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GE2250 Understand Global Project for Business and Engineering Professionals

Instructor: Jiayu Chen Ph.D.

Leadership

© Jiayu Chen, Ph.D. 2

COURSE STRUCTURE

L4. Project Cost Estimation

and Budgeting

L5. Project Planning,

Control and Crashing

L6. Scope and Risk Management for

Global Project

Project Management Triangle Strategic Management

L2. Cross-culture Collaboration

L3. Organizational Structures

Culture

Organization

Global Team

New Challenges

L8. Supply Chain Management

L10. Lean Project Management

L11. Mergers and Acquisitions

L9 Leadership

L12 Virtual Environment and

Global Team


Leadership


LEADERSHIP

“Leaders are people who do the right thing;managersare people who do things right.”

– Professor Warren G. Bennis

“Leadership is the art of getting someone else to dosomething you want done because he wants to do it.”

– Dwight D. Eisenhower


LeadershipAccording to the idea of transformational leadership, an effective leader is a

person who does the following:

1. Creates an inspiring vision of the future

2. Motivates and inspires people to engage with that vision

3. Manages delivery of the vision

4. Coaches and builds a team, so that it is more effective at achieving the vision

LEADERSHIP – A Definition


LEADERSHIP – Core Leadership Theories

The Four Core Theory Groups

1. Trait Theories – What Type of Person Makes a Good Leader?

2. Behavioral Theories – What Does a Good Leader Do?

3. Contingency Theories – How Does the Situation Influence Good Leadership?

4. Power and Influence Theories – What is the Source of the Leader's Power?



The Four Core Theory Groups

0. Great Man Theory (1840s)

1. Trait Theories (1930s – 1940s)

2. Behavioral Theories (1940s – 1950s)

3. Contingency Theories (1960s)

4. Power and Influence Theories



Trait theories argue that effective leaders share a number of common

personality characteristics, or "traits.“

Traits are external behaviors that emerge from the things going on within our

minds – and it's these internal beliefs and processes that are important for

effective leadership.

• leadership is an innate, instinctive quality

• Trait theories help us identify traits and qualities (for example, integrity, empathy,

assertiveness, good decision-making skills, and likability) that are helpful when

leading others

• none of these traits, nor any specific combination of them, will guarantee success as

a leader

Trait Theories


Among the core traits identified are:

• Achievement drive

• Leadership motivation

• Honesty and integrity

• Self-confidence

• Cognitive ability

• Knowledge of business

• Emotional Maturity

• Others




Behavioral Theories

Behavioral theories focus on how leaders behave.

In the 1930s, Kurt Lewin developed a framework based on a leader's behavior.

He argued that there are three types of leaders:

• Autocratic leaders

• Democratic leaders

• Laissez-faire leaders

Note: How leaders behave affects their performance. Best leaders are those who can

use many different behavioral styles, and choose the right style for each situation.


LEADERSHIP –Useful Leadership Style Frameworks

In 1939, a group of researchers led by psychologist Kurt Lewin identified more specific

types of leadership, this early study was very influential and established three major

leadership styles.

Lewin's Leadership Styles

• Authoritarian Leadership (Autocratic)

- Clear expectations

- Less creative

- Authoritarian leadership is best applied to situations where there is little time for group

decision-making or where the leader is the most knowledgeable member of the group

- It tends to create dysfunctional and even hostile environments.

• Participative Leadership (Democratic)

- Offer guidance to group members or participate in the group

- Decision-making process

- Motivated and creative.

• Delegative (Laissez-Faire) Leadership

- Offer little or no guidance to group members

- Can be effective in situations where group members are highly qualified in an area of expertise

- Confusion, irresponsibility, and a lack of progress



Contingency Theories

The realization that there is no one correct type of leader led to theories that

the best leadership style depends on the situation. These theories try to

predict which style is best in which circumstance.

For instance, when you need to make quick decisions, which style is best? When you

need the full support of your team, is there a more effective way to lead? Should a

leader be more people-oriented or task-oriented? These are all questions that

contingency leadership theories try to address.

• The Hersey-Blanchard Situational Leadership Theory is a popular contingency-

based leadership framework, which links leadership style with the maturity of

individual members of the leader's team.

