Leadership & Culture: A suitable case for interpretation.

culture
Values, norms, guiding beliefs, and understandings that are shared by members of an organization.

A Recollection: Levels of Culture

Specific to Individual

Personality Culture

Inherited and Learned

Specific to group or category

Learned

Universal

Human Nature

Inherited

Iceberg
Observable behaviour above the surface

Below the surface: Attitudes Values Beliefs

The Iceberg Model of Inter-Cultural Business Analysis

BEHAVIOURS
What You See The Water Line

Cultural Stereotypes Doing Business

SYSTEMS & OPERATIONS

How Business is Organised Management Philosophy/Style HR Strategies/Personnel Mgmt
Deep Water Level Shallow Water Level

CULTURAL BEDROCK
Beliefs and Values Political Influences Socio-Economic Frameworks

The Cultural Web

Stories

Symbols

Rituals/ routines

Paradigm

Power structures

Control systems

Structures

Manifestations of culture The cultural Web

Routine behaviours

The way that things are done signals what is important and valued: What behaviour do routines encourage?

Manifestations of culture The cultural Web

Routine behaviours

Rituals

Training programmes Assessment criteria Saluting Handshakes

Manifestations of culture The cultural Web

Stories

Routine behaviours

Rituals

Told to outsiders and joiners Trafalgar Relevant military history

Manifestations of culture The cultural Web

Stories

Routine behaviours
Military rich in symbols Logos Flags Titles Uniforms

Rituals Symbols

Symbols & the Military

Understood only by Insiders

HMS Victory Battle of Trafalgar 1805

Manifestations of culture The cultural Web

Stories

Control systems Staff movement, intellectual property & corruption Performance metrics Reward systems e.g.(Japanese and loyalty, Indonesian?)

Routine behaviours

Rituals Symbols

Manifestations of culture The cultural Web

Routine behaviours

Stories/ Heroes

Control systems

Power/ Organisation structures

Rituals Symbols

Centralisation, delegation & initiative Military hierarchy/chain of command Jointery??

The Cultural- Web

"how we do things around here"

Stories - The past events and people talked about inside and outside the company. Who and what the company chooses to immortalize says a great deal about what it values, and perceives as great behaviour.

Rituals and Routines - The daily behaviour and actions of people that signal acceptable behaviour. This determines what is expected to happen in given situations, and what is valued by management.

Symbols - The visual representations of the company including logos, how plush the offices are, and the formal or informal dress codes.

Control Systems - The ways that the organization is controlled. These include financial systems, quality systems, and rewards (including the way they are measured and distributed within the organization.)

Pattern/model of environment

Power Structures - The pockets of real power in the company. This may involve one or two key senior executives, a whole group of executives, or even a department. The key is that these people have the greatest amount of influence on decisions, operations, and strategic direction.

Organizational Structure - This includes both the structure defined by the organization chart, and the unwritten lines of power and influence that indicate whose contributions are most valued.

The Cultural Web Aspired To

SYMBOLS STORIES Successful Hay teams Working hard Fun place to work Big change managers Salary levels RITUALS & ROUTINES Consultants are with clients Excellent induction processes Bottom up communication With less memos Fewer meetings Info flows across depts/ networks Impromptu gatherings and parties Informal interaction styles Having an office but others use it Few consultants in the office Conferences at prestigious locations Open, untidy work areas

PARADIGM

Client focus Core business = HR consultancy High expertise in HR Team oriented

POWER POWER

Based on: Client management Expertise Interpersonal networks

CONTROLS Meeting billing/selling targets: otherwise high autonomy Team targets Team incentives Meeting quality objectives

ORGANISATION Clear matrix Flexible, responsive to clients Clear accountabilities Informal networks

ORGANISATIO N

Using Culture Webs to Identify Forces Blocking and Facilitating Change

The cultural web
STORIES Rivalry/competition within organisation Lone rangers Working hard Fun place to work Salary levels SYMBOLS Rushing about looking busy Having an office (but others use it) Conferences at prestigious locations Open untidy work areas Job evaluation terminology

