Cross-Cultural Leadership

Lauren Gruchala Kaci Grant

Overview• Culture Defined• Related Concepts• Hofstede & others• GLOBE• Universally Desirable and Undesirable

Leadership Attributes• Challenges to Cross-Cultural Leadership• Questions• Sources

• The Dutch place emphasis on egalitarianism and are skeptical about the value of leadership. Terms like leader and manager carry a stigma. If a father is employed as a manager, Dutch children will not admit it to their schoolmates.

• Arabs worship their leaders- as long as they are in power!

• Iranians seek power and strength in the leaders.

• The Malaysian leader is expected to behave in a manner that is humble, modest, and dignified.

Why is this important?• Globalization• Increased interconnection between

people• Need for leaders to become

competent in cross-cultural awareness and practice

• Diversity in our country

Cross-Cultural Research Endeavor

• Leadership research is tricky:– No consistency agreed upon definition of

leadership– No clear understanding of the

boundaries of the construct space

Culture Defined• The learned beliefs, values, rules,

norms, symbols, and traditions that are common to a group of people (Northouse)

• A set of patterns for social collectivities that differentiates among them in meaningful ways (House, Wright & Aditya)

Essential Parameters of Culture

• Culture represents some form and degree of collective agreement

• Culture refers to sharing of important interpretations of entities, activities, and events

• Cultural norms and cultural forces are manifested linguistically, behaviorally, and symbolically in the form of artifacts

• Common member experiences are inherent in the notion of culture

• Cultural variables take on the force of social influence largely because members of collectivities identify with an agreed-upon specific set of values and common social identities

Essential Parameters of Culture

• Common experiences and agreed-upon norms have powerful socialization effects on the members of cultures

• Cultural interpretations, symbols, artifacts, and effects are transmitted across generations

• The social influence of cultural forces is assumed to provide a set of compelling behavioral, affective, and attitudinal orientations for members of cultures

• Members of specific cultures are presumed to abide by a set of norms that reflect the above-mentioned commonalities

Related Concepts• Ethnocentrism: the tendency for individuals

to place their own group at the center of their observations of others and the world– Obstacle because it prevents people from fully

understanding or respecting the world of others• Prejudice: a largely fixed attitude, belief, or

emotion held by an individual about another individual or group that is based on faulty data

• Both can have an impact on how leaders influence others.

Related Concepts• Multicultural: an approach or system that

takes more than one culture into account; a set of subcultures defined by race, gender, ethnicity, sexual orientation, and age

• Diversity: the existence of different cultures or ethnicities within a group or organization

• Monolithic cultures: provide approximately common experiences for members of collectivities (no variation)

• Pluralist cultures: contains two or more subgroups that share some common experiences but not others

Cross-Cultural Studies• Haire, Ghiselli and Porter (1966)– Studied responses from 3,641 managers

from 14 countries–Managers favored democratic styles of

management; consistently felt that subordinates lacked necessary abilities to be led democratically; most endorsed egalitarian organizational structures, however saw themselves as part of elite group; better to direct than persuade

Cross-Cultural Studies• Bass, Burger, Doktor & Barrett (1979)

– Based on multiple measures of observed behavior and questionnaire responses of 8,566 middle managers from 12 different countries

– Data collected between 1966 and 1973– Strong main effects of national citizenship and

modest main effects of rate of advancement on many of the dependent variables (i.e., managers’ responses to questionnaires, self-reports of behavior in exercises, observations of each other’s behavior)

• Table 20.1 (Earley & Erez)

Hofstede (1980,2001)• Most referenced research concerning

dimensions of culture• Based on questionnaires from 100,000 people

in more than 50 countries (IBM HQ Staff)• Cultural differences primarily

encountered as differences in shared values

• Values defined as “ broad tendencies to prefer certain states of affairs over others”

Hofstede’s 3 Core Questions

• Three core questions that have to be addressed in all cross-cultural research:1. What are we comparing?2. Are nations suitable units for

comparison?3. Are the phenomena we look at

functionally equivalent?

