The role of leadership in successful international mergers and acquisitions: Why Renault‐Nissan succeeded and DaimlerChrysler‐Mitsubishi failed

This article compares and contrasts the Renault‐Nissan and DaimlerChrysler‐Mitsubishi mergers to consider the relative and combined effects of national and organizational culture on the performance of Nissan and Mitsubishi. It also examines the reasons why the Renault‐Nissan merger was successful and the DaimlerChrysler‐Mitsubishi merger failed. It finds that Japanese national culture influenced organizational culture and HRM practices, which created organizations that had no sense of urgency, profit orientation, or accountability and led to poor market and financial performance. It also finds that leadership was a major factor impacting on the success of the turnaround efforts of these two organizations. These findings have implications for leaders and human resource management practitioners engaged in international business and are of particular relevance to Western organizations working with organizations in high‐context countries with a collectivist rather than individualist orientation. © 2012 Wiley Periodicals, Inc.     

A conscious‐authentic leadership approach in the workplace: Leading from within

This study combines components of the relatively nascent concepts of conscious leadership and authentic leadership. It is a synopsis of a recent empirical study comparing two groups of companies and their respective CEOs. Each group is comprised of three companies. Group I is led by CEOs who use a conscious‐authentic leadership approach in the workplace. They infuse their personal values, beliefs, and relational leadership behavior into the policies, practices, and employee programs within their respective organizations to achieve specific organizational outcomes. Group II CEOs do not use this leadership approach. The companies selected for study were categorized by disinterested third parties in the business community. This study explores the perceptions of the employees of both groups and the impact of the conscious‐authentic leadership model on organizational behavior and specific organizational outcomes in the workplace. The organizational outcomes tested in this study are voluntary employee‐withdrawal behavior and absenteeism during the period 2003–2005. An employee questionnaire was administered to the employees of both groups to measure organizational behavior. The same questionnaire was administered to the CEOs to determine their level of self‐awareness and their sense of the reality of the human condition within their respective organization. A separate leadership questionnaire was administered to the CEOs for a self‐assessment of personal attributes and leadership style. The findings provide a working definition of conscious‐authentic leadership behavior and a working model of the components of this approach as implemented by Group I CEOs in the workplace.     

Performance implications for the relationships among top management leadership,organizational culture,and appraisal practice: testing two theory-based models of organizational learning theory in Japan

The purpose of this study was to examine the interrelationships among top management leadership, organizational culture and human resource (HR) practices, and their associative effects on organizational performance. Based on the theory of organizational learning, we developed and tested two different causal models: (1) a feed-forward learning flow model in which supportive leadership by top management would create a community culture and HR practices within organizations; and (2) a feedback learning flow model in which a community culture would support the practice of supportive leadership by top management and HR practices within a firm. Our structural equation modelling (SEM) results for a sample of 225 Japanese small and medium-sized enterprises (SMEs) in Japan supported the second model, in which the dominance of a community culture within the firm is an antecedent of top management's supportive leadership, which in turn necessitates a performance-based appraisal practice and eventually leads to better organizational performance in terms of objective indicators of turnover and absenteeism rates and workforce productivity. The findings are used to discuss the role of top management leadership in a particular organizational culture from the organizational learning perspective. Limitations and directions for future research are also discussed.     

Intercultural and sustainable leadership: A professional program for emerging educational leaders

This research reports on an investigation into the changing perspectives of educational leaders from the Asia‐Pacific region attending an AusAID‐funded Australian Leadership Award Fellowships (ALAF) program hosted by Australian Catholic University's (ACU National) Flagship for Creative and Authentic Leadership (the Flagship). The ALAF program aimed to strengthen the capacity of educational leaders from the Asia‐Pacific region to work more effectively in education systems and to better manage the competing demands of governments, education bureaucracies, educational organizations, and funding agencies. The research focused on how the Fellows viewed leadership, and how they viewed themselves as leaders before and at the conclusion of the program. What emerged was a growing interest in intercultural leadership and the concern for sustainable leadership.     

