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Chapter 2

The Global and Cultural Contexts

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 Learning Objectives

• Define culture and its three levels and explain the role it plays in
leadership
• Apply the following models of national culture to leadership situations:
– Hall’s cultural context
– Hofstede’s dimensions
– Trompenaars’s model
– GLOBE
• Identify the impact of gender on leadership
• Address how leaders can develop a cultural mindset
• Present the steps organizations can take to become more multicultural

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 The Leadership Question

What is considered effective leadership depends

on the cultural context. Do you think there are
some leadership “gold-standards,” some
characteristics and behaviors that leaders in all
cultures must demonstrate? If so, what do think
they are?

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 Defining Elements of Culture

• Shared by group members

• Transferred from one member to
another
• Affect thinking and behavior
• Stable and dynamic

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 Levels of Culture
National culture

Group culture Group culture

Organizational Organizational
culture culture
Organizational
Group culture culture Group culture
Organizational
culture

Group culture

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 Hall’s Cultural Context

High context cultures Low context cultures

• Rely on environmental • Rely on explicit verbal and
cues and context written messages
• Subtle cues convey • Specific and clear words
message convey message
• Trust is more important • Formal and legal contracts
than legal and formal guide action
contract • Direct communication and
• Indirect communication specific instructions

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High and Low Context Cultures

Rituals

Tone
Body of voice
posture
Unstated Verbal
Vague messages
expectations agreements Stated
High The expectations
situation Low
context Status context
Written
Titles documents
Previous Specific
agreements
Nonverbals interactions

Trust

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Hofstede’s Cultural Dimensions

• Individualism—collectivism
• High vs. Low Power distance
• High vs. Low Uncertainty avoidance
• Masculinity vs. Femininity
• Short vs. Long term Time orientation

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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

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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

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 Individualism—Collectivism

Individualistic:
Vertical: emphasis on hierarchy (USA)
Horizontal: emphasis on equality (Sweden)

Collectivist:
Vertical: Japan
Horizontal: Israel

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Individualism—Collectivism

Vertical collectivist Horizontal collectivist

(VC) (HC)
• Rank and status • Members are equal
among members • No hierarchy
• Obedience to • Decisions based on
authority consensus
• Sacrifice of self

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Individualism—Collectivism

Vertical individualist Horizontal

(VI) individualist (HI)
• Each individual • Each individual
considered unique considered unique
• Each individual is • All members are
superior to others equal

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 Global Leadership & Organizational
Behavior Effectiveness (GLOBE) Dimensions

• Power distance: degree to which power is distributed

• Uncertainty avoidance: extent of reliance on norms
and rules

• Humane orientation: degree to which fairness and

kindness are valued

• Collectivism I (institutional): degree to which

collective action and distribution of resources is
valued

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 GLOBE Dimensions

• Collectivism II (in-group): degree to which individual

are close to their team or organization
• 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

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 GLOBE Country Clusters
Source: Based on information in House et al. 2004

H: In-group collectivism H: Performance

L: Future orientation, orientation and
Conf
dl e uc i a institutional and in-
gender egalitarianism,
Mid t As ia n group collectivism
uncertainty avoidance Eas o
occ So u t
Mor ait Kore
h
Kuw y Hon a H: Humane orientation
e g Ko

So Asia ines
H: Humane Turk t Si n g n
ap o r g
In-group collectivism

So rica

ut
Egyp r

Ph don and

he
Af uth
orientation e

Af
Taiw

ilip es
In il
Qata

Hungary Z (Bla ca

rn
an

Albania N ba k)
Poland Za mib we

Th alays

p
ri
Chin

im c

M India
a Hi: In-group

a b

a
Greece Nig mbia a
i
Ja p a

ia
n collectivism

Russia eria
L: Performance

Ira

i a Ecuador
H: Assertiveness, in-group

n
and future,
Kazakhstan

El Salvador

Guatemala
Venezuela
Costa Rica
Argentina

Columbia
Slovenia
collectivism, gender
Georgia

America
Eastern

institutional
Europe

Mexico
Bolivia
Brazil

Latin
egalitarianism collectivism,
L: performance orientation uncertainty
avoidance

La rop
Eu Italy n o
Angl
tin e USA

Eu rdic
Sp ael

Germ ad a

Sw nma e
ai

anic Can nd
Isr nce al

H: Future orientation,

Fin e d e r k
De rop
No
Fr rtug rla

H: Performance orientation,

lan n
Euro la institutional
a
Po itze

pe Ire and

d
assertiveness, future
Sw d ch)

collectivism, gender
Aust Engl h
Ge r m r i a
orientation, and uncertainty egalitarianism, and
S ou t
(F
n

avoidance
Swit any uncertainty avoidance
re

a
zer A f ric )
n

L: Humane orientation
(Ger land
L: Assertiveness, in-
ite
ma n (Wh group collectivism
T ) New
H: Performance orientation, Neth he and
assertiveness, future erlan Zeal lia
ds ra
orientation, uncertainty
avoidance
Aust H: Performance
L: Human orientation, in- orientation
group collectivism L: In-group
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18
2-
 GLOBE
Cultural Endorsed Leadership Theory - CLT
• Charismatic and value based
• Team oriented
• Participative
• Humane orientated
• Autonomous
• Self-protective

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 GLOBE Cultural Leadership
Profiles

• Confucian Asia
– Self-protective; team oriented; humane; charismatic
• Southern Asia
– Self-protective; charismatic; humane; team oriented;
autonomous
• Latin America
– Charismatic; team oriented; self-protective;
participative

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 GLOBE Cultural Leadership
Profiles

• Nordic Europe
– Charismatic; participative; team oriented;
autonomous
• Anglo
– Charismatic; participative; humane; team oriented
• Germanic Europe
– Autonomous; charismatic; participative; humane

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 GLOBE Cultural Leadership
Profiles

• Latin Europe
– Charismatic; team oriented; participative; self-protective
• Eastern Europe
– Autonomous; self-protective; charismatic; team
oriented
• Africa
– Humane; charismatic; team oriented; participative
• Middle East
– Self-protective; humane; autonomous; charismatic
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 Current State of Women in
Organizations

• In United States, women:

– Make up 50% or the workforce
– 58% work outside the home
– Hold 10% of executive positions
– Earn 77% of men’s income
– Hold 15.2% of corporate board positions
– Hold 4% (200 out of 500) of CEO positions in Fortune
500
– Hold only two of the highest paid executives positions
– Tend to be less satisfied and unhappier as they get
older (compared to men)
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 Suggested Causes for Gender
Inequality in Organizations

Likely causes Unlikely causes

• Challenges in • Gender difference in
balancing work and style or effectiveness
life
• Women are less
• Persistent gender
committed to work
stereotypes about role
of women • Women are less
• Discrimination educated or
experienced

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 The Leadership Question
Revisited

• There are some universal factors in

leadership
• Different individuals and groups may
need and expect different things from
their leader
• To be effective leaders must demonstrate
integrity, honesty, and trustworthiness
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 Definition of Cultural Mindset

A cultural mindset is a way of thinking

that allows the individual to be aware of
and open to culture and how it impacts his
or her own and others’ thinking and
behaviors.

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 The Cultural Mindset
• Self-awareness of your own culture
• Curiosity about, and awareness and knowledge of, others’ culture
Co • Including culture in thinking and problem solving
gnit • Adopting multiple cultural lenses
ion
Self-presentation
Verbal and nonverbal cues
Beh Interpersonal interactions
avi Address cultural issues
or
• Interpersonal skills
• Communication skills
Skil • Language competencies
ls

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 Factors in Becoming a
Multicultural Organizations
Policy

Accountability
Organizational Research and
culture
measurement
Recruiting

Education
&
training
Similar role
models

Culturally minded leader

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 What Do You Do?

You lead a team made up of people from several

different countries. They are all very well qualified and
experts in their fields. They have trouble working
together, however. They constantly argue over work
processes, and their arguments are getting increasingly
personal. They blame their different personalities, but
you think culture has something to do with the problems.

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 What Do You Do?

Your company is growing fast and you need to hire

many new employees and managers quickly. Several of
your managers suggest that instead of going through a
lengthy posting of jobs, you should simply encourage all
your managers to personally recruit people they know
and trust. Others say that your current management lacks
diversity and is not likely to bring in a diverse pool of
applicants.

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 Leadership Challenge

• Women play almost no role in public life in in

few countries.
• U.S. laws prohibit discrimination based on
gender (even in a foreign assignment)
• Objectively, the best choice is the female
executive

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 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
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 Leadership in Action:
The Tata Group

• India’s largest corporation

• Mix of Western capitalism and ancient
cultural values
• Focus on integrity, hospitality, humility,
kindness, and selflessness
• Strong emphasis on diversity
• Indian culture and ancient traditions inherent
in the leadership and management processes
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