7 Leadership Across Cultures
7.0 Statement of the problem
Bridging the culture gap
You are running an international project with very tight deadlines. Your colleague, Susan, knows that she needs to send you a detailed progress report at the end of every month. It’s now 5 July and Susan’s June report has only just arrived – nearly a week late. To make matters worse, some of the figures are inaccurate. You decide to call her.
How would you instinctively handle the conversation with Susan? Would you feel more comfortable taking approach A, or approach B?
Approach A
| You: | I’m calling about your June report. It was a week late and some of the figures were inaccurate. |
| Susan: | Yes, I know. I’m very sorry about that. A couple of my people were off sick. |
| You: | Yes but, Susan, you must respect the deadlines. If you don’t, we’ll fall behind schedule. And, in future, please make sure that you check all the figures very carefully. |
Approach B
| You: | I’m calling about your June report. |
| Susan: | I was just about to call you. I’m sorry it was late, but a couple of my people were off sick. |
| You: | Oh dear… The thing is, I’ve just been through the figures and I’m afraid some of them don’t seem to add up. |
| Susan: | Don’t they? Oh, I’m sorry. I had to put them together very quickly. |
| You: | Right. But what about this month? Will you be able to spend a bit more time on them? |
| Susan: | Yes, of course. |
| You: | Great. Because, as you know, there’s an important deadline coming up, and we’ll be in real trouble if we miss it. |
In: Bridging the culture gap, London 2004, p. 81
7.1 The foundation for leadership
Leadership is often credited for the success or failure of international operations. When one realizes that much of history, political science, and the behavioral sciences is either directly or indirectly related to leadership, the statement that more concern and research has been focused on leadership than on other topic becomes believable (Hodgetts/Luthans, 2003, p. 412). Numerous leadership theories variously focus on individual traits, leader behavior, interaction patterns, role relationships, follower perception, influence over followers, influence on task goals, and influence on organizational culture. But so far, there is no generally agreed-on definition. Effective leadership involves the ability to inspire and influence the thinking, attitudes, and behavior of people or in other words: leadership can be defined as a process by which a person influences others to accomplish an objective and directs the organization in a way that makes it more cohesive and coherent.
A leader is someone who stands not only for his cause but takes responsibility and motivates other individuals as well. There is a clear difference between being a boss and a leader. A leader motivates and inspires others to aim high and attain that aim. However, a boss only supervises over his subordinates. Power comes naturally to a leader, but power is not a tool of the leader.
Leadership is not a quality but it is an individual’s behaviour. A leader showcases a positive attitude and high self-esteem. He assertively works towards the goal but never gets pushy for it. The task of helping employees to realize their highest potential in the workplace is the essence of leadership. Today’s global managers are aware that increased competition requires them to be open to change and to rethink their old culturally conditioned modes of leadership. A continuous self study, training, evaluation and imbibing positive things in life develop the characteristics of a leader.
Ronald E. Riggio, Professor of Leadership and Organizational Psychology at Mc Kenna College, Claremont
Question: Are leaders born or made?
Dr. Riggio: This isn’t something that requires my opinion, because this question has been well researched. The twin studies by Richard Arvey and his colleagues have estimated that leadership is about 2/3 “made” and 1/3 “born”. This makes sense, though, if we see much of leadership as a set of learned skills and competencies: ability to communicate, strategize, problem solve, etc. This takes time to develop.
This question would have broad implications for leadership, for if it were all (or mostly) born, then our efforts should be directed toward identifying and selecting leaders, and we would be wasting our time on leader development programs. But, the research suggests that putting resources into leadership development makes sense, and recent meta-analyses of these programs suggest that, in general, they work and lead to positive gains.
Cutting-Edge Leadership, in: Psychology Today, October 7, 2012, p. 12
7.2 Leadership styles
The importance of the leadership role cannot be overemphasized because the leader’s interactions strongly influence the motivation and behavior of employees, and ultimately, the entire climate of the organization. Modern leadership theory recognizes that no single leadership style works well in all situations. Leader behaviors can be translated into three commonly recognized styles: (1) authoritarian; (2) paternalistic; and (3) participative. Moreover, there are four more types (4) laissez-faire; (5) transformational; (6) charismatic; and (7) transactional style that are presented here to get a better understanding how the process of influencing people to direct their efforts toward the achievement of some particular goal(s) takes place.
7.2.1 Authoritarian leadership
Authoritarian leadership can be described as the use of work-centered behavior that is designed to ensure task accomplishment. (Hodgetts/Luthhans/Doh, 2006, p. 400)
This style is characterized by the use of one-way communication. The information goes only from the manager to the subordinate. Authoritarian leaders are keeping their focus on the work performance of the employees and reaching goals. The personnel needs of the employees are less important. This leading style is used by managers who follow the Theory X or also to manage crisis in organisations. (Hodgetts/Luthhans/Doh, 2006, p. 400) One of the biggest advantages is that the manager is able make decisions very quickly. There is not a long working process because the leader has the sole responsibility. Furthermore, the authoritarian style can be a perfect working style for a leader who likes to have the total control and overview on the company activities. There is also a down side because the managers who follow the authoritarian style are under high pressure and that can have a negative impact on their health. This style can be difficult for certain subordinates as well. The communication goes only from one direction so the leader tells his employees what to do. The employees are not allowed to produce new ideas or improvement suggestions. Consequently there is a big risk that the employees get frustrated and unmotivated.
The graph makes also clear that in case of the authoritarian leadership style the communication and exchange of information go downwards, only in one direction from the leader to the subordinates.
7.2.2 Paternalistic leadership
Paternalistic leadership is understood as a work-centred behavior coupled with a protective employee-centred concern. (Hodgetts/Luthhans/Doh, 2006, p. 400)
The paternalisatic style is often characterized by “work hard and the company will take care of you” (ibid.). The major benefit is that the leader gives the subordinates support such as medical or retirement benefits. He is acting like a father and taking care of the social needs of his employees. They are highly motivated to deliver a good work performance. The relationship between these co-workers and the leader are extremely solid. The employees are expected to stay with the company for a longer period of time because of the loyalty and trust (Erben, 2008, p. 12).
The figure illustrates that in the case of paternalistic leadership style the information flow goes from the leader to the subordinates and back. It makes also clear that there is a continual communication between those two parties.