• Other contingency-based models include House's Path-Goal Theory and Fiedler's

Contingency Model.


Hersey-Blanchard Situational Leadership Theory

• Individual situation

• Task specification

• Instead of using just one style, successful leaders should change their

leadership styles based on the maturity of the people they're leading and the

details of the task.

Maturity Level Leadership Style Readiness

M1: Low maturity S1: Telling/directing R1: Low follower readiness

M2: Medium maturity, limited

skills

S2: Selling/coaching R2: Low to moderate follower

readiness

M3: Medium maturity, higher

skills but lacking confidence

S3: Participating/supporting R3: Moderate to high follower

readiness

M4: High maturity S4: Delegating R4: High follower readiness




According to Hersey, ability level and willingness to do work can be cultivated by a

good leader by raising the level of expectations. Blanchard overlays four permutations

of competency-commitment, again, with a letter designation:

• D1 - Low competence and low commitment

• D2 - Low competence and high commitment

• D3 - High competence and low/variable commitment

• D4 - High competence and high commitment


Task behavior: Extent to which the leader spells out the duties and responsibilities of a

follower which includes providing them direction, setting goals, and defining roles for

them. Usually a one-way communication exists which is meant to provide the direction

to the followers.

Relationship behavior: Extent to which the leader listens to the followers, and

provides encouragement to them. Here, a two-way communication exists between the

leader and the follower.




Example:

1. You're about to leave for an extended holiday, and your tasks will be handled by an experienced

colleague. He's very familiar with your responsibilities, and he's excited to do the job.

Instead of trusting his knowledge and skills to do the work, you spend hours creating a detailed list

of tasks for which he'll be responsible, and give full instructions on how to do them.

The result? Your work gets done, but you've damaged the relationship with your colleague by your

lack of trust. He was an M4 in maturity, and yet you used an S1 leadership style instead of an S4,

which would have been more appropriate.

2. You've just been put in charge of leading a new team. It's your first time working with these

people. As far as you can tell, they have some of the necessary skills to reach the department's

goals, but not all of them. The good news is that they're excited and willing to do the work.

You estimate they're at an M3 maturity level, so you use the matching S3 leadership style. You

coach them through the project's goals, pushing and teaching where necessary, but largely leaving

them to make their own decisions. As a result, their relationship with you is strengthened, and the

team is successful.



The Path-Goal Theory of Leadership was

developed to describe the way that leaders

encourage and support their followers in

achieving the goals they have been set by

making the path that they should take clear

and easy.

In particular, leaders:

• Clarify the path so subordinates know

which way to go.

• Remove roadblocks that are stopping

them going there.

• Increasing the rewards along the route.

Path-Goal Theory



• In clarifying the path, the leaders may be directive or give vague hints.

• In removing roadblocks, they may scour the path or help the follower move the bigger

blocks.

• In increasing rewards, they may give occasional encouragement or pave the way with gold.

• This variation in approach will depend on the situation, including the follower's capability

and motivation, as well as the difficulty of the job and other contextual factors.

Path-Goal Theory

The four path-goal types of leader behaviors are:

Achievement

Directive

Supportive

Participative



Power and Influence Theories

Power and influence theories of leadership based on the different ways that

leaders use power and influence to get things done, and they look at the

leadership styles that emerge as a result.

• The best-known of these theories is French and Raven's Five Forms of

Power.

• This model highlights three types of positional power (legitimate, reward,

and coercive) and two sources of personal power (expert and referent).

• Another leadership style that uses power and influence is transactional

leadership. This approach assumes that people do things for reward and

for no other reason. Therefore, it focuses on designing tasks and reward

structures.


LEADERSHIP – Understand Power

French and Raven's Five Forms of Power

Five bases of power:

1. Legitimate

2. Reward

3. Expert

4. Referent

5. Coercive

• Better understand why you're influenced by someone, and decide whether you want

to accept the base of power being used.

• Recognize your own sources of power.

• Build your leadership skills by using and developing your own sources of power,

appropriately, and for best effect.



Leadership and power are closely linked.

People tend to follow those who are powerful, but

leaders have power for different reasons.

