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Defining Culture
A culturally diverse workforce has long been an important reliance on the tourism and hospitality industry.
As defined in the Merriam-Webster dictionary, culture pertains to the customary beliefs, social forms, and
material traits of a racial, religious, or social group. It also refers to a set of shared attitudes, values, goals,
and practices that characterizes an institution or organization.
Culture is the social glue that helps hold the organization together by providing standards for what
employees should say and do. It is a sense-making, control mechanism that guides and shapes employees’
attitudes and behavior.
Culture is constantly created and changed as groups of people socially interact with one another, allowing
cohesion between people from distinct organizations or departments, work as a connection factor. Inter-
organizational relationships, and organizational cultures, rely on trust, commitment, communication,
learning, ways to perceive and cope with reality, and shared meanings and symbols (De Anca & Vasquez,
2007).
Organizational culture represents a perception that the organization’s members hold in common. The
dominant culture expresses the core values (the primary or dominant values accepted throughout the
organization) that gives the organization its distinct personality. For instance, Zappos’ (an online shoe and
clothing retailer based in Las Vegas, Nevada, United States) culture values customer care and dedication over
speed and efficiency, which explains Zappos executives and employees’ behaviors (Robbins & Judge, 2018).
In addition to each organization’s dominant culture, subcultures (mini cultures within an organization,
typically defined by department designations and geographical separation) tend to develop in large
organizations in response to common problems or experiences a group of members faces in the same
department or location. Most large organizations have a dominant culture and numerous subcultures. It is
the shared meaning aspect of culture that makes it a potent device for guiding and shaping organizational
behavior.
Service Culture
It is possible to differentiate between strong and weak cultures. If most employees (responding to surveys,
for instance) have the same opinions about the organization’s mission and values, the culture is strong; if
opinions vary widely, it is weak.
In a strong culture, the organization’s core values are both intensely held and widely shared. The more
members who accept the core values and the greater their commitment, the stronger the culture and the
greater its influence on member behavior. A weak culture exemplifies otherwise. The culture that should be
existing in the tourism and hospitality industry is known as service culture. This culture anticipates guests’
needs and renders services accordingly before they ask for it. Guest satisfaction must be the topmost priority
for any tourism and hospitality professional.
Functions of Culture
Culture defines the rules of the game in an organization.
 It has a boundary-defining role: it creates distinctions between organizations.
 It conveys a sense of identity for organization members.
 It facilitates commitment to something larger than self-interest.
 It enhances the stability of the social system.
A strong culture supported by formal rules and regulations ensures employees will act in a relatively uniform
and predictable way. Today’s trend towards dispersed organizations makes culture more important than
ever, and ironically more difficult at the same time. When formal authority and control systems are reduced,
the culture’s shared meaning can point everyone in the same direction.
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In virtual organizations (institutions that work remotely), the lack of frequent face-to-face contact makes
establishing a common set of norms very difficult. Strong leadership that fosters a strong culture by
frequently communicating about common goals and priorities is necessary to make organizations more
adaptive and innovative in the tourism and hospitality industry.
Organizational Climate
Organizational climate refers to the shared perceptions that organizational members have about their
organization and work environment. This aspect of culture is like team spirit at the organizational level.
When everyone has the same general feelings about what’s important or how well things are working, the
effect of these attitudes will be more than the sum of the individual parts. A positive organizational climate
has been linked to higher customer satisfaction and organizational financial performance, as well.
Dimensions of organizational climate have been studied, including innovation, creativity, communication,
warmth and support, involvement, safety, justice, diversity, and customer service. There are several findings
managers can use to improve their organizational design and team-building plans (Robbins & Judge, 2018).
For instance, a new airline or hotel employee who comes across a diverse organizational climate will feel
more comfortable collaborating with coworkers regardless of their demographic backgrounds. The
organizational climate also influences the habits people adopt. If there is a safety climate, everyone wears
safety gear and follows safety procedures even if individually, they would not normally think very often
about being safe. Studies have shown that a safety climate decreases the number of documented injuries on
the job, like those in kitchens or aircraft.
