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Cultural constraints in management theories”
Impact of globalization on leadership
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Technological advances in communications and transportation have dramatically increased cross-cultural interactions and interdependence in all types of organizations. Many
Consulting firms now offer to deliver or develop leader-competency models to help organizations identify, prepare, and develop leaders for cross-cultural interactions and responsibilities (Akiga, & Lowe, 2004). The Global Leadership and Organizational Behavior Effectiveness (GLOBE) international research project defined effective organizational leadership as "the ability of an individual to influence, motivate, and enable others to contribute toward the effectiveness and success of the organizations of which they are members" (McCrae, Terracciano, Realo, & Allik, 2008 ).
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The Mmost commonly found factors that can reduce the effectiveness of leadership are egocentrism and prejudice (Northouse, 2013). Egocentrism refers to the perception that one 's own culture is better than the culture of others, and it enables prevent leaders to recognize and respect the unique perspective of others. Egocentrism is a universal tendency and hard to avoid. A skilled leader should try to negotiate a fine line between trying to overcome egocentrism and knowing when to remain grounded in his/her own cultural values (Northouse, …show more content…
In this project, more than sixteen thousand managers in sixty-two different countries have participated in the survey. They analyzed the similarities and differences between regional clusters of cultural groups by grouping countries in to 10 distinct groups: Anglo, Latin Europe, Germanic Europe, Eastern Europe, Latin America, the Middle East, Sub-Saharan Africa, Southern Asia, and Confucian Asia (Northouse, 2013). One of the results of the GLOBE project was a report that lists which leadership qualities are universally accepted as contributing to exceptional leadership, which are universally seen as undesirable, and which are culturally dependent (Northouse,
Leadership at times can be a complex topic to delve into and may appear to be a simple and graspable concept for a certain few. Leadership skills are not simply acquired through position, seniority, pay scale, or the amount of titles an individual holds but is a characteristic acquired or is an innate trait for the fortunate few who possess it. Leadership can be misconstrued with management; a manager “manages” the daily operations of a company’s work while a leader envisions, influences, and empowers the individuals around them.
Caren, Siehl. Leading across cultures: China, 2004. Thunderbird, The Garvin School of International Management, 2004. (accessed January 14, 2014) (Caren, 2004)
The modern world has experienced tremendous changes, which have contributed to changes in people living in the global world. These changes have mainly been brought by globalization, which is a major phenomenon in the 21st Century. Leaders across various professions, businesses, and governments need to cope with globalization since it forces them to cross borders more often and communicate or conduct business with people from other cultures. This process involves developing necessary skills for working effectively in the modern complex world. Actually, the ability of these leaders to work effectively not only requires the development of essential skills but the application of leadership principles in the global work environment. In essence, leaders must develop their ability to apply leadership principles across culturally diverse workforce in today’s global work environment.
Hollander (1985) defined leadership as the process of influence between a leader and followers to attain group, organizational, or societal groups. Some leaders are innate, however now a days most of the leaders develop himself/herself by education. Education system takes a great place to develop leadership quality in context of globalization. “Students are now consumers who define quality education from a global perspective” (Drucker, 1995). Current education system has been changed in Asia basically in Thailand to create more efficient and effective leaders. There are lots of multinational and international organizations that are operating their businesses all over the world. Because of globalization cross-cultural workplaces has become a challenge for the organization. The culture of multinational or international organization has shared by the members of the organization. The individual level, the intra-organizational level and the inter-organizational levels are the three levels of contrast for cross-cultural organization. (Rhein, 2013)
Constant technological and global changes create challenges that forces leaders to manage different cultures in different countries. People, goods, services, and ideas are moving today at greater speeds which mean our labor force is becoming more diverse and multicultural by the day. Effective leaders need to understand such global dynamics in order to successfully manage organizational cultures. The cultures of leaders and their core assumptions might be different from the values and assumptions of employees in a different country. Two managers working for the same global company might see things differently due to their backgrounds and cultural values. The different countries, in which the organization operates, will have different cultures depending on the social, economic, and political history of the country. Managing and understanding these differences need an effective cross-cultural thinking leader (Yukl, 2013). Some research questions that Yukl, 2013 suggests are: 1) how behavior differs across cultural values and for different countries? 2) How values and behaviors are influenced by personality across company and country? 3) What types of traits, skills, and experience are most useful to prepare a leader being assigned to a new country? 4) How does the fast-changing culture in developing countries affect and relate to
Northouse, P. (2010). Leadership: Theory and practice (5th ed.). Thousand Oaks, CA: Sage Publications, Inc.