Recognize different types of power.


Transactional leadership Transformational Leadership

Leadership is responsive Leadership is proactive

Works within the organizational culture Work to change the organizational culture

by implementing new ideas

Transactional leaders make employees

achieve organizational objectives through

rewards and punishment

Transformational leaders motivate and

empower employees to achieve

company’s objectives by appealing to

higher ideals and moral values

Motivates followers by appealing to their

own self-interest

Motivates followers by encouraging them

to transcend their own interests for those

of the group or unit


Transactional Leadership Vs. Transformational Leadership


LEADERSHIP – Other Leadership Theories


The Blake-Mouton Managerial Grid (Leadership Grid)

Element Description

Initiative Taking action, driving and supporting

InquiryQuestioning, researching and verifying

understanding

Advocacy Expressing convictions and championing ideas

Decision makingEvaluating resources, choices and

consequences

Conflict resolution Confronting and resolving disagreements

Resilience Dealing with problems, setbacks and failures

Critique Delivering objective, candid feedback




The Indifferent or Impoverished (1,1)

These leaders have minimal concern for people and

production. Their priority is to fly under the radar while they

content to seek solutions that won't bring any negative focus

to themselves or their department. Preserving their

employment, position as well as their seniority is what drives

their elusive and evading behaviors.

Impact on employees:

• Employees have a high degree of dissatisfaction

• No harmony within the group

• High turn over

Impact on organization:

• Inefficient operation

The Country Club or Accommodating (1, 9)

These leaders will go above and beyond to ensure that the needs and desires of his employees are met. These

leaders are making the assumption that their staff will yield maximum results as they are likely to be self-

motivated when they are lead in such environment. These leaders will have behaviours that will yield and comply

with the needs of their staff. The productivity of the group however, can suffer from the lack of attention on tasks.


• Employees are Happy

• Good team harmony


• Low productivity




The Dictatorial or Produce, Perish or Control (9, 1)

These leaders focus all of their attention to production-related matters and very little towards the needs of their

employees. These leaders will direct and dominate while holding the belief that efficiency gains can only be

achieved through rigid disciplines especially those that don't require human interaction. Employees are

considered expendable resources. Productivity is usually short lived as high employee attrition is unavoidable.


• Employees experience a high level of dissatisfaction

• High level of conflict within the group


• High employee turnover

• Peak performance is short lived

The Status Quo or Middle-of-the-Road (5, 5)

These leaders balance out the needs of their staff with those of

the organization, while not adequately achieving either. These

leaders will balance and compromise their decisions, often

endorsing the most popular one. They dedicate minimal efforts

towards facilitating the achievements of their staff or the

production results in average or below average levels.Impact on employees:

• Employees are not really discontent nor are they happy

• Good harmony within the group


• Average performance




The Sound or Team (9, 9)

According to Dr. Robert R. Blake and Dr. Jane Srygley

Mouton, the sound leader is the most effective leadership style.

These leaders will contribute and are committed, can motivate

and are motivated while holding the belief that trust, respect,

commitment and employee empowerment are essential for

fostering a team environment where team members are

motivated, thus resulting in maximum employee satisfaction as

well as the most efficient productivity.Impact on employees:

• Employees are forming a highly cohesive team

• Employees are satisfied

• Employees are motivated and work as a team


• Low employee turnover

• Attracts highly skills employees

• Efficient organization



The Leadership Style Matrix is divided into four quadrants. Each quadrant lists

two leadership styles that are best suited for a specific situation and person (or

group).

The Y-axis defines the "programmability" of the task. A programmable task

has specific steps or instructions to complete. A non-programmable task is

more creative; it's up to the individual to decide how best to accomplish it.

The X-axis describes the individual's capability and preference for autonomy.

Several factors influence this, including education, skill, motivation, and their

desire for feedback, interaction, or independence.

