Lecture 6

Question 1

Those who understand how the global business economy operates will survive in today’s competition while those who lag behind will

Answer 1

ultimately be out of the game.

Question 2

All upper level management positions today require that candidates be adequately exposed to the global business environments through:

Answer 2

Foreign study trips

Foreign language education

Cultural study

International internship

Foreign work experience

Question 3

A good global leader fulfills

Answer 3

organizational and societal mission

Question 4

A good leader possesses visions that articulate

Answer 4

long-term economic viability and societal well being

Question 5

A good leader has the skill to motivate and

Answer 5

inspire employees consistently and effectively.

Question 6

The efficiency of leadership is conditioned by

Answer 6

the cultural background of a given country

Question 7

Historically most leadership theories have been developed in

Answer 7

the United States

Consequently, many countries have tried to adapt them to their specific management practice

Question 8

Adler and Triandis doubt about the efficiency of adapting a US management leadership to

Answer 8

another differing culture

Question 9

Laedere-

Answer 9

Latin expression for “people on a journey”

Question 10

Leader-in modern times interpretation:

Answer 10

applies to a person who sets ideas, people, organizations and societies in motion

applies to a person with a vision, courage and influence

Question 11

A visionary manager in today’s world:

Answer 11

Knows how to create wealth by reducing poverty

Sees volume rather than high profit margin strategy

Non-profit agency or international organizational managers pursues Trade-not-Aid position

Will focus at the bottom of the pyramid by

• eliminating the intermediaries in trade
• Starbucks fair trade coffee is a good example

Question 12

Two fundamental traits of global leaders

Answer 12

Charismatic Leadership

Visionary Leadership

Question 13

Charismatic Leadership

Answer 13

Positively perceived in the U.S

Not necessarily viewed positively in Europe due to repressive charismatic leaders in the past (Hitler, Stalin, etc)

The military regimes in developing countries can also be associated with charismatic leadership

Question 14

Visionary Leadership

Answer 14

Both charismatic and visionary traits of a manager are derived from the national culture in which the leader was brought up

Question 15

Theories in determining global leadership

Answer 15

McGregor’s Theory (X and Y)

Cultural Contingency

Cultural Leadership Competencies

Question 16

In McGregor’s Theory X and Y, there are two models of management that can be instrumental in

Answer 16

motivating employees in different cultures

Question 17

Theory X management which emphasizes

Answer 17

the application of strict control on employees.

Question 18

Theory Y on the other hand, stresses on the need for

Answer 18

autonomous and loose control of employees in organizations.

Question 19

Theory Y is practiced mainly in

Answer 19

advanced countries which have achieved higher-order and self-actualization needs.

Question 20

Cultural Contingency

There are two views on trends of cultural universalism.

Answer 20

One view entertains the conversion of cultures in countries where capitalism emerges. As a result, it is assumed that American culture applies abroad.

There is an assumption that the world follows the American management style (Haire, Ghiselli & Porter, 1963 and Levitt, 1986).

Although the above authors found that more cultural similarities among different countries attribute to the emergence of cultural universalism, they indicate that countries are culturally divided more along ethnic line than industries. This means, although countries are moving into a capitalist system, their management styles are highly influenced by their national cultural background.

Question 21

In modern times, research indicates that companies which possess leaders with higher emotional intelligence outperform in

Answer 21

income, their competitors at least by 20% (Goleman).

Question 22

Emotional intelligence according to Goleman, is composed of:

Answer 22

Self-awareness (the ability to understand your mood and its impact on others

Self-regulation (the ability to redirect disruptive impulses and moods)

Motivation (a passion to work for reasons that go beyond money)

Empathy (the ability to understand the psychological make up of others)

Social skills (proficiency in managing relationships and networks)

Question 23

Traits of extraordinary leadership:

Answer 23

Better at reflecting

Leveraging

Framing

Fail less frequently than ordinary, but learn more from their failures.

Are more risk taking

Question 24

Why a global leadership shouldn’t be restricted by gender

Answer 24

More nations have been moving away from the traditional men-oriented leadership

More nations believe in meritocracy in business leadership

Countries and companies are moving away from traditional men-based leadership

Question 25

The Objective of New Leadership in the Business Community

Three Level “bottom line” objectives

Answer 25

Social responsibility

Environmental care

Profit making

Question 26

Three Level “bottom line” objectives would lead to:

Answer 26

Business management based on sustainability

Long-term business practice