crossculture organization in business.pptx

Very interesting topics

1. Cross-Cultural Leadership Lauren Gruchala Kaci Grant

2. Overview Culture Defined Related Concepts Hofstede & others GLOBE Universally Desirable and Undesirable Leadership Attributes Challenges to Cross-Cultural Leadership Questions Sources

3. The Dutch place emphasis on egalitarianism and are skeptical about the value of leadership. Terms like leader and manager carry a stigma. If a father is employed as a manager, Dutch children will not admit it to their schoolmates. Arabs worship their leaders- as long as they are in power! Iranians seek power and strength in the leaders. The Malaysian leader is expected to behave in a manner that is humble, modest, and dignified.

4. Why is this important? Globalization Increased interconnection between people Need for leaders to become competent in cross-cultural awareness and practice Diversity in our country

5. Cross-Cultural Research Endeavor Leadership research is tricky: No consistency agreed upon definition of leadership No clear understanding of the boundaries of the construct space

6. Culture Defined The learned beliefs, values, rules, norms, symbols, and traditions that are common to a group of people (Northouse) A set of patterns for social collectivities that differentiates among them in meaningful ways (House, Wright & Aditya)

7. Essential Parameters of Culture Culture represents some form and degree of collective agreement Culture refers to sharing of important interpretations of entities, activities, and events Cultural norms and cultural forces are manifested linguistically, behaviorally, and symbolically in the form of artifacts Common member experiences are inherent in the notion of culture Cultural variables take on the force of social influence largely because members of collectivities identify with an agreed-upon specific set of values and common social identities

8. Essential Parameters of Culture Common experiences and agreed-upon norms have powerful socialization effects on the members of cultures Cultural interpretations, symbols, artifacts, and effects are transmitted across generations The social influence of cultural forces is assumed to provide a set of compelling behavioral, affective, and attitudinal orientations for members of cultures Members of specific cultures are presumed to abide by a set of norms that reflect the above-mentioned commonalities

9. Related Concepts Ethnocentrism: the tendency for individuals to place their own group at the center of their observations of others and the world Obstacle because it prevents people from fully understanding or respecting the world of others Prejudice: a largely fixed attitude, belief, or emotion held by an individual about another individual or group that is based on faulty data Both can have an impact on how leaders influence others.

10. Related Concepts Multicultural: an approach or system that takes more than one culture into account; a set of subcultures defined by race, gender, ethnicity, sexual orientation, and age Diversity: the existence of different cultures or ethnicities within a group or organization Monolithic cultures: provide approximately common experiences for members of collectivities (no variation) Pluralist cultures: contains two or more subgroups that share some common experiences but not others

11. Cross-Cultural Studies Haire, Ghiselli and Porter (1966) Studied responses from 3,641 managers from 14 countries Managers favored democratic styles of management; consistently felt that subordinates lacked necessary abilities to be led democratically; most endorsed egalitarian organizational structures, however saw themselves as part of elite group; better to direct than persuade

12. Cross-Cultural Studies Bass, Burger, Doktor & Barrett (1979) Based on multiple measures of observed behavior and questionnaire responses of 8,566 middle managers from 12 different countries Data collected between 1966 and 1973 Strong main effects of national citizenship and modest main effects of rate of advancement on many of the dependent variables (i.e., managers’ responses to questionnaires, self-reports of behavior in exercises, observations of each other’s behavior) Table 20.1 (Earley & Erez)

13. Hofstede (1980,2001) Most referenced research concerning dimensions of culture Based on questionnaires from 100,000 people in more than 50 countries (IBM HQ Staff) Cultural differences primarily encountered as differences in shared values Values defined as “ broad tendencies to prefer certain states of affairs over others”

14. Hofstede’s 3 Core Questions Three core questions that have to be addressed in all cross-cultural research: What are we comparing? Are nations suitable units for comparison? Are the phenomena we look at functionally equivalent?

15. Hofstede Dimensions Power Distance The degree to which less powerful members of a society accept a hierarchical or unequal distribution of power in organizations/society Uncertainty Avoidance The degree to which members of a given society feel uncomfortable in ambiguous situations and have created beliefs, norms, and institutions that are intended to minimize the occurrence of or cope with such situations Long-term-Short-term Orientation Long-term- thrift and perseverance Short-term- respect for tradition, fulfilling social obligations, protecting one’s “face”

16. Hofstede Dimensions Individualism-Collectivism Individualist- the degree to which individuals function independently of each other and are expected to look after themselves and their immediate families Collectivist- the degree to which individuals are integrated into groups that are expected to look after these individuals in exchange for loyalty to the group Masculinity-Femininity High scores- the degree to which members of cultural entities look favorably on assertive, aggressive, competitive, and materialist behavior and striving for success Low scores- the degree to which members value supportive behavior, nurturance, care, and service and endorse gender role differentiation and discrimination

17. US Hofstede Profile Power Distance: 40 Individualism: 91 Masculinity: 62 Uncertainty Avoidance Index: 46 Long-term Orientation: 29

18. Hofstede Conclusions Gives us insights into other cultures so that we can be more effective when interacting with people in other countries 3 noted studies have failed to demonstrate consistency with Hofstede’s dimensions Gerstner and Day (1994); Ng et al. (1982); Chinese Culture Connection (1987)

19. G L O B E Global Leadership & Organizational Behavior Effectiveness Robert House (1991) Purpose: Increase understanding of cross-cultural interactions and the impact of culture on leadership effectiveness Quantitative methodology Responses of 17,000 managers; 950 organizations; 62 cultures 9 cultural dimensions – 7 derived from Hofstede

