National differences in Leadership. Scientific Elaboration

Table of content

II. List of Figures

1. Introduction and structure of the work

2. Thesis

3. Definitions
3.1. Ethnocentrism
3.2. International Success

4. Leadership
4.1. Leadership Definitions
4.2. Leadership Styles
4.3. Team-thinking vs. Leader-thinking

5. Culture and dimensions of culture
5.1. Opportunities and risks of cultural dimensions
5.2. Diversity
5.3. Case study to the topic
5.4. Critical reflection of the thesis

6. Recommendation for action

7. Summary

8. Conclusion

III. Bibliography

IV. Appendix

II. List of Figures

Fig 1 Performance indicators for companies based on (Gabler, 2015)

Fig 2 Leadership Styles (Clark, 2015)

Fig 3 characteristics of the leadership styles (author, 2015)

Fig 4 Culture dimensions based on (Hofstede, 2001)

Fig 5 Fig Necessary conditions for successful leaders based on (Kinicki & Kreitner, 2009)

1.Introduction and structure of the work

This scientific elaboration is concerned with the various leadership styles and their transferability to different nations and cultures. Let me start with this chapter, which contains a brief introduction and an overview of the structure of the work. First, I'll introduce you to a thesis that in the course of this work is to serve as a guide and should be verified or falsified depending depicted reasoning. In addition, I will introduce you to the topics of leadership styles and cultural dimensions, as these important factors have on the "differences in national leadership”.

2.Thesis

The alignment of a company is of fundamental importance for the success of each company. The implementation of a carefully crafted strategy helps. To what extent the management style and as well as the company´s culture as well as the culture of each country has influence to the company's success should be checked using the following thesis:

“Lack of involvement of different cultures in leadership prevents international success.”

This thesis assumes that companies and leaders do not achieve international success if these ignore the different cultures in their leadership style. This means for a company on the one hand that it can achieve economic success and reputations in their home country, but on the other hand the companies or their leaders fail in foreign nations.

3.Definitions

The following definitions are listed here in order to facilitate the understanding, as these terms are of central importance in this scientific elaboration. These are the two relevant terms "Ethnocentrism" and "International success". The other two issues of "leadership" and "culture / cultural dimensions" are separately discussed and differentiated in the following chapters.

3.1. Ethnocentrism

The term has also been defined Ethnocentrism by several authors, I would therefore like to introduce you to two selected definitions that are very true in my opinion. I have decided for one definition from the German-speaking world and one definition from the English-speaking world, to illustrate that the perspectives are nearly identical:

“Ethnocentrism is the belief that one´s native country, culture, language and behaviour are superior.” (Kreitner & Kinicki, 2013).

The term Ethnocentrism originally comes from the Greek ethnos = Greek: folk and it is defined as: “Ethnocentrism refers to a political setting that the values (e.g. Religion) and the special features (e.g. as skin colour) of their own ethnic group over the other nations is or takes valuation basis” (Schubert Klaus, 2011). With this perspective the characteristics that are attributed to one's own group, generate in this way a real and or perceived superiority.

Reference for thesis

The term ethnocentrism is described as a point of view, in which the characteristics of one's own group are estimated in relation to other cultures as superior. There is no distinction whether the superiority actually exists or is only perceived as such.

The attitude includes a high probability that other cultures are considered to be not equivalent, but on the contrary as inferior. This can lead to lack of involvement with other cultures and thus prevent the international success. Therefore, the different cultures must be considered in any case in the National Leadership Styles.

3.2. International Success

International success can be expressed in a number of factors, e.g. in market share, to have return on investment (ROI) or (profitable) locations in several countries and continents. As an example of the key performance indicators the calculation of the ROI is shown briefly at this point:

ROI = (Gain from Investment - Cost of Investment) / Cost of Investment (Philip, 2003).

The return on investment can also be specified as a percentage to represent the ratio; in this case the result of the above formula is, multiplied by 100. The decision which is the most important factor for international success is dependent on the company's management or the indicator of the respective industry. In the illustrated chart below you can see which indicators make up the success.

illustration not visible in this excerpt

Fig 1 Performance indicators for companies based on (Gabler, 2015)

The management must consider that the results are achieved over long term. Therefore, companies are forced to invest in research and development and carry out maintenance. Otherwise, the success could be short term and the company is not successful placed in the long run.

Reference for thesis

A company's success is reflected in the market share, profitability or profit. In this case, the International success is to increase these key figures in several countries and continents. The success must therefore be provided in a number of countries and can be rated either separately for each country or as a sum for the company. The respective locations should thereby achieve positive numbers so that the overall result of the company is also positive.

4.Leadership

The leadership is a tool of management and is used in different forms by managers and leaders. Therefore, I will explain in this chapter the different definitions and leadership styles. The different leadership styles are important for the further understanding of this work and in the practical application when different cultures meet each other.

4.1. Leadership Definitions

This chapter deals exclusively with the definition of leadership, the characteristics and practical examples are described in the following chapters, explained and discussed in detail.

“Perform the act of inspiring subordinates and committed to achieve in a goal” (Murcko, 2015).

In his statement he also describes that leadership includes the following skills:

-establishing a clear vision,
-sharing that vision with others so that they will follow willingly,
-providing the information, knowledge and methods to realize that vision, and
-coordinating and balancing the conflicting interests of all members and stakeholders.

The second definition is formulated relatively identical, but should still be listed here in order to understand how similar the science considers about the leadership. „Leadership is a process, whereby an individual influences others to archive a common goal” (Kreitner & Kinicki, 2013).

Reference for thesis

These definitions support the thesis, that the lack of involvement of national and cultural diffences in leadership prevents the company or management success. The two definitions speak explicitly, that the workers must be excited for a common goal by the executive. For a successful implementation, the manager must understand the mindset of the workforce and they also challenge and encourage.

4.2. Leadership Styles

illustration not visible in this excerpt

Fig 2 Leadership Styles (Clark, 2015)

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