Cultural Categories and Dimensions
In a study by Fons Trompenaars (a Dutch organizational theorist, management consultant, and author in the
field of cross-cultural communication), he conceived culture as to how organizations resolved a range of
universal problems that could be divided into three (3) categories: a) those that arise from relationships with
other people, b) those that arise from the passing of time, and c) those related to the environment.
Problems Arising from Relationships with Other People
 The concept of self: individualism versus collectivism
One of the basic cultural differences in society is the extent of individualism compared to collectivism.
o In an individualistic culture, the individual puts their needs before those of the group. For an
individualistic person, the best form of guaranteeing the group’s welfare is to make its members
self-sufficient. The general values appreciated by the group are those related to self-sufficiency
and self-confidence. In general, the individuals tend to have a distant behavior at the emotional
and psychological level.
o In a collectivist culture, a person’s identity depends on the individual’s role in the group,
whether the group is represented by the family, the team, work, and the like. The success and
survival of the group guarantee the welfare of its members. The individual normally puts the
group’s needs and feelings before their own, believing this to be the best way to ensure their
survival. Interdependence and harmony among members of the group are the most appreciated
values. The group members are psychologically and emotionally close, but distant to those who
do not belong.
 The concept of obligations: universalism versus particularism
When obligations to family and friends interfere with social obligations, individuals belonging to
different cultures normally position themselves at one or the other end of the spectrum ranging from
particularism to universalism.

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o Universalist cultures apply absolute concepts in certain situations independently of

circumstances or particular situations. One must always try to apply the same rules to similar
circumstances, like the concept of fairness in treating everybody the same way, without
exception for families or friends. The person has to set aside their personal feelings and analyze
a situation objectively. This is true also on occasions where families or friends become guests in
the airline, hotel, or restaurant where the tourism or hospitality professional is employed.
o Particularist cultures have no absolute concepts, and the way the individuals behave depends
on the circumstances. Each person will behave with their family and friends in the best way
possible, believing that everybody else will receive the same protection from their group
members.
Problems Arising from the Passage of Time
 The concept of time: monochronic or polychronic
Time is probably one of the perceptions with the deepest cultural roots in life and work. Time is tightly
bound to the rhythm of nature. Different cultures have different concepts of time, resulting from their
environmental conditions, history, traditions, and general customs.
o Monochronic. For people with a monochronic concept of time, time is almost tangible; they talk
of it as something that you can “find,” “save,” “fritter away”, or “lose.” Monochronic people
have some of the following traits:
 Only do one thing at a time
 Concentrate on their work
 Take time commitments seriously (deadlines, appointments, and the like).
 Do not depend greatly on context and need information
 Are committed to their work
 Follow plans to the letter
 Avoid bothering others; respect rules of privacy and are considerate
 Show great respect for private property; seldom borrow or lend
 Are accustomed to short-term relationships
o Polychronic. People with a polychronic concept of time do not consider it tangible and pay more
attention to human transactions than calendars. Polychronic people have some of the following
traits:
 Do many things at the same time
 Are easily distracted and suffer from interruptions
 Consider time commitments as objectives to be achieved if possible
 Depend greatly on context and already have the information they need
 Are committed to people and human relationships
 Change plans easily and frequently
 More concerned about those who are closely related (family, friends, and colleagues)
than privacy
 Show a tendency to form lifelong relationships
In general, northern cultures such as those in the Nordic countries (Sweden, Netherlands, Finland,
etc.), the UK, and Germany are closer to monochronic systems. In contrast, southern cultures such as
Asian, Mediterranean, Arab, and Latin American countries are closer to polychronic systems.

