MGT380 Ch03.

Leadership, Culture, Communication, and Diversity3

Chapter 3 Outline

3.1 Leading and Influencing Organizational Culture

Dimensions of Organizational Culture Different Types of Cultures

3.2 Competing Values Framework: A Cultural Perspective

Adaptive Culture Clan Culture Achievement Culture Bureaucratic Culture Leading and Shaping Culture

3.3 Leadership and Strategic Communication The Communication Process Defined

Newer Forms of Communication How to Use the Communication Process

3.4 Leaders as Champions of Strategic Communication

Create an Open Climate for Dialogue Emphasize Strategic Topics Focus on the Customer Share Responsibility Give and Receive Feedback

3.5 Leadership Skills in Persuasion Four Steps of Persuasion Four Traps that lead to Persuasion Failure

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CHAPTER 3Leadership, Culture, Communication, and Diversity

The word culture can mean different things to different people: Perhaps it conjures up images of fine art, museums, and orchestras. Or perhaps it is the word you use to describe the shared patterns, behaviors, and artifacts of a country, region, or society. In fact, culture does have different “layers” that interact. For example, macrocultures include national, religious, ethnic, and occupational cultures that exist globally; organizational cultures exist in private, public, nonprofit, and government arenas; subcultures are found in occupational groups within organizations; and microcultures exist within occupations inside and outside organizations (Schein, 2010).

In this chapter, we focus on organizational culture before examining how culture more generally—in terms of countries, nationalities, ethnicities, and so on—can have broad implications for leadership efficacy and success. While the first two chapters laid the foundation for understanding the nature of leadership, these final three chapters show how leaders influence and shape organizations to achieve goals through communication, strategy, and teamwork. We begin this discussion with organizational culture because it shares a mutually dependent relationship with these three dimensions: An organiza- tion’s culture affects how people communicate, how strategy is developed and imple- mented, and how people work in teams. Culture can also be defined in terms of these three dimensions. It is arguably the most important internal organizational dimension. This chapter will also cover what is perhaps the more common usage of culture—interna- tional cultures—and how different cultures and globalization present opportunities and challenges for leadership. Since organizational and national cultures are influenced by global trends—for example, technology innovations, mergers and acquisitions, influx of international workers, and a mix of diverse values—leaders and followers must be able to accommodate such changes in their organizations and teams. Understanding culture has a substantial payoff for everyone:

If we understand the dynamics of culture, we will be less likely to be puz- zled, irritated, and anxious when we encounter the unfamiliar and seem- ingly irrational behavior of people in organizations, and we will have a deeper understanding not only of why various groups of people or organi- zations can be so different but also why it is so hard to change them. Even

3.6 Leading Cross-Cultural, Internationally Diverse Workforces

Changing Workforce Demographics and Perspectives

The Value of Diversity

3.7 Inclusiveness: Leaders’ Moral and Legal Imperative

Stages of Intercultural Awareness: Toward Inclusive Leadership

Leadership Initiatives for Achieving Inclusiveness

3.8 Cross-Cultural Value Differences and Diversity

Hofstede’s Five Cultural Dimensions GLOBE Study Cultural Intelligence and Cultural Sensitivity

Summary

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CHAPTER 3Section 3.1 Leading and Influencing Organizational Culture

more important, if we understand culture better, we will understand our- selves better and recognize some of the forces acting within us that define who we are. We will then understand that our personality and character reflect the groups that socialized us and the groups with which we iden- tify and to which we want to belong. Culture is not only all around us but within us as well. (Schein, 2010)

3.1 Leading and Influencing Organizational Culture

Online shoe and apparel shop Zappos has a commitment to fun and “a little weird-ness” that is apparent to any visitor to the company’s several blogs (Hsieh, 2009). Online videos cover topics that seem unrelated to apparel—how to pitch a tent, how to listen, and so on—and also give visitors a glimpse inside the office: cubicles decked out with colorful memorabilia and shiny artifacts, as well as casually clad employees who engage in staring contests and goofy on-camera interviews. As the Zappos website shows, this isn’t forced, and the company isn’t led by an eccentric preoccupied with making employees perform strange tasks. The idea behind Zappos’ “family culture” is that encouraging employees to have fun and laugh at work allows them to enjoy their work, be themselves, and perhaps be a little creative, innovative, and unconventional in the process. One of Zappos’ blogs is devoted specifically to the company’s “family culture,” and in one video, employees talk about their commitment to the company’s 10 core values—one of which is “Create fun and a little weirdness.” “At Zappos, our belief is that if you get the culture right, most of the other stuff—like great customer service, or building a great long-term brand, or passionate employees and customers—will happen naturally on its own,” CEO Tony Hsieh said. “We believe that your company’s culture and your company’s brand are really just two sides of the same coin.” Hsieh explained that the company actually conducts two sets of interviews during the hiring process: the standard interview to assess experience and ability and another to assess the culture fit. To be hired, candidates must demonstrate that they can commit to Zappos’ core values, which center on service, innovation, growth, positive relationships, and attitude. “And by commit, we mean that you’re willing to hire and fire based on [these core values],” Hsieh said (2009).

Zappos has one example of what leadership experts would call a strong—and perhaps unique—organizational culture. In this context, culture refers to organizational members’ shared meaning of values, beliefs, and assumptions about how things are done and what behaviors are acceptable (Connors & Smith, 2000; Schein, 2010). As these individuals come together, they learn over time what is considered acceptable and important, how to act, and what works best for the group as a whole—and this becomes their collective culture. At Zappos, for example, management and employees all value change, growth, and learn- ing, and they communicate that with their behavior.

In a larger sense,

Culture is both a “here and now” dynamic phenomenon and a coercive background structure that influences us in multiple ways. Culture is con- stantly reenacted and created by our interactions with others and shaped

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CHAPTER 3Section 3.1 Leading and Influencing Organizational Culture

by our own behavior. When we are influential in shaping the behavior and values of others, we think of that as “leadership” and are creating the con- ditions for new culture formation. At the same time, culture implies stabil- ity and rigidity in the sense that how we are supposed to perceive, feel, and act in a given society, organization, or occupation has been taught to us by our various socialization experiences and becomes prescribed as a way to maintain the “social order.” (Schein, 2010)

Culture has also been characterized as the personality and chemistry of an organization. You get a sense of an organization’s culture and how it feels when you walk into a build- ing or facility. It may feel rigid and formal or casual and friendly. People may be approach- able or distant with each other.

A leading scholar on culture, Edgar Schein at MIT, wrote that culture serves two impor- tant functions in organizations: First, culture creates internal unity, integrating members so they can better work together to achieve common goals. This refers not only to how well individuals get along with one another, but also to how in sync their behaviors and goals are. Culture ties things and people together through shared values and norms. In this sense, culture creates stability and predictability inside people’s thinking (their shared mind-sets) and between internal organizational systems (vision, mission, strategy, and values). Second, culture helps an organization adapt to and integrate with its external environ- ment by adopting the right values to respond to external threats and opportunities (Schein, 2010). A strong culture, then, can make a difference in how successful an organization can be, and it is an effective leader who builds and promotes a purposive, cohesive cul- ture. Culture also holds the other critical dimensions of an organization together—aligns them—with the vision, mission, and values of the organization. Creating and shaping effective cultures is a significant leadership responsibility and challenge, especially since leadership values and culture predict organizational performance (Chatman & Cha, 2003; Rosenthal & Masarech, 2003). Organizations whose founders and leaders conscientiously guide and deliberately manage cultural values outperform similar organizations that do not (Kotter & Heskett, 1992).

Dimensions of Organizational Culture

To better understand organizational culture, we can compare it to an iceberg, as shown in Figure 3.1, with visible and invisible layers. The first visible layer of an organization’s culture, which Edgar Schein (2010) called cultural artifacts, are what you physically see and hear upon entering the headquarters of a company: the physical layout, the ways people dress and act, tangible symbols such as pictures on the walls, and the interior decoration. Visible cultural layers also include the atmosphere the people create, which in turn reflects the company’s values. For example, Google’s visible culture looks and feels like a relaxed college campus, and Google’s values include “You can be serious without a suit” (“Our Philosophy,” n.d.). Google employees receive 12 weeks of fully paid mater- nity leave; gourmet chefs, who provide on-site healthy, free lunches, snacks, and dinners; free on-site doctors at company headquarters; and free massages throughout the day (“Benefits,” n.d.).

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CHAPTER 3Section 3.1 Leading and Influencing Organizational Culture

At a deeper, invisible level are the expressed values and beliefs of the company. These consciously held convictions are not readily observable but can be under- stood when professionals and followers describe what they do and why. For exam- ple, evidence suggests that soldiers gen- erally commit to the U.S. Army because of its values—that is, loyalty, duty, and selfless service (Crandall, 2007). While soldiers join up for a number of reasons (e.g., to earn money for college, change one’s image, and so on), most do so for intrinsic reasons—a motivation to serve, a desire to find racially unbiased oppor- tunities, or some ideal. Crandall wrote that the positive association a soldier has for the values system carries over to com- mitment to the institution. This is consistent with business sector findings that the con- gruence of member values with the overall organization’s values contributes to commit- ment to the organization (2007). Values run deep in organizations and can significantly influence commitment to the organization for those members who stay over time. Two studies (Clugston, Howell, & Dorfman, 2000; Wasti, 1999) showed that individual dif- ferences in cultural values (e.g., collectivism and power distance—discussed later in this chapter [Hofstede, 1980]) were positively correlated with normative commitment to the organization; and normative commitment correlates positively with desired outcome

Figure 3.1 Organizational Culture Dimensions

Source: Based on Organizational Culture and Leadership (2nd ed., pp. 3–27), by Edgar Schein, 1992, San Francisco, CA: Jossey-Bass.

Culture that can be seen at the surface level

1. Artifacts: dress, ceremonies, office design, slogans.

Visible

Invisible

3. Underlying assumptions and deep beliefs: “We will earn your respect.”

2. Expressed values: “We value customer feedback”, “Quality is our number 1 concern.”

Deeper values and shared

understandings held by

organization members

U.S. Army soldiers generally commit to the Army because of its core values of loyalty, duty, and selfless service. Positive associations a soldier has for the Army’s value system car- ries over to commitment to the institution.

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CHAPTER 3Section 3.1 Leading and Influencing Organizational Culture

variables such as performance. More research has been called for in this area (Clugston, Meyer, et al., 2000).

As we will discuss in the following sections, organizational culture can also be described in terms of its stability, aggressiveness, team orientation, people orientation, outcome ori- entation, attention to detail, amount of innovation, and tendency to take risks (Chatman & Jehn, 1994; O’Reilly, Chatman, & Caldwell, 1991).

Different Types of Cultures

Not all organizational cultures are created and led equally. As noted earlier, the quality and the implementation of organizational culture can affect performance. However, just as different types of leadership can be effective in different types of situations, different types of organizational culture can also work well, depending on the situational context. We will examine what differentiates a high-performance culture from a low-performance culture, and we will also take a look at four different approaches to organizational culture, based on the Competing Values Framework discussed in Chapter 1.

High Performance Versus Low Performance Cultures can be characterized as either high performance or low performance, depending on their ability to achieve goals, grow, and bring out the best in their members. As seen in Table 3.1, the two can be described in opposition to each other.

Take the Lead Leading and Influencing Organizational Culture

You’ve recently purchased a company specializing in call-center activities. You saw a limited supply of call centers that could deliver a quality service at a competitive price in the marketplace and a call- center organization that was severely mismanaged. You will assume the role of president and CEO.

Part of the organization’s mismanagement was in their value proposition to their clients (both current clients as well as future prospects). In other words, they failed to differentiate themselves from their competitors in the value they offered prospective clients. (Why would a client choose them versus another call center?) Furthermore, you believe that while the potential for success is tremendous, the business will likely fail if you cannot align internal customers (i.e., employees) around a central theme of customer service.

Leading and influencing the organization’s culture is imperative for you in this new venture. Keeping in mind your role as a leader, consider the following:

1. As the president and CEO, how will you accurately identify the current culture in place within the organization?

2. Is identifying the current culture in place a worthwhile activity? 3. What actions will you take to modify the culture? 4. Who will you look to ally with in order to effectively change the organization’s culture?

See page 227 for possible answers.

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CHAPTER 3Section 3.1 Leading and Influencing Organizational Culture

Table 3.1 High-Performance Versus Low-Performance Cultures

High-Performance Culture Low-Performance Culture

Clear vision, mission, and strategy (strategic systems) Unclear vision, mission, and strategy

Strong culture, internal unity, and values based on commitment and trust

Low cultural strength and polarized subcultures

Focus on excellence, achievement, and adaptability to the external environment

Insular and resistant to change

Risk aware Risk averse

Free-flowing information, even with bad news Information bottlenecks

Cross-boundary collaboration Emphasis on turf, status, and bureaucracy

Unclear roles and responsibilities Energized roles and accountability

Source: Based on Corporate Services Generaux. Retrieved from http://www.scribd.com/doc/15931514/Low-vs-High-Performance-Culture-FCC

A high-performance organizational culture possesses several characteristics. It possesses a clear vision, mission, and strategy; is characterized by a strong culture and internal unity; and focuses on excellence, achievement, and adaptability.

Clear Vision, Mission, and Strategy Vision, mission, and strategy—and how to create them—will be discussed in greater detail in the next chapter, so for now, simply know that a high-performance culture knows exactly where it is going and how it will get there. One empirical study showed that, among other shared qualities, the highest-performing companies all publicly displayed and affirmed their missions and values statements, showing both clarity in and commit- ment to their aims, and their business and work processes and procedures were consistent with their mission and values (Fisher, 2000). Having such clarity helps an organization recognize external opportunities and exploit them.

A low-performance culture, on the other hand, lacks vision, mission, and strategy. This is evident when leaders and officers of an organization cannot identify or agree on a clear vision, mission, and strategy, which inevitably results in the other symptoms of a low- performance culture. Without consensus on these dimensions, alignment of projects and work tasks is haphazard and misguided.

A high-performance culture also excels in systems thinking (Daft, 2011; Senge, 1990; Sterman, 2001), which involves understanding the relationships among the parts of an organization in the larger system (the entire organization) to determine the root cause and effects of problems, and to discover new opportunities. Another way of putting this is thinking outside the box, seeing the big picture, and understanding that the whole is equal to and can exceed the sum of its parts. Apple founder and CEO Steve Jobs’s visit to the Xerox Corporation in 1979—before the development of the Mac—illustrates this leadership capability. On his visit, Jobs was shown an early personal computer called the Alto, which employed a mouse and an exciting new “graphic interface technology

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CHAPTER 3Section 3.1 Leading and Influencing Organizational Culture

software,” an application designed to make the user’s interaction as simple and efficient as possible (Stephanidis & Savidis, 2001). He, being the visionary that he is, saw what few technologists would see—an opportunity to turn an insight from an existing technology into a new industry. With this bigger picture in mind, Jobs raced back to Apple and began work on the Macintosh, which in 1984 became the first mass-produced personal computer that used a mouse and the type of software Jobs saw at Xerox. Similarly, when Bill Gates saw the Macintosh prototype operating, he, like Jobs, also saw a bigger picture of what that type of software on a consumer laptop could be. Gates had his first vision of the user- friendly Windows software operating system—now a global standard for individuals and corporations (Cringely, 1996).

Strong Culture and Internal Unity High performance best exhibits how culture can function and benefit an organization, as identified by Edgar Stein: High-performance cultures create internal unity and adapt well to their external environments. Internal unity, also known as internal behavioral consistency, can be seen in how the airline industry responded after the attacks of September 11, 2001. As consumers balked at flying, profits fell, and employee morale decreased, the airline industry moved focus more on the customer in its marketing. Many airlines tried to com- municate more with customers and pay close attention to customer satisfaction (Sorensen, 2002), opening more routes to provide more flying options. They also worked to enhance the morale of their staff and employees by listening and negotiating with their needs and demands. Leaders created an environment in which members and teams were cohesive, and the organization’s strategies, structure, and management systems were well integrated.

High-performance cultures are also built on communication, commitment, and trust. Leaders and followers at these companies actively listen to each other and to customers, suppliers, and vendors (Fisher, 2000); high-performance cultures are often grounded in socially responsible principles that have the interests of followers, clients, shareholders, and stakeholders in mind. Leaders cultivate responsive and respectful relationships with their employees without micromanaging them. Lawler’s (2003) specific suggestions illus- trate the ingredients for developing commitment and trust among followers to achieve high-performance goals:

• Treat employees with dignity and respect. • Grant employees enough autonomy to excel and contribute. • Cultivate a relationship with employees based on mutual respect and

interdependency. • Initiate unique one-to-one relationships with top performers. • Give increased responsibility to the best employees. • Implement mentor programs. • Celebrate employee achievements. • Hold managers at every level responsible for the growth and development of the

people who report to them. • Use the full range of rewards and punishment to enforce high performance

standards. • Encourage employees to use their own initiative and creativity in performing

their jobs. • Set reasonable and clear performance standards for all employees.

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Low-performance cultures have weak cultures, or low cultural strength, meaning that followers are not aligned with the values and ways of doing things in their organizations. This may result from poorly defined or communicated visions and strategies by leaders, or because followers have not accepted the leader ’s vision (Lussier & Achua, 2007). As a result, there is little commitment to or identification with the leader ’s strategies and plans. Followers may also show lack of concern for and even alienation from the organi- zation. It is not uncommon for talented performers to start leaving companies when this symptom persists.

Low-performance cultures are also prone to polarized subcultures, which are divisions within an organization that tend to form when there is avoidance of or lack of align- ment and consensus around a common organizational strategy. In-groups and out-groups form and affiliate around self-interests (Tajfel, Billig, Bundy, & Flament, 1971). Personal “fiefdoms” can also result at the top of the organization, where higher-level managers compete for power and influence. Without an overarching goal and strategy, such groups become politically charged and interactions result in conflict, gossip, and misinformation. Creating and aligning the dominant organizational culture with subcultures is a challeng- ing leadership responsibility that takes initiative, expertise, and courage (David, 2005). Leaders can take concrete actions to align subcultures with the dominant organizational culture by first being honest and open with teams and followers. Secretive, noncommu- nicative leaders create doubt in the minds of others, which often leads to unproductive subcultures. Second, leaders who challenge and offer creative assignments to high per- formers increase the likelihood of strengthening the larger organizational culture. Third, leaders who show interest and who value constant learning and continuous improve- ment through both intrinsic and extrinsic rewards encourage effort and productivity in followers, which in turn enhances the overall organization. At the same time, leaders who acknowledge quality failure (i.e., failure resulting from credible efforts to experiment for the benefit of the organization) encourage entrepreneurial risk taking in both subcultures and the larger culture. Finally, leaders with strong organizational cultures can encourage the development of functional subcultures whose work can contribute to the overall per- formance of the organization (Alexander, n.d.; Boisnier & Chatman, 2002).

Focus on Excellence, Achievement, and Adaptability The Apollo 13 mission exemplifies a focus on excellence and adaptibility. The 1970 lunar landing mission had to be aborted en route due to loss of cryogenic oxygen in the service module and consequent loss of capability to generate electrical power, provide oxy- gen, and produce water (Smithsonian, n.d.). The crew had to use the lunar module’s resources as a “lifeboat” during the return trip to Earth in order to save its batteries, and needed oxygen for the duration of the flight. In spite of limited power, loss of cabin heat, shortage of potable water, and the need to modify the carbon dioxide removal system, the crew was able to return safely to Earth (Lovell, n.d.). “Apollo 13 has been written into the history books as the mission that was the ‘successful failure,’” wrote Torrance (2006). “I disagree. I think the Apollo 13 mission was the complete opposite. If I wrote the Apollo 13 chapter of the history book, I would state the Apollo 13 mission was NASA’s great ‘failed success.’”

Fisher’s study (2000) showed that high-performance cultures value adaptability, resil- ience, and responsiveness to productive change—what Edgar Schein might have also

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CHAPTER 3Section 3.1 Leading and Influencing Organizational Culture

termed adapting well to external environments. At Microsoft and Nike, leaders work with committed followers to consistently meet the high volatility and changing market demands of national and global customers. Their product lines change, adapt, and even create customer demand. Microsoft, for example, continues to generate new editions of Windows that have more versatile and updated functions. Nike keeps introducing varia- tions on models and styles of shoes that attract different customers. Leaders who create high-performance cultures emphasize and focus on excellence, not settling for mediocrity of product or service. Followers are trained to use “zero defects” benchmarks (standards that accept no errors in any product or service), enhanced product and service quality, and outstanding customer service (Lussier & Achua, 2007). It should be noted that too strong an emphasis on zero defects can lead to cover-ups of problems in the short term that create larger problems in the long term; rather, an error-management approach reinforces learn- ing from errors to prevent their recurrence. So it may be helpful to approach product and service creation with zero-defects foresight and error-management patience and follow- through (Haselton, 2006).

In contrast, low-performance cultures tend to be insular and resistant to change. The country-club style discussed in Chapter 1 can develop, where leaders focus more on interacting with colleagues than on directing strategically. Leaders and followers also can avoid mobilizing resources to meet external competitive needs. This sort of com- placent attitude and lack of responsible planning and foresight could be seen in the American automobile industry prior to the 1980s and into the 1990s. The cultures of the “Big Three” (General Motors, Ford, and Chrysler—now DaimlerChrysler) seemed like country clubs. In the 1980s, leaders refused to adapt to the oil crisis and develop more efficient four-cylinder cars. As a result, American car companies lost market share when Japanese four-cylinder cars from Toyota and Honda arrived. In the 1990s, the Big Three overinvested in gas-guzzling SUVs, still depending on consumers’ consistent use of oil (Gordon, 2005). Later, “due to a ‘perfect storm’ of poor business decisions, rising health-care costs and strong foreign competition” they again lost market share, laid off employees, and GM had to be bailed out a decade afterward” (Gordon, 2005). A similar phenomenon appeared to be happening in the United States in 2011 as China gained a head-start in so-called green, or environmentally friendly, technology research, devel- opment, and manufacturing (Stavins, 2011). For example, one notable research report stated that “China is prevailing in the global race for green jobs in sectors from solar panels to advanced lighting, and appears to be on an unstoppable upward path” (Feld- man, 2010). China’s government invested over $34.6 billion in 2009 in its low-carbon economy—double the amount spent for this type of energy by the United States, and more than any other country. China is now the headquarters for six of the largest renew- able-energy employers (Feldman, 2010). In contrast, government leaders in the United States were only speaking of becoming a global leader in this industry at the time, rather than actively investing.

Symptoms of low-performance cultures serve as indicators for leaders and followers to beware of cultures in trouble. However, as noted earlier, effective leadership can make all the difference in how organizational culture manifests itself. A dominant characteristic of strong, high-performance cultures is that they are created and led by effective leaders whose values match external environmental needs and demands.

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CHAPTER 3Section 3.2 Competing Values Framework: A Cultural Perspective

3.2 Competing Values Framework: A Cultural Perspective

At the end of Chapter 1, we used the Competing Values Framework (CVF) to examine how the various leadership roles interact within the entire organization, in the con- text of its external environment. We can use the CVF as a lens to view organizational cul- ture as well, for in addition to viewing cultures as high performance or low performance, some scholars study organizational culture as a construct in which the leadership’s strate- gic focus fits with the organization’s external environment (Cameron & Quinn, Cameron, Quinn, DeGraff, & Thakor, 2009; Kotter & Haskett, 1992). From this perspective, types of organizational culture can be classified according to external and internal environmental focus as well as their emphasis on stability versus flexibility.

Studies show that the fit is related to performance (Apfelthaler, Muller, & Rehder, 2002): An organization that is able to identify whether it should be more internally or externally focused, or more stable or more flexible, based on its external environment is more likely to perform more effectively. Leaders are responsible for deciding what major values are needed to fit with the right organizational vision, strategy, and external environment. These values represent what is important to the organization. Founders are the first to define an organization’s cultural values, which evolve over time depending on other lead- ers, environments they must manage, and internal teams who are hired and integrated into the cultures. Organizations in the same industry often share similar values, since they work in similar environments (Chatman & Jehn, 1994). For example, in turbulent and changing market-oriented environments—such as California’s Silicon Valley, where major global technology companies reside and compete—a more adaptive culture will be a better fit for matching customer demands, since creativity is a key value (Deshpande & Farley, 2004).

With this perspective in mind, we address the key question of leading different cultures: “What types of cultures and supporting organizational values are best suited to different environments in order to achieve high performance?” The CVF suggests that there are four culture types that leaders can use to align their strategies to the environment. Figure 3.2 illustrates a model showing the four different cultural types (Quinn, 1988; also see Hooijberg & Petrock, 1993; McDonald & Gandz, 1992).

We focus here on two dimensions of the CVF: (1) on the horizontal axis, the degree of flexibility and stability required by the external environment, and (2) on the vertical axis, the degree to which the leader’s strategic focus is external or internal. The four cultural types are adaptive, achievement, clan, and bureaucratic. These four types are not mutu- ally exclusive; an organization can have values that fit into more than one category, or even in all. High-performance, strong cultures tend to fit more in one cultural category.

Different types of cultures suit individual interests and needs. You may find that your interests and skills are best suited for a clan culture, which would suggest, referring to Figure 3.2, that a collaborative, agreeable culture, where supervisors and managers value fairness and cooperation and equity, would be more motivating for you. Some human- resources positions, depending on the organization and industry, may be good career or position options for those who have a clan-culture preference. On the other hand,

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CHAPTER 3Section 3.2 Competing Values Framework: A Cultural Perspective

you may prefer an achievement culture, where the supervisors and managers value and reward aggressive, competitive, and perfectionist behaviors. In that case, a sales posi- tion in a highly competitive, fast-moving organization or industry may be a good fit. If a bureaucratic culture is preferable, then you value efficiency, order, formality, and rou- tine. “Backroom” operations positions in IT or other technical types of jobs and careers may be more suitable for you. Opposite the values of the bureaucratic culture are the values of an adaptive culture. Flexibility, insight, and innovation are values that charac- terize adaptability cultures. You can see in Figure 3.2 the types of values you might prefer in that setting.

Adaptive Culture

Corporate cultures have been characterized in broader terms as either adaptive or unadaptive (Kotter & Heskett, 1992). Adaptive cultures, in the upper right of Figure 3.2, are open to and embrace external change and are characterized by flexibility. Lead- ers and followers in adaptive cultures care about customers and the internal alignment of people with processes to meet external demands; they value quick and decisive responses, risk taking, creativity, and innovation, while keeping the best interests and integrity of the organization in mind. This type of culture is also supportive of follow- ers, and leaders tend to give followers more autonomy—and leeway to fail—to meet

Figure 3.2 Four Cultures

Source: Based on Beyond Rational Management: Mastering the Paradoxes and Competing Demands of High Performance, by R. Quinn, 1998, San Francisco, CA: Jossey-Bass, 1998; “On Cultural Change: Using the Competing Values Framework to Help Leaders

Execute a Transformational Strategy,” by R. Hooijberg and F. Petrock, 1993, Human Resource Management, 32(1), 1993, pp. 29–50; and “Getting Value from Shared Values,” by P. McDonald and J. Gandz, 1992, Organizational Dynamics, 21(3), pp. 64–76.

The Leadership Experience (5th ed.), by R. Daft, 2011, Mason, OH: South-Western, Cengage Learning.

Internal Focus

Values:

Values:

Efficiency Rationality Order Obedience Formality

Bureaucratic Culture

Stability

Values:

Achievement Culture

Initiative Aggressiveness Diligence Perfection Competitiveness

External Focus

Adaptive Culture

Values: Entrepreneurship Risk taking Adventure Creativity Responsiveness

Clan Culture

Agreeableness Consideration Cooperativeness Fairness Equality

Flexibility

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CHAPTER 3Section 3.2 Competing Values Framework: A Cultural Perspective

customer needs. While there is not a best “one size fits all” organizational culture and leadership style that works opti- mally in all situations, researchers agree that adaptive organizational cultures tend to be more effective, and most orga- nizations are being pressured by external forces to adopt such cultures to survive. Leaders in unadaptive cultures are not open to change and sometimes serve their own self-interests; their values can, in fact, impede true change if self-inter- ests dominate.