RITUALS & ROUTINES

Consultants are with clients Minimal induction process Impromptu gatherings and parties Many meetings Little bottom-up communication Non-communication by memo

PARADIGM Core business-job evaluation Individualism and autonomy Generalist HR expertise Institutionalized incremental change

POWER Based on access to clients Plus position, expertise and interpersonal networks

Using culture webs to identify forces blocking and facilitating change. Hay Management Consultants used culture webs as a means of identifying required changes in culture

CONTROLS

ORGANISATION Complex matrix Flexible, responsive to clients Informal networks But unclear accountabilities

Meeting individual billing and selling targets Control job evaluation procedures Financial incentives

Beliefs, values and assumptions underpin culture

Routine behaviours

Stories/ Heroes

Control systems

Beliefs, values and assumptions Rituals Symbols

Power/ Organisation structures

Cultural change as most challenging

National culture Functional cultures Organisational culture Functional Functional cultures cultures Zones of uncomfortable debate

BUT!

Levels of Values

Universal Societal Individual

The Cultural Balance

Your cultural norms
You do not sign the contract as speedily as we would like.

Others cultural norms

but I understand that you prefer to build a
good relationship first. but I realise that your status and authority is very important in your society. but I appreciate that you value wisdom through age and experience in yours.

Your organisation is very hierarchical and produces much bureaucracy

Young people are promoted early on in their careers in my company

We express our emotions openly during business meetings

but I am aware that you keep your feelings private.

I like to do presentations with interactive participation but I know that your style is more about listening and giving tangible respect.

Schein

Key dimensions of culture

Trompenaars
Relationship with nature Relationships with people Universalism v particularism Individualism v collectivism Affectivity Diffuse v specific Achievement v ascription Relationship with time

Relationship with nature Human activity Human nature Relationships with people Time Truth and reality

Kluckhohn and Strodtbeck

Relationship with time Human activity, Human nature Relationships with people. Time

Adler
Human nature Relationship with nature Individualist/collectivist Human activity (being/doing) Space (private/public) Time (past/present/future

Hall
Space (personal/physical) Time (monochronic/polychronic) Language (high content/low content) Friendships

Hofstede
Uncertainty avoidance Power distance Invidualism/collectivism Masculinity/femininity

Geert Hofstede
Dimensions of Culture: Power Distance Individualism vs. collectivism Masculinity versus femininity Uncertainty avoidance Long versus short term orientation

Societal Context
Societal culture dimensions:

Tolerance of ambiguity (attitudes to risk tolerance) Power distance Individualism vs. collectivism Masculinity v Feminity Time consciousness (future orientation)

The Hofstede/Trompenaars Cultural Dimensions

Dimension
Power Distance

Refers to
autocracy/democracy; distribution of influence

Individualism/Collectivism

Focus on individual or group Principles of right/wrong; personal relationships Legal processes; personal trust Objective interactions; emotional expressions

Universalist/Particularist

Specific/Diffuse

Neutral/Emotional Attitude to risk, uncertainty, ambiguity Uncertainty Avoidance Perspective on investment returns/results

Status; performance
Short Term/Long Term Emphasis on past, present, future Achievement/Ascription Motivation from self or outside world

Attitudes to Time

Hofstedes Findings for Thailand, the UK and Switz.

Country

Power Distance

Uncertainty Avoidance

Individualism Masculinity

Thailand

64

64

20

34

UK

35

35

89

66

Switzerland

34

58

68

70

Globe Project - Fundamental Questions:

Are there leader behaviours, attributes, and organizational practices that are universally accepted and effective across cultures ? Are there leader behaviours, attributes, and organizational practices that are accepted and effective in only some cultures ? How do attributes of societal and organizational cultures influence the varieties of leader behaviours and org. practices that are accepted and effective ? Can the universal and culture-specific aspects of leader behaviours, attributes, and org. practices be explained in terms of an underlying theory that accounts for systematic differences across cultures ?

GLOBE: Dimensions of Societal Culture

1. 2.

3. 4.

5.

