GROUP #2

Chapter 3: Leadership, Motivation, and Group

Behavior

Chapter Introduction

• Generating Interest in Business• Leadership articles/books most published• Not only in United States but all over, such as

China

Chapter 3

Chapter broken into 3 parts Leadership Across Cultures Motivation Across Cultures Group Behavior

These parts are explained by 10 paradoxes

LEADERSHIP

Section 1

FRAMING LEADERSHIP

Paradox 3.1

Topics Covered

Is the essence of leadership being stuck on the horns of a dilemma?

In order to answer this we must asses our own definition of leadership

The Functions of the Executive

Chester Barnard book The Functions of the Executive published in 1938

Managerial focus was tangible resources before World War II

After Barnard’s book focus shifted toward intangible aspects of firms Culture, service quality, customer perception

Most importantly, motivating workers

Three Essentials of an Organization

Defined by Bernard Systems of communication between individuals and

groups Motivation (willingness to serve) Common purpose integrating efforts of individuals

and groups

Three Essential Tasks

Barnard then describes three essential tasks of the Management/Executives Development of effective communication throughout

the organization To motivate subordinates Define a common purpose, goal of organization, or

defining what the organization’s trying to accomplish

Stresses that the Management/Executive is critical factor of an organization

Reasons for Motivation

Zone of Acceptance

Nine Dilemmas

Thomas Stewart in an article, interview based project, published in 1996 found leaders must address nine dilemmas

1. Revenue growth versus cost containment2. A short-term versus long-term focus 3. Creativity versus organizational discipline4. The needs of people versus demand of

productivity

Nine Dilemmas Continued

5. Specific capabilities of subordinates versus their leadership potential

6. Independence versus Dependence of organizational members and departments

7. Bureaucracy busting versus creating economies of scale

8. Trust versus demand for change9. Broad-based projects versus only-high

visibility projects

Application

How does any of this help us become better leaders? Polarity Management Ambiguity Management

Managing Opportunity Costs Jack Welch and Jeffery Immelt

Cultural Ties

Culture and Leadership Thought it was complex before?

What is socially acceptable in one country may be legally unacceptable in another

GLOBE Researchers support concept of “Cultural Universals” as well as “Cultural Specifics” (pg 52)

Bottom Line of 3.1

Managing polarity and ambiguity can be seen as the essence of leadership

Activities range from 2 minutes to 2 hours

Important to select the correct premise of dilemmas

Equally important to fully commit to the implementation of that which is selected

WHO IS MORE EFFECTIVE, THE INSTRUMENTAL-VISIONARY-TRANSFORMATIONAL LEADER OR THE

HEADMAN?

Paradox 3.2

Topics Covered

Compare leadership styles in authority-ranking and market-pricing cultures

Will discuss briefly the GLOBE study

Transformational leadership - the degree to which the leader is able to effect a change not only in the firm’s culture but also in profitability

Visionary leadership – the degree to which the leader provides a vision of the future to which organizational members subscribe so that the transformation can occur

Market Pricing Cultures

This is the culture here in the U.S

Example of a great transformational and visionary leader is Jack Welch, a CEO of General Electric

Leaders come in all different types, shapes, and varieties

Charismatic leadership: larger-than-life individual capable of galvanizing and motivating subordinates through his assumed special abilities

Authority Ranking Cultures

Found in areas such as Asia, Latin America, the Middle East, and Africa

Headman leadership: a two-way psychological relationship based on mutual obligations exists between leader and follower and extends beyond work to include cultural and community factors

The headman leadership role can be very stressful for the leaders

Have the concept of guaranteed employment

Two Cultures Together

General Motors and Toyota’s joint venture in the late 1980’s

Toyota’s Production System Guaranteed employment and Employability

Puter Sampoerna and the Sampoerna Company in Indonesia

GLOBE Study

62 National cultures broken down into 10 clusters

Bottom Line of 3.2

Leadership styles in authority-ranking and market-pricing cultures

The GLOBE study

Transformational leadership

Visionary leadership

WHEN SHOULD A LEADER ALLOW SUBORDINATES TO PARTICIPATE IN DECISION MAKING?

