roles of strategic leaders
DESCRIPTION
TRANSCRIPT
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Visionary
Chief Entrepreneur & Strategist Capabilities
Builder
Resource Acquirer & Allocator
Culture Builder
Chief Administrator
& Strategy Implementer
Process Integrator
Coach
Crisis Solver
Taskmaster
Spokesperson
Negotiator
Motivator
Arbitrator
Consensus Builder
PolicymakerPolicy
Enforcer
Mentor
Head Cheerleader
NUMEROUS ROLES OF STRATEGIC LEADERS
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LEADERSHIP ROLES OF THE STRATEGY IMPLEMENTER
1. Stay on top of what’s happening
2. Promote a culture energizing organization to accomplish strategy
3. Keep firm responsive to changing conditions
4. Exercise ethics leadership
5. Take corrective actions to improve overall strategic performance
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LEADER’S ROLE IN DEVELOPING NEW CAPABILITIES
• Responding to changes requires top management intervention to establish new• Organizational capabilities
• Resource strengths and competencies
• Senior managers must lead the effort because• Competencies reside in combined efforts, requiring
integration
• enforce necessary networking and cooperation
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ACTIONS DEMONSTRATING CORPORATECITIZENSHIP AND SOCIAL RESPONSIBILITY
• Having “family friendly” employment practices• Operating a safe workplace• Taking special pains to protect the environment• Taking an active role in community affairs• Interacting with community officials to minimize
impact of • Layoffs or• Hiring large numbers of new employees
• Being a generous supporter of charitable causes and projects that benefit society
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LEAD THE PROCESS OF MAKING CORRECTIVE ADJUSTMENTS
• Requires both
• Reactive adjustments
• Proactive adjustments
• Involves
• Reshaping long-term direction, objectives, and strategy to unfolding events
• Promoting initiatives to align internal activities and behavior with strategy
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LEADERSHIP FOUNDATIONS
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LEADERSHIP FOUNDATIONS
• Leadership Behaviors and Styles:– Authoritarian: use of work-centered behavior designed
to ensure task accomplishment.
– Paternalistic: use of work-centered behavior coupled with protective employee centered concern
– Participative: use of both work or task centered and people centered approaches to leading subordinates.
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LEADERSHIP FOUNDATIONS
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LEADERSHIP FOUNDATIONS
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LEADERSHIP FOUNDATIONS
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LEADERSHIP FOUNDATIONS
• Theories X, Y and Z (philosophical background):
– Theory X: A manager who believes that people are basically lazy and that coercion and threats of punishment often are necessary to get them to work.
– Theory Y: A manager who believes that under the right conditions people not only will work hard but will seek increased responsibility and challenge.
– Theory Z: A manager who believes that workers seek opportunities to participate in management and are motivated by teamwork and responsibility sharing.
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LEADERSHIP IN THE INTERNATIONAL CONTEXT
• How leaders in other countries attempt to direct or influence their subordinates.
• International approaches to leadership
• Research shows there are both similarities and differences. Most international research has focused upon Europe, East Asia, the Middle East, and developing countries such as India, Peru, Chile, and Argentina.
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LEADERSHIP IN THE INTERNATIONAL CONTEXT
European managers tend to use a participative approach. Researchers investigated four areas relevant to leadership:
1. Capacity for leadership and initiative (Theory X vs. Theory Y)
2. Sharing information and objectives: general vs. detailed, completed instructions for subordinates.
3. Participation: leadership support for participative leadership
4. Internal control: leader control through external vs. internal means
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THE CULTURAL CLUSTER APPROACHAn approach to understanding communication based on meaningful clusters of countries that share similar cultural values
• Clusters of countries with core sets of values
• Based on previous research
• Based on patterns of employees’ attitudes toward work• Employees were asked questions about…• Importance of various work goals• Satisfaction of needs through work• Organizational factors & management issues• Nature of roles & interpersonal relationships
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
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COUNTRY CLUSTERS
Country Clusters: Tendencies and Factor
•Level of development & technological progress •Geographic proximity•Language •Religious values and beliefs•Independents have unique language, religion, and history
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COUNTRY CLUSTERS
Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
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Benefits of Country Clusters
• Understanding broad similarities and differences• Helps simplify cross-cultural differences• Modify management tactics to reflect values
Limitations of Country Clusters•Not all countries represented• Many African and NIS countries missing•Complexity within a cluster• i.e., Harmony in Asia•Complexity within a country• i.e, Diversity in U.S.
RONEN AND SHENKAR’S SYNTHESIZED COUNTRY CLUSTERS
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CULTURE CLUSTERS AND LEADERSHIP EFFECTIVENESS
Important attributes that form a concept of outstanding business leader– Anglo mangers identify performance orientation, an
inspirational style, having a vision, being a team integrator, and being decisive as being the top five attributes
– Nordic managers ranked these same five attributes as most important but not in same order
– Rankings of clusters in the North/West European region were fairly similar
– Substantial differences exist within and between the South/East European countries, countries from Eastern Europe, and Russia and Georgia
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RANKINGS OF LEADERSHIP ATTRIBUTES
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DIFFERENCES WITHIN A CLUSTER: DEFINING ‘HARMONY’ DIFFERENTLY IN JAPAN, CHINA, AND
KOREA
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STRATEGIC PREDISPOSITIONS
• Ethnocentric predisposition• A nationalistic philosophy of management
whereby the values and interests of the parent company guide strategic decisions.
Philosophies of Management
Ethnocentric predispositionEthnocentric
predisposition
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STRATEGIC PREDISPOSITIONS
• Polycentric predisposition• A philosophy of management
whereby strategic decisions are tailored to suit the cultures of the countries where the MNC operates.
Philosophies of Management
Ethnocentric predispositionEthnocentric
predisposition
Polycentric predispositionPolycentric
predisposition
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STRATEGIC PREDISPOSITIONS
• Regiocentric predisposition• A philosophy of management
whereby the firm tries to blend its own interests with those of its subsidiaries on a regional basis.
Philosophies of Management
Ethnocentric predispositionEthnocentric
predisposition
Polycentric predispositionPolycentric
predisposition
Regiocentric predispositionRegiocentric
predisposition
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STRATEGIC PREDISPOSITIONS
• Geocentric predisposition• A philosophy of management
whereby the company tries to integrate a global systems approach to decision making.
Philosophies of Management
Ethnocentric predispositionEthnocentric
predisposition
Polycentric predispositionPolycentric
predisposition
Regiocentric predispositionRegiocentric
predisposition
Geocentric predispositionGeocentric
predisposition
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ORIENTATION OF AN MNC
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ORIENTATION OF AN MNC
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RECENT FINDINGS
• One of the keys to successful global leadership is knowing what style and behavior works best in a given culture and adapting appropriately
– In affective cultures, such as the United States, leaders tend to exhibit their emotions
– In neutral cultures, such as Japan and China, leaders do not tend to show their emotions
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MEETING THE CHALLENGE
• Many MNCs are committed to a globalization imperative• A belief that one worldwide approach to doing business is
the key to both efficiency and effectiveness• Many factors are facilitating the need to develop unique
strategies for different cultures1. The diversity of worldwide industry standards2. A continual demand by local customers for
differentiated products, as in the case of consumer goods that must meet local tastes
3. The importance of being an insider, as in the case of customers who prefer to “buy local”
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GLOBALIZATION VS. NATIONAL RESPONSIVENESS
• Advertising (as an example)• Germans• Want advertising that is factual and rational• Typical German spot features the standard family of two
parents, two children, and grandmother• French• Avoid reasoning or logic• Advertising is predominantly emotional, dramatic, and
symbolic• Spots are viewed as cultural events—art for the sake of
money—and are reviewed as if they were literature or films
• British• Value laughter above all else• Typical broad, self-deprecating British commercial
amuses by mocking both the advertiser and consumer
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GLOBALIZATION VS. NATIONAL RESPONSIVENESS
• Adding value to the marketing approach• Tailor the advertising message to the particular culture• Stay abreast of local market conditions; don’t assume all
markets are basically the same• Know the strengths and weaknesses of MNC subsidiaries;
provide them with assistance needed in addressing local demands
• Give the subsidiary more autonomy; let it respond to changes in local demands
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CROSS-CULTURAL DIFFERENCES AND SIMILARITIES
• Parochialism• Tendency to view the world through one’s own eyes and
perspectives
• Simplification• Process of exhibiting the same orientation toward different
cultural groups
andParochialism Simplification
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Orientations Range of Variations
CULTURAL VARIATIONS
Six Basic Cultural Variations
What is the nature of people? Good (changeable/unchangeable A mixture of good and evil*
Evil (changeable/unchangeableWhat is the person’s Dominant* relationship to nature? In harmony with nature
SubjugationWhat is the person’s relationship Lineal (hierarchic)
to other people? Collateral (collectivist)Individualist*
What is the modality of human activity? Doing*Being and becoming
Being
Adapted from Table 5.2: Six Basic Cultural Variations
Note: *Indicates the dominant U.S. orientation.Source: Adapted from the work of Florence Rockwood Kluckhohn and Fred L. Stodtbeck.