Flamholtz and Randle's Leadership Style Matrix



Flamholtz and Randle's Leadership Style Matrix

3Low Programmability

Low Job Autonomy

Consultative/Participative

4Low ProgrammabilityHigh Job Autonomy

Consensus/Laissez-Faire

1High Programmability

Low Job AutonomyAutocratic/

Benevolent Autocratic

2High Programmability

High Job Autonomy

Consultative/Participative

LOW HIGH

LOW

HIGH

Capability for Autonomy

Pro

gra

mm

ab

ilit

yLEADERSHIP – Other Leadership Theories


Six Emotional Leadership Styles

*Daniel Goleman, Richard Boyatzis and Annie McKee, Primal Leadership

Coercive/

Commanding

Issues instructions without

asking for input about what is

to be done

"Do what I tell

you."

In a crisis to kick-start a turnaround,

or with problem employees.

Strongly

negative

Authoritative/

Visionary

Inspires people by focusing on

long-term goals

"Come with

me."

When change requires a new vision or

when a clear direction is needed

Most strongly

positive

AffiliativeCreates a warm, people-

focused working atmosphere

"People come

first."

To heal rifts in a team or to motivate

during stressful timesHighly positive

Democratic

Obtains input and

commitments from everyone

in the group

"What do you

think?"

To build buy-in or consensus or to get

valuable input from employeesHighly positive

Coaching

Helps people assume

responsibility for a stretch of

the road that leads to the

organization's success

"Try this."

To help an employee improve

performance or develop long term

strengths

Highly positive

Pacesetting

Sets ambitious goals and

continually monitors progress

toward those goals

"Do as I do,

now!"

To get quick results from a highly

motivated and competent team.Highly negative




Quadrant 1: High Programmability/Low Job AutonomySometimes you'll be in charge of a task that must be done in a specific way; or that

needs to be completed by a team that needs a great deal of motivation, guidance,

feedback, or interaction. In these cases, a directive leadership approach is most effective.

Autocratic – The leader issue instructions without explanation, and expect team members to

follow them without question.

Leaders need to lead with strength and assertiveness, but it's also important to lead with kindness.

Don't forget that your team members depend on the feedback that you give them. Praise their

good work regularly, and give them constructive criticism on how they can improve.

Benevolent Autocratic – The benevolent autocratic style is similar to the autocratic style but

more participative.

To use this style successfully, communicate the reasons why your team must follow your

instructions. As your team is working, practice management by wandering around, so that you're

available to answer questions and provide feedback.




Quadrant 2: High Programmability/High Job AutonomyWhen the task that you're delegating must be completed in a specific way, and the person

that you're delegating to wants to have autonomy in his or her work, you can use either a

consultative or a participative style of leadership.

Consultative – You use a consultative leadership style when you ask your team members for

their input and opinion, but you still have the final say.

To use the consultative leadership style successfully, build trust in your team. When trust is

present, your team members will feel comfortable offering their opinions and reacting honestly to

issues.

Participative – The participative leadership style is similar to the consultative style, where you

still have the final say in a decision. However, the participative style goes a step further – you

depend on your group to develop ideas, not just offer opinions on an idea. The participative style is

more about group problem solving and brainstorming.




Quadrant 3: Low Programmability/Low Job AutonomyLeading a highly creative project, with a person or with team members who don't want

autonomy. Instead, they need direction, input, and interaction. The two leadership styles

that best fit this situation are Consultative and Participative.

Consultative – You use a consultative leadership style when you ask your team members for

their input and opinion, but you still have the final say.

To use the consultative leadership style successfully, build trust in your team. When trust is

present, your team members will feel comfortable offering their opinions and reacting honestly to

issues.

Participative – The participative leadership style is similar to the consultative style, where you

still have the final say in a decision. However, the participative style goes a step further – you

depend on your group to develop ideas, not just offer opinions on an idea. The participative style

is more about group problem solving and brainstorming.




Quadrant 4: Low Programmability/High Job AutonomyWhen you're assigning a creative – or "loose" – project to a person who wants freedom

and independence to work. This means that you need to take a nondirective leadership

approach.

Consensus – You're going to give your team member a great deal of authority in the

decision-making process. Instead of being the "boss," it's almost as if you become part

of the team.

Ensure that your team member understands his or her responsibilities when you use this

style.

Laissez-faire – You give team members freedom over how and when they're going to

do their work, but you're there if they need resources or help.

