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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
• Rely on environmental
cues and context
• Subtle cues convey
message
• Trust is more important
than legal and formal
contract
• Indirect communication
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Low context cultures
• Rely on explicit verbal
and written messages
• Specific and clear words
convey message
• Formal and legal
contracts guide action
• Direct communication
and specific instructions
2-6
 High and Low Context
Cultures

Rituals

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

Trust

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 Hofstede’s Cultural
Dimensions

• Individualism—collectivism
• Power distance
• Uncertainty avoidance
• Masculinity
• 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

Vertical: emphasis on hierarchy

Horizontal: emphasis on equality

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Individualism—Collectivism

Vertical collectivist Horizontal

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

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Individualism—Collectivism

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

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 Trompennars’s Cross-Cultural
Organizational Cultures
Egalitarian
Incubator Guided missile
Individual oriented Performance oriented
Leader removes obstacles Leader as a guide
Focus on individual growth Focus on achieving common
goal
Person Task
Family Eiffel Tower
Power oriented Rigid and robust
Leader is a strong, caring parent Leader is undisputed
Focus on building legitimate boss
relationships Focus on rational
performance

Hierarchical
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 GLOBE Dimensions

• Power distance: degree to which power is

distributed equally

• Uncertainty avoidance: extent of reliance on

norms and rules

• Human 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 family 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
gender egalitarianism, institutional and in-
uncertainty avoidance group collectivism

H: Humane orientation
H: Humane In-group collectivism
orientation

Hi: In-group
collectivism
L: Performance
H: Assertiveness, in-group and future,
Kazakhstan

Guatemala
El Salvador

Costa Rica

Venezuela
Argentina

Columbia
Hungary
Slovenia

America
Georgia
Eastern

Ecuador
collectivism, gender
Albania
Europe

Greece
institutional

Poland

Mexico
Russia

Bolivia
Brazil

Latin
egalitarianism collectivism,
L: performance orientation uncertainty
avoidance

H: Future orientation,
H: Performance orientation, institutional
assertiveness, future collectivism, gender
orientation, and uncertainty egalitarianism, and
avoidance uncertainty
L: Humane orientation avoidance
L: Assertiveness, in-
group collectivism
H: Performance orientation,
assertiveness, future
orientation, uncertainty H: Performance
avoidance orientation
L: Human orientation, in- L: In-group
group collectivism Copyright © 2015 Pearson Education collectivism
17
2-17
 GLOBE CLTs

• 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
educated or
• Discrimination
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
• Including culture in thinking and problem solving
Cognition • Adopting multiple cultural lenses

• Self-presentation
• Verbal and nonverbal cues
• Interpersonal interactions
Behavior • Address cultural issues

• Interpersonal skills
• Communication skills
Skills • Language competencies

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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

Saudi Arabia
• Western women are often treated as a
“third sex”; neither male, nor female
• U.S. laws prohibit discrimination based on
sex (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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