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Local leadership lessons
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Cross-Cultural Business Skills minor
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Local Leadership Lessons
Comparing leadership practices in eighteen countries
Cross Cultural Business Skills Minor
Local leadership lessons
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Table of Contents
Preface ........................................................................................................4
Leading across borders ................................................................................5
Brazil ......................................................................................................... 16
Chile .......................................................................................................... 25
Costa Rica .................................................................................................. 32
Hungary..................................................................................................... 40
Israel.......................................................................................................... 48
Japan ......................................................................................................... 56
México....................................................................................................... 65
Morocco .................................................................................................... 73
Pakistan..................................................................................................... 82
Qatar ......................................................................................................... 89
Serbia ........................................................................................................ 98
South Africa............................................................................................. 106
Switzerland.............................................................................................. 113
Thailand................................................................................................... 119
Turkey ..................................................................................................... 128
Ukraine.................................................................................................... 136
United Arab Emirates .............................................................................. 141
United States of America......................................................................... 148
About CCBS.............................................................................................. 155
Consultation methodology ...................................................................... 156
Bibliography ............................................................................................ 157
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Preface
Welcome to an intercultural benchmark on local leadership practices in no less than
eighteen countries. Our world is internationalising at a fast pace, and more and more
of us choose to find work elsewhere. As a result, we find ourselves confronted with
culturally diverse management expectations. After working on this book, we now
understand how knowledge of such local leadership conventions, can represent an
important competitive advantage. This book is the result of the collaborative research
of eighty-eight participants to the ‘Cross-Cultural Business Skills’ elective (minor)
course. They have explored what leadership entails by doing a one semester - desk
and field research. Together they have asked thousands of business professionals in
selected countries on their preferred managing practices. The result of their efforts
constitutes a relevant reference. We are grateful that this wonderful group can now
share their gathered knowledge with interested people from around our world.
We first and foremost would like to thank all individual co-authors for their
thoughtful research, and their constructive writing for this very first edition of ‘Local
Leadership Lessons’. Additionally, we would like to express our deep appreciation to
all survey correspondents and interviewees who helped, despite their busy schedules,
to make this innovative and applied way of education possible. We also gratefully
acknowledge that this book would not have been here, without the engagement of
programme manager Hans Seubring-Vierveyzer. Then we owe a debt of gratitude
to Kyara Metz, Hannah Fischbach, Aysha Shabbir and Shujaat Chaudhary for their
altruistic support. Finally, we would like to thank Isabella Venter for her hard work
in improving our academic writing, and Natalia Kempny and Susanne Koelman for
their much-appreciated assistance. At last we take responsibility for any errors
that may have inadvertently found their way into this book. May we close here,
by wishing you all a remarkable read?
Sander Schroevers & Aynur Doğan
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Leading across borders
Alan Nha Le, Jesse Bijl, Julia Koene & Karlijn Stoelinga
The world is at our fingertips thanks to the growing influence of innovative
technology in daily lives. Practicing international business has become relatively
easy since we have access to communication technology. This makes it possible
to collaborate with team and board members – from across the table to across
the globe. Though companies cross beyond borders, not every employee has a
global mindset. Even if communication and collaboration tools are available,
cultural differences cannot be overcome by technology. Cultural business skills
are imperative to today’s global society.
According to Erin Meyer, author of The Culture Map (2014), managers who are
working across the globe, face the complexity of the discrepancies in cultural
perspective. A manager with cross-cultural leadership skills should be able to
identify and anticipate cultural differences in order to have a competitive
advantage over other businesses. Knowledge of national cultures is not enough
as there are also ethnic, religious and professional cultures. However, cultural
differences should not be considered a problem, but as the challenge to deal
with a multicultural context (Philips & Sackmann, 2002). The principal objective
of this book is to educate the read the reader on a variety of culturally defined
aspects of local leadership within eighteen countries worldwide.
Cultural intelligence
The capability to effectively lead groups of people with different cultural
backgrounds, gender and age should not be underestimated. A multitude of
academic research in organisational behaviour over the last two decades
demonstrates that cultural intelligence, or cultural quotient (CQ), is one of the
success factors of global leadership. Cultural intelligence is defined as a person’s
capability to adapt as one interacts with others from different cultural regions,
which has behavioural, motivational and metacognitive aspects (Earley, Ang &
Van Dyne, 2003). People with higher CQs should be able to successfully adapt to
any environment by using more effective business practices than people with a
lower CQ. This cultural quotient consists of three aspects: cultural knowledge,
cross-cultural skills and cultural metacognition. There are numerous assessments
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available to test your CQ, which have been listed in CCBS’ publication: ‘A Cross-
Cultural Compass: Perspectives of acquiring and measuring cross-cultural
competence’. To become a successful global leader, a certain level of cultural
knowledge is a necessity, which is the purpose of this book, Local Leadership
Lessons.
Country profile composition
This book consists of 18 country profiles, each describing the local. All profiles
have been written in a standard format as to create a clear overview of the
cultural features while painting a contrast when comparing these leadership
profiles to each other. The country profiles are constructed in the following
format:
▪ Country introduction
▪ Leadership profile: A depiction of how leadership is defined in
this country.
▪ What characterises an outstanding leader: How do people
perceive a perfect leader?
▪ Power distance
▪ Survey results and what local respondents say
▪ Local leadership literature analysis: in-country bestseller
▪ How to achieve leadership empathy
▪ Methods of feedback
The spread with the world map on the next two pages offers for each of the
researched eighteen countries a top-3 of leadership must-know features,
based on the research by each country profile team.
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Cross-Cultural Business Skills minor
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KyaraMetzforCCBS,2017
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Research methodology
Insights around cultural aspects of leadership were gathered by conducting
country-specific literature research, in-depth interviews with 58 local managers
and a global online survey about leadership (CCBS Survey, 2017). For the current
survey 920 qualified respondents participated (after deleting the uncompleted or
non-qualified samples). The survey comprised of both multiple choice and open
questions, in total 27 questions also around general themes like the respondent’s
background, education and position. The respondents were likely to represent
professionals in management positions, and their responses inform on country-
specific leadership preferences. This quantitative research is further
strengthened through both literature research and primary research. Literature
research was used to find sources of relevant information in both scholarly
articles in journals and books, simultaneously the authors of each chapter
conducted primary research in the form of interviews. These combinations of
research methods have created an extensive and solid foundation for the validity
of this book and its contents. This issue is part of an ongoing academic research
out of which already the following titles have appeared: (i) European Leadership,
(ii) Worldwide leadership lessons, (iii) Leadership Lab, (iv) Leadership Localisation,
and now (v) Local Leadership Lessons. For this research the responses of more
than 2,500 qualified respondents (at boardroom level) so far have been studied.
In total over 6,000 respondents participated after visiting our survey link, but
more than half were not used because of stopping the survey too early, or their
background or IP-address did not match our target group.
Cultural similarities and differences
The research conducted this semester shows how leaders from different
continents and countries practice leadership. As research from the 2014 GLOBE
study, among others, indicates: people from a particular country tend to share
cultural norms that are distinct from other countries (or even from regions within
that same country). This emphasises the importance for leaders to adapt their
leadership style to be country-specific as well as region-specific. Anticipating
in-country differences can be very challenging. To overcome these challenges
globalised leaders need to cope with power distance, empathy, feedback, gender
issues. In sum, knowledge of the local leadership expectations and the ability to
recognise cultural similarities and use them as an advantage.
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Country Profile components
The sections below introduce the theoretical frameworks behind the respective
paragraphs that each country profile lists, offering a better insight per chapter.
Power Distance
The level of inequality between a more powerful and a less powerful individual
belonging to the same social system is called ‘power distance’ (Mulder, 1977,
p.90). Low-power distance cultures minimise inequalities among individuals in
terms of social status, privileges and status symbols; whereas high-power
distance cultures emphasise prestige, wealth and power (Sharma, 2010, p. 8).
According to Hofstede Insights (2017), Chile and Thailand both score quite high
on power distance. Thailand is believed to be partially influenced by the Buddhist
doctrine; Chile is supposedly affected by the seventeen years of dictatorship that
the country has experienced. Societies with a high-power distance are more
likely to accept a hierarchal structure, and the CCBS Survey (2017) supports this
statement. On the contrary, it also shows some intracontinental differences.
Leaders from Qatar and the Arab Emirates, both distinctive in high-power
distance, respond differently when asked if they prefer to keep their personal
distance from their employees in order to be respectful. Qatari leaders tend to
keep less distance than their colleagues from the Emirates.
Another aspect that characterises high-power distance is the use of honorifics
towards leaders (Nishishiba, 2017, p. 20), which is common in Japan. Japan
scores relatively high on power distance and uses a wide range of honorifics.
However, there are countries that seem to score fairly high on power distance
yet subordinates are allowed to address their leaders by their first name. While
Chile scores sixty-three on power distance and Brazil scores sixty-nine (Hofstede
Insights, 2017), the CCBS Survey (2017) shows that more than sixty percent of the
Chilean respondents agree that employees call their leader by the first name.
Similarly, more than ninety percent of the Brazilian respondents agree to this
statement as well. It appears in some cultures, there is a weak correlation
between high power distance and calling their leader by first name. This is due to
qualities like warmth, kindness and personal involved leaders are appreciated.
Leaders from low-power distance countries, like Israel, state that it is normal for
subordinates and leaders to be considered equals and address each other by the
first name. Israel is an example of a country with a low hierarchal level, with a
score of thirteen on the Power Distance Index. Despite this low score, more than
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half of the executive level respondents are strictly against keeping a distance
from their subordinates (56%) and a little over one third (38%) agree to some
distance (CCBS Survey, 2017). This indicates that the majority of Israeli managers
prefer a certain level of authority and respect. Another country that scores low
on power distance is Switzerland. Eight out of ten Swiss survey participants admit
that employees greet their leaders by the first name (CCBS Survey, 2017). This
low level of hierarchy results in equal harmonious relationships between superior
and employee, based on trust.
Empathic leadership
There is no universal definition of the word empathy as the word itself is
culturally defined based on varied perspectives. Empathic leaders are able to
sense others people’s emotions and trade places with a fellow human being
(Goleman, 2017). Not only does empathy help in establishing a good relationship
with friends and family, having empathy is key to effective leadership, according
to Daniel Goleman (2017). Colleen Kettenhofen (n.d.), an international workplace
and employee management expert, supports this statement: “Empathy is a
critical skill for effective leadership for one, simple reason – trust” (n.p.). She
continues to explain that empathy will result in a strengthened relationship
between leader and employee, as well as improved collaboration and
productivity.