In contrast, an example of an adaptive cul- ture is the giant enterprise-software com- pany Oracle. Vivek Marla, vice president

and leader of Oracle Solution Services India—a highly visible global consulting group with the company—reflected on his 20 years at Oracle:

I like Oracle’s penchant to be in the leading edge of technology and products. I enjoy the dynamism that exists at Oracle. While its long-term strategy is very clear and strong, tactically it is very adaptable to change based on busi- ness needs. I thrive in this change. I also enjoy the diversity of opportunities that Oracle provides to its employees. Most importantly, I enjoy the people I work with, no matter which country I am working in. (Sreenivasan, 2009)

Clan Culture

Clan cultures, in the upper left box of Figure 3.2, emphasize cooperation, consideration, fairness, and teamwork. These are internally focused cultures that stress flexibility. Lead- ers believe that organizational success in such environments, given customers’ needs, is best achieved through internal employee relationships. These cultures respond to exter- nally dynamic environments by emphasizing follower empowerment, shared responsibil- ities, and team synergy. These are by no means country-club cultures where productivity is ignored in favor of relationships. Instead, followers are treated like owners and given discretion to implement the organization’s mission and goals. Reflecting back on the CVF discussion, clan cultures may not work well in environments that require aggressive, com- petitive, external-oriented strategies.

Zappos, the company in the opening story of this chapter, is an example of a clan culture. The company’s website includes a “family culture” blog, accentuating the tight-knit rela- tionships and atmosphere valued at the company. The company uses a model of loyalty business and relationship marketing, which depend on emotional connections with cus- tomers and a cohesive culture in the company. The company’s rapid growth is attributed to repeat customers through word of mouth (Hsieh, 2006).

The Oracle Corporation is a good example of an adaptive business culture. While the long term strategy is clear it is very adaptable to change based on business needs.

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CHAPTER 3Section 3.2 Competing Values Framework: A Cultural Perspective

Achievement Culture

Leaders develop achievement cultures, in the lower right box of Figure 3.2, to respond to stable, external environmental opportunities and threats. Achievement cultures generally function in mature external markets competing for market share. Leaders take a strategic external focus because they are alert to competitors seeking market share and profitabil- ity. The mature and saturated state of the consumer markets these firms operate in makes for very intense competition. Reflecting back on the CVF, achievement cultures would not necessarily work in environments that require more cohesive, cooperative, and considerate internal strategies, where people are not required to compete head-to-head with one another.

The underlying values of these cultures are competitiveness, aggressiveness, result ori- entation, diligence, and personal initiative. Culturally speaking, “Winning is the glue that holds the organization together” (Hooijberg & Petrock, 1993). The opposite of clan cultures, achievement cultures foster competition among employees, departments, and other work units. Companies takes a competitive as well as an adaptive strategic and cultural stance against other external organizations in achieving organizational goals. For example, GE CEO Jeff Imelt, the successor to star Jack Welch, continued to ignite the com- petitiveness of that company’s culture by moving people and things around to further advance growth and profitability. This quote explains Immelt’s cultural leadership at GE:

So how, exactly, do you make a culture as ingrained as GE’s sizzle with bold thinking and creative energy? To start, you banish some long-cher- ished traditions and beliefs. Immelt has welcomed outsiders into the high- est ranks, even making one, Sir William M. Castell, a vice-chairman. That’s a serious break with GE’s promote-from-within past. He is pushing hard for a more global workforce that reflects the communities in which GE operates. Immelt is also encouraging his homegrown managers to become experts in their industries rather than just experts in managing. Instead of relying on execs who barely had time to position a family photo on their desk before moving on to the next executive assignment, he’s diversifying the top ranks and urging his lieutenants to stay put and make a difference where they are. (Brady, 2005)

Bureaucratic Culture

Bureaucratic cultures, in the lower left box of Figure 3.2, have an internal, stable focus and are the opposite of adaptive cultures in value orientation. Leaders in bureaucratic cul- tures focus on internal environments and value stability, status, order, and efficiency. They emphasize rational and formal methods, relying on rules and procedures in the internal cul- ture. Employees who fit with this type of culture enjoy predictability over change, regular- ity over chaos, and obedience over autonomous decision making. In the past, particularly the 1950s, insurance companies, hospitals, banks, and the automotive and other industries enjoyed the safety and security of bureaucratic cultures. This type of external environment has given way to economic, social, and political turbulence and radical change.

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CHAPTER 3Section 3.2 Competing Values Framework: A Cultural Perspective

The term bureaucracy has unfortunately taken on negative connotations in recent times; it has come to mean slow, stodgy, ineffective, and riddled with red tape. However, parts of all organizations have to be bureaucratic: They need rules, organization, regimenta- tion, and efficiency. Systems that deal with data, accounting, and information processing are in part bureaucratic. Insurance companies, hospitals, accounting firms, and postal services are examples of organizations that rely on accurate and detailed business-pro- cessing systems and methods that could be considered bureaucratic. One employee has described the highly successful and profitable Metropolitan Life Insurance Company as possessing “small company responsibilities w/big company resources/bureaucracy” (“MetLife,” 2011). The employee lauded the “fast-paced, big company pockets, room for growth, management encouragement, support for training, and career growth, work time flexibility, [and] benefits,” but noted that MetLife has a “low culture,” or a lack of team-building activities such as in-house box lunches and group employee activities away from work.

The effectiveness of each of the four culture types depends on different environmental conditions and leadership strategic orientations. The emphasis on particular cultural val- ues depends on an organization’s strategic focus and on the level of environmental stabil- ity and flexibility, its industry, and the responsibility that strategic leaders take to ensure that organizations balance cultural values with competitiveness. Leaders must also create the fit between strategy and culture and be ready, able, and willing to change values and cultures that may have worked in the past but are no longer effective. In situations where leaders find that they must change external strategies to compete in external environ- ments, a shift in organizational culture can be significant. In some instances employees may leave an organization that must, for example, shift strategies and make an internal change from a bureaucratic to an achievement culture. In such instances, training, coach- ing, and other types of reorientation programs are offered to help employees adapt and adjust to such cultural changes. In the last section, we will examine what concrete actions a leader can take to shape the culture of his or her company.

Leading and Shaping Culture

Shaping, changing, and aligning culture with strategy are, as we have noted, among the most challenging tasks of leaders—but also arguably among the most important. Scholars often point to how company founders set the tone for their companies and how that can affect a start-up’s success. Founders influence the formation of the culture’s values and beliefs by hiring and socializing (i.e., influencing, teaching) followers who think and feel like they do. Edgar Schein wrote that “founders not only choose the basic mission and the environmental context in which the new group will operate, but they choose the group members and bias the original responses that the group makes in its efforts to succeed in its environment and to integrate itself” (Schein, 2004, 226).

Wal-Mart founder Sam Walton, for example, worked to create a unique culture of equality, encouragement, high performance, and customer service centered on 10 rules (Abraham, Kathawala, & Heron, 1988; Walton & Huey, 1992)

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Sam Walton’s Ten Rules:

Rule 1: Commit to your business. “If you love your work, you will be out there every day trying to it the best you possibly can, and pretty soon everybody around you will catch the passion from you—like a fever,” Walton said.

Rule 2: Share your profits with all your associates (employees). Walton advocated treating his employees like partners, which he believed would increase performance.

Rule 3: Motivate your partners (i.e., employees). Money and ownership alone are not enough, Walton said.

Rule 4: Communicate everything you possibly can to your partners. “The more they know, the more they will understand. The more they understand, the more they will care. Once they care, there is no stopping them,” Walton said.

Rule 5: Appreciate everything your associates do for the business. Walton said that a pay- check and a stock option only buys “buy one kind of loyalty.”

Rule 6: Celebrate your successes. Walton encouraged showing enthusiasm and also find- ing the humor in your failures.

Rule 7: Listen to everyone in your company. Walton believed this empowered associates and forced “good ideas to bubble up.”

Rule 8: Exceed your customers’ expectations. Walton was adamant about the company motto, “Satisfaction Guaranteed.” The company should put the customer first and avoid making excuses for mistakes.

Rule 9: Control your expenses better than your competition. For Walton, running an effi- cient operation could sometimes make up for mistakes made.

Rule 10: Swim upstream (be different).

Walton died in 1992, and while times have changed since he founded Wal-Mart, his legacy and business philosophy remain robust. The company is adapting to the new global com- petitive environments in which it has entered.

Southwest’s Herb Kelleher provides another example. While Kelleher is not the original founder of Southwest, he was the founder ’s attorney and is credited with taking the airline to the level it is at today. Kelleher was once asked who comes first—customers, shareholders, or employees? He replied, “Employees come first; and if employees are treated right, they treat the outside world right, the outside world uses the company’s product again, and that makes the shareholders happy” (Morrison, 2003). Kelleher saw Southwest as an upside-down pyramid: The top level managers were at the bottom, and employees were the heroes on the front line, since they were “the ones that make things happen” (Lee, 1994). Kelleher said that the company “hired for attitude, enthu- siasm, and sense of humor,” and that many applicants were made to take personality tests. When a vice president once admitted to Kelleher that she had interviewed 34 can- didates for a ramp-agent position, Kelleher told her to interview 134 people if that was what it took to find the person with the right attitude (Abraham, Kathawala, & Heron, 1988). The company continues to hold a reputation for high spirits and hard work. Freiberg and Freiberg noted that at “Southwest Airlines there exists a spirit of liberty and freedom that encourages people to use their imagination, express their individual- ity, and exercise leadership” (1996). This is the nature of a high-performance clan and achievement culture that follows the example and role model of a transformational, charismatic founding leader.

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CHAPTER 3Section 3.2 Competing Values Framework: A Cultural Perspective

So how does a leader go about creating, building, and maintaining a high-performance culture? The next sections identifies the primary and second- ary actions a leader can take.

Primary Actions Primary leadership cultural actions (Schein, 1992) aim to build a culture from start-up time to the next phase. Leaders seek to align the cul- ture by identifying a vision, mission, values, and strategy with a team or teams, and then working with followers to plan and implement business processes (i.e., sales, marketing, research, and development of the organization). This requires defining a clear vision, mission, and values state- ments upon which strategy and structure are based. Considerable leadership involvement, influence, and communication are required to ensure that an effective culture is maintained. Leaders use their authority and charisma to influ- ence, motivate, and direct all of these dimensions. Most U.S. presidents and global leaders weigh in on articulating, influencing, and directing major international and national economic and political policies in their administrations. They use the power of their positions, their physical presence and speaking at public events, and their strategic intelligence at cabinet meet- ings to ensure that the policy-implementation processes run as planned.

Secondary Actions Secondary leadership cultural actions (also called symbolic leadership cultural actions) are behaviors, signals, and events that leaders and organizations create and enact to instill and reinforce desired cultural values. Symbolic actions include leadership role modeling, organizational ceremonies, artifacts (tangible and intangible symbols), and new-member socialization processes.

The leader as cultural role model is one of the most important symbolic influencers of cul- ture and follower behaviors. Most people remember a coach, teacher, or leader who influ- enced them as a role model. Members of a top-level team and employees learn by observ- ing how leaders act, think, reward, and disapprove of ideas, policies, actions, and practices. The leader as role model follows the saying, “Action speaks louder than words.” People learn quickly whether or not their leaders actually follow the values they proclaim for the rest of the organization (Ready, 2004). Sam Walton practiced what he preached: He made his presence felt in the stores, using MBWA (management by walking around). Of course he did more than just walk around; he engaged associates and customers, discovered what worked and didn’t, and used that information in developing strategy and best practices.

Southwest Airlines CEO Herb Kelleher believes employees come first and if they are treated right, they treat the out- side world right. The outside world will then use the company’s product again.

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Ceremonies, or planned activities and events, are also strong shapers of cultures. Cer- emonies are used to recognize, honor, and remember people in organizations. Such events reinforce cultural values, create an emotional bond among people and across formal boundaries, and communicate who and what is valued in organizations. High schools and colleges have meetings of national honor societies and graduations. Mary Kay, among the largest direct sellers of skin-care and color cosmetics in the United States, started a ceremony of awarding pink Cadillacs for outstanding sales results. The pink Cadillac became an internationally known symbol that enshrined the memory of Mary Kay Ash and her company.

Stories are narratives based on actual people and events that endure and are repeatedly told by followers. Stories are one of the oldest and most powerful ways of instilling and reinforcing values in organizations. While some stories are embellished beyond facts, it is the shared energy and enjoyment of recalling such narratives that bonds people. Every professional, amateur, and educational sports team perpetuates stories of their heroes. The famous, ongoing rivalry in the National Basketball Association between the Boston Celtics and Los Angeles Lakers teams is one example. Films of the 1982–1987 champion- ship play-offs that pitted Celtics star Larry Bird against Magic Johnson of the Lakers still inspire competitive memories within and between those teams and basketball fans. Now stories of basketball legends Kobe Bryant of the Lakers and Dwyane Wade and LeBron James of the Miami Heat are added to their organizational memories and cultures.

Symbols are objects, events, or acts that represent a shared meaning among others; they are also important shapers of cultural values that, in turn, influence bonding among fol- lowers and contribute to their identification with an organization (Ornstein, 1986). Sym- bols can be a number of objects, events, or acts. Buildings, trophies, company picnics, even ceremonies are symbols. One of the more memorable, larger cultural symbols was the Saturn Corporation. Created by General Motors in the 1980s, the Saturn Corporation was able to make its own success apart from its parent and produce what became a very popular car (the Saturn). Saturn’s slogan, “A different kind of company, a different kind of car,” touted its success story outside of its parent company’s reputation and name brand (Aaker, 1994). Both the company and the car became iconic symbols in the auto industry of what a stodgy parent company could produce. When the auto market declined in the early 2000s, GM sold the company that made the Saturn; the car’s production was distrib- uted across several manufacturing sites. The Saturn was discontinued in 2010. For some, the legend of the first Saturn is a memory.

Cultures are kept alive by methods of introducing and indoctrinating new members into an organization. Organizations select and adapt newcomers into their cultures through socialization, a process in which individuals learn the expected values, norms, skills, and behaviors of an organization (Van Maanen, 1976). This process begins when the person is selected. University and college fraternities, sororities, honor societies, religious institu- tions, sports teams, and other organizations also have their methods and ceremonies of introducing newcomers into their memberships. Zappos has a very stringent hiring pro- cess. As CEO Tony Hsieh stated, “We’ve actually said no to a lot of very talented people that we know can make an immediate impact on our top or bottom line. But because we felt they weren’t culture fits, we were willing to sacrifice the short term benefits in order to protect our culture (and therefore our brand) for the long term” (2009). Those who are accepted into the 4-week Zappos training program are offered $2,000 (plus what they earned during the 4 weeks) to quit. Hsieh said, “We want to make sure that employees

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CHAPTER 3Section 3.3 Leadership and Strategic Communication

are here for more than just a paycheck. We want employees that believe in our long term vision and want to be a part of our culture. As it turns out, on average, less than 1% of people end up taking the offer” (2009).

