Cross-Cultural Leadership

1. Cross-Cultural Leadership Crystal Bonneau-Kaya & Heather Stroupe-Smith

2. Some Differences to Note • 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. • Malaysians: the leader is expected to behave in a manner that is humble, modest, and dignified.

3. Overview • Importance of Culture • Definition of Culture • Parameters of Culture • Related Concepts & Cross-Cultural Studies • G. Hofstede • GLOBE • Universally Desirable & Undesirable Leadership Attributes • Challenges to Cross-Cultural Leadership • Questions & Sources

4. Importance of Culture • Globalization • Increased interconnection between people (International trade, cultural exchange, and worldwide telecommunication systems) • Need for leaders to become competent in cross-cultural awareness and practice • Diversity in our country • Operationalization of the Culture Construct • Need for more research: • No consistency agreed upon a “leadership” definition • No clear understanding of the boundaries of the construct space (more on this later)

5. Definitions of Culture • Common history • Religion • Language • Ethnic heritage • Political experiences • Ecological variables • Opinions • Values • Beliefs

6. Definitions of Culture • A patterned way of thinking, feeling, and reacting, acquired and transmitted mainly by symbols, constituting the distinctive achievements of human groups, including their embodiments in artifacts (Kluckhohn, 1951). • Systems of shared meanings placed upon events (Smith & Peterson, 1994) • The collective programming of the mind that distinguishes the members of one group from another (Hofstede, 1980)

7. Definitions of Culture • Distinctive normative systems consisting of model patterns of shared psychological properties among members of collectivities that result in compelling common affective, attitudinal, and behavioral orientations that are transmitted across generations and that differentiate from each other. • Shared psychological properties: assumptions, beliefs, values, interpretations of events (meanings), social identities, and motives (House, Wright, & Aditya, 1996).

8. 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

9. 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

10. Related Concepts • Strength of Culture: the proportion of members who have common experiences and the intensity of their reactions. • 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 • Monolithic Culture: having a massive uniform structure that does not permit individual variations (Funk & Wagnalls Standard Dictionary, 1958). • Pluralist Culture: contains two or more subgroups that share some common experiences but not others.

11. 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 culture 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.

12. Cross-Cultural Study • Haire, Ghiselli, & Porter (1966) • 3,641 managers; 14 countries • 28% of questionnaire variance was a result of country differences • Universal characteristics among managers: favored democratic styles of management; consistently felt that subordinates lacked the abilities necessary to be led democratically; endorsed egalitarian organizational structures yet saw themselves as part of an elite group; felt it was better to direct than persuade; unsatisfied needs: autonomy & self-actualization

13. Cross-Cultural Study • Bass, Burger, Doktor, & Barrett (1979) • 8,566 middle managers; 12 countries; 1966-1973 • Multiple measures of observed behavior & questionnaire responses • Strong main effects of national citizenship & 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)

14. G. Hofstede • “Culture is more often a source of conflict than synergy. Cultural differences are a nuisance at best and often a disaster.” • Understand and apply the knowledge of cultural differences • THEORY • Reduce frustration, anxiety, and concern

15. G. Hofstede • …is not without criticism • Overly simplistic dimensional conceptualization of culture • The original sample came from a single multinational corp. (IBM) (See commentary from Brendan McSweeney for a really good bashing session) • His work ignores the existence of substantial within-country cultural heterogeneity • His measures are not valid • Culture changes over time rather than being static as suggested by the dimensions

16. G. Hofstede’s 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”

17. G. Hofstede’s 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

18. U.S. G. Hofstede Profile PDI: 40 IDV: 91 MAS: 62 AVI: 46 LTO: 29

19. G. Hofstede’s 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)

20. GLOBE • 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

21. GLOBE • 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

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

30. Characteristics of Clusters

31. 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

32. 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

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

34. 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

35. 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

37. Universally Desirable Leadership Attributes

38. Universally Undesirable Leadership Attributes

39. 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

40. 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)

41. 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

42. 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

43. 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.

44. Questions??

45. 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, 4th Edition, pp. 301-325.