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Control of the Environment in Cultural Diversity

 The concept of control: activism compared to fatalism
Cultures differ in their perception of the relationship of the individual to the world around them. They differ
in their perception of the influence that a person can have on the exterior world and whether the can
manipulate external forces and their destiny. The two (2) extremes of this dimension are represented by
fatalist and activities attitudes.
o In an activist culture, control is in the hands of individuals. There are very few givens in life, and
most of them can be manipulated and therefore modified. There are no limitations to what a
person can achieve if they really commit themselves and make the necessary effort. Life is what
each person makes it.
o In a fatalist culture, control is not in the hands of the individual. Some aspects of life are
predetermined and inherent things. There are definite limits beyond which nobody can go and
circumstances that cannot be changed and should, therefore, be accepted.
Cultural dimensions influence our perception of time and space, and our way of relating to others. This, in
turn, affects our way of exercising authority and working in groups and other fundamental aspects of an
organization.
Five Dimensions of Culture
According to Geert Hofstede, a well-known Dutch social psychologist on his research about cross-cultural
groups and organizations, these five (5) cultural dimensions learn within the family or at school are inherent
in the perception of the human adult and determine behavior in the workplace (Braedel-Kühner, C. & Müller,
A.P., 2016).
 Power distance. This dimension refers to the degree that the members with the least power in the
organization accept and expect an unequal distribution of power. It suggests that the inequality that
exists in a society is accepted both by its leaders and members.
 Individualism versus collectivism. At the extreme of individualism, we find organizations where the
bonds between people are loose. In these societies, all individuals are expected to look after
themselves and their immediate family only. At the extreme of collectivism, we find societies where
their members form strong, cohesive groups from the moment they are born; these are often
extended families, including aunts and uncles and grandparents, which continue protecting each
other in exchange for unconditional loyalty.
 Masculinity versus femininity. Studies show that some cultures are dominated by masculine values,
such as domination and control. On the other hand, other cultures can be identified as feminine,
where typical feminine values such as sensitivity and concern for others are predominant.
 Uncertainty avoidance. Uncertainty avoidance refers to the tolerance that society shows to
uncertainty and ambiguity and, therefore searching for the truth about humanity. It indicates the
degree to which a culture programs its members to feel comfortable or not in situations that are not
highly structured. These unstructured situations are new, unknown, surprising, and different from
what normally happens. Cultures that are averse to uncertainty try to reduce to the minimum the
possibility that these types of situations will arise by applying laws and strict rules and adopting
precautions and safety measures.
On the other hand, some cultures have no aversion uncertainty, and they are more tolerant of
differences of opinion. Hence, they try to reduce rules and regulations to the minimum. People who
belong to these cultures have an environment that does not expect them to express emotions.
 Short-term orientation versus long-term orientation. The fifth dimension was identified in a later
study based on a questionnaire designed by Chinese scholars, in which 23 countries took part.
According to this dimension, the values associated with a long-term orientation are saving and
perseverance. In contrast, the values associated with short-term orientation are respect for
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tradition, meeting social obligations, and the protection of personal “image.”

The power distance and aversion to uncertainty dimensions are undoubtedly the two (2) that have the most
influence over organizations’ management styles. Both help to answer two (2) fundamental questions:
 Who should have the power to decide?
 What rules and procedures should be followed to reach the desired outcome?
The cultural dimensions identified by Hofstede served as a foundation for the development of numerous
studies in different areas of management (motivation, leadership, relationships between superiors and
subordinates, the sources of an existing power in an organization), and the structure and the culture of the
organization.
The categories and dimensions discussed are not rigid and change according to the circumstances and
internal and external pressures. As a result, in the same country or even in the same organization, different
characteristics may be present simultaneously due to the diversity of elements that coexist in our companies
today.
The perspective of cultural complexity suggests organizations’ culture is more complex, diverse, and
intrinsically contradictory. It is now highly unusual for all the members of an organization to belong to the
same culture, or subculture, as a person can identify themselves by gender, ethnic origin, their role as a
parent or spouse, their sports club, their profession, department or division, their trade union, their
geographic region, their industrial sector, and their country or region. All these possible cultural identities
can simultaneously influence the cultural context of an organization.