Even though empathy is a fundamental competence for leaders, it is achieved in
different ways depending on which country one is in and its culture. Within Latin
American countries, specifically Brazil, Chile, Costa Rica and Mexico, an
interpersonal relationship has to be established in order for empathy to be
achieved. Brazil and Mexico explicitly mention that those who want to achieve
empathy need to accept social invitations. Coincidentally, Turkey puts an
emphasis on similar factors to achieve leadership empathy such as trust, warmth.
No trust means no loyalty from the employees, which will lead to unrest among
other workers (Lewis, 2006). Whilst Chilean managers agree to all these aspects,
they are expected to draw a line between work and personal matters, as
extensive socializing is seen as inappropriate.
Although empathy is achieved by interpersonal relationships in Latin American
countries, there are still countries where leadership empathy is achieved in a
completely different way. While Latin Americans are open to physical closeness,
quite the opposite is acceptable in Japan. Japanese people prefer to keep a
distance and avoid too much body language. Moreover, hierarchy plays a big role
in Japan. Honorifics should be used to show respect to those at higher
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levels. Despite the fact that these complete opposites exist, there are also
similarities between Latin America and Asia.
Another opposite from Japan is Israel. It is noteworthy that Japan scores fifty-
four points on power distance and Israel scores thirteen (Hofstede Insights,
2017). While Japanese employees are expected to keep a distance from their
bosses and address them with the right honorifics, Israeli bosses achieve
empathy by viewing their employees as equals. In addition, Israelis prefer to be
straightforward, direct and sincere, while Japanese people live in a high-context
culture to avoid disrupting the harmony. In the United Arab Emirates, trust and
interpersonal relationships are much appreciated as it means a level of comfort-
ability with their business partner. A relationship between a leader and
employees should not strictly be ‘business only’, as the wellbeing of employees
is considered a priority of leaders from the Emirates (CCBS Survey, 2017).
Methods of feedback
Feedback is imperative when it comes to progress and improvement in
leadership. It comes in a wide variety of forms, but unfortunately, not every
method is applicable to everyone. As there are many different cultures all around
the globe, it is of absolute importance to take into consideration where one is
located in the world when giving feedback.
On this large planet, with approximately two hundred countries and even more
cultures, giving feedback is no simple matter. Though countries differ from one
another, they also share similarities in terms of some cultural aspects. One
example is the ‘concept of saving face’. This concept, originating from China, can
be interpreted as the value by which people and society measure a person’s
reputation, dignity and status (Teon, 2017).
The existence of this concept increases the difficulty of giving feedback because a
misunderstanding of how this concept affects communication in a culture can
easily lead to a situation where another party is offended. Constructive feedback
is a vast grey area where one can easily make a mistake. In Japan, people tend to
be very indirect out of respect and fear to insult someone. Consequently, giving
feedback is done in a very indirect manner. An interesting aspect of giving
feedback in Japan is that the feedback given should be acknowledged by the
receiver so as to save face. Yet, according to the CCBS Survey (2017), when asked
if leaders prefer to hear criticism in an indirect manner there is a surprisingly high
percentage of Japanese leaders that disagree with this statement.
Though the concept of saving face is mostly prominent in Asian high-context
cultures such as Japan and Thailand, it is also present in countries outside of Asia.
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One example of this is in Latin America. In Brazil, the concept of saving face
works from a different perspective, as it is not about reputation or status.
Instead, saving face is about a person’s favourability and popularity within a
group. This is why people in Brazil mostly try to avoid giving constructive
feedback. In other countries, like in Mexico and Chile, people are quite sensitive
when it comes to feedback and will give feedback in an indirect manner, but only
if absolutely necessary. Even if the intention of saving face is slightly different,
the results are largely the same. If feedback is conveyed, it will be in an indirect
manner in private, behind closed doors in order to avoid losing face by either
giving or receiving feedback. A lot of cultures are sensitive to criticism, and the
people from these cultures therefore associate a negative connotation with
constructive feedback. In Costa Rica, constructive feedback is almost always
avoided in the hope that the problem will fix itself. When giving feedback in
Costa Rica, it is important not only to take into consideration the person you
want to give feedback to, but the group as a whole to ensure that there is no
feeling of inequality among them. This kind of consideration might be quite
difficult to achieve if one is used to giving feedback in countries with a more
direct approach, like Israel, where people in general are very direct. Israelis tend
to say what they think and this quality does not change when giving feedback.
In the majority of the world, positive feedback is always welcome, but that
certainly does not account for all countries. In Turkey, giving positive feedback is
seen as something to be avoided out of fear of employees becoming arrogant or
indulgent. On the other hand, constructive feedback is seen as nothing more
than negative comments. The opposite of Turkey is South Africa where feedback,
positive or constructive, is always encouraged, as they believe it to be the crucial
factor for change in the working environment. Feedback is a delicate yet crucial
piece of the puzzle that is cross-cultural business as there is no right or wrong
way, only cultural differences. The concept of saving face has a fundamental
impact on how one gives feedback on a global scale and should always be taken
into consideration. It is also important to note that it is not only about how one
gives feedback but also to whom the feedback is given.
Gender equality
Ban Ki Moon, Secretary-General of the UN (UN Women, 2015) announces an
important message about gender equality: “A quality education, a decent job,
access to healthcare and a life free from violence and discrimination are
necessary foundations for women and girls to be equal partner with men and
boys in every aspect of life,” More and more companies are striving for diversity
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as a part of their corporate responsibility programme. The UN encourages
governments and businesses to help transform our world with the Sustainable
Development Goals (SDGs), which were introduced in 2015. Gender Diversity and
to Reduce Inequality are two out of the seventeen SDGs. Companies that
stimulate diversity are in fact making a positive impact, which the UN encourages
and expects from UN member states (United Nations, 2015) and every other
country on this globe. According to the research of MSCI more female leaders
were functioning in global board positions in 2015 compared to 2014 (Lee,
Marshall, Rallis & Moscardi, 2015). Grant Thornton (2016) continues with global
research and has observed a slight increase in women in senior positions globally
in 2016 compared to 2015. Though this increase means progress, it is not exactly
fast-paced as it only went up two percent from twenty-two to twenty-four
percent. Despite all the effort of companies worldwide to create gender equality,
gender disparity is still an urgent matter today.
Every leader should take into consideration what women have to offer in senior
and top-level positions. Both MSCI and research by Grant Thornton points out
that companies that employ women at the most senior operating levels
outperform their non-diverse counterparts and create greater shareholder value
(Lee, Marshall, Rallis & Moscardi, 2015; Thornton, 2016). Every culture has a
different perspective on the leadership skills of women. Analysing the CCBS
Survey results (2017), the differences are quite distinguishable from respondents
when asked if men and women have equal access to senior leadership positions
in the country and if there are differences in leadership style. It is safe to
conclude that women in Israel and Thailand are more likely to acquire a senior or
top position than women in Chile, Mexico and Turkey. A female Chilean
respondent confirms the gender disparity in top positions in her country, by
exemplifying the issue of female discrimination in the hiring process: “Even if a
woman is academically better suited for the position, she might not get hired due
to a strong unconscious bias present in the working environment” (CCBS Survey,
2017).
Among the four Latin American countries that participated in the CCBS Survey
(2017), both Brazil and Costa Rica are more optimistic about the possibilities
for female leaders than Mexico and Chile (Figure 2: Gender diversity).
Costa Rica puts a strong emphasis on equal opportunities. According to the
GLOBE (2016) research project, Costa Rica aims at achieving higher gender
equality and collectivism. Regarding equality, gender does not seem to be
a relevant issue as many women are in powerful positions.
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Q21: In my country, men and women have
equal access to senior leadership positions:
Figure 2: Survey results on question regarding gender-equality
in management positions in Latin America.
KyaraMetzforCCBS
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Brazil
Alisa Basyuk, Olga Henrique & Rachid Seddiki
Brazil as located in South America is renowned for its strong economy and
cultural diversity. The word Brazil means ‘red like an ember’, named after a tree
called ‘Pau-Brasil’ that grew in abundance on the Brazilian coast in the early
colonial times. Modern Brazilian export economy has speedy increased in just
few decades, where export countries are China, the United States, Argentina and
the Netherlands. Present key exports products are soybeans, coffee and corn.
As diverse country with mixed backgrounds consists of different races and
ancestries, indigenous groups, Africans and Asians including Europeans. Its
population contains more than two hundred million where the official spoken
language is Brazilian Portuguese. Due to these divergent traits, Brazil has become
a country that varies in traditions, values and beliefs which are in
correspondence to a saying Depois da tempestade vem a bonança which means
‘after the storm comes to the easiness’. This demonstrates the optimistic
mindset of Brazilians and as a result, this chapter shows important leadership
aspects in the business environment.
A Brazilian leadership profile
According to the Brazilian journalist Cristiane Correa (18 October 2017), most
businesses in Brazil follow the paternalistic leadership style. Expressively, this
approach indicates that the person in authority acts as an model parent, when
giving attention to the social needs of the subordinates, restrictions on
responsibilities and freedom the subordinates. Additionally, according to
Greenberg, Recchia and Santos (n.d.), Brazilian leaders are extremely assertive,
empathetic and have a high sense of urgency. Therefore, to be successful in
Brazil, leaders are expected to adopt a more attentive style, show compassion
and be friendly towards their subordinates. In a nutshell, leaders have to create a
sense of belonging and trust with employees in order to achieve a healthy
organisational culture and behaviour. As a result, the leader is most likely to
receive loyalty from subordinates. This is necessary because it helps motivate
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and induce team spirit among employees (Correa, 18 October 2017).
