PUBLIC / CYHOEDDUS

Organizational Behavior,
Leadership and
International HRM

Diversity & Leadership in

a Global Context

Dr. Zulfia Abawe

Zulfia.abawe@southwales.ac.uk
LinkedIn: Zulfia Abawe
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Learning Outcomes

• Discussing diversity and its importance in Global Businesses in the 21 st Century

• Defining and discussing globalization
• Defining MNCs
• Redefining Leadership – Global and Diverse
• Discussing and explaining Models of Cultural Dimensions
• Hofstede’s model
• Trompenaar’s model
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• HSBC Funny Culture ads ( Subway, Bart, Golf ) - YouTube

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What is diversity and why is it important in the 21st century?

Changing Demographics Changing Contexts

Multicultural perspectives Industrial to global perspective – Globalization

Ethnic distribution Multinational Corporations
The challenge of understanding and defining identity
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What is Globalization?

• “The integration of spatially separate locations into a single international market.” (Blyton
and Turnbull 1998: 38)
• “The process in which organizations extend their activities beyond purely national
boundaries to participate and compete around the world.” (Smith , Farmer, & Yellowley,
2012: 9)
• “…the free movement of goods, services, labour and capital, thereby creating a single
market in inputs and outputs; and full national treatment for foreign investors (and
nationals working abroad) so that, economically speaking, there are no foreigners.”
(The Organization for Economic Corporation and Development)
• https://www.youtube.com/watch?v=T9lgZper-W4
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Multinational Corporations

• “We are in a post-industrial era where multinational corporations are the

new “conquerors” throughout the world in the global market” (Chin &
Trimble, 2015: 15).
• “MNCs are enterprises which in more than one country own or control
production or service facilities and activities that add value.” (Leat, 1999).
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Redefining Leadership: Global and Diverse

“Leadership for the 21st century means an ability to lead in an increasingly

global and diverse society; amidst rapid scientific and social change, in a
sustainable environment given climate change, population growth and
migration and natural resources; and within a digital age of rapid information
dissemination.” (Chin & Trimble, 2015: 17).
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Redefining Leadership: Global and Diverse

• Contemporary definition of leadership

• Influence
• Non-coercive
• Can go any direction, not necessarily top-down
• Relationship
• Both leaders and followers are doing relationship
• Unequal relationship but all players practice influence
• Diversity
• Cross-cultural engagement
• Managing multicultural teams
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What is culture?

There is no single definition but general consensus that culture refers to a

pattern of values and beliefs which inform attitudes and behaviours and
which distinguish one group from another and binds them together.
These values and behaviours are passed on to new members of the group
as the right way to see, think, feel and act in given circumstances, referred
to by Torrington (1994) as ‘learned frameworks’
Culture is not static but evolves over time
We draw on many sources for our cultural identity, including gender;
occupation; social class; workplace; religion; ethnicity
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Models of
Hofstede’s model
National
Cultural
Dimensions
Trompenaar’s model
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Geert Hofstede
• Dutch organizational Anthropologist –
the most cited author
• Provided a universally applicable
framework for classifying cultural
patterns
• Derived his culture dimensions from
examining work-related values in IBM
employees in 40 countries during the
1970s
• https://www.youtube.com/watch?v=
mvznxUkDLkQ
• Explore Hofstede’s website ‘Insight’ by
clicking on
https://www.hofstede-insights.com/ -
pay particular attention to the section
on our models/ national culture/ 6-D
model
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• Power Distance
Hofstede’s • Uncertainty Avoidance

Dimensions of • Individualism/Collectivism
• Masculinity/ Femininity
National Culture • Long-term/short-term Orientation
• Indulgence/Restraint
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Power Distance Indulgence/Restraint

The extent to which the less powerful members of
institutions/organizations/society within a country expect and accept
that power is distributed unequally
High Power Distance = More Hierarchical, Accepts inequality in
wealth and power
Low Power Distance = Flat structure, equal distribution of power and
authority, value for equality, participation, more consultative approach
to decision making
Whether a country is more Indulgent or Restrained, can be determined by the
degree to which you are free to have fun and enjoy life through gratifying your
natural drives (like food, dancing, socialising...)
High restraint = tend to place a stronger emphasis on controlling impulses and
regulating behaviour according to social norms and rules (i.e., some Islamic
States).
High indulgence = greater acceptance of enjoying life, having fun, and pursuing
personal desires and pleasures (i.e, Mexico, USA).

