Mgmt

Cross-Cultural Differences in Leadership

Student’s Name

Institutional Affiliation

Date

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Abstract

In the 21st century, where there has been ongoing discussion about the export of management

strategies, philosophies, and leadership qualities, the interaction among cross-cultural disparities

and leadership styles has received great attention. Therefore, this research has a main objective

and aim of assessing the impact of cross-cultural differences on organizational leadership. This

study also derives its strength from the cultural paradox; the reality that it is both a unifying

factor and a distinguishing factor between a person and another, a country and another, at the

same moment. With concrete examples of McDonald's, it focuses on real instances of how these

differences affect organizational success. In order to increase the probability of project

performance and improve the organization's competitive position, successful use of cross-

cultural project teams will provide a source of expertise and creative thinking. Interestingly, in

today's multicultural global business world, cultural differences and related tensions can

intervene with the successful delivery of projects. Project leaders should be culturally aware and

foster ingenuity and motivation through versatile leadership in order to attain project objectives

and prevent cultural misconceptions. The most well established and recognized theories of

cultural differences are outlined in this paper and illustrated with examples from project

management.

Key Words: Leadership, Cross-Cultural Differences, Cultural Framework

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Table of Contents

1. Introduction..................................................................................................................................4

2. Main multi-cultural frameworks..................................................................................................5

2.1 Hofstede’s cultural framework..................................................................................................6

2.2 Schwartz cultural framework.....................................................................................................8

2.3 Globe study..............................................................................................................................10

3. Cross-cultural differences In McDonald’s Inc...........................................................................10

3.1 Main dimensions of cross-cultural differences in McDonald’s Corporation...........................11

3.1.1 Power distance......................................................................................................................11

3.1.2 Individualism vs collectivism...............................................................................................11

3.1.3 Masculinity vs feminity........................................................................................................12

3.1.4 Uncertainty avoidance..........................................................................................................12

3.1.5 Short-term vs long-term orientation.....................................................................................13

4. Conclusion and recommendations.............................................................................................13

4.1 Conclusion...............................................................................................................................13

4.2 Recommendation.....................................................................................................................14

References......................................................................................................................................15

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1. Introduction

Most companies work in global financial markets in the 21st century, thus their leadership needs

to tackle problems related to cross-cultural disparities. Most managers and scholars state that the

leader of the future many of those who are willing to leap through fields and borders, as well as

evaluate leadership cultural differences. In the 21st century, corporate leaders need to consider

how to connect well to their workers and how to guide their teams with different cultural

backgrounds adequately Tandon (2019), It projected that in the 21st century, improved

technology, changing demographics, and globalization will create new opportunities for leaders

of diverse employees. All these forces have increased the likelihood that workers are required to

work together and in several organizations of diverse cultural backgrounds, different faiths, and

different ethnicities. Getting an all-round universal perspective is particularly essential for

leadership and successful competitiveness in foreign markets, according to Giachetti (2015).

Indeed, multinational corporations are calling for front-runners with experience in handling high

ranks of improbability, intricacies and diversity, as well as possessing an adequate understanding

of myriad systems that are social, conventional and formal. The aim of this study is to provide

insight on the effect of cross-cultural discrepancies on leadership in the 21st century, based on

real instances of how these inequalities influence the success of organizations. As illustrated by

Geert Hofstede, the study also addresses the key cultural structures, which concludes with a

synthesized conclusion and recommendation. This study also draws its inspiration from the

cultural contradiction; the fact that it is both a unifying factor and a distinguishing factor between

a person and another, a country and another, at the same time. In a report on global market

competitiveness, Hwang (2016) suggested that competitive advantage research is relatively

redundant due to the arrival of countless global players. The successful style of leadership is of

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utmost importance in preserving competitive advantage and promoting the success of the

establishment.

