LEADERSHIP IN THE GLOBAL BUSINESS ENVIRONMENT Comparison of Leadership Approaches in Different Cultural Contexts

1.????? SUMMARY

The era of globalisation has brought with it many challenges and opportunities. As a result of the global collision of organisations, the challenge of understanding the multicultural environment has become apparent. The leaders (managers) of these organisations need to understand the similarities and differences of different cultures, because the workforce today is very diverse, even on the basis of individual cultural backgrounds. "Cultural differences appear primarily as differences in shared values; values are defined as broad tendencies to favour certain situations over others." (Hofstede, 1980)

Such a difference in individual values, influenced by their cultural background in the work environment, leads to multicultural leadership in the team. "Businesses that adopt a multicultural approach to leadership are the ones that will succeed in our more colourful world" (Juana Bordas, 2007). Numerous cross-cultural leadership studies have been conducted in various sectors around the world. The role of a cross-cultural leader is to build a diverse workforce into a strong team. This requires the leader to understand the different dimensions of culture (Hofstede, 1980).? Hofstede emphasises that cultural differences emerge primarily as differences in shared values and defines values as "broad tendencies to prefer certain situations over others" (Hofstede, 1998). Therefore, it is very important for cross-cultural managers to seek a deep understanding of the challenges of the cross-cultural environment, which will help them to develop a unique leadership approach and team culture to overcome such challenges by blending different leadership styles.

Keywords: Cross-Cultural, Managers from Different Cultures, Leadership Dimensions.

2.????? BACKGROUND OF THE STUDY

Culture is understood as a rich combination of the personal history, traditions, economic and technological practices of a society in which any individual lives and develops. It is our culture that forms the backbone of our understanding of our environment, helping to give meaning to our interactions with the rest of the world. The most basic concepts that build a society are common to all cultures, but they are interpreted differently by people depending on the cultures to which they belong. These other people's interpretations of fundamental concepts arise from various cultural practices that may seem illogical or contradictory to the interpretations we hold sacred. The era of globalisation has brought with it many challenges and opportunities. As a result of the global collision of organisations, the challenge of understanding the multicultural environment has become apparent. The leaders (managers) of these organisations need to understand the similarities and differences of different cultures, because today's workforce is very diverse, even on the basis of their individual cultural background. In the words of Juana Bordas, "Businesses that adopt a multicultural approach to leadership are the ones that will succeed in our more colourful world" (Bordas, 2007).

"Cross-cultural research focuses mainly on comparability and focuses on ethics and emics". "Emics" are practices that are uncommon but specific to a particular culture, while "Ethics" are practices that are common or universal and found in all cultures" (Graen, Hui, Wakabayashi, & Wang, 1997).

The role of a cross-cultural leader is to bring a diverse workforce into a strong team. This requires the leader to understand the different dimensions of culture (Hofstede, 1980). He emphasises that cultural differences arise primarily as differences in shared values and defines values as "broad tendencies to prefer certain situations over others" (Hofstede, 1998b). Therefore, it is crucial for cross-cultural managers to seek a deep understanding of the challenges of the cross-cultural environment, which will help them to develop a unique leadership approach and team culture to overcome such challenges by blending different leadership styles.

The cross-cultural environment has much to offer in terms of its ability to explain the differences that exist between cultures and how widespread these differences are. Geert Hofstede, a well-known Dutch researcher in the field of organisational studies and organisational culture, has been one of the leading figures in the development of in-depth literature on cultural differences and also in the assessment and classification of cultures according to the following dimensions: Power Distance; Uncertainty Avoidance; Individualism versus Collectivism; Masculinity versus Femininity; Long-Term Orientation (Hofstede, 1980, 2001) (Hofstede, 1980) .

There are two fundamental questions that need to be addressed in cross-cultural organisational psychology (Drenth & Den Hartog, 1998);

(i) Whether organisations in different countries have consistently different characteristics or patterns of member behaviour (or) whether characteristics and patterns of behaviour interact consistently within cultures and differently across cultures.

?(ii) To determine whether these differences are really due to differences between cultures.

3.????? OVERVIEW

"Cultural differences appear primarily as differences in shared values, and values are defined as broad tendencies to favour certain situations over others (Hofstede, 1980)." Such a difference in individual values influenced by their cultural background in the work environment leads to multicultural leadership in the team. The increasingly global business environment has forced many companies to build teams that include members from different countries. Although most of these teams are designed to extract resources and increase productivity, the cultural diversity of these team members will create a longer learning curve than culturally homogenous groups to ensure the effective functioning of processes (Gibson & Vermeulen, 2023). Therefore, managers of multicultural teams are faced with the challenge of how to access and exploit the strengths of each member and at the same time minimise coordination losses due to language differences, different working styles, communication problems and misunderstandings. According to Wibekke, today's leaders face new challenges such as communicating and interacting across regional, national, ethnic, cultural, linguistic and legal boundaries; coping with and implementing continuous change; dealing with increasing uncertainty; negotiating and resolving conflict; motivating a multicultural workforce and in some cases managing a foreign assignment and living as an expatriate (Wibekke, 2009).

4.????? DIFFERENCES BETWEEN WESTERN AND EASTERN MANAGERS

Most cross-cultural studies and articles analyse the environment by separating cultures on the basis of east and west. One such paper describing the differences between Western and Eastern Managers is given by Chalre Associates (Chalre Associates, 2024), where they discuss the cultural differences between eastern and western managers. The Asian continent consists of countries such as Malaysia, Singapore, India, China, Japan, Indonesia, Philippines, while western managers belong to continents such as Europe and the USA. The similarities of both eastern and western cultures are much more than their differences. However, we pay attention to the differences here as these differences will provide a better understanding of the impact on the perception of multicultural managers from these different cultures. Some of the important cultural differences between east and west are the following (Chalre Associates, 2024);

People from western culture normally have the practice of giving direct and clear comments and instructions, while in the eastern part it is to suggest ideas and use non-verbal cues to convey ideas. Western managers freely allow and appreciate their subordinates to ask questions to better clarify instructions. In Asian countries, direct questioning by subordinates is not appreciated and is considered a challenge to the authority of superiors. Asian managers strongly believe in the practice of solving the problem by discussing it in groups to find a solution that will not offend anyone, while non-Asian managers believe in solving problems directly and quickly without any delay, even if such an approach results in upsetting the emotional level of others in the group. In addition to leading, Western managers see themselves as any member of the team. Traditional Asian managers apply a paternalistic approach to authority by providing guidance and support to subordinates and expect strong loyalty and obedience. While Westerners use the word 'YES' to mean that an agreement has been reached, Asians often use the word 'YES' to indicate that they are listening and that an agreement has not yet been reached. Managers in western society believe in a flatter socio-economic structure with fewer levels of hierarchy. Managers in eastern society, however, follow a well-defined structure and hierarchy. Western managers believe in individualism; Eastern

Of course, leadership approaches in different cultural contexts can vary considerably. Let us compare leadership approaches in two different cultural contexts, Western and Eastern cultures.

4.1.?? WESTERN LEADERSHIP APPROACH:

4.1.1.????? Individualism: Western cultures such as the United States and Western Europe generally emphasise individualism. Leaders are generally expected to be charismatic, decisive and confident; they focus on individual achievements and personal goals.

The concept of individualism is very important in the Western leadership approach. In Western cultures, especially in the United States of America and Western European countries, individualism is an important value and one of the basic elements that determine leadership approaches.

Individualism emphasises the individual's focus on his/her own needs, rights and goals and the importance of individual success. In Western leadership approaches, individualism leads leaders to emphasise their individual characteristics, abilities and goals and to focus on team management in this direction.

In Western leadership culture, leaders generally exhibit the following characteristics:

- Self Confidence: Leaders are usually self-confident and resolutely focused on their goals. Individualism encourages the leader to rely on his or her own abilities and vision.

- Charisma: Western leaders are often described as charismatic, which enables leaders to stand out with their impressive and inspiring personalities and helps them to influence followers.

- Personal Achievement Orientation: Western leaders often prioritise their own achievements and goals. Followers appreciate the leader's individual achievements and leadership abilities.

- Freedom and Independence: Individualism emphasises the values of freedom and independence. Western leaders often give team members the opportunity to exercise freedom and initiative and encourage individual contributions.