The role of organizational cultures in information‐systems security management: A goal‐setting perspective

The aim of this research is to investigate the role of strong organizational cultures in setting information‐systems security goals. In doing so, we explore and discuss the concept of culture within three financial organizations with different social and organizational structures, and seek to demonstrate the importance of having a cohesive culture in efficiently setting information‐security goals. The relationship between goal setting, culture strength, and performance is also discussed, as there have been studies that indirectly indicate that such a relationship may exist. The contribution of this work to interpretive information‐systems research consists of its study of culture and goal setting in a security‐management context, and its grounding within an interpretive epistemology. In addition, this research promotes an interdisciplinary and interorganizational theory to foster dialogue that transcends industry‐specific contexts and explores different organizational practices that can improve leadership's role in human life.     

Human Resource Management Practices and Trust in Public Organizations

Abstract

Trust has been acknowledged as a valuable managerial resource within organizations. Working as a lubricant of organizational functioning, trust reduces opportunistic behaviours while it increases voluntary compliance to organizational norms and rules as well as enhancing individual and organizational performance. Considering the importance of trust, it is worthwhile to explore what factors may help build trust within organizations. This research investigates whether perceptions of several human resource management (HRM) practices are associated with trust in government organizations. According to social exchange theory, HRM practices signal management's commitment to employees which in turn leads to greater trust in the organization. Using data from an employee survey conducted for the Georgia Department of Transportation in 2007, this research tests how employee perceptions of HRM practices are related to trust in three distinct levels of management in a large department of state government: trust in department leadership, trust in one's leadership team, and trust in one's supervisor. Binary logit analyses suggest that perceptions of HRM practices focusing on autonomy, compensation, communication, performance appraisal, and career development are associated with trust in public organizations. According to the result, those practices present variation in their leverage on trust in leadership at different levels.     

Mutual Gains? Health‐Related HRM,Collective Well‐Being and Organizational Performance

Research on the effects of HR management on employees’ psychological well‐being has yielded inconclusive results. Moreover, prior works remain unclear on whether human resource practices specifically aimed at enhancing employee well‐being also benefit organizational performance. Building on signaling theory and conservation of resources theory, our study investigates the relationship between health‐related human resource management (HHRM), employees’ collective well‐being (in terms of collective emotional exhaustion and collective engagement) and organizational performance. Results from a multi‐source field study of top management team members, HR representatives, and 15,952 employees in 88 organizations reveal a positive indirect relationship between HHRM and employees’ collective well‐being, which is mediated by employees’ positive stress mindset. In addition, we find this positive indirect association to depend on the level of transformational leadership climate in organizations. Finally, our findings also show a positive indirect relationship between HHRM and company performance, mediated by employees’ positive stress mindset and collective engagement.     

Management Innovation and Leadership: The Moderating Role of Organizational Size

Recent research on management innovation, i.e. new managerial processes, practices, or structures that change the nature of managerial work, suggests it can be an important source of competitive advantage. In this study, we focus on management innovation at the organization level and investigate the role of leadership behaviour as a key antecedent. Due to its prominent role within organizations, top management has the ability to greatly influence management innovation. In particular, we focus on leadership behaviour and examine transformational and transactional leadership. Additionally, as contextual variables like organizational size may influence the impact of leadership, we investigate its moderating role. Findings show that both leadership behaviours contribute to management innovation. Interestingly, our study indicates that smaller, less complex, organizations benefit more from transactional leadership in realizing management innovation. On the other hand, larger organizations need to draw on transformational leaders to compensate for their complexity and allow management innovation to flourish.     

Global Standardization of Organizational Forms and Management Practices? What New Institutionalism and the Business‐Systems Approach Can Learn from Each Other*

abstract The debate as to the effects of globalization on organizational forms and management practices is well known. Our paper focuses on two institutionalist traditions in organization theory which make a significant contribution to this discussion: new institutionalism and the business‐systems approach. Both emphasize the adaptation of organizations to their institutional environments but come to very different conclusions as to the global standardization of organizational forms and management practices. Our paper aims to move them beyond the convergence‐divergence dichotomy to account for signs of both global standardization and continued persistence of national differences. We do so by systematically comparing the two traditions, suggesting how they can be cross‐fertilized and developing an agenda for future empirical research. We also highlight that they cannot learn from each other on the issue of agency and point to structuration theory as a way in which they can integrate agency into their accounts of the global standardization debate.     

Top management leadership,employee empowerment,job satisfaction,and customer satisfaction in TQM organizations: an empirical study

Top management leadership and employee empowerment are considered two of the most important principles of total quality management (TQM) because of their assumed relationship with customer satisfaction. As a result, many top management leadership and employee empowerment strategies and practices have been suggested in the management literature. However, few studies have been done to test this assumed relationship and determine which of these strategies and practices may be most effective in bringing about the intended results. This study surveyed organizations that have adopted TQM to determine the relationship between top management leadership, employees' empowerment, job satisfaction, and customers' satisfaction. The results reveal positive correlation between top management leadership, employee empowerment, job satisfaction, and customer satisfaction. Employee empowerment and improved levels of job satisfaction are facilitated by top management leadership and commitment to the TQM goal of customer satisfaction by creating an organizational climate that emphasizes total quality and customer satisfaction. Effective strategies for achieving employee empowerment and job satisfaction, together with top management leadership roles in a TQM environment, are identified and discussed.     

Setting people up for success: How the Portman Ritz‐Carlton hotel gets the best from its people

In China, where many multinational companies face a constant shortage of talent and high employee turnover, the Portman Ritz‐Carlton Hotel has been able to attract, develop, and retain high‐quality talent to deliver excellent customer service and ensure profitable growth. Under the leadership of Mark DeCocinis since 1998, the Portman Ritz‐Carlton has not only been named as the “Best Employer in Asia” by Hewitt Associates three consecutive times, but has also rated the highest in employee satisfaction among all of the Ritz‐Carlton's 59 hotels worldwide for five consecutive years. How can DeCocinis and his leadership team achieve such remarkable results? In his interview with Arthur Yeung, Mark DeCocinis, general manager of the Port‐man Ritz‐Carlton and regional vice president, Asia‐Pacific, of the Ritz‐Carlton Hotel Company, shares his philosophy and practices on talent management in China and elsewhere. © 2006 Wiley Periodicals, Inc.     

How Strategic Focus Relates to the Delivery of Leadership Training and Development

Despite progress in the development of leadership development models over recent years, these models fail to account for the differentiation in leadership training and development (LTD) practices found between organizations. We conducted an exploratory, multiple case study of formal leadership training and development in 10 organizations, in different business sectors in the United Kingdom. We show that the strategic focus of LTD was shaped by the business goals pursued by these 10 organizations. We also found the strategic focus of LTD to be a broad contingency factor differentiated by level of impact, which then influenced the pattern of LTD delivery. The findings offer support for a contingency perspective in explaining how leadership training and development is configured in differing organizational contexts. © 2014 Wiley Periodicals, Inc.     

Reducing intentions to resist future change: Combined effects of commitment‐based HR practices and ethical leadership

Change management, and particularly the human side of change, is a central tenet of the strategy of contemporary organizations. However, there is little evidence concerning how strategic HR practices influence how individuals anticipate and react to the implementation of a major change and how direct supervisors influence that process. With a sample of 191 employees from multiple organizations, who completed two surveys with a four‐week lag, we examined the role of commitment‐based HR practices on employees’ intentions to resist future change. We found that commitment‐based HR practices contribute to a decrease in intentions to resist future change, measured four weeks later, via increased affective commitment to change. Moreover, we found that this relationship is conditional on ethical leadership, in that it is significant when ethical leadership is high but not when it is low. Building on social exchange and uncertainty reduction theories, our findings contribute to the literature by examining how and under what boundary conditions HR practices are an effective means for organizations to anticipate and manage change.     