Another important key factor that leaders should know when dealing with
Brazilian teams is to have an outlining structure. Managing and leading a
Brazilian team often requires a certain leadership style that revolves around
restraint and order. One of the reasons for adopting this behaviour can be
evidenced by the way Brazilian meetings are held. Brazilians tend to be unruly,
with several people speaking at once. Therefore, they have a hard time reaching
a consensus. As a result, this requires team leaders to balance themselves well
and adjust accordingly. Because of the perceived Brazilian unruliness, there is a
need for strong and outspoken leaders that can inspire and motivate
subordinates. Furthermore, collaborative leadership allows employees to be
open towards each other and allows for room to think out of the box in a
business context. Leaders who exhibit this type of leadership are more likely to
be seen as democratic, affectionate and inspiring figures according to Robert
Moran, Philip Harris and Sarah Moran (2011). Though present old-fashioned
paternalistic leadership style, successful national examples such as Jorge Paulo
Lemann, Marcel Telles and Beto Sicupira, inspire Brazilians to become more
results-oriented in business (Correa, 18 October 2017). In an interview, Correa
reveals that Brazilian leadership style is going through a transition: “for a very
long-time, profit was not a priority in Brazilian companies, they used to
concentrate on the revenues” (Correa, 18 October 2017), which refers to
a short-term strategy.
The last important part of the Brazilian leadership profile is the family factor,
which is often overlooked in Brazil. This component is pretty extensive that
family-owned businesses constitute more than fifty percent of the market, as
stated by Oliveira, Miranda and da Silva (2016). In this form of business, family
ties are more likely to provide substantial weight in decision-making
mechanisms. Therefore, nepotism tends to be commonplace. According to
Segura and Formigoni (2014), family-owned business is characterised by high
levels of risk avoidance when compared to non-family owned companies.
As Dirk Blom a Dutch consultant active in Brazil states: “You have the old
generation where you now see in politics that a lot of the old generation has not
always done things fresh, that old generation is very decisive, they just define it,
not as much leadership as dictatorship, they spin it purely on relationships and
are more nationally oriented, if you look at the new generations of managers that
are people who have generally studied in the US who are more international, will
show better leadership as you expect it” (Blom, 17 October 2017).
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How Brazilians characterise outstanding leaders
Notably, the figures from the CCBS Survey (2017) demonstrate that leaders
themselves believe that there are three very important aspects necessary to
succeed in Brazil as a leader. These aspects include intellect, charisma and access
to the right information (CCBS Survey, 2017) in correspondence to more than
eighty percent of the respondents’ answers. Hence these qualities illustrate the
overall attributes that a leader must have to succeed in the Brazilian workforce.
On the other hand, the traditional coercive leadership style is still widely present
and accepted in the Brazilian framework (Globe, n.d.). Although this might be
true, sources reveal that there is an aspiration for a change. For instance,
Brazilians score high in participative leadership, meaning that they seek leaders
who will allow them to contribute with their creativity, abilities, and knowledge
in the company’s decision-making process. This aligns to what interviewee
Alexandre Costa, a Brazilian leadership consultant, believes: “The new world calls
for a leader who includes all interested parts in the decision-making process,
while also promoting mutual collaboration and open communication at all
organisational levels” (Costa, 17 October 2017). This finding is also consistent
with the statistics from the CCBS Survey (2017) where over sixty percent of the
respondents suggest that a good leader needs to be a visionary. With this
objective, there is a need for a leader to possess both high levels of empathy and
a complete or systemic vision. As a result, this type of leadership is especially
beneficial for team coordination, as it encourages active participation among all
the company’s employees. According to Costa, a “systemic vision brings many
benefits for the entire company and supply-chain as it can provide new ideas and
different ways to deal with a certain issue while considering all points of view”
(Costa, 17 October 2017). Furthermore, this style allows employees to be open
towards each other and to think outside of the box in a business context.
To summarise, Brazilian companies are starting to realise the importance of
enforcing the collective leadership style, as Alexandre Costa explains: “We can
see a change in few Brazilian companies already, where leaders are starting to
understand more about the importance of collective leadership” (Costa, 17
October 2017).
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Power distance in Brazil
Brazilians work using established hierarchies, and it is important to address
people by the correct titles as Brazil has an average power-distance culture
(Geert Hofstede, n.d.). One Brazilian professional encapsulated this in the
following terms: “The hierarchical structure in Brazil is rather centralised and has
a tall organizational structure when compared to most cultures” (CCBS Survey,
2017). In fact, power and status are still very important in Brazil and are seen as a
form of prestige (Correa, 18 October 2017). As Correa puts it: “Sometimes, you
will see CEOs that have a private elevator or bathroom, as this for some leaders,
may be seen as a form of status, although one can see that there is a trend for
change”. In accordance with the data above, the survey results also indicate that
over sixty-five percent of leaders get respectable office space and transportation
to match their position and hierarchy. Simply put, this supports Hofstede’s
theory, which argues that Brazil has high power distance (Hofstede, n.d.) where
powerful individuals enjoy showing off their superiority to a less powerful
person. Despite being a hierarchical country, employees in Brazil are not required
to address their leaders by their titles or positions. In fact, based on survey
results, approximately sixty percent of Brazilian leaders are not called by their
titles or by their position in the workplace, although titles may be used once in a
while (CCBS Survey, 2017). Presumptuously, this may be due to the fact that
leaders in Brazil prefer to have a more personal relationship with their
employees. As the data illustrates, sixty percent of respondents indicate that
they do not keep personal distance from employees in order to maintain the
right level of respect and hierarchy. Once again, this data confirms the
paternalistic style by which Brazilians lead, where in most cases, a personal
approach is acceptable and expected from superiors. Interestingly, a director of a
multinational company in Brazil claims also: “Probably, the first thing that comes
to mind, is how relevant it is for a leader to keep their employees in a very short
distance, not being ‘that guy’, who nobody really knows or cares about. It is
important to nurture relationships” (CCBS Survey, 2017). Another Brazilian leader
remarks in agreement: “A true leader needs to be as much present as he can
possibly be, developing a good relationship with your subordinates but always
respecting the level of hierarchy” (CCBS Survey, 2017). In similarity with an IT-
professional who argues: “Relationships in the workplace can be more personal
and less professional in Brazil. This is not really seen in Europe for example, where
most of the time employees do not get involved in the leader’s personal life”
(CCBS Survey, 2017).
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Survey results and what local respondents say
Over fifty managers and executives have been participated in the CCBS Survey
(2017) on leadership in Brazil. Some interesting outcomes are described as
followings. Firstly, survey results reveal that the majority of Brazilian leaders see
a strong relationship between a missed deadline and failure. About ninety
percent of interviewees believe that missing a deadline is pretty much the same
as complete failure. In contrast to literature, according to the recent CCBS Survey
(2017), three-quarters of respondents admit that they would confront their
employees if this would bring the desired outcomes. Likewise, over sixty percent
of leaders agree that they are comfortable with hearing direct criticism from
subordinates during a staff meeting, however Brazilians are very afraid of losing
face. Additionally, over three-quarter of participants believe that if a decision has
been made, it will not be changed easily. About fifty percent of leaders believe
that someone in a leadership position should have powerful decision-making
skills. Under these circumstances, it is easy to assume that Brazilian leaders might
be fearful of appearing weak towards their subordinates, and most of this can be
linked with the paternalistic approach adopted by Brazilian leaders. Since a
senior leader in the telecommunications industry justifies: “To be effective as a
leader in Brazil, you have to understand the needs of your employees and to buy
into the motivation and the goals necessary to achieve organisational goals”
(CCBS Survey, 2017). Generally speaking, Brazil is a relatively sexist country, and
it appears that this fact extends to the business environment as well. Only about
forty-five percent of professionals believe that women have equal access to
senior leadership positions compared to men. Interestingly, a great number of
interviewees reported that there might be differences in leadership style
between the two genders, as reported by one leader who asserts: “Generally,
women adopt a more caring attitude towards employees” (CCBS Survey, 2017).
On the contrary, another leader in the Oil and Gas industry claims that: “A few
women may embrace a more coercive and demanding leadership style in order to
maintain the desired respect” (CCBS Survey, 2017).
Local leadership literature analysis
In-country leadership specialist
Brazilian cross-cultural specialist Viviane Coas, specialising in training executive
and CEOs to communicate more effectively with the Brazilians, refers to the
environmental factors and the cultural traits that are often trivialised and yet
Local leadership lessons
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constitute a substantial part of Brazilian leadership style. “It is a warm
environment and at the same time very competitive where relationships are of
significant importance” (Coas, 18 September 2017). Later she adds that “It is
important to know about Brazilian history, the contrasts in the social structure
and the overall the complexity that represents the [above-mentioned]” (Coas, 18
September 2017). By the same token, corruption is still heavily found in many
Brazilian environments. Brazil is considered to have among the highest number
of homicides, human rights crises, drug-related violence and poor governance
(Mendes, 2017). Given these points, in spite of all the vivid corruption that is part
of Brazilian daily life, sources reveal that this may be coming to an end, as Mrs
Correa adds: “[Anti-corruption operations in Brazil such as the ‘Carwash’] shows
that Brazilian mentality is changing; it encourages leaders to look for a more
ethical business environment, and that is a big difference” (Correa, 18 October
2017). Brazilian society is highly collectivist, and this extends to business
practices as well. In Brazil, the focus is mostly aimed at structuring a team,
creating a shared goal and ensuring safety. This is in opposition to their Western-
oriented neighbouring countries that value a more individualist and self-centred
approach, which is not really welcomed in the Brazilian business environment.
Undoubtedly, this could mean that negotiations might become difficult if
individualistic cultures such as those in Europe do not take the time to
understand and adapt to Brazil’s way of doing business.
Moreover, based on a research paper written by Alan Gutterman (2017) and a
research article written by El Jefe (2015), leadership differs across Latin American
countries, and Brazil tends to put a lot of value on motivation and high
performance, which according to the research, is the opposite of what is seen in
most Latin countries. This means that Brazilians prefer to put a lot of emphasis
on people-oriented skills rather than just a statistical and rational approach.
In essence, Brazilians prefer to distinguish themselves from the perception that
they are part of the Latin American culture; this is also reflected in their view on
regional leadership. To communicate effectively with a Brazilian, it is of utmost
importance to participate in discussions rather than to listen intently to what a
person has to say. This is important because Brazilians put a lot of emphasis on
how a person makes eye contact, uses body language and performs other similar
gestures.
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In-country leadership bestseller
The book Qual é a tua obra? written by Cortella Mário Sérgio in 2007, is one of
the best-selling books regarding leadership in Brazil. In a nutshell, Qual é a tua
obra deals with subjects such as leadership behaviour, challenges and ethics for
leaders. The main concept of the book is to make leaders understand the
importance of creating a pleasant workplace, where humans come first. In his
book, Cortella argues that a leader should also bring tranquillity and excitement
to the workplace. The book also conveys the message that leaders need to have
an open mind to be able to understand and accept that different points of view
can also lead to good insights and do not necessarily need to be seen as a conflict
or insubordination. Ultimately, the book aims to educate leaders to create a
sense of teamwork and harmony, as opposed to using fear and resentfulness.