7.2.3 Participative leadership
The particpative leadership style leadership style is a combination of a work-centered and a people-centered approach and also known as a democratic leadership where the subordinates are involved in the decision making and controlling processes of the company.
This style of leadership encompasses discussion, debate and sharing of ideas and encouragement of people to feel good about their involvement. The advantage is that the employees have the opportunity of being creative which enables the company to be innovative. Furthermore, the employees can improve their skills and knowledge which leads to a higher qualification and at the end to more money. One of the mayor disadvantages linked to this style is that the decision-making process requires a lot of time because more or less all employees should be actively involved.
The figure shows that in the case of a participative leadership, the flow of information is continuous and goes from the leader to the subordinates and back. Furthermore, this style supports the interaction and communication among the subordinates.
7.2.4 Laissez-faire leadership
Laissez-faire leadership is based upon the philosphy “let them do” and describes leaders who allow their people to work on their own. This type of leadership can also occur naturally when managers do not have enough control over their work and their people. Those leaders give their employees the possibility to take their own decisions. This kind of leadership will be supported by providing all necessary information and resources for the employees. This type of leadership is connected with a strong motivation, improved productivity and a high amount of satisfaction. However, this style is only successful when the employees are used to bear responsibility and experienced enough to carry out all main activities on their own. (Cherry, 2013)
7.2.5 Transformational leadership
The transformational leader treats each co-worker as a “whole” individual rather than as an employee and considers the individual’s talents and levels of knowledge to decide what suits him or her best (Couldfield, 2013, p. 14).
They are able to inspire and motivate their team members. Consequently, the transformational style has a positive impact on the work performances of the team. Furthermore, this style keeps the major focus on interaction between the leader and the subordinates. Communication and a continuous flow of information among the leader and the employees are the major keys to fulfil company goals.
7.2.6 Charismatic leadership
The charismatic leader inspires and motivates employees through his or her charismatic traits and abilities. (Hodgetts/Luthhans, 2006, p. 415)
Charismatic leaders are essentially very skilled communicators – individuals who are both verbally eloquent, but also able to communicate to followers on a deep, emotional level. They are able to articulate a compelling or captivating vision, and are able to arouse strong emotions in followers (Riggio, 2012, p. 2). There is also a downside, because charismatic leaders trust only themselves, not their employees. This creates a high risk because the whole organization depends on the performance of the leader and when he or she fails the entire company might collapse. Furthermore, the employees are less motivated when their leader does not believe in the team.
“As long as you are going to be thinking anyway, THINK BIG.”
(Donald Trump)
7.2.7 Transactional leadership
Transactional leadership is based upon the assumption that subordinates and systems work better under a clear chain of command. The implicit belief in the leader-follower relationship is that people are motivated by rewards and penalties (Marurano, 2008, p. 166). “Transaction” includes paying employees in return for high productivity and a good work performance. On the other hand, the transactional leader can “punish” the team members when he or she is not satisfied with their performance.
The transactional leadership style is the most effective style in international business and is characterized by the following factors, which are also known as the “I’s” (Hodgetts/Luthhans, 2006, p. 416):
- “Idealized influence: Transformational leaders are a source of charisma and enjoy the admiration of their followers. They enhance pride, loyalty, and confidence in their people, and they align these followers by providing a common purpose or vision that the latter willingly accept.
- Inspirational motivation: These leaders are extremely effective in articulating their visions, missions, and beliefs in clear-cut ways, thus providing an easy-to understand sense of purpose regarding what needs to be done.
- Intellectual stimulation: Transformation leaders are able to get their followers to question old paradigms and to accept new views of the world regarding how their things need to be done.
- Individuals consideration: These leaders are able to diagnose and elevate the needs of each of their followers through individualized consideration, thus furthering the development of these people.”
7.2.8 Leadership styles in the international context
Which leadership style an internationally operating manager applies depends on the country and the area a company is doing business. The cultural background has a strong influence, but also the size of the company, the organizational structure, the age and the experiences a leader has made play a big role. Much research has shown that the leadership style in Europe keeps focused on decision-making, controlling, risk-taking, planning and organizational structure (Hodgetts/Luthhans, 2006, pp. 404f).
“For example, British managers tend to use a highly participative leadership approach. This is true for two reasons: one because the political background of the country favours such an approach; and two because most top British managers are not highly involved in the day-to-day affairs of the business, they prefer to delegate authority and let much of the decision making be handled by middle- and lower-level managers. This preference contrasted sharply with that of the French and the Germans, who prefer a more work-centred, authoritarian approach. In fact, if labour unions did not have legally mandated seats on the board of directors, participative management in Germany likely would be even less pervasive than it is. This is a problem that currently confronts firms like Volkswagen that are trying to reduce sharply their overhead to meet increasing competition in Europe. Scandinavian countries however make wide use of participative leadership approaches, with workers representation on the board of directors and high management-worker interaction regarding workplace design and changes.” (Hodgetts/Luthhans, 2006, p. 405)
Consequently, most of the European managers follow the more participative and democratic leadership style.
Leadership and decision making in Japan
(Richard Mead)
The following conversation between two Japanese women managers took place during a lunch break of an international conference:
| Fukuyama: | Some Japanese people don’t like job rotation. But we have to do it. Normally we don’t change companies. If you join a Japanese company, and then leave, that looks like disloyalty. |
| Imai: | And nobody else wants to employ you. You might never find another job. It is very difficult, if you hope to move to a respected Japanese company |
| Fukuyama: | A western company might employ you, if you have the skills they need. |
| Imai: | Sometimes, yes. |
| Fukuyama: | So most Japanese hope to stay with their company for all their working life. |
| Imai: | Loyalty to the company is an issue when it comes to accepting job rotation, because you accept the company’s plan to train you. |
| Fukuyama: | Of course, many managers welcome the opportunity. Those who don’t, well, they have to go along with it. The company expects its managers to learn all aspects of business. They have to learn all the functions of the company. |
| Imai: | So they rotate their managers around the departments. Most Japanese managers are generalists, not specialists. And still very few go to business schools. We learn within the company, and only the skills that the company requires. |
In: Cases and Projects in International Management – Cross-Cultural Dimensions, 2000, p. 71
7.3 Four types of leaders
In a study, Thomas has pointed out how leaders react in an intercultural setting. He distinguishes between four different types of reactions (Thomas, 2006, pp. 31ff):
Ignorant types ignore that operation in the intercultural context includes the consideration of differences across cultures. They do not notice the differences between different cultures. It is impossible to cooperate with the ignorant type in the international arena.
