement-oriented
behavior)

Which behavior should be used depends on the
worker and the tasks.
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
Transformational Leadership
Contemporary approaches to leadership
stress the ability to cope with change
 They emphasize vision and charisma of
leaders and their attempt to promote
personal growth of subordinates to
accomplish change

Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
Transformational Leadership
– Transformational Leadership
 Transformational
leaders are charismatic and
have a vision of how good things can be.
–
–
Transformational leaders openly share information
with workers.


–
They are excited and clearly communicate this to
subordinates
Everyone is aware of problems and the need for change
Empower workers to help with solutions.
Transformational leaders engage in development
of workers.

Manager works hard to help them build skills
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
Charismatic Leadership
Charismatic and Noncharismatic Leaders Differ Significantly
Noncharismatic Leader Charismatic Leader
Relation to
status quo
Essentially agrees with Essentially opposed to
status quo and strives status quo and strives to
to maintain it
change it
Future goal Goal not too discrepant Idealized vision that is highly
from status quo
discrepant from status quo
Likableness Shared perspective
makes him/her likable
Shared perspective and
idealized vision makes him a
likable/ honorable hero worthy
of identification and imitation
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
Charismatic Leadership
Charismatic and Noncharismatic Leaders Differ Significantly
Noncharismatic Leader
Charismatic Leader
Trustworthiness Disinterested advocacy
in persuasion attempts
Expertise
Behavior
Disinterested advocacy by
incurring great personal risk
and cost
Expert in using available Expert in using
means to achieve goals unconventional means to
within the existing order transcend the existing order
Conventional,
conforming to
existing norms
Unconventional or
counternormative
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
Charismatic Leadership
Charismatic and Noncharismatic Leaders Differ Significantly
Noncharismatic Leader
Environmental Low need for
environmental sensitivity
sensitivity
to maintain status quo
Weak articulation of
Articulation
goals and motivation
to lead
Power base
Charismatic Leader
High need for environmental
sensitivity for changing the
status quo
Strong articulation of future
vision and motivation to
lead
Position power and
Personal power (based on
personal power (based on expertise, respect, and
admiration for a unique
reward, expertise, and
liking for a friend who is a hero)
similar other)
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
Charismatic Leadership
Charismatic and Noncharismatic Leaders Differ Significantly
Noncharismatic Leader
Leader/follower Egalitarian, consensus
relationship
seeking, or directive
Nudges or orders people
to share his/ her views
Charismatic Leader
Elitist, entrepreneur, and
exemplary
Transforms people to share
the radical changes
advocated
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
Women as Leaders



The number of women managers is rising but
still relatively low in top levels
Cultures vary in their encouragement of
women in authority positions
Stereotypes suggest women are supportive
and concerned with interpersonal relations.
Similarly, men are seen as task-focused.
–
–
Research indicates that actually there is no
gender-based difference in leadership
effectiveness.
However, women are seen to be more
participative than men.
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
Women as Leaders

Japan
– Women played a minor role in Japanese
management until recently (traditional role
[marry,raise a famility, work part-time later], nonworking
wifes are status symbol)
– „Dual economy“ in respect to women in
management position

Large-scale industrial and service sector dominated by
men, small-scale personal service sector managed by
women (children‘s clothing stores, real estate agencies,
retail kimono stores)
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
9-11
Women as Leaders

Japan
– Women are successful in subsidiaries of foreign
companies (differen view on gender equality)
– Prospects of women in Japan are increasing
(more due to projected labor shortage [low birth rates]
than cultural change)

Poland
– Women were historically vastly
underrepresented (leaders were selected from pool of
loyal (male) communists)
– Political changes end of the 80ies didn‘t improve
womens‘ status because of the influence of the
catholic church (want women to take traditional role as
homemakers and mothers)
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
Women as Leaders

Tanzania
– Political and legislative attempts to eliminate
discrimination against women in employment
– Tanzanian culture treats female marriage
partners extremely unequal (men have totally
control over wife‘s domestic and occupational roles)
– Working Women face sexual harassment in
the workplace
– Successful women provoke rumorsf to have
slept with a man in a powerful position
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
Convergence or Divergence?

The spread of
leadership styles
of multinational
and global
organizations

Resistance of
national cultures to
new styles of
leadership
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
9-12
Implications for Managers



Understanding leadership important since all
managers perform leadership functions
Need to assess other cultures to understand
what can be changed and what is immutable
Charismatic or transformational leadership
styles appropriate for large organizational
change efforts
Copyright 1998 Prentice-Hall, adapted by Prof. Dr. vom Kolke
9-13