Related to the socialization process is the concept of cultural strength, or the extent to which followers agree on the importance of values and methods of getting work done in the organization (Sorensen, 2002). Organizations benefit when members adopt and sup- port the values of their institutions. When there is consensus and congruence on orga- nizational values, members are more likely to be motivated in attaining organizational goals. Zappos has high cultural strength. The company has a strong set of values used for selecting, rewarding, and retaining high performers. That company also has high value congruency, the fit between the organization’s and followers’ values.

Taken together, these leadership and organizational factors help define and sustain cul- tures and are important to the morale and performance of organizations. Culture, as noted earlier, is one of the most important dimensions of an organization, since it embodies lead- ership values and serves to align an organization with its external environment through specific strategies while integrating people inside the organization. This can be done through communication—the topic of our next section. The two are interrelated: Com- munication is necessary to convey culture, but it can only take place if the culture allows for it to occur freely and openly. Leadership communication, in particular, is a primary means of influencing followers and stakeholders for goal attainment. In the next section we present guidelines for effective communication that leaders, followers, and anyone in a leadership position can use.

3.3 Leadership and Strategic Communication

Communication, the process of conveying information and meaning between a sender and receiver, is one of the most important competencies of leaders (Brass, Galaskiewicz, & Tsai, 2004) since it affects every aspect of leading: influencing, motivat- ing, envisioning, creating culture, developing strategy, mobilizing change, and man-

aging stakeholders. All of these require that ideas and values be communicated clearly and accurately, and it should be no surprise that studies have shown that effective communica- tion is also empirically and positively related to leadership performance (Ackoff, 2002; Lussier & Achua, 2007). Still, good communication is easier said than done: Research on 10,000 firms showed that leaders were not communicat- ing effectively (Lussier & Achua, 2007). A 2011 study commissioned by SuccessFactors, Inc. and Accenture found that “companies today are not effectively executing against strategy and the business leaders know it, with 80 percent recog- nizing that they are not doing their best to com- municate strategy through the organization, let alone execute against it” (SuccessFactors, 2011).

Effective communication is stating clearly what you want and expect of others; clearly expressing your thoughts and ideas; and maintaining a constant and precise flow of information.

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The importance of communication is obviously not limited to leaders—but note that when a leader miscommunicates, doesn’t listen effectively, or is inconsistent in his or her communications, the results are amplified and consequently potentially more harmful. Communication occurs between any number and combination of people, and everyone in the organization must communicate effectively in and between teams and with key stakeholders in order to achieve organizational goals.

We begin by defining the communication process before presenting methods of effec- tive leader—and follower—communication, as well as a type of communication called persuasion (Conger, 1998). As you read through this section, think of leaders for whom you have worked. Evaluate their communication effectiveness based on the content here. Also, take Assessment 3.1 to see how effective a communicator you are. Your score and interpretation of your results can serve as indicators of how this particular section can be helpful.

Assessment 3.1: Are You an Effective Listener?

Instructions: Go through the following questions, answering no or yes next to each. Mark each as truthfully as you can in light of your behavior in the last few meetings or social gatherings.

No Yes

1. I give attention to nonverbal clues of others when communicating ____ ____

2. I ask someone to explain or make clear what they are saying if I don’t understand ____ ____

3. I try hard to understand someone’s position and opinion when communicating ____ ____

4. Most people sense that I understand their viewpoint even if we don’t agree ____ ____

5. I try to listen to many conversations at once instead of focusing on one at a time ____ ____

6. I prefer individuals to share factual information with me and let me decide ____ ____

7. I act like I am listening when I really am not ____ ____

8. I can tell what someone will say before they even say it ____ ____

9. I answer right after someone finishes talking to me ____ ____

10. I assess what someone is saying while they’re talking ____ ____

11. I usually focus on the other person’s style while their talking, which sometimes distracts me from what they are saying

____ ____

12. I am thinking about how I will respond while someone is talking with me ____ ____

Scoring and Interpretation: According to communications experts, “No” is the correct choice to items 5, 6, 7, 8, 9, 10, 11, 12; and “Yes” is the correct choice to items 1, 2, 3, 4. Use the following suggested interpretation for self development in listening:

9-12 correct items: You evaluated yourself as an effective listener 7-8 correct items: You have some areas that need improvement in your listening skills 6 correct items: You need improvement in listening skills; your followers and co-workers may observe that you are not giving your full attention when listening to them .

Source: Adapted from The Leadership Experience. Daft, R. (2011). Mason, OH: South-Western, Cengage Learning.

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CHAPTER 3Section 3.3 Leadership and Strategic Communication

The Communication Process Defined

If communication is the process of conveying information and meaning, then effective communication is being able to do this successfully, so that both the sender and the receiver of the information are on the same page. We can state this more clearly by saying that effective communication is stating clearly what you want and expect from others, clearly expressing your thoughts and ideas, and maintaining a precise and constant flow of information. Being able to do this well comes from understanding and strategically managing the communication process, or the flow of information.

Regardless of the form or number of individuals communicating, the classic communica- tion process depicted in Figure 3.3 is the same, whether the communicators are on Yam- mer, Twitter, Skype, or instant-messaging software: A sender has a purpose that she or he develops into a message before sending it to a receiver, who decodes the meaning (Berlo, 1960). The speed and form of technology, whether video with webcams or two-way or n-way instant messaging, allows individual communicators to share some form of mean- ing that is intended to be understood by someone else. It is important to break down this process in more detail in order to understand how to avoid miscommunication and noise that garble the intended message or meaning.

A sender shown in Figure 3.3 initiates a message by encoding an idea or thought into a physical product or audible or legible form—words, film, photos, video, or typing. The message can also consist of nonverbal symbols or gestures—facial, hand, or body move- ments. The sender decides what form, or channel, to use to send the message. E-mail is an example of an electronic channel, as are Skype, Yammer, Twitter, YouTube, and instant messaging. Channels can be electronic or face-to-face, formal or informal, and more—we will discuss this topic in more detail later in the chapter. The receiver to whom the message is directed must decode (i.e., translate and interpret) the symbols in order to understand the meaning. Noise represents distortions, problems, and issues that alter the intended

Figure 3.3 Communication Process

Perceptual Screens

Receiver decodes and interprets

meaning

Sender communicates

intended meaning

Encodes Transmits Message

Responds Transmits Encodes

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CHAPTER 3Section 3.3 Leadership and Strategic Communication

meaning in the message. Noise can be perception biases or misunderstandings, informa- tion overload, confusion, misinterpreted word meaning, inferences, or just cultural differ- ences (Robbins & Judge, 2011). Getting feedback is the last part of the loop in the communi- cation process, in which the receiver or sender inquires to see if the intended and received meaning of the message were the same.

Newer Forms of Communication

As suggested before, the communication process has undergone some change. Social-net- working sites like Facebook and Twitter, desktop video, mobile phones, Skype, YouTube, and other so-called groupware (programs that facilitate collaboration among remote individuals) are becoming a dominant form of communication. Businesses are adopting these communi- cation forms because of their popularity across marketing segments, speed, convenience, and effectiveness in getting and receiving quick information. In one Skype survey, Carr reported that 20% said they use Voice over Internet Protocol calling once a week “and a slightly lower number are using desktop video that often” (2011). He noted that “less formal tools are start- ing to reach a ‘critical mass.’ A little over 40% of respondents use instant messaging at least once a week, and more than 50% do work-related SMS texting from their phones.”

In the same survey (Carr, 2011), it was found that of the video callers queried:

• 68% said they experience richer and more productive communication with col- leagues, clients, and suppliers.

• 65% said they collaborate better. • 62% said they save time. • 56% said they save money. • 69% wanted video to be available on a range of devices and locations, not just

fixed systems.

At the same time, 42% of workers surveyed complained of suffering from information overload, and 35% blamed e-mail. Forty-eight percent preferred a simpler, “unified approach to managing information,” and 57% of managers agreed with this statement (Carr, 2011). Newer forms of communication can have their drawbacks, and there is much to be learned about how to use new technology most effectively as a leader. Software and hardware manufacturer and mailstream services provider Pitney Bowes, for example, turned to social networking site Yammer for its social media needs. The platform, which launched in 2010, allows users to connect and chat within more private groups—offer- ing “all the connectivity and mutual conversation of Facebook and Twitter, but with an explicit business focus and less risk of confidential information escaping into the outside world” (Forbes, 2010). At Pitney Bowes, there were 400 Yammer users in 2010—which was 12% of their global employees. Users in the company say Yammer is a conversation tool that enables them to distribute and share knowledge and best practices in a protected way. One employee said that Yammer “is really driving collaboration throughout the busi- ness, breaking down silos and bringing everyone together. It’s instilled our people with a new sense of community, and a refreshed sense of care” (Forbes, 2010). Pitney Bowes offered three lessons it has learned in using new technology (Forbes, 2010):

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CHAPTER 3Section 3.3 Leadership and Strategic Communication

1. Be patient. Community building is a process—it doesn’t happen overnight.

2. Don’t approach community building with the idea of talking. The most value that you get out of it is from listening.

3. Reward your active participants—not in a monetary fashion. Acknowl- edge their participation, evangelize their efforts, and recognize their contribution through other channels.

How to Use the Communication Process

While leaders use contemporary forms of media, they must also give press conferences, deliver speeches, and give informal and formal talks with different stakeholders and audi- ences. But even in what may appear an informal conversation on a mobile phone, a text message, or a Skype conversation, leaders, managers, and followers may be sending stra- tegic information without realizing it. Before sending strategically important messages, leaders and followers can benefit from considering the following strategies: (1) Plan the goal and content of the message, (2) decide who should send a particular message, (3) identify the receiver, (4) select an appropriate communication channel, and (5) decide on the time for sending the message. Making the correct decisions in these areas can deter- mine whether the message is received as intended.

Planning the goal and content involves thoughtful consideration of what you want to say. Senders usually address the following questions: What is the intended goal of the message (Brass, Galaskiewicz, & Tsai, 2004)? Is it to inform, persuade, express an opin- ion, or solicit ideas? What is the intended result of the message? What is the receiver expected to feel, believe, react, respond, or do? Some leaders are surprised to learn that what they thought would be a welcome message resulted in a highly negative reaction. Egypt’s 2011 revolution—part of the so-called Arab Spring that rippled through the Arab world that year—offers an example. Before he was overthrown, Egyptian President Hosni Mubarak attempted to appease angry rioters with what he considered a calming mes- sage. He appealed to the masses as “his children and family” and tried to convince them that he was in favor of implementing their interests. After 30 years under Mubarak’s rule, however, Egyptians wanted concrete action and change: solutions to the pervasive unem- ployment, lack of a living wage, dearth of public services, and bleak career future for stu- dents and other young people. Protesters wanted a change in the old guard and expected Mubarak to announce his resignation—not patronize them. Mubarak’s “calming” speech served only to further inflame the crowds and hasten his departure from office. He was not aware of what his listeners (the audience) expected or needed.

Deciding who should send a particular message is critical because the receiver will usually react differently to different people. An organization should take into account the content of the message, the sender ’s position in the organization, the expertise and knowledge of the sender, and the audience receiving the message. If layoffs are to be announced, a CEO may want to deliver that message personally to show that he or she understands that such a decision disrupts people’s lives. In contrast, an e-mailed

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announcement of impending layoffs would seem callous and insensitive. For sensitive issues and during emotionally charged crises, the CEO or president is often the best spokesperson. When the Exxon Valdez oil tanker struck an Alaskan reef in 1989, spilling thousands of bar- rels of oil, Exxon CEO Lawrence Rawl selected a spokesperson other than him- self to initially address and follow up with the media—suggesting that the cri- sis was not important to him. The event is considered one of the worst public-rela- tions disasters in recent history. However, there are situations in which a message will be most effectively received if sent by a project manager, vice president, or team leader—for example, when the message

relates to a specialty area requiring knowledge and expertise—and the president or CEO of the company should defer to one of these individuals.

Identifying the receiver involves knowing who the receiver is, what the receiver’s needs and interests are, and whether the receiver is the right and relevant audience for whom the particular message is intended. A board chairperson at a private university announced a meeting for the entire college a few years ago. Word spread that something exciting and different might be announced. Faculty, staff, and administrators gathered in the large auditorium waiting to hear what was thought to be institution-wide news. The chairper- son moved to the podium and announced that the administration had decided to offer 30 older professors a small financial package in exchange for their agreeing to an early retire- ment plan. Disbelief, bewilderment, and dismay were sensed throughout the gathering and in hallway discussions after the meeting: wrong audience, wrong place, and wrong timing for that misplaced message.

Selecting the appropriate communication channel is suggested in a study by Lengel and Daft (1988), who showed that leaders need to match their message with the right commu- nication channel to be effective. Figure 3.4 illustrates the type of communication channel with the information richness of the message, or the amount of information that can be sent during a particular episode. Each channel has advantages and disadvantages.

The richness of the channel, Lengel and Daft stated, is influenced by the ability of the receiver to understand many cues simultaneously, handle two-way rapid communication, and establish a personal focus in the communication exchange. Face-to-face is the rich- est type of communication channel. When a message is complex with emotional content, a richer channel (face-to-face) may be more appropriate. Layoffs, firings, and rightsiz- ing are examples of when face-to-face communication may be more appropriate than a more formal, distant type of communication. If the receivers are dispersed geographically, then electronic communication or conference calling may be appropriate. If the message

In March of 1989 Exxon-Mobil CEO Lawrence Rawl decided to use a spokesperson to address and inform the media. If he would have been the spokesperson the worst public relations disaster in recent history might have been avoided.

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CHAPTER 3Section 3.3 Leadership and Strategic Communication

is a routine, straightforward report for which no immediate feedback is required, then a memo, text message, or e-mail will work.

Since electronic communication is increasingly replacing the print medium, it is easier to confuse matching communication channels with particular messages. Blogs, instant messaging, and Twitter are becoming preferred forms of communicating faster and more inexpensively (Nasaw, 2003). Facebook is also developing into a connected platform of communication that companies are starting to use for nonconfidential information. The point here is that leaders’ communication effectiveness depends in large part on match- ing the type of channel (formal report, memo, e-mail, phone, face-to-face) with the type of message (low richness and emotional content with high richness and emotional content).