9 Dimensions: Assertiveness is the degree to which individuals in orgs. or societies are assertive, confrontational, and aggressive in social relationships Future Orientation is the degree to which individuals in orgs. or societies engage in future-oriented behaviours such as planning, investing in the future, and delaying individual or collective gratification Gender Egalitarianism is the extent to which an org. or a society minimizes gender role difference while promoting gender enquiry and equality of genders Humane Orientation is the degree to which individuals in orgs. or societies encourage and reward individuals for being fair, altruistic, friendly, generous, caring, kind to others, and exhibiting and promoting altruistic ideals Institutional Collectivism (Collectivism 1) reflects the degree to which organizational and societal institutional practices encourage and reward collective distribution of resources and collective action

GLOBE: Dimensions of Societal Culture

6. In-Group Collectivism (Collectivism 2) reflects the degree to which individuals express pride, loyalty, and cohesiveness in their organisations, families, circle of close friends, or other such groups Performance Orientation refers to the extent to which high level members of orgs. and societies encourage and reward group members for performance improvement Power Distance is the degree to which members of an org. or society encourage and reward unequal distribution of power with greater power at higher levels Uncertainty Avoidance is the extent to which members of an org. or society strive to avoid uncertainty by relying on established norms, rituals and bureaucratic practices to decrease the probability of unpredictable future events that could adversely affect the operation of an org. or society, and also to remedy the potential adverse effects of such unpredictable future events

7. 8. 9.

Categorization of global leadership competences in the empirical research

GLOBAL LEADERSHIP DIMENSIONS
with competencies Global Business Expertise

Global business savvy

Technological savvy Business literacy Customer orientation

Global Organizing Expertise

Traits and Values Cross- cultural Relationship skills Inquisitiveness/curiosity Cultural sensitivity Resourceful Appreciate diversity Optimistic Constructive dialogue Character/integrity Motivate/ reward others Energetic Develop others Emotional Intelligence Empowering others Resilience to stress Share leadership Tenacious Social literacy

Team building Builds partnerships Architecting /designing

External orientation Results orientation Maintain competitive advantage

Visioning

Cognitive Orientation
Global minded Open-minded Thinking agility Cognitive complexity Managing uncertainty

Articulates a tangible vision and strategy

Envisioning Articulates values Catalyst for cultural Change Catalyst for strategic change

Stable personal life

Cultural literacy Life balance Personal literacy

Behavioural flexibility

Project GLOBE leadership traits

Universally acceptable traits
Decisive Informed Honest Dynamic Administratively skilled Coordinator Just Team builder Effective bargainer Dependable Win-win problem solver Plans ahead Intelligent Excellence oriented

Universally unacceptable traits

Culturally contingent traits

Ruthless Egocentric Asocial Non-explicit Irritable Non-cooperative Loner Dictatorial

Enthusiastic Self sacrificial Risk-taking Sincere Ambitious Sensitive Self-effacing Compassionate Unique Wilful

Cultural dimensions related to change

More disposed to change

Less disposed to change

Low uncertainty avoidance Flexibility Mastery Future oriented Internal locus of control Human nature as mutable

High uncertainty avoidance Order Harmony Past oriented External locus of control Human nature as immutable

Factors that influence implementation 1. 2. 3. 4. 5. Human nature as trustworthy vs. untrustworthy Low or high power distance Importance of hierarchy Communication styles National history

INTERACTING SPHERES OF CULTURE

Country clusters. (Source: S. Ronen and O. Shenkar (1985) Clustering countries on attitudinal dimensions: A review and synthesis, Academy of Management Review, 10(3), pp. 435-54.)

Societal Clusters by Country

Anglo cluster
England Australia South Africa (white sample) Canada New Zealand Ireland USA

Latin America cluster

Costa Rica Venezuela Ecuador Mexico El Salvador Colombia Guatemala Bolivia Brazil Argentina

Latin Europe cluster

Israel Italy Portugal Spain France Switzerland (French/Italian)

Sub Saharan African cluster

Namibia Zambia Zimbabwe South Africa (black sample) Nigeria

Arab cultures cluster

Qatar Morocco Turkey Egypt Kuwait

Nordic Europe cluster

Finland Sweden Denmark

Germanic Europe Cluster

Austria Switzerland (Germanic) Netherlands Germany (former East) Germany (former West)

