Figure 4.8: Significant divergences according to manager’s professional background 191 Figure 4.9: Significant differences according to middle manager´s age 194 Figure 4.10: Statistically significant differences on societal culture according the sector of industry 196 Figure 4.11: Comparison of Bosnian cultural profile to the world average (societal practices) 203 Figure 4.12: Comparison of Bosnian cultural profile to the Eastern European Cluster (societal practices) 205 Figure 4.13: Comparison of cultural profiles of Bosnia and Slovenia (societal practices) 205 Figure 4.14: Comparison of cultural profiles of Bosnia and Germany (Former East) (societal practices) 206 Figure 4.15: Comparison of cultural profiles of Bosnia and Germany (Former West) (societal practices) 206 Figure 4.16: Comparison of cultural profiles of Bosnia and the world average, Eastern Europe Cluster, Slovenia, Germany (Former East), and Germany (Former West) (societal values) 208 Figure 4.17: Comparison of Bosnian cultural profile with the world average (societal values) 209 Figure 4.18: Comparison of organizational culture practices and values in Bosnia and Herzegovina 215 Figure 4.19: Statistically significant differences on first order leadership dimensions according to the Bosnian main ethnic groups 249 Figure 4.20: Statistically significant industrial differences on first order leadership variables 250
Before the war, Bosnia was one of the poorest Yugoslav Republics (Direkcija za planiranje Bosne i Hercegovine, 2005:7). Its economy was industrially diversified. Half of the Bosnian output and employment was consisted of heavy industry, mining and metallurgy, energy distribution, as well as textiles, leather and machinery (Andjelić, N., 2003). The beginning of the war was followed with high inflation rate of nearly 120%, which reached the level of over 1,000% during the war. The GDP fell to around 20% of the pre-war level. The post-war unemployment was between 70% and 80%. Physical capital was largely destroyed. The production was almost stopped. The end of the war in Bosnia was followed by a reconstruction phase with strong external support inflows and steady economic growth rates. With big assistance flows Bosnia has been able to regain some of its economic losses, mainly through the private sector and the small enterprises which were established after the war. Today, Bosnian economy is relatively stable. On average, growth has five percent per year ever since the 2000, whereas inflation has remained under five percent for most of the decade (Centralna banka Bosne i Hercegovine, 2009:7). Prior to the global economic crisis, living standards in Bosnia were improving. The real GDP increased by 30% between 2000 and 2007. However, the global crisis reflected in Bosnia through decline in GDP by 2.91% in 2009 (BHAS, 2009). Since 2009, Bosnian economy has begun a slow recovery, which resulted in slight increase in GDP by 0.7% (BHAS, 2011). Currently, Bosnia has the most stable currency in the South Eastern Europe and the lowest inflation in the area (FIPA, 2012). Nonetheless, high unemployment rate and low living standards remain one of the main Bosnian problems. The private sector of Bosnia is growing continuously, however, direct and indirect foreign investments have decreased sharply since 2007. Privatization of formerly state owned companies has been lengthy, especially in the Federation of Bosnia and Herzegovina where political separation among religious political parties makes agreement on economic strategy
The art of mobilizing others to want to struggle for shared aspirations (Kouzes and Posner, 1997:30). Leadership is the ability to step outside the culture (...) to start evolutionary change processes that are more adaptive (Schein, 2004: 2). Leadership is the process of influencing others to understand and agree about what needs to be done and how it can be done effectively, and the process of facilitating individual and collective efforts to accomplish the shared objectives (Yukl, 2006: 7). Leadership is the ability of an individual to influence, motivate and enable others to contribute toward the effectiveness and success of the organizations of which they are members (House et al., 2004: 15). Leadership is a process whereby an individual influences a group of individuals to achieve a common goal (Northouse, 2007:3). A variety of definitions of leadership highlights different aspects of leadership studied and could be evenly applicable. Nonetheless, most definitions have as their central part an assumption that it engages influence of leaders on others for the purpose of accomplishing group and/or organizational goals. Leadership is a universal phenomenon (Bass, 1997). That is to say, wherever there are people, there are leaders. The term leadership is ubiquitous in common discourse (Vroom and Jago, 2007: 17). The question that arises within the international context is: Do different leadership behaviours and styles go beyond cultures? 2.1.2 A short overview of historical streams of leadership research Leadership theory has often been described as having passed throughout numerous different eras: from an early research on the “great man” and trait theories, over behavioural and