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Orientations Range of Variations
CULTURAL VARIATIONS
Six Basic Cultural Variations
What is the temporal focus of Future*human activity? PresentPast
What is the conception of space? Private*Mixed
Public
Adapted from Table 5.2: Six Basic Cultural Variations
Note: *Indicates the dominant U.S. orientation.Source: Adapted from the work of Florence Rockwood Kluckhohn and Fred L. Stodtbeck.
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CROSS-CULTURAL DIFFERENCES AND SIMILARITIES
• Similarities across cultures• It is not possible to do business the same way in every
global location• Procedures and strategies that work well at home cannot
be adopted overseas without modification• But, some similarities have been found• Russia and the U.S. (for example)
• Traditional management• Communication• Human resources• Networking activities
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CROSS-CULTURAL DIFFERENCES AND SIMILARITIES
• Differences across cultures• Far more differences than similarities are found in cross-
cultural research• Wages, compensation, pay equity, maternity leave• Importance of criteria used in evaluation of employees
Netherlands France Germany Britain
RealityAnalysisHelicopterLeadershipImagination
ImaginationAnalysisLeadershipHelicopterReality
LeadershipAnalysisRealityImaginationHelicopter
HelicopterImaginationRealityAnalysisLeadership
www.StudsPlanet.comAdapted from Table 5.3: Cultural Clusters in the Pacific Rim, EU, and United States
CULTURAL CLUSTERS
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Country Reasons for lack of success
CULTURAL VARIATIONS
Problems with U.S. Employee Stock Plans in Select Countries
Belgium Problematic. Some stock plans conflict with a government- imposed wage freeze.
Adapted from Table 5.4: Problems with U.S. Employee Stock Plans in Select Countries
Source: Adapted from information found in Tara Parker-Pope, “Culture Clash,” WallStreet Journal, April 12, 1995, p. R7.
Brazil Impossible. Foreign-exchange controls prohibit out-of-country stock investment
Britain Easy. But sometimes labor unions can get in the way.
Eastern Europe Forget it. Even if you get government permission, chances are you talked to the wrong bureaucrat.
Germany Can I get that in deutsche marks? U.S. plans suffer when the dollar is weak.
Israel Difficult. Exchange controls forced National Semiconductor to a third-party system, but the plan has only scant participation.
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Country Reasons for lack of success
CULTURAL VARIATIONS
Table 5-4Problems with U.S. Employee Stock Plans in Select Countries
Luxembourg Tax haven. Great place to set up a trust to administer stock plans.
Adapted from Table 5.4: Problems with U.S. Employee Stock Plans in Select Countries
Mexico May regret it. Labor laws can force a one-time stock grant into an annual event.
Netherlands No thanks. Employees may like the stock options, but they will not appreciate a hefty tax bill up front.
Philippines Time-consuming. Requires government approval and lots of worker education.
Source: Adapted from information found in Tara Parker-Pope, “Culture Clash,” WallStreet Journal, April 12, 1995, p. R7.
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INTERNATIONAL HUMAN RESOURCE MANAGEMENT
Figure 5–2 A Partially Completed Contingency Matrix for International Human Resource Management
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INTERNATIONAL HUMAN RESOURCE MANAGEMENT
Figure 5–2 A Partially Completed Contingency Matrix for International Human Resource Management
Source: Fred Luthans, Paul A. Marsnik, and Kyle W. Luthans, “A Contingency Matrix Approach to IHRM,” Human ResourceManagement Journal, © 1997. Reprinted with permission of John Wiley & Sons, Inc.