You should only use laissez-faire leadership in the right situations, and you should

avoid taking this style to the extreme. However, when you're working with someone

who is highly skilled, motivated, and intelligent, using this leadership style can be very

effective. To use laissez-faire successfully, make sure that you delegate the right tasks

to the right people.



LEADERSHIP – Leadership Styles

• Bureaucratic Leadership

• Charismatic Leadership

• Servant Leadership

• Transactional Leadership

Useful Leadership Style Frameworks

• Lewin's Leadership Styles

• The Blake-Mouton Managerial Grid

• The Hersey-Blanchard Situational Leadership Theory

• Path-Goal Theory

• Six Emotional Leadership Styles

• Flamholtz and Randle's Leadership Style Matrix

Specific Leadership Styles


Transactional Leadership

This leadership style starts with the idea that team members agree to obey their

leader when they accept a job. The "transaction" usually involves the

organization paying team members in return for their effort and compliance on a

short-term task.

• The leader has a right to "punish" team members if their work doesn't meet

an appropriate standard.

• Transactional leadership is present in many business leadership situations,

and it does offer some benefits.

• The downside of this style is that, on its own, it can be chilling and amoral,

and it can lead to high staff turnover. It also has serious limitations for

knowledge-based or creative work. As a result, team members can often do

little to improve their job satisfaction.

LEADERSHIP – Specific Leadership Styles



Transactional Leadership



Bureaucratic Leadership

Bureaucratic leaders follow rules rigorously, and ensure that their people follow

procedures precisely.

• This leadership style is appropriate for work involving serious safety risks

(such as working with machinery, with toxic substances, or at dangerous

heights), or with large sums of money. Bureaucratic leadership is also useful

for managing employees who perform routine tasks.

• This style is much less effective in teams and organizations that rely on

flexibility, creativity, or innovation.


Charismatic Leadership

A charismatic leadership style resembles transformational leadership: both

types of leaders inspire and motivate their team members.

• The difference lies in their intent. Transformational leaders want to

transform their teams and organizations, while leaders who rely on

charisma often focus on themselves and their own ambitions, and they may

not want to change anything.

• Charismatic leaders might believe that they can do no wrong, even when

others warn them about the path that they're on. This feeling of invincibility

can severely damage a team or an organization, as was shown in the 2008

financial crisis.




Servant Leadership

A "servant leader" is someone, regardless of level, who leads simply by meeting

the needs of the team. The term sometimes describes a person without formal

recognition as a leader.

• These people often lead by example. They have high integrity and lead with

generosity. Their approach can create a positive corporate culture, and it can

lead to high morale among team members.

• Supporters of the servant leadership model suggest that it's a good way to

move ahead in a world where values are increasingly important, and where

servant leaders can achieve power because of their values, ideals,

and ethics .

• This leadership style takes time to apply correctly: it's ill-suited to situations

where you have to make quick decisions or meet tight deadlines.



Servant Leadership


LEADERSHIP – Negative Styles



Negative styles

Post-hoc Management

A poor, but common style.

Micromanagement

Controls every detail.

Seagull Management

Flying in, pooping on you and flying off again.

Mushroom Management

Drop them in the poo and keep them in the dark.

Kipper management

Two-faced approach.



Post-hoc ManagementIt is very common in small companies where there are few formal systems and where there is a general

autocratic style. It also appears in larger organizations where results take precedence over rules or

where politics leads to impression management being a primary activity.

Principle

• The basic principle of post-hoc management is that, as judge and jury, the manager is always

right and never to blame.

• The first sign of post-hoc management is a vague start to work, typically with unclear and

general objectives.

Critical benefits

The post-hoc manager also benefits from the 'critic effect', whereby people who criticize are seen as

being more intelligent that those who propose creative solutions. The manager may be creative too,

but does it in a way that protects them from blame.

Post-hoc management is sadly an all-too-frequent reality. It reflects the human condition and the

need for control, safety and status that often take priority over values that require integrity and

concern for others.



MicromanagementThere is a style of management with which many are familiar and which has acquired the name

'micromanagement'. The manager in question acts as if the subordinate is incapable of doing the job,

giving close instruction and checking everything the person does.