Cultures become more alike as they share technology and organizational structures in the modern world.
Globalization has many implications for leadership today and in the future. Global perspectives are being spread to the farthest points in the world and to the most isolated people. People of different cultures come to the United States daily to live, travel, or engage in business. Leaders must respond to this challenge of globalization so they can effectively reach out to as many people as possible. Opening themselves to the world's changes allows leaders to compare and contrast their culture with the arts, language, beliefs, customs, philosophies, and ways of living of other people. By observing and questioning another culture, leaders can understand the origin of an individual's viewpoints and become more sensitive to the cultural needs of that individual. By continually exposing themselves to other cultures, young leaders can thoroughly develop this global perspective and devote themselves to making connections with the entire world.
To compete in a global economy, organizations of all types are focusing on improving productivity, quality, and service. In each of these areas it is important to tap the talents of the available human resources in these organizations. Effective leaders must understand and depend on the interrelationship among organizational structure such as power, authority, influence and leadership. In addition how it abides in organizations and how it move others to accomplish the organization goals.
...Harris, Sarah V. Moran (2011). Managing Cultural Differences, Leadership Skills and Strategies for Working in a Global World. 8th ed. UK: Elsevier Inc.. 10-25.
In the past few decades, the world has experienced heightened globalisation. During this period, organisations have prioritised setting up leaders capable of dealing with the ever-increasing involvedness of running their global operations. Overseeing global talent along with career paths is consequently a decisive challenge in lots of multinational organisations. Individuals as well as organisations perceive International assignments as a constructive way of developing global occupational competencies (Brewster & Suutari, 2005).
McShane et al. (2016) emphasize that effective leaders have eight competencies, which are personality, self-concept, leadership motivation, drive, integrity, knowledge of business, cognitive, practical and emotional intelligence. Personality means leaders are extraversive and scrupulous. Followed by clear leader concept and high self-esteem which clarify self-concept definition. While leaders’ motivation to achieve the organization’s goal describe both leadership motivation and drive. Moreover, integrity related to honesty and other moral actions, as well as knowledge within business and practical ability of problem solving which called knowledge of business and cognitive and practical intelligence. To complete leaders’ competencies, ability
Leadership in organizations (4th Ed.). Prentice Hall: Upper Saddle River, NJ.Morrison, A. J. (2000). Developing a global leadership model [Electronic Version]. Human Resource Management, 39, 117. Retrieved March 24, 2014 from LIRN
Can the effects of cultural misunderstandings can be painful for the individuals, but also for the organization as a whole. Embarrassing situations and inadvertently insults, offenses and failure to achieve individual and organizational goals are among the consequences of the joint. Experience of many managers and researchers in the field of strategy, organization, and the development of the theory of the organization suggests all this ", the study of cultural issues at the organizational level is absolutely essential to a basic understanding of what goes on in organizations, and how it works, and how to improve" (Shin 1990).
To be successful in today’s global market, managers and leaders need to understand more than just technical skills. Managers and leaders should also understand globalization and organizational behavior. Globalization is the tendency of businesses, technologies, or philosophies to spread throughout the world, or the process of making this happen. The global economy is sometimes referred to as a globality, characterized as a totally interconnected marketplace, unhampered by time zones or national boundaries (Search CIO). Organizational behavior is a field of study that studies individuals groups, and structure. Organizational behavior applies the knowledge gained about individuals, groups, and the effect of structure on behavior in order to make organizations work more effectively (Robbins,2014).Gaining an understanding of globalization and its effect on organizational behavior is crucial to interacting effectively in the modern global economy. Globalization affects an organization’s behavior in several ways like stimulating hyper competitive pricing for a product or service, perpetuating continuous operations and communicating around the clock and globe, capitalism is replacing governmental control and organizations are no longer constrained by borders, and corporations are becoming more heterogeneous and adapting to people who are from different nationalities and cultures. To be successful in a global economy, professionals should have a thorough knowledge of sociology, psychology, communication, and management.