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International Management: Managing

Across Borders and Cultures


Tenth Edition

Chapter 11
Motivating and Leading

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Learning Objectives
11.1 To understand the complexity and the variables
involved in cross-cultural motivation
11.2 To become familiar with the global leader’s role and
environment and what makes a successful global leader
11.3 To discuss the research on leadership and how
leadership styles and practices vary around the world
11.4 To understand the variables that necessitate
contingency leadership: culture, context, people, and
situations

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Opening Profile: Motoi Oyama of Asics:
The Globally Minded Shoe Ambassador (1
of 2)

• In 2001, after Motoi Oyama moved to the Netherlands to


become head of Asics Europe, survey respondents
thought Asics was American.
• His leadership focused on leveraging the borderless,
function-obsessed nature of sports.
• Asics failed to respond to fitness trends in the United
States—a softer sole than his company was producing.

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Opening Profile: Motoi Oyama of Asics:
The Globally Minded Shoe Ambassador (2
of 2)

• Mr Oyama believed that shoe design should use


biomechanical data.
• That imperative has demanded leadership.
• The company bought fitness-tracking app Runkeeper.
• The user data produced MetaRide—a $250 shoe that can
bring Asics back to the top of its game.

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Motivation
• Affected by many power variables
– Societal
– Cultural
– Political
• Are effective motivational and leadership techniques
universal or culturally based?

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Learning Objective 11.1

To understand the complexity and the variables involved


in cross-cultural motivation

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Cross-Cultural Research on Motivation
(1 of 2)
High Uncertainty High Power Distance
Avoidance
• Suggests the need for job • Suggests motivators in
security, whereas low boss–subordinate
uncertainty suggests relationship, whereas low
motivation by risky power distance suggests
opportunities motivation by teamwork
and peers

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Cross-Cultural Research on Motivation
(2 of 2)
Individualism Masculinity
• Suggests motivation from • Suggests people are more
opportunities for individual comfortable with traditional
advancement and division of work, whereas
autonomy, whereas femininity suggests looser
collectivism suggests boundaries and flexible
appeals to group goals and roles
support

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The Meaning of Work (MO W)
• Factors Most Valued About Work
– A needed income
– Interest and Satisfaction
– Contacts with others
– A way to serve society
– A means of keeping occupied
– Status and prestige

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Islamic Work Ethic
Exhibit 11-1
• Laziness is a vice
• Dedication to work is a virtue
• Good work benefits one’s self and others
• Justice and generosity in the workplace are necessary for
society’s welfare
• Life has no meaning without work
• More leisure time is good for society
• Human relations in organizations should be emphasized and
encouraged
• One should constantly work hard to meet responsibilities

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The Needs Hierarchy in the International
Context (1 of 2)
• Managers around the world have similar needs, but
derive different levels of need satisfaction from their jobs
– Japanese conferring recognition with plaques,
applause
• Variables other than culture may be at play
– E.g., China: Focus on the needs of society

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The Needs Hierarchy in the International
Context (2 of 2)
A Proposed Chinese Hierarchy
• Self-actualization in the service of society
• Physiological needs
• Safety
• Belonging

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Comparative Management in Focus:
Motivation in Mexico (1 of 2)
• Family is of central importance, but this focus often leads to
absenteeism and turnover.
• For males, the value of work is its ability to help them fulfill
breadwinner responsibilities.
• Effective management style is authoritative and paternal.
• Workers doubt their ability to influence the outcome of their
lives.
• Motivation occurs through training examples, cooperation,
and subtle shaming.
• Motivation through participation may not be effective.

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Comparative Management in Focus:
Motivation in Mexico (2 of 2)
• Paternalistic and hierarchical traditions.
• Country’s economic context makes money a
motivation.
• Fringe benefits are important, specially those that
help to manage family related issues.

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Conflicting Motivational Techniques in
Western–Russian Joint Ventures
Western Managers to Russian Managers to
Russian Employees Russian Employees
Be independent; have Stick to the rules and
initiative procedures
Learn from mistakes and Mistakes are not allowed and
move on should be punished
Take the long-term Focus on the present
perspective
Be a team member Stick to your own job and
business

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Under the Lens: Bad Bosses Are Making
the U K’s Productivity Puzzle Worse
• Poor British Management is part of the productivity
problem.
• U K practices lag behind other leading economies.
• The gap between the best businesses and the rest
remains wide.
• Having a boss judged by staff to be highly competent
affects job satisfaction.
• Bad managers are the product of bad business models.

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The Role of Culture in Job Motivation
Exhibit 11-2

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Reward Systems
• United States
– Focus on financial, social status, job content, career,
and professional
• Japan
– Focus on seniority, bonuses, and permanent workers;
competition discouraged
• China
– Focus on social benefits, shift to pay-for-performance
and equity-based rewards

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What Helps Employees to Thrive in the
Workplace in Various Countries
Exhibit 11-3

Source: Global Talent Trends 2019, Mercer.com; p. 22.

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Learning Objective 11.2

To become familiar with the global leader’s role and


environment and what makes a successful global leader

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The Global Leader’s Role and
Environment
• The greatest competitive advantage global companies
can have is effective global leaders.
• This competitive challenge requires managerial and
cultural changes.
• Global leaders must broaden their horizons—strategically
and culturally.
• They must develop a more flexible model of leadership.