Table 2.2 Cross-cultural leadership studies - continuing Wang and Howell (2010) 203 members from 60 work groups in a Canadian company. Two phases: 1) pilot study to measure the psychometric features of dual-level transformational leadership on followers scale; 2) main study - assessed the reliability and constructs validity of the scale and tested the hypotheses. Results show that individual- centred leadership style, evaluated at the personal level, was positively related to task performance and individual initiative; group-focused leadership behaviour, evaluated at the group frame, was positively related with team performance and supporting performances. Walumbwa, Wang, Wang, Schaubroeck, and Avolio (2010) 387 employees and their 129 immediate supervisors from two telecom companies in China. Distinct questionnaires were created and implemented to 129 supervisors and 387 immediate direct reports. Every direct report filled a survey that comprised the authentic leadership and power distance scales in the phase 1, a second survey that assessed identification with their superiors and empowerment in the phase 2, and a last survey that calculated workers engagement in third phase. Hierarchical linear modelling results exposed that authentic leadership style was positively associated to supervisor-rated organizational citizenship behaviour and work engagement, controlling for ideal power distance, type of a company, and subordinates’ demographics (e.g. age and gender sex). These associations were interceded by the subordinates' level of identification with the superior and their feelings of empowerment. Pekerti and Sendjaya (2010) 279 respondents from Indonesia (staff of two educational institutions) and 190 respondents from four organizations in Australia. The servant leadership behaviour scale was used to calculate servant leadership. Respondents were asked to assess leadership behaviours of their present supervisor or direct leader, by means of a Likert scale (1= strongly disagree to 5 = strongly agree). A 35-item evaluation involving six behavioural elements: voluntary subordination, authentic self, covenantal relationship, responsible morality, transcendental spirituality, and transforming influence. The hypotheses were tested with MANOVA. Study results indicate that Australian and Indonesian leaders displayed behaviours that, generally, are connected with servant leadership behaviours. Servant leadership is exercised in both Australia and Indonesia. Furthermore, culture was found to be a significant factor in determining what people observe as significant amongst the six dimension of servant leadership in Australia and Indonesia. Table 2.2 Cross-cultural leadership studies - continuing
Table 2.3 Studies on the relationship between culture and leadership - continuing Zacher, Rosing, and Frese (2011) 106 German university professors and one scientific assistant of every of the professors contributed to the investigation. Legacy beliefs were calculated with the six self-report legacy items from McAdams and de St. Aubin's (1992) Loyola Generativity Scale (LGS), consisting of 5-point ranging from 1 (completely disagree) to 5 (completely agree). Leadership behaviours were calculated with the German version of the Multifactor Leadership Questionnaire (MLQ 5X-Short, Avolio and Bass, 2004). Findings revealed that at higher ages, low legacy beliefs obstruct, and high legacy beliefs help sustain overall transformational and transactional leadership. Regression analyses revealed that legacy beliefs positively envisaged overall transformational leadership and the sub-dimensions of charisma and intellectual stimulation, and overall transactional leadership and its active management-by-exception sub-dimension, but negatively envisaged passive-avoidant leadership. Furthermore, older university professors were rated by their scientific assistants as more passive-avoidant than younger university professors. On average, female professors in our sample, reported higher legacy beliefs than the male professors. Yang, Zhang and Tsui (2010) 491 frontline employees, 98 frontline supervisors, and 30 middle managers from three organizations located in North-eastern and China (two telecommunication companies and one branch of a commercial bank) Three questionnaires: one for frontline employees (questions concerning the transformational leadership of supervisors and the employees’ personal collectivistic value), one for frontline supervisors (questions concerning the transformational leadership of middle managers, the job performance of their direct subordinates, and the supervisors’ individual power distance value), and one for middle managers (asking to report on the senior managers’ transformational leadership). Findings support set research hypotheses: there is a direct impact from middle managers to workers, bypassing the influence of workers’ direct supervisor (the bypass effect); bypass effect is restrained by the workers’ collectivistic value; a cascading of leadership behaviours from middle managers to first-line supervisors, whose transformational leadership then enhances employees’ performance (the cascading effect); this cascading effect is moderated by the supervisors’ power distance value. eastern
Administratively Competent Orderly Administratively Skilled Organized Good Administrator Decisive Wilful Decisive Logical Intuitive Non-participative Non-delegator Micromanager Non-egalitarian Individually Oriented Autocratic Autocratic Dictatorial Bossy Elitist Diplomatic Diplomatic Worldly Win-Win Problem Solver Effective Bargainer Performance Oriented Improvement-Oriented Excellence-Oriented Performance-oriented Autonomous Individualistic Independent Autonomous Unique Face Saver Indirect Avoids Negatives Evasive Procedural Ritualistic Formal Habitual Procedural Charismatic I: Visionary Foresight Prepared Anticipatory Plans Ahead Humane Orientation Generous Compassionate Self-Centered Self-Centered Non-participative Loner Asocial Charismatic II: Inspirational Enthusiastic Positive Morale Booster Motive Arouser Integrity Honest Sincere Just Trustworthy Status Consciousness Status-Conscious Class-Conscious Charismatic III: Sacrificial Risk Taker Self-Sacrificial Convincing Malevolent Hostile Dishonest Vindictive Irritable Team I: Collaborative team oriented Group-Oriented Collaborative Loyal Consultatitive Conflict Inducer Normative Secretive Intergroup Competitor Modesty Modest Sefl-Effacing Patient Team II: Team Communicative Team Builder Informed Integrator Source: Hanges and Dickson, 2004: 131. Conceptualization of leadership advanced by the GLOBE researcher has collected positive reactions from other investigators. For instance, Earley (2006) describes the part on leadership as very sophisticated cross-cultural investigation, emphasizing the theoretical framework, the operationalisation and assessment of leadership constructs at diverse levels of examination, and the utilization of intermediary constructs. The six global leadership
