Chapter Two

The Global and Cultural

Contexts

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Learning Objectives

 Understand the role culture can play in

leadership
 Describe the three levels of culture
 Discuss the models of national culture
 Identify the impact of gender on
leadership
 Discuss the role diversity plays in
leadership

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Definition of Culture

 Commonly held values within a group of

people
 Set of norms, customs, values, and
assumptions
 Guides behaviors
 Makes a group unique
 Makes a group different from other
groups

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Levels of Culture

Organizational
culture Organizational
culture
Organizational
culture Organizational
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  Clear words convey
message message
 Trust is more important  Formal contract
than formal contract determines action
 Indirect communication  Direct communication and
specific instructions

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High and Low Context
Culture
HIGH CONTEXT
Japanese
Chinese
Korean
African American
Native American
Arabs
Greeks
Latin cultures
Italians
English
French
North Americans
Scandinavians
Germans
Swiss Germans
LOW CONTEXT
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Hofstede’s Cultural
Dimensions
 Power distance
 Uncertainty avoidance
 Individualism-Collectivism
 Masculinity-Femininity
 Time orientation

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Individualism-Collectivism
In individualistic cultures:
 Self is autonomous from group
 Personal goals are given priority over in-
group’s
 Attitudes determine social behavior
 Relationships based on exchange
 Others are far and removed from self

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Individualism-Collectivism
In collectivist cultures:
 Self defined as dependent on in-group
 Group’s goals are given priority over
individual’s
 Social norms determine social behavior
 Relationships based on communal terms
 Friend and self are close
 Enemy is far
 OK to lie to out-group members

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Individualism-Collectivism

Horizontal - Emphasis on equality

Vertical - Emphasis on hierarchy

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Individualism-Collectivism

Vertical Collectivist Horizontal Collectivist

(VC) (HC)
 Rank and status  Members are
among members equal
 Obedience to  No hierarchy
authority
 Consensus
 Sacrifice of self

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 Individualism-Collectivism

Vertical Individualist Horizontal Individualist

(VI) (HI)
 Individual  Individual considered
considered unique, unique, but
and
 Not superior to others
 Superior to other
individuals

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 Trompenaar’s Cross-Cultural
Organizational Cultures
Egalitaria
n
INCUBATOR GUIDED MISSILE
Individual-oriented Performance-oriented
Leader removes Leader is a guide
obstacles Focus on achieving
Focus on individual common goal
growth

Person Task
FAMILY EIFFEL TOWER
Power-oriented Rigid and robust
Leader is caring Leader is undisputed
parent legitimate boss
Focus on Focus on rational
building performance
relationshipsHierarchical
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GLOBE Dimensions
 Power distance: Degree to which power is
distributed equally
 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 individuals
are close to their family or organizations
 Assertiveness: Degree of directness and
confrontation
 Gender egalitarianism: Extent of gender
differentiation
 Future orientation: Extent of investment in the
future rather than past for present
 Performance orientation: Degree to which
performance is valued

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Dimensions of Diversity

Secondary Dimensions

Marital Education
Status
Primary Dimensions

Gender Ethnicity Income

Occupation Sexual Person

Orientation Disability

Religion
Age Race
Socio- Other group
economic memberships
background

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Gender and Leadership:
Current State
 Women fill 40-50% of supervisory and
managerial positions in U.S.
 Women hold only 15.6% of corporate officer
positions
 As of 2007, only 2 female CEOs of Fortune
100 companies
 In 2006, female executives salaries were 36%
of that of male executives in the U.S.
 Wage gap at lower levels is 70%
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Suggested Reasons for Poor
Representation of Women in
Leadership
 Differences in style
 Less experience
 Less commitment
 Women quit more often
 Less education
 Gender stereotypes
 Glass ceiling
 Blatant discrimination
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Helping Women Achieve
Better Representation

 Minorities face many of the same

challenges as women
 Organizational culture is key
 Leadership is key
 Multiculturalism is key

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Factors in Becoming a
Multicultural Organization
Organizational
Culture

Similar Role Education and

Models training

Leadership

Organizational Research and

Policies measurement
Follow-up
Feedback
Accountability
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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 prohibits any discrimination
based on sex (even for foreign
assignments)
 Objectively, the best choice is the female
executive
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Leading Change:
Lehman Bros
 Challenge of providing professionals with
flexible careers paths that better accommodate
life-work balance and non-linear career
 Devised plans (Encore) to help women and
men “off-ramp” and get back to work
 Support from top strong and essential to
success
 Many formal and informal systems put in
place to support program

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Leadership in Action:
Indra Nooyi
 One of two women CEOs of Fortune 100
company in U.S.
 Strong focus on being herself
 Brilliant, talented, irreverent
 Believes women often have to work harder
than men to succeed
 Her 5 Cs for success: Competence,
confidence, communication, moral
compass, being the conscience for the
company
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 Publishing as Prentice Hall
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