The Global and Cultural Contexts Chapter 2 The Global and Cultural Contexts Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Learning Objectives Understand the role culture can play in leadership Describe the three levels of culture Discuss the models of national culture Identify the impact of gender on leadership Address how organizations and leader can develop a cultural mindset Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Defining Elements of Culture Values shared by group members Set of norms, customs, values, and assumptions Guides behavior Makes a group unique Makes one group different from other groups Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Levels of Culture National Culture Group Culture Group Culture Organizational Culture Organizational Culture Organizational Culture Group Culture Group Culture Organizational Culture Group Culture Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Hall’s Cultural Context High Context Cultures Rely on environmental cues and context Subtle cues convey message Trust is more important than legal and formal contract Indirect communication Low Context Cultures Rely on explicit verbal and written messages Specific and clear words convey message Formal and legal contracts guide action Direct communication and specific instructions Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

High and Low Context Cultures High Context Japanese Chinese Koreans African Americans Native Americans Arabs Greeks Latin cultures Italians English French European North Americans Scandinavians Germans Swiss Germans Low Context Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Hofstede’s Cultural Dimensions Individualism-Collectivism Power distance Uncertainty avoidance Masculinity Time orientation Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Individualism-Collectivism In individualistic cultures: Individual is autonomous from the group Personal goals have priority over group goals Individual attitudes determine behavior Relationships are based on exchange Others are far and not part of self Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Individualism-Collectivism In collectivistic cultures Individual is dependent on in-group Group goals have priority over individual goals Social norms determine behavior Relationships are based on communal terms In-group members are close Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Individualism-Collectivism Vertical – Emphasis on hierarchy Horizontal – Emphasis on equality Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Individualism-Collectivism Vertical Collectivist (VC) Rank and status among members Obedience to authority Sacrifice of self Horizontal Collectivist (HC) Members are equal No hierarchy Decisions based on consensus Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Individualism-Collectivism Vertical Individualist (VI) Each individual considered unique Each individual is to others Horizontal Individualist (HI) Each individual considered unique All members are equal Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Trompenaar’s Cross-Cultural Organizational Cultures Egalitarian Incubator Individual-oriented Leader removes obstacles Focus on individual growth Guided Missile Performance-oriented Leader as a guide Focus on achieving common goal Person Task Family Power-oriented Leader is a strong, caring parent Focus on building relationships Eiffel Tower Rigid and robust Leader is undisputed legitimate boss Focus on rational performance Hierarchical Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall GLOBE Dimensions Power distance: Degree to which power is distributed equally Uncertainty avoidance: Extent of reliance on norms and rules Human orientation: Degree to which fairness and kindness are valued Collectivism I (Institutional): Degree to which collective action and distribution of resources is valued Collectivism II (in-group): Degree to which individual are close to their family or organization Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall GLOBE Dimensions Assertiveness: Degree of directness and confrontation Gender egalitarianism: Extent of gender differentiation Future orientation: Extent of investment in the future rather than the past or present Performance orientation: Degree to which performance is valued Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Dimensions of Diversity Secondary Dimensions Marital Status Primary Dimensions Education Gender Ethnicity Income Occupation Person Sexual Orientation Disability Religion Socio-economic background Age Other group memberships Race Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Gender and Leadership: Current State Women make up 49.5% of the workforce in the U.S. Women are 50.8% of management and professional ranks in the U.S. Women hold 15.2% of corporate officer positions Only 3% of CEOs of Fortune 500 companies are female On the average, women earn 70% of their male counterparts Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Gender and Leadership: Current State In 2009, women made up 14% of U.S. House of Representative members Only 6 of president Obama’s cabinet are female The number of female superintendent of schools dropped since 1910 from 9.4% to 4.6% in 1990 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Suggested Causes of Gender Differences in Leadership Leadership style Balancing work and home Women are less committed to their work and career Women have less experience in organizations Women quit their jobs more often Women are less educated Blatant and subtle discrimination Persistent gender stereotypes Glass ceiling Cultural factors Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Cultural Mindset A cultural mindset is a way of thinking that takes culture into consideration in deliberation, decision-making and behaviors. Culture is integral to all thoughts, decisions, and actions--not an afterthought. Having a cultural mindset goes beyond a simple set of skills. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Elements of a Cultural Mindset Open to and aware of cultural differences and their impact on perceptions and behaviors Inquisitive about how others do things Appreciate and respect cultural diversity Aware of your own cultural values Willing to share and exchange cultural information Willing to learn and expand Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Elements of a Cultural Mindset See yourself as part of the world Use culture as one of the bases for understanding problems Proactive in addressing cultural situations Skilled in interacting with those from different cultures Sort through cultural differences and find opportunities to innovate Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Factors in Becoming a Multicultural Organization Organizational culture Similar role models Education and training Leadership Organizational policies Research and measurement Accountability Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Leading Diversity Focus on common vision and purpose Celebrate all cultures Provide the “soft tools”: vision and purpose Allow others to develop the “hard tools”: strategy, structure, systems Place diverse people in leadership positions Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Leading Diversity Emphasize learning and challenging existing assumptions Equalize power Provide team training to improve interpersonal trust Increase trust through integrity, contact and transparency Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Leadership Challenge Women play almost no role in public life in Saudi Arabia Western women are often treated as a “3rd sex”; neither male, nor female U.S. laws prohibit any discrimination based on sex (even in a foreign assignment) Objectively, the best choice is the female executive Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Leading Change: Deloitte Named one of the best companies to start a career CEO, Salzberg, committed to diversity Recruit in wider group of colleges Mass Career Customization: Create better fit between life and work All employees are eligible Develop a unique path to success Tailor career with help of manager Key role of leadership in diversity Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Leadership in Action: Nooyi One of two female CEOs in a Fortune 100 company Strong focus on being herself and authentic Brilliant, talented, irreverent Believes women have to work harder than men to succeed Her 5 Cs: Competence Confidence Communication Moral compass Being the conscience of the company Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall