CROSS CULTURAL

MANAGEMENT

US, JAPANESE AND EUROPEAN

STYLES OF LEADERSHIP

SUBMITTED TO: SUBMITTED BY:

DR. AUBID KUMUD GOEL
PARREY
28- MBA- 15
US STYLE OF LEADERSHIP
In the US, leadership means getting things done, finding short cuts to
prosperity, making money for oneself, ones firm and shareholders. Chief
executives are given responsibility and authority and then expected to act.
They seldom fail to do so. Similarly, the motivation of US managers and their
staff does not have the labyrinthine connotations that it does in European
and Asian companies, for it is usually monetary. Bonuses, performance
payments, profit sharing schemes and stock options are common. Managers
are capable of teamwork and corporate spirit, but value individual freedom
more than company welfare. They are very mobile. They can get fired if they
make mistakes.

Leadership Styles in America

Leadership styles are more varied in America today than in Asia. In America
there are five:

Directive
Participative
Empowering
Charismatic
Celebrity (superstar)

The first four reflect how an executive deals with subordinates in the
company; the final one is directed at people outside the firm.

Directive leadership is well known in America, but is declining in

frequency. It stresses the direction given by executives to others in the firms.
The leader is very much in charge. This style is very common in Asia.

Participative leadership, which involves close teamwork with others, is

more common in Europe, where it is sometimes required by law (as in
northern Europe, especially Germany) than in America. It is also common in a
variant colored by national cultural norms, [as] in Japan.

Empowering leadership is relatively new, and stresses delegation of

responsibility to subordinates. American companies that operate with largely
autonomous divisions employ this style of leadership. A few younger Asian
business leaders now espouse this style (for example, the CEO of Banyan
Tree Resorts).
ADAPTABILITY IS ... LESS COMMON AND LESS VALUED IN ASIA AND
EUROPE. IT WILL BE NEEDED EVERYWHERE SOON ENOUGH.

Charismatic leadership is the leader who looks like a leader. People follow
such a leader because of who he is, not because of good management or
even business success; nor because [the people] are offered participation,
partnership, or empowerment. Human magnetism is the thing, and it is very
different in different national cultures. What looks like a charismatic leader to
Americans may appear to be something very different to people from other
societies.

Celebrity leadership is very different. It looks outside the company to the

impact on otherscustomers and investors. The CEO becomes a star and is
sought after by the media like a screen star. Ordinarily it requires good looks,
a dramatic style, and an ability to deal effectively with the media. It is in a bit
of a slump in the United States right now due to the corporate financial
reporting scandals, which have focused attention on CEOs with the ability to
get things done right in the company; but celebrity leadership will make a
recovery. Boards looking for top executives to revitalize a firm look for
superstars; they seek outgoing personalities.

There are nine key qualities that research shows people seek in a
successful leader:

Passion
Decisiveness
Conviction
Integrity
Adaptability
Emotional Toughness
Emotional Resonance
Self-Knowledge
Humility

The emotionalism that goes with passion is more common in America than
elsewhere. Europeans see it as a sort of business evangelicalism and are
very suspicious of it. Decisiveness is common to effective executives in all
countries: In this regard European and Japanese chief executives are the
most consensus- oriented, and Chinese and American top executives are
more likely to make decisions personally and with their own accountability.

Conviction is common to all.

Integrity is a complex characteristic very much determined by national
cultures. What is honest in one society is not in another, and vice versa.

Adaptability is a pronounced characteristic of American leadership

generally. It is less common and less valued in Asia and Europe. It will be
needed everywhere soon enough.

Emotional toughness is common to all top executives; Americans spend

more time trying not to show it.

DEEP POLITICAL INVOLVEMENT IS STILL A ROUTE TO BUSINESS

SUCCESS IN AMERICA, BUT IT IS MUCH LESS COMMON THAN IN ASIA.

Emotional resonance, the ability to grasp what motivates others and

appeal effectively to it, is most important in the United States and Europe at
this point in time. It will become more important in Asia as living standards
improve, knowledge workers become more important, professional
management gets greater demand, and CEOs have to compete for
managerial talent.

Self-knowledge is important in avoiding the sort of over-reach so common

in America; it is less common a virtue in America than in Asia, and is strength
of the Asian executive.

Humility is a very uncommon trait in the American CEO. It is sometimes

found in Asia. It is often a trait of the most effective leaders, as it was in the
best-respected of all American political leaders, Abraham Lincoln. Once,
when the Civil War was not going well for the Union side, a high-ranking
general suggested that the nation needed to get rid of Lincoln and have a
dictatorship instead. The comment came to Lincoln's ears. Lincoln promoted
the general to the top command in the army anyway and told him, "I am
appointing you to command despite, not because, of what you said. Bring us
victories, and I'll risk the dictatorship."
JAPANESE STYLE OF LEADERSHIP
Japanese top executives have great power in conformity with Confucian
hierarchy, but actually have little involvement in the everyday affairs of the
company. On appropriate occasions they initiative policies which are
conveyed to middle managers and rank and file. Ideas often originate on the
factory floor or with other lower level sources. Signatures are collected
among the workers and middle managers as suggestions, ideas and
inventions make their way up the company hierarchy. Many people are
involved. Top executives take the final step in ratifying items which have won
sufficient approval.

Common Japanese Culture Characteristics

Modest Power Distance

Relations based on hierarchical position, social status,

education, and seniority;
Listen to supervisors and obey their instructions;

Institutional Collectivism
 Emphasis on teamwork and group assignments;
Performance is evaluated by group not by individual;
Harmonious working relationship and team cohesion are
important

High Masculinity

Distinct gender role

Male dominated society
Work hard and have high level of loyalty

Modest Uncertainty Avoidance

Prefer to use a set of rules, protocols, and regulations to avoid

making mistakes

Long Term Orientation

Long term business plan

Long term reward, incentive and benefit

US V/S JAPANESE LEADERSHIP

Philosophical Japanese Approach U.S. Approach

 Dimension

Employment Often for life; layoffs are rare Usually short-term; layoffs are
common

Evaluation and Very slow; big promotions may Very fast: those not quickly
promotion not come for the first 10 years promoted often seek
employment elsewhere

Career paths Very general; people rotate from Very specialized; people tend to
one area to another and become stay in one area (accounting,
familiar with all areas of sales, etc.) for their entire careers
operations

Decision making Carried out via group decision Carried out by the individual
making manager

Control mechanism Very implicit and informal; Very explicit; people know
people rely heavily on trust and exactly what to control and how
goodwill to do it

Responsibility Shared collectively Assigned to individuals

Concern for employees Managements concern extends to Management concerned

the whole life, business and basically with the individuals
social, of the worker work life only

US VS/S EUROPEAN LEADERSHIP

1. Symbolic vs practical leadership
In the US., leaders represent the values of society and the company. The
values of the team are embedded in their persona. The success of leaders is
reflected in their prototypicality representing the team. In contrast, European
leaders are seen as problem-solvers someone who identifies performance
gaps and make decisions to solve problems. Whereas symbolic leadership is
based on an emotional bond with followers who personally identify with the
leader; practical leadership is based on a rational and practical relationship.
2. Providing a light versus a hand
Leaders can provide a light that guides their followers to show the way or,
instead, they can hold their hands to walk with them. American leaders give
followers a light with a map a set of values that serves as a guide. Once
these values are internalized, employees can operate in a more autonomous
manner. In contrast, European leaders tend to offer a helping hand to their
followers who feel protected under the leaders candor and directness.
Although this leadership styles can be very effective because of its
closeness, it creates more dependence on the leader.

3. Leading by biography versus data

Leading by biography is typically done by American leaders.Leaders use
portions of their life story to connect with people. They like to tell courage
and heroic tales, like the popular discourse of Steve Jobs. Instead, discretion
is a more common practice among European leaders. Take the example of
Amancio Ortega. This is consistent with a collectivistic culture in which
personal success might create envy and break the social order.

In the end, all leaders must gain the respect and credibility from their
followers, but there are key differences as to how they do it. Whereas
American leaders tend to resort to personal values, a sense of direction and
success; European leaders prefer to rely on problem-solving, direct
management and rational logic.

BIBLIOGRAPHY
http://www.crossculture.com/uncategorized/6-leadership-styles-around-
the-world-to-build-effective-multinational-teams/
http://hbswk.hbs.edu/item/asian-and-american-leadership-styles-how-
are-they-unique
http://yousigma.com/tools/japanesevsusleadershipstyles.html
http://margaritamayo.com/2016/10/leadership-in-europe-and-us-whats-
the-difference.html