Diversity is the vehicle through which nature adapts, competes, and evolves. The existence of diverse
elements in a group, particularly in the tourism and hospitality industry, can be its salvation when
environmental conditions change. Traditional ways of seeing things no longer guarantee survival.
Being a woman does not automatically mean that someone is sensitive, in the same way that being Italian
does not necessarily mean that someone is polychronic. However, the characteristics of sensitivity and being
polychronic are real, and tourism and hospitality managers must know the advantages and disadvantages of
an employee who is sensitive or polychronic, and knows how to utilize them to the benefit of the
organization, independently of the label we put on these feminine or cultural traits.
In a labor market context, differences in gender, culture, and personality are even more marked. In a
changing economic environment, it is not easy to decide which style of behavior is the most appropriate for
the company: a multifaceted person capable of generating work rapidly in many directions, or a
monochronic planner focused on details and capable of producing rigorous work.
Ideally, each person should be capable of both approaches, and training helps each acquire the other’s skills.
Nevertheless, while people are being trained to be more complete beings, they must learn to respect and
complement differences.

References:
Braedel-Kühner, C. & Müller, A.P. (2016). Re-thinking diversity: Multiple approaches in theory, media, communities, and managerial
practice. Springer Fachmedien Wiesbaden.
De Anca, C. & Vasquez, A. (2007). Managing diversity in the global organization: Creating new business values. Palgrave Macmillan.
Merriam-Webster Dictionary (2020). Culture. Retrieved 05 May 2020, from https://www.merriam-webster.com/dictionary/culture.
Robbins, S.P., & Judge, T.A. (2018). Essentials of organizational behavior (14th ed.). Pearson Education Limited.

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Artifacts and Levels of Organizational Culture

Culture is constantly created and changed as groups of people socially interact with one another, as well as
allows cohesion between two (2) or more people (i.e., two [2] companies, or customer and service provider)
from distinct organizations, working as a connecting factor. This cohesion is known as inter-organizational
culture. Likewise, the higher the frequency and degree of communication in the relationships, the higher the
probability of cultural integration; the more cultural comprehension among the partners, the more
relationship quality. Relationships are not chosen; they are built (Larentis, Antonello, & Slongo, 2019).
Inter-organizational relationships, andas organizational cultures rely on trust, commitment, communication,
learning, ways to perceive and cope with reality, and shared meanings and symbols. Therefore,
organizational cultures involved can be changed through specific systems of meanings and symbols because
of inter- organizational relationships. Nonetheless, cultural changes do not necessarily include a redefinition
of the organization’s core values and meanings.
Artifacts of Organizational Culture
There are five (5) artifacts of organizational culture that help employees learn the culture (Lussier & Hendon,
2018):
 Heroes, such as founders Steve Jobs of Apple,
Sam Walton of Walmart, Mark Zuckerberg of
Facebook, Elon Musk of Tesla, and others who
have made outstanding contributions to their
organizations.
 Stories, often about founders and others who
have made extraordinary efforts. These include
stories about Sam Walton visiting every
Walmart store yearly, or someone driving
through a blizzard to deliver a product or
service. Public statements and speeches can also
be considered stories.
 Slogans, such as at McDonald’s Q, S, C, V (or Figure 1. Culture Artifacts and Levels of Culture
quality, service, cleanliness, and value). Source: Human resource management: Functions, applications,
and skill development (3rd Ed.), 2018
 Symbols, such as plaques, pens, jackets, or a
pink Cadillac at the cosmetics firm Mary Kay.
 Ceremonies, such as recognition or awards night for employees, brands, and Jollibee Food Corporation
branches.
Three Levels of Culture
The three (3) levels of culture include behavior, values and beliefs, and assumptions.
