HRMG5064 People Management and Organisation

Words: 1000
Reference: Harvard

1. Explain how you would lead your organization. In doing so you are expected
to explore relevant theories of leadership that you would consider to arrive at
theories/practices/approaches that might be appropriate. You will evaluate and
justify your preferred approach/theory/perception/practice and why this/these
might be suitable (500 words)

There are several leadership theories which defines different approaches taken by
leaders. Often followed leadership approaches and their characteristics are
described by these leadership theories. Some of these key leadership theories are
Great Man Theory, Trait Theory, Contingency Theory and Situational Theory. These
theories are explored below:
Great Man Theory: According to this theory, the right traits of successful leaders are
charisma, confidence, communication skills, intelligence and these skills are always
have been part of a leader. This theory therefore suggests that leaders are born and
not made as these aforementioned traits are always there and requires cherishment
for better adoption of these characteristics. This is how successful leaders are
created, by enhancing their existing associated traits.
Trait Theory: Trait theory is somewhat similar to the Great Man Theory. This theory
identifies the characteristics of a potential leader and determines if based on the
characteristics they can be an effective leader in the future (Storey, 2016). These
characteristics or attributes are appearance, age, education, intelligence or their
background. These characteristics or attributes plays the decisive part for a leader to
become successful and effective.
Contingency Theory: The emphasis of this theory is on different variables within
specific settings, these variables can determine the leadership style which is suitable
depending on the specified settings. According to this theory, successful leaders
possess the ability to identify the requirements of their followers as well as the
qualities to lead them. Understanding of the followers' needs and requirements are
important aspect that defines a leader as successful.
Situational Theory: According to the situational theory of leadership, leadership
approach needs to be changed based on the specific situation and its needs. Thus,
no leadership approach is always best or always effective as different situations may
require different approach from the leaders to handle the situation. Therefore, the
ability to assess a situation is important as based on the assessment, leaders are
required to take action. Leadership styles and maturity level of the followers are two
elements of this theory (Ali, 2017). Four maturity level of the followers are suggested
in this theory and based on the maturity level a leader is expected to perform.

Based on the understanding from the various discussed leadership theories,

Situational theory of leadership is deemed to be suitable for this present scenario. As
the situation explained by the case study is volatile as 40% of the employees are
from foreign countries and working in China. Their work habits and perception
towards the management are bound to differ. Thus, people from different
backgrounds and people with different values required to be lead, situational theory
of leadership is appropriate as it focuses on the adaptation based on the situation
and differences among the followers. As head of this multinational corporation thus
incorporation of a more collaborative leadership style based on the situational theory
will help with the management of this diverse employee base as a result.

2. You will certainly face challenges with cultural differences. Explain the
theories within the study of culture, national culture and diversity that would
inform your thinking. Critically draw on this knowledge to mitigate inevitable
interpersonal and operational issues that will arise as a result of cultural,
behavioural and personality differences (500 words)

Hofstede's cultural dimensions is a widely used framework which can be used to

analyse the country specific cultures and diverseness. There are six dimensions in
this framework which acts as index and rated on a scale of 100 to demonstrate the
attributes (Abdullah, 2017). Following section will discuss China's cultural attributes
by demonstrating these six dimensions specific to China.
 Hofstede's Cultural Dimension Values (China)
Source: (Hofstede Insights, 2019)

Power Distance (PDI): Every individual of a society is not equal and thus their
attitudes towards others are different as well. High PDI score indicates power is
distributed unequally among people and people's accepting nature. China's PDI
score is 80, which shows that Chinese society inequality among people is acceptable
as a result.
Individualism (IDV): IDV scores indicates the interdependence of a society among
the members of the society. A low IDV score is the indication of people's interest
towards the benefit of society rather than themselves. China's score is 20 in the IDV
index shows that employee commitment to the organisation is low.
Masculinity (MAS): China's MAS score is 66 and which as a result shows a
masculine dependent society. High MAS score shows the urge to be best, while low
MAS scores suggests people's willingness to do what they like. China's MAS score
shows they prioritise work over personal lives.
Uncertainty Avoidance (UAI): This dimension demonstrates people's capability to
deal with anxiety. China has a UAI score of 30, which shows openness to change or
to the innovation.
Long Term Orientation (PRA): Earlier known as Pragmatic vs Normative
dimension, this is the fifth dimension of this framework. High PRA scores shows
modesty while low PRA scores shows values are emphasised. China has scored 87
in PRA scale and which suggests virtues and educations are emphasised.
Indulgence vs Restraint (IVR): China's IVR score is low and stood at 24, which as
a result demonstrates the restraint society. Thus, this score suggests a pessimistic
culture in this country.
Another widely used framework to analyse the culture is Schien's model of
organisational culture. According to this theory, culture is divided into three levels:
Artefacts and Symbols, Espoused Values and Basic Underlying Assumptions
(Kukreja, 2019). According to this theory, the work culture formed by the organisation
should be respected by every employee. As work cultures forms over the years and
according to the organisational values.

As employees from foreign countries have visited to work at the office situated at
China, it is expected that they will face various challenges, which is often referred as
Cultural Shock (Kim, 2017). Hofstede's cultural dimension theory has helped with the
illustration of perfect picture foreign employees are expected to face during their
tenure in China. Values on six different dimensions shows that China has an
autocratic culture and work is more emphasised than the personal space or leisure.
Thus, guidelines needs to be developed to mitigate future operations issues related
to the work culture. While development teams consisting with both local and foreign
employees will enhance the employee relations and will mitigate interpersonal issues
as well as cultural shock for the foreign employees.

Reference
Hofstede Insights (2019). Country Comparison - Hofstede Insights. [online] Hofstede
Insights. Available at: https://www.hofstede-insights.com/country-comparison/china/
[Accessed 8 Jan. 2020].
Kim, Y.Y., 2017. Cross-cultural adaptation. In Oxford Research Encyclopedia of
Communication.
Abdullah, A.B.M., 2017. Cultural Context. In Managing the Psychological Contract
(pp. 23-41). Palgrave Macmillan, Cham.
Kukreja (2019). Edgar Schein’s Model of Organizational Culture. [online]. Available
at: https://www.managementstudyhq.com/edgar-schein-model-theory.html
[Accessed 8 Jan. 2020].
Storey, J., 2016. Changing theories of leadership and leadership development. In
Leadership in Organizations (pp. 17-41). Routledge.
Ali, W., 2017. A Review of Situational Leadership Theory and Relevant Leadership
Styles: Options for Educational Leaders in the21st Century. Journal of Advances in
Social Science and Humanities, 3(11), pp.36401-36431.