Premium Essay

Leadership and Cultural Differences


Submitted By talade2848
Words 21951
Pages 88
MANAGERIAL LEADERSHIP AND CULTURAL DIFFERENCES OF EASTERN EUROPEAN ECONOMIES Darryl J, Mitry and Thomas Bradley National University School of Business and Technology

Key Factors:

~ Global Business, Colliding cultures & Changing Economies ~With the accession of the 21st Century, the developing globalization of business and other expanding pluralistic organizations we need to reconsider the topic of managerial leadership within a much larger perspective than has been the usual practice. Therefore, we offer some observations from empirical research and suggest theoretical directions. We review the subject as it relates to the challenges of transnational business and more specifically with reference to business operations in the emerging and transforming economies of Eastern Europe such as the newly independent regions of the former Soviet Union (FSU).
The observed “globalization” of business is the precursor to the growing interdependency of peoples around the world; the development of a “Global Community.” This appears to be an inescapable and major event that is contributing to the dissolution of boundaries between customary disciplines of knowledge, information, technology, countries and peoples around the world. Associated with this phenomenon is an intensifying need to provide a strategic global approach in management education.(Mitry & Thomas, 2000)

~ In the new era of globalization, the traditional approaches with their cross-cultural impotence are too narrowly focused to provide adequate direction for management education, training and practice (Yanouzas and Boukis, 1993).

~The traditional approaches have Western culture as their underlying precept and the previous research has been largely conducted in the context of American business settings (Adler,

Similar Documents

Premium Essay

Leadership in Global Organizations LEADERSHIP IN GLOBAL ORGANIZATIONS INTRODUCTION In Apple’s offices, where are located at Cupertino, California, IT engineers finished the design of the new iPhone. Then the project would be sent to several Japanese companies and ordered sophisticated core components, such as sensors, blue modules, and chips, for the new product. At the same time, depending on the new design, Apple’s partner at Korea also started producing components of screen and battery. After that, these components from Japan and Korea would come to the South of China. At there, each IPhone would be assembled and leave the factory, and then transported around the world. The production of iPhone will be a good example showing how the global progress connects people from all around the world. Indeed, “Globalization” is closely connected with our life, and it has changed our world from economic layout to personal life. Just like the case of IPhone, by globalization, companies can collaborate with each other and effectively organize the resource, so that the advantages can be maximized and costs can be reduced. Moreover, globalization also means more extensive market. Nowadays, we can enjoy hamburgers of McDonald’s no matter in which country we are; people also can easily find imported goods everywhere. Expanding business into foreign market has become a trend for more companies. However, global progress also brings some big challenges for us. With the collaboration of economics, various cultural elements...

Words: 5979 - Pages: 24

Premium Essay

International Dimensions of Organizational Behavior Review Questions

...experiences four stages, which are domestic phase, multi-domestic phase, multinational phase, and global phase. In domestic phase, corporations in one country usually neglect the need to decrease inconvenience aroused by cultural diversity, which may makes it difficult to broaden their business or win market share in other countries with different cultural contexts. In multi-domestic phase, firms begin to cater to the needs of each market segment with different cultural backgrounds since they realize that cultural diversity is a huge challenge in business expansion. Multinational phase witnesses the expansion of global market, where a large majority of multinational firms providing identical products emerge. Thus, the need to differentiate subtle cultural differences is weakened since cost control becomes an effective way to gain profits. In global phase, cultural difference is again emphasized. The way to quickly respond to customers’ needs in any market segment in a cost-efficient production mode dominates, which makes the ability to handle multicultural interaction essential for multinational firms. 2. Identify and describe Hofstede's dimensions of cultural differences. According to Hofstede, the five important dimensions of cultural differences include individualism/collectivism, power distance, uncertainty avoidance, career success/quality of life, and Confucian dynamism. Individualism, influencing individuals through external moral bounds, is contrary...