Why micromanage

• May reasonably not trust the person either because there is evidence to support this or because

the newness of the relationship has not yet yielded evidence to support trust.

• Another explanation is an internal need for the manager to manage closely.

When a person is working in a job where they do not have the knowledge or ability to

do the job, and where mistakes are costly and highly undesirable, then they will need

careful supervision and education until they are able to work by themselves.



Seagull managementA style of management whereby the person 'flies in, poops on you and then flies away again'. When they

are there, they typically give criticism and direction in equal quantities, often without any real

understanding of what the job entails.

Why it happens

• The Seagull Manager like to consider themselves as important, they consequently grab the

talking stick and do not stop until they can excuse themselves and leave.

• They are likely to be strongly task-based and consider the 'soft stuff' as fluffy and unnecessary.

Their approach is thus highly transactional, based on the simple premise 'do as I say and you'll

continue to get paid'.



Mushroom management“the 'mushroom manager' plants you knee-deep (or worse) in the smelly stuff and keeps you in the

dark.” You get to do all the work that they do not want. They do not communicate and generally ignore

you, so you do not know their plans or what else might be going on in the organization.

Why it happens

• Mushroom managers are often more concerned about their own career and image, anyone

who appears as a threat may well be deliberately held back as their ability may make the

mushroom manager look bad.

• Managers may take the mushroom route is that they just do not care about some or all of their

people.



Kipper ManagementTwo-faced manager who has different faces and styles depending on the situation.

When they are with more senior managers they are typically model employees, putting business first

and themselves last. Yet with their subordinates, the reverse is often true, with the individuals carrying

the can for both pulling out the stops to get things done in time and then blame when things go wrong

through no fault of their own.

Why it happens

• The key reason why the kipper is so two-faced (or many-faced) is that their values with regard to

integrity are largely non-existent. They literally see nothing wrong in acting differently with

different people and may even be proud of their ability to act differently in different situations,

calling it something like 'style flexibility'.

• Historically, the kipper may have been taught that 'this is how it works'. They may also have a

deeper background where trust was low and abusive relationships common.


1. Not Providing Feedback

2. Not Making Time for Your Team

3. Being Too "Hands-Off"

4. Being Too Friendly

5. Failing to Define Goals

6. Misunderstanding Motivation

7. Hurrying Recruitment

8. Not "Walking the Walk“

9. Not Delegating

10. Misunderstanding Your Role

LEADERSHIP – Bad Practices


In 1955, based on field research in administration and his own firsthand observations of

executives in the workplace, Katz suggested that effective administration depends on

three basic personal skills: technical, human, and conceptual.

LEADERSHIP – Skill Approach

Three-skills Approach

• Technical skill is knowledge about and proficiency in a specific type of work or

activity.

• Human skill is knowledge about and ability to work with people.

• Broadly speaking, conceptual skills are the ability to work with ideas and

concepts.



Based on the extensive findings from the project, Mumford and colleagues formulated a

skill-based model of leadership to extend three-skills approach.


INDIVIDUALATTRIBUTES

COMPETENCIESLEADERSHIPOUTCOMES

• General Cognitive

Ability

• Crystallized

Cognitive Ability

• Motivation

• Personality

Problem-Solving

Skills

Social Judgment

Skills

Knowledge

• Effective

Problem Solving

• Performance

Career Experiences

Environmental Influences


Individual Attributes


General Cognitive Ability.

• It includes perceptual processing, information processing, general reasoning skills,

creative and divergent thinking capacities, and memory skills. General cognitive

ability is linked to biology, not to experience.

• General cognitive ability is sometimes described as fluid intelligence, a type of

intelligence that usually grows and expands up through early adulthood and then

declines with age.

Crystallized Cognitive Ability.

• Crystallized cognitive ability is intellectual ability that is learned or acquired over time.

It is the store of knowledge we acquire through experience.

• In normally functioning adults, this type of cognitive ability grows continuously and

typically does not fall off in adulthood.


Individual Attributes


Motivation.

• This first step is critical. For leadership to occur, a person wants to lead.

• Second, leaders must be willing to express dominance—to exert their influence.