2. Main multi-cultural frameworks

It is important to understand the theory of culture in order to understand the phenomenon of

cultural differences and the impact on governance in the 21st century. Community contains

values, perceptions, and values learned early in life, according to Obal & Kunz (2016), and also

identified different classes. In addition, Abdelahi et al. (2020) describes culture as an acquired

behavioral aspect that is distinct from a group of individuals by whom they are known, handed

on, and transmitted by specific signs, values and principles, as well as representations. In

comparison to the culture-universal claim, the culture-specific is also an important one because it

reveals the top leadership versatility and honesty to ideas away from the constraints of national

or regional industry, thus encouraging the entire commercial business and almost everyone

associated with the process in the long run. Regarding the point of view of cultural difference,

leaders are excited to assume a "etic" or outsider methodology to inspire those they oversee,

stressing a global feature that is only present in governance around the world (Hwang, 2016). By

stressing these frameworks in leadership styles in different societies, this point of view is often

strengthened. What gives the illusion of a clash between various management styles on

numerous occasions is, in truth, just a clash between different ideologies and values. In addition

to their own, this is informed by the leader's being ignorant of cultural contexts, thereby

jeopardizing business partnerships that could otherwise flourish.

2.1 Hofstede’s cultural framework

In the last two decades, Hofstede has taken the lead in matters of cross-cultural management. His

work-related tenets played a crucial role in the study of national culture. The key goals of

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Hofstede are to identify and understand the effects on organisations of cross-cultural differences,

in particular how cultural awareness can be used to handle them more effectively, and also to

define culture more accurately. His research centred largely on the levels of primary values and

expectations, Hofstede (2015), and compared his results to several nations based on their cultural

levels. Factor data analysis from Hofstede at the country level revealed four distinct factors

generally classified into four categories, including individualism, where focus is put on

individual people and their immediate family versus extended and cooperative family members;

masculinity that includes the notion of assertiveness versus cultivating; high uncertainty

avoidance that includes the level of equality of different ethnicities As per theoretical-based

beliefs, Hofstede used electrical analysis to critically combine objects. In addition, the dimension

of Yet another Hofstede, long-term versus short-term alignment, which includes choosing to

emphasize the present rather than the future, was introduced by numerous investigators in an

Asian context. (Hofstede, 2015).

Figure 1. Hofstede’s cultural framework

Source: (Hofstede, 2015, p. 555)

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Abdelahi et al. (2020), describes the dimension of avoidance of uncertainty as portraying the

degree to which irrelevance and lack of clarity are uncomfortable for a society. How societies or

organizations deal with an unknown future is the critical issue pertaining to this dimension, and

therefore to this research. Communities displaying significant avoidance of unpredictability are

said to have inflexible ethics and behavior codes and cannot tolerate unconventional behavior

and ideas, while weak societies maintain a more passive approach where practice is considered

higher than philosophy. The long-term perspective has to do with the promotion of morality by

the company organization. Cultures with a short-term orientation are therefore very concerned

with reinforcing the entire reality (Abdelahi et al., 2020, p. 1095). In their ideology, they are

conventional, show disproportionate reverence for traditions and beliefs, a relatively insignificant

propensity to save for the yet to come, and a concentration on achieving instant results. For

societies with a long-term perspective, the reverse is true.

2.2 Schwartz cultural framework

Schwartz (2000), uses a theory-based approach to establish cultural aspects. In contrast to those

defined by Hofstede, the theory-based component is of a wider variety of cultural and cultural

aspects. Schwartz addresses principles both internally and nationally at large levels. It gives

interesting insights into similarities that occur between societies and within the same cultures.

The Schwartz approach, being a theory-based approach, defines the structure of values globally,

first internally, and then what is seen at the landscape of the country or community, which

contrasts with the cultural aspects of Hofstede. Schwartz (2000), also established that within a

framework established, personal orientation in values usually has a clear aspect. Individual-level

values are focused primarily on personally desired objectives that function as guiding principles

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in the lives of individuals. Therefore, the model will assist managers in international

organizations in defining these values, which will enable them to manage effectively in an

informed manner.

Figure 2. Schwartz cultural framework

Source: (Schwartz, 2000, p. 104)

There are ten fundamental motives characterized by ten forms of value. The framework of values

can be placed into two main dimensions that drive the distribution of motivating value classes,

such as self-improvement involving accomplishment, pleasure-seeking, and strength versus self-

transcendence consisting of plurality, values, and benevolence; and openness-to-change

involving creativity and self-direction versus values of conservation or conservatism (Schwartz,

2000, p. 104). Recently, different research studies have also illustrated the structure of values at

the individual level of study. Therefore, Schwartz's model puts the broad cross-cultural research

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on EGPAF to the test in order to provide support for this framework of values and theoretical

material.

