Leadership across Cultures

Leadership and Management

• No universal definition of both but there is general agreement that
leadership depends more on personality, even charisma, the ability to
motivate and communicate with others, and vision. It is therefore
more of an art,
• Management is more of a science, depending more on ascribed
power and authority with the focus on decision making and
administration.
• Edgar Schein (1992) considers that: ‘The unique function of
leadership that distinguishes it from management and administration
is concern for culture.’
Leadership across Cultures
• A monocultural approach to
leadership is now less
acceptable as an increasing
amount of business is carried
out beyond national
boundaries. The ability to
understand the fundamental
values of other cultures is
essential to avoid
misunderstandings which may
escalate into actual loss of
business opportunities.
Challenges facing 21st century leaders
• New technology and the increasing pace of change
• Increased shareholder expectations
• Increasing scarcity of raw materials with resulting international competition to
secure available sources
• The development of regional trading blocs and the potential large market
grouping being created in the Asia/Pacific region
• The repercussions of the financial and economic turmoil in the West, in contrast
to large sovereign wealth funds held elsewhere
• New emerging markets (for example, the BRICs) and shifting competition bases
• Dealing with natural disasters, the effects of climate change and the awareness
of the need for sustainable development
Too many people, too many • As a result of these
challenges, the role of
cultures international managers
has widened
considerably. Their
responsibilities may
cover entire regions and
they need the skills to
adapt quickly to new
challenges and operate
effectively in several
different cultures.
• It is the norm, rather
than the exception, to
find companies with
people coming from
different cultures
Changing role of leaders
• The challenges faced by businesses have demanded increasing
reliance on strategic thinking, adaptability to fast- changing
situations and the ability to interact with their counterparts in other
cultures.
• ‘Leadership is no longer a solo act. The concept of leadership is
radically changing and the challenges that leaders are facing may well
be beyond their individual capabilities’ (Levin, A. (2007) ‘The Future of Leadership:
Where Do We Go from Here?’)
Action-centered leadership

• Action Centered Leadership (ACL, or the "Three Circles Model") is a

popular and influential tool that was first published in 1973 by
leadership expert, John Adair.

• It highlights the core actions that you must take to lead your team
effectively, rather than the leadership style that you choose. These
actions are grouped into three areas:
Action-centered leadership
• Task: the actions that you take to
achieve a goal.
• Team: your actions at the group level,
to encourage effective teamwork and
group cohesion.
• Individual: actions that address each
team member's unique needs.
Situational Leadership
• Adair’s concept of Action- Centered Leadership supports the current
emphasis on situational leadership, that is, the need to re- define the
priority of the key attributes of leaders, as the global situation is
frequently subject to change.
The search for the International Manager
• The ‘global’ manager can be seen as someone who pursues a
‘borderless career’ and whose corporate identity may even override
that of his or her country of origin.
• Heller described the requirements of an international manager which
still hold good today as follows.
The International Manager

• The stamina of an Olympic runner

• The mental agility of an Einstein
• The detachment of a judge
• The tact of a diplomat
• The perseverance of an Egyptian pyramid builder

Requirements of an international manager (Heller, 1980: 48)

Other criteria for selecting global managers:
• conflict resolution skills;
• social orientation;
• leadership style;
• flexibility and open- mindedness;
• effective communication style;
• the ability to cope with stress;
• interest in and willingness to try new things and ideas.

Tung, R. (1998) Selection and Training of Personnel for Overseas Assignments (Cambridge MA: Bullinger).
Other criteria for selecting global managers:
• conflict resolution skills;
• social orientation;
• leadership style;
• flexibility and open- mindedness;
• effective communication style;
• the ability to cope with stress;
• interest in and willingness to try new things and ideas.

Tung, R. (1998) Selection and Training of Personnel for Overseas Assignments (Cambridge MA: Bullinger).
More soft skills needed for global managers:
• cultural sensitivity;
• linguistic skills;
• the ability to manage ethical and cultural differences;
• resilience;
• adaptability;
• the ability to manage the work/family life balance;
• building, leading and sustaining multinational teams.

A Handbook of Human Resource Management Practice (Armstrong, 2006):

Leadership styles
Leadership styles
• Authoritarian style: the manager holds all the power, including policy
and decision making. All action within the organization emanates
from the manager.
• Democratic style: the emphasis is on the group as a whole, where
members should participate in policy and decision making. The
leadership functions are shared within the group, with the leader
being more part of the team.
• Laissez- faire style: here the manager tends to be more of an expert
observer who stands back and allows members a high degree of
freedom to act, while exercising a supportive and guidance role as
required.
Group Cultures
• Linear- active: task- oriented, highly organized planning, do one thing
at a time, monochronic (examples: Anglo-Saxon, Germanic and
Scandinavian cultures);
• Multi- active: people- oriented, emphasis on spoken word, flexible
(examples: Southern Europeans and Arabs);
• Reactive: introverted, good listener, respect for status, age and
authority (examples: Japanese, Chinese and South Korean cultures).
Types of Managers based on cultures
• Linear- active managers: managers who demonstrate and value high
technical competence, emphasis on factual detail, logic before
emotion, focus on immediate achievement and results;
• Multi- active managers: managers who are more outgoing, flexible
and able to deal with frequent change (essentially polychronic), who
use their personality to inspire people;
• Reactive managers: managers who possess good interpersonal skills
and are exponents of the ‘listening culture’, who are respected for the
positive and harmonious atmosphere they bring to multinational
teams.
Balance of Power
This balance will vary between cultures with
regard to whether:
1. authority is vested in the leader or the
group;
2. the emphasis is on the structure and status
of the hierarchy;
3. women have equal opportunities in society
to become leaders or whether there is a
‘glass ceiling’ to impede their career
progression.

https://www.weforum.org/agenda/2019/10/philippines-women-work/
Cross- cultural implications of leadership
The balance of power in organizations between individuals and the
team varies between different cultures in the following main areas:
• Is authority vested in the leader or the group?
• Is the leader a facilitator or a supremo?
• Is the leader a coach?
• Is there an emphasis on hierarchy?
• Are age and seniority important or is status based on qualifications?
• What is the position of women in terms of opportunities and acceptance?
Summary
1. There are a range of challenges facing 21st century leaders.
2. There is no one best form of leadership style as there are many
variables.
3. It is evident from the substantial research available that culture has
an important effect on leadership styles.
4. In the increasingly globalized world, those selected as the potential
leaders in business need to have special competencies and skills to
be effective across cultural borders.
Summary
5. Different styles of leadership are appropriate in different cultures,
and misunderstandings and even conflict can arise when these
differences are not recognized and accommodated.
6. Research has been undertaken to determine the important criteria
in their recruitment and selection, and to collect data to identify the
practices and values associated with different cultural leadership
styles.
7. Global leadership training has been widely developed to increase
the pool of talent available for recruitment and selection of the
global business leaders of the future.
Enabling Assessment

1. Make your own Leadership

Pizza
2. Identify your 8 qualities
based on the 21st century
skills
3. Rate your qualities and
explain why you rated
yourself that way