 Level 1: Behavior. Behavior includes the observable things that people do and say, or the actions
employees take. Artifacts result from behavior and include written and spoken language, dress, material
objects, and the organization’s physical layout. Heroes, stories, slogans, symbols, and ceremonies are all
part of the behavior-level culture. The behavior level is also called the visible level. Values, beliefs, and
assumptions are considered the invisible level, as you cannot observe them.
 Level 2: Values and beliefs. Values represent how people believe they ought to behave, and beliefs
represent “if, then” statements like “If I do X, then Y will happen.” Values and beliefs provide the
operating principles that guide decision making and shape the behaviors that result in level- 1 culture.
Values and beliefs cannot be observed directly; we can only what they value and believe in
people’s behavior.

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Although organizations use heroes, stories, symbols, and ceremonies to convey important values and
beliefs, slogans are critical to level-2 culture. A slogan expresses key values. Slogans are part of
organizational mission statements, while a philosophy (e.g., FedEx’s philosophy of people-service-profit)
is a formal statement of values and beliefs.
 Level 3: Assumptions. Assumptions are values and beliefs that are so deeply ingrained that they are
considered unquestionably true. Because assumptions are shared, they are rarely discussed. They serve
as an automatic pilot to guide behavior. People often feel threatened when assumptions are challenged.
If you question employees about why they do something or suggest a change, they often respond with
statements like, “That’s the way it’s always been done.” Assumptions are often the most stable and
enduring part of the culture and are difficult to change.
Notice that behavior is at the top of the diagram in Figure 1. Assumptions, values, and beliefs affect
behavior, not the other way around; in other words, cause and effect work from the bottom up.
Because organizational culture is based at least partly on assumptions, values, and beliefs, it is a powerful
force in controlling how people act within its boundaries. For instance, if the culture says that we value hard
work and productivity, an individual on one of the teams fails to do their part, work hard, and be productive,
then the other team members are quite likely to pressure that individual to conform to the culture or leave
the organization. Since assumptions, values, and beliefs are so strong, shirking individuals will most likely
change their actions to conform to those that the culture values.
Elements of Organizational Culture
Initial Elements
Initial elements are aspects that sustain and allow the beginning of the development of an inter-organizational
culture.
 Shared symbols refer to any physical phenomenon to which people assign a name, meaning, or
value. Shared symbols and meanings are those common cultural elements on which relationships
start developing. They ease contact, improve interaction quality, and expand the sharing of ideas, as
service providers and customers have, to some degree, similar perspectives to understand the world
and the businesses.
 Openness to new ideas increases the chance to better understand the counterpart, despite different
values between the service providers and customers, because humbleness and interest in learning
with the other are present. Hence, it allows more openness to diversity because members from
different organizations realize the richness of solutions when interactions occur between them and
the importance of being open to different perspectives and interpretations of the world.
 Frequency and quality of interactions allow deeper knowledge of the counterpart, and understand
that values, world visions, and means to solve problems are similar and different. When combined
with shared meanings and symbols, the frequency becomes more effective and more valued by their
counterparts. Once articulated with openness to new ideas, we will have more chances to deal with
constructive conflict because the focus is on solving the problem and satisfying market needs. In this
case, quality on how people interact and solve problems together enables better means to give
attention to others, because of reliability in actions increases. Problems are solved more
collaboratively once people know how the counterpart can help, which allows the existence of a
network of symbols and meanings across organizational boundaries.
Shared meanings and symbols, openness to new ideas, and frequency and quality of interactions allow an
inter-organizational culture to start its development. This occurs because parties have felt safe and have
shown optimism about the relationship’s future, developed through these interactions, which have led to
more similar new perspectives to understand the world.
Intermediate Elements
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Inter-organizational relationships depend fundamentally on people and their ideologies, practices,

prejudices, expectations, capabilities, meanings, and contexts. Trust formation, commitment, and learning
will allow sharing ymbols and meanings between individuals from different organizations.