Finally, selecting the right time to send messages matters. Messages that carry highly emo- tional, sensitive content should not only be delivered through the right communication channel but should be timed so that receivers can understand and discuss or respond. For example, it is not recommended that layoffs be delivered through e-mail, Twitter, or instant messaging, or at times that are inconvenient for people to receive such news. While layoffs may be necessary for the survival of a business unit or organization, how, when, and by whom the news is delivered sometimes has as much impact as the content. Consideration for the receiver is an important element with all types of communication. Leadership communication affects not only those who are laid off but those who stay.

Figure 3.4 Communication Channels

Source: Based on Leadership Experience (5th ed., p. 279), by R. Daft, 2011, Mason, OH: South-Western, Cengage Learning. Note: As technology continues to evolve, different types of channels will need to be added to a figure like this.

More research on these newer forms of communication (i.e. Twitter, Facebook, Google+, etc.) will allow for better and more accurate placement along the channel-richness continuum.

Memos, letters Skype

Telephone

Disadvantages Impersonal One-way Slow feedback

Advantages Provides record Premeditated Easily disseminated

Low channel richness

Disadvantages No record Spontaneous Dissemination hard

Advantages Personal Two-way Fast feedback

High channel richness

Formal report

Blogs

Email, text messaging, internet

Twitter

Face to face verbal

Face to face verbal

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CHAPTER 3Section 3.4 Leaders as Champions of Strategic Communication

3.4 Leaders as Champions of Strategic Communication

Leaders are the face, voice, and role models of their companies. What they say, to whom, and how is important, and their ability to change organizations and cultures, particu- larly during times of crisis and uncertainty, is significant. They are and must be, in effect, champions of strategic communication. As strategic communicators (Clampitt, Berk & Wil- liams, 2002), leaders must communicate from a “big picture,” systems perspective (as dis- cussed in the first part of this chapter): They must always be conscious of upholding and maintaining the vision, mission, values, and strategy of the entire organization when they communicate. They must also look to inspire, build trust, unite, and mobilize followers around a common identity and purpose of the organization.

Tactical communicators, on the other hand, are more concerned with transactional types of exchanges that involve implementation and hands-on details and tactics. For exam- ple, managers, as tactical communicators, spend over 80% of each day communicating as “information processors” (Mintzberg, 1973). As transactional managers, they control, schedule, correct, and direct daily processes, procedures, and people around specific tasks, projects, and programs. They spend 48 minutes of every hour on the phone, in meetings, and communicating with teams, suppliers, and vendors to implement details of organizational objectives. Of course, both strategic and tactical communication are nec- essary for organizational goal attainment. It is important here, however, to distinguish between these types, since strategic leadership communication sets the overall tone and context for organizational exchanges.

Strategic leadership conversations differ from transactional, tactical discussions. They cre- ate an open climate for dialogue, emphasize strategic topics to provide clarity, focus on the customer’s needs and wants, share responsibility with followers, and involve constant and consistent feedback (Young & Post, 1993).

Create an Open Climate for Dialogue

Leaders engage in strategic conversations by creating an open climate that is two-way, not top-down: Communication flows and is not constrained by status of position titles. By asking the right questions, leaders discover what people feel and think about issues and opportunities. There are two types of questions leaders can ask: leader centered and fol- lower centered (Spitzer & Evans, 1997). Leader-centered questions seek to gain follower knowledge and expertise as well as feelings and thoughts about different topics relevant to the goals, strategies, and initiatives of the organization. Leaders also build trust and confidence in followers by asking these types of questions with authenticity, concern, and interest (Newberry, 2003). Follower-centered questions focus on developing new ideas, expanding awareness, and stimulating critical thinking. Similarly, with these types of questions, leaders ask in ways that show interest in followers’ ideas and opinions.

Active listening is another classic communication technique that strategic leaders use to gain knowledge and build relationships with followers. In active listening, the listener’s focus and attention is on understanding, interpreting, assessing, and showing the sender that what was said is understood. This sounds easier in theory than in practice. Active listening is not passive; after absorbing what the speaker is saying without interrupting,

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CHAPTER 3Section 3.4 Leaders as Champions of Strategic Communication

distracting, or indicating disinterest, the listener asks questions for clarification if neces- sary. Eye contact and nonverbal body language show that the listener is fully engaged and interested in the messenger as well as the message. Poor listeners, on the other hand, do not show interest through eye contact and attentive body language, listen for facts and not emotion, and usually daydream, interrupt, and respond with judgmental or argumenta- tive opinions (Morgan & Baker, 1985; Okum, 1975). Poor listening and communication habits foster closed cultural climates and emotional disconnection between leaders and followers. Strategic conversations cannot thrive without active listening skills.

Emphasize Strategic Topics

Effective leaders use strategic conversations and dialogue to understand issues that followers and stakeholders have about certain strategic topics and to gain acceptance on these topics. Leaders rely on discussion to clarify controversial topics and dialogue to reach agreement and gain acceptance. In dialogue, in contrast to discussion, people share their positions on a topic, gain understanding of each other and the topic, and reach common ground. Discussion, on the other hand, involves stating positions and opinions based on facts, logic, and beliefs and may not lead to agreement between two parties. While dialogue certainly involves facts, logic, and beliefs, it differs from discus- sion in that “people usually hold relatively fixed positions and argue in favour of their views as they try to convince others to change. At best this may produce agreement or compromise, but it does not give rise to anything creative” (Bohm & Peat, 1987, p. 241). David Bohm further suggested that “the purpose of dialogue is to reveal the incoherence in our thought. In so doing it becomes possible to discover or re-establish a ‘genuine and creative collective consciousness’”(Bohm, Factor & Garrett, 1991). The process of dialogue is a process of “awakening”; it entails a free flow of meaning among all the participants (Smith, 2001).

Clarification of the topic may be gained through discussion, but mind-sets may not be changed (Schein, 1993). Dialogue requires active listening skills, an open mind, and the ability to bring people of differing opinions together on controversial topics. Leaders in organizational cultures that are built on trust have a higher probability of leading change through dialogue than those in distrusting settings.

Focus on the Customer

Clampitt et al. (2002) found that leaders and managers who were successful in dealing with change included the following mantra in their strategic conversations: “Keep close to the customer.” The researchers concluded that successful companies’ communications programs, in their interactions with employees who dealt directly with customers, framed certain types of questions:

What does the customer want to know? When do they prefer to receive information? In what form (at home, electronic mail, graphic display) do they want to receive it? We noticed that in these companies there was a clear trend toward insisting that employee communications staff monitor their customers and audiences, and understand the organizational issues, job

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CHAPTER 3Section 3.4 Leaders as Champions of Strategic Communication

demands, and other communications efforts that affect the customers. In the best companies, communications programs serve the audience’s needs and, as a result, improve the organization’s capacity for dealing with change.

Share Responsibility

An underlying theme of effective strategic conversations is that leaders share responsibility with followers. Whether good or bad news occurs, followers want their leaders and manag- ers to inform them, share with them, and explain such happenings to them. A major theme from a study on leaders as communication champions was that “people want to hear news from their boss, not from their peers or from the grapevine” (Clampitt et al., 2002).

Give and Receive Feedback

Leaders give and receive feedback more easily as part of a shared communication pro- cess in organizations where trust and an open climate are cultural traits. Both lead- ers and followers must give and receive feedback in their mutual influencing process toward organizational goal attainment. Feedback consists of letting others know in a straightforward manner what you think of them, how well they have performed, and if they have met your needs and expectations. We note that giving and receiving construc- tive feedback, especially if it is negative in content, is not easy—and probably never will be. In addition to the guidelines offered here, it is important to separate emotions from the message. Focusing on the goal of the feedback and importance of communi- cating the message involves taking an objective perspective. Also, followers who have less power than the leaders and supervisors to whom they report have an added bur- den in giving feedback—especially negative feedback. Again, in addition to the follow- ing guidelines, ensuring that your message is true, verifiable, and necessary to deliver can provide assurance that how it is delivered is often as important as what is being delivered. Guidelines for giving honest feedback include the following (Bolton, 1979):

1. Check your motivations before giving feedback. Make sure your reasons are clear and justifiable.

2. Check your frame of mind. Being angry, tired, or uncertain interferes with giving objective feedback.

3. Ensure that your feedback is purposed to help the receiver.

4. Offer feedback directly to the receiver, with genuine feelings.

5. Be descriptive, not evaluative. Omit words like should, must, and ought.

6. Be specific instead of general; offer clear, recent examples.

7. Choose a time when the receiver and you are ready.

Feedback consists of letting others know what you think of them, how well they have performed, and if they have met your needs and expectations.

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CHAPTER 3Section 3.5 Leadership Skills in Persuasion

8. Check the validity of your intended feedback with others who are reliable and will keep your communication confidential. Be sure you are communicating facts, not gossip.

9. Include only areas that the recipient has control over. 10. Do not share more than the receiver can handle emotionally or factually.

Confident leaders will often ask followers as well as peers as part of giving feedback, “How am I doing? What do I need to be doing differently? What needs do you have that aren’t being met by the organization?”

Guidelines for receiving honest feedback include the following (Athos & Gabarro, 1978):

1. Avoid being defensive. Take a neutral, objective view that will facilitate the sender’s offering you unbiased information.

2. To ensure that you understand the feedback, summarize what you heard and ask for clarification in an understanding, nonjudgmental way.

3. Share your feelings about specific behaviors at issue in order to validate the information, feelings, and understanding of the subject.

4. Remember that you have the right to evaluate and validate what you hear, to decide what you believe about the feedback, and to decide if you feel that it is personally and professionally worth the effort to change.

Each of these characteristics of strategic conversations could also be termed leadership com- munication skills: ways that leaders can ensure they are effectively conveying the information they need to convey and receiving the information they need to receive. In the last section of this chapter, we will turn to another essential leadership communication skill: persuasion.

3.5 Leadership Skills in Persuasion

Persuasion is commonly defined as the act of convincing someone to believe or do something; it uses communication to achieve a goal. Leaders use persuasion as a form of influence to get work done through other people. Even in high-performance cultures, leaders still have to influence and persuade followers. It is a fundamental leadership com- petency. Jay Conger, an expert on leadership, wrote:

Effective persuasion is a difficult and time-consuming proposition, but it may also be more powerful than the command-and-control managerial model it succeeds. As AlliedSignal’s CEO Lawrence Bossidy said . . . , “The day when you could yell and scream and beat people into good perfor- mance is over. Today you have to appeal to them by helping them see how they can get from here to there, by establishing some credibility, and by giving them some reason and help to get there. Do all those things, and they’ll knock down doors.” In essence, he is describing persuasion—now more than ever, the language of business leadership. (Conger, 1998, p. 86)

If persuasion is the language of business leadership, as Conger put it, then it is critical that leaders know how to perform it effectively. We will examine the four steps of persuasion before examining the common pitfalls.

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CHAPTER 3Section 3.5 Leadership Skills in Persuasion

Four Steps of Persuasion

The four steps of persuasion are (1) establishing credibility, (2) building goals from a com- mon frame, (3) presenting a compelling position, and (4) connecting emotionally (Conger, 1998). Establishing credibility involves expertise and relationships: The leader—or who- ever is doing the persuading—must possess the relevant knowledge as well as a trust- ing relationship with whomever he or she is trying to persuade. For example, suppose you wanted an honest assessment of your health. You would more likely be inclined to believe a longtime family doctor than some stranger at the ballpark. In taking the first steps to establish their credibility, leaders must make an honest assessment of how oth- ers perceive their knowledge and of the strength of their relationships with those whom they will try to persuade. Leaders can also ask to what extent their audience will perceive them as trustworthy and helpful.

However, credibility is not enough to persuade others. Leaders also need to build goals from a common ground, or find an area that those being persuaded can agree on. People need to know and be shown how they will personally benefit from the offer to be made. Knowing their audience will help leaders find common ground on the proposal that is the subject of persuasion. To do this, leaders need to talk with the people whom they will engage—test the waters—and find out what they are thinking and what they want. If leaders cannot see, feel, or experience any common ground, they should revisit their proposal.

Leaders who can present a compelling position after they have established credibility and framed a common ground have a higher probability of succeeding. Winning others over involves the use of lively metaphors, stories, numbers, and analogies that paint a vivid picture and pave the way for a compelling, tangible description of the persuader’s offer. Martin Luther King Jr.’s 1963 “I Have a Dream” speech painted lively and compelling images of what life would be like after segregation.

Finally, effective leaders connect emotionally with their followers or others whom they are persuading. They have to show their emotional commitment to their position in a reason- able and clearheaded way. People are persuaded not only in their heads but also in their hearts, especially if leaders are asking for significant time, energy, or effort from those who are being persuaded.

Four Traps That Lead to Persuasion Failure

Leaders fail at effective persuasion when they too often fall into one or more of the fall- ing traps. First, leaders who try to make their case with a hard, upfront sell more often than not fail, according to Conger (1998), because they show their logic and tactics at the outset, thus giving their potential opponents reasons to attack. It is more effective to start a dialogue or conversation before trying to convince the person to be persuaded or back the person into a corner.

Second, leaders who resist compromise at the outset and see it as a weakness usually com- municate inflexibility and stubbornness. Persuasion is often a two-way path that involves some give and take, listening, and accepting parts of what others have to offer into the proposed perspective.

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CHAPTER 3Section 3.5 Leadership Skills in Persuasion

Third, some leaders believe that their arguments and ideas are the greatest and that the secret of persuasion lies in sharing these ideas with others. Arguments are important, but they are, as Conger noted, only part of the equation; persuasion also depends on the four steps mentioned before.

Finally, when leaders assume that they have one-shot at getting others to buy into a proposition, they are again wrong. Persuasion, said Conger, is a process. It can take time. Difficulties are experienced. Listening is required. Developing and redeveloping a posi- tion that is tested and compromised before being accepted is to be expected. Through the

process, the results may be worth the time and energy given.

Successful persuasion, then, involves all of the skills and competencies required for effective communication. Leaders must plan their messages, know their audi- ences, actively listen, give and receive feedback, have strategic conversations, create an open environment for dialogue, use the right communication channels for the type of messages they convey, and establish credibility with those whom they are persuading. Effective communi- cation is an integral part of who leaders are and what they do: that is, as we dis- cussed in the Chapter 1, influencing fol- lowers to achieve common goals through shared purposes.