2.3 Globe study

Global Leadership and Organizational Behavior Effectiveness (GLOBE) includes a broad

research project initially introduced by Robert House to explore the relation between culturally

rooted theories of leadership in society (Yongshil, 2012). The GLOBE project has been the most

recent one on business principles and communities in which they work, according to Yongshil

(2012). The goal of GLOBE Research was to study in depth the captivating and complex cultural

elements of leadership, business competition, business economic performance and social

conditions of the people of the countries studied. The aim of the study was to improve the

information available and applicable to CCM and to replicate and strengthen the results of

Hofstede's (2001) work, as well as to test the different hypotheses that have arisen.

3. Cross-cultural differences In McDonald’s Inc.

McDonald's Inc., with its worldwide restaurants that serve over 69 million customers daily, is

one of the world's largest chain of hamburger fast food restaurants. It has been estimated that the

organisation receives 32 percent of its revenue from the United States of America, 40 percent of

its revenue from Europe and 23 percent from Asia/Pacific, Middle East and Africa, as a result of

its growth and success around the world. As a franchise, partnership and company itself,

McDonald's restaurants operate internationally. It is substantially plausible to examine the

website of the company in different authorities in comparison to the aspects of Hofstede to

describe how these cultural dimensions clarify Macdonald's perception of diverse global culture

and McDonald’s adaptation of cultural awareness to the cross-cultural perception of its product

in different countries.

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3.1 Main dimensions of cross-cultural differences in McDonald’s Corporation

3.1.1 Power distance

This dimension defines the degree at which a community's less powerful members anticipate and

recognise disparity in the distribution of power (Hofstede, 2015). This dimension helps to

describe how differences between people are treated by a society. For example, the design of the

Netherlands Macdonald website with ample, simple and reliable information about the product,

ingredients, and locations is very basic, clean and professional. China's Macdonald's web design,

on the other hand, is vibrant, packed and highly competitive and focuses more on deals and

discounts than detail. This highlights the implementation of the power distance dimension by

Macdonald in low power distance and high power distance countries.

The degree of human injustice that encompasses the operation within each individual society is

the fundamental problem involved. Power distance is calculated in a Power Distance Index in

Hofstede's study (PDI). At the national level, the principles and behaviors found equate "low-PDI

countries" with "high-PDI countries" and some countries are put in between. Australia and

Canada have strong PDI countries. Austria and Denmark are among the low-PDI countries.

3.1.2 Individualism vs collectivism

This factor describes the view that people in a society see themselves as individuals or groups in

a society (Hofstede, 2015). Probably, in an individualistic country like the United States of

America, Macdonald's website places emphasis on individual consumers by offering a lot of

information on various subjects in order to satisfy the individual needs, aspirations and decision-

making of people. The website provides its customers with personal calls, such as finding your

favorite offers and precisely what you really want. Macdonald, however, focuses on social issues

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in a collectivist country such as Turkey, and the website includes numerous social media links

along with tabs such as group, pleasant advertising images, and consumer feedback and ratings.

Hofstede (2015) noted that Americans do not vary much from Australians in their preferences

and tastes. For example, at McDonald's, Quarter Pounders and Big Macs are still one of

Australia's most common products. In addition, it notes that Australia's inventions and trends are

not merely variants of American trends. In addition, McDonald's Australia works hard to have

innovations all over the world that fit with its name.

3.1.3 Masculinity vs feminity

This dimension describes the preference of society on the side of masculinity and coordination,

generosity and simplicity on the side of femininity for heroism, success and ferociousness, etc.

(Hofstede, 2015). It is also possible to relate a business view of this dimension as tough versus

tender. For example, the Macdonald website is designed to convey comprehensive information

and outstanding expertise in male countries such as Saudi Arabia where foreign tourists can find

out more about the owners, origin of additives, where profit goes, illustrated facts about

possession and availability, etc. Macdonald's website, however, is very vibrant, colorful and

optimistic with charming promotional photos of items in the feminine national society like

Norway, providing a pleasant experience for visitors.