Words: 1884 - Pages: 8

Premium Essay

Cultural Differences

...MSc Management Cross-cultural Management module Cross Cultural Study of China and America Name of Student Name of Instructor Dated: Table of Contents S. No. | Topic | Page No. | Cross Cultural Study of China and America | | 1- | Introduction | 3 | 2- | Chinese Culture | 3 | 3- | Leadership styles and skills of China | 4 | 4- | Motivating others | 4 | 5- | Trust Builder | 5 | 6- | Talent retention | 5 | 7- | High Performance team | 5 | 8- | Management Style of China | 5 | 9- | The Guanxi | 6 | 10- | Individualism and collectivism | 6 | 11 | America’s Culture | 6 | 12 | Leadership Styles in America | 7 | 13 | Directive leadership | 7 | 14 | Participative leadership | 7 | 15 | Empowering leadership | 8 | 16 | Charismatic leadership | 8 | 17 | Management Styles of America | 8 | 18 | Ethical issues in cross cultural of China and America | 8 | 19 | Compare and contrast between China and USA | 9 | 20 | Conclusion | 11 | 21 | References | 12 | Introduction: This paper consists of cross cultural study of two developed countries named USA and China. These countries are well developed and exist in the major countries of the world. Both have an entire different culture in reference of behavior, leadership styles and management. China is the part of eastern countries and USA is a western country, both have entirely different environment and too far from each other. There are many roles that are involved in any organization...

Words: 3090 - Pages: 13

Premium Essay

Link Between Emotional Intelligence and Cross-Cultural Leadership

...Reilly, A.H. and Karounos, T.J. (2009), “Exploring the Link between Emotional Intelligence and Cross-Cultural Leadership Effectiveness”, Journal of International Business and Cultural Studies, Vol. 1, Feb. 2009, pp. 1 – 13. Introduction Along with the globalization of business, many corporations are facing the challenge of operating in a different culture. The writers made a connection between emotional intelligence and cross-cultural leadership effectiveness to deal with this situation, this article also presented some significant results and implications which were greatly helpful for our company. This report is aimed at review the article and pick out something useful to raise staff awareness of cross-cultural issues. In this paper, I will summarize the key point of the article and evaluate some correlative information which can be applied to our company, then there will be a conclusion at the end of the report and two related references will also be given as well. Summary Reilly and Karounos (2009) exhibited Goleman’s research to identify the connection between emotional intelligence and leadership ability. Goleman (1998) claimed that the importance of emotional intelligence on the overall leaderships in organization is twice greater than the other two personal capabilities, technical skills and cognitive skill. The article showed the five components of emotional intelligence and their respective characteristics listed by Goleman (1998), which are exhibited on a...

Words: 1039 - Pages: 5

Premium Essay

Culture, Leadership

...Management Consultants May be used for personal purporses only or by libraries associated to network. Culture, Leadership; I Organizations E d W By Robert J. House University of Pennsykmia Paul J. Hanges University of M-md Mansour Javidan University of Calgary Peter W. Dorfman New Mexico State University Vipin Gupta Grand Valley State University SAGE Publications Publisher InternationalEducational and Professional Thousand Oaks London New Delhi G CONTENTS Foreword Harry C. Triandis Preface Robert J. House PART I: Introduction Robert J. House 1. Illustrative Examples of GLOBE Findings Robert J. House Increased Globalization of Business The Increased Importance of Sensitivity to Cultural Differences Differing Views and Conceptualizations of Leadership An Illustration of Differences and Cultural Practices Differences in Leadership Practices Plan of This Book xv xxi 1 3 4 2. Overview of GLOBE Robert J. House Mansour Javidan Major Questions Concerning the Effects of Cultures on the Practice of Leadership The Need for Cross-Cultural Leadership Theory and Research The GLOBE Research Program Leader Behavior and Attributes Qualitative Research Construct Definitions of Leadership and Culture GLOBE Operational Definition of Culture The GLOBE Conceptual Model The Integrated Theory Two Fundamental Cross-Cultural Issues The GLOBE Questionnaire Scales Phase 2 Hypotheses Strengths of the GLOBE Research Design Contributions Appendix:...

Words: 1771 - Pages: 8

Premium Essay

Relevance of Leadership Theories

...Abstract It’s not only Western enterprises that expand globally, enterprises from emerging countries are doing the same more and more organizations are expanding from a local to a global market space. Especially India is establishing itself as economic center and is rapidly becoming the new global economic superpowers. An understanding of local culture and how it affect Western leadership practices and behavior is key in order to become a successful leader, as Western enterprises continues to establish themselves into these emerging markets. In the very same way as enterprises from emerging markets need to understand the local culture when they establish themselves in Western countries. The aim of this report is to investigate what cultural factors/dimension that affect leadership in the context of multi countries as well as to investigate behavioral styles and practices leaders operating in India and see how Western leadership theories are relevant to these set up. Introduction In today’s world we have emerged from the industrial age, into the information age where knowledge is our most valuable assets. The rapid technological development that have enabled this information age is also affecting the pace at which change is happening in the world. The pace of change is rapidly increasing and in order for organizations to be successful they need to keep up with this pace (Schwarz & Brock, 1998). In a recent business leader review with more than 400 senior executives...

Words: 3972 - Pages: 16

Premium Essay

Culture and Ethics in Business Learning Journal

...CULTURE AND ETHICS IN BUSINESS LEARNING JOURNAL CHALLENGES OF MANAGER’S CULTURAL DIFFERENCES FOR THE INTERNATIONAL BUSINESS ENVIRONMENT Introduction Business today has seen a high surge in globalization. This increase of international business all over has led to a number of ties and relations among people from different culture and nationalities. Managers who still haven’t adapted to the new age managerial skills and are still following the conventional route have found themselves extremely ineffective in the global platform. A need of global managers who understand multi-cultural competencies has arrived and most scholars debate that the working style, values and behaviour of a manager are directly a persona of their national culture. Thus in order to be competitive in this global market, the traditional approach by the managers must transcend to a global one. A global manager is one who has the ability to manage the complexities in a business which is conducted or laid upon multi-cultural diversities. A global manager has many challenges when managing people from different cultures; this includes the people from both High context society as well as low context society. Challenges Lack of communication: When a manager is working with his team members who have different native tongue, it’s most possible at time that the information flow is not constant. Adding to the woes are the multitasking employees and talking to employees over...

Words: 2183 - Pages: 9

Premium Essay

The Role of National Culture on Leadership

...Executive Summary The aim for this thesis is to answer the problem statement: How do national cultures influence leadership styles? To give an answer to this question, this thesis is divided into three parts: leadership, national culture and the connection between them. The conclusion of this thesis is based on analytical and exploratory research. The first part, on leadership, focuses on mainly two types of leadership: transactional and transformational leadership. Transactional leadership is mainly based on the transaction between leaders and their followers. Bass described four components of transactional leadership: Contingent reward, Active management by exception, Passive management by exception and Laissez-Faire leadership (1997). Transformational leadership focuses mainly on inspiring and stimulating the followers. Transformational leadership contains also four components: Idealized influence (Charisma), Inspirational motivation, Intellectual stimulation and Individualized consideration. The second part focuses on different studies on national culture: Hofstede (1983), Schwartz (1990) and Inglehart (1997). Each study has different values and dimensions, both all three studies show some similarities. The first similar dimension contains: Hofstede’s Power distance, Schwartz’ Hierarchy versus Egalitarianism and Inglehart’s Survival and measures the degree to which the people in a national culture accept and expect the unequal distribution of power. The second similar dimension...