The four traps that lead to persuasion failure are the hard, upfront sell, resisting compro- mise, failing to present a compelling position, and failing to connect emotionally.

Take the Lead Leadership and Strategic Communication

You’ve just been recruited to lead an organization’s sales and marketing department. You are leaving behind your old company, where you became famous for elevating their brand to new heights in your 15-year career. However, leadership did not support the challenge you desired in new product devel- opment, so you determined your best next career move would be outside the organization.

You arrive at your new organization and find the sales and marketing department runs like a well-oiled machine. Instead of being broken, as at your prior organization, this new organization has a much bet- ter structure, processes for performing business, and what appears to be a highly qualified and eager staff ready and willing to forge ahead.

Considering your leadership and strategic communication, how will you:

1. Immediately develop ties with your new sales and marketing community? 2. Disseminate your thoughts within the department? 3. Identify the best forum for communicating effectively? 4. Ensure that members of the department are being heard?

See page 228 for possible answers.

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CHAPTER 3Section 3.6 Leading Cross-Cultural, Internationally Diverse Workforces

3.6 Leading Cross-Cultural, Internationally Diverse Workforces

In addition to developing organizational culture and communicating strategically, leaders in public and private sector organizations must also ensure that organization members from different cultures, backgrounds, races, and experiences work cohesively together to achieve organizational goals. This requires that leaders understand what makes individuals different from one another and how those differences become relevant in the workplace. Leadership skills and experience in managing various types of people and operations are particularly in demand today (Pitts, 2007), due to changing demo- graphics and perspectives as well as the rise of globalization. Leaders are now often called to actively promote workforce diversity, which refers to the variety of people within an employee base and can include background, education, language skills, personality, sex- ual orientation, and work roles, among other characteristics.

For organizational leaders, diversity—once implying separateness—now intentionally emphasizes inclusion. The United States has traditionally been considered a “melting pot,” in which a multitude of cultures meld together to create one. However, one of the implications of a melting pot is the suggestion that to get ahead in America, individuals from different cultures have to lose or disguise their identities, accents, traditions, and values in order to assimilate, or integrate, into mainstream American culture (Lussier & Achua, 2007).

While this viewpoint still has value, more contemporary thinking includes the description of the United States as a “salad bowl”—a multicultural society in which being different is seen not as a liability but as a potential asset. People from different cultural backgrounds can be effectively assimilated into American culture and contribute their talents. Music, sports, entertainment, fashion, and other business and social domains illustrate how dif- ferent professionals’ cultural styles and ideas add value, creativity, and richness to their organizations and society. Leaders’ responsibility in this new reality is to be inclusive. As Reeves wrote:

Inclusiveness is about an inviting environment for talent from all back- grounds as well as the equal opportunity for each person to succeed in a way that works for them. Inclusiveness makes room, not for different peo- ple to take a shot at the same definition of success, but for different people to actually create different definitions of success (Fujimoto & Hartel, 2010).

With this in mind, we will argue that inclusiveness is a leader’s imperative—and can result in success stories for the self, followers, and organization. We begin by exploring the factors affecting diversity today, before discussing the advantages of inclusiveness, leaders’ roles in managing workforce diversity, and the subtleties of multiculturalism in the workplace.

Changing Workforce Demographics and Perspectives

Why should leaders and followers include people who are different than they are? Two major reasons: First, the U.S. population is changing, which affects workforce demo- graphics. Second, globalization, or the increasing integration of regional and national

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CHAPTER 3Section 3.6 Leading Cross-Cultural, Internationally Diverse Workforces

economies, is changing the way the world does business. “Business as usual” is not a long-term option anymore.

The National Center for Public Policy and Higher Education describes the U.S. workforce—gener- ally those between the ages of 25 to 64—as “in the midst of a sweeping demographic transforma- tion.” The nonprofit projects that the white por- tion of the working-age population will decline from 82% to 63% from 1980 to 2020, while the eth- nic-minority portion of the workforce will double to almost 40%. Specifically, the Hispanic/Latino working-age population is projected to almost tri- ple to 17%. White men born in the United States are now less than half of the workforce (The National Center for Public Policy and Higher Education, 2008; Weiss, 2009).

The working-age population is also getting older: The number of workers 55 years and older is expected to increase by 80% to over 33 mil- lion between 2004 and 2020 (Administration on Aging, 2010). Finally, more women are entering the workplace: Women with children under 6 years of age are the most rapidly increasing segment of the workforce. Leaders must rec- ognize these various demographic shifts and ensure that their approaches and policies do not marginalize the average worker.

The second factor, globalization, can be seen as the metaphorical shrinking of the world and erasure of borders, in large part due to advances in technology and travel. The result is a mixing of cultures, business practices, and people in workforces. Many people are now generally more conscious of the world as a whole, and foods and products from various countries can be found in your local store. Companies are now able to conduct business on a global scale, employing people all over the world through outsourcing and recruit- ing talent. Professionals can fly from country to country for meetings or simply hold a video conference call. The U.S. workforce is affected at all levels, as people of different educational backgrounds, generations, and cultures interact. For example, an increasing number of CEOs are from countries other than the one where their company is headquar- tered (See Justin, 2004). As one researcher said, “More than ever, people have to interact and communicate with others who come from diverse backgrounds” (Tan, n.d.).

Perspectives on diversity are also changing, and leaders must recognize this to remain current and relevant. Specialty glass and ceramics manufacturer Corning Inc. is among the companies that demonstrate a commitment to contemporary diversity. As part of an overall inclusiveness program, Corning developed models to guide and instruct all employees in new ways of thinking about diversity. Since the company is global, Corn- ing’s leaders wanted all employees to know the value of working with people who are culturally different and who bring innovative ways of thinking to their work. The tradi- tional diversity model in Figure 3.5 shows how the company defined diversity in terms

PepsiCO, Inc. CEO Indra Nooyi is the first woman and Indian chief executive in the company’s 41 year old history. She believes in “people power” and diversity.

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CHAPTER 3Section 3.6 Leading Cross-Cultural, Internationally Diverse Workforces

of race, gender, age, disability, lifestyle, and pay level before its cultural transformation. The inclusive model reflects the actual changes in Corning’s workforce, viewing diver- sity more broadly to encompass differences in personality, nationality, position, military experience, work style, language, parental background and influences, income, compe- tency, and function. Oshiotse and O’Leary stated that

Corning has learned from years of pushing the boundaries of scientific exploration that innovation occurs at the intersection of people’s differ- ences. . . . Corning’s vision of an inclusive culture recognizes a broader spectrum of differences that influence how each member of the technical community approaches work, interacts with others, derives satisfaction, deals with conflict—in other words, determines who they are as people in the workplace. (2007)

Corning encourages individuals to be open to and respectful of others’ differences as a starting point for innovation and performance; this philosophy is a key part of its organi- zational culture. A broader perspective of inclusiveness opens individuals to both social and professional relationships, eliminates any feelings of marginalization, and engages the full talents and capabilities of followers—just some of the advantages of diversity.

The Value of Diversity

Diversity is not simply a requirement of the times; it also comes with some distinct advan- tages. According to researchers, diversity (1) creates a socially responsible culture and climate and enhances an organization’s reputation; (2) helps recruit and retain talented

Figure 3.5 Traditional Versus Contemporary Diversity Perspectives

From “Corning Creates an Inclusive Culture to Drive Technology Innovation and Performance,” by A. Oshiotse and R. O’Leary, 2007, Global Business and Organizational Excellence, 26(3), p. 12. Reprinted by permission.

Race

Race

Gender

Gender

Lifestyle

Lifestyle

Pay Level

Pay Level

Disability

Age

Diversity Diversity/ Inclusion

Function

Compe- tency

Income Parent

Language

Work Style

Military Exper- ience

Position

Nationality

Person- ality

InclusiveTraditional

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CHAPTER 3Section 3.6 Leading Cross-Cultural, Internationally Diverse Workforces

people; (3) can enhance performance; (4) can provide creative marketing advantage and improve problem-solving and decision-making capability; (5) can produce cost savings.

Creating a Socially Responsible Culture and Enhancing Reputation Leaders who demonstrate that they value diversity and inclusion send a message about the culture, values, and reputation of the organization: namely, that fairness counts, the organization respects every individual regardless of differences, and the organization goes beyond the letter of the law in valuing its workforce. Robertson and Park’s (2006) study of 100 firms showed a positive relationship between diversity reputation and book- to-market equity. They concluded that “Our analyses suggest that economic benefits gen- erated from diversity reputation may primarily derive from capital rather than product markets. Further, firm performance declines with increases in the representation of racial minorities in leadership up to a point, beyond which further increases in diversity are associated with increases in performance.” (Roberson and Park, 3). While diversity does not solve all problems for firms or promise effectiveness, we can say that that diversit can count in many ways for firms, including performance.

Helping Recruit and Retain Talented People Talented people are attracted to companies that have the best reputations for valuing their employees. Fortune magazine publishes an annual list of the 100 best companies to work for. Human-resources recruiters also focus on diversity when recruiting. “There is some evidence that minority job seekers tend to look for companies with a proven diversity record” (Lussier & Achua, 2007).

Enhancing Performance Based on the research of MIT Professor Thomas Kochan, a firm’s performance can be enhanced when the firm integrates diversity with its strategy, cultivates an organizational culture that supports inclusiveness, and provides needed training (Dubrin, 2011; Hansen, 2003).

Company employees not only work together better but also are better equipped to tap into one another’s strengths. Training of the entire workforce is needed to introduce and explain the advantages of inclusive policies and programs. For many older and even younger employees, learning to work with people who are different from them can be challenging. Organization-wide diversity and inclusion training programs also send the message that the leaders and culture support these policies and programs.

Providing a Creative Marketing Advantage Diversity can serve as a marketing advantage if a company’s workforce reflects and relates to the diversity of its customers. Multicultural workforces and decision makers can under- stand the needs, tastes, and buying habits of a matching multicultural customer base (Yu, 2002). For instance, Maria Elena Lagomasino, an asset manager with Cuban roots and a long career in private banking, has designed her firm’s website (http://www.genspring.

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CHAPTER 3Section 3.7 Inclusiveness: Leaders’ Moral and Legal Imperative

com) to translate flawlessly into Spanish, which is bound to appeal to a Hispanic clientele. Increased market share, produc- tivity, and innovation are a result of hav- ing an inclusive, globally diverse cultural workforce.

Producing Cost Savings Organizations that value employees and treat them fairly and inclusively can expe- rience lower levels of job dissatisfaction, absenteeism, and turnover, especially among minority members who have prob- lems fitting into exclusive, closed cultures. Absenteeism and turnover often result in

a less productive workforce and divert resources by demanding a continual retraining of employees. Also, many large, notable firms have paid costly settlements and judgments for discrimination against women, minorities, age groups, and people with physical dis- abilities in policies, practices, and behaviors. These firms include FedEx, Mitsubishi, EMC Corporation, eBay, Bayer, and Abercrombie and Fitch, to name only a few.

Despite the benefits listed here, an inclusive diversity program is only beneficial if it is effectively managed. Increased conflict among members, especially in teams, can occur when people are not collaboratively led and integrated (Klein & Harrison, 2007).

3.7 Inclusiveness: Leaders’ Moral and Legal Imperative

As we have seen, there are some compelling reasons for inclusiveness: It acknowledges the reality of our world; it can give an organization a creative and financial advan- tage; and it is a moral obligation for leaders interested in fairness and social responsibility. Inclusiveness is also a legal issue: The law forbids discrimination, or actions, treatment, or consideration toward others based on class or category rather than individual merit. Numerous executive orders and regulatory guidelines require that all people be given an equal opportunity to be employed, regardless of age, race, gender, disability, sexual orien- tation, and other classifications.

In a perfect world, societies and organizations would be inclusive and diverse. However, that is not the case, and the fact that such laws are required is proof that discrimination and inequality persist, even outside the United States. Discrimination is often a result of ethno- centrism, prejudice, and stereotypes. Ethnocentrism is the belief that one’s group or culture is inherently superior to other groups and cultures. This belief leads to closed-mindedness and homogeneous cultures with the same values, beliefs, norms, and expected behaviors and other characteristics. Such mind-sets and cultures exclude others who are different. Preju- dice is a preconceived opinion or adverse feeling that is not based on reason or experience

Diversity can serve as a marketing advantage if a company’s workforce reflects and relates to the diversity of its customers.

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CHAPTER 3Section 3.7 Inclusiveness: Leaders’ Moral and Legal Imperative

Prejudices often lead to stereotypes, which are oversimplified, irrational generalizations about groups or classes of people that are often negative and usually untrue. When fol- lowers and leaders act and communicate from their prejudices and stereotypes about par- ticular individuals or groups, discrimination occurs.

Scholars and practitioners agree that overcoming negative stereotyping and discrimina- tion in the workplace must start at the top with leaders’ incorporating inclusive policies in the mission, values, strategy, and culture of the organization (Hansen, 2003). Presidents and CEOs must champion and model the cause and value of inclusiveness in the organi- zation (Meisinger, 2008). They too must be mindful of subtle prejudicial stereotyping and its destructive effects in their own thinking and perception as well as that of other orga- nizational members. Like most people, leaders are not uniformly inclusive or culturally aware, and arriving at such an awareness can take time.

Stages of Intercultural Awareness: Toward Inclusive Leadership

Leaders differ in their awareness, cultural intelligence, and sensitivity to diversity. Dr. Milton Bennett’s framework (1986, 1993) shows six stages on a continuum of individual awareness and actions toward cultural diversity. Figure 3.6 illustrates one version of that framework.

The continuum moves from the first stage, where leaders—and followers—are resistant and defensive about diversity, to the last stage, where they are aware and fully accepting of people with differences. At the first stage, individuals have a low awareness of cultural differences and feel threatened by and isolated from people from minorities and inter- national people who are different from them. An “us versus them” ethnocentric attitude predominates and culturally different people are seen as a problem to be avoided. Leaders offer little to no help in developing a culture or programs to integrate people with differ- ences into the organization.

At the second stage, people start to minimize differences and begin to see similarities in others. Their own culture is still viewed as the most important, and culturally differ- ent people are viewed in a romantic, trivialized light. Leaders still do not take action to actively integrate and welcome members who are culturally different.