Local leadership book
Title Qual é a tua Obra?
Subtitle
Inquietações propositivas sobre
gestão,liderança e ética.
Author Mário Sérgio Cortella
Publisher Vozes Nobilis
Year 2007
ISBN 978-85-32635-79-2
How to achieve leadership empathy
In order to properly empathise with a Brazilian, it is of utmost importance to
realise that Brazilians have a very soft and expressive nature that stems from
their Portuguese roots. The Portuguese origin of the Brazilian people cannot be
overlooked. It is therefore not surprising that modern Brazilians are very warm,
kind and open. In return, they expect others to react in a similar manner while
interacting with them. This plays a significant role in building a good rapport with
Brazilians (Blom, 17 October 2017).
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As a consequence, Brazilian leaders must have excellent interpersonal
communication skills to forge a good relationship with their employees.
Admittedly, this requires Brazilian leaders to possess both hard skills and
emotional intelligence. It is necessary to realise that a leader must have a good
awareness of how to empathise with a Brazilian employee. With this in mind, the
key factors in empathising with a Brazilian individual include accepting social
invitations, placing relationships before products, and being flexible with time.
Due to these values, leaders in Brazil are required to get involved in the personal
aspects of employees’ lives. A leader should show interest in specific topics such
as family or personal matters; otherwise, the leader may come across as
uncompassionate (Lewis, 2016). As Correa mentions, “A bond of trust is rather
important in Brazil” (Correa, 18 October 2017). To further reiterate this, the CCBS
Survey (2017) shows that more than eighty percent of Brazilian leaders actively
spend their time taking care of the wellbeing of their team members. In return,
this forms a basis for long and fruitful team relationships. An authority that
displays focus on formality or profits may come across as rude to a Brazilian
employee. Generally, Brazilians have been known for their soft nature, and thus,
struggle to be competitive. This often requires the support of a manager to boost
the self-esteem of his or her employees. In summation, the best advice to
empathise with a Brazilian is to work with emotions and to actually mean what is
said. Leaders will inspire their employees to invest their time and effort for ideas
bigger than themselves. To maintain leadership empathy, it is crucial to create a
culture within the organisation and implement the idea that all members of the
organisation must bear in mind that the company must be bigger than one’s
personal goals. Correa emphasises: “Not only in Brazil but anywhere I believe in
leadership by example. I have seen companies where they have been told that
they must cut costs, yet the CEO would go everywhere in a helicopter or private
jet. ‘Walk the talk’ it is very simple, right? But most people do not do that.
Whatever you preach, you must do”(Correa, 18 October 2017).
Methods of feedback
Similar to Asian cultures, Brazilians are very afraid of losing face. Hence, it is from
the utmost importance to keep this in mind when providing feedback to
Brazilians. To put this in context, Brazilian professional, Hellena Velloso, a People
and Management Specialist at Nova Escola, provides more insight: “Brazilians are
afraid of giving feedback because it might make other people like them less. In
my current job, I have a meeting every week, where I sit with my CEO and she
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gives me feedback; however, it is not something that I have seen in my previous
jobs”(Velloso, 18 October 2017).
For the most part, Brazilians tend to employ a ‘sandwich’ type of approach when
it comes to providing feedback: It starts with good feedback, followed by
something a little bit more constructive, and followed by a bit of small talk in
between. Afterwards, they will reassure them (Velloso, 18 October 2017). As has
been noted, Brazilians will most likely to avoid providing negative feedback. An
employee may never know what he or she has been doing wrong, and perhaps a
dismissal may come as a total surprise.
In addition to the above, Celso Kiperman, president of Grupo Educacao S.A,
claims that Brazilians in comparison to Europeans or North Americans tend to be
more concerned with the cultivation of good relationships. “I believe that the
Brazilian executives find it difficult in giving feedback, especially in the case of
negative feedback, as very often the negative feedback is taken as a personal
matter rather than a professional one” (Kiperman, 3 November 2017).
As several sources reveal, there might be additional grounds for the tendency of
feedback avoidance. It might all come down to the fact that Brazilians have an
incredible fear of failure (Oswaldo, Souza & Tomei, 2016; Velloso, 18 October
2017; Coas, 18 October 2017). In sum, the act of appraisal is more likely to be
interpreted as a failure in performance rather than guidance for an
improvement. Nevertheless, this perception is slowly changing in the Brazilian
business environment. For instance, in companies that are based on meritocracy
and are result driven, feedback is acknowledged as an essential part of their
overall organisational performance and is thus executed on a regular basis.
(Velloso, 18 October 2017).
To put this in perspective, Brazilians have a tendency to be liked and like others
which often results in avoidance of confrontation. In a business environment this
often creates a situation where problems are never really discussed, constructive
feedback is given and positive aspects are pointed out rather than facing their
issue. Only in certain circumstances will Brazilians provide some form of
feedback, but it will only be given if it is totally necessary.
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Chile
Mauro Floridia, Dominique Heintjes & Rachelle Visser
A country known for its magnificent landscape and the Easter Islands, Chile is the
longest country in the world, bordered by the Pacific on the west and the Andes
on the east. Like most Central- and South Americans, Chileans are descendants of
Spaniards and other European immigrants who arrived in Chile five centuries ago.
Before the European settlers arrived, there had already been an existing society
called the Mapuche Amerindians. Today the Chileans have mixed feelings when it
comes to their Indian ancestors. They are proud of their warrior legacy but feel
more related to their European ancestors. As in most South American countries,
family respect and loyalty are their core values.
Since Chile is one of the wealthiest countries in South America, its copper and
steel industries are highly developed and have been among of the driving forces
of its economy. Many multinationals have set up camp in Chile, attracted by the
enviable lifestyle, educated workforce and lack of corruption. In the past,
multinationals were seen as plunderers of developing countries, but nowadays
they are regarded as useful investors and partners in business. Therefore,
Europeans doing business with Chilean people are much appreciated.
A Chilean leadership profile
Chile has been ruled by a dictator for more than two decades. The effect of this
dictatorial rule is still tangible in today’s management style. It is traditionally
hierarchical with an autocratic leadership pattern. One’s job title and position
determine one’s status. This is easily seen in the manner in which people are
addressed as superiors will be addressed with the more formal ‘usted’ whereas
colleagues of the same hierarchical level are addressed with the informal ‘tu’
(Littrell & Romie, 2008). A participant of the CCBS Survey (2017) explains that
aside from the hierarchy, one’s position within a Chilean company is not so much
decided based on merit but is more dependent on one’s relationships. Another
anonymous respondent of the CCBS Survey (2017) declares that in a large
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percentage of Chilean companies are managed from the standpoint of the
landowner, a leader who manages by terror and not by example. However, new
generations are applying leadership techniques of closeness, listening, facilitating
and teamwork. This hierarchical system is also noticeable when it comes to
delegating the supervising tasks. The Chileans do not mind taking on
responsibilities but experience too much of it as a negative thing. In the end, they
prefer to be led and not to be in a position where they can be blamed for the
things going wrong (Littrell & Romie, 2008).
How Chileans characterise outstanding leaders
In Chile, there are mainly three types of leaders. These three leadership styles
are participative, self-protective and team-oriented style. According to the
research conducted by Pedraja-Rejas and Rodríguez-Ponce (2006), the team-
oriented style is the most prevalent one in small Chilean organisations, followed
by the participative style. Based on the research of more than a hundred top and
mid-level managers from small companies in Chile, it can be concluded that the
supportive and participative leadership styles have a positive influence on
effectiveness in small organisations. However, the self-protective style proves to
have a negative impact on effectiveness in this kind of organisations (Pedraja-
Rejas & Rodríguez-Ponce, 2006). Regarding these research results, it can
therefore be suggested that in small companies, while making a decision, the
leader should collaborate with team members, provide a good work climate, be
concerned with the team’s wellbeing and treat the team members fairly
(Pedraja-Rejas & Rodríguez-Ponce, 2006). A respondent from the CCBS Survey
(2017) explains that leadership in Chile reacts directly to the Chilean culture and
vice versa. Multiculturalism practically does not exist in Chile. Therefore, it is very
difficult to change people’s minds, organisational behaviours or even working
systems. Almost everything is done systematically, and the focus is only on
results, which leaves little space for new ideas. To summarise results from CCBS
Survey (2017) on characteristics, most respondents think that it is important for a
Chilean leader to have a strong charismatic personality, access to the right
networks, intellect and resourcefulness. Besides that, the executives believe that
a Chilean leader also should be a visionary thinker, an eloquent speaker, a good
listener and a powerful decision maker. Survey participants also indicate that
Chileans look up to their leaders on the basis of organisational experience,
market expertise and technical competence (CCBS Survey, 2017).
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Power distance in Chile
Chile scores in line with most Latin American countries though still very low
(Hofstede, n.d.) regarding individualism dimension. Chileans tend to think in
terms of what works best for the group. It is normal for a Chilean to live with
one’s parents before getting married (Bianchi & Mena, 2004). A shift in this
dimension is expected. Due to a higher GDP, a large proportion of the workforce
is now looking for more autonomy and variety in their positions (Güell, 2004).
This is however mostly taking place in capital city Santiago, while outside of the
big city life is not changing as fast. Family still plays an important role in the
Chilean culture, a point which has also been supported by one of the CCBS
Survey (2017) professionals who mentions that the right family connections
play a part in what is important for a leader to have. In terms of the Power
Distance Index, Chile scores lower than most other Latin American countries.
However, it still has an intermediate to high position on this dimension
(Hofstede, n.d.). The fact that Chile was ruled for seventeen years by a dictator
could explain the higher score in this dimension (Garner, 2015). In Chile, when a
boss says something, it is understood to be an instruction, which has to be
followed (Kelm, 2011). Maarten Kraaijenhagen, a director in finance, lends
support for this: “Chilean companies are probably more hierarchical than
European companies and apply more of a top down approach” (CCBS Survey,
2017). A cross-cultural consultant, José Antonio Chamorro, agrees with this,
“There can be a big gap between an employee and its manager, it can be very
hard to reach a manager” (Chamorro, 13 November 2017).
Survey results and what local respondents say
To find out more about how Chilean executives and managers look at leadership,
the CCBS Survey of 2017 has been conducted. Over fifty respondents took part in
this survey, with different views and answers as a result.
