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Management and Leadership Across Cultures

Index
Leadership Leadership theories and styles Leadership styles followed by McDonalds Comparison of leadership styles across different cultures Motivational theories Motivational theories adopted by McDonalds Comparison of Motivational technique across different culture Recommendation of leadership strategies for McDonalds operating across different culture

Leadership
It is a process of influencing/guiding/motivating others to

achieve organizational goals. Activity as well as ability to guide people or organization is called leadership.
Keys to become a effective leader:
Put people first Encourage risk taking and innovation Be a team builder Foster a learning environment Emphasize honesty and integrity Establish open communications Embrace change

Leadership Theories
Various Leadership theories and styles which are being followed by leaders across different cultures. Some of these theories are Trait theory Behavioral theory Contingency theory Transformational theory Transactional theory

Styles
Leadership can also be categorized into various styles.

The various types of leadership styles are:

Autocratic leadership
Bureaucratic Leadership Democratic or Participative Leadership

Free-Rein or Laissez faire Leadership

Leadership style followed by McDonalds

McDonalds follows combination of four different styles:
Task Oriented Transactional leadership Charismatic Leadership Democratic Leadership

Comparison of leadership style across different cultures

In cultural point of view Autocratic leadership is not

highly appreciated, where close coordination with employees is required like in Asia.
Perspective leadership is more effective in Asia as here

culture values strong interpersonal relationship between the workforce. At the same time, participative leaders also believe in sharing strong bonds with employees.

In cultures like Central American countries and in

Panama, employees prefer to have a strong relationship with each other. The people of this culture highly emphasize on skills and expect for rewards for the quality of work.
In Japan, male employees are given more importance as

compared to female employees. At the same time, in some cultures both male and female are treated equally. In Sweden, both males and females are given equal importance in the organization.

Motivational Theories
Motivation is necessary for employees as it inspire them

to achieve personal as well as organizational goals.

Maslows

hierarchy needs Two Factor Theory

Herzberg's Taylor

scientific management ERG Theory

Alderfers

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Motivational Theories Adopted by McDonalds

Maslows hierarchy needs

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Theory X and Y

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Comparison of motivational techniques across different cultures

In western culture need for rewards and recognition highly

motivates employees. Thus, the leaders and management in western countries can motivate their subordinates by offering them incentives and other rewards for high performance. Employees in Asian countries are more liable towards their social needs. So they can be motivated by providing social needs. They look for strong interpersonal relations in organization.

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Recommendations of Leadership strategies

Require greater cultural sensitivity.
Enhanced language skills. Democratic leadership styles. Understanding of local laws.

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References

Cox, T., 1993. Cultural Diversity in Organizations : Theory, Research and Practice. San Francisco: BerrettKoehler. Maier, C., 2002. Leading Diversity A Conceptual Framework. St Gallen: Institute for Leadership and HR Management. About McDonalds, 2013. Inclusion and Diversity. [Online] Available through:< http://www.aboutmcdonalds.com/mcd/our_company/inclusion_and_diversity.html> [Accessed on 19th February, 2013]. Bized, 2012. How are McDonald's employees motivated? [Online] Available through:< http://www.bized.co.uk/compfact/mcdonalds/mcindex.htm?page=20> [Accessed on 19th February, 2013]. Fatima, A. 2011. HR Guide to Workplace Diversity. [Online] Available through: < http://www.brighthub.com/office/human-resources/articles/124441.aspx> [Accessed on 19th February, 2013]. Hunt, 2013. Performance and Motivation in McDonalds. [Online] Available through: < http://www.streetdirectory.com/travel_guide/184092/human_resources/performance_and_motivatio n_in_mcdonalds.html> [Accessed on 19th February, 2013].

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Bibliography
Francesco, A. M. and Gold, B. A., 2005. International Organizational

Behaviour. 2nd ed. Upper Saddle River, NJ: Pearson Prentice Hall. Deresky, H., 2003. International Management: Managing Across Borders and Cultures. 3rd ed. London: Prentice Hall.
Johann, R., 2010. Cross Cultural Management. Germany: Grin Verlag. Luger, E., 2009. Hofstedes Cultural Dimensions. Germany: Grin Verlag. Frabotta, D., 2001. Overcoming cultural and social challenges requires

accepting different points of view. Hotel & Motel Management, 216(1), p.46. Baum, T., Devine, F. and Hearns, N., 2007. The implications of contemporary cultural diversity for the hospitality curriculum. Education +Training, 49(5). pp.350-363.