Southern Asia cluster

India Indonesia Philippines Malaysia Thailand Iran

Eastern Europe cluster

Hungary Russia Kazakhstan Albania Poland Greece Slovenia Georgia

Confucian Asia cluster

Taiwan Singapore Hong Kong South Korea China Japan

ASIAN VALUES
East Asians believe in strong families They believe that the family is the building block of society East Asians revere education This is a value held by all strata of society East Asian consider hard work a virtue The chief reason this region is outcompeting Europe East Asians believe in the virtues of saving and frugality They believe that individuals, families and governments should lead frugal lives

East Asians do not believe in extreme forms of individualism Every individual is a member of a nuclear and extended family, clan, neighbourhood, community, nation and state

Taken together, these 10 values form a framework that has enabled societies in East Asia to achieve economic prosperity, progress, harmonious relations between citizens, and law and order

There is an Asian version of a social contract between the people and the state Governments have an obligation to treat their people with fairness and humanity Citizens are expected to be law-abiding, respect those in authority, work hard, save and motivate their children to learn and be self-reliant

East Asians want their governments to maintain a morally wholesome environment in which to bring up their children

In some Asian countries, governments have sought to make every citizen a stakeholder in the country

Good governments in Asia want a free press They do not believe that such a freedom is an absolute right the press must act responsibly

East Asians practise national teamwork Government, business and employees work cooperatively for the good of the nation

Source: Based on material in Koh, 1993

Organisational Culture.
Ed Schein:
A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way you perceive, think, and feel in relation to those problems.

Scheins three levels of Org. culture

Surface manifestations of organisational culture

eg artefacts, ceremonials

Values

Basic assumptions
-eg relationship to environment, nature of reality, truth, human activity and relationships

Culture and Sub Cultures

Navy

Civil Service

ARMY

DEFENCE

AF

Types of organisational culture

Charles Handy, building on the work of Harrison, identified four types of organisation in terms of their culture Change involving a move from one type to another is particularly challenging

The role culture

This organisation relies on committees, structures, logic and analysis. There is a small group of senior managers who
make the final decisions, but they rely on procedures, systems and clearly defined rules of communication. It might even be regarded as bureaucratic but has a thoroughness and solidity that make it a reliable and fair employer. Expert opinions are treated with caution as they represent outsiders to the organisation. As long as the outside environment is stable, the organisation can handle difficult situations. However, senior managers often do not see the changes that are coming and, even if they do, they do not know how to manage them. Change in such a culture comes through a new set of managers being appointed. Strategic planning in a formal way would characterize such a culture.
Examples ?

The task culture

The organisation is geared to tackle identified projects or tasks. Work is undertaken in teams that are flexible and
tackle identified issues. The teams may be multidisciplinary and adaptable to each situation. Power rests with the team, which may contain some experts to facilitate group decisions. Expert opinions are valued. The culture is flexible and sensitive to change, but it works best on small-team issues. It is less capable of large-scale work such as that required in a major factory. Control relies largely on the efficiency of the team with top management having to allow the group considerable day-today autonomy. Strategic planning is both flexible and task-oriented but will focus largely on the task in hand.

Examples ?

The personal culture

The individual works and exists purely for her- or himself. The
organisation is tolerated as the way to structure and order the environment for certain useful purposes, but the prime area of interest is the individual. Such organisations exist infrequently in business, but may exist in non-profit institutions. Such individuals are not easy to manage and feel little loyalty to the organisation. Changes are coped with easily or with difficulty depending on the inclination of the individual. Strategic planning is largely meaningless except in a very personal sense.

Examples ?

The power culture

The organisation revolves around and is dominated by one individual or a small group. Typically, it can result
from an entrepreneur setting up a new company. It may be buccaneering and risk taking. All decisions refer back to the centre and so do beliefs and work styles. Experts are either overvalued or treated with suspicion and disdain. As the organisation grows in size, it becomes increasingly difficult for the centre to keep control. Either the organisation changes or it spawns a new subgroup with its own leader who, in turn, reports back to the original centre. The strategic plan, if it exists at all, reflects the individual at the top, her/his whims, interests and passions.