These elements are intermediate because they depend on the beginning of a relationship and the initial
inter- organizational culture elements. However, when this first moment passes, initial and intermediate
elements interact with one another.
 To establish trust, a proper environment is needed. Trust serves as the core element for both
organizations building on an inter-organizational culture or relationship. The existence of trust
assumes one’s belief about one’s counterpart’s honesty and benevolence; it increases the
disposition to share information and the safeness to invest in the relationship and decreases
opportunism.
Trust has been related to information given, actions executed, and people involved in the relationship.
 Commitment is about the company’s permanent will to continue the relationship with another,
without measuring efforts to maintain it. There is a commitment related to actions, results, and
people beyond conflicts and delivering promises.
 Concerning learning, we have identified learning processes and learning results. Informal learning
processes prevailed, related to experiences, collective activities, and search for better performance.
both customers’ and service providers’ members learn from one another, mainly about market
practices and consumer behavior. Another relevant aspect is learning about management systems
and concepts, which depend on time and members’ experience, due to their level of complexity. This
is particularly useful in today’s business world, where e-commerce is already becoming a necessity.
Resultant Elements
When organizations decide to work together, they decide that will impact them in the long term, even in
unsuccessful relationship situations. For those who perceive the importance of relationships for their
strategies and processes, the inter-organizational relationship will result in organizational culture changes
under different perspectives.
 Cooperation is the result of trust and commitment. Cooperation is evident with those involved in the
relationship assembled to discuss and solve problems. They cooperate to cope with situations that
require help from both parties or solve problems in ways that consider both the service provider and
customer.
 Need for change must be expected for the organization to continuously grow and improve. It allows
better problem-solving across organizations because conversations and discussions inside
organizations occur under a different atmosphere and perspective than external ones from partners
or contacts.
When people involved in relationships begin to understand their partners’ actions, under the influence of
leaders who support and guide these interactions, they perceive similarities in their mindsets and become
aware of the partnership and their role in developing it. This process promotes trust, commitment, and
learning, which will contribute to better cooperation, increase in similar meanings and symbols, and a better
work environment.
References:
Larentis, F., Antonello, C. S., and Slongo, L. A. (2019). Inter-organizational culture: Linking relationship marketing with organizational
behavior. Springer Nature Switzerland AG.
Lussier, R., and Hendon, J. (2018). Human resource management: Functions, applications, and skill development (3rd Ed.). SAGE
Publications, Inc.

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Role of Leadership
The culture that organizations are embedded in influences their views about leadership. Besides
organizational culture, there are two (2) other cultures that influence people in the workplace. These three
(3) are altogether referred to as cultures model. This model is not only based on organizational culture of
global businesses but also captures influences in local companies.
Personal culture is the shared combination of an individual’s traits, skills, and personality formed within the
context of his or her ethnic, racial, familial, and educational environments. Everyone has a unique personal
culture. National culture is a shared understanding that comes from the combination of beliefs, values,
attitudes, and behaviors that have provided the foundation for the heritage of a country. Although it is a
shared understanding, individuals within a nation still have a very wide range of beliefs about their nation.
For interactions within organizations, culture is a mix of personal, national, and organizational culture. Inter-
organizational culture occurs between participants from different organizations who share the same
meanings and symbols. Tourism and hospitality leaders must, then, respond to the following questions to
evaluate where the organization or workplace is in terms of organizational culture.
o How do leaders and people contribute to the development of inter-organizational culture?
o How should leaders and people, both closed and distant from relationships, be prepared for such inter-
organizational interactions?
Cultural Perspectives
Focusing on the importance of relationships, people must be reinforced, supported, inspired, and challenged
to realize what a relationship is and its implications to the totality of the organization. In relation to the three
(3) cultural perspectives of integration, differentiation, and fragmentation, leaders must be aware of their
role in the comprehension of these perspectives, the way these perspectives will affect people subordinated
to them, as well as their interactions between people from different organizational areas and companies
(Larentis, Antonello, & Slongo, 2019).