Paradox 3.3

The degree of subordinate involvement in decision making…

Most popular topic evaluated considering work motivation Time issues Extra/special knowledge available Increase acceptance of programs

(Research done in the US)

Other nations surveys show…

Positive links with respondentsConsider maximums and minimumsEmphasize difference between leadersCould unintentionally challenge values

Bottom Line of 3.3

Consider implementing subordinate participation in decision making, but also make sure actions are made consistent with those in a given culture.

CAN AN EFFECTIVE LEADER BE SOMEONE WHO PUBLICLY HUMILIATES SUBORDINATES?

Paradox 3.4

How would you feel if your boss…

Publicly humiliated you?Closely supervised you?Constantly pointed out your errors?Strongly insisted how each step of the

process should be done?

Individualistic CulturesCollectivist Cultures

Ineffective, distasteful

Individualists tend to favor: Positive reinforcement Private negative

feedback Work independently Positive recognition

CEO of Hewett-Packard

Positive, encouraging

Why? Sign of genuine care High consideration

Argument Against: Macho Collectivists

Cultures Africa, Latin America

Developing Cultures Changes in Trends

Qualities of an Effective Leader

Two Main Predictors of an Effective Leader: Empathy Flexibility Identical across cultures…

Surface Features How a leader implements these predictors Vary enormously across cultures

Bottom Line of 3.4

Motivation is necessary How to motivate depends on the social norms

It is very important to know your environment Research and read Talk with current and former employees (Ex-Pat)

MOTIVATION

Section 2

IS THE RELATIONSHIP BETWEEN MOTIVATION AND ABILITY ADDITIVE OR MULTIPLICATIVE IN THE

PREDICTION OF INDIVIDUAL SUCCESS AND PERFORMANCE?

Paradox 3.5

Helps us answer two questions

What is the relationship between performance and success?

What is the relationship between ability and motivation?

The Expectancy Theory

Says individuals must perceive thatThey have proper resources, skills, and

abilities to be successful

If they make an effort, they will be successful and they will be rewarded

The rewards are the ones they desire

Collectivistic vs. Individualistic

Collectivist cultures (ex. China) Assume the relationship between ability and

motivation is additive

Individualistic (ex. US) Assume the relationship between ability and

motivation is multiplicative

Examples

Additive Receiving a 6* for both ability and motivation would

give a score of 12

Multiplicative Receiving a 6* for both ability and motivation would

give a score of 36

*on a 10 point scale

This means…“Market-pricing cultures (like the US) generally expect far more

from their managers and workers than do collectivistic, authority-ranking cultures[…] this, in turn, increases the the total score or level of performance expected” (pg. 65).

United States

Equality of opportunity NOT equality of outcomes“Pay for performance”“Management by objectives”

Suggest that levels of performance should be

compensatedmotivation can influence performance

China

See the organization as a family Relationship between superior and subordinate is

psychological in nature

Tendency to Avoid rating and ranking managers and employers

who will work together for 30 or more years Make statements of “average performance” in order

to save face

Bottom Line of 3.5

“When culture is included in the framework, the relationship between ability and motivation is assumed to be significantly different” (pg. 66).

CAN AN INDIVIDUALLY BASED NEED HIERARCHY EXIST IN A COLLECTIVISTIC CULTURE?

Paradox 3.6

Maslow’s Hierarchy of Needs

Experts have reduced the theory to 2 Levels: 1. Physiological and Safety 2. Higher-order Needs

Market-Pricing Culture Authority-Ranking Culture

Focuses on individual responsibility

One-way relationship between the leader and subordinates

Western nations

Emphasize a family model

Two-way relationship between the leader and subordinates

Non-Western nations

Differences in Motivation of Cultures

European/American background: Person specific Ego-centered

Asian background: Trust authority figures or peers Social

Commonalities: People want to be treated equally and fairly with

adequate awards Notions of equity and adequate rewards vary drastically

Bottom Line of 3.6

People have their own needs (survival, social status) Main motivation Important in every culture To what degree…

Equality United States

Opportunity Treatment

China Team Success

DO EFFECTIVE EXECUTIVES ATTRIBUTE SUCCESS TO THEMSELVES OR TO OTHERS?