Examples ?

Exercise
1. Do you recognise these organisational types within Indonesias defence sector? Give examples. Do all sectors of the Indonesias governmental defence sector belong to the same organisational type? Do you think the culture(s) within Indonesias defence sector need to change? If so, to what and how?

2.

3.

4.

How would you set about introducing new sorts of

desired behaviour?

Leadership Approaches
The Traits Approach: (universality of leadership traits ?) Importance of leaders characteristics Idea that leaders are born with inherited characteristics Drucker leadership cannot be created, taught or learnedmoved on More attention now on uncovering personality traits common to people found in leadership positions. e.g. drive, self-confidence, cognitive ability, honesty & integrity supplemented by knowledge of the context and desire to lead Big 5 = extroversion, emotional stability, agreeableness, conscientiousness and openness to experience valid across cultures (?) * Leadership is essentially an attribution and that legitimacy may be conferred on leaders in part as a result of followers culturally influenced perception of the leaders traits The Process - Behavioural Approach: Doubts about the usefulness of trait theories of leadership Extend analysis to a search for models which identified appropriate leader behaviours Link between leadership as a function of behaviour and preoccupation with leadership style 2 underlying dimensions: CONSIDERATION centres on attempts to grow and sustain positive relationships with subordinates, underpinned by respect and a concern for employees welfare and feelings. INITIATING STRUCTURE leaders would orient their behaviour towards the tasks of work withion the overall concern to achieve organisational goals. Leadership Grid (Mouton & Blake): 5 generic leadership styles
Premise : ..leadership is culturally bound

Impoverished management Authority leadership style Team management

Country club management Middle-of-the-road style

Leadership Approaches cont

Implicit Leadership Theories: Different leadership styles linked to particular countries e.g. Leading from the front - Ireland, Spain, UK - Consensus styles Finland, Sweden countries - Common-goal leadership Germanic countries - Managing from a distance France ASIAN VIEW OF LEADERSHIP (?): - Social distance Leaders seek to maintain a psychological distance from followers thereby establishing a paternal relationship. - Concern with harmony Essential to maintain harmony core issue - Humane leadership Leader should have concern for followers, show heart and loss of face amongst subordinates - Personal authority Leaders will stress personal relationships in preference to formal rules
The Contingency Approach: Leadership styles and effectiveness will depend on certain situational influences.external conditions faced by the leader 4 generic types: Directive leadership Supportive leadership Participative leadership Achievement-oriented leadership Project Globe

System Skills Make ethical Decisions Influence stakeholders Lead Change Span boundaries Architecting Build community

Interpersonal skills Mindful Create and Multicultural communication build trust teaming Attitudes and orientations Global mindset Cognitive complexity Cosmopolitanism Integrity Humility Threshold traits Inquisitiveness Global knowledge Resilience

The phases of cultural adjustment

Managing the Expatriate Assignment

The culture-shocked expatriate. (Source: J. Craig (1979) Culture Shock, Times Books International, Singapore.)

STRATEGIES FOR MANAGING MULTICULTURAL TEAMS

TASK STRATEGIES
Creating a sense of purpose What is the teams mission? How explicit should this be? What are the teams goals and objectives? To what extent can they be measured? Who should be a member? What are the teams priorities? (Schedule? Budget? Quality?)

CULTURAL DETERMINANTS
Task versus relationship Being versus doing Hierarchy Individual versus collective High versus low context Monochronic versus polychronic

Structuring the task

To what extent should agenda be structured? To what extent should the rules of the game be clearly spelled out? What needs to be accomplished? By whom? How should time be managed? How important are deadlines? What happens if deadlines are not met? Who does what? Who is responsible for what? Should a leader be assigned? Based on what criteria? Competence? Interpersonal skills? Hierarchical position? What is the role of leader? To take decisions? Facilitate discussions? Obtain resources? Who needs to attend meetings and when? How should decisions be made? By vote? By consensus? By compromise? Who is expected to make the decision? The leader versus team? Uncertainty avoidance Monochronic versus polycronic High versus low context

Assigning roles and responsibilities

Individual versus collective Power and status Uncertainty and control Task versus relationship

Reaching decisions
Individual versus collective High versus low context Hierarchy

PROCESS STRATEGIES
Team Building How is trust developed? How much time for social activities? Choosing how to communicate What is the working language? Who decides? How to address imbalance in levels of fluency? What type of communication technology can be used? What is an effective presentation?