Do types of economic ownership matter in getting employees to commit? An exploratory study in the People's Republic of China

Economic reforms launched in the People's Republic of China led to rapid growth in the non-state sector. Economic organizations in this sector adopt different styles of business operations and management practices when compared with their state counterparts. These systematic differences generate work dynamics with implications for workers' job attitudes and behaviours. The present study explores the relationship between workers' perception of the workplace and organizational commitment after the reform. Three hundred employees in Shanghai, from six enterprises, were randomly sampled for interview. Differences were found between state and non-state employees in their demographic characteristics, organizational perceptions and commitment. Findings suggested that state and non-state workers differed in their commitment and these relationships were mediated through various perceptual dimensions. Implications of the results for theory and practice are discussed.     

Entitlement to Work‐Life Balance Support: Employee/Manager Perceptual Discrepancies and Their Effect on Outcomes

We broaden contemporary understandings of the relationship between HR practices that support work‐life balance and organizational as well as individual outcomes, through a focus on perceptual discrepancies of entitlement. To theorize this notion, we adopt the self‐perception accuracy model and extend it by investigating whether any employee/management discrepancies in perceptions of entitlement mediate the relationship between HR practices supporting work‐life balance and outcomes. We use data from 20 European countries and apply a multilevel statistical methodology. Our results did not reveal significant mediation effects, but the perceptions of managers, not of employees, are related to HR practices that support work‐life balance. Furthermore, employees tend to have higher expectations of entitlement than does management. Finally, the more aligned management and employee perceptions of entitlement, the higher the positive organizational and individual outcomes over and above contextual idiosyncrasies. Findings denote that, in achieving positive outcomes for employees and organizations, managing perceptions regarding organizational support for work‐life balance is more important than actual support practices. © 2015 Wiley Periodicals, Inc.     

The phenomenon of young talent management in Russia—A context‐embedded analysis

This article describes the particularities of young talent management (TM) in Russia and explains them through a context‐specific analysis. It adopts a multilevel perspective that acknowledges the relevance of context at three levels: the macro environment, the organizational, and the individual. Data were gathered through 46 interviews with HR managers and young talents from six Russian companies and six Russian subsidiaries of foreign multinational companies (MNCs) active in a variety of industries. Following the contextualization approach, this study offers important insights into the interplay between macro, organizational, and individual factors as well as their isolated or interrelated effects on TM. While multilevel contextualization provides the rationale behind certain TM practices and the particular focus on young talents in Russia, it also explains why Russian companies are inspired by global best TM practices. Thus, contextualization allows for explaining the coexistence of a specific environment and nonspecific (global best) TM practices. Important particularities are revealed also when compared to the results of TM studies in other emerging countries. The article contributes not only to the TM discussion, but also to the wider field of international human resource management and the international management literature regarding contextualization.     