• Third, leaders must be committed to the social good of the organization. It refers to

the leader’s willingness to take on the responsibility of trying to advance the overall

human good and value of the organization.

Personality.

• This attribute reminds us that our personality has an impact on the development of

our leadership skills. For example, openness, tolerance for ambiguity, and curiosity

may affect a leader’s motivation to try to solve some organizational problem. Or, in

conflict situations, traits such as confidence and adaptability may be beneficial to a

leader’s performance.


Competencies


Problem-Solving Skills.

• The skills include being able to define significant problems, gather problem

information, formulate new understandings about the problem, and generate prototype

plans for problem solutions.

• Problem-solving skills demand that leaders understand their own leadership capacities

as they apply possible solutions to the unique problems in their organization.

Social Judgment Skills.

social judgment skills are the capacity to understand people and social systems They

enable leaders to work with others to solve problems and to marshal support to

implement change within an organization.

Knowledge.

• Knowledge is inextricably related to the application and implementation of problem-

solving skills in organizations. It directly influences a leader’s capacity to define

complex organizational problems and to attempt to solve them.

• Knowledge is the accumulation of information and the mental structures used to

organize that information.


*SOURCE: Adapted from House, R.J., Hanges, P.J., Javidan, M., Dorfman, P. W., & Gupta, V., Culture, Leadership, and

Organizations: The GLOBE Study of 62 Societies, copyright © 2004, Sage Publications

GLOBE researchers divided the data from the 62 countries they studied into regional clusters.1

These clusters provided a convenient way to analyze the similarities and differences between

cultural groups (clusters), and to make meaningful generalizations about culture and leadership.

LEADERSHIP – Culture



Cultural Dimension High-score Clusters Low-Score Clusters

Assertiveness orientation Eastern Europe, Germanic Europe Nordic Europe

Future orientation Germanic Europe, Nordic Europe Eastern Europe, Latin America,

Middle East

Gender egalitarianism Eastern Europe, Nordic Europe Middle East

Humane orientation Southern Asia, Sub-Saharan

Africa

Germanic Europe, Latin Europe

In-group collectivism Confucian Asia, Eastern Europe,

Latin America, Middle East,

Southern Asia

Anglo, Germanic Europe, Nordic

Europe

Institutional collectivism Nordic Europe, Confucian Asia Germanic Europe, Latin America,

Latin Europe

Performance orientation Anglo, Confucian Asia, Germanic

Europe

Eastern Europe, Latin America

Power distance No clusters Nordic Europe

Uncertainty avoidance Germanic Europe, Nordic Europe Eastern Europe, Latin America,

Middle East



Charismatic/value-based leadership reflects the ability to inspire, to motivate, and to expect high

performance from others based on strongly held core values. This kind of leadership includes

being visionary, inspirational, self-sacrificing, trustworthy, decisive, and performance oriented.

Team-oriented leadership emphasizes team building and a common purpose among team

members. This kind of leadership includes being collaborative, integrative, diplomatic,

nonmalevolent, and administratively competent.

Participative leadership reflects the degree to which leaders involve others in making and

implementing decisions. It includes being participative and nonautocratic.

Humane-oriented leadership emphasizes being supportive, considerate, compassionate, and

generous. This type of leadership includes modesty and sensitivity to other people.

Autonomous leadership refers to independent and individualistic leadership, which includes being

autonomous and unique.

Self-protective leadership reflects behaviors that ensure the safety and security of the leader and

the group. It includes leadership that is self-centered, status conscious, conflict inducing, face

saving, and procedural.



Eastern Europe Leadership Profile

For the Eastern European countries, an ideal

example of a leader would be a person who

was first and foremost independent while

maintaining a strong interest in protecting his

or her position as a leader.

Latin America Leadership Profile

Quite different from the Eastern European

countries, the Latin American countries place

the most importance on charismatic/value-

based, team-oriented, and self-protective

leadership, and the least importance on

autonomous leadership

*SOURCE: Adapted from House et al. (2004).



Latin America Leadership Profile

Quite different from the Eastern European

countries, the Latin American countries place

the most importance on charismatic/value-

based, team-oriented, and self-protective

leadership, and the least importance on

autonomous leadership.