At the third stage, individuals accept differences in others and believe that their culture is not unique or different. They show curiosity and respect toward but not agreement with all cultural differences. Leaders at this stage recognize that people from minorities, people of different races and genders, and people with disabilities have a place in and role to play in organizations. Talented minority employees may be sought out. Diversity training programs begin to evolve (Daft, 2011).

At the fourth stage, individuals change from an ethnocentric to an ethnorelative mind-set and way of thinking: They understand that their culture and worldview is not the only or even the best one, and they feel comfortable relating to different people from their per- spectives and ways of thinking. Leaders commit to inclusiveness programs and actively recruit minorities, building programs to help people adapt to their working environment.

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CHAPTER 3Section 3.7 Inclusiveness: Leaders’ Moral and Legal Imperative

At the fifth stage, the contemporary inclusive leader emerges. Women, people from ethnic minorities, and people from different cultures take leadership roles, becoming leaders and board members. The fifth stage is a worthy goal toward which many organizations are striving but at which they have not yet arrived.

Leadership Initiatives for Achieving Inclusiveness

Inclusiveness begins with the leader, who leads by example by treating others inclusively and cultivating a culture supportive of diversity. Top-level leaders must be committed to inclusion policies and practices, embedding them in the mission, values, and strategies of the organization. Leaders must, for example, actually use inclusive terms and language in mission, values, and policy statements. Otherwise, such initiatives become superficial and ineffective (Campbell, 2003); that is, employees notice that leaders who do not “walk the talk” and say what they mean are not serious about such programs as inclusiveness. Other necessary ingredients to achieving full organizational inclusiveness include implanting a diversity-supportive culture and diversity awareness training for employees and leader- ship education (“Diversity or Diversion?” 2002).

Figure 3.6 Leadership Stages of Intercultural and Diversity Awareness

Source: Based on “A Developmental Approach to Training for Intercultural Sensitivity,” by M. Bennett, 1986, International Journal of Intercultural Relations, 10(2), pp. 179–196.

Integration Adopts multicultural worldview. Able to deal with own cultural differences. Adapts inclusive thinking and behaviors.

Adaptation Accepts cultural differences from others’ perspective. Able to change behavior to communicate with others.

Acceptance Develops curiosity and respect, not agreement, toward cultural differences. Accepts one’s culture as one among many.

Minimizing Differences Perceives own culture as universal. Trivializes and/or romanticizes cultural differences. Emphasizes similarities among everyone.

Resistance Avoids and resists other cultural differences. Feels threatened and isolates self with ‘us’ vs. ‘them’ critical attitude.

Low Awareness Level

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High Awareness Level

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CHAPTER 3Section 3.7 Inclusiveness: Leaders’ Moral and Legal Imperative

Concrete initiatives for achieving inclusiveness include the following:

1. Holding managers accountable (Dubrin, 2011). Inclusiveness policies that are not specific and cannot be rewarded, or have rewards held back, do not get imple- mented. Wal-Mart holds managers accountable for meeting specific, measurable diversity objectives and goals. Their bonuses are reduced if such goals are not met. The company recently hired a global chief diversity officer, who will join the execu- tive team.

2. Including diversity among organizational leaders. PepsiCo is among the companies that include minority executives and managers as part of the extended leadership team. Indian-born CEO Indra Nooyi is the first woman and first Indian to be CEO in PepsiCo’s 41-year history. She pushes for “people power” and diversity. She has said, “I am everything that this company has stood for in diversity and inclusion; it has all come together with me” (Bullock, 2010). Having Nooyi as a CEO sends a signal that PepsiCo values inclusiveness enough to have the top leader be an example.

3. Measuring diversity in department and business-unit goals and objectives. Wal- Mart, again, is among the companies that includes measurable diversity targets in its goals and objectives for managers

4. Creating minority recruitment, retention, and mentoring programs. Diversity- Inc is an organization that annually recognizes firms in a “Top 50 Companies for Diversity” (DiversityInc, 2011). The firms recognized must have one or more of the program elements of minority recruitment, retention, and mentoring programs, as well as some of the other inclusion factors we have discussed. Some of those compa- nies include AT&T, Verizon, Allstate, and PricewaterhouseCoopers. Kraft Foods, one of the top 10 companies in this list, hosts 10 employee resource groups that focus primarily on recruitment, mentoring, and marketing. Based on their most recent fig- ures, the company has 60% of its employ- ees, and 70% of managers, participating in the mentoring program.

5. Implementing organization-wide diver- sity-awareness training programs. Leaders must introduce and integrate inclusive- ness training and initiatives throughout the organization in order for cross-cultural integration to succeed. All 50 companies on the DiversityInc list have diversity- awareness training and mentoring programs.

Inclusiveness, however, is not necessarily a clear- cut subject. A leader must make strategic deci- sions based on fairness, social responsibility, legal

Since workforces are becoming global understanding teams and individuals with different national values requires multicultural leadership competencies.

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CHAPTER 3Section 3.8 Cross-Cultural Value Differences and Diversity

obligations, and practicality. Dubrin (2010) noted that a leader who chose to hire five developmentally disabled unemployed people “would be acting in a socially responsible manner because hiring these people would transfer responsibility for their economic wel- fare from the state or private charity to the employer.” However, he also noted that “some would argue that unless hiring these people is cost effective, the company is neglecting its responsibility to shareholders.”

3.8 Cross-Cultural Value Differences and Diversity

It has already been suggested that understanding different cultures is an important aspect of organizational diversity and inclusiveness. Workforces are becoming more global in membership and assignments, so leaders must be able to understand how culture affects the followers’ motivations and habits as well as what multicultural leadership competen- cies are required to influence and motivate these followers.

National culture is based on values and norms (social rules and guidelines) that influence and guide people to control their behavior. Values influence our ethics (what we think is right and wrong), our decisions, and the behaviors we consider appropriate. Values also influence relationships between leaders and followers, since relationships are based on shared values. Values also influence and define the norms that stipulate acceptable behaviors for achieving organizational goals, and they affect the way individuals interact as leaders and followers.

Researchers have spent considerable time identifying the various value orientations of dif- ferent cultures, to understand how to best influence and motivate multicultural followers.

Take the Lead Leading Diverse Workforces

You are the leader of an IT department in a global organization. With offices on every continent report- ing to you, you are challenged to get work accomplished synchronously regardless of a reporting group’s geographic location.

In addition to time-zone challenges, you also have to bridge the many cultural gaps present in your internationally diverse workforce. While you believe you have a good relationship with your leadership team in place in each location, you’ve just been presented with a new project that will task the organi- zation like never before. The board of directors and the organization as a whole are looking at you and your department to lead them with technology support to increase efficiencies into the future.

Consider your role as a leader of this cross-cultural, internationally diverse workforce in answering the following:

1. How will you ensure that your message is being delivered effectively across the entire department? 2. What will you do to offset any cultural insensitivities that may arise? 3. How can you leverage the diverse workforce you lead in this new initiative? 4. How will you avoid a “one size fits all” approach to leading?

See page 225 for possible answers.

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CHAPTER 3Section 3.8 Cross-Cultural Value Differences and Diversity

We will examine the dimensions elucidated by Geert Hofstede’s work and the GLOBE study before singling out some key competencies for leading a multicultural group. Leaders—as well as followers—can use these dimensions as a starting point for understanding others. An individual who struggles when working alone may be from a collectivist society in which group and team work is more motivating. Another individual who acts overly aggressive and assertive when problem solving or communicating may simply be acting out typical behavior in his or her culture. As you read, consider how your national or cultural values influence your attitudes and behaviors. At the same time, however, these studies are gen- eralizations rather than rules. Not every individual follows his or her described cultural values. Fiske (2002) noted that “value trumping” must also be kept in mind—that is, indi- viduals in specific contexts may use values that differ from those in their country cultures.

Hofstede’s Five Cultural Dimensions

Geert Hofstede’s pioneering study on national cultural values of over 100,000 IBM employees in over 50 countries is useful for understanding individual cultural differ- ences across countries (1980, 2001). Each of Hofstede’s five cultural dimensions defines, in part, an individual’s identity through his or her national country values and norms. The dimensions should be viewed on a continuum: individualism and collectivism, high and low uncertainty avoidance, high and low power distance, long-term and short-term time orientation, and masculinity and femininity.

Individualism and Collectivism This dimension refers to the way members of a society view themselves and their values. A person from a society that is high in individualism relies on independence of the self, not a group or collective, as his or her primary reference. These members are motivated by individual incentives. Members from a collectivist society, on the other hand, see them- selves as part of a group, extended family, ethnic group, or organization. Their primary values are oriented toward a group perspective and they are motivated by group incen- tives. Canada, the United States, and Great Britain are individualistic cultures; Mexico, Greece and Japan are collectivistic cultures.

Japan’s national culture may be moving from collectivism to individualism because of a declining economy and the need for self-reliance. Many of Japan’s corporate practices have changed. Lifetime employment has given way to corporate layoffs and job insecurity (Lussier & Achua, 2007; Pothukuchi, Damanpour, & Choi, 2002). It is also interesting to note that Americans are described as individualistic with values based on independence, “rugged individualism,” and self-reliance, but they rank among the top charitable givers in the world. As stated earlier, these classifications depend on the specific context and particular characteristics and experiences of individuals and groups.

High and Low Uncertainty Avoidance People in cultures with high uncertainty avoidance do not tolerate risk easily, tend to avoid the unknown, and are content with predictability and certainty. Generally, manag- ers in Japan, Argentina, Italy, and Israel prefer predictable, structured work situations.

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CHAPTER 3Section 3.8 Cross-Cultural Value Differences and Diversity

People from cultures with low uncertainty avoidance are comfortable with and tolerate unpredictability, ambiguity, and the unknown. Managers from the United States, Austra- lia, and Canada accept and even seek risk and uncertainty at work and in their personal lives. These managers also tend to be more risk oriented and less interested in controlling work products and outcomes.

High and Low Power Distance This dimension measures how a person views authority, status, and power, which can affect communication and decision making between leaders and followers. A person with an orientation toward high power distance generally sees the boss, supervisor, or person in charge as having more authority and usually shows more deference. Leaders, manag- ers, and followers in cultures with high power distance (Mexico, Japan, Spain, and France) do not treat each other as equals. Hierarchy and top-down authority count. In cultures with low power distance (Germany, the United States, and Ireland), the opposite is true: Leaders and managers are treated as equals by followers and employees. Participative decision making in and by groups is a common practice. Followers with a low power distance generally take directions from leaders when they think or have evidence that the leader is right in his or her decisions and directions.

Long-Term and Short-Term Time Orientation People from cultures that have a long-term or future time orientation value investments and savings and persistence in goal achievement. They are less motivated by short-term rewards and immediate results. They can delay gratification and are satisfied when their investments promise good returns. Asian countries have generally adopted this orientation. Their high rates of per capita savings have reflected such a view. A short- term time orientation, on the other hand, values personal happiness and stability in the

present. Quick gratification is important for those with this orientation. For exam- ple, to offer a long-term reward for a task to be completed in a day, week, or shorter time frame would not be motivating for a follower from a culture that has a short- term time orientation. The United States and European countries have historically had this time orientation, as is reflected in their habits of saving less and spend- ing more.

Masculinity and Femininity This dimension, which in today’s terms is somewhat stereotypical, shows an orien- tation that pursues material assets versus personal social connections. Masculinity describes the stereotypical cultural values

Leaders, managers and followers in a high power-distance cultures like Japan do not treat each other as equals. People with higher position power expect and are expected to be shown deference and respect.

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CHAPTER 3Section 3.8 Cross-Cultural Value Differences and Diversity

that emphasize a quest for money and material objects. Values based on asser- tiveness and competitiveness reflect this orientation. Japan and Italy are high on masculinity. Femininity, another stereo- typical dimension, is at the other end of this continuum and is based on values that emphasize developing and nurtur- ing personal relationships and an enrich- ing quality of life. Sweden and Denmark are high on this dimension.

GLOBE Study

The Global Leadership and Organiza- tional Behavior Effectiveness, or GLOBE, study (Dorfman, Hanges, & Brodbeck, (2004); House, Hanges, Javidan, Dorfman, Gupta, & Gupta, 2006, 2004) frames cultural values somewhat differently. This is an important continuing study because of its breadth and depth relating to global cultures on leadership. The GLOBE study researchers (House et al., 2004) surveyed 17,000 peo- ple in 62 societies and came up with six dimensions—in contrast to Hofstede’s five— which they referred to as “Culturally endorsed Leadership Theory dimensions,” or CLT dimensions.

1. Charismatic/value-based leadership reflects the ability to inspire, motivate, and expect high-performance results from others on strong core beliefs and values.

2. Team-oriented leadership emphasizes effective team building and execution of a common goal among team members.

3. Participative leadership reflects managers’ involving others in making and implementing decisions.

4. Humane-oriented leadership reflects supportive and considerate leadership, including compassion and generosity.

5. Autonomous leadership refers to independent and individualistic leadership. 6. Self-protective leadership ensures the safety and security of the individual. It is

self-centered, face saving, status oriented, and procedural in its approach.

The GLOBE project team then identified leadership behavioral profiles for 10 regional clusters of countries using the six dimensions (see Table 3.2). Each cluster possesses a high, moderate, or low perceived value for each of the six leadership dimensions.

People from Eastern European countries generally view an effective leader as one who is highly autonomous (independent, individualistic, and unique) and self-protective (some- what self-serving), and moderately charismatic/value based (visionary, inspirational, trustworthy, decisive, and performance driven), team oriented (collaborative, diplomatic, and administratively competent), and humane oriented (considerate and supportive of others’ needs). Leaders are valued lower on being participative (involving others in mak- ing and enacting decisions).

Performance orientation refers to the extent to which an organization or society encourages and rewards group members for performance improvement and excellence.

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CHAPTER 3Section 3.8 Cross-Cultural Value Differences and Diversity

People from Latin American countries, by contrast, value highly charismatic/value-based leadership that is also highly team-oriented and self-protective and moderately participative and humane oriented. Independence and individualism are of lower value in these countries.

Latin European countries desire leadership behaviors that are charismatic/value based, participative, status oriented and procedural, and collaborative with teams. Leaders who are independent and consideration oriented are valued less.

