Global Leaders and Culture

Chapter 1

IntroductionOne could make some basic assumptions

about people one would encounter throughout their workday

Most companies were regionally focused then, from suppliers to customers to employees

That meant limited exposure to other ideas and approaches to problem solving

This meant that one knows all the rules of engagement

Introduction (cont’d)Businesses of all sizes are grapping with

how to maximize the opportunities and minimize the challenges of cultural differences

Diversity can be a potent and differentiating competitive edge.How? Benefits? Challenges?

Culture underpins all human activities and explains much of our behavior

What is the impact of culture on human behavior and performance in a business context?

Introduction (cont’d)Imagine the problems one can tackle

when they assemble a team with:

a Western approach to problem solving (one that is time bound, linear, and focuses on the end result) and

join it with an Eastern approach to problem solving (one that seeks harmony, honors process, and values team relationships more than concrete solutions)

Introduction (cont’d)This chapter provides a rationale for all

professionals working globally to: understand and respect their counterparts develop the cross cultural sensitivity

competency required to work effectively in today’s complex world.

Culture counts. How?Understanding the environment is a

fundamental requirement for maintaining a competitive advantage.

Successfully adapting to changes in the environment is a requirement for survival.

Culture DefinedAt the root of the issue, we are likely to find the

following as the reasons behind failure:communicationcultural misunderstandings

Culture means the values, customs, traditions, and ways of living which distinguish one group of people from another.

Culture is patterns of thinking, feeling, and acting underpinning the collective programming of the mind which distinguishes the members of one group or category of people from another.

Culture has always been distinct from one another.Culture is like an iceberg, part of it is seem but

most is not.

Culture Defined (cont’d)Culture is a distinctly human means of

adapting to circumstances and transmitting this coping skill and knowledge to subsequent generations.

Culture gives people a sense of:who they are, belonging, how they should behave , what they should be doing.

Culture Defined (cont’d)Culture impacts behavior, morale, and

productivity at work.

Culture includes values and patterns that influence company attitudes and actions.

Culture is considered the driving force behind human behavior.How?

Is culture dynamic or static?

10 categories to understand culture

Sense of self and spaceCommunication and languageDress and appearanceFood and feeding habitsTime and time consciousnessRelationshipsValues and normsBeliefs and attitudesMental process and learningWork habits and practices

Explicit versus Implicit CultureSome aspects of culture are overt, while

others are covert

Examples of implicit cultureDiscriminationRacism

Examples of explicit cultureCustomsTraditionsFolkloreDress code

Hofstede’s research4 dimensions of national culture

Power distancePower in institutions is distributed unequally

Uncertainty avoidanceFeels threatened by uncertain/ambiguous situations

IndividualismTaking care of oneself and family

MasculinityDominant values of assertiveness, material things

Global Leader SpecificationsGlobal leaders should:

be sensitive to cultural differencesappreciate people’s distinctiveness and

effectively communicates with individuals from different cultures

not impose his/her own cultural attitudes and approaches

not be ethnocentric – belief in the inherent superiority of one’s own group and culture

Cultural understandingAs a result of cultural understanding, one

becomesBroad mindedTolerant of cultural uniquenessGain new insights for improving human

relationsAware of the impact of our native cultureMinimize the impact of culture shockMaximize intercultural experiences

Global organizations4 types of corporations

Ethnocentric corporationsIf it works at home, so it must work overseas

Polycentric corporationsLocal people know what is best for them

Regiocentric corporationsRegional insiders know what neighboring countries want

Geocentric corporationsAll for one and one for all. We will work together to

solve problems anywhere in the world