Femininity describes a culture where gender roles overlap. It is supposed that both men and

women are humble, tender, and concerned with the quality of life. This aspect has been called the

Masculinity Index by Hofstede (MAS). It indicates Australia at the top with a high difference in

gender roles in the workplace.

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3.1.4 Uncertainty avoidance

This dimension explains, according to Hofstede (2015), the level of discomfort when members

of society experience uncertainty and ambiguity. In the behavioral reality of an unknown future,

this element attempts to explore a society's trading behavior. Say, Macdonald's website is a well-

defined, stylish and wide navigation menu in Russia's strong uncertainty avoidance social

structure, along with visual content areas to create a safe, positive and reliable visitor perception.

On the other hand, the website design is more flexible, bright and user-friendly with special

features such as accessibility to change different color patterns and slick content in risk taking

national societies such as Australia.

The Hofstede research nations were each assigned a rating on an Uncertainty Avoidance Index

(UAI). UAI has been derived from average country ratings on issues related to rule orientation,

work security, and stress. Research by Hofstede revealed UAI values for 50 countries and three

regions.

3.1.5 Short-term vs long-term orientation

In a review, Hofstede (2015) categorised this dimension to clarify the goals and importance of

society in a normative or realistic way to prepare for future social change. Perhaps, since

Germans are a short-term culture of the present and the past, Macdonald's website in Germany

portrays modern design and traditional top navigation, along with aspects that represent German

society's values and traditions, family values, skills and sustainability. Macdonald's Hong Kong

website, however, where culture is long-term-oriented, puts emphasis on educated lifestyle

choices along with the option of Macdonald's goods. Information on healthy lifestyles, a

balanced diet and detailed information on the effectiveness of its commodities are given on the

website.

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Managers have been used to working together to create dominant principles in their industries in

lengthy focused cultures, do not anticipate immediate success, and are given time and capital to

make their own improvements. The "bottom line" is a major concern in short-term focused

cultures; management systems depend on it and managers are continually judged by it.

4. Conclusion and recommendations

4.1 Conclusion

In conclusion, this report offers insight on how cross-cultural differences impact leadership in the

21st century, based on specific examples of how these differences affect organisational

efficiency, with particular focus on the case of McDonald's Corporation. In an example of

McDonald's web design in different countries, the study of Hofstede's cultural aspects justifies

how seriously McDonald takes the importance of national culture for a company in cross-border

operations. In addition, the cross-cultural research discussed above indicates how McDonald

retains expertise in the creativity and adjustment of its goods according to the respective

preferences in different countries. It has been proven that McDonald's is an equal employer with

the expectations, procedures or policies laid down, and guidelines for operations that provide

employee direction. Because of the organisational work and to protect the company from risk,

managers and all employees stick to these laws all the time. Monitoring processes include

frequent clock-in and out, monthly reports including time sheets, work schedules, routine

meetings and other enforcement tests, performance monitoring and registration of attendance.

The incentive systems are not very successful since the mechanism needs to be changed, because

there has been no effective framework for the appeal process, so it may not be reliable or

efficient, but it works for a reason.

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4.2 Recommendation

On the basis of the above conclusion, the report makes recommendations to enhance McDonald's

results. Next, the company's management should take advantage of the advantages that cultural

diversity brings to the company by means of successful cross-cultural management and

performance-oriented management. In addition, McDonald's leadership should also fully reshape

the cross-cultural responsibilities that allow for the integration of far-reaching methods and

opinions of workers and to outline the new means of all the activities conducted. This will

strengthen the capacity of companies to solve all of their leadership challenges that may emerge

from cross-cultural gaps and find approaches to exploit the importance of running their company

in different cultures. In leadership styles, the cultural backgrounds of the company's leaders

should not be considered because culture affects beliefs, employee relationships, and character.

There should, however, be an open and diverse cultural atmosphere in which all individuals are

able to express their viewpoints and address any concerns. Finally, because of the organizational

work and to protect the company from risk, McDonald's leadership should stick to these rules all

the time. Monitoring practices should be strengthened by the company, including frequent clock-

in and out, submission of monthly reports including time sheets, job schedules, routine meetings

and other compliance reviews, performance review and register of attendance.

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