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The Global Mindset of Successful Leaders
Exhibit 11-4
Personal Work Style General Perspective
• High “cultural quotient” (C Q) • Broad system perspective
• Open minded and flexible • Personal autonomy and
emotional resilience
• Effective cross-cultural
communicator and collaborator • Change is welcomed and
facilitated
• Team player in a global matrix
• Enables boundary-less
• Supports global objectives and organization
balances global with local goals
and practices • Operates easily in cross-cultural
and cross-functional
environment
• Global learning is sought for
career development
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Under the Lens: Japanese Boards Move to
Open Up to Overseas Executives
• Toyota wants more flexibility on executive compensation
to attract foreign executives.
• Toyota plans to inject more diversity into its management.
• Management consists of long-serving Japanese
executives.
• The shift adds international flavor to corporate strategies.
• Japan’s reliance on seniority-based management is
crumbling.

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Maximizing Leadership Effectiveness
• Representative of the parent firm
• Manager of the local firm
• Resident of the local community
• Citizen of the host country
• Member of a profession
• Family member

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The leader and the Job
• Leadership experience and technical knowledge
• Cultural adaptability
• Clarity of information available in host area
• Level of authority and autonomy
• Level of cooperation among partners, government, and
employees

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The Job Context
• Level of authority granted to leader
• Physical location and local resource availability
• Host professional contacts and community relations
• Organizational structure, scope of internationalization,
technology, and so on
• Business environment: social-cultural, political-economic,
level of risk
• Systems of staffing, coordination, reward system and
decision making, locally and in-home office

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Under the Lens: French Companies Lead
the Way on Gender Diversity
• France’s moves to increase gender diversity are paying
off.
• French companies have an average of 44 percent of
women on their boards.
• France has proposed a requirement to narrow the gender
pay gap or fact fines.
• Increasing diversity in the leadership requires
organizational change.

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Learning Objective 11.3

To discuss the research on leadership and how


leadership styles and practices vary around the world

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Cross-Cultural Research on Leadership
• Effective leadership varies across cultures.
• People have accepted images of what a leader should
be.

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Management in Action: Leadership in a
Digital World
Key differences between e-businesses and traditional
organizations
• Making decisions fast
• Maintaining flexibility
• Focusing on the vision

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Learning Objective 11.4

To understand the variables that necessitate


contingency leadership: culture, context, people, and
situations

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Contingency Leadership: The Culture
Variable
The G LO B E Project
• The Dutch are skeptical about the value of leadership.
• Arabs worship their leaders—as long as they are in
power.
• Malaysians expect their leaders to be humble, modest,
and dignified.
• The French expect leaders to be “cultivated”.

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Culturally Contingent Beliefs Regarding
Effective Leadership Styles
Exhibit 11-5
Self- Participati Autonom
Country Charisma Team Humane
Protective ve ous

Brazil 6.01 6.17 3.50 6.06 4.84 2.27

China 5.57 5.57 3.80 5.05 5.18 4.07

Denmark 6.01 5.70 2.82 5.80 4.23 3.79

India 5.85 5.72 3.78 4.99 5.26 3.85

Mexico 5.66 5.75 3.86 4.64 4.71 3.86


United
6.12 5.80 3.16 5.93 5.21 3.75
States

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Facilitators of Leadership Effectiveness
• Trustworthiness (integrity)
• Visionary (charismatic-visionary)
• Inspirational and motivating (charismatic-inspirational)
• Communicative (team builder)

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Universal Impediments to Leadership
Effectiveness
• Being a loner and asocial (self-protective)
• Non-cooperative (malevolent)
• Dictatorial (autocratic)

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Culturally Contingent Endorsement of
Leader Attributes
• Individualistic (autonomous)
• Status-Conscious (status-conscious)
• Risk-Taking (charismatic: self-sacrificial)

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The Culture Contingency in the Leadership
Process: An Integrative Model (1 of 2)
Exhibit 11-7
Context

Content

Leader-Follower
Situation

Motivation
Effects

Outcomes

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The Culture Contingency in the Leadership
Process: An Integrative Model (2 of 2)
Exhibit 11-7

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Leader in a Global Context
• Leadership is not just manager subordinate relationship,
running the whole company, division or unit
• Vital to be able to adapt one’s leadership style to the local
context
• “National and cultural differences can both bedevil and
enliven business.”
• Listen hard and “How are you going to go about meeting
this goal?”

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Conclusions (1 of 2)
• Motivation and leadership are factors in the successful
implementation of desired strategy
• Content and process are culture-contingent-reflecting
individual’s needs, value systems, and environmental
context
• Concepts such as achievement or esteem may have
different meanings in other countries
• Studies on the meaning of work indicate considerable
cross-cultural differences

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Conclusions (2 of 2)
• Hofstede’s power distance, uncertainty avoidance,
individualism, and masculinity explain the cultural
contexts of motivation
• Incentives/rewards are contingent on culture as is
leadership style
• The challenge is to decide what is effective leadership in
different international or mixed-culture situations.
• JVs are complex situations for cross-cultural leadership

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