Cross Cultural Leadership

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Introduction to Cross Cultural Leadership

Leadership is the process of influencing people towards attaining the common objectives stated by en organization or group. It is the art of transforming the actions of people/employees/ team members towards predetermined objectives. Peter Druker has stated famously that “management is doing things right; leadership is doing the right things” (Caligiuri and Tarique, 2012). This statement clearly represents that leadership is a crucial part of management. It helps the in developing the efficiency of employees while directing the employees towards efficiency and productivity. The present report reflects the case scenario of Fulwood Motors PLC which is a UK based company producing small motor vehicles to UK and European markets. The company is planning to expand its business operation to Chinese and Japanese market. The company thus is seeking the efficient workforce or the new project. The study entails the factors significant while considering the efficient leaders and managers to manage business operations in new region. 

Considering the choices between appointing local managers or relocating the current organizational manager for new business location

Fulwood Motor PLC is operating efficiently in the UK market producing small motor vehicles. The company has operated successfully within the market and now planning to expand its business operations towards new business prospects. The location of the new business has been considered in Asia. China and Japan are the countries in which the company is expanding its operations. In order to seek new and effective business prospects it is crucial for the organization to analyse the organizational culture and dimensions of cultural aspects. 

A leader is a person who is effectively involved in motivating the employees and influence them towards achieving the common business objectives. Various theories and observations has shaped the term into different dimensions. In the modern age the current business scenario represents that leadership is a situational factors (Cheng and et. al. 2014). A leader has to adopt various  styles and skills to create influential impact on the employees. Adopting a rigid style of leadership is not useful in coping up with the contingent situations within the economy. Understanding the employees needs and wants helps a leader to succeed efficiently within the market. Richard Branson has set an effective example for modern leadership which has helped in making Virgin Group a successful business venture. The organization has implemented a contingent measure to cope up with the needs and requirements of the employees while managing their efficiency for the organizational benefit.

For the current situation of Fulwood Motors PLC, The company must critically examine the Cultural dimensions of various countries in order to examine the norms, values, beliefs and practices within the society. The "Global Leadership and Organizational Behaviour Effectiveness" (GLOBE) Research Program was conceived in 1991 by Robert J. This study focused on understating and developing the culture and leader effectiveness for global business operations (Emrich, Denmark and Den Hartog, 2004). Complex business operations and liberal policies of countries are leading towards the global expansion and this study help in understating the cultural values, beliefs and practices for different countries. 

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As per the globe study the following dimensions are crucial for the effective leader in Confucian segments. The following leadership styles supports the culture of the countries:

Team oriented Style: This leadership mentioned the characteristics demanded efficiency in terms of pride, loyalty and collaboration among the employees and team members within the country. It demanded high value of team cohesiveness, and team orientation to achieve the common organizational goals (Frost and Walker, 2007). This clearly represents theat the employees of the countries demanded high level of integration and support from the leader while developing trust and understanding as well 

Humane style:This style of leadership demanded high level of support, generosity and supportive behaviour from the leader. It helped in creating effective compassion and patience for the team members (Fugate, 2012). This style of leadership reflected the human oriented approach while understanding the individual and group values of the employees.

Autonomous Style: This reflected independent, self centric and individualistic approach of leadership. This style determined the power and control for the employees in order to fetch the work efficiency and better and enhanced productivity.

Group protective Style: This style of leadership reflected status concious, face saving behaviour of the leaders. This represents that the leader is expected to play a role of father figure who provides the safety and security to every individual within the organization. The culture of these countries had high concentration of this element which represented the employees within the country will be influenced by the same.

The above analysis and findings clearly represents the need and requirement of leaders within the mentioned countries. It reflects about what the employees expects and support. On the basis of the above study it can be clearly analysed that leadership within the nation is a crucial factor and demand high level of support and integration for the employees (Deng and Gibson, 2008). Emotional intelligence, decision-making power and team building attributes is the basic demand of the country.

Fulwood Motor PLC must appoint the local manager within the country in order to establish an effective relationship with the employees. The value, culture, beliefs and practices of the countries will support the local leader more than a foreign leader. Moreover a local Manager will be efficient in adopting humane style and Group protective leadership styles. The employees will easily develop the trust for this manager while developing the efficient means of support and understanding (Goble and Horm, 2010). Moreover, a local manager will help the country in enhancing the productivity and motivation within employees thus creating high level of growth prospects for the company within the nations.  