CULTURAL DETERMINANTS
Task versus relationship Monochronic versus polychronic High versus low context

Power Individual versus collective High versus low context Monochronic versus polycronic

Eliciting participation How can we ensure participation of all members? To what extent are some members given more credibility than others? Does it appear that the input of some members is being ignored? Who listens to whom? Who interrupts who? Resolving conflict How is conflict managed? Avoided? Confronted? Who accommodates whom? Is collaboration sought? To what extent do we compromise? Is negotiation seen as win/lose, lose/win or win/win? Evaluating performance How and when to evaluate performance? Is evaluation a two-way process? How direct can feedback be?

Power Individual versus collective

Task versus relationship Power Individual versus collective

High versus low context Power Individual versus collective

HRM MENU: CULTURAL DETERMINANTS

HRM ISSUES CULTURAL DETERMINANTS

Selection

Who to hire? How to hire?

Desired behaviours focus on skills/personality? Specialists versus generalists? Necessary qualifications? Level, discipline, or preferred institutions? How important is what you know versus who you know?

Doing versus being Uncertainty avoidance Power/hierarchy Individual versus collective Task versus relationship Task versus relationship Individual versus collective Private versus professional life High versus low context

Socialisation
What kind of initiation rites are acceptable? Team building? What are the messages being sent? Competitions versus cooperation? Individual versus team effort? To what extent will people engage in/reject social events? To what extent should effort be made to ensure corporate culture is shared? To what extent should the corporate culture be made explicit (pins, posters, slogans, etc)?

HRM ISSUES

CULTURAL DETERMINANTS

Training

For what purpose?

Develop generalist versus specialist perspective? Acquire company versus skill specific (technical) knowledge? Extent of job rotation? Role of mentorship? Competences versus networking? Uncertainty avoidance Individual versus collective hierarchy Task versus relationship

How are training needs determined?

By company? By individual? Who is sent for training? High-flyers versus rank and file?

What training methods are most effective?

Case approach? Reading and lecture? Experiential exercise? Professor versus student driven? Groupwork?

HRM ISSUES

CULTURAL DETERMINANTS

Performance appraisal To what extent is individual versus team effort evaluated? To what extent is goal setting (MBO) useful? To what extent do people expect feedback? And from whom? To what extent will criticism be accepted?

Individual versus collective Hierarchy Being versus doing Time monochronic versus polychronic High versus low context

Compensation and rewards Who gets what? To what extent should pay be linked to performance? What degree of pay differential is acceptable? To what extent are bonuses effective? To what extent should team versus individuals be rewarded? How much of salary should be fixed versus variable? To what extent are financial versus non-financial rewards preferred?

Equity versus equality Doing versus being Hierarchy Control over nature Individual versus collective Uncertainty avoidance Masculinity versus femininity

HRM ISSUES

CULTURAL DETERMINANTS

Career development Who gets promoted? What determines career success? What type of career paths are desirable? Internal versus external hiring? Within functions/across functions? Within company/industry? Across companies/industries? Between government and business? To what extent are people mobile? Willing to move? At what stage are high potentials identified? At entry? After 5 years?

Being versus doing Individual versus collective Task versus relationship Uncertainty avoidance

CULTURE MODELS OF STRATEGY

(Exercise)

Exercise
Visit the Project Globe website (www.thunderbird.edu/wwwfiles/ms/globe/) After you have looked carefully through some of the articles and reports, identify ONE country from each of the following societal clusters: 1. Anglo cluster 2. Latin Europe cluster 3. Sub-Saharan Africa cluster 4. Arab culture cluster
(a) Identify how each country cluster might individually and differently describe typical leader attributes and behaviour.

(b) Take two country clusters and indicate the extent to which any two businesses operating in different sectors within different country clusters could exhibit differences in leader behaviour.