The Confucian Asian country cluster prefers leaders who are self-protective and status oriented, while also being team and humane oriented. Leadership behaviors that are char- ismatic/value based, considerate of others, and independent are less valued. Participative leadership is perceived as less important in these countries’ cultures.

Nordic European cultures see the ideal leader as charismatic/values based (inspirational and visionary) and participative, while being moderately team oriented and independent. Compassionate, status and procedurally oriented leadership is valued less.

Anglo countries (including the United States) value leadership that is charismatic/values based, highly participative, and considerate of others. People from these cultures report

Table 3.2 Regional Culture Clusters: Desired Leadership Behaviors

Charismatic/ value-based

Team- oriented

Participative Humane- oriented

Autonomous Self-protec- tive

Eastern Europe

Moderate Moderate Lower Moderate High High

Latin America

High High Moderate Moderate Lower High

Latin Europe High Moderate Moderate Lower Lower Moderate

Confucian Asia

Moderate High Lower Moderate Moderate High

Nordic Europe

High Moderate High Lower Moderate Lower

Anglo High Moderate High High Moderate Lower

Sub-Saharan Africa

Moderate Moderate Moderate High Lower Moderate

Southern Asia

Moderate Moderate Lower Moderate Moderate High

Germanic Europe

Moderate Moderate Moderate Moderate High Lower

Middle East Lower Lower Lower Moderate Moderate High

Source: Adapted from Culture, Leadership, and Organizations: The GLOBE Study of 62 Societies, by R. House, R. Hanges, P Javidan, M. Dorfman, T. W. Gupta, and V. Gupta (Eds.), 2004, Thousand Oaks, CA: Sage;

and Leadership: Theory and Practice (5th ed.), by P. Northouse, 2010, Thousand Oaks, CA: Sage.

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CHAPTER 3Section 3.8 Cross-Cultural Value Differences and Diversity

that team oriented and autonomous leadership is moderately important. Autocratic and self-protective leadership behaviors are least valued.

Sub-Saharan African respondents reported that desired leadership is first and foremost caring, considerate, compassionate, and generous, followed by charismatic/values based, team oriented, participative, and at the same time status and procedurally oriented. The least desired leadership behavior from this sample is self-protective—that is, self-centered, face saving, status oriented, and procedural.

Southern Asian countries report similar results to the Confucian Asian cluster with regard to what is desired in an ideal leadership profile: self-protective, humane, team-oriented, and charismatic/value-based behavior. These countries do value charismatic/value-based lead- ership, but not as much as the other dimensions. While these countries value less autonomous leadership, they believe this style is more effective than shared, collaborative leadership.

Germanic European countries desire leadership that is highly independent while also being charismatic/value based, participatively team oriented, and considerate of others. They value less leaders who are status conscious, procedurally oriented, and concerned about saving face.

The Middle Eastern country cluster views the ideal leader differently than the other regions. In the Middle East, the desired leadership profile is self-protective—that is, an emphasis is placed on status and procedure. Independent and humane leadership are also valued, but less than the self-protective approach. Less important are charismatic/ value-based, participatory, and team-oriented leadership behaviors. It is interesting to note these reported results include the countries of Turkey, Kuwait, Morocco, and Qatar. After the populist uprisings and overthrow of the Egyptian and Tunisian presidents, as well as revolts against the leadership in Yemen, Bahrain, Libya, Syria, and Jordan, the next GLOBE survey may alter the results for this country cluster, especially if it expands the sample to those countries that overthrew their leadership.

The GLOBE researchers also produced a list of 22 universally endorsed leadership attributes: trustworthy, foresight, intelligent, positive, confidence builder, effective bar- gainer, honest, just, plans ahead, dynamic, motivational, decisive, coordinative, excel- lence oriented, win-win problem solver, communicative, team builder, dependable, encouraging, motive arouser, informed, and administratively skilled. The list suggests that these leadership characteristics work well across different cultures and societal val- ues. A portrait of an exceptional leader from this same study is one who has integrity, is charismatic and value based, and is competent on interpersonal skills (Dorfman et al., 2004; Northouse, 2010). The same study listed the following leadership characteristics as universally undesirable: egocentric, dictatorial, asocial, irritable, ruthless, loner, and noncooperative.

We have discussed most of these leadership traits, personality characteristics, and styles already. It may be helpful to refer back to the previous two chapters to get a sense of how your own cultural values support these different styles. How do your leadership style and characteristics, based on the assessments you have taken so far, compare to the character- istics desired most and least in this study?

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CHAPTER 3Section 3.8 Cross-Cultural Value Differences and Diversity

Cultural Intelligence and Cultural Sensitivity

The last set of important multicultural-leadership characteristics are cultural intelligence and cultural sensitivity. Cultural intelligence (CQ) is a person’s ability to interpret (rea- son and observe) another’s unfamiliar and ambiguous gestures and situations and to respond appropriately (Earley & Mosakowski, 2004). Similar to emotional intelligence, CQ involves being able to see differences in nonverbal and verbal language, physical behaviors, attitudes, and ways of doing things that are particular to certain cultures. For example, a Middle Easterner is a guest at a business dinner in the United States. The dis- cussion turns to politics, with very divisive opinions being expressed. The guest picks up cues that one of the executives is very uncomfortable with the topic. The guest is also sensitive about some of the issues. One of the executives turns to the guest and asks for her “honest” opinion. She very calmly and appropriately suggests that there are different views on this complex subject and that she would feel more comfortable passing on the conversational offer this time. A sigh of relief is felt and the discussion changes. Cultural intelligence enables a person to pick up verbal and nonverbal cues when interpreting situ- ations and then quickly adapt, as did the guest in the example.

Cultural intelligence has three facets or components: First, the cognitive component (head) is the ability to observe, listen, and pick up factual clues about relevant behaviors, such as sharp differences of opinion as in the example above, deadlines, and the ways people greet and address each other. The physical component (body) relates to actions, body lan- guage, speech, gestures, habits, and expressions. In some Middle Eastern Islamic cultures, a male guest does not touch women, even to shake hands. In a French social situation, on the other hand, you may be kissed on the cheek by a host when entering or leaving that person’s house. In a Japanese setting, you may slightly bow to greet a new executive or professional, but not shake hands.

The third component of cultural intelligence is the emotional/motivational (heart) compo- nent, which involves having self-confidence and courage to keep trying and not give up when you make cultural mistakes. Adapting to new settings is important and can be try- ing. Gaining cultural intelligence requires time but also preparation—reading and under-

standing different cultural habits and val- ues, attending different cultural events, and getting to know people from different cultures. Having an open mind and heart also helps with the adaptation process.

Cultural sensitivity is another important multicultural-leadership characteristic, involving the ability to be patient, adapt- able, flexible, and willing to listen and learn (Dubrin, 2010). Both cultural sensi- tivity and intelligence require gaining an understanding of different country cul- tural values (as discussed earlier).

When a person is thrown into an interna- tional assignment to either lead or work

Cultural intelligence is a person’s ability to interpret another’s culturally unfamiliar and ambitious gestures and respond appropriately.

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CHAPTER 3Section 3.8 Cross-Cultural Value Differences and Diversity

with others on a project, with all the time pressures and distractions that accompany work deadlines, not being prepared to work with team members from one or more different cul- tures can be challenging. Studies on expatriate assignment failure rates indicate that a large number do not succeed as planned. For example, Haile, Jones, and Emmanuel concluded:

There are many issues that lead to failure in international assignments. Some of the reasons for international assignments ending in failure include the ongoing lack of training, family problems, culture shock, relieving a dif- ficult employee, stressing on technical qualifications and lack of cross cul- tural training. Many expatriates are also reluctant to take long-term assign- ments. Concerns over spousal employment and disruptions to children’s schooling, political insecurity and individual danger have intensified.

Assessment 3.2: Cross-Cultural Skills and Attitudes

Instructions: Listed here are various skills and attitudes that various employers and cross-cultural experts think are important for relating effectively to coworkers in a culturally diverse environment. Indicate whether or not each statement applies to you.

Applies to Me Now Not There Yet

1. I have spent some time in another country. ____ ____

2. At least one of my friends is deaf or blind or uses a wheelchair. ____ ____

3. Currency from other countries is as real as currency from my own country. ____ ____

4. I can read in a language other than my own. ____ ____

5. I can speak in a language other than my own. ____ ____

6. I can write in a language other than my own. ____ ____

7. I can understand people speaking in a language other than my own. ____ ____

8. I use my second language regularly. ____ ____

9. My friends include people of races different from my own. ____ ____

10. My friends include people of different ages. ____ ____

11. I feel (or would feel) comfortable having a friend with a sexual orientation different from mine.

____ ____

12. My attitude is that although another culture may be very different from mine, that culture is equally good.

____ ____

13. I would be willing to (or already do) hang art from different countries in my home.

____ ____

14. I would accept (or have already accepted) a work assignment of more than several months in another country.

____ ____

15. I have a passport. ____ ____

Answering “Applies to Me Now” to 10 or more of the items indicates that you are likely to succeed in an internationally and culturally diverse work environment.

Answering “Not There Yet” to 10 or more items indicates that you need to develop more awareness and skills to adapt in different cultural settings. Experience in cross cultural environments and with people not like yourself is also important.

Source: Leadership, by Dubrin, A. (2010). Mason, OH: South-Western, Cengage Learning. Copyright 2010. Reproduced by permission.

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CHAPTER 3Summary

Managers of MNCs (multinational corporations) must not only train the expatriates, but their families in native languages, social behaviors, and cultural norms to prevent culture shock and promote a smooth transition to the new country. (2010)

Cultural sensitivity as a competency involves taking a deep breath and not seeing the world and others from only your point of view and values or assuming that you and your worldview are superior to theirs (ethnocentricity). Even though globalization and electronic news sources covering the same or similar stories are creating common under- standing among peoples, cultural value differences still persist.

Developing a tolerance for cultural differences requires a learned sensitivity. Your cul- ture, language, ways of communicating, work-product expectations, and deadlines are not the only, or sometimes the most important, ones when working on a global team. While English is still the common language for doing business globally, it is necessary for multicultural leaders and followers to develop sensitivity toward language nuances and differences, work habits, and work roles. For example, nonnative English-speaking professionals may need more time to fully understand subtle meanings. Some cultures do not reward employees for working on weekends and holidays. Finally, in some coun- tries, women may not have the same privileges or status as in most Western countries: An American female manager or supervisor on assignment might find that a local team of male members has difficulty accepting her authority, and might have to react with toler- ance and sensitivity (Dubrin, 2010).

Robert Lewis offered an important question that leaders can ask when confronted with a situation where cultures may collide: “My job requires that I manage your performance. Your job is to meet or exceed performance standards. How can I help you do that?” (Lewis, 1998). The question reflects flexibility and sensitivity while remaining aligned to one’s professional identify and organizational priorities.

Summary

This chapter defined culture as the shared meaning of values, beliefs, and assumptions about how things are done and what behaviors are acceptable (Connors & Smith, 2000; Schein, 1993, 2010), and it argued that culture is the most important internal orga- nizational dimension. When culture is effective, the organization stands to be effective.

Schneider, Goldstein, and Smith (1995) argued that “the people make the place.” People, including leaders, are responsible for the structure, processes, and culture of an orga- nization. Founders first launch cultures based on their values, but leaders must later identify values and cultures that effectively connect their organizations to changing environments, markets, and customers through specific strategies, policies, and proce- dures—which are shaped by the organization’s culture. It is helpful, for both leader and follower efficacy and fit, to be cognizant of the differences between high-performance and low-performance cultures—and leadership—as well as the differences between achieve- ment, bureaucratic, clan, and adaptive cultures. These cultures are created and sustained

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CHAPTER 3Summary

through communication. The chapter discussed the communication process, the types of communication channels that should be used with different messages, and the use of strategic dialogue, persuasion, and feedback. These skills are essential to evolving leaders in any organization.

Finally, the people of an organization should reflect the diversity of the markets it serves. Diversity is an essential part of organizational cultures in this century. Becoming an effec- tive leader involves gaining an awareness of your attitudes and differences and the abil- ity to work with people different from yourself in the workplace. Leaders who cannot understand cultural differences in people cannot lead or manage them. Traditional dif- ferences in the workforce—that is, race, gender (socially constructed attributes for men and women), sex (biological and physiological characteristics of men and women), age, and disability—are now compounded by other factors: nationality, language, personality, work style, generation, competency, and pay level, to name a few. Leaders’ visions, mis- sions, values, employment tactics, and training programs must include diversity in order to secure a competitive advantage.

Web Links

Edgar Schein on Corporate Culture A leading organizational-culture thinker discusses his latest thinking on corporate cul- ture: http://www.youtube.com/watch?v=6ZB3jJlGWuk

Organizational Culture on the Screen A collection of clips from the movies Office Space and Nine to Five helps illustrate negative organizational culture: http://www.ovguide.com/movies_tv/office_space.htm; http:// www.ovguide.com/movies_tv/nine_to_five_1980.htm

JetBlue JetBlue founder David Neeleman talks about establishing organizational culture at the discount airline: http://ecorner.stanford.edu/authorMaterialInfo.html?mid=304

Leadership Strategies for Social Media A blogger outlines 13 rules for leaders: http://socialmediatoday.com/donbulmer/162668/13 -rules-leadership-communication-influence-and-social-media-strategy

Leadership Is All About Emotional Persuasion A communications consultant offers some insight on persuasion: http://www.forbes.com/ 2010/02/02/communication-emotional-persuasion-leadership-managing-speaking.html

The New World of Work A YouTube video shows how the workplace has changed due to demographic shifts and globalization: http://www.youtube.com/watch?v=oL6GTqvtYHM

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CHAPTER 3Summary

U.S. Equal Employment Opportunity Commission This government organization offers resources and information about discrimination and how to combat it: http://www.eeoc.gov/

Weird, or Just Different? Derek Sivers shows that sometimes we have to go to the other side of the world to realize we do carry assumptions: http://www.ted.com/talks/derek_sivers_weird_or_just_different .html

Managing Across Cultures Intercultural consultant Michael Schell talks about understanding cultural differences in business: http://video.foxbusiness.com/v/3895436/managing-across-cultures/

Diversity Training A selection of links offers background, guidelines, and pitfalls of diversity training: http:// www.diversitycentral.com/leaders_toolkit/toolkit/training1.html; http://www.staffing diversity.biz/dtguidelines.php; http://www.msgld.com/Newsletters/DiversityTraining PitfallsToAvoid.htm

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