Factors which should be considered when deciding the type of individual

On the basis of above analysis of Globe factors and cultural dimensions it is clearly visible that the countries has high level of integration with local and domestic policies and regulations. In order to effectively utilise those within the organizational practices the company must evaluate the effective means of leadership practices. The factors that will help the company in recruiting the manager in China and Japan are enumerated below:

Skills and attributes are the crucial part of the development of an organization. Recruitment and selection process of the organization highly consider these factors in order to adopt the best individuals within the company.  Fulwood Motor PLC need to analyse the skill sets efficiently in order to determine the best suited workforce within the company. The nature of the business and the cultural values of the country are needed to be considered while analysing the impact of the factors within an organization. The three major set of skills that the comp[any must seek in efficient employees includes the following:

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Technical skills

These refers to the knowledge and proficiency of the employees within for business activities. The employees with high level of competencies in specialised area, analytical abilities and knowledge about various tools and techniques adopts effective role within the company. These skills are crucial for achieving the organizational objectives in order to create high level of implication on the overall productivity of the entity (Deng and  Gibson, 2009). Fulwood Motors needs to critically examine the skills within the prospective individuals of the company in order to create high and definite impact on productivity of the company. This will help the company in setting clear measures for the employee selection within the company. Moreover, these skills are crucial for all the three levels of management. However, these skills are needed at different extents. Technical skills are highly required in the employees working at the supervisory level. These are the employees who are involved in day to day work with motor works (Grisham and Walker, 2008). Thus, the entity must seek for the employees proficient in the technical knowledge of motors and engineering. The middle level management needs moderate level of skills work their profile. While, the top level management seeks the minimum extent of technical skills

Human skills

These skills demand the ability of employees to work with people. Human skills are people skills which enable the leader to work effectively with subordinates, peers, and superiors. The efficiency of a leader to interact with the other in a way that will enhance the successful completion of task. In order to seek the efficient employees for the origination Fulwoods must seek for high level of human skills (Gupta, MacMillan and Surie, 2004). These involve interpersonal skills which refers to efficiency in communication, attitude, behaviour, personality, dedication etc. The major barriers that the organization may face in the new are of expansion deals with communication or language barriers. Interpersonal skills will help in overcoming these issues. Human skills helps in infusing sensitivity and empathy within employees which will help in developing the new business environment of the company (Nienaber and Roodt,  2008). These skills are essential for every level of employee as working with people is the basis of business and most crucial need of the organizational efficiency.

Conceptual skills

Every organization seeks for employees with high conceptual skills in order to develop effective planning and development within an organization. A leaders and a manager is expected to provide strategic directions to the employees. It is also expected to that a leader must motivate and other people within an organization. Fulwood organization seeks the effective need of the employees with conceptual skills in order to develop strategic plans for the growth of the organization within new location (Kirkman and, 2009). This will also help the company in creating visions directions and strategic plan for the entity for both short-term as well as long term success. Conceptual skills is not much needed by supervisory employees. They deal with the technical and human skills. The conceptual skills is most crucial for the top level employees who are involved in the planning and development of the company within an organization. This helps the company in developing the skills of the employees. The company will be highly organized by creating effective impact through these skill sets within the company.

Critical evaluation of cultural issues while identifying the leadership styles for new managers

Wide factors have direct and indirect impact on the leadership issues within an organisation. These issues helps in understanding and shaping the factors that helps in creating the beneficial leadership within the economy (Tams, 2008). Fulwood is the organization which has developed effective business empire in the European region however the organization is now planning on expanding its operations in Asian countries. To determine the leadership factors for same the organization must clearly analyse the cultural factors of the entity. These factors involve:

Cultural diversity: Cultural values and practices plays a leading role in understanding the employees behaviours and actions within an organization. This helps the company in shaping the basic working system. The difference in culture poses high impact on the employee efficiency as well as leadership styles of the company. UK, China and Japan shares a vast cultural difference in terms of living, working and communication. Fulwood will have to examine the bes ways to develop, train and influence employees towards the common goal of the organization (Yeo and Li, 2011). This creates high value within an organization thus helps in shaping employees behaviour as well. However, the cultural diversity also creates high impact on the acceptance and behavioural issues within the company. Thus the organization must deal with cultural diversity in an effective and efficient manner in order to attain the required results. 

