INTERNATIONAL AND CULTURAL ASPECT OF LEADERSHIP

Amir Akbar

Key Dimensions Of Differences In Cultural Values

Individualism / Collectivism

IndividualismPeople give priority to their own interest, more concern with own career ( USA, CANADA, UK)

CollectivismTop priority to group and society, greater concern about organization (Japan, Hong Kong, Mexico and Greece etc.)

Key Dimensions Of Differences In Cultural Values

Power distance

High Power distanceBoss makes decision, group member readily

comply (France, Spain, Japan, Mexico)

Lower Power distanceAccept direction when convinced (Israel, Ireland, USA, Germany)

Key Dimensions Of Differences In Cultural Values

Uncertainty Avoidance

Lower uncertainty Avoidance People accept unknown and tolerate risk. Not afraid to face unknown(USA, Canada

Austria)

High Uncertainty avoidance. Society contain majority of people who

want predictable and certain futures (Japan, Italy, Israel, Argentine)

Key Dimensions Of Differences In Cultural Values

Masculinity / Femininity

Masculinity: Refers to an emphasis on assertiveness and

acquisition of money and material objects. De-emphasizes caring for others. Japan Italy.

Femininity: Refers to an emphasis on personal

relationships, concern for others and high quality life Sweden, Denmark.

Key Dimensions Of Differences In Cultural Values

Long Term / Short term Orientation

Long Term : Have long time perspective, do not demand

quick return on investments (Pacific Rim Countries)

Short Term : Demand immediate result (USA, Canada)

Key Dimensions Of Differences In Cultural Values

Formality / Informality

Formality. Country attaches considerable importance

to a tradition, ceremony, social rules etc (Latin America)

Informality : Refers to casual attitude toward traditions

etc (USA –Canadian people)

Key Dimensions Of Differences In Cultural ValuesUrgent Time / Casual Time

How much importance given to time

Urgent time : People perceive time as an

scare asset and tend to be impatient (USA imposes dead lines)

Casual time : People view time as an ultimate

and unending resources and tend to be patient (Asians, Middle East)

Dimensions of individual values

Urgent time orientation

High uncertainty avoidance

Informality

Long term orientation

Masculinity

High power distance

Individualism

Casual time orientation

Low uncertainty avoidance

Formality

Short term orientation

Femininity

Low power distance

Collectivism

Understanding Cultural Environment

Organizations are no longer limited to national borders.

Understanding Cultural Environment

BMW (German Company) making cars in South Carolina.

MCDonald sells burger all around the world

Toyota makes cars in Kentucky

Understanding Cultural Environment

General Motors makes cars in Brazil

Mercedeze Sports cars are made in Alabama

Understanding Cultural Environment

Siemens, Motorola, Nokia sells its products all around the world.

Understanding Cultural Environment

Siemens, Motorola, Nokia sells its products all around the world.

Understanding Cultural Environment

All countries have different values, morals, political and economic system and laws.

More appropiate way is to recognize the cultural dimensions of a country enviornment.

In US individualistic society, in Japan people care for all individual.

Understanding Cultural Environment

Managers should have understanding of the culture of the areas around the globe in which they may send employees

They should also develop mechanism that will help multicultural individuals to work together.

Changing World of Technology

25 years ago no one had a

Fax MachineMobile PhoneEmailInternet

Changing World of Technology

Silicon Chip has changed the whole future.

The first wave was agriculture. 19th Century (1890s) 90% of people were employed in agriculture-related jobs.

The second wave was industrialization. Societies moved from agriculture to industrial society,

Cultural Sensitivity

Leaders , while attempting to influence others

Must be alert to possible cultural differencesMust acquire knowledge about local customsMust be patient, adaptable, flexible , willing to learn &

listenLearn to speak native languagePortray why people of another culture act as they doKnowledge of cultural sensitivity helps in making

better relationship with other people

Cultural Sensitivity

To know and understand why people of another cultureact as they do leader should be watchful about :

Language : Essential to understand each other

Religion : Religion dominates life in many countries

Work Habits : In some culture people are unwilling tospend personal time on work

Women’s Roles : Women do not have similar independence or access to education and higher level

jobs

Personal Appearance and Behaviour : Grooming,eating habits, non-verbal communication

MANAGING FOR DIVERSITY

Corporate success, profit and growth depend increasingly on the management of a diverse workforce

Business has also become increasingly global

Modern leader therefore must be multicultural

Ethics : Fair treatment is considered morally right by deontological view

Deontological approach : Based on universal principles of honesty, fairness, justice and respect for person and property

Such leaders feel compelled to use merit for making HR decisions

For diverse workforce ethical and social responsibility

goals are required

Managing For Diversity

Social responsibility :

Social responsibility and ethics relate to goodness and morality of leader and organization

For organizations, it is the impact on society beyond doing what is ethical or legal

For diverse workforce ethical and social responsibility

goals are required

Managing For Diversity

Thanks