Introduction

This symposium addresses the challenge of educating global leaders through a collection of scholarly perspectives and practices that focus the development of global leadership and intercultural competency, specifically through immersive international contexts. Through this symposium, we addressed the cognitive, behavioral, and affective competencies that aspiring leaders need to be successful in global contexts. It focuses on the importance, issues, and methods of developing global competence as part of leadership education. Although this symposium is timely, global and intercultural competence is not new. Scholars of 19th‐century Europe shaped the original thoughts of global competence. Their focus was internationalization through colonial conquering, and the ultimate goal was to “learn from the West” (Baumgratz, 1995). This globalization piece did not gain much attention on an international scale. In fact, many managers in the 1960s and 1970s did not consider the international piece of business to be of much importance, often with very small specialized operational departments as the sole contributor to globalization within organizations (Morrison, 2000). However, a rapid shift of perspective occurred in the 1980s when the rise of Japanese businesses began to bring to focus the importance of global leadership. The climate of this theoretical foundation has shifted again recently as leadership educators are faced with preparing students to meet the needs of a dynamic and complicated organizational landscape. Expanding these challenges globally comprises a new level of preparedness for aspiring leaders. Globalization, and the technology that increasingly bridges countries and cultures, requires fresh paradigms and new leadership competencies (Bueno & Tubbs, 2004). Global managers will be expected to master an ever‐expanding range of knowledge and skills that will allow them to be successful in international contexts (DiStefano & Maznevski, 2003). Cultural competency development and a globalized curriculum are perhaps paramount to this charge as educators embark upon the challenging journey of providing the next generation of global leaders. The following questions provide educators with opportunities for reflection and discussion as we attempt to develop global competencies in the students we serve.     

Creating comprehensive leadership pipelines: Applying the real options approach to organizational leadership development

Typically, firms consider leadership development (i.e., training focused on skills required for success in leadership roles) and succession planning (i.e., the creation and implementation of long-term plans that address changes in top leadership roles) as two distinct organizational initiatives. In recent years, however, scholars and practitioners have called for a new, more comprehensive approach that considers the organization as a system. Rather than considering succession planning and leadership development as distinctly different initiatives, organizations should work to create internal leadership pipelines that span entry-level employees to executives. To leverage potential advantages associated with instituting comprehensive leadership pipelines and to address practical concerns associated with risk and talent management, we propose the introduction of incremental investment in organization-wide leadership development programs via distinct, evaluative stages – a real options reasoning (ROR) approach to leadership. We argue that blending ROR with skills-based leadership models diversifies risk associated with investments in talent management and increases the ability for targeted, purposeful investment in potential organizational leaders.     

The Social‐Cognitive Underpinnings of Employees’ Ambidextrous Behaviour and the Supportive Role of Group Managers’ Leadership

Although research on organizational ambidexterity has exploded in the past several years, the determinants of individual‐level ambidexterity have received little scholarly attention. This is surprising given that management scholars increasingly highlight the benefits of combining explorative and exploitative activities in individual employees’ work roles. Using data collected by a two‐wave survey of 638 employees nested in 173 groups across 34 organizations, our research demonstrates that both psychological factors and leadership predict employees’ ambidextrous behaviour. Our results demonstrate that general self‐efficacy positively predicts ambidextrous behaviour through learning orientation. In addition, we show that employees exhibit higher ambidexterity when their group managers demonstrate paradoxical leadership; that is, a leadership style that couples strong managerial support with high performance expectations. Paradoxical leadership also moderates the relationship between learning orientation and individual ambidexterity such that employees’ ambidextrous behaviour is highest when paradoxical leadership and employee learning orientation are simultaneously at high levels.     

The relationship between attitudes toward diversity management in the Southwest USA and the GLOBE study cultural preferences

This study investigates the importance of diversity management as it relates to the GLOBE study cultural preferences. A survey of 225 students in undergraduate and graduate programs at a private Texas University concluded that collectivism was a strong predictor of how positively participants rated their organizations support for diversity, diversity recruitment efforts, diversity training for mentors, and employees with disabilities. The participants were nontraditional students who were also employed in a wide array of organizations. Collectivism and assertiveness were both strong predictors with regard to participant's ratings of chief executive officer (CEO) support of diversity and the organization's overall diversity training. With regard to leadership dimensions, humane-oriented leadership was a positive predictor of preference for a collective culture, which predicts diversity management ratings. Team-oriented leadership also predicted ratings of diversity management. The results of the study indicate that promoting a more collectivist rather than individualistic culture is associated with the increased rating of organizational diversity practices. Furthermore, it strengthens the argument that with the increase in globalization, organizations must be prepared to re-evaluate their policies and know when to adapt to changes in organizational culture.