20. G L O B E For each of the nine dimensions, items were developed at both the societal and organizational level 2 measures were used for all 9 dimensions: Items phrased in terms of the society or organization as they are Items phrased to evaluate what practices should be enacted in the society or organization

21. Dimensions of GLOBE Uncertainty Avoidance: Extent to which a society, organization, or group relies on established norms, rituals, and procedures to avoid uncertainty Uncertainty accepting societies have been found to be more innovative Mangers from high UA countries tend to be more controlling, less delegating, and less approachable High UA value career stability, formal rules, & the development of expertise Low UA value career mobility and general skills rather than specialized skills Low UA managers expect resourcefulness & improvisation High UA managers expect reliability & punctuality

22. Dimensions of GLOBE 2. Power Distance : Degree to which members of group expect & agree that power should be shared unequally Participative leadership significantly predicted by the degree of PD Germanic, Anglo, & Nordic Europeans attuned to PL Middle Eastern, East European, Confucian Asian, & Southern Asian clusters do not endorse

23. Dimensions of GLOBE 3. Institutional Collectivism: Degree to which organization or society encourages institutional or societal collective action 4. In-Group Collectivism: Degree to which people express pride, loyalty, & cohesiveness in their organizations or families

24. Dimensions of GLOBE 5 . Gender Egalitarianism : Degree to which an organization or society minimizes gender role differences and promotes gender equality High GE countries endorse charismatic leader attributes & participative leader attributes: Foresight, enthusiasm, & self-sacrifice Delegation 6. Assertiveness: Degree to which people in a culture are determined, assertive, confrontational, and aggressive in their social relationships

25. Dimensions of GLOBE 7. Future Orientation: Extent to which people engage in future-oriented behaviors such as planning, investing in the future, and delaying gratification 8. Performance Orientation : Extent to which and organization or society encourages and rewards group members for improved performance and excellence

26. Dimensions of GLOBE 9. Humane Orientation : Degree to which a culture encourages and rewards people for being fair, altruistic, generous, caring, and kind to others 9 dimensions used to analyze attributes of 62 different countries

27. Clusters of World Cultures 62 Countries divided into regional clusters Clusters determined by: Common language Geography Religion Historical Accounts 10 distinct clusters formed

28. Characteristics of Clusters

29. Leadership Behavior and Culture Clusters Derived in part from Lord and Maher (1991)- implicit leadership theory Individuals have implicit beliefs & convictions about the attributes and beliefs that distinguish leaders from non-leaders and effective leaders from ineffective leaders Leadership is in the eye of the beholder- what people see in others when they are exhibiting leadership behaviors GLOBE researchers identified 6 global leadership behaviors

30. Global Leadership Behaviors Charismatic/value-based leadership: Ability to inspire, motivate, and expect high performance from others based on strongly held core values Visionary Inspirational Self-sacrificing Trustworthy Decisive Performance oriented

31. Global Leadership Behaviors 2. Team-oriented leadership : Emphasizes team building and a common purpose among team members Collaborative Integrative Diplomatic Administratively competent

32. Global Leadership Behaviors 3. Participative leadership: The degree to which leaders involve others in making and implementing decisions Participative Nonautocratic 4. Human oriented leadership: Emphasizes being supportive, considerate, compassionate, & generous Modesty Sensitivity to people

33. Global Leadership Behaviors 5. Autonomous leadership: Refers to independent and individualistic leadership Autonomous Unique 6. Self-protective leadership: Reflects behaviors that ensure the safety & security of the leader & and the group Self-centered Status conscious Conflict inducing Face saving

34. Universally Desirable Leadership Attributes

35. Universally Undesirable Leadership Attributes

36. Strengths of GLOBE Only study to analyze how leadership viewed by cultures around the world Large Scope Well-developed quantitative research design Standardized instruments = generalizeable Cultural dimensions more expansive than Hofstede Provide information about what is universally accepted as “good” & “bad” leadership Expand our knowledge to view leadership outside our perspectives

37. Criticisms of GLOBE No clear set of assumptions & propositions to form a single theory about the way culture relates to leadership or influences the leadership process Some cultural dimensions and leaderships behaviors are vague (e.g. power distance, self-protective leadership) Implicit leadership theory- ignores research that frames leadership in terms of what people do (e.g. transformational leadership)

38. Application of GLOBE Help leaders understand their own cultural biases & preferences Help leaders understand what it means to be a good leader Help leaders communicate more effectively across cultural and geographic boundaries Practical Ways: Culturally sensitive websites Design new employee orientation programs Improve global team effectiveness

39. Future of Cross-Cultural Leadership Internet has made it easier to obtain samples & answer questions quickly Web-based surveys Real time chat Video Conferencing Blessing & a curse Unqualified individuals try to collect & interpret data

40. Unresolved Issues/ Limitations Magnitude of the effect of cultural influences unknown The influence of cultural forces on local conceptions of leadership, the social status of leaders, and the amount of influence granted to leaders Processes by which cultural entities affect member psychological states and behavior not clear Convenience sampling Valid information in interviews, self-report measures, etc.

41. Questions??

42. Sources Dickson, M.W., Den Hartog, D.N., & Mitchelson, J.K. (2003). Research on leadership in a cross –cultural context: making progress, and raising new questions. The Leadership Quarterly, 14 , 729-768. Earley, P.C. & Erez, M. (1996). Understanding the International Leader , pp. 535-625. Hofstede, G. (2009). Geert Hofstede Cultural Dimensions. Retrieved April 12, 2009, from itim International Web site: http://www.geert- hofstede.com/ Northouse, P.G. (2007). Leadership Theory and Practice, 4 th Edition, pp. 301-325.