2. What we propose :
1. Leadership
» Theories X, Y
» Leadership Behaviors and Styles
» Managerial Grid
2. Cross-cultural management issues
» HQ Subsidiary attitudes
» Cultural dimensions : the right message for the
right context
» Differences and similarities
3. Leadership
“The process of influencing people to direct
their efforts toward the achievement of
some particular goal or goals.”
• So far, little effort has been made to
systematically study and compare
leadership approaches.
4. Overview of Leadership Theories
» Great Man theories
» Trait theory
» Situational theory
» Hersey and Blanchard
» Management theories
» Relationship theories
5. Leadership Theories X, Y, Z
1. 'authoritarian
management' style
» the person dislikes
work and will avoid it
» most people must be
forced with the threat
of punishment to work
» the person prefers to
be directed, to avoid
responsibility; is
relatively unambitious
2. 'participative management'
style
» Effort in work
» self-control and
self-direction without external
control or the threat of
punishment
» seek responsibility; high
degree of imagination,
creativity in solving
organizational problems
7. Leadership Behavior and Styles
- Authoritarian leadership
It is the use of work-centered
behavior that is designed to
ensure task accomplishment.
- Parternalistic leadership
It uses work-centered behavior
coupled with protective employee-
centered concern.
- Participative leadership
It is the use of both work centered-
behavior and people-centered
approaches
Authoritarian leader
Subordinate SubordinateSubordinate
Paternalistic leader
Subordinate SubordinateSubordinate
Participative leader
Subordinate SubordinateSubordinate
8. 1. Leadership
» Theories X, Y
» Leadership Behaviors and Styles
» Managerial Grid
2. Cross-cultural management issues
» HQ Subsidiary attitudes
» Cultural dimensions : the right message for the
right context
» Differences and similarities
Cross-cultural management issues
9. HQ Subsidiary attitudes
• Perlmutter (1985):
– proposed certain orientations which help to
develop a company and the establishment of its
international subsidiaries
• Four different dispositions:
– Ethnocentric: values & interests of parent
company guide strategic decisions
– Polycentric: strategic decisions are tailored to suit
cultures of subsidiaries
– Regiocentric: company blends its own interests
with those of regional subsidiaries
– Geocentric: integration of global approach to
include a little bit of everything
10. Graphical Overview of Approaches
Source: C. Voynnet Fourboul & F. Bournois, Strategic Communication with
Employees in Large European Companies: A Typology in European
Management Journal, 03-04/ 1999, pp. 204-217
11. Ethnocentric Polycentric Regiocentric Geocentric
Dominating
Culture
Home country Host country Regional Global culture
Strategy Global integration National
Responsiveness
Regional
integration and
national
responsiveness
Global integration
and national
responsiveness
Governance Top down Bottom up (each
subsidiary decides
on local objectives)
Mutually negotiated
between region
and its subsidiaries
Mutually negotiated
at all levels of the
corperation
Personnel
Development
People of home
country are
developed to
occupy key
positions
anywhere in the
world
People of local
nationality are
developed for key
positions in their
own country
Regional people
are developed for
key positions
anywhere in the
region
Best people around
the world are
developed for any
position around the
world
Distribution of
profits
Repatriation of
profits to home
country
Retention of profits
in host country
Redistribution
within region
Redistribution
globally
Different actions depending on orientation of company
12. Where the writer is concerned
with what he
puts into his writing,
the communicator is
concerned with what the reader
gets out of it.
Bill Berbach
He was one of the three founders of Doyle Dane Bernbach (DDB)
14. Pepsi
In Taiwan, the translation of the
Pepsi slogan
"Come alive with the Pepsi
Generation" came
out as "Pepsi will bring your
ancestors back from the dead."
The Coca-Cola name in China was first read as "Kekoukela",
meaning "Bite the wax tadpole" or "female horse stuffed with wax",
depending on the dialect. Coke then researched 40,000
characters to find a phonetic equivalent "kokou kole", translating
into "happiness in the mouth."
French label of
foreign-produced
goods
"Fabriqué en Dinde"
(Made in Turkey)
Turkey (the bird) is
"dinde," whereas the
country is called "la
Turquie".
Marketing bloopers
15. Trompenaars’s 7 Cultural dimensions
Fons Trompenaars is the author of the book 'Riding the Waves of Culture –
Understanding Cultural Diversity in Business'.
Trompenaars is also the managing director of THT Intercultural Management
Consulting, an international management and training consultancy and KPMG Network
affiliate that lists Motorola, Mars, Shell, Bombardier, and Heineken among its clients.
Particularism vs. Universalism
Collectivism vs. Individualism
Affective vs. Neutral Relationships
Diffuse vs. Specific Relationships
Ascription vs. Achievement
Relationship to Time
Relationship to Nature
The 7 dimensions represent how societies develop approaches to managing problems and difficult
situations.
Over a 14 year period, data collected from over 46,000 managers representing more than 40 national
cultures
The 7 dimensions:
16. Universalistic vs Particularistic: what is more important
- Rules or relationships?
Individualism vs Collectivism: do we function in a group
or as an individual?
Collectivism
In China, the group is very important: family, colleagues
Individualism
The United States is an individualistic country
Achievement vs Ascription: do we have to prove
ourselves to receive status or is it given to us?
Sending a young manager to run a subsidiary in a traditional
culture such as India will involve difficulty.
17. Specific vs Diffuse: How far do we get involved?
In Denmark, people are much more prone to criticize subordinates directly and
openly without regarding their criticism as a personal matter.
In Russia, this may constitute an unacceptable loss of face.
Neutral vs Emotional: Do we display our emotions?
Multinational teams consisting of individuals from highly neutral and highly affective
cultures need careful management and considerable inter-cultural understanding.
Otherwise, the affective persons will view the neutral persons as ice-cold, and the
affective persons will be viewed as out of control by the neutrals.
Sequential vs Synchronic: Do we do things one at a time or several
things at once?
Inner direction vs Outer direction
18. Cross cultural differences and similarities
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 relationship Lineal (hierarchic)
to other people? Collateral (collectivist)
Individualist
What is the temporal focus of Future
human activity? Present
Past
What is the conception of space? Private
Mixed
Public
19. Cultural Clusters
Power Individualism Masculinity Uncertainty
Distance Avoidance
France, Spain + + - +
Italy, Belgium + + + +
Portugal + - - +
Denmark - + + -
Germany - + + +
UK, US, Ireland - + + -
Japan + - + +
South Korea + - - +
Philippines + - + -
+ indicates high or strong
- Indicates low or weak
20. Concrete cultural differences in the business world
China
» technical competence
» time : punctuality
» strong relationships
» belong to a group
» less animated : avoid displays
of affection
Russia
» personal relationships
» key rule : patience
» different conceptions of
written contracts
» exclusivity (exclusive
arrangements and negotiations)
France
» social class & consequences
on the social interactions
» accustomed to conflict
» highly centralized and rigid
structures
» work / personal life balance
(the quality of life)
Arab countries
» Time issue –
“Tomorrow if God wills”
» the strong vs. the weak
perceptions
» public space
» status and rank