 In connection with the perspective of integration (removes ambiguity by focusing people's attention on
unifying values and assumptions), when an organization decides to deal with cooperative relationships
and is aware of their features, the importance of the relationship is likely to be somehow already
present. Misunderstandings brought by non-shared meanings and symbols may cause disintegration.
Therefore, organizational leaders must initiate group conversations, meetings, and visits.
 Shared meanings and symbols associated with the perspective of differentiation (have different views),
interpretation, and practices about inter-organizational relationships pose a challenge to the
organization. In such instances, visits and meetings can be venues for encouragement and support.
 About the perspective of fragmentation (interrupts coordination processes in environments brought by
gaps or uncertainties), the role of leadership is to comprehend how such meanings and symbols interact
between organizations. This aims to guide people, considering the way relationships are supposed to
perform in the organization or to find out some practices and narratives, which may contribute to the
way top management teams make sense and interpret how relationships operate.
In all perspectives, attention shall be given to the new employees. Beyond the aspects of selection,
development, and appreciation, organizational leaders need to get involved in the rites associated with new
employees, and the way they will learn a new culture. Mentoring is another useful tool.
Mentoring is a relationship between two (2) individuals with the goal of professional and personal
development. The mentor is usually an experienced individual who shares knowledge, experience, and
advice with a less experienced person or mentee. New employees start learning an organizational culture
since their first day, and they will learn from the available resources and mentors, comparing and interacting
with their experiences and paths.

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Inter-organizational Learning
Organizational performance and success are directly connected to the understanding of learning dynamics.
Relationship development, maintenance, and performance are based on people learning how to deal with
each other, understanding different positions, and acquiring more knowledge from facts and experiences.
Apart from trust, inter-organizational learning is one of the key factors for inter-organizational relationship
performance.
Inter-organizational learning is defined as a dynamic process that occurs in cooperative inter-organizational
relationships, in different structured and non-structured social spaces, which encourage learning situations,
described as learning episodes (Larentis, Antonello, & Slongo, 2019). Learning does not only occur in a
person’s mind, but also in their social interactions; it is not only a cognitive phenomenon, but also a cultural
and social one.
Situated learning puts thought and action into a specific a time and space. It means involving individuals,
environments, and activities to make learning complete. For instance, suppliers and service providers,
interacting to develop a new product or even to define how to improve service quality to final customers,
are learning, although not having a specific program to develop capabilities and improve tasks. This explains
how inter-organizational learning shows its cultural and social implications.
An important aspect of inter-organizational learning is the presence of dialogue. Dialogues work as
interactive joint learning processes, frequently spontaneously and without having rules, but limited by a
serious intention to achieve mutual understanding. As parties begin sharing information, a dialogue process
is being developed.
Dialogues constitute a specific element which will lead to interpretation or sense-making. Cultural meanings
will be generated, interpreted, and figured out. During the interactions, people have the opportunity to
learn, regardless of the lack of organizations’ actions and practices associated with learning.
Cultural Competence
There has been a great deal of focus on the global leadership competencies needed for success in the rapidly
changing global environment. The competencies needed for effective global leadership, whether
domestically in a multicultural environment or abroad, are similar. For leaders to be successful in
multicultural interactions, they must be globally literate.
To be globally literate means seeing, thinking, acting, and mobilizing in culturally mindful ways. Global
literacy is the sum of the attitudes, beliefs, knowledge, skills, and behaviors needed for success in today’s
multicultural, global economy (Connerley & Pedersen, 2005). It also means that leaders must possess the
following competencies:
 Personal literacy – understanding and valuing oneself
 Social literacy – engaging and challenging other people
 Business literacy – focusing and mobilizing one’s organization
 Cultural literacy – valuing and leveraging cultural differences
All these competencies are both interrelated and interdependent. Together they form the foundation for
global competence. How each of these literacies is expressed depends on the culture in which the leader is
working, living, and conducting business. The following characteristics are important in leading diverse
organizations successfully:
 A personal, long-range vision that includes employees of different ethnic and cultural groups
 An awareness of multicultural issues and broad knowledge of diversity dimensions
 An openness to change in themselves by encouraging feedback from their employees, accepting
criticism, and showing a willingness to change their behavior
 Mentoring and empowering those who are culturally different.