- Competitiveness: Western leaders may often have grown up in a competitive environment and therefore lead with a competitive spirit. Competition can be an important motivator as a result of individualism.

Individualism is a cornerstone of Western leadership approaches and helps leaders find ways to lead themselves and their teams to success. However, this may differ in other cultural contexts and may not always be the case.

4.1.2.????? Transactional Leadership: Transactional leadership involves exchange-based relationships between leaders and followers and is common. Western leaders often use rewards and punishments to motivate their teams; they focus on performance measures and results.

Of course, transactional leadership is one of the Western leadership approaches. This approach suggests that the leader relates to and manages followers through some form of exchange or "transaction". Here are the key characteristics of transactional leadership:

Transactional leadership is one of the Western leadership approaches. This approach suggests that the leader relates to and manages followers through some form of exchange or "transaction". Here are the key characteristics of transactional leadership:

- Change Orientation: Transactional leadership is a change-oriented approach in which the leader seeks to motivate followers by offering rewards or punishments in return for a specific task. This change is usually related to increasing job performance or meeting certain goals.

?- Reward and Punishment System: In transactional leadership, the leader encourages rewarding followers for achieving certain goals or job performance or punishing them for not achieving goals. Rewards can often be in the form of financial or verbal feedback, promotions or better working conditions, while punishments can be negative consequences such as dismissal, punishment or increased workload.

?- Performance Based Management: Transactional leaders usually associate performance with measurable and concrete goals. Followers are expected to achieve a certain level of performance and the leadership uses the reward-punishment system to incentivise or enhance this performance.

?- Having Clear Roles: Transactional leaders often provide an environment in which specific roles and tasks are clearly defined and followers are required to fulfil these roles. This is important to maintain a certain order and discipline in the workplace.

?- Short-Term Thinking: Transactional leaders often focus on short-term goals and prioritise the completion of current work tasks or projects. Long-term strategic goals or the team's

Transactional leadership can be particularly effective for organisations that want to focus on the short-term achievement of specific business goals or tasks. However, it can be limited in areas such as long-term motivation, commitment and team development and therefore may need to be combined with other leadership approaches in some cases.

?4.1.3.????? Flat Hierarchy: Western cultures generally have a flatter organisational hierarchy, less emphasis on formal authority and more emphasis on cooperation and empowerment.

The Western approach to leadership generally adopts a traditionally flat hierarchical structure. This approach is based on a perspective that encourages a more democratic attitude towards those below the leader and a participative leadership style.

Flat hierarchy refers to a structure in which communication between the leader and team members is more open and decision-making processes are more horizontal. This encourages the leader to make decisions and share ideas in co-operation with team members, rather than giving orders in an authoritarian way.

This approach fosters an environment where everyone's contribution is valued and the leader alone is not responsible for finding the right answers. Therefore, the flat hierarchy encourages team members to utilise their skills and experience more and to share the leadership role.

Flat hierarchy can be an effective leadership approach to encourage creative thinking and support innovation, especially in knowledge and skill-based work. However, as with any leadership approach, it can also have some disadvantages that need to be adapted to each situation. For example, it can make it difficult to take quick decisions in situations of uncertainty or emergencies, or create uncertainties about the leadership structure.

?4.1.4.????? Direct Communication: Western leaders generally value direct and open communication. They are advised to express their ideas openly and encourage constructive discussion and debate within their teams.

Direct communication is a characteristic that encourages open and sincere communication. In this approach, leaders are usually in close contact with subordinates and team members and keep the channels of communication open.

It involves leaders listening with an open mind, giving feedback and encouraging mutual understanding. Leaders communicate directly and openly with team members when problems arise or changes are needed. This makes it easier to co-operate and ensure everyone's participation in solving problems.

In addition, direct communication includes regular communication of positive feedback and appreciation. While recognising and encouraging team members' achievements, leaders also communicate openly to identify and support areas for improvement.

This type of communication style allows team members to build a more trusting and intimate relationship with their leaders. In addition, open communication channels reduce misunderstandings and allow issues to be resolved more quickly.

However, the direct communication approach is not always appropriate and may not be appropriate in some situations. For example, sensitive or emotional issues may require more careful and empathetic communication. Therefore, it is important for leaders to flexibly adjust their communication style according to the given situation and the people they are dealing with.