Universal types are the same around the world. Cultural differences across countries do not influence their style of leadership. The Universalist meets intercultural challenges by reacting in a friendly and tolerant way as well.
Action types do not focus on intercultural differences across countries. The most important features for the action-oriented type to be successful are setting well defined goals, persuasive power and being assertive as well.
The Exponentiator understands that every culture consists of its own knowledge, beliefs, arts, moral laws, customs, habits and other capabilities. Those managers keep focus on the differences across culture. Furthermore, those managers believe that different cultures can be synchronized and bound together with the aim to get a competitive advantage in international business.
The four types of reaction also differ regarding the following dimensions:
- Simplicity
- Complexity, activism
- Reflexivity and intercultural dominance
- Intercultural competence
CEO: Still crazy after all these years
(Steve Jobs)
For most things in life, the range between best and average is 30 % or so. The best airplane flight, the best meal, they may be 30 % better than your average one. What I saw with Woz was somebody who was fifty times better than the average engineer. He could have meetings in his head. The Mac team was an attempt to build a whole team like that, A players. People said they wouldn’t get along, they’d hate working with each other. But I realized that A players like to work with A players, they just didn’t like working with C players. At Pixar, it was a whole company of A players. When I got back to Apple, that’s what I decided to try to do so. You need to have a collaborative hiring process. When we hire someone, even if they’re going to be in marketing, I will have them talk to the design folks and the engineers. My role model was J. Robert Oppenheimer. I read about the type of people he sought for the atom bomb project. I wasn’t nearly as good as he was, but that’s what I aspired to do.
In: Isaacson, W.: Steve Jobs, 2011, p. 363
7.4 The Lewis Model
The Lewis model is a diagrammatic demonstration, which is based on the evaluation of thousands of cultural profiles of 68 nationalities. It shows the cultural distance between each nationality. Richard Lewis (2006, p. 42–46) established this model to classify several hundred national and regional cultures of the world into three groups: multi-active, linear-active and reactive.
Multi-actives are doing many things at once and are planning their priorities not according to a time schedule, but according to the relative thrill or importance that each appointment brings with it. People in this group are emotional in confronts and people-oriented. Feelings have a higher value than facts and the body language is unrestrained. Members of this group are e.g. Italians, Latin Americans and Arabs.
Linear-actives are planning, scheduling, organizing, and pursuing actions and doing one thing at a time. Characteristics are, being polite, direct and confront with logic. Moreover, they are highly job-oriented and sticking to the facts and have a restrained body language. Germans and Swiss are an example for this group.
Reactive cultures prioritize courtesy and respect. They listen quietly and calmly to their interlocutors and react carefully to the other side’s proposals. Those cultures are focusing on general principles and never confront someone in business. They are very people-oriented and statements are promises. Due to the subtle body language the face-to-face contact is very important. Besides, they are polite, indirect and often ask for “repeats”. Chinese, Japanese and Finns belong to this group.
The Lewis model aims to promote “harmony through understanding”. This means that it shows how people from different cultures vary in their concepts of time and space, how they handle interpersonal distance, silence and eye contact. In addition it clarifies how their communication styles are reflected in the language patterns they use. It promotes harmony in intercultural relationships by allowing empathy and understanding to develop.
Lewis says that this categorization of national norms does not change significantly over time. The behavior of people from different cultures is not something indefinite. Clear trends, sequences and traditions exist. Reactions of Americans, Europeans, and Asians alike can be forecasted, usually justified and in the majority of cases managed. Even in countries where political and economic change is currently rapid or sweeping (Russia, China, Hungary, Poland, Korea, Malaysia, etc.), deeply rooted attitudes and beliefs will resist a sudden transformation of values when pressured by reformists, governments or multinational conglomerates. All in all, the Lewis model guides a person to an understanding of various communication characteristics among cultures. A person is better able to get along personally as well as professionally with other cultures and is able to foresee how they are likely to react in various situations.
7.5 Leading across cultures: personality versus authenticity
The following text is part of a presentation that Michael Nagel, Manager at BearingPoint Frankfurt, held at the 14th International Baltic Sea Forum in Stralsund, entitled “A Global View on Intercultural Management” (2009, p. 50).
“Let’s come to the famous take home message, what I would like to remember after this presentation. First of all, cultures are different. We can learn a lot from others. Why? Just consider none of the big emerging economies, so called BRIC countries (Brazil, Russia, India, China) is linear. So, why should the management style, let‘s say, the western management style better than the rest? Just look at the BRIC countries. We shouldn’t think that we are the best or the superior. We are all at the same level. We have to learn from each other to find the best solution to work together.
The majority of senior managers blame cultural differences for the failure of mergers, so not the financials. It is not the product, it is not marketing. It is how the people communicate. A manager from Finland being now responsible for a Brazilian team, not being emotional, not winning the hearts, not following some simple rules, some simple advices, and all of a sudden all breaks down.
You could now say, well I want to be authentic. If I present, I want to present this Michael. I do not want to change, I do not want to act. I want to follow the rule of authenticity. You do not lose your personality or your values or your beliefs if you change. This is a stage and what do you want to do here? You want to sell something. You want to bring across a message. Here is the audience. So try to figure out what are the expectations. Do they expect a show? Or do they expect very detailed figures about analysis or whatever. So you are not changing your personality. It is just a simple practical step. Try it. The best place to try is being a student. In every single presentation you can try to be someone different. And anyway, I experienced lots of people and they told me ‘I do not want to play roles’. The truth is you are playing roles all the time. I play the role of a husband when I am at home, I play the role of a presenter here, I play the role of a consultant in my company, and tonight I will play the role of a guest in a restaurant. So we are playing roles all the time. The difference makes it if you are playing a role successfully. And this does not mean changing the personality.”