Hofstede Dimensions• Power Distance

– The degree to which less powerful members of a society accept a hierarchical or unequal distribution of power in organizations/society

• Uncertainty Avoidance– The degree to which members of a given society feel

uncomfortable in ambiguous situations and have created beliefs, norms, and institutions that are intended to minimize the occurrence of or cope with such situations

• Long-term-Short-term Orientation– Long-term- thrift and perseverance– Short-term- respect for tradition, fulfilling social

obligations, protecting one’s “face”

Hofstede Dimensions• Individualism-Collectivism

– Individualist- the degree to which individuals function independently of each other and are expected to look after themselves and their immediate families

– Collectivist- the degree to which individuals are integrated into groups that are expected to look after these individuals in exchange for loyalty to the group

• Masculinity-Femininity– High scores- the degree to which members of cultural

entities look favorably on assertive, aggressive, competitive, and materialist behavior and striving for success

– Low scores- the degree to which members value supportive behavior, nurturance, care, and service and endorse gender role differentiation and discrimination

US Hofstede Profile

Power Distance: 40 Individualism: 91

Masculinity: 62

Uncertainty Avoidance Index: 46

Long-term Orientation: 29

Hofstede Conclusions• Gives us insights into other cultures so

that we can be more effective when interacting with people in other countries

• 3 noted studies have failed to demonstrate consistency with Hofstede’s dimensions– Gerstner and Day (1994); Ng et al. (1982);

Chinese Culture Connection (1987)

GLOBE• Global Leadership & Organizational

Behavior Effectiveness – Robert House (1991)– Purpose: Increase understanding of cross-

cultural interactions and the impact of culture on leadership effectiveness

– Quantitative methodology • Responses of 17,000 managers; 950

organizations; 62 cultures– 9 cultural dimensions – 7 derived from

Hofstede

GLOBE• For each of the nine dimensions, items

were developed at both the societal and organizational level

• 2 measures were used for all 9 dimensions:– Items phrased in terms of the society or

organization as they are– Items phrased to evaluate what practices

should be enacted in the society or organization

Dimensions of GLOBE1. Uncertainty Avoidance: Extent to which a society,

organization, or group relies on established norms, rituals, and procedures to avoid uncertainty– Uncertainty accepting societies have been found to be more

innovative– Mangers from high UA countries tend to be more controlling,

less delegating, and less approachable– High UA value career stability, formal rules, & the

development of expertise– Low UA value career mobility and general skills rather than

specialized skills – Low UA managers expect resourcefulness & improvisation– High UA managers expect reliability & punctuality

Dimensions of GLOBE2. Power Distance: Degree to which

members of group expect & agree that power should be shared unequally – Participative leadership significantly

predicted by the degree of PD• Germanic, Anglo, & Nordic Europeans

attuned to PL• Middle Eastern, East European, Confucian

Asian, & Southern Asian clusters do not endorse

Dimensions of GLOBE3. Institutional Collectivism: Degree to

which organization or society encourages institutional or societal collective action

4. In-Group Collectivism: Degree to which people express pride, loyalty, & cohesiveness in their organizations or families

Dimensions of GLOBE5. Gender Egalitarianism: Degree to which an

organization or society minimizes gender role differences and promotes gender equality– High GE countries endorse charismatic leader

attributes & participative leader attributes:• Foresight, enthusiasm, & self-sacrifice • Delegation

6. Assertiveness: Degree to which people in a culture are determined, assertive, confrontational, and aggressive in their social relationships

Dimensions of GLOBE7. Future Orientation: Extent to which

people engage in future-oriented behaviors such as planning, investing in the future, and delaying gratification

8. Performance Orientation: Extent to which and organization or society encourages and rewards group members for improved performance and excellence