Sample leadership items Sensitive: Aware of slight changes in moods of others. Motivator: Mobilizes, activates followers. Evasive: Refrains from making negative comments to maintain good relationships and save face. Diplomatic: Skilled at interpersonal relations, tactful. Self-interested: Pursues own best interests. Response options 1 = This behaviour or characteristic greatly inhibits a person from being an outstanding leader. 2 = This behaviour or characteristic somewhat inhibits a person from being an outstanding leader. 3 = This behaviour or characteristic slightly inhibits a person from being an outstanding leader. 4 = This behaviour or characteristic has no impact on whether a person is an outstanding leader. 5 = This behaviour or characteristic contributes slightly to a person being an outstanding leader. 6 = This behaviour or characteristic contributes somewhat to a person being an outstanding leader. 7 = This behaviour or characteristic contributes greatly to a person being an outstanding leader. Source: House and Javidan, 2004: 23. 3.1.3.2 Qualitative methodology The quantitative questionnaire reports of middle level managers from 62 societies were supplemented by qualitative methodology, which comprises focus groups, in-depth ethnographic interviews, and media analysis. While quantitative data were collected from the each of 62 participating societies, the researchers of all 62 societies were not able to implement the qualitative methodology to the same intensity and depth. Focus groups were conducted with the main purpose of understanding how middle managers in each society perceive outstanding leadership. Within the focus groups, an opportunity was given to participants to formally discuss effective, above-average, and outstanding managers. It was hoped that at the end of the focus group the participants would have greater insights into various behaviours generally employed by managers when leading organizational work units (Chhokar et al, 2008: 24). Guidelines for the focus groups were
Cross-cultural researchers have discovered that people from diverse cultures show tendency to use different response sets when answering questionnaires (Triandis, 1994). For instance, people from East Asian cultures tend to evade extreme ends of a scale while in Mediterranean cultures people tend to use extreme ends of a scale (Hui and Triandis, 1989; Triandis, 1994; Stening and Everest, 1984). The existence of these diverse response models can bias cross-cultural comparisons. The GLOBE research team used multi-method approach and a statistical standardization correction procedure to minimize the influence of biases. To prevent common source bias, GLOBE researchers used two quantitative surveys that were administrated to two divergent groups of respondents (for more details on sample design see part 4.1.2.). When analysing the associations among leadership and culture, the GLOBE team correlated responses from one group on leadership with those from another group on culture, thus inhibiting common source bias (House, et al., 2004). Furthermore, a statistical standardization correction procedure has been carried out to eliminate cultural response biases from questionnaire data. Following the description provided by Triandis (1994), the GLOBE team calculated each individual’s mean and standard deviation for every single item in the survey. Next, corrected individual item responses are computed by deducting that individual’s mean response from the actual responses for that item and dividing this divergence by that individual’s standard deviation (House, et al., 2004). Corrected scale scores were then accumulated to the society level of investigation. The classical model described by Triands (1994), even though very useful, has several limitations. First limitation refers to the inability to interpret the corrected scales. In particular, although helpful in eliminating cultural response bias, the classical correction procedure generates scores that are not attached to the initial 7-point scale. Moreover, the values of cumulative corrected scales often include negative values, hence, making it impossible to
