Lecture 6 Flashcards
Those who understand how the global business economy operates will survive in today’s competition while those who lag behind will
ultimately be out of the game.
All upper level management positions today require that candidates be adequately exposed to the global business environments through:
Foreign study trips
Foreign language education
Cultural study
International internship
Foreign work experience
A good global leader fulfills
organizational and societal mission
A good leader possesses visions that articulate
long-term economic viability and societal well being
A good leader has the skill to motivate and
inspire employees consistently and effectively.
The efficiency of leadership is conditioned by
the cultural background of a given country
Historically most leadership theories have been developed in
the United States
Consequently, many countries have tried to adapt them to their specific management practice
Adler and Triandis doubt about the efficiency of adapting a US management leadership to
another differing culture
Laedere-
Latin expression for “people on a journey”
Leader-in modern times interpretation:
applies to a person who sets ideas, people, organizations and societies in motion
applies to a person with a vision, courage and influence
A visionary manager in today’s world:
Knows how to create wealth by reducing poverty
Sees volume rather than high profit margin strategy
Non-profit agency or international organizational managers pursues Trade-not-Aid position
Will focus at the bottom of the pyramid by
- eliminating the intermediaries in trade
- Starbucks fair trade coffee is a good example
Two fundamental traits of global leaders
Charismatic Leadership
Visionary Leadership
Charismatic Leadership
Positively perceived in the U.S
Not necessarily viewed positively in Europe due to repressive charismatic leaders in the past (Hitler, Stalin, etc)
The military regimes in developing countries can also be associated with charismatic leadership
Visionary Leadership
Both charismatic and visionary traits of a manager are derived from the national culture in which the leader was brought up
Theories in determining global leadership
McGregor’s Theory (X and Y)
Cultural Contingency
Cultural Leadership Competencies
In McGregor’s Theory X and Y, there are two models of management that can be instrumental in
motivating employees in different cultures
Theory X management which emphasizes
the application of strict control on employees.
Theory Y on the other hand, stresses on the need for
autonomous and loose control of employees in organizations.
Theory Y is practiced mainly in
advanced countries which have achieved higher-order and self-actualization needs.
Cultural Contingency
There are two views on trends of cultural universalism.
One view entertains the conversion of cultures in countries where capitalism emerges. As a result, it is assumed that American culture applies abroad.
There is an assumption that the world follows the American management style (Haire, Ghiselli & Porter, 1963 and Levitt, 1986).
Although the above authors found that more cultural similarities among different countries attribute to the emergence of cultural universalism, they indicate that countries are culturally divided more along ethnic line than industries. This means, although countries are moving into a capitalist system, their management styles are highly influenced by their national cultural background.
In modern times, research indicates that companies which possess leaders with higher emotional intelligence outperform in
income, their competitors at least by 20% (Goleman).
Emotional intelligence according to Goleman, is composed of:
Self-awareness (the ability to understand your mood and its impact on others
Self-regulation (the ability to redirect disruptive impulses and moods)
Motivation (a passion to work for reasons that go beyond money)
Empathy (the ability to understand the psychological make up of others)
Social skills (proficiency in managing relationships and networks)
Traits of extraordinary leadership:
Better at reflecting
Leveraging
Framing
Fail less frequently than ordinary, but learn more from their failures.
Are more risk taking
Why a global leadership shouldn’t be restricted by gender
More nations have been moving away from the traditional men-oriented leadership
More nations believe in meritocracy in business leadership
Countries and companies are moving away from traditional men-based leadership
The Objective of New Leadership in the Business Community
Three Level “bottom line” objectives
Social responsibility
Environmental care
Profit making
Three Level “bottom line” objectives would lead to:
Business management based on sustainability
Long-term business practice