“Emotional leadership is the spark
that ignites a company’s performance,
creating a bonfire of success or a landscape of ashes”
(Robert Gill)
7.6 Leadership affected by religion
In the majority of international organizations, homogenous teams belong to the past. More and more teams are made up of people with different nationalities and therefore you can find different religion, cultures, languages, ideas, behaviors and ways of doing things. When people of different religious backgrounds come together, it is not easy to find a common ground. This is because they bring with them their own cultural baggage in terms of how they do things and expect things to be done. As an example, religion in India is rated as extremely important, whereas, in Germany, the topic rather fades into the background
But nevertheless: The religious background is getting more and more important because the number of believers all around the world is steadily increasing. How Confucianism, Islam, and Hinduism influence international business in general and the leadership style in particular will be described in this chapter.
There are various types of religions, so it is impossible to generalize it or even look at all and examine their influence on leadership styles. The following short descriptions concerning the Confucianism, Islam and Hinduism, should try to give an idea of how leadership styles can be influenced and what consequences can appear for leaders going abroad if they try to ignore them.
Are there Shinto hierarchical structures?
(John Renard)
Like so many other religious traditions, Shinto community structures often reflect the belief that human life mirrors divine life. Just as there is at least an implicit hierarchy among divine beings, human society needs a certain degree of structure. Longstanding Japanese tradition much influenced and reinforced by Confucian teaching over the centuries, lay great emphasis on knowing one’s place in society. Each individual stands in a relationship of higher-to-lower, or vice-versa, with his or her fellow human beings, and basic etiquette requires that one bewares of social subordination in every context. Everyday Japanese speech, with its various levels of polite address, reflects that awareness. Although contemporary Japan is a democratic society, with all the political institutions needed to support a democracy, hierarchy runs deep in the culture and so too in Shinto belief and practice.
In: The Handy Religion Answer Book, 2002, p. 510
7.6.1 Confucianism influencing leadership
It is interesting to note that many Asian countries have been influenced historically in one way or another by the Confucianism and its form and style of leadership.
China for instance is playing a very dominant role among the nations of the world. They did not adapt completely any Western leadership style so far; instead they remained to their tradition of Confucianism (Adair, 2013, pp. 3f).
Confucius was a thinker whose ideas have shaped the life of one third of the entire world and he is not at all representing many Western stereotypes. He developed a system in which men could learn to perfect themselves and the relations to one another. Furthermore, “Confucius believed that it was the person who led an organization defined its success and failure” (Cihak, 2007, p. 75). This means if the leader is good, any difficulty can be overcome.
Confucianism
(Scott D. Seligman)
China’s bureaucracy probably owes as much to its Confucian heritage as it does to the Soviet Union, on whose government structure it was largely modeled. Far from the “classless” organization of communist mythology, it is in fact strictly hierarchical, with rank and its privileges defined extremely clearly. People relate to one another not purely as individuals, but rather according to their relative ranks. Personal loyalty is highly valued, and it is common for high-ranking cadres to install cronies in important positions under their control.
In: Chinese Business Etiquette, 1999, p. 51
People within an organization should be led by virtue and instructed by example not by telling. Relationship is a very important and powerful issue when doing business with China. Openness starts right at the top of an organization. So as a consequence for leadership you should neither require an attitude of helpfulness, nor should you issue any rules which you are not following personally. Otherwise your behavior will not only be counterproductive, it will also be seen as offensive. A leader in China is more a type of father figure who expects and receives loyalty and obedience from colleagues. In return, the leader is expected to take a holistic interest in the well-being of his colleagues. It is a mutually beneficial two-way relationship. Another key issue regarding leadership in China is listening. Take your time and listen to staff. If you as a leader do not listen carefully, you might not reach any good progress within your company. (Cihak, 2007, pp. 76ff)
Confucian Management at Hyundai
(Lee Chang-sup)
Confucian-oriented management was introduced by Chung Ju-yung at Hyundai. The Confucianism goal was defined by frugality, religious belief in achieving this goal, and diligence. His management strategies were defined as follows:
- As long as employees are diligent and dedicated to attaining a goal, life employment was guaranteed.
- All employees were treated the same way.
- At no times, strikes were accepted or tolerated.
- The management strategy was based upon group thinking and team work was seen as a key factor for success.
In Confucian philosophy, all relationships are deemed to be unequal. Ethical behaviour demands that these inequalities are respected. Thus, the older person should automatically receive respect from the younger and so should the senior from the subordinate. “This Confucian approach should be seen as the cornerstone of all management thinking and issues such as empowerment and open access to all information” (WorldBusinessCulture.com, in web).
7.6.2 Islam influencing leadership
Islam is the world’s second most followed religion, with about 1.6 billion believers. It began in its present form about 1,400 years ago, in the year 622 AD, which is in fact the year 0 in the Islamic calendar. That explains why Muslims consider the year 2014 to be in fact 1435. The Qur’an is the principal source of every Muslim’s faith and practice. The revelations in the Holy Book in form of 114 chapters (surahs) contain the fundamental beliefs and touch upon all aspects of human existence. The name Qur’an means recitation and it is believed to be the final message and word of Allah to mankind. It was written in Arabic and is only authoritative in that language as it is considered to be a divine book which has not and cannot be altered.
The following five basic principles are central to the Muslim faith and do influence any business in a Muslim country.
- Pronouncing the confession of faith (Shahadah): “There is no god worthy of worship but Allah, and the Prophet Mohammed (Peace Be Upon Him) is the last Messenger of Allah.”
- Praying (Salah): There are five obligatory daily prayers. They are exercised before sunrise (Fajr), at noon (Zuhr), in the mid afternoon (Asr), at dawn (Maghrib) and after darkness appears (Isha).
- Fasting (Saum): Healthy Muslims fast during the ninth month of the lunar calendar called Ramadan. Fasting, which means abdication from eating, drinking, smoking and having sexual relations, is exerted from daybreak to sunset and is a demonstration of love and submission to Allah as well as a means to fortify one’s willpower.
- Pilgrimage (Hajj): It is an obligatory duty for Muslims to take the Hajj to Makkah (Mecca) once in their lifetime. There are certain rules, which have to be followed during the Hajj in order to make it valid. The rites e.g. include going around the Ka‘bah seven times in a two-piece unstitched cloth (Ihram).
- Charity donations (Zakah): Once a year, Muslims are required by religion to pay a minimum of 2.5 % of their yearly savings to the poor and needy. It is a means of purification of one’s self and wealth.