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For leaders to be effective in multicultural environments, they must have the necessary awareness,
knowledge, and skills through training. This three-step approach is best known as multicultural
competencies:
 Awareness – provides the basis for accurate opinions, attitudes, and assumptions. It presumes an
ability to compare alternative viewpoints accurately, relate or translate priorities in various cultural
settings, identify constraints and opportunities in each cultural context, and understand one’s
limitations.
A well-defined awareness is essential for leading and interacting with others. If the awareness stage
is overlooked in multicultural leadership training, then the knowledge and skills – however accurate
and effective – may be based on false assumptions. If training does not go beyond awareness
objectives, leaders will be frustrated because they can see the problems but cannot to change
anything about it. Developing awareness means objectively observing what is happening around and
receiving impressions from all the factors or influences surrounding the organization. This
information will then be used to determine what to expect the next time the organization is faced
with a similar situation.
Culturally skilled leaders have moved from being culturally unaware to being aware and sensitive to
their own cultural heritage and valuing and respecting differences. They can recognize the limits of
their competencies and expertise. They are comfortable with differences that exist between
themselves and others in terms of race, ethnicity, culture, and beliefs.
 Knowledge. It provides the documentation and factual information necessary to move beyond
awareness toward effective and appropriate change in multicultural settings. Through accumulated
facts and information based on appropriate assumptions, it is possible to understand other cultures
from their own viewpoint (Connerley & Pedersen, 2005).
If knowledge is overlooked in training, then the cultural awareness and skill, however appropriate
and effective – will lack grounding in essential facts and information about the multicultural context,
and the resulting changes may be inappropriate. If, however, training does not go beyond the
collection of facts and information about other cultures, those interacting with the leader will be
overwhelmed by abstractions that may be true but will be impossible to apply in practice.
Culturally skilled leaders possess knowledge about their social impact on others. They are
knowledgeable about communication style differences, how their style may clash or foster
interactions with individuals from underrepresented groups, and how to anticipate the impact it may
have on others.
 Skill. It provides the ability to build on awareness and apply knowledge toward effective change in
multicultural settings. Trained people will become skilled in planning, conducting, and evaluating the
multicultural contexts in their respective workplaces. They can assess the needs of other cultures,
work with interpreters and cultural informants, observe and understand behaviors of culturally
different people, and interact, advise, evaluate, and manage their tasks effectively in multicultural
settings.
Culturally skilled leaders seek educational, developmental, and training experience to improve their
understanding and effectiveness in working with culturally different individuals. Being able to
recognize the limits of their competencies, leaders (a) seek consultation from a diverse group, (b)
seek further training or education, or (c) engage in a combination of these.

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References:
Connerley, M., & Pedersen, P. (2005). Leadership in a diverse and multicultural environment: Developing awareness,
knowledge, and skills. Sage Publications, Inc.
Larentis, F., Antonello, C. S., and Slongo, L. A. (2019). Inter-organizational culture: Linking relationship marketing with
organizational behavior. Springer Nature Switzerland AG.
Mind Tools Content Team (n.d.). Mentoring. In Mindtools. Retrieved 29 September 2020 from
https://www.mindtools.com/pages/article/newCDV_72.htm#:~:text=Mentoring%20is%20a%20relationship%20bet
ween,person%2C%20or%20%22mentee.%22
Robbins, S.P., & Judge, T.A. (2018). Essentials of organizational behavior (14th ed.). Pearson Education Limited.

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