To start with showing some remarkable results, about eighty percent of our local
respondents believe that it is acceptable to address their leader by his or her first
name. However, one of the participants clarifies: “Most of the time, and this will
also depend on the position of the subordinate. The lower they are in the
organization, the less likely it is they will do this” (CCBS Survey, 2017).
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Secondly, according to the local respondents, men and women do not have equal
access to senior leadership positions. Only just over ten percent of the
respondents believe that they have equal access to these positions. The gender
difference in leadership has also been illustrated by Carla Soto, a sales manager
in banking: “Culturally speaking, men are ‘allowed’ to be less formal” (CCBS
Survey, 2017). Daniela Gonzalez, an IT senior analyst, explains: “Being a [woman]
leader is still an issue in the IT industry, which is the industry I have been in for the
past 8 years”. She also regrets that it is still an issue to have more women
participate in leadership positions, possibly due to the lack of support (CCBS
Survey, 2017). José Antonio Chamorro, a cross-cultural business consultant, still
sees the differences, however, he feels like it is changing, “You now see a lot of
women getting involved, it is still lower than male participation but it is
changing” (Chamorro, 13 November 2017). When you see the statistics regarding
entrepreneurship, many women are now getting involved in entrepreneurial
business. It is especially PYMES (Pequiña Y Mediana Empresa), or small and
medium enterprises, where female managers are increasingly found. These
women are showing their presence and importance in the market (Chamorro, 13
November 2017). This shift in the way on how men look at feminine leaders also
becomes apparent when reading this significant quote of Juan Rojas Cortés, a
general manager in the mining industry: “As all men should know, women do
multiply our learning opportunities in many areas of life” (CCBS Survey, 2017).
Thirdly, more than three-quarters of the respondents of the CCBS Survey (2017)
do not believe that a leader should keep a personal distance from employees in
order to maintain the right level of respect. Pamela Carrasco Suazo, a
psychologist, agrees on this and believes: “I do not think that there are other
countries where a boss of a company invites you to his house for a barbecue”.
Another professional from the CCBS Survey (2017), Daniela Gonzalez supports
this result: “In my opinion what makes the difference is the fact that a leader
cares about his or her team, not only about results but also about them as
individuals and their personal life”. She further mentions that it is important that
employees can have a balance between their work and personal life. This shows
that caring about the wellbeing of Chilean employees is seen as an important
aspect of management.
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Local leadership literature analysis
In-country leadership specialist
For this study, Nicolle Knüst has been interviewed. Knüst was a teacher at
Universidad Diego Portales in Innovation, Entrepreneurship and Leadership.
Besides having teaching experience. She is also the managing director of Wunder
Group, a communication, public relations and marketing company where she has
advised over a thousand entrepreneurs.
Firstly, Knüst explains that for a leader it is very important to be transparent.
Chileans like to know what someone has done in the past. When someone has
more experience, one will also be more respected. Knüst believes that a good
leader is also a good example, and people will respect a leader more when he or
she is also a good role model. In order to receive the respect of Chilean workers,
leaders should not expect things from their employees if they are not able or
willing to do it themselves. In terms of hierarchy, Knüst believes that it is
becoming less and less. In big multinational companies, it is still seen a lot.
However, in newer companies, Chileans are becoming more flexible. Finally,
Knüst mentions that in order to be a good leader one needs to understand an
employee’s personal life since work and personal life are closely related. A
person’s personal life could affect the way he or she behaves at work. Therefore,
when personal issues are resolved, work productivity is likely to increase (Knüst,
17 November 2017).
In-country leadership bestseller
One of the best-selling books about leadership was written by the Chilean writer
and psychologist Nureya Abarca. She is a psychologist from the Universidad de
Chile and has a PhD in Psychology from the University of California San Diego.
For her post-doctorate, she followed courses in leadership and teamwork. She
has served as Postgraduate Director and Director of the School of Psychology
at the Escuela de Administración de la Pontificia Universidad Católica de Chile.
Nureya specialises in the subjects of leadership and negotiation.
In this book, Abarca (2016) introduces readers to the changes that have taken
place in the business world since the incorporation of a new form of leadership.
This new form of leadership is directly related to the emotional intelligence of
people. The essential value of social skills that executives need in order to face
challenges in their work nowadays is pointed out. Different topics that are
tackled include the sense of identity and self-realisation, empathy, trust in
oneself and others, and the expression of one’s own emotions. These topics
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will all help in order to become a better leader. Finally, Abarca explains the
effective learning tools that are essential to developing a better work field in
Chile. Abarca believes that once human capital is considered the most important
resource within an organisation, the development will follow, and success is
assured.
In-country leadership bestseller
Local leadership book
Title
Inteligencia Emocional
En El Liderazgo
Subtitle
Emotional intelligence and
leadership
Author Nureya Abarca
Publisher Ediciones El Mercurio
Year 2016
ISBN 9789567402625
How to achieve leadership empathy
In order to achieve empatía de liderazgo in Chile, it is common that a Chilean
boss hosts a party or an asado (barbecue). This happens at the house of the boss
at least twice a year, when the boss invites all his employees and their family
members. However, extensive socialising with subordinates in Chile is seen as
inappropriate for a boss. Another aspect of achieving empathy in Chile is that a
Chilean boss does not show favouritism to individuals in work groups.
Emphasising the achievements and efforts of a team as a whole will help build
prestige and status at the team level, which is important for the team morale
(Lewis, 2006). An important speaker about achieving leadership empathy in Chile
is Rodrigo Jordán (Parrini, 2012). He explains that Chileans become more
empathetic when people are in a situation of need. Chileans have been known
for their solidarity. This quality, however, takes on even greater strength at times
of tragedy. According to Jordán, Chilean leaders could distinguish themselves
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when some Chileans at work are in situations of need. Through aiding their
colleagues, Chilean leaders could create more empathy towards themselves
(Parrini, 2012). In an interview with José Antonio Chamorro, a cross-cultural
consultant, he explains that Chilean leaders are expected to be straightforward in
negotiations and towards their employees and that Chileans like to have things
done quickly. However, he also explains that the communication of Chileans is
not straightforward. When doing business with Chileans, a yes might not always
mean a yes. When setting up a meeting with Chileans it is important to
immediately set up a date and time. When someone mentions that it will happen
sometime next week, it is not likely to happen at all. Chamorro further explains
that “Chilean leaders are not aware yet of the importance of communication or
the cross-cultural communication towards their employees. In that case, they
could create more leadership empathy” (Chamorro, 13 November 2017).
Methods of feedback
Since Chileans are sensitive giving feedback should be done in a correct and not
too direct manner. A way to give feedback appropriately is to first point out a
part of the behaviour or performance in which people excel before addressing
the points which should be improved. Aside from the correct order of comments,
it is also wise to appeal to their desire for status and recognition. Instead of
cracking down on one’s behaviour, turn it around and formulate it in such a way
that the employee will want to work on their weak points to improve himself or
herself. Chileans are sensitive to status and externally obtained recognition, so if
observations are handed to them as a way to increase their recognition amongst
their colleagues, viable and workable feedback has been given (Abarca, Majluf &
Rodríguez, 1998). In an interview, Knüst explains that feedback is best to be given
face-to-face. When giving feedback it is important to also understand the
underlying causes of someone’s behaviour which will help resolving the issues
(Knüst, 17 November 2017). Higher educated Chileans tend to be more assertive
than their lesser-educated nationals. This should be taken into account when
giving feedback to Chilean employees (Abarca et al., 1998). Besides that, in
general it can be hard to find assertive people. Most participants of the CCBS
Survey (2017) confirm it is hard to find proactive people. Knüst proclaims: “In
Chile people are not very proactive, they are used to following rules” (17
November 2017). To summarise this matter, another professional of the CCBS
Survey (2017) concludes; “Most people just do what they were told to do,
proactive people are very difficult to find”.
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Costa Rica
Anna Bjärkstedt, Angeline van Wijk & Chris van der Goes
Costa Rica, which means ‘Rich Coast’, was discovered in 1502 by Christopher
Columbus. Located in Central America and bordered in between Nicaragua and
Panama, it has coastlines on two sides of the country, with the Caribbean Sea
forming its east coast and the Pacific Ocean forming the west coast. Costa Rica
has a population of almost five million inhabitants who are called Costa Ricans or,
more colloquially, Ticos. Their main language is castellano (Spanish), they pay
with the Costa Rican Colon and the majority of the population identifies as
Roman Catholic. Another interesting fact is that the Costa Rican population is a
multicultural society, and only one percent of the inhabitants have indigenous
roots. Not only is the population diverse, but also its economy; traditionally Costa
Ricans produce coffee and bananas, but the tourism sector has become an
important source of income too. Indeed, Costa Rica is known for its bonitas
(beautiful) landscapes and biodiversity (Costa Rica, 2017).
A Costa Rican leadership profile
Costa Rica, unlike other Latin American countries, puts a strong emphasis on
equal opportunities. According to the GLOBE (n.d.) research project, Costa Rica
aims at achieving higher gender equality and collectivism. Regarding equality,
gender does not seem to be a big issue as many women are in powerful
positions. A notable example is Laura Chinchilla (female president 2010-2014). A
female professor at a Costa Rican University states: “There is nothing explicit that
bans women to be leaders; however, percentages show that men take more
leadership positions. Women are leaders in entrepreneurship though. Every year
more women are taking [the] lead in business, politics, education and health”
(CCBS Survey, 2017).
Costa Ricans highly value la familia, la lealtad y relaciones personales (family,
loyalty and personal relations). They base their decisions on relationships and do
not necessarily close the deal with those who have the best offer. Once Costa
Ricans know the other employees better, they will look after their interests and
help them in need. If it concerns one of the employees, people will be loyal, and
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they will work overtime without an extra pay in order to support. Costa Rican
leaders, therefore, must motivate their employees in the scope of personal
relations (Lewis, 2006). This is also a reason why Costa Ricans pay attention to
the emotional intelligence of leaders and their attitude towards the team (CCBS
Survey, 2017). Unlike other Latin cultures, Costa Ricans are also comfortable with
working in groups - trabajar juntos. The decisions could be reached by a
consensus of the stakeholders rather than the leader. This allows everyone to
submit their input and makes them feel involved and as a part of the decision-
making process (Commisceo Global, n.d.). This is supported in the CCBS Survey
(2017) by one manager, who emphasises that the collaborative work is much
appreciated and that is why leaders are willing to look for new proposals and to
listen to the team members’ opinions and ideas. According to a regional HR
manager and a retail banking manager, Costa Rican teams feel like family and are
involved, interested and caring towards one another (CCBS Survey 2017).
