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Lecture 5

MGMT2102 Lecture Notes - Lecture 5: Indra Nooyi, Intellectual Capital, Social Capital

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MGMT2102 Managing Across Cultures
Lecture Five: Leading in Global Organisation
The universal facilitators of leadership effectiveness
Inspirational and motivating
Five C’s model of leadership by Indra Nooyi
Competency lifelong student, keep learning
Courage and confidence not willing to speak out, no point
Communication constantly communication, key aspect
Consistency important to be consistent against a framework
Compass must have integrity
What do global leaders contribute?
Intellectual capital: global business and organizational savvy
Psychological capital: openness to differences, capacity to change
Social capital: the ability to build trusting relationships
Dimensions of organisational leadership
Leadership is an ability to influence, motivate, and enable others within the
organisation to contribute towards the effectiveness and success of the enterprise
Some managers may be charismatic; other may not. Some situations or locations
may suggest participative managers; others may not. Some cultures may value team-
oriented managers; others may not
In the end, what matters most is how individual managers can see and understand
the on-the ground situational and cultural realities and then capitalise on their own
unique personal skills and abilities to get the job done by working through people
from different cultural backgrounds
The cultural contingency in the leadership process: an integrative model
Context content leader-follower situation motivation effect outcomes
Dimensions of organisational leadership
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Global leader characteristics
Developing a flexible model of leadership that can be applied everywhere
Having global business and organisational savvy global business savvy is the ability
to recognize global market opportunities for a company and having a vision for doing
business worldwide
Developing this savvy through travel, teamwork, training and global transfers
Developing the skill sets to motivate and influence the behaviour of employees in all
locations, and ultimately, influence the entire climate and culture of the organisation
Leaders on international assignments often find themselves juggling multiple and
potentially conflicting roles learn to manage this
Women in business leadership
The glass ceiling… the bamboo ceiling … cultural specific barriers
Women at the top are still very isolated
Women have natural skills of collaboration and consensus building that could fit into
the corporate environment in times of difficulty
The best way forward is talent management with boards of 30% women
Cultural intelligence
CQ requires sufficient cross-cultural awareness and sensitivity as well as appropriate
knowledge, suitable motivations, and skilled actions
o Knowledge includes information and understanding about the region
(location), the people, context, and norms of appropriateness that operate in
a specific culture. It includes having self-awareness, culture general
knowledge, culture-specific knowledge, and being able to objectively analyze
challenges in cross cultural interactions. Without such knowledge, it is
unlikely that a manager will be able to interpret correctly the meanings of
other people’s messages, nor will he/she be able to selects behaviours that
are appropriate and achieve the organisation’ objectives.
o Motivations include the overall set of emotional associations that people
have as they anticipate and communicate across cultures. Research suggest
that preconceived ideas, perceptions and interpretations may often create
barriers in workplace relations Whether this is a part of CQ or important to
improve it, is debated in research.
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