Leadership and Cultural Diversity 10 November 2012
Managing DiversityAny organisation that embraces diversity could be considered to be behaving in a socially responsible mannerSocial responsibility is considered to be a broader concept that relates to an organisation’s impact on society
Management of Cultural Diversity Organisational culture - valuing differences & practicing cultural inclusiveness Some of the factors that cultural diversity can promote/assist: Can offer a marketing advantage Recruiting and retaining talented people Unlocks the potential for excellence Offers a creative advantage
Key dimensions of differences in cultural values 1. Individualism vs collectivism 2. High power distance vs low power distance 3. High uncertainty avoidance vs low uncertainty avoidance 4. Long term orientation vs short term orientation 5. Masculinity vs femininity 6. Informality vs formality 7. Urgent time orientation vs casual time orientation
Individualism vs Collectivism Individualism is a mental set in which people see themselves first as individuals and believe their own interests and values take priority Collectivism is a feeling that group and society should be given the highest priority Australia, New Zealand, USA, Canada, German and the UK are individualistic cultures Japan, Indonesia, Korea, South American and Middle countries tend to be collectivist in their culture
Power Distance This refers to the idea that different members of an organisation have different levels of power. High power culture - leaders make decisions and group members comply Low power culture - employees do not recognise the power of leaders as readily High power culture - France, Korea, Spain, Japan and Mexico Low power culture - USA, Australia, NZ, Canada and Scandinavian countries
Uncertainty avoidance People who accept the unknown, tolerate risk and unconventional behaviour are said to have low uncertainty avoidance- they are not afraid to face the unknown High uncertainty avoidance means that people want predictable and certain futures Low uncertainty avoidance countries include: USA, Australia, Scandinavia and India High uncertainty avoidance countries include Japan, Italy, Argentina and most of Europe
Masculinity vs Femininity Masculinity refers to an emphasis on assertiveness, success and competition Femininity refers to an emphasis on relationships, caring for others and a high quality of life Masculine countries include: USA, Japan, Italy, Italy and India Feminine countries include: Sweden, Denmark, Korea, France and Spain
Long term vs short term orientatation Long-term cultures take the long-range perspective, are more thrifty and look at investments in the long term Short-term cultures take a short term perspective, not thrifty and expect immediate returns China and Japan take long term view USA, France and West Africa tend to be short term
Formality vs Informality Formality attaches importance to tradition, ceremony, social rules and tank Informality places lower importance on these Latin and South America are very formal USA, Australia and New Zealand are much less formal (UK much more formal than Australia)
Urgent time orientation vs casual time orientation Urgent time orientation is where time is perceived as a scarce resource people tend to be impatient Casual time orientation is where time is not perceived as being as important and people tend to be patient USA, Germany etc tend to be urgent time orientation South Sea islands tend to be more casual with time as do Latin American cultures
How these effect leadership These impact on leaders-followers in many ways: Rewards and recognition Power relationships Formality of dealings Time orientation Casual relationships
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