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Culture and Leadership

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Audrey Au

on 3 September 2012

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Transcript of Culture and Leadership

International Management 675 Culture and Leadership Define culture and leadership
Hofstede Cultural Dimensions
Case Studies - General Motors
and Toyota
Discussion Content AWL Culture

Audrey Au 13182234
Mei Luu 13955643
Welly 14811212 How might people from different
national cultures define leadership? Geert Hofstede

Based on a survey among 100,000 IBM employees in over 50 countries and 3 regions

Cultural dimensions:-
Power distance
Individualism vs collectivism
masculinity vs femininity
Uncertainty avoidance
long term orientation vs short term orientation

Received substantial criticism (e.g. Sivakumar and Nakata, 2001) Hofstede's Cultural Dimension Defining culture and leadership Hofstede Cultural Dimension Individualism vs collectivism Continuous improvements as risk management

Toyota Recall Crisis 2010 (Wu et al, 2010)
Decrease in reputation
Crtiticism on the way Toyota handled situation
Inconsistency: Dismissal, floor mat as the cause, recall for accelerator pedal replacement
Risk management - weak area?

Japanese uncertainty avoidance:
competence to act under pressure One of the leaders in car manufacturer industry

'The Toyota Way' (Wu et al, 2010, 136)
Lean manufacturing
Continuous improvements

Global Awareness

Focus on leadership culture Degree to which unequal distribution of power and wealth is tolerated (Hofstede, 2001).

High PD = authocratic and directive leadership
countries e.g. Malaysia, Mexico and the Philippines

Low PD = egalitarian leadership
countries e.g. Norway, Sweden and Finland Power Distance Individualism versus Collectivism Describe on how the extent to which a society stress achievement or nurture (Hofstede, 2001).

Masculinity is seen to be the trait which emphasizes ambition, acquisition of wealth and differentiated gender roles.

Femininity is seen to be the trait which stress caring and nurturing behaviors, sexuality equality,environmental awareness and more fluid gender roles. Masculinity versus Femininity Measure of whether people prefer to work alone or in groups (Hofstede, 2001). Japan and USA Uncertainty Avoidance Long-Term Orientation Collaborative (Democratic/Participative) Leadership This leadership style operate on the basis of shared power and management from all hierarchy level Autocratic (command and control) Leadership Leaders tell their employees what they want done and how they want it accomplished, without getting advice from their followers
One way communication General Motors (GM) Adopting autocratic leadership style
Hierarchy was strict and clear
Every worker performing one task
Mistake is not acceptable and need to be fixed as soon as possible
Employee work under pressure
General motors was lack of long-term vision and lack of attention to innovation and development of core competencies
Shifting to collaborative leadership style
Rely on innovation in HRM, work organization and employee involvement Table 1: Contrasting values between Individualism and Collectivism (Osterman, Coon and Kemmelmeier, 2002) Express the degree to which the member of a society feel uncomfortable with uncertainty and ambiguity.

UA in society has an impact on the characteristics associated with leadership (House et al, 1999).

High UA culture e.g. Germany focus on career stability, strict rules and regulations.

Low UA culture e.g. UK, flexibility and innovation are emphasized. Uncertainty Avoidance 余思敏 Long Term Orientation versus short term orientation Toyota Concept of Collectivism

Decision making:
Consultation from different stakeholders (Hasegawa and Noronha 2009, 185)
Time consuming? Top-down management leaders

Example (Deresky, 2008, 339):
Visible bar charts of individual work
Co-operative problem solving
Ethics? Toyota: Individualism vs Collectivism Toyota: Uncertainty Avoidance Long term orientation evident

Significant investment in employees
Intensive training
Employee growth

Developing Toyota way of thinking
Workplace rotations (Basu and Miroshnik, 1999, p.714 and Saruta, 2006, p.488)
Multi-skilled workforce

Multinational leaders
Time consuming?
Build long term thinking Toyota: Long Term Orientation What characteristics do you think would be required in multinational leaders?

With globalisation and the merging of cultures, do you think it is possible for there to be a unified definition of leadership? Discussion Basu, Dipak, Victoria Miroshnik. 1999. “Strategic Human Resource Management of Japanese Multinationals” Journal of Management Development 21 (1): 714-733. http://www.emeraldinsight.com.dbgw.lis.curtin.edu.au/journals.htm?articleid=880379&show=abstract

Deresky, H, 2008, International Management: Managing Across Broad and Cultures Sixth Edition. Person Prentice Hall

Frame, J. D. 2003. Managing Projects in Organizations: How to Make the Best Use of Time, Techniques and People.

Hasegawa, H., and C. Noronha. 2009. Asian Business and Management. UK: Palgrave Macmillan. CA: Jossey-Bass

Hofstede, G. 1984. Cultural Dimensions in Management and Planning. Asia Pacific Journal of Management 1(2): 81-99.

Hofstede, G. (2001). Culture’s consequences: Comparing values, behaviors, institutions, and organizations across nations (2nd ed.). Newbury Park, CA: Sage.

House, R. J., Hanges, P. J., Javidan, M., Dorfman, P. W., & Gupta, V. (Eds.) (in press). Leadership, culture, andorganizations: The GLOBE study of 62 societies. Thousand Oaks, CA: Sage. References: References: Culture
the collective programming of the mind which distinguishes the members of one human group from another (Hofstede, 1984).

a process of interaction between leaders and followers who intend or open to real change that reflect their shared common goods (Yukl and Howell, 1999). Liker, J and Ogden, T., 2011,"Toyota Under Fire: How Toyota Faced the Challenges of the Recall and the Recession to Come Out Stronger", McGraw-Hill Professional.

Oyserman, D., Coon, H. M., & Kemmelmeier, M., 2002, 'Rethinking Individualism and Collectivism: Evaluation of Theoretical Assumptions and Meta-analyses', Journal Of Psychological Bulletin, 128(1), 3–72. doi:10.1037/0033-2909.128.1.3

Rowe, W.G. 2001. Creating wealth in organizations: The role of strategic leadership. Academy of Management Executive 15(1): 81-94.

Saruta, M, 2006, “Toyota Production Systems: The ‘Toyota Way’ and Labour-Management Relations” Asian Business and Management 5 (4): 487-506. http://search.proquest.com.dbgw.lis.curtin.edu.au/docview/236639919/fulltextPDF?accountid=10382

Sivakumar, K., & Nakata, C. (2001). The stampede toward Hofstede’s framework: Avoiding the sample design pit in cross-cultural research. Journal of International Business Studies, 32, 555–574.

Turner, J. R., and R. Muller. 2005. The Project Manager's Leadership Style as a Success Factor on Projects: A Literature Review. Project Management Journal 36(1): 49-61.

Wu, Simon, Mauricio Blos, Ming Wee Hui and Yi-Li Chen. 2010. “Can The Toyota Way Overcome the Recent Toyota Setback?- A Study Based on the Theory of Constraints” Journal of Advanced Manufacturing Systems 9 (2): 145-156. http://web.ebscohost.com.dbgw.lis.curtin.edu.au/ehost/pdfviewer/pdfviewer?sid=a85772e4-ae53-4cde-8547-280106b9d0fc%40sessionmgr4&vid=2&hid=19

Yukl, G. & Howell, J. M., 1999, ‘Organisational And Contextual Influences On The Emergence And Effectiveness Of Charismatic Leadership’, The Leadership Quarterly, 10, pp.257-283. (Hofstede,1984) (Hofstede,1984) (Hofstede,1984) (Mueller, 1994) (Rowe , 2001) "Smedley, what's this nonsense about 63% of our employees not knowing how to do simple arithmetic? Good Lord, man! That's almost half!" (Hofstede,2001) was initially called Confucian dynamism and it describes societies’ time horizon (Hofstede, 2001) (Hofstede, 2001) (House et al, 1999) Bureaucratic Leadership Leadership style that follows policy and procedures
Their authority is based precisely on an understanding of the importance of filling out the paperwork properly Laissez-faire Leaders delegates the task to their followers while providing less or even no direction (Turner and Muller, 2005; Frame, 2003)
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