Why is the Koran important for Muslims?
Muslims believe the beautiful prose of the Koran to be the words of God Himself who spoke through Muhammad. Further, it is believed to be only a copy of an eternal book, which is kept by Allah. The Koran is also held up by Muslims as proof that Muhammad was indeed a prophet since no human is capable of composing such a text. Among the most widely read texts today, the Koran is also taught orally so that even Muslims who are not illiterate and do not speak Arabic might learn to recite the most important verses in Arabic.
In: The Handy Religion Answer Book, 2002, p. 192
In Western business culture, people e.g. make a strong separation between work and religious belief. Even a very devout Christian would not mention the will of God in a typical business encounter. However, when doing business in Saudi Arabia (and elsewhere in the Gulf) or in other Muslim countries, it is important to bear in mind the all-pervasive nature of the influence of Islam. When you are e.g. attending normal business meetings in Western countries, an appropriate business dress would be suits and ties for men and suits or skirts and blouse for women. But especially women should be aware of Muslim sensitivities and clothes should not be too revealing in order to show respect to their culture and religion. Muslim women are required to cover their bodies as a sign of modesty. Interpretations of the Qu’ran differ so you may see Muslim women wearing just a head covering whereas others may only show their eyes.
Life and business as an important aspect of life are governed by religion which forms the backdrop to society. In Islam religion nothing happens which has not been willed by God. If a deal comes off it is due to the will of God, if it fails it was not meant to be. Thus, a sense of fatalism and a resulting lack of urgency are often quoted by business people from non-Islamic cultures as being the over-riding impressions of a trip to for instance Saudi Arabia. The observance of religious ritual takes precedence over all other aspects of life and prayer punctuates the business day. Meeting discourses contain numerous references to God and His Prophet Mohammed and offices display numerous Koranic texts. Do not underestimate the deep conviction of your e.g. Saudi Arabian contacts and do not believe that reference to religion is in any way a ploy or insincere. (Abbas, 2005, pp. 50ff)
You should also know something about special religious festivities, like Ramadan or Haij. Especially your right intercultural behavior is asked for if the holy month of Ramadan has come. Imagine you are expecting a delegation from Oman during this time. Make sure that no beverages – even no tea, coffee or water – are offered. It will also be seen as an insult if you drink, eat or smoke during this business session. As far as the time frame is concerned, keep in mind that only one meeting during the day is expected. You can continue your talks at dinner. Put it all together, and it does not matter if such an encounter will happen in Germany or in Kuwait, the time for doing business is very limited. Moreover, the last four days of Ramadan are reserved for the Eid al Fitr celebration, when definitely no business will take place. A certain greeting pays respect to your counterparts’ religious feelings. Either you use the phrase “Happy Mubarak” or the more extended saying: “Kull am wa antum bichair” which means that you wish him all the best for Ramadan.
Why is Mecca a holy city for Muslims?
(John Renard)
Mecca (Western Saudi-Arabia) is the birthplace of the prophet Muhammad (c. 570) and was his home until year 622, when those who opposed him forced him to flee to Medina (about 200 miles north of Mecca). Muhammad later returned to Mecca and died there in 632. Mecca is the site of the Great Mosque in the heart of the city. The outside of the mosque is an arcade, made up of a series of arches enclosing a courtyard. In that courtyard is the most sacred shrine of Islam, the Ka’ba, a small stone building that contains the Black Stone, which Muslims believe was sent from heaven by Allah. When Muslims pray, they face the Ka’ba. It is also the destination of the hajj, or pilgrimage.
In: The Handy Religion Answer Book, 2002, p. 212
When doing business in very conservative Muslim countries like Saudi Arabia or Indonesia it is always good to be aware when the time of praying has come. Especially at noon (Zuhr) and in the mid afternoon (Asr) no business meeting will take place. If the praying time is at 11.45 am, the relevant time can be read in the morning newspaper, then the time between 11.30 till 12.30 is reserved for the religious duty. The same is going to happen if the time for Asr will come. Even the invitation for dinner should reflect the last praying time (Isha). If you think that 8.00 pm might fit into your schedule make sure that this is in line with Isha. If we presume that the last praying time is 7.45 pm, nobody will arrive earlier than 9.00 pm.
As far as the right leadership style is concerned, organizations are run along strongly hierarchical lines and managers tend to be very instructional in their approach. Subordinates view it as the boss’ role to take decisions and to convey those decisions down the chain for implementation (Mawdudi, 1960, pp. 249ff). However, the leader will often include the group in a consensus-style discussion, while the final decision is taken by the leader.
The role of the manager is to accept the position of superiority and to use that position to further the aims of the organization or group. The manager is expected to make decisions and to convey them, in detail, to subordinates. The subordinate then expects to carry out those instructions, even if it is obvious that the instructions or decisions are flawed. A subordinate would not disagree with the boss – and especially not in public. (Beekun/Badawi, 1999, p. 21)
In return for accepting the role of manager and the loyalty that naturally accrues from that position, the manager is expected to look after group interests as well as the interests of the individuals within the group. Special attention should be paid to ensure that people are not placed in a position where they could possibly “lose face”. Do not give people roles which will stretch their capabilities, hoping that they can learn from any mistakes they make - mistakes made can cause loss of face. Similarly, any praise or censure is best addressed to the whole group rather than any individual – being singled out can cause enormous embarrassment. It is of course important to remember that this deference is probably not only being shown to the organizational position of the boss but also to his family status, class connections and age.
7.6.3 Hinduism influencing leadership
There are several sections in Hinduism based on different philosophies of the religion, such as Advaita, Vishiciltadvalta, etc. It is in fact really difficult to precisely define Hinduism. It is more like “a tree with several branches and yet the root of all these branches is common” (Singh, 2003, p. 95). India had a long tradition of oral history. Indian folklore is full of kings and noblemen of all shades – good, brave, from wise to bad, cowardly, foolish. A constant refrain in folklore is the presence of sages, seers, and saints who renounced the material world, and practiced and propagated spiritualism. (ibid., pp. 92ff)
Basham claims that
“Indian history emerged from legend and dubious tradition in the 6th century BC, and what emerged was a society highly developed materially, intellectually, and spiritually. It was also characterized by a great sense of fairness in social and civil relations.” (Basham, 1967, p. 345)
The evolution of Indian society and culture has continued its course along with the march of time. Social progress since independence has served to heighten the awareness of cultural pluralism. Beneath the manifold diversity of physical and social type, language, custom and religion there is an Indian character, a general Indian personality which we cannot resolve into its component elements”. (Singh, 1990, pp. 102ff) There has been a resourgence of some strong beliefs in Hinduism in India coinciding with the resurgence of strong religious beliefs elsewhere in the world (e.g. Islam, Christianity, etc.) (Basham, 1967, p. 347).