To emphasize, Costa Rica has shown environmental leadership in energy projects
and the turn-around of deforestation as a result of the country’s ambition to be
the first carbon-neutral country by 2021. This leadership has reached
governmental and private organisations. There is a nation-wide commitment that
deserves attention as leaders in this field have proven to be influencing the
population in a tangible way, according to Professor Lena Barrantes (CCBS
Survey, 2017).
How Costa Ricans characterise leaders
Costa Rica scores high in four out of the six leadership styles introduced in the
GLOBE project (n.d.). First of all, the charismatic style which means Costa Rican
leaders attempt to inspire people and create opportunities for love and passion
to perform on a higher level. Secondly, the team-oriented style points out pride,
loyalty and highly values team cohesiveness and a joint objective. Then, the
participative style encourages input from all team members in decision-making
and its implementation. The fourth, humane oriented style embraces
compassion and generosity coupled with a supportive attitude. The combination
of these four leadership styles best describes an outstanding Costa Rican leader.
The CCBS Survey (2017) supports this view of outstanding leaders in Costa Rica. It
also ranks highest in team-oriented and charismatic leadership styles. An analysis
of the CCBS Survey results (2017) supports these statements since most of the
respondents admit that it is important for a leader to have qualities such as
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organisational experience, technical competence, intellect and a strong
charismatic personality. Indeed, employees expect their leader to be a visionary
thinker, good listener and a compromiser, as well as a powerful decision-maker
(CCBS Survey, 2017). What is more, leaders in Costa Rica are expected to provide
guidance and to motivate their employees. If something is wrong, the employees
want to talk to their leader as equals, and it is vital for the leader to be fair and
have the ability to manage conflict situations (Globe Smart, 2017). In the CCBS
Survey (2017) one participant puts forward: “The tag of ‘leader’ of Costa Rica is
something given to an individual by peers and it is earned by emotionally
engaging them and effectively guiding them to success”. However, it is important
for the leader to maintain authority in order not to be taken advantage of. As
one respondent underlines: “Never show weakness in Costa Rica!” (CCBS Survey,
2017). Thus, Costa Ricans are comfortable with a strong leader, and as
mentioned before, expect their supervisor to be a powerful decision maker,
provided that one listens and takes them seriously. To this end, the leader should
exhibit an open communication style where the objectives and expectations are
clear (IOR World, n.d.).
The opinion that Costa Ricans share on what it takes to be a gran líder (great
leader) consists of several key features. An outstanding manager leads in a
spirited manner and is not afraid to be innovative or to create a vision towards
the future. At the same time, one does not forget to stick to the core values and
to stay loyal throughout the entire process. Being full of compassion and
generosity is also considered a pro in Costa Rica. In cap, an outstanding leader is
part of the group and a real team player.
Power Distance in Costa Rica
According to Hofstede (2017) power distance in Costa Rica is surprisingly low for
a Latin American country. Costa Ricans are very much concerned with igualdad
(equality), leading to a low distance between managers and employees. This
actually means that there is low hierarchy in Costa Rican business life. This is
supported by the GLOBE project (n.d.) which indicates this low power distance in
value scores.
However, the practice score obtained in the GLOBE study (n.d.) is relatively high
which means that Costa Ricans experience the hierarchy within a company as
high. As Mauricio Mayorga, a Costa Rican professor in leadership, explains: “we
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Costa Ricans consider us all the same [equal], that is an idea we have in our
heads, although in the organisations we still have the hierarchy - it’s a paradox”
(Mayorga, 17 October 2017). Another example of the perceived hierarchy could
be the fact that leaders are given a respectable office space and transportation to
reflect their position (CCBS Survey, 2017).
Regarding the individualism dimension, Costa Rican scores are more like all other
Latin American countries, making Costa Rica a so-called collectivistic country.
Aspects like trust, loyalty, personal relations and networking are of significant
importance. Because Costa Ricans are strongly group-oriented, they look after
and take care of one another. Mayorga says: “when you talk about leadership
that is a very important thing to mention, because a good leader focuses on
people and not necessarily on tasks or procedures” (Mayorga, 17 October 2017).
According to Klockhohn (Nunez, Nunez-Mahdi & Popma, 2014), it has some roots
in the fact that Costa Rican children are taught to be ‘we-oriented’. Trompenaars,
on the other hand, proposes that the main orientation within the Costa Rican
mindset lies within group goals and objectives, resulting in a high score in
Trompenaars’ communitarianism dimension (Nunez, Nunez-Mahdi & Popma,
2014). All these findings are reinforced by Mayorga’s statement: “The group is
important, and the family is important. When you talk about organisations,
organisations are in some way an extension of that family” (Mayorga, 17 October
2017). This clearly concludes that the focus on a group and on relationships is
crucial within Costa Rican professional organisations.
Survey results and what local respondents say
In order to gain more information about leadership in Costa Rica, the
abovementioned online survey was conducted. This survey has been filled in by
executives and managers with substantial leadership experience in Costa Rica.
Below the most important findings are summarised. To begin with, more than
half of the respondents agree that a management decision will not be changed
very easily and that employees are expected to follow the established
procedures. However, the opinions about bending rules are divided. Rules will
not be bent unless they benefit the organisation. In this case, the boss is the one
who has the authority to bend them. “There is a motivating culture for
innovation and improvements. So, having an open a mind for projects is always a
good thing for the company and their customers” (CCBS Survey, 2017). More
strictly followed, however, are deadlines. Missing a deadline is experienced as a
failure (CCBS Survey, 2017).
Cross-Cultural Business Skills minor
36
Secondly, most of the professionals feel like you can find different kinds of
management styles in Costa Rica. It is the combination of different profiles, ages
and experience, which makes identifying the most successful leader profile for a
certain company and its targets interesting. “Leaders need to be chameleonic and
adapt their style according [to] their direct reports (as individuals) to take from
them the best for themselves and the company interests” (CCBS Survey, 2017).
Besides this, the leadership styles of men and women are also experienced as
different. As one of the executives declares: “Both genders reach the targets with
different styles” (CCSBS Survey, 2017). For example, men have to have certain
characteristics, and women are expected to have these as well as an exceptional
competence in functional areas.
Finally, the opinions on how to address the leader according to the titles or
positions are very divided. But on a whole, the majority agrees that a leader
could be called by his or her first name. “In some cases, they would use ‘Don’ or
‘Doña’ (Mr or Mrs) as a sign of respect” (CCBS Survey, 2017).
Local leadership literature analysis
In-country leadership bestseller
One of the best-selling books on leadership was written by Roy Campos Retana in
2015 and is called Integridad 24/7 ¿Cómo liderar siempre?. His book is about
ethics and integrity and deals with the importance of these two subjects within
an organisation and their influence on leadership and leaders. Campos says
about his book: “This is undoubtedly a book of ethics, but not pure ethics, but
integrity, lived ethics, leadership after all”. He hopes to inspire people with his
book: “Integridad 24/7 seeks to communicate the implications of personal and
professional ethics, to open new horizons of life to readers, hoping to trigger the
beginning of a transforming leadership in each one and, consequently, in the
organizations where they operate” (Five365, 2015, n.p.).
Local leadership lessons
37
In-country leadership bestseller
Local leadership book
Title
Integridad 24/7
¿Cómo liderar siempre?
Translation
Integrity 24/7
How to always lead?
Author Roy Campos Retana
Publisher Promesa
Year 2015
ISBN 9968412635
How to achieve leadership empathy
One of the keys to achieving leadership empathy in Costa Rica is investing in
personal relationships. According to Dabbah and Poiré (2006), there are three
key qualities for building a strong and loyal relationship: empathy, effective
networking and strong cooperation. These abilities appear to be innate qualities
of Latinos as they can easily put themselves in someone else’s shoes. In the CCBS
Survey (2017) one respondent expresses, “We are like family”. Similarly, in order
to effectively motivate employees and to encourage them to exceed
expectations, a leader needs to remember that “It’s about the people”. To reach
a company’s targets, the human relationships with the employees are most
important (CCBS Survey, 2017).
This points out the importance of relationships and empathy, the ability to relate
with other people’s feelings and situations. Once you have a good relationship
and the employees trust you, they will be loyal and work hard. On the other
hand, if they are not really motivated by their trust in you, there is a risk that
they will be disloyal and hide things from you, which could lead to unrest among
other workers (Lewis, 2006). Similarly, Felipe Garcia, a legislative specialist notes
that “Human relationships in Costa Rica are composed by personal and work
Cross-Cultural Business Skills minor
38
factors. This creates negative and positive effects. Because you can work very well
in some occasions and in others cases confuse the issues” (CCBS Survey, 2017).
Due to an openness and easiness to develop relationships, many people do not
make a distinction between personal and business matters. Sometimes this trait
can cause a problem if people take business problems too personally (Dabbah &
Poiré, 2006). Moreover, Lewis (2006) adds that Latin countries are one of the
low-trust cultural groups. This means that people in these groups only
completely trust those they know best, like family and close friends. However, by
showing compassion, accepting closeness and protecting their vulnerabilities one
can win trust.
Methods of feedback
Giving feedback in Costa Rica, whether positive or negative, is a very delicate
matter. The CEO of a big consultancy company mentions that: “Leaders of Costa
Rica do not like the confrontation of ideas in meetings with the staff, and do not
like discussions in public” (CCBS Survey, 2017). Leaders have to tiptoe around this
matter to keep staff in unity. Positive feedback is obviously easier; after all, you
are giving another person a compliment. But while doing this you have to be
careful not to forget about the others, so that they do not feel left out or
ignored. When done right, positive feedback is possible in front of other people,
Still many choose to also discuss this in private, to keep a group in balance. On
the other hand, negative feedback may even be more difficult and is, therefore,
not done in front of other people. If someone gets embarrassed in a plenary
situation, this might impact that person’s credibility. However, it also affects the
leader uttering the negative feedback, as most Costa Ricans will look differently
at leaders who disrespect their employees in public. A common practice
therefore is that negative feedback is avoided in hope that the issue will resolve
itself over time. In those cases where negative feedback is imperative, a leader
will take the concerned party aside for a private and an off-the-record
conversation. One of the participants mentions, “People in Costa Rica do not love
confrontation. I consider [that] a very useful way to avoid bigger issues” (CCBS
Survey, 2017).
At the same time, Costa Rican people tend to be rather self-critical, and they are
not afraid to improve themselves. Maybe this is why the above mentioned
‘laissez-faire’ feedback-method still works, as people are their own reviewers.
Local leadership lessons
39
In Costa Rica, togetherness is more important than the actual result. If you put
the best man on the job, one might have the best results, but in this country,
everybody gets a shot to show what they can achieve and be part of that
solidarity. A senior recruiter of IBM comments “We are proactively encouraging
people and helping each other to develop their unique skills. Being seen as a
partner and someone that is there for you” (CCBS Survey, 2017). In conclusion,
feedback is something that is given occasionally, but it does not have a
prominent place in Costa Rican leadership practices.
This concludes the Costa Rican leadership analysis, muchas gracias.
Cross-Cultural Business Skills minor
40
Hungary
Stefan Luschen & Vincent Meijering
Being one of the oldest European countries, Hungary seems to have taken part in
almost every historical event that took place in Europe. Starting as a nomadic
tribe that build a settlement in the Carpathian Basin, Hungary, as a country, is
older than England, Germany or France. Following the Second World War, the
country became part of the former Eastern Bloc. With the fall of the Iron Curtain
in the late eighties, Hungary became a democratic country where approximately
ten million Hungarians living on a surface of just under a hundred thousand
square kilometres. The Hungarian language, or Magyar as it is referred to,
actually descends from the Huns. The language most common to it is Finnish
which, with a staggering two thousand kilometres between them. (Karpati,
2017;Esbenshade, 2005).
A Hungarian leadership profile
For Hungarians, a good relationship is of utmost importance. In this light, a
leader who builds a relationship with his or her employees would have the
advantage. Respect can be gained by speaking about your personal life and
interests. Showing interest in the personal lives of employees is said to be valued
by Hungarian professionals (CCBS Survey, 2017). However, in an interview with
Balázs Heidrich, from the Budapest Business School, it became clear that if an
employer knows too much about an employee, it might be used as leverage
(Heidrich, 8 November 2017). This problem does not occur in more autocratic
companies that maintain more hierarchical distance compared to more
democratic companies (Bogel, Edwards & Wax, 1997; Heidrich, 8 November
2017).
There is a contradiction between how Hungarian managers generally would like
to communicate with their subordinates and how their subordinates would
prefer to communicate with their manager. A Hungarian professional elaborates
on this: “Dual leadership style exists depending on the sector, size and tradition of
the given organisation. Besides the old style, masculine, autocratic style of
Local leadership lessons
41
dinosaurs, a modern agile and human-oriented style is also characteristic for
start-ups and smaller entrepreneurial companies” (CCBS Survey, 2017).
Typically, there are two leadership-styles to be distinguished: there is the
traditional autocratic and the more modern democratic style. This distinction is
defined by differences such as speaking on first name basis or including
employees in decision making. Although in an autocratic type of setting, one
might find that employees are still asked about their opinion. However, as Réthi
Gábor of the Budapest Business School explains, although employees might ask
for a leader’s input, this does not imply they will actually take it into
consideration (Réthi, 10 October 2017).
The autocratic style hierarchy is stronger, and the person in charge will make
sure that everyone knows that one makes the decisions. Or, as one of the CCBS
participants puts it: “Generally, in Hungary, respect comes from fear, fear of
losing a job, for example” (CCBS Survey, 2017). This fear of losing a job is
amplified by the number of people that are dependent on that specific source of
income. It is often not just the employee, but everyone that lives under his or her
roof, which traditionally can be multiple generations of the same family, who are
dependent on the income. In Hungary, few of the elderly go to a retirement
home, and a European study shows that Hungary is second only to Poland in
their tendency to care for their elders at home, rather than to send them to a
retirement home. This fear might also explain the reported dislike for this system
and the wish for a more democratic environment (Gelei, Losonci, Toarniczky &
Báthory, n.d.; CCBS Survey, 2017; Angermann & Einchhorst, 2012).
The person an of an average autocratic leader in Hungary would look like the
following: the leader is a middle-aged man, who wishes to be addressed as
‘Mister’ or ‘Mister Director’. He would have a team of task-oriented employees,
to whom he delegates neatly-framed tasks. He might ask his employees about
their opinion on certain matters, but when there are decisions to be made, he
will be the deciding authority.
Bálasz Heidrich elaborates on this act of power distance; the personnel of an
autocratic leader would actually not mind the rigid hierarchy, as it keeps them
from taking risks. This works both ways because if a leader gives his employees
too much input, it might appear as if they could do his job, hence the mutual
need to keep hierarchical distance. It is this same fear that keeps his personnel
from making objections as a manager would probably not admit a mistake
(Heidrich, 8 November 2017; Réthi, 10 October 2017; CCBS Survey, 2017).
The person of an average democratic leader in Hungary would look like the
following: a relatively young man compared to the autocratic leader. He might be
Cross-Cultural Business Skills minor
42
the founder of a start-up or manager in an SME. The number of employees might
be significantly fewer compared to the autocratic company. He has a small group
of intellectuals under his direct supervision. He regards these employees as equal
and places his trust in them. Moreover, he shows interest in his employees and
their personal lives. His employees are challenged in order to motivate them. His
employees address their leader on a first name basis, but he seems all the more
respected for it (Czeglédi, 2008; Bogdány, Balogh & Csizmadia, 2014).
A democratic environment might seem more favourable to managers from other
countries. However, it is important to take into consideration that a large
amount of the Hungarian people might prefer the Hungarian autocratic way; this
explains why employees might reject a democratic approach (Czeglédi,
2008)(Czeglédi, 2008; Hofstede, n.d.; Heidrich, 8 November 2017).
How Hungarians characterise outstanding leaders
There are a few conventional leadership styles, but Hungary does not have just
one style particular to it. However, Balász Heidrich did come up with a way to
describe a Hungarian leader: the godfather-type. He explains that regardless of
gender and age, a Hungarian leader ought to be the fatherly type. For instance, a
new manager might sense an urge for equality in his or her team or an
autonomous mindset. Regardless, it remains important for that manager to set
out the direction, make decisions final and establish a clear vision for the future.
This explains why it is hard to work on a democratic base in Hungary because,
when all pros and cons are weighed out, the father decides (IORworld, n.d.;
Heidrich, 8 November 2017). A leader does not have to take the input of the
employees into consideration at all, but it might be polite to hear their ideas on
the matter. The reason why employees not only seem not to find this offensive
but even prefer it is due to the risk avoidance (Heidrich, 8 November 2017).
Another thing that leads back to this godfather kind of leadership style is the
urge to connect on a personal level. As Heidrich puts it: Being a leader, it is a bit
like working in the kindergarten in Hungary, that even the most mature, oldest
people you have to deal with are like children, not because they are not smart but
because of their behaviour. Very often they have their individual interests which
you have to consider while still looking for your organisational goal (Heidrich, 8
November 2017). He explains how work and personal matters cannot be clearly
separated from one another. Hence, there exists the need to show interest in
employee’s personal lives simply because these external ‘private’ factors ought
to be taken into consideration. To understand what good characteristics would
Local leadership lessons
43
be for a Hungarian leader, it is necessary to understand the employees first. First
and foremost, their scepticism towards leaders in general needs to be
accentuated. This scepticism mostly comes from the idea that their individual
argument or objection would not make any difference (CCBS Survey, 2017; Łos,
1990). Another reason for hierarchical distance and scepticism is due to the fact
that quite a number of Hungarian managers have a technical or engineering
background, rather than a managing one; this might contribute to the inherent
idea about power distance (Schaltegger, Harms, Windolph & Hörisch, 2014).
Not only is power distance important to take into account regarding Hungarian
leader characteristics. Far more, a manager should take all aspects towards his or
her personnel into consideration. When the Budapest Business School asked its
students whether they want to have more interactive classes they unanimously
declined. This indicates that even though the younger generation leans towards a
more interactive or ‘North-European’ work environment, there is still a vast
majority who would rather keep the traditional system. Heidrich Balázs, the
rector of the Budapest Business School, explains that it is a matter of how they
are brought up, implying that although it might not be in their nature, it does
seem to be included in their nurture. Therefore, a change in this mindset needs
to be introduced from an early age. During his interview, professor Heidrich
explains that “In the current education system in Hungary, it is not common that
the student has an input” (Heidrich, 8 November 2017). Studies show that SMOs
are generally more interactive (Bogdány, Balogh & Csizmadia, 2014). Réthi Gábor
points to a clear distinction between national and international companies, both
in terms of work-style approaches as well as employee tolerance to foreign
business proceedings (Réthi, 10 October 2017). In Hungary, respect is to be
achieved with experience. The three most important aspects are organisational
experience, market expertise and technical competence (CCBS Survey, 2017).
When asked what the respondents expected most from their leader, it seems
that a slight majority say that a leader ought to be a dominant decision maker. A
strong, charismatic personality is considered more important than intellect or
access to a strong network. Being charismatic is not necessarily gender specific
according to the respondents, as long as the leaders compose themselves as a
father figure. About gender equality, one of the respondents expresses that:
“women try to adapt to a masculine leadership style in order to succeed.”
Another respondent, a retail manager: “Generally women try to adapt to male
leadership, focussing on being strong and directive” (CCBS Survey, 2017).
Cross-Cultural Business Skills minor
44
Power distance in Hungary
On Hofstede’s power distance, Hungary scores relatively low. The results state
that employees can act independently and that hierarchy is a formality. However,
these results might be outcomes of generalised test results. In-depth studies
show that hierarchy is to be respected, just like employees are handed specific
tasks, which leave them little room for acting freely. The reason why these
statements are in the results might be due to the other characteristics in
power distance (Hofstede, n.d.; CCBS Survey, 2017).
What this implies is that control is disliked and that the attitude towards
managers can be informal. The communication is direct and participative as
Hungarians do take pride in their knowledge (Globe, n.d.; Hofstede, n.d.; Gelei,
Losonci, Toarniczky, & Báthory, n.d.).
Countries that score high on individualism can still care about their family or
close relatives, which is the case in Hungary. So, to say they are individualistic
might be a curt statement (Hofstede, n.d.). Doctor Heidrich emphasises how
important family is by the following example: “... here, if you are not with your
family during Christmas time, then you are the loneliest person in the world”
(Heidrich, 8 November 2017). The Hungarians do not operate a broad network,
but family is everything.