subsequent leaders also use management practices that reflect the values shared by members of the culture. Leadership affects organizational form, culture, and practice. Founders and subsequent leaders continue to influence and maintain the organizational culture. Societal cultural values and practices also affect organizational culture and practices. Collective meaning that results from the dominant cultural values, beliefs, assumptions, and implicit motives endorsed by societal culture results in common leadership and implicit organization theories held by members of the culture. Organizational culture and practices also affect leaders’ behaviour. Over time, founders and subsequent leaders in organizations respond to the organizational culture and alter their behaviours and leader styles accordingly. Societal culture and organizational culture and practices influence the process by which people come to share implicit theories of leadership. Over time, CLT profiles are developed in each culture in response to both societal and organizational culture and practices. Strategic organizational contingencies (organizational environment, size, and technology) affect organizational form, culture, and practices. Organizational practices are largely directed toward meeting the requirements imposed by organizational contingencies. Strategic organizational contingencies affect leader attributes and behaviour. Leaders are selected to meet the requirements of organizational contingencies. They will then continue to adjust behaviour n the basis of these contingencies. Relationships between strategic organizational contingencies and organizational form, culture, and practices will be moderated by cultural forces. For example, in low uncertainty avoidance culture it is expected that forces toward formalization will be
Societal culture (Values) Organizational culture (Values) Uncertainty Avoidance Future Orientation Power Distance Institutional Collectivism Humane Orientation Performance Orientation In-Group Collectivism Gender Egalitarianism Assertiveness Uncertainty Avoidance .091 -.031 -.006 .012 .007 -.134* .058 -.028 .112* Future Orientation .014 .089 -.115* -.011 .139* -.006 .011 .076 -.072 Power Distance .132* -.084 .045* -.037 .036 -.027 .002 -.118* .071 Institutional Collectivism -.065 -.125* .018 .094 -.081 .054 .014 -.001 -.059 Humane Orientation -.034 .003 .010 .038 .102 -.059 -.031 .108* .084 Performance Orientation -.123* .127* -.045 .137* .184* .121* .114* -.138** .074 In-Group Collectivism -.040 .010 -.008 -.094* -.045 -.056 .099 -.102* .015 Gender Egalitarianism .011 -.046 .009 .035 -.191* -.028 -.078 .236* -.193* Assertiveness -.031 .022 .003 -.006 -.002 -.042 .016 .034 -.106* Note: ** = Correlation is significant at the 0.01 level (2-tailed); * = Correlation is significant at the 0.05 level (2- tailed)
The power, strength, authority, and the influence of the Orthodox and Catholic churches became more pronounced as the consequence of shared support among the churches and the leaders of the countries (Mahmutćehajić, 2003). Both, Orthodox and Catholic Church sustain status quo in the societies, centralized control and hierarchy, and they remain to perceive women as incompatible to embrace the highest positions inside the churches organizations (this refers to Islam as well - having no women in the positions within the mosques) (Cvitković, 1981). Accordingly, Bosnian society being predominantly Christian leans towards higher power stratification. Islam is one of the three monotheistic religions, besides Judaism and Christianity. The history of Islam starts with the prophet Mohammed. Mohammed was the last and greatest prophet of Allah. His message was simple and said that every single person is equal before Allah, and that one should live a pure life by following the five pillars of Islam: having no other god except Allah and Mohammed is the God’s messenger; establishing regular worship; paying zakat to the poor and those in need; fasting for Ramadan; and performing the hajj pilgrimage (Cvitković, 1981). The organizational structure of the Islamic community consists of jama’ats, majlises, mufti offices, the Riyasat, Ra’is al-’Ulama’, the Council of the Islamic community and the Constitutional court (Karčić, 2009; retrieved from The basic organizational unit is jama’ats, whereas the highest religious and administrative unit is the Riyasat, headed by Ra’is ul-’Ulama’ (placed in Sarajevo). Islamic community does not have the same church hierarchy or church authority like in Catholicism and Orthodoxy (Cvitković, 1981). Islam does not support high power stratification; quite the opposite, Islam has no chains of command in its system of mosques, nor are there any positions
3-12. In this organization, pay and bonus system should be designed to maximize: individual interests collective interests 1 2 3 4 5 6 7 3-13. In this organization, subordinates should: obey their bosses without question question their boss when in disagreement 1 2 3 4 5 6 7 3-14. In this organization, people should be encouraged to be: tough tender 1 2 3 4 5 6 7 3-15. In this organization, employees should be encouraged to strive for continuously improved performance. strongly agree neither agree nor disagree strongly disagree 1 2 3 4 5 6 7 3-16. In this organization, a person whose work is highly structured with few unexpected events: has a lot to be thankful for is missing a lot of excitement 1 2 3 4 5 6 7 3-17. In this organization, men should be encouraged to participate in professional development activities more than woman. strongly agree neither agree nor disagree strongly disagree
strongly agree neither agree nor disagree strongly disagree 1 2 3 4 5 6 7 3-34. In this organization, important organizational decisions should be made by: management employees 1 2 3 4 5 6 7 3-35. I believe that in this organization, time devoted to reaching consensus is: a waste of time sometimes wasted and sometimes well spent time well spent 1 2 3 4 5 6 7 3-36. When in disagreement with superiors, subordinates in this organization should generally go along with what superiors say or want strongly agree neither agree nor disagree strongly disagree 1 2 3 4 5 6 7 3-37. Members of this organization should: take no pride in working for the organization take a moderate amount of pride in working for the organization take a great deal of pride in working for the organization 1 2 3 4 5 6 7 3-38. In this organization, people should be encouraged to be: very generous not at all generous 1 2 3 4 5 6 7 3-39. In this organization, opportunities for management positions should be: