Leadership Styles in Global Organizations

Presented by: Prof Mawousse A. Imaku,

University of Riverside Department of Business

Administration and Public Policy June 22, 2017

There is an ongoing demand for leaders that are able to work across global borders and influence best practices. Six Western leadership styles: Visionary, Coaching, Affiliative, Democratic, Pacesetting and Commanding are compared to traditional and contemporary Asian leadership styles.

The style of leadership may change based on stakeholders and leader objectives. In today's global marketplace, stakeholder and leader objectives may be differencing and require alternative methods of resolution. The author argues that a leader is most effective when styles are tailored/used together to achieve overall harmony between necessary stakeholders.

Abstract

Abstract

Rather than driving one particular style which may be detrimental to a global organization, Western corporations may gain insight into a harmonious versus aggressive model of leadership. To explore this issue, the author proposes developing a Leadership Scale for global organizations to effectively examine the nature of leadership traits combining both eastern and western influences. Critical analysis is needed to influence future study of leadership economics.

Leadership, leadership economics, cultural capital, management styles.

Keywords:

Introduction

In an increasingly globalized world, the nature of international business and commerce is constantly evolving (Cantwell, Dunning & Lundan 2009).

While much of this has to do with cross-cultural differences and technological innovation, the type of leadership adopted by business executives plays an equally important role in determining the success of global organizations (Dorfman et al. 2012).

All things considered, globalization is not the only factor that strengthens integration between parent and host companies around the world, for it also depends largely on the organizational culture which defines international business – a culture that essentially reflects the leader (Zheng, Yang & McLean 2010).

In an attempt to be successful, business executives are known to experiment with a number of different leadership styles, many of whom are noted as pioneers in the field of marketing and entrepreneurship (DeRue et al. 2011).

Management versus Leadership

Management versus Leadership

Indeed, in such cases, names like Steve Jobs and Richard Branson come to mind, for these are men who revolutionized the art of modern leadership in the West, generating astronomical profits from their unique business ventures (Bel 2010).

Despite the benefits of experimentation and innovation in leadership styles, however, it is important to keep in mind that there are two diametrically opposed styles which have little to nothing in common (Wendt, Euwema & Van Emmerik 2009).

While one of the two leadership styles is influenced by Asian traditions and discipline, the other is characteristically Western in nature, wherein both are distinguished for their cultural differences which are inevitably incorporated into their respective models of business (Wendt, Euwema & Van Emmerik 2009).

Discussion

Before delving into the differences between Asian and Western leadership styles – and the possible reasons for them – it is imperative that we fully understand the role of leadership in its own right (Dorfman et al. 2012).

This is to ensure that the term “leadership” is not confused or used interchangeably with management or administration, for though management and anot a holistic representation of the phenomenon itself (Wendt, Euwema & Van Emmerik 2009).

According to Jago, “[…] The process of leadership is the use of non-coercive influence to direct and coordinate the activities of the members of an organized group toward the accomplishment of group objectives. As a property, leadership is the set of qualities or characteristics attributed to those who are perceived to successfully employ such influence” (Holt & Marques 2012).

Organizational Culture

There are several variations within the two primary leadership styles, and the effectiveness of each style is best analyzed when measured against a leader’s goals and objectives (Chen & Miller 2011).

There are a variety of definitions for leadership development, almost as many as the people who have attempted to define it (Carroll & Levy 2008). Certain skills and traits are generally considered to be the building blocks of successful leadership around the world, whether it is in politics or business in the East or West (Chen & Miller 2011).

These skills weigh heavily on the scale of “emotional intelligence” – a measure that is growing increasingly popular among modern leaders, standing side by side with one’s intelligence quotient or IQ (Müller &

Turner 2010). When a person exercises these skills with

consistency in a business environment, they ultimately shape his/her behavior, creating a distinct persona which is very much characteristic of a leader (Gooty et al. 2010).

As with any partnership, it is imperative that both parties are familiar with each other’s cultural background, for in doing so, they reflect national values when demonstrating business ethics on a public platform (Wendt, Euwema & Van Emmerik 2009).

Western style leadership The concept of leadership has undergone

several stages of development in the United States, each one paving way for a new framework of business ethics, while sharing a common denominator which is epitomized as the very essence of Western leadership (DeRue et al. 2011).