Masculinity and uncertainty avoidance combined sketch a good idea of why the
Hungarian work environment is the way it is. Hungarians have an eagerness for
achievement while, at the same time, a distaste for taking risks, which explains
the broad acceptance of strong hierarchal distance. The Hungarian people want
to have a career in the broad sense of the word, but their uncertainty avoidance
withholds them from accomplishing this ambition. Hence, once they are in a
managing position, they tend to maintain power distance to establish a sense of
being irreplaceable (Culture in Hungary, 2007; Hofstede, n.d.; Globe, n.d.).
Survey results and what local respondents say
Hungarian professionals share their view and opinions in the following aspects.
Firstly, once a decision is made in Hungary, it is usually final, due to the fact that
confrontation is generally avoided. Secondly, a lot of effort goes into personal
contact between a manager and his or her employees; this is important because
Hungarians tend to have a hard time separating business matters from private
ones. Thirdly, over half of the respondents state that status in the form of office
space, clothing or transportation is relevant for someone with a managing
position. If someone has an academic title, it might be good to emphasise this,
Local leadership lessons
45
for instance, on a business card or in an email signature. In some companies, it is
accepted for a leader to be addressed by his or her title or position. However,
almost all the respondents note that it could be accepted to address your
employer on a first name basis. Finally, almost a quarter of the respondents say
that it is important to follow the rules strictly. But in most cases, it might be that
the rules are more or less considered as guidelines. In cap, over half of the
respondents elaborate that the rules can be bent if they think it will improve
their performance. However, the majority of them add that this is only
acceptable when it is really important.
Local leadership literature analysis
In-country leadership specialist
Doctor Balázs Heidrich is the director and a professor at the Budapest Business
School. He is also the author of various papers, including The change of
organisational culture in the transition period in Hungary (1990). Doctor Heidrich
is also a professor of Management and Leadership at the Budapest Business
School. Being a professor and the director of the business school, Doctor Heidrich
is considered the ideal person to discuss leadership in Hungary. In his paper,
Doctor Heidrich argues that it is the role of the leader that plays a determining
role in creating as well as changing organisational culture. He believes that this
can be achieved by defining behavioural norms and decision-making methods in
addition to decisions that influence the value system (Heidrich, 1999). To
understand the change in leadership style, Doctor Heidrich identified the social,
political and the economic conditions of the present and past. He has identified
the characteristics of the organisational culture of Hungarian companies. One of
his conclusions: Regardless if it is a woman or a man, it has to be a father figure.
So, it is not easy to do democratic leadership in Hungary. I face myself often that I
try to be more democratic, and there is no good response. Then again, the truth
of the attitude came ‘please tell us what to do we will do but then it is your
responsibility.’ So, responsibility is not the strength of Hungarian employees
(Heidrich, 8 November 2017).
Cross-Cultural Business Skills minor
46
In-country leadership bestseller
Several respondents to the CCBS survey indicated that ‘A szeretett vezető’ by
Pulay Gyula is considered a popular book about leadership. In this book, the
author gives good examples and clear principles on what good leadership tools
are and which behaviour is accepted (CCBS Survey, 2017).
Local leadership book
Title A szeretett vezető
Subtitle -
Author Pulay Gyula
Publisher Harmat kiadói alapitvány
Year 2008
ISBN 9789639564220
How to achieve leadership empathy
Heidrich talks about three aspects of business: purpose, process and people. The
order of these three components is very country-specific he explains. “In
Hungary, it is almost always people first, then process and purpose” (Heidrich, 8
November 2017). As a leader, you are expected to know about your employees’
personal life. However, there is a risk to this as Heidrich explains: “It can come
back to you as a negative effect when you want to make ‘not so positive’ or
unpopular decisions. They know that you are aware of their background yet you
make the decision. Which is more strategic or businesswise, it is very logical” (8
November 2017). A positive work environment could be established by turning
tasks into group-effort, this will include employees and stimulate participation,
thus amplifying the effort that employees will put into their work (Łos, 1990).
By addressing everyone on a first-name basis, a relation is established with ease,
and a family-like environment will be achieved quicker. When asked how he
wishes to be addressed, a CCBS Survey respondent answered the following: “I
have no idea, I personally don’t care how my employees address me, as long as
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Local leadership lessons

  • 2. Cross-Cultural Business Skills minor 2 Local Leadership Lessons Comparing leadership practices in eighteen countries Cross Cultural Business Skills Minor
  • 3. Local leadership lessons 3 Table of Contents Preface ........................................................................................................4 Leading across borders ................................................................................5 Brazil ......................................................................................................... 16 Chile .......................................................................................................... 25 Costa Rica .................................................................................................. 32 Hungary..................................................................................................... 40 Israel.......................................................................................................... 48 Japan ......................................................................................................... 56 México....................................................................................................... 65 Morocco .................................................................................................... 73 Pakistan..................................................................................................... 82 Qatar ......................................................................................................... 89 Serbia ........................................................................................................ 98 South Africa............................................................................................. 106 Switzerland.............................................................................................. 113 Thailand................................................................................................... 119 Turkey ..................................................................................................... 128 Ukraine.................................................................................................... 136 United Arab Emirates .............................................................................. 141 United States of America......................................................................... 148 About CCBS.............................................................................................. 155 Consultation methodology ...................................................................... 156 Bibliography ............................................................................................ 157
  • 4. Cross-Cultural Business Skills minor 4 Preface Welcome to an intercultural benchmark on local leadership practices in no less than eighteen countries. Our world is internationalising at a fast pace, and more and more of us choose to find work elsewhere. As a result, we find ourselves confronted with culturally diverse management expectations. After working on this book, we now understand how knowledge of such local leadership conventions, can represent an important competitive advantage. This book is the result of the collaborative research of eighty-eight participants to the ‘Cross-Cultural Business Skills’ elective (minor) course. They have explored what leadership entails by doing a one semester - desk and field research. Together they have asked thousands of business professionals in selected countries on their preferred managing practices. The result of their efforts constitutes a relevant reference. We are grateful that this wonderful group can now share their gathered knowledge with interested people from around our world. We first and foremost would like to thank all individual co-authors for their thoughtful research, and their constructive writing for this very first edition of ‘Local Leadership Lessons’. Additionally, we would like to express our deep appreciation to all survey correspondents and interviewees who helped, despite their busy schedules, to make this innovative and applied way of education possible. We also gratefully acknowledge that this book would not have been here, without the engagement of programme manager Hans Seubring-Vierveyzer. Then we owe a debt of gratitude to Kyara Metz, Hannah Fischbach, Aysha Shabbir and Shujaat Chaudhary for their altruistic support. Finally, we would like to thank Isabella Venter for her hard work in improving our academic writing, and Natalia Kempny and Susanne Koelman for their much-appreciated assistance. At last we take responsibility for any errors that may have inadvertently found their way into this book. May we close here, by wishing you all a remarkable read? Sander Schroevers & Aynur Doğan
  • 5. Local leadership lessons 5 Leading across borders Alan Nha Le, Jesse Bijl, Julia Koene & Karlijn Stoelinga The world is at our fingertips thanks to the growing influence of innovative technology in daily lives. Practicing international business has become relatively easy since we have access to communication technology. This makes it possible to collaborate with team and board members – from across the table to across the globe. Though companies cross beyond borders, not every employee has a global mindset. Even if communication and collaboration tools are available, cultural differences cannot be overcome by technology. Cultural business skills are imperative to today’s global society. According to Erin Meyer, author of The Culture Map (2014), managers who are working across the globe, face the complexity of the discrepancies in cultural perspective. A manager with cross-cultural leadership skills should be able to identify and anticipate cultural differences in order to have a competitive advantage over other businesses. Knowledge of national cultures is not enough as there are also ethnic, religious and professional cultures. However, cultural differences should not be considered a problem, but as the challenge to deal with a multicultural context (Philips & Sackmann, 2002). The principal objective of this book is to educate the read the reader on a variety of culturally defined aspects of local leadership within eighteen countries worldwide. Cultural intelligence The capability to effectively lead groups of people with different cultural backgrounds, gender and age should not be underestimated. A multitude of academic research in organisational behaviour over the last two decades demonstrates that cultural intelligence, or cultural quotient (CQ), is one of the success factors of global leadership. Cultural intelligence is defined as a person’s capability to adapt as one interacts with others from different cultural regions, which has behavioural, motivational and metacognitive aspects (Earley, Ang & Van Dyne, 2003). People with higher CQs should be able to successfully adapt to any environment by using more effective business practices than people with a lower CQ. This cultural quotient consists of three aspects: cultural knowledge, cross-cultural skills and cultural metacognition. There are numerous assessments
  • 6. Cross-Cultural Business Skills minor 6 available to test your CQ, which have been listed in CCBS’ publication: ‘A Cross- Cultural Compass: Perspectives of acquiring and measuring cross-cultural competence’. To become a successful global leader, a certain level of cultural knowledge is a necessity, which is the purpose of this book, Local Leadership Lessons. Country profile composition This book consists of 18 country profiles, each describing the local. All profiles have been written in a standard format as to create a clear overview of the cultural features while painting a contrast when comparing these leadership profiles to each other. The country profiles are constructed in the following format: ▪ Country introduction ▪ Leadership profile: A depiction of how leadership is defined in this country. ▪ What characterises an outstanding leader: How do people perceive a perfect leader? ▪ Power distance ▪ Survey results and what local respondents say ▪ Local leadership literature analysis: in-country bestseller ▪ How to achieve leadership empathy ▪ Methods of feedback The spread with the world map on the next two pages offers for each of the researched eighteen countries a top-3 of leadership must-know features, based on the research by each country profile team.
  • 8. Cross-Cultural Business Skills minor 8 KyaraMetzforCCBS,2017
  • 9. Local leadership lessons 9 Research methodology Insights around cultural aspects of leadership were gathered by conducting country-specific literature research, in-depth interviews with 58 local managers and a global online survey about leadership (CCBS Survey, 2017). For the current survey 920 qualified respondents participated (after deleting the uncompleted or non-qualified samples). The survey comprised of both multiple choice and open questions, in total 27 questions also around general themes like the respondent’s background, education and position. The respondents were likely to represent professionals in management positions, and their responses inform on country- specific leadership preferences