Words: 8555 - Pages: 35

Premium Essay


...Abstract Since its inception in the early 1990s, the Global Leadership and Organizational Behavior Effectiveness (GLOBE) project has investigated the complex relationship between societal culture and organizational behavior. The focus of this paper is on leadership, specifically what we know and have learned from the GLOBE project so far. Among other findings, we demonstrate that national culture indirectly influences leadership behaviors through the leadership expectations of societies. In other words, executives tend to lead in a manner more or less consistent with the leadership prototypes endorsed within their particular culture. In turn, leaders who behave according to expectations are most effective. We also found that some leadership behaviors are universally effective such as charismatic/value-based leadership; others are much more culturally sensitive such as participative leadership. Finally, we identified truly superior (and also truly inferior) CEOs by the degree to which their behaviors exceed (or fail to meet) their society's expectations. All in all, understanding national culture gives us a heads-up as to which kinds of leadership will likely be enacted and effective in each society. We believe that the GLOBE journey has helped us understand the complex, tricky, and fascinating relationships among societal culture, organizational behavior, and leadership processes. This paper is a celebration of twenty years of collaborative work conducted by more than 200 researchers...

Words: 12081 - Pages: 49

Premium Essay

Effectiveness of Cross-Cultural Training

...THE EFFECTIVENESS OF CROSS-CULTURAL TRAINING FOR EXECUTIVES IN OIL & GAS COMPANIES WITHIN THE KLANG VALLEY A Master’s Project submitted in partial fulfilment Of the requirements for the degree of Master of Human Resource Management The Effectiveness of Cross-Cultural Training for Executives in Oil & Gas Companies within the Klang Valley ABSTRACT Cross-cultural interactions are rapidly increasing. Globalisation and cultural diverse communities are lending themselves to daily intercultural exchanges. With greater diversity, we require greater open-mindedness, tolerance and sensitivity. Those in direct contact with culturally different members are in greater need of such skills, and often require training to become more cross-culturally sensitive. Cross-cultural training program for individual going abroad, address such issues and prepare participants to work and live overseas. Cultural conflicts affect the efficiency of the employees’ performance at workplaces and it is believed that employees from different cultural backgrounds will have to improve their communication skills. An intercultural training programme is needed in order to prepare multicultural employees for surprises that could arise in complex cultural situations without being frustrated, stressed, and puzzled. TABLE OF CONTENTS TITLE PAGE PAGE ABSTRACT ii ABSTRAK ...

Words: 22094 - Pages: 89

Premium Essay

Organizational Behaviour

...International Journal of Cross Cultural Management A Cross Cultural Perspective on Perceived Leadership Effectiveness Jun Yan and James G. Jerry Hunt International Journal of Cross Cultural Management 2005; 5; 49 DOI: 10.1177/1470595805050824 The online version of this article can be found at: Published by: Additional services and information for International Journal of Cross Cultural Management can be found at: Email Alerts: Subscriptions: Reprints: Permissions: Citations (this article cites 6 articles hosted on the SAGE Journals Online and HighWire Press platforms): Downloaded from at N E Wales Inst of H E on February 28, 2007 © 2005 SAGE Publications. All rights reserved. Not for commercial use or unauthorized distribution. CCM International Journal of 2005 Vol 5(1): 49–66 Cross Cultural Management A Cross Cultural Perspective on Perceived Leadership Effectiveness Jun Yan California State University, USA James G. (Jerry) Hunt Institute for Leadership Research, Texas Tech University, USA ABSTRACT We propose a theoretical model to explain how societal/cultural settings may influence the leadership perception processes of followers...

Words: 9764 - Pages: 40

Premium Essay

Riordan Benchmarking

...Phoenix MMPBL 560 Managing in a Cross-Cultural Environment November 9, 2009 Managing across cultures is no easy task for any organization regardless of its economies of scale or long standing reputation in the market; the challenges are many, including coping with the flux of change, managing diverse groups of employees, communicating, and negotiating agreements with host countries. This paper illustrates how Johnson and Johnson, Allstate, Starbucks, Bank of America, Coca-Cola, Shell, Whataburger, and Sony USA address their cultural diversity. Thus, the authors of this paper analyze, evaluate, and assess the various successful best practices of these organizations to help Riordan Manufacturing’s situation. Riordan Manufacturing’s decision to open a new production facility in China has created some challenges involving the scarcity of Chinese skilled employees. Whereas leadership attempts alternative solutions to synergize the company’s strategies to address the situation, Riordan recognizes that the integration of a diverse workforce has the potential to alter the company’s performance (University of Phoenix, 2009). Accordingly, in analyzing cultural synergy strategies to help mitigate undesirable outcomes takes extra consideration, yet it is a necessary task (Hodgetts, Luthans, Doh, 2005). When reviewing Johnson and Johnson, it is evident that the company struggled with managing diversity and cultural differences. However, Johnson and Johnson stepped up...