The power distance plays an important role in the Hindu system. However, authority is based on moral integrity. That is why a leader in a Hinduism culture should be kind, caring, inspirational and directional. The named characteristics all go along with transformational leadership style which is promoted. (Rampersad, 2009, p. 45).
In Nehru’s words:
“Hinduism as a faith, is vague, amorphous, many sided, all things to all men. It is hardly possible to define it, or indeed to say definitely whether it is a religion or not, in the usual sense of the word. In its present form, and even in the past, it embraces many beliefs and practices, from the highest to the lowest, often opposed to or contradicting each other. Its essential spirit seems to be to live and let live.” (Kumar, 2003, p. 33)
Leadership in India
Indian leaders manage to balance, accommodate, and integrate contradictions between thoughts and actions; they do not necessarily lead to dissonance and confrontation. Face saving has great importance in Indian autocratic leadership. For instance, Indians can keep secrets much longer than their Western counterparts. Even lying can be acceptable if it serves a just purpose. If the team or the business can be protected by bending the truth, this is very much acceptable.
Relationship orientation is more important for effective leadership than performance or task orientation. When building a team, one would usually prefer team members whom one can trust and is comfortable to interact with over the team members with a perfect skill-fit but not on the same wave length. There is a comparatively high commitment by employees and also senior managers to the leadership of their companies. In fact, they almost adore and idealize their CEOs. Because of the socialization pattern in the family, Indians are more likely to be inclined to perceive the leader of a company as a wise, caring, dependable yet demanding figure – just like the elders in the family or social community. However, today this idealization of leaders is no longer completely blind to their deficiencies or the organizational needs to they might not fulfill.
In short, the most effective leadership style in India combines charisma, action orientation, autocracy, bureaucracy, collective relationship orientation, being a problem solver, self-starter, entrepreneur, and visionary. This appears a difficult task for one person to fulfill. But in Indian organizations, individualism coexists with vertical collectivism. This is seemingly contradictory, but it is the coexistence of values that in other cases would be mutually exclusive, which makes Indians effective leaders in their world.
In: J.S. Chokar, India: Diversity and Complexity in Action, New Jersey, 2007, p. 994; S. Kaher et al., Leadership in Indian Organizations from a Comparative Perspective, In: International Journal of Cross Cultural Management, Vol. 2, 2002, p. 239–242
7.7 The Intercultural Manager
With the march of globalization and internationalization growing louder and stronger, few successful businesses can now escape the need to work across cultures. With this move towards a cross-cultural business environment comes a need for people to be aware of how culture impacts the workplace. Unfortunately, as many quickly discover, the rest of the world does not do things “like we do”. Cultural differences impact everything from inter-personnel communication to health and safety procedures to project management. In short, no corner of any business escapes.
In addition to the normal pressures of management, managers are now required to deal with challenges, friction and misunderstandings emanating from cross-cultural differences. Effective management in the modern environment necessitates cross-cultural competency in order to get the best out of a multicultural team.
Global Managers: What makes them different
(Maxine Dalton)
John Smith is sitting at his desk in New York City. The phone rings. It is the British plant manager in Beijing announcing that the plant is closed down because workers are demonstrating against the accidental bombing of their embassy. John turns to his e-mail. There is a message from the plant manager in Mexico. Inflation remains rampant and employees are once again complaining that they are not making enough to pay their ever-increasing rent. The phone rings again. The Saudi Arabian plant manager in the U.K. informs him that consumers are becoming increasingly resistant to the idea of genetically engineered foods. John leaves to go to a meeting, then turns back to his office to ask his secretary to arrange a conference call of all plant managers. This call will take place across 12 time zones. John knows this means that he will be up at 3 a.m. to participate in the call. The secretary reminds him that he will be flying to Mexico on Monday for a five-day stay and then going on to England for an additional week. She wants to know if John wants the call scheduled before he goes or while he is travelling….
And so it goes:
John Smith is a global manager. He lives in New York and his office is in New York but he manages across distance, country borders and cultural regions through the use of telephone, e-mail, fax and frequent airplane trips. Every time John picks up the phone, gets off the airplane, or logs onto his e-mail, he is faced with a management issue – as is any manager – but John must assess and respond to each issue through the ever-shifting lens of distance, country and culture.
In: Success for the New Global Manager: How To work Across Distances, Countries, and Cultures, New York 2002, p. 5
It is within this context that the idea of leadership is being challenged. Our conceptualization of who a leader is, what they do and how they do it is not shared by all. Today’s leaders need to adapt to leading and managing people of different cultures; they need to listen to the voices of the people as well as understand what those voices may actually be telling them. In the essence is the crux of the challenge; when people perceive the world, communicate and view their leaders in different ways, the leader’s ears may be ringing with misunderstood messages. The leader will come across cultural issues in many different guises. In the following, there are some guidelines how to behave correctly in this context.
The role of a manager is evolving from the needs of companies operating on the international stage. The complexities of globalization brought to the area of management are great and require the 21st century manager to adapt in order to offer modern solutions to modern problems. One area in particular of growing importance is intercultural management skills.
The majority of companies can no longer escape the necessity to buy from, sell to or work with people from different cultures. Multinationals have offices spanning the globe; manufacturers increasingly rely on foreign markets and distributors; services and products are no longer solely marketed to native audiences. In short, very few businesses escape the need for intercultural communication. As a result, companies are increasingly recognizing that, in order to grow, diversify and retaining a competitive advantage, intercultural management skills are crucial, especially for an intercultural manager.