According to recent studies, a leader’s ability to exert control over individuals within and beyond the parameters of a multinational business relies heavily on his/her emotional awareness and ability to harness these emotions for greater success (Gooty et al. 2010).

These emotions enable the leader to create an environment conducive to growth and creativity, in addition to motivating him/her to reach “self-actualization”, which is described as the final stage in Maslow’s hierarchy of needs (Goleman & Boyatzis 2008).

Western leadership is most commonly understood through six foundational models, which are responsible for influencing the organizational climate of an international business (Testa 2009).

Turner and Müller (2010) list the six Western schools of leadership as the following:

1. The trait school. 2. The behavioral or style school. 3. The contingency school. 4. The visionary or charismatic school. 5. The emotional intelligence school. 6. The competency school.

The conceptualized image of Western leadership changed drastically in the 20th century, introducing a new perspective which focused solely on two essential functions of an ideal executive (Novicevic et al. 2009).

Asian style leadership

Leadership styles reflect, in large part, a leader’s personal strengths and weaknesses – in addition to his/her cultural or geographical background (Dorfman et al. 2012).

Today, Western corporations consider emotional

intelligence to be the core of effective leadership, regardless of where business is conducted; as a result, however, they are kept from exploring other options (Müller & Turner 2010).

They stand in stark contrast to Asian style leadership which, though heavily influenced by Eastern philosophy and traditions, is nevertheless equally applicable to global organizations for encapsulating profound wisdom and knowledge (Low 2010).

Confucius, in particular, shaped the structure of Chinese government for about 2,500 years, listing four virtues that an effective leader must possess: Jen (love), Li (proper conduct), Xiao (piety) and Zhang prong (the doctrine of the mean) (Low 2010). As opposed to the contingency theory so popular in the West, Asian style leadership is centered on ancient.

Western corporations may learn a lot from Asian leaders simply by observing their practices and how they mold culture and tradition into the framework of leadership to influence business performance (Lin 2008).

This is to differentiate between the cultures and values of Asian countries wherein the South Asian cluster consists of India, Thailand, Malaysia, Iran, Indonesia, and the Philippines, while the Confucian-Asia cluster includes China, Hong Kong, Japan, Singapore, South Korea, and Taiwan (Resick et al. 2011) .

Japanese organizations are known to be influenced immensely by Confucianism, incorporating the philosophy into every aspect of the business to reap the benefits of effective leadership (Niu, Wang & Cheng 2009).

The structure of business is largely hierarchical and unbending, reiterating the significance of loyalty to the leader (Niu, Wang & Cheng 2009).

The focus on moral superiority makes Asian leadership considerably different from the kind practiced in the West, for it expects the leader to possess high moral virtues in order to inspire subordinates (Lin 2008).

This is very much in keeping with Japanese culture which focuses on creating harmony within the community.

In an attempt to fuse the same principles in the structure of a global organization, Japanese leadership is centered strongly on collectivism, wherein the leader refrains from giving individual feedback to employees (Niu, Wang & Cheng

Methodology

The proposed three – year project will be a mixed-methods research design suited to examine leadership styles in multi-national/global organizations and for the development of a leadership scale inclusive of eastern and western contributions.

The stages of the project include: Stage-1: Initial investigation. Identification of

200+ organizations to participate. Develop focus group. The emphasis will be on defining themes and further issues to be investigated.

Stage-2: Preliminary data analysis with the design, development, and pilot testing of surveys based on the feedback from focus groups.

The surveys will include Likert-scale items, closeended questions and open-ended questions to investigate global leadership capabilities.

Stage-3: Quantitative data collection from census and government records. This will be coupled with qualitative data collection from interviews with selected MNEs.

Stage-4: Data analysis and interpretation of the findings.

Stage-5: Final project report and dissemination of

the findings. During the summer of 2015, I will analyze the focus group data, design surveys and interview questions, and pilot test the surveys in order to refine them. Submission of a paper to disseminate preliminary findings are expected in the Fall 2016.

Conclusion

Although there are several variations within Asian and Western leadership styles, it always helps to know the logic behind each one and its overall effects on a company.

No specific style is good enough to be applied in an organization at all times, since every style has its own place for being effective in situations where others are not. However, it must be noted that much of these differences stem from the diversity of a global society, defined mainly by changing mindsets and an increasingly interconnected culture which thrives on globalization.

Thank you!!

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