Paradox 3.7

Topics Covered

Leadership vs. Motivation

Attribution Theory

Types of Attribution Theory

Fundamental attribution error Attributes success to subordinates, superiors, peers, or

environment

Self-serving bias Attributes success to the individuals own effort and de-

emphasizes the efforts of others and the environment

Ex: new CEO taking all the credit for success when really it really was strategies of the former CEO and co-workers that were successful

Individualistic vs. Collectivists

Individualistic, market-pricing culture- Fundamental attribution error Self-serving bias

Collectivists, authority ranking culture- Fundamental attribution error Non-self-serving attribution error Daewoo Motor Company example

Bottom Line of 3.7

Studies repeatedly show China and other Asian countries are Collectivists but, the United States self-serving bias is higher than expected.

There are clear connections between leadership and motivation. These differences will explain actual behaviors in the next section.

GROUP BEHAVIOR

Section 3

DO GROUPS CONTAIN FREE RIDERS, OR ARE ALL MEMBERS EQUALLY RESPONSIBLE CONTRIBUTORS?

Paradox 3.8

Group Behavior

Linear four-step pattern Forming Storming Norming Performing

Bottom Line of 3.8

Free rider effect Peer-group ratings

Group sizes

Culture Individualistic Collectivistic

China

IN GENERAL AND IN SMALL GROUPS, DO THE PERSONALITIES OF INDIVIDUALS PRIMARILY

REFLECT THE INFLUENCE OF CULTURE?

Paradox 3.9

Culture’s Influence on Personalities

Collectivistic

Individualistic

Can deviate from the culture’s values

Your Personality

What personality type are you?

‘20 Items’ Finish the phrase “I am…” with adjectives, items, or

descriptions

Personality Interaction

The criticality of the culture generally determines a person’s tendency toward a personality

Both personalities will adopt to the group norm

Group Interactions

Individual Personality

Individualistic

Collectivistic

Group

Personality

Individualism

Less Cooperative

Less Cooperative

Follows Individualistic

Norms

Collectivism

More Cooperative

Strives Harder to

Fit-In

Works HardGreat

Cooperation

Sources of Personalities

Collectivistic cultures No distinction between individual and situation ‘Continuous Shaping’ through situational influences Get traits OUT of the situation

Individualistic Cultures Act in character no matter the situation Norm of consistency Bring traits INTO the situation

Bottom Line of 3.9

Your individual personality can differ from culture values

In small groups, your individual personality can change to adopt to norms of your group

Your personality traits are either consistent or shaped by your situation depending on your culture influence

SHOULD MULTICULTURAL GROUPS BE MANAGED DIFFERENTLY FROM SINGLE-CULTURE GROUPS?

Paradox 3.10.

Smith and Berg

Kenwyn Smith and David Berg (1987) Counterintuitive concepts about the functioning and

management of multicultural small groups Smith and Berg point out differences predominate in

multicultural small groups

As a result Smith and Berg developed a three phase process to

enhance the functioning of multicultural small groups

Smith and Berg’s Three-phases

Learning how to learn together Learning something of value

Discovering members’ unique cultural contributions Knowledge of other cultures is limited

Exploring group polarities How groups should function in home countries

Results of three-phase process

Description of dilemmas that small groups face such as: Individualism or collectivism Autocratic versus participative decision making Spontaneous versus orchestrated decisions before the

meeting Task orientation versus process orientation Quality versus quantity of actions taken

Smith and Berg’s Solutions

Movement away from a linear and non-paradoxical way of thinking to a nonlinear way of thinking that accepts paradoxes openly

Integrate each element of the paradox

The paradoxes that Smith and Berg identified are of a special type, namely dilemmas

Bottom Line of 3.10.

This paradox confirms that perception, leadership, motivation, and actual behavior differ significantly across culture, particularly when we compare collectivistic, authority-ranking cultures and individualistic, market-pricing cultures.

The End