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Roles of strategic leaders

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  • 1. 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 Policymaker Policy Enforcer Mentor Head Cheerleader NUMEROUS ROLES OF STRATEGIC LEADERS www.StudsPlanet.com
  • 2. 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 www.StudsPlanet.com
  • 3. 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 www.StudsPlanet.com
  • 4. ACTIONS DEMONSTRATING CORPORATE CITIZENSHIP 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 www.StudsPlanet.com
  • 5. 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 www.StudsPlanet.com
  • 6. www.StudsPlanet.com LEADERSHIP FOUNDATIONS
  • 7. www.StudsPlanet.com 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.
  • 8. www.StudsPlanet.com LEADERSHIP FOUNDATIONS
  • 9. www.StudsPlanet.com LEADERSHIP FOUNDATIONS
  • 10. www.StudsPlanet.com LEADERSHIP FOUNDATIONS
  • 11. www.StudsPlanet.com 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.
  • 12. www.StudsPlanet.com 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.
  • 13. www.StudsPlanet.com 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
  • 14. THE CULTURAL CLUSTER APPROACH An 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 www.StudsPlanet.comCopyright 2010 Pearson Education, Inc. publishing as Prentice Hall
  • 15. COUNTRY CLUSTERS www.StudsPlanet.com Country Clusters: Tendencies and Factor •Level of development & technological progress •Geographic proximity •Language •Religious values and beliefs •Independents have unique language, religion, and history
  • 16. COUNTRY CLUSTERS www.StudsPlanet.comCopyright 2010 Pearson Education, Inc. publishing as Prentice Hall
  • 17. Benefits of Country Clusters • Understanding broad similarities and differences • Helps simplify cross-cultural differences • Modify management tactics to reflect values www.StudsPlanet.com 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.
  • 18. RONEN AND SHENKAR’S SYNTHESIZED COUNTRY CLUSTERS www.StudsPlanet.com
  • 19. www.StudsPlanet.com 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
  • 20. www.StudsPlanet.com RANKINGS OF LEADERSHIP ATTRIBUTES
  • 21. DIFFERENCES WITHIN A CLUSTER: DEFINING ‘HARMONY’ DIFFERENTLY IN JAPAN, CHINA, AND KOREA www.StudsPlanet.com
  • 22. STRATEGIC PREDISPOSITIONS • Ethnocentric predisposition • A nationalistic philosophy of management whereby the values and interests of the parent company guide strategic decisions. www.StudsPlanet.com Philosophies of Management Ethnocentric predisposition
  • 23. STRATEGIC PREDISPOSITIONS • Polycentric predisposition • A philosophy of management whereby strategic decisions are tailored to suit the cultures of the countries where the MNC operates. www.StudsPlanet.com Philosophies of Management Ethnocentric predisposition Polycentric predisposition
  • 24. 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. www.StudsPlanet.com Philosophies of Management Ethnocentric predisposition Polycentric predisposition Regiocentric predisposition
  • 25. STRATEGIC PREDISPOSITIONS • Geocentric predisposition • A philosophy of management whereby the company tries to integrate a global systems approach to decision making. www.StudsPlanet.com Philosophies of Management Ethnocentric predisposition Polycentric predisposition Regiocentric predisposition Geocentric predisposition
  • 26. ORIENTATION OF AN MNC www.StudsPlanet.com
  • 27. ORIENTATION OF AN MNC www.StudsPlanet.com
  • 28. www.StudsPlanet.com 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
  • 29. 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 cultures 1. The diversity of worldwide industry standards 2. 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‖ www.StudsPlanet.com
  • 30. 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 www.StudsPlanet.com
  • 31. 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 www.StudsPlanet.com
  • 32. 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 www.StudsPlanet.com andParochialism Simplification
  • 33. Orientations Range of Variations CULTURAL VARIATIONS www.StudsPlanet.com Six Basic Cultural Variations What is the nature of people? Good (changeable/unchangeable A mixture of good and evil* Evil (changeable/unchangeable What is the person’s Dominant* relationship to nature? In harmony with nature Subjugation What 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.
  • 34. Orientations Range of Variations CULTURAL VARIATIONS www.StudsPlanet.com Six Basic Cultural Variations What is the temporal focus of Future* human activity? Present Past 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.
  • 35. 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 www.StudsPlanet.com
  • 36. 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 www.StudsPlanet.com Netherlands France Germany Britain Reality Analysis Helicopter Leadership Imagination Imagination Analysis Leadership Helicopter Reality Leadership Analysis Reality Imagination Helicopter Helicopter Imagination Reality Analysis Leadership
  • 37. Adapted from Table 5.3: Cultural Clusters in the Pacific Rim, EU, and United States CULTURAL CLUSTERS www.StudsPlanet.com
  • 38. Country Reasons for lack of success CULTURAL VARIATIONS www.StudsPlanet.com 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,” Wall Street 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.
  • 39. Country Reasons for lack of success CULTURAL VARIATIONS www.StudsPlanet.com Table 5-4 Problems 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,” Wall Street Journal, April 12, 1995, p. R7.
  • 40. INTERNATIONAL HUMAN RESOURCE MANAGEMENT www.StudsPlanet.com Figure 5–2 A Partially Completed Contingency Matrix for International Human Resource Management
  • 41. INTERNATIONAL HUMAN RESOURCE MANAGEMENT www.StudsPlanet.com 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.