CHAPTER ELEVEN REVIEW MATERIALS
(“GLOBAL LEADERSHIP ISSUES AND PRACTICES”)
; GLOBALIZATION IS NOT ONLY CREATING MANY NEW BUSINESS
OPPORTUNITIES, IT IS ALSO CREATING OPPORTUNITIES FOR A
NEW BREED OF LEADERS THAT HAVE THE “RIGHT STUFF” FOR
OPERATING IN AN INCREASINGLY GLOBALIZED WORLD!!
; BRIC NATIONS (BRAZIL, RUSSIA, INDIA, AND CHINA): These are
emerging market countries with very rapid economic growth.
Large markets and business opportunities are being created in
these (and other developing nations) countries.
; The revolution in communications and computer technology,
including the internet, social media, smartphones, and other
developments, is enabling diverse and geographically dispersed
groups of employees to collaborate in their work and to lear
fromand with each other.
; Developments in shipping and logistics are heightening pressure
on companies to reconfigure their value chains in order to
; Expanded geographic scope of operations is exposing companies
to different regulatory environments, a more diverse set of
suppliers and competitors, and exposure to a variety of
International companies are now requiring a new type of
In order to compete successfully in this complex and
Dynamic global environment!!
Question: can you be that “GLOBAL” leader???
; To begin with, there is no “universal” approach to selecting and developing GLOBAL
; However, obtaining a strong grasp of the business fundamentals that underlie
international business is an important first step to developing GLOBAL LEADERS. ; Understanding “international business fundamentals” is certainly a first step to
developing GLOBAL LEADERS.
; GLOBAL MINDSET: Combines an openness to and an awareness of diversity across
markets and cultures with a propensity and ability to synthesize across this diversity. ; GLOBAL MINDSET HAS TWO KEY COMPONENTS; 1.intellectual intelligence (which
includes “business acumen”), and 2. Global emotional intelligence (which includes
self-awareness, cross-cultural understanding, cultural adjustment, and cross-cultural
; Global managers definitely appreciate why certain things cannot be done a certain
way in a different culture, but global managers are “incisive” (meaning they push the
limits of the culture, and just do not say it cannot be done…..rather, they try to sift
through the culture and find opportunities to innovate).
; Leadership, per se, refers to THE BEHAVIORS AND PROCESSES INVOLVED WITH
ORGANIZING A GROUP OF PEOPLE IN ORDER TO ACHIEVE A COMMON PURPOSE OR GOAL.
; Warren Bennis differentiates between “leadership” and “management” as follows:
1. The leader innovates; the manager administrates
2. The leader develops; the manager maintains
3. The leader challenges the status quo; the manager accepts it
4. The leader has a long-range perspective; the manager has a short-term
5. The leader asks “what?” and “why?”; the manager asks “how?” and “when?”
6. The leader originates; the manager imitates
7. The leader inspires; the manager controls
; There is the same required leadership competencies associated with leadership in “domestic” settings, and those in “global” settings, but the degree of difference in the
level of demands on skills and their application in international is GREAT.
; Globalization introduces additional challenges for companies, including the development of managers who have the ability to understand and operate in the worldwide business environment and to provide a global perspective on leadership of their organizations.
; Four overlapping dimensions of complexity that are relevant to globalization and the challenges confronting global leaders include:
1. Multiplicity (the geometric growth in the volume and nature of issues that
must be dealt with)
2. Interdependence (although dispersed geographically, the different units of the
company are systematically linked to each other rather than being isolated and
are increasingly dependent on external organizations
3. Ambiguity (the challenge of dealing with information that lacks clarity and
incorporates both quantitative and qualitative dimensions, hindering the
understanding of cause-and-effect relationships)
4. Dynamism (the international system itself is constantly changing)
; Range of roles of a GLOBAL LEADER INCLUDE:
1. Monitoring(scanning environments, seeking information, etc.)
2. Spokesperson (advocating and representing the company through
3. Liaison (networking, coordinating, spanning boundaries within and across
4. Leader (motivating and coaching individuals and teams, building and
maintaining corporate culture)
5. Negotiator (making deals, managing conflict)
6. Innovator (seizing opportunities, generating new ideas, promoting a vision for
7. Decision maker (troubleshooting and making decisions often)
8. Change agent (taking action, developing and implementing change plans for
; Therefore, SKILLS that are required for GLOBAL LEADERS include:
1. Adaptability across cultures
2. Capability to develop individuals from and across diverse cultures
3. Global strategic thinking
4. Ability to establish business in new markets
5. Capability for building global teams
6. Competency in interacting with local political interests
; NOTE: There is a more significant impact of EMOTIONAL STABILITY, ABILITY TO LEARN,
AND DECISION-MAKING AND NEGOTIATING ROLES for global leaders than is the case
for domestic business leaders!!
; STUDY FIGURE 11.1 ON PAGE 283: Terrence Blake’s “Global Leadership Triad” which
shows that an international business leader needs 1. Business acumen, 2. Relationship
management skills, and 3. Personal effectiveness
; Pyramid Model of Global Leadership (page 283)
; The “RIGHT STUFF” Model on page 287 basically says “the individual company’s global
business strategy is a major determinant of the relevant lessons that the global
leadere needs to learn and the skills that will be developed, and therefore what
represents the “right stuff” for a global leader WILL VARY ACROSS ORGANIZATIONS.
; To develop the skills necessary to be a good global leader REQUIRES MORE THAN A
UNIVERSITY DEGREE WHERE COURSES WERE TAKEN IN “INTERNATIONAL BUSINESS.”
; Indeed, it is necessary for the individual to perhaps 1. Study abroad, 2. Living with
host families for a period of time, 3. International internships, 4. Pursuing
opportunities to work abroad with your company, etc. etc.
; The goal of the leadership development process is to obtain a variety of
“TRANSFORMATIONAL” EXPERIENCES !!!
; GLOBAL TEAMWORK: Many companies have global teams working on international
business situations/opportunities. These teams can be characterized by high levels of
diversity, geographic dispersion, and virtual rather than face-to-face interaction!! ; Leading teams is COMPLEX……This requires training, coaching the team leadership,
proper rewarding of team members, etc.
BOTTOM LINE: LEADING ORGANIZATIONAL CHANGE IS ALWAYS A DIFFICULT PROCESS, LARGELY BECAUSE IT DEALS WITH CHANGING INDIVIDUAL BEHAVIORS!!!
THE ASPECTS OF CULTURE ARE RELATED TO THE PROCESS OF CHANGE…..INDEED, THE
INFLUENCE OF “NATIONAL CULTURE” IS STRONGER THAN THE INFLUENCE OF “ORGANIZATIONAL CULTURE” ON CHANGE EFFORTS!!
CULTURES THAT ARE CHARACTERIZED BY HIGH TOLERANCE OF AMBIGUITY,
THAT IS, CULTURES THAT HAVE LOW “UNCERTAINITY AVOIDANCE, ARE LIKELY TO BE MORE “CHANGE-FRIENDLY’ (E.G., THE USA IS EASIER TO LEAD CHANGE THAN IT IS IN CULTURES LIKE JAPAN, GERMANY AND FRANCE WHERE THE CULTURES HAVE HIGH “UNCERTAINITY AVOIDANCE.”