Chapter 1

Global Leaders and

Culture

Introduction
One could make some basic assumptions

about people one would encounter throughout

their workday

Most companies were regionally focused then,

from suppliers to customers to employees

That meant limited exposure to other ideas

and approaches to problem solving

This meant that one knows all the rules of

engagement

Introduction (contd)
Businesses of all sizes are grapping with

how to maximize the opportunities and

minimize the challenges of cultural
differences
Diversity can be a potent and differentiating
competitive edge.
How? Benefits? Challenges?

Culture underpins all human activities and

explains much of our behavior

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

Introduction (contd)
Imagine the problems one can tackle

when they assemble a team with:

a Western approach to problem solving (one

that is time bound, linear, and focuses on the

end result) and

join it with an Eastern approach to problem

solving (one that seeks harmony, honors

process, and values team relationships more
than concrete solutions)

Introduction (contd)
This chapter provides a rationale for all

professionals working globally to:

understand and respect their counterparts

develop the cross cultural sensitivity competency

required to work effectively in todays complex

world.

Culture counts. How?

Understanding the environment is a fundamental
requirement for maintaining a competitive
advantage.
Successfully adapting to changes in the
environment is a requirement for survival.

Culture Defined
At the root of the issue, we are likely to find the

following as the reasons behind failure:

communication
cultural misunderstandings

Culture means the values, customs, traditions, and

ways of living which distinguish one group of people

from another.
Culture is patterns of thinking, feeling, and acting
underpinning the collective programming of the mind
which distinguishes the members of one group or
category of people from another.
Culture has always been distinct from one another.
Culture is like an iceberg, part of it is seem but most
is not.

Culture Defined (contd)

Culture is a distinctly human means of

adapting to circumstances and transmitting

this coping skill and knowledge to
subsequent generations.
Culture gives people a sense of:
who they are,
belonging,
how they should behave ,
what they should be doing.

Culture Defined (contd)

Culture impacts behavior, morale, and

productivity at work.
Culture includes values and patterns that

influence company attitudes and actions.

Culture is considered the driving force behind

human behavior.
How?

Is culture dynamic or static?

10 categories to understand
culture
Sense of self and space
Communication and language
Dress and appearance
Food and feeding habits
Time and time consciousness
Relationships
Values and norms
Beliefs and attitudes
Mental process and learning
Work habits and practices

Explicit versus Implicit

Culture

Some aspects of culture are overt, while

others are covert

Examples of implicit culture
Discrimination
Racism

Examples of explicit culture

Customs
Traditions
Folklore
Dress code

Hofstedes research
4 dimensions of national culture
Power distance
Power in institutions is distributed unequally
Uncertainty avoidance
Feels threatened by uncertain/ambiguous situations

Individualism
Taking care of oneself and family

Masculinity
Dominant values of assertiveness, material things

Global Leader Specifications

Global leaders should:
be sensitive to cultural differences
appreciate peoples distinctiveness and

effectively communicates with individuals

from different cultures
not impose his/her own cultural attitudes and
approaches
not be ethnocentric belief in the inherent
superiority of ones own group and culture

Cultural understanding
As a result of cultural understanding, one

becomes
Broad minded
Tolerant of cultural uniqueness
Gain new insights for improving human

relations
Aware of the impact of our native culture
Minimize the impact of culture shock
Maximize intercultural experiences

Global organizations
4 types of corporations
Ethnocentric corporations
If it works at home, so it must work overseas
Polycentric corporations
Local people know what is best for them

Regiocentric corporations
Regional insiders know what neighboring countries want
Geocentric corporations
All for one and one for all. We will work together to

solve problems anywhere in the world