4.2.?? EASTERN LEADERSHIP APPROACH:

4.2.1.????? Collectivism: Eastern cultures, such as China, Japan and Korea, generally prioritise collectivism. Leaders are expected to focus on group welfare and maintain harmony within the team.

4.2.2.????? Transformational Leadership: Transformational leadership is a form of leadership that encourages and motivates followers to achieve common goals and is often emphasised. Eastern leaders focus on building strong relationships, trust and a shared vision.

4.2.3.????? Hierarchical Structures: More hierarchical organisational structures can be seen in Eastern cultures, with clear lines of authority and respect for age and seniority.

4.2.4.????? Indirect Communication: Eastern leaders may often favour indirect and implied communication; harmony and conflict avoidance are often valued.

5.????? COMPARISON:

5.1.????????????????? The Role of the Leader: In Western cultures, leaders are generally seen as visionaries and decision makers, whereas in Eastern cultures, leaders are expected to be compromisers and facilitators.

The Eastern leadership approach has a different perspective from the Western leadership approach and is generally under the influence of Eastern cultures and values. In this approach, collectivism is an important concept.

Collectivism is a cultural value in which the needs and achievements of the group are prioritised over individual needs and achievements. According to this understanding, individuals are usually integrated into their society or group and work for the welfare and harmony of the group.

In the Eastern leadership approach, leadership is often group orientated and leaders look out for the needs and welfare of team members. Leaders are considered part of the team and often co-operate with team members in making decisions or solving problems within the group.

A collectivist leadership approach is often based on values such as co-operation, harmony and social cohesion. In this context, leaders often encourage traits such as empathy, tolerance and respect for others.

Collectivism can create strong bonds between individuals and strengthen in-group relationships. However, this approach can sometimes restrict individual creativity and initiative and there may be difficulties in handling individual differences or conflicts.

The Eastern leadership approach differs significantly from the Western leadership approach and represents an important aspect where cultural and social contexts need to be taken into account.

5.2.????????????????? Motivation: While Western leaders often use extrinsic motivations such as material rewards, Eastern leaders focus more on intrinsic motivations and emphasise factors such as a sense of belonging and contribution to the group. Motivation derives from the Latin word "movere" meaning "to move". It is a loanword from French motivation "to motivate, to set in motion". The French word is derived from the verb motiver "to set in motion" with the suffix +tion (etimoloji turkce s?zlük, 2023). The word motivation is also used for concepts such as motivation and mobiliser. Motivation has the characteristics of initiating, maintaining and constructively directing a certain movement. Motivation is the demonstration of the necessary high-level effort to achieve the objectives of the organisation by meeting the individual needs of the employee (Robbins & Timothy, 2012).

Motivation is often based on a collectivist perspective, focussing on the commitment of individuals to group goals and the expectations of society. In this approach, motivation is often associated with group success and the welfare of society, rather than personal achievement or reward.

Here are some key elements of motivation in the Eastern leadership approach:

5.2.1.????????? Social Honour and Respect: In Eastern cultures, individuals often emphasise the importance of their place in their society and their dignity in the eyes of others. Therefore, leaders often encourage team members to behave in a way that is honourable and respected in society. Social honour and respect can be an important source of motivation.

5.2.2.????????? Group Norms and Expectations: In the Eastern leadership approach, norms and expectations within the group are important. Individuals are motivated to behave in harmony with other members of their group. These norms shape the behaviour of individuals and play an important role in achieving group goals.

5.2.3.??????????????? Praise and Support from Society: In Eastern cultures, individuals often value the praise and support they receive from their community. Therefore, leaders can try to motivate team members to receive positive feedback from their community and to be supported by their community.

5.2.4.??????????????? Intrinsic Values and Beliefs: In the Eastern leadership approach, the intrinsic values and beliefs of individuals are also important. Leaders can try to set goals that are compatible with the personal goals and values of team members and support them in achieving these goals.

In the Eastern leadership approach, motivation is often based on factors such as individuals' group cohesiveness, social honour and respect, group norms and expectations, praise and support from society, and intrinsic values and beliefs. These factors encourage individuals to contribute to group achievements and often focus on societal and group goals beyond individual goals.