Latin Europe Leadership Profile

The Latin Europe cluster values leadership

that is charismatic/value based, team

oriented, participative, and self-protective.


Confucian Asia Leadership Profile

The leadership profile of the Confucian Asia

countries describes a leader who is self-

protective, team oriented, and humane

oriented.


Nordic Europe Leadership Profile

An ideal example of leadership for the Nordic

European countries is leadership that is highly

visionary and participative, while being

somewhat independent and diplomatic.


LEADERSHIP – A case study


LEADERSHIP – Case study

“Decentralization”

10 groups, 46 divisions and 190 departments for 43

strategic business unit

The Wall Street Journal proclaimed him as “management

legend” “replaced a legend with a live wire”

Jack Welch

Starting stage: GE restructuring

Late 1980’s: Second stage of the rocket

1990’s: the third wave

Closing out the decade: Raising the Bar



Starting stage: GE restructuring

#1 or #2: Fix, Sell or CloseBetween 1981-1990, GE freed up over $11 billion of capital by selling off more than

200 businesses, which had accounted for 25% of 1980 sales. The company made over

370 acquisitions, investing more than $21 billion in purchases (eg: Westinghouse’s

lighting bussiness)

A highly disciplines destaffing process aimed at all large headquarters groups, including

a highly symbolic 50% reduction in the 200-person strategic planning staff.

“We don’t need the questioners and checkers, the nitpickers who bog down the process

…”

Welch earned a name of “Neutron Jack”



The Late 1980s: Second Stage of the Rocket

In 1989, Welch articulated the management style he hoped for GE should based on

openness, candor, and facing reality. His objective was to created the culture of a small

company – a place where all felt engaged and everyone had voice.

WorkoutA process designed to get unnecessary bureaucratic work out of system while providing

a forum in which employees and their bosses could work out new ways of dealing with

each other.

Best PracticesCommit to new training program to introduce Best practice thinking through the

organization.



Developing Leaders

“Like many other large companies in the U.S., Europe and Japan, GE has had an

implicit psychological contract based on perceived lifetime employment. This produced

a paternal, feudal, fuzzy kind of loyalty. This kind of loyalty tends to focus people

inward. … We have the best training and development resources and an environment

committed to providing opportunities for personal and professional growth.”

-Tich and Charan

Managers at every level used these discussions as the basis for coaching and

developing their staff. (As a role model, Welch estimated he spend at least 70%

of his time on people issues, most of that teaching and developing others)

“I own the people” vs. “You just rent them”


The Late 1990s: The third wave


Boundaryless Behavior and integrated diversity

“We take people who aren’t boundaryless out of jobs … In you’re turf-oriented, self-

centered, don’t share with people and aren’t searching for ideas, you don’t belong here.”

StretchThe workers were required to set higher, “strech” goals for their businesses.


Closing out the decade: Raising the bar


Six Sigma, e-business

November 22, 1999, Fortunemagazine name him “Manager of the Century”

Under his leadership GE’s market cap has grown from $13 billion in 1981 to$330 billion in 1999

A players (4 e’s: Energy, Energizing, Edge and Execution)


Outlined by San Francisco Chronicle:1. Change is good -- embrace it in everything, from competition, marketconditions, and consumer spending habits.

2. Lead, don't manage.3. The ideal manager inspires, energizes, and follows through on their vision.4. Don't ignore the facts of your business and the general market: either takeadvantage of them or protect yourself from their negative effects.

5. Stay focused, be consistent, and always follow-up on everything.


Jack Welch’s Leadership Style



Macro Observation:

• His initiatives lead rather than follow management fashion

• The initial emphasis on establishing a strong base, then building on the leveraging

those strong core business

• His focus on a few key initiatives that he sustains over many years

• His deeply embedded “operating system” that integrates visionary initiatives into

strategic plans, operating budges, personnel review and ongoing corporate

communication.

Micro Observation:

• Initiative is translated into specific targets or objectives.

• Creating measure and aligning rewards.

• Welch’ role as communicator – articulating the initial concept, emphasizing the need

for alignment, spreading the successes.


Jack Welch’s Leadership Style


• Trait

• Style

• Behavior

• Environment

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