Language barriers: communication is the crucial part of the leadership. This is the means of delegation and reporting roles and responsibilities within the company. The language barriers poses a critical barrier in the communication process of the company. This creates a major issues in developing understanding within the employees thus developing an effective leadership (Zepeda, 2011). All the leadership attributes are of no use if leader is not able to cope up with leadership issues within the company. Fulwood thus must create an effective measure to overcome the language barriers within the company. Lack of communication may lead to misleading actions and a leader may not able to express the empathy and sensitivity towards the employees in an effective manner which will result in unacceptable and low productivity.

Motivational factors: A leader is a person who influences the employees to put their efforts in favour of the company to achieve the common objectives of the company. The cultural issues pose high impact on understanding the motivational factors of the employees. Maslow's need hierarchy theory contributes a sequence of needs and requirements for the employees in order to motivate them for better results (Diversity and Inclusion., 2013). However, lack of perfect knowledge about the motivational factors within the country may lead to ineffective leadership (Tsiotsou and Ratten, 2010). The transformational and transactional leadership may lead to unwanted results for the company. Fulwood must develop an effective understanding about the motivational factors in order to create high impact on the leadership. For example the trend of providing bonus on Christmas is common and highly motiving in UK. If the leader adopts the same trend in China this may not lead to the same results due to cultural differences. 

Social values and norms: Social values, norms and practices may also lead in shaping the organizational behaviour within the company. Lack of understanding about the social norms and values may create ineffective impact on the organizational operations (Chhokar, Brodbeck, and House, 2013). This will result in inefficient results. For example ethical practices in UK may not be similar to that in China. The population control policy of China is the part of the culture of the country. The company have to adopt the campaigns and policies considering the issues within the organization. Thus these factors plays a very major role in creating the effective platform for acceptances of the employees within the company. 

Organisational culture: Organizational culture refers to values, policies beliefs and attitudes that helps in shaping the employees behaviour for working within an organisation. This helps the managers and leaders in developing the effective code of conduct and employment measures for workers (Sanders, Cogin and Bainbridge, 2013). The gap in need and demands of employees and organizational cultures may lead to low results form the employees in favour of the company and thus will create inefficient impact of the growth and leadership values. Thus, Fulwood must create effective mean rises for developing the productive and influential cultures within the countries to gain the positive results.
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Fulwoods is a well established organization of UK and has the strong product concept for expanding its operations within new prospects of the global growth. The organization may gain high level of development within the countries by creating effective impact of leadership on the employees of the company (Longenecker and Fink, 2013). The effective analysis of political resources will help the in developing the policies and planning measures for the organization. It will create high impact on the growth and development of the employees and organization as well. The policies and regulations of the company will help the company in creating efficient measures of regulations and control within the economy while setting high competition in the market.

Moreover the cost and financial factors must be critically analyzed and evaluated in order to create high impact o the growth and development of the company and countries while managing the productivity. These issues plays a crucial role in developing the measures and planning for further growth prospects within the economy (Festing and Maletzky, 2011). The growth and development of the countries must be analyzed so as to create a reflective idea about the scope of economic development remeasures within the expansion area. The economic growth, inflation rate, development measures etc will help the company in seeking the planning and development process of the company.

The analysis of needs and requirements within the country will create high impact on the sales planning and demand forecasting. This will help the company in creating efficient measures of leadership issues for target planning and completion within the countries. The countries are highly advances and developed in terms of technology (Gannon and Newman, 2002). The company must adopt the effective measures to utilize the same in order to create definite measures of low cost of production and control for the company. This will help the company in managing the profitability margins in the economy. The concept of the company about the Eco friendly product development will help the company in creating effective measures of ethical and environmental friendly policies. The promotion and distributional channels within the countries will be developed by keeping a close check on the global environmental policies (Gomez, 2011). Thus, the managing director of the company mus create effective measures to make the best utilization for the resources of the company ion order to create high impact on the global development and growth of the country. Fulwood must develop the mission and goals of the country such that it may help the company in creating effective impact in the overall organizational development and establishing the company in the market in an efficient manner. 


The above report help in creating an effective measure of understanding the concepts and measures of global leadership for the organization. The company scenario of Funwood helps in creating a practical understanding about the operations and business activities of the company within the global economy for growth and expansion measures. The product concept and well developed plan for the company helps it in creating high impact on organizational growth prospects. The analysis of the report helps in evaluating the cost and legal issues for creating definite plans for organizational development within the global market. These issues are cultural gap, language barrier, lack of communication, changes in working style and motivation. So, manager of the organization should consider all these cultural issues at the time of identifying leadership style for host countries. Hence it can be said the company can grow in the new market only by understanding an analyzing the culture, norms, behavior and practices of the new market.


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