Dimensions of GLOBE9. Humane Orientation: Degree to

which a culture encourages and rewards people for being fair, altruistic, generous, caring, and kind to others

• 9 dimensions used to analyze attributes of 62 different countries

Clusters of World Cultures

• 62 Countries divided into regional clusters

• Clusters determined by:– Common language– Geography– Religion– Historical Accounts

• 10 distinct clusters formed

Characteristics of Clusters

Leadership Behavior and Culture Clusters

• Derived in part from Lord and Maher (1991)- implicit leadership theory– Individuals have implicit beliefs & convictions

about the attributes and beliefs that distinguish leaders from non-leaders and effective leaders from ineffective leaders • Leadership is in the eye of the beholder- what

people see in others when they are exhibiting leadership behaviors

• GLOBE researchers identified 6 global leadership behaviors

Global Leadership Behaviors1. Charismatic/value-based leadership:

Ability to inspire, motivate, and expect high performance from others based on strongly held core values• Visionary• Inspirational• Self-sacrificing• Trustworthy• Decisive• Performance oriented

Global Leadership Behaviors

2. Team-oriented leadership: Emphasizes team building and a common purpose among team members• Collaborative• Integrative• Diplomatic• Administratively competent

Global Leadership Behaviors3. Participative leadership: The degree to

which leaders involve others in making and implementing decisions

• Participative• Nonautocratic

4. Human oriented leadership: Emphasizes being supportive, considerate, compassionate, & generous

• Modesty• Sensitivity to people

Global Leadership Behaviors5. Autonomous leadership: Refers to

independent and individualistic leadership• Autonomous• Unique

6. Self-protective leadership: Reflects behaviors that ensure the safety & security of the leader & and the group

• Self-centered• Status conscious• Conflict inducing• Face saving

Universally Desirable Leadership Attributes

Universally Undesirable Leadership Attributes

Strengths of GLOBE• Only study to analyze how leadership viewed by

cultures around the world• Large Scope• Well-developed quantitative research design• Standardized instruments = generalizeable

• Cultural dimensions more expansive than Hofstede

• Provide information about what is universally accepted as “good” & “bad” leadership

• Expand our knowledge to view leadership outside our perspectives

Criticisms of GLOBE• No clear set of assumptions & propositions

to form a single theory about the way culture relates to leadership or influences the leadership process

• Some cultural dimensions and leaderships behaviors are vague (e.g. power distance, self-protective leadership)

• Implicit leadership theory- ignores research that frames leadership in terms of what people do (e.g. transformational leadership)

Application of GLOBE• Help leaders understand their own cultural

biases & preferences• Help leaders understand what it means to be a

good leader• Help leaders communicate more effectively

across cultural and geographic boundaries• Practical Ways:– Culturally sensitive websites– Design new employee orientation programs– Improve global team effectiveness

Future of Cross-Cultural Leadership

• Internet has made it easier to obtain samples & answer questions quickly –Web-based surveys– Real time chat– Video Conferencing

• Blessing & a curse– Unqualified individuals try to collect &

interpret data

Unresolved Issues/ Limitations

• Magnitude of the effect of cultural influences unknown

• The influence of cultural forces on local conceptions of leadership, the social status of leaders, and the amount of influence granted to leaders

• Processes by which cultural entities affect member psychological states and behavior not clear

• Convenience sampling• Valid information in interviews, self-report

measures, etc.

Sources• Dickson, M.W., Den Hartog, D.N., & Mitchelson, J.K. (2003). Research

on leadership in a cross –cultural context: making progress, and raising new questions. The Leadership Quarterly, 14, 729-768.

• Earley, P.C. & Erez, M. (1996). Understanding the International Leader, pp. 535-625.

• Hofstede, G. (2009). Geert Hofstede Cultural Dimensions. Retrieved April 12, 2009, from itim International Web site: http://www.geert-

hofstede.com/ • Northouse, P.G. (2007). Leadership Theory and Practice, 4th Edition, pp.

301-325.