Internally, he or she needs to be able to act as a medium between senior personnel and staff; communicate clearly and effectively with colleagues; build and nurture efficient intercultural and transnational teams and display strategic global thinking. Externally, an intercultural manager must demonstrate business acumen with a framework of intercultural awareness to supervise entrance into foreign markets, oversee the proper selection, mentoring and guidance of company.
The intercultural manager is therefore tasked with the responsibility of ensuring that communication is clear, coherent and free from intercultural misunderstandings on all levels. In order to achieve this, the intercultural manager must possess certain key attributes. These are namely intercultural awareness, flexibility, capitalizing on differences and patience.
The following 10 tips on intercultural management are meant to provide a starting point to managers dealing with culturally diverse teams. They might only touch the surface, but can be helpful especially right at the beginning of your intercultural career as a manager (Kwintessential, 2009):
- Respect and Courtesy: The fundamental pillar of intercultural communication is respect and courtesy. Showing your appreciation of and consideration for others breeds a culture of openness. If colleagues request special treatment due to cultural or religious circumstances these are meant.
- Tolerance: Tolerance is the key to intercultural leadership. It is not only needed in terms of respecting people’s views and beliefs but also for different working practices and mistakes. If an atmosphere of non-tolerance is created, it is more likely that you will not be getting the best out of your employees.
- Identify Problems: If cross cultural differences are proving an obstacle to communication within the workplace, try and analyse where things are going wrong. Take a step back and look at who is involved, the context, the situation, the means of communication (i.e. face to face, email, phone) and the outcome. Only by properly recognising the root of a problem you will be able to solve it.
- Cultural Taboos: An understanding of all the cultural nuances is a tall task. An intercultural manager should therefore be aware of the major cultural taboos of his/her staff to ensure that offence or misunderstandings are not caused. Simple things such as providing a vegetarian alternative for Hindu colleagues or a food based upon the halal slaughtering method for Muslims makes a big difference for that employee.
- Know the Law: If the country you work in has legislation covering diversity issues in the workplace, familiarize yourself with these to ensure you comply. Cultural diversity can and does lead to unnecessary employment tribunals.
- Encourage Interaction: It is a good idea to encourage frequent and positive interaction within a culturally diverse workforce. This leads to stronger interpersonal relationshipss and a greater awareness of one another.
- Simplify language: Although many of your staff or all will speak and use English, thiss does not mean they are fully competent. There is a strong desire from the team memberss to improve their English knowledge. For those that speak English as a second or thirdd language it is best to avoid using slang or phrases.
- Make sure people understand: Always make sure that a message has been processedd and understood.
- Written instructions: It is always a good idea to write instructions down to ensure that a message or request is fully understood.
- Be Flexible: The good intercultural manager is a flexible manager. Understanding wheree potential obstacles lie in communication and adapting is good practice. For example, graphics are sometimes a more useful way of presenting information. So, rather than using text to explain health and safety issues, simply use illustrations that can be grasped across cultures.
“Leadership is a matter of having people look at you
and gain confidence, seeing how you react.
If you’re in control, they’re in control.”
(Tom Landry)
7.8 The experts’ view
Lisa-Marie Korth, Christina Schlabritz, Julia Segger and Gabi Wegner, students of Baltic Management Studies at the University of Applied Sciences Stralsund had the chance to question two internationally experienced managers about their experience with intercultural leadership.
7.8.1 Interview with Juergen Dlugi, CEO, Konecranes
Juergen Dlugi, the CEO of Konecranes has a wide range of Intercultural knowledge. He has worked in Finland, Spain, France, Egypt, Indonesia and many other countries.
Students: What is your understanding or personal definition of leadership?
Juergen Dlugi: I think a leader is a person who is guiding or let’s say motivating other persons. He is someone who is giving them a direction, who is taking care of them and who is helping them to achieve their goals. Now leading by example you know I would like to refer to one of my favourite sayings. You need to be an example to your people to motivate them, to guide them. People need to look up to someone, they have to find something positive in the person, something they like, it may be because of his personality or his character but it can also be because of his professional career or education.
Students: So, you think characteristics and behaviour definitely matters for being a leader?
Dlugi: I would absolutely say that. There are two issues. Basically, the personal thing, you know, the charisma, the empathy. And the other one is the professional side. What have you achieved in your career before, how can you lead your people? I mean you lead your people because you have experience. Probably, you have been to similar things before and that’s why you maybe can encourage them. So to sum it up: One is the personal thing and the other one is the professional thing.
Students: Would say that this assumption of charisma and education is common all over the world? Does it play the same role everywhere?
Dlugi: Of course, I would say the best thing is if you have a good mixture. Charisma as well as education is important but for me the personality is more important than the education. On the other hand you need also a high-qualified educational background to lead a team. You definitely cannot be a successful leader if you do not know anything about the business.
Students: How important is it to be prepared before you go abroad?
Dlugi: I would say it depends on the country where you are going. In general, it is important to be prepared. If you for example go for a short business trip to Turkey or Indonesia there are some “No-Goes” you have to know beforehand as touching Russia for business you should know that you will be offered some vodka during the business dinner. There is a big difference if you only go on a short business trip to a foreign country or if you plan to stay there longer. If you live in a foreign country you need to be much more systematic and well prepared. Furthermore, a good cultural understanding is needed and very important for success in business. For example in Germany or Finland it is more important to be technically well prepared than it is in Spain or Latin America where the people have more time and you can have an open discussion and will find the technical topics.
Students: Did you work in a country where religion influenced your daily business life strongly?
Dlugi: Yes, I have some experience where the religion influences the business as e.g. in Egypt and Indonesia. Of course you have to know for example that alcohol is forbidden, or that you don’t give the hand to the wife. So, some behavior issues are always important to know when visiting another country.
Students: Do you think that people who go abroad should adapt their leadership style to the different countries and religions?
Dlugi: I don’t think that adapt is the right word for that. You have to keep focus not only on religion but also on the local habits. Sometimes we mix up those two topics: religion and social habits. I always put habits before religion because that is how the culture and society developed in that country. I totally agree that respecting the other culture is a very important issue. I had the experience that very small things often matter the most as e.g. going to Barcelona and not being interested in soccer at all. That would be strange for the Spanish people living there. Due to my personal experience I would say that people in foreign countries accept that you have different attitudes and you do not need to do everything what they do. But you always need to be polite. In France they e.g. serve the brain of a sheep for lunchtime and I actually couldn’t eat it. But it was not a problem because I dealt with it in a professional and respectful way and explained why I cannot eat it.