5.3.?? Conflict Resolution: While in Western culture conflicts are usually dealt with directly, in Eastern culture it is important to maintain harmony and resolve conflicts indirectly or in the background.

Conflict resolution is often focussed on maintaining community cohesion and the health of intergroup relationships. In this approach, conflict is often seen as a harmful situation and leaders promote group cohesion to resolve conflicts.

Here are some key elements of conflict resolution in the Eastern leadership approach:

5.3.1.????????? Harmony and Compromise: In the Eastern leadership approach, conflict resolution is generally encouraged through harmonisation and reconciliation. Leaders bring the parties together to develop understanding and empathy and encourage them to find common ground.

5.3.2.????????? Social Norms and Values: In Eastern cultures, social norms and values often play an important role in conflict resolution. Leaders encourage solutions in accordance with social norms and values and encourage group members to respect these norms.

5.3.3.????????? Empathy and Communication: In the Eastern leadership approach, conflict resolution usually takes place through empathy and effective communication. Leaders keep communication channels open to increase understanding and respect between the parties and try to understand the feelings and needs of the parties.

5.3.4.????????? Emphasising Common Interests: In the Eastern leadership approach, leaders usually emphasise the common interests of the parties to resolve the conflict. Leaders bring the parties together and encourage them to focus on common goals and co-operate.

5.3.5.????????? Preservation of Long Term Relationships: In Eastern cultures, the preservation of long-term relationships is often important. Leaders attach importance to the preservation of long-term relationships between the parties in conflict resolution and try to ensure that solutions are in long-term harmony and harmony.

5.3.6.????????? In the Eastern leadership approach, conflict resolution is usually based on harmony, compromise, social norms and values.

5.4.?? Communication: Western communication is usually clear and direct; Eastern communication may be more indirect and context-dependent.

In the Eastern leadership approach, communication is generally based on social cohesion, respect and empathy. In this approach, communication is focussed on strengthening relationships between individuals and ensuring harmony within the group.

Here are some key elements of communication in the Eastern leadership approach:

5.4.1.????????? Empathy and Understanding: In the Eastern leadership approach, communication is based on empathy and understanding. Leaders try to understand the feelings and needs of team members and use this understanding as a basic element in communication. Empathy strengthens intra-group relations and deepens the bonds between team members.

5.4.2.????????? Sensitivity and Respect: In Eastern cultures, respect and sensitivity are an important part of communication. Leaders show a respectful attitude towards team members and take their feelings and opinions into consideration. Sensitivity and respect play an important role in maintaining and strengthening group cohesion.

5.4.3.????????? Directness and Openness: In the Eastern leadership approach, communication is generally based on directness and openness. Leaders encourage an open and direct communication style and keep the channels of communication open between team members. This reduces misunderstandings and facilitates intra-group co-operation.

5.4.4.????????? Group Cohesion and Solidarity: In the Eastern leadership approach, communication generally promotes group cohesion and solidarity. Leaders strengthen communication by creating a strong atmosphere of solidarity and co-operation among team members. Positive relationships between group members increase co-operation and facilitate the achievement of group goals.

5.4.5.????????? Reflecting Social Norms and Values: In the Eastern leadership approach, communication is generally based on being compatible with social norms and values. Leaders are expected to comply with social norms and values in communication.

In the Eastern leadership approach, communication is based on elements such as empathy, respect, immediacy, group cohesion and reflection of social norms and values. These elements help to strengthen inter-group relations and deepen the bonds between team members.

In general, there can be diversity within each cultural context; it is therefore important in cross-cultural leadership to recognise these differences and adapt appropriately.

6.????? CONCLUSION

With the increase in the circulation of capital, goods and people with globalisation, the necessity for people from different cultures to work together has emerged. With the development of transport and communication technologies, the cost of information and intellectual capital, both in terms of time and location, has decreased considerably. Therefore, not only for people who relocate to work in another country, but also for every company, whether international or not, and for people working at every level of the company, it is necessary to read the codes of cultural differences well, both as a requirement of globalisation and as a requirement of the information age.

As it can be understood from the above explanations, leaders decide on their management styles according to the culture of their environments and how they will approach their followers by analysing the social situation. Therefore, leaders shape their management styles according to the cultural life of the society they live in.

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