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 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 individuals working globally to understand and respect their counterparts and to develop the skills 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 communication failures and cultural misunderstandings the reasons behind failure. 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. Is culture dynamic or static?

Does culture change?

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 Customs Traditions folklore

Examples of explicit culture

Hofstedes research

4 dimensions of national culture

Power distance

Power in institutions is distributed unequally Feels threatened by uncertain/ambiguous situations Taking care of oneself and family Dominant values of assertiveness, material things

Uncertainty avoidance

Individualism

Masculinity

Global Leader

Global leaders

should be sensitive to cultural differences appreciate peoples distinctiveness and effectively communicates with individuals from different cultures do not impose his/her own cultural attitudes and approaches are not ethnocentric belief in the inherent superiority of ones own group and culture

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

10 Key concepts

Global leadership Cross cultural communication Cultural sensitivity Acculturation Cultural influences on management Effective intercultural performance Changing international business Cultural synergy Work culture Global culture

Global organizations

4 types of corporations

Ethnocentric corporations

If it works at home, so it must work overseas Local people know what is best for them Regional insiders know what neighboring countries want All for one and one for all. We will work together to solve problems anywhere in the world

Polycentric corporations

Regiocentric corporations

Geocentric corporations