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GROUP #2
Chapter 3: Leadership, Motivation, and Group
Behavior
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Chapter Introduction
• Generating Interest in Business• Leadership articles/books most published• Not only in United States but all over, such as
China
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Chapter 3
Chapter broken into 3 parts Leadership Across Cultures Motivation Across Cultures Group Behavior
These parts are explained by 10 paradoxes
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LEADERSHIP
Section 1
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FRAMING LEADERSHIP
Paradox 3.1
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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
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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
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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
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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
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Reasons for Motivation
Zone of Acceptance
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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
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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
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Application
How does any of this help us become better leaders? Polarity Management Ambiguity Management
Managing Opportunity Costs Jack Welch and Jeffery Immelt
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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)
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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
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WHO IS MORE EFFECTIVE, THE INSTRUMENTAL-VISIONARY-TRANSFORMATIONAL LEADER OR THE
HEADMAN?
Paradox 3.2
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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
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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
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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
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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
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GLOBE Study
62 National cultures broken down into 10 clusters
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Bottom Line of 3.2
Leadership styles in authority-ranking and market-pricing cultures
The GLOBE study
Transformational leadership
Visionary leadership
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WHEN SHOULD A LEADER ALLOW SUBORDINATES TO PARTICIPATE IN DECISION MAKING?
Paradox 3.3
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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)
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Other nations surveys show…
Positive links with respondentsConsider maximums and minimumsEmphasize difference between leadersCould unintentionally challenge values
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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.
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CAN AN EFFECTIVE LEADER BE SOMEONE WHO PUBLICLY HUMILIATES SUBORDINATES?
Paradox 3.4
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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?
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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
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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
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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)
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MOTIVATION
Section 2
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IS THE RELATIONSHIP BETWEEN MOTIVATION AND ABILITY ADDITIVE OR MULTIPLICATIVE IN THE
PREDICTION OF INDIVIDUAL SUCCESS AND PERFORMANCE?
Paradox 3.5
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Helps us answer two questions
What is the relationship between performance and success?
What is the relationship between ability and motivation?
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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
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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
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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).
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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
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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
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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).
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CAN AN INDIVIDUALLY BASED NEED HIERARCHY EXIST IN A COLLECTIVISTIC CULTURE?
Paradox 3.6
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Maslow’s Hierarchy of Needs
Experts have reduced the theory to 2 Levels: 1. Physiological and Safety 2. Higher-order Needs
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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
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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
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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
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DO EFFECTIVE EXECUTIVES ATTRIBUTE SUCCESS TO THEMSELVES OR TO OTHERS?
Paradox 3.7
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Topics Covered
Leadership vs. Motivation
Attribution Theory
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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
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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
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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.
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GROUP BEHAVIOR
Section 3
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DO GROUPS CONTAIN FREE RIDERS, OR ARE ALL MEMBERS EQUALLY RESPONSIBLE CONTRIBUTORS?
Paradox 3.8
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Group Behavior
Linear four-step pattern Forming Storming Norming Performing
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Bottom Line of 3.8
Free rider effect Peer-group ratings
Group sizes
Culture Individualistic Collectivistic
China
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IN GENERAL AND IN SMALL GROUPS, DO THE PERSONALITIES OF INDIVIDUALS PRIMARILY
REFLECT THE INFLUENCE OF CULTURE?
Paradox 3.9
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Culture’s Influence on Personalities
Collectivistic
Individualistic
Can deviate from the culture’s values
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Your Personality
What personality type are you?
‘20 Items’ Finish the phrase “I am…” with adjectives, items, or
descriptions
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Personality Interaction
The criticality of the culture generally determines a person’s tendency toward a personality
Both personalities will adopt to the group norm
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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
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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
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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
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SHOULD MULTICULTURAL GROUPS BE MANAGED DIFFERENTLY FROM SINGLE-CULTURE GROUPS?
Paradox 3.10.
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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
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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
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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
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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
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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.
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The End