Students: What would you personally say, was the biggest challenge abroad?
Dlugi: This is of course something that is individual for everybody. Every person is different and everyone has his own challenge. For me, it was sometimes pretty hard when I worked for the Finish company. I needed to slow down and not rush into conclusions. So I needed to take a little bit the speed out. That’s why it for me personally will even be more challenging to deal with countries like Japan where business is more slow and where people need a little bit more time thinking about business.
In: Korth/Schlabritz/Segger/Wegner, „Leading across different countries – with examples form Russia, China, Japan, Germany, USA, India and the UAE“ (unpublished assignment), Stralsund, 2014, pp. 26ff
“The people who are crazy enough
to think they can change the world
are the ones who do.”
(Apple’s “Think Different” commercial , 1997)
7.8.2 Interview with Steffen Keil, Siemens Saudi Arabia
Steffen Keil is the Saudi Arabia’s country head of Sales Engineer and Advisory Expert Engineer in the Energy Sector at Siemens and has also gained international experience in Indonesia, South Africa, South Korea, Israel, Kuwait and the VAE among others.
Students: How did the leadership style within the different countries change?
Keil: Compared to Germany where everybody and everything sticks to a plan, working abroad is completely different. The democratic leadership style of Germany cannot be taken on because of the different religious and cultural influences of the different countries. Even the climate plays an important role during the everyday work. To develop a good working environment it is important to consider other persons and being respectful of their cultural values.
Students: How is the relationship to your employees and are there advantages/disadvantages an international team brings up?
Keil: My team consists of many different people from all over the world. From my point of view there are no recognizable advantages or disadvantages an international team offers. Teamwork is the most important key driver for successful international business. The working atmosphere at our company is always friendly and based on team spirit. In some countries, e.g. the Oman, one is forced to have a certain percentage of local people. Nevertheless, on average, there is no nation which is numerically superior but it differs from project and country. In Saudi Arabia, my team consists of many Chinese engineers.
Students: Which kind of leadership style does Siemens follow in Saudi Arabia?
Keil: First of all, it is important to know that Saudi Arabia is a monarchy. Following the authoritarian leadership style most of the time but since Siemens is a German company the democratic leadership style plays an important role too. Also the basis of comparison is the assumed level of bureaucratic formality within Saudi Arabia.
Students: What kind of influence does the religion has, especially the Islam, considering the leadership style and working conditions?
Keil: The Islam is a very important driver when it comes to leadership styles and working conditions, especially the hours of prayer influencing the work. During Ramadan the working hours for Muslims are reduced to 5 working hours because of the Lenten period. A decrease of the labour productivity is also visible. All other foreign employees, whether they are Muslims or not, also have to conform to the local rules and laws. It is not allowed to drink, eat or smoke in public. Breaking the local Ramadan rules will have drastic consequences such as flogging, prison or other penalties. It is also important to know that no body parts should be exposed or even outlined by tight clothing, no matter during work or during free time. When you are invited in a Saudi Arabian home, be sure to accept the invitation and bring a gift for your hosts.
Students: What are the most important features to become an international leader?
Keil: For me the 7 most important features are assertiveness, sensitivity to other cultures and religions, high sense of responsibility, fairness, kindness and honesty towards the team and a positive charisma.
In: Korth/Schlabritz/Segger/Wegner, “Leading across different countries – with examples form Russia, China, Japan, Germany, USA, India and the UAE” (unpublished assignment), Stralsund, 2014, pp. 79f
Extract from an interview with Rüdiger Baumann from Bavarian TV alpha (recorded 04/11/2008)
Baumann: Now I would like to ask you about the influence of religious questions in this intercultural context. How important is religion in general and which role does it play in international business? You just came back from India where Hindus and Muslims live together, but not always peacefully. What is your opinion?
Rothlauf: First of all, you have to be fully aware that religion is an issue that definitely can’t be ignored. Which direct impact those religious questions can have in the everyday life of an international manager will be demonstrated by the following example: Does it make sense to arrange a meeting with Indian managers in Mumbai in mid-November or is it a good time to fix an appointment with Vietnamese or Chinese managers around the middle of February either in Germany or in the relevant Asian region? There is only one answer and it is a simple “no”. Why? In India they celebrate at this time Diwali and the mentioned two Asian countries celebrate in February their New Year! Let me just pick up another example. If the holy month of Ramadan starts, the Muslim world celebrates this as an outstanding religious event. During this time they do not smoke, either they do not drink or eat. How can a business meeting during this time become a successful manifestation? Be aware of the feelings of your counterparts. Wish the Hindus in India or elsewhere a “Happy Diwali” or send your Vietnamese friends a “Chuc mung nam moi” or greet the Muslims with “Kull am wa antum bichair”. This is the right intercultural behavior and this makes the difference between those who are interculturally sensitive and those who think they can neglect these religious questions.
“A leader… is like a shepherd.
He stays behind the flock, letting the most nimble go out ahead,
whereupon the others follow, not realizing
that all along they are being directed from behind.”
(Nelson Mandela)
7.9 Case Study: International assignments
Imagine the following situation: You are working for the company “Roschmann” in the department of international assignments. Within this newly established department located at the German headquarters, you are responsible for India. Only recently Roschmann has bought a local Indian company which should now be integrated into the corporation. This Indian company has several locations and has not yet had any experiences with expatriates. In about three months’ time, it is planned to send 25 German employees from different departments, hierarchy levels and corporate locations to India. On average, those international assignments are scheduled for three years.
Task:
- A) Develop a concept for the future assignment process, which should consist of three modules referring to the phases of expatriation:
- Preparation in the home country
- Support during the international assignment
- Return to the home country – including a potential earlier termination of the assignment
The individual preconditions of employees (length of service with Roschmann, private environment, foreign language skills etc.) have to be taken into account.
- B) Develop a manual of “Do’s and don’ts in India” (especially with regards to intercultural communication), which should be handed out to all expatriates posted to India.
- C) Create a list of “Ten Commandments for international travelers” (culture-independent).
Present your results to your manager and your colleagues including a handout.
In: Rothlauf, J., Seminarunterlagen, 2006