Masculinity-Femininity
The degree to which society subscribes to the typical stereotypes
associated with males and females

Masculine = assertive, competitve, tough, results/performance

oriented
Feminine = modest, co-operative, nurturing, tender, equity oriented
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Uncertainty Avoidance Individualism Vs. Collectivism

The extent to which the members of the culture feels threatened by
The degree of horizontal dependence of individuals upon the group
uncertain or unknown future situations
Individualism = ties between individuals are loose; everyone is
High Uncertainty Avoidance = High need for written and unwritten expected to look after themselves
rules Collectivism = people are integrated into strong, cohesive groups in
exchange for unquestioning loyalty
Cultures that have a low UA score (e.g. Denmark, Sweden) tend to
accept each day as it comes and are willing to take risks.

Long-Term Orientation
based on Confucian Dynamism, applied to 23 countries
LTO score = long-term planning, perseverance, and the pursuit of long-term goals;
tend to prioritize long-term stability, sustainability, and delayed gratification.
STO score = focus more on immediate results, instant gratification, and tradition;
prioritize maintaining status quo rather than long-term planning and investment.
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Criticisms

• Surveys are inappropriate instruments to measure culture.

• A survey alone is not enough to measure culture as many subcultures and anti-cultures
are not represented (an individual is not the same as a country).
• Nations premised as a unit of analysis are not the best unit suited for studying culture.
• One company cannot provide information about entire national cultures. The
respondents were certain categories of employees in the subsidiaries of a single
company: IBM
• The IBM data is old and obsolete.
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“I provided a skeleton for the countries to be studied, and

you provide the flesh. The skeleton I proposed is a worldwide
structure in cultural differences amongst countries.”

Hofstede’s
reply (Hofstede, 1999:39)
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Fons Trompenaars
• A Dutch organizational theorist, in 1981
Trompenaars started his career at the Royal
Dutch Shell Personnel Division.
• Ranked as one of the top 5 management
consultants next to Michael Porter.
• In 2011, he was voted as one of the top 20
HR Most Influential International Thinkers
by HR Magazine.
• Fons Trompenaars on Leadership – YouTube
• Hofstede’s approach appears to be about
the analysis of the variables of national
culture, whereas Trompenaars is
more involved in the process of cultural
creation.
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Trompenaars
Model of
Cultural
Analysis
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Criticisms
•Hofstede (1996) claimed that the theory of Trompenaars is not supported by his database.
•The model fails to recognize the influence of personal characteristics on behavior.
•Just because you are in a group it doesn't mean you are alike!
•The model distinguishes the differences between cultures but does not provide
recommendations on how to work with specific cultures.
•Other authors including Ohmae (Borderless World) and Levitt (Globalisation of Markets)
argue that national borders are diminishing and that the world should be seen as a whole
and not made up of different countries with different cultures.

.
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GLOBE (Global leadership and

Organizational Behaviour Effectiveness)

In the early 1990s, late Prof. Aimed at creating, testing,

Robert J. House conceived
the idea of a large-scale
international study of
cultural, leadership and
organizational practices.
and validating theories
related to the relationship
between culture and
societal, organizational, and
leadership effectiveness.
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GLOBE

Results - USA GLOBE Project

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Choose an MNC of your choice and

discuss how the national culture is
impacting the internal culture of its
subsidiaries. Ensure your analysis is
Workshop conducted in light of Hofstede
and/or Trompenaar’s frameworks of
culture.
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References
Blyton, P., & Turnbull, P. (1998). The Dynamics of Employee Relations. London: Palgrave Macmillan Limited.

Chin, J., & Trimble, J. (2015). Diversity and Leadership. London: SAGE Publications Inc.

Hofstede, G. (1999). Problems remain, but theories will change: The universal and the specific in 21st-century
global management. Organizational Dynamics, 34-44.

Leat, M. (1999). Multinationals and Employee Relations. In G. Hollinshead, P. Nicholls, & S. Tailby, Employee
Relations. London: Financial Times Pitman Publishing.

Smith, P., Farmer, M., & Yellowley, W. (2012). Organizational Behaviour. London: Hodder Education.

Torrington, D. (1994). International Human Resource Management: Think Globally, Act Locally. London:
Prentice-Hall.