Words: 4635 - Pages: 19

Premium Essay


...Survey of leadership styles in different cultures Gholamreza Taleghani1* , Davood Salmani2 , Ali Taatian3 1. Faculty of managemenet, Uniersity of Tehran 2. Faculty of managemenet, Uniersity of Tehran 3. Master of Arts Abstract: Leadership is in fact a process of influencing followers. Characteristics of leadership are functions of time and situation and differ in different cultures and countries. Managers of international organizations should obtain enough knowledge of these cultural characteristics and differences and should have the utmost versatility while executing their leadership tasks. In this paper we have conducted a survey of the relation between cultures and styles of leadership in different countries. At first characteristics of leadership are discussed in work oriented leadership paradigm and management regimes, in a number of different regions, including China, Japan, U.S.A, Europe, and Arab countries. We also discuss about cross-cultural leadership concept and its challenges. At the end, a comparative analysis is made over the various leadership styles. Keywords: Leadership styles, cultural differences, conceptual leadership model, cross-cultural leadership * . Corresponding Author , Tel: 09121090719 Email: 92 Iranian Journal of Management Studies Introduction: Leadership is defined as the process of having dominance on group activities in order to realize the objectives. To execute the leadership task, managers...

Words: 7327 - Pages: 30

Premium Essay

Cultural Influence on Organizational Practice

...1. EXECUUITIVE SUMMARY Cultural influences on organizational cultures and practices have become a very important research topic in the field of management and organization since the last decades of the 20th century. National culture has been seen as one of the most influential situational factors, which determine organizational phenomena. More recently, after the collapse of socialism, the role of national culture in organizational practices in countries that are in transition is becoming a widely recognized and studied topic. However, empirical studies about cultural influences on organizational subcultures and leadership styles in Ethiopian organizations are not very frequent in contemporary literature. In fact, there are almost no relevant attempts to examine these phenomena. Nevertheless, after democratic political changes in May 1991, we can observe a growing interest in understanding national culture and leadership practices in Ethiopian organizations, as well as in the whole Ethiopian society. Therefore, the main purpose of this assignment paper is to investigate the influence of national culture on organizational culture and practices (subcultures and leadership styles) in Ethiopian organizations. Widely known Geert Hofstede’s value/belief theory of culture (Hofstede, 2001) with its theoretical and methodological premises has been used as a starting point of this assignment.   1 2. 2.1. LITRATURE REVIEW DEFINITION OF CULTURE We must first define...

Words: 5425 - Pages: 22

Free Essay

Attitudes Towards Gender and Leadership Effectiveness

...Attitudes towards Gender and Leadership Effectiveness By: Claire Duthil Attitudes towards Gender and Leadership Effectiveness Abstract This paper seeks to review and discuss the roles of gender in leadership and how they are effective.  As shown from previous overviews, the evidence for sex differences in leadership behavior is still mixed, yet it is clear that these sex differences have not vanished.  Although we are in the 21st century, women face hardship every day in the workplace as leaders.   It is argued that sex differences in leadership styles is one of the main reasons in which male and female leaders work with different styles. Organizational factors like sex-composition of the immediate working context and hierarchical level are important moderators of leadership styles.  For example, women are more likely than men to lead in a style that is effective under contemporary conditions (Eagly, Carli, 2003).  To contrast these claims, Veccho claims that "women have some disadvantages in typical leadership style but suffer some disadvantages from prejudicial evaluations of their competence as leaders, especially in masculine organizational contexts" (Veccho, 2002).  All in all women are rising into leadership roles at all levels. Problem Statement The society has always been in a need of effective management and efficient leaders on top. The roles of leaders determine the course and successfulness of the processes in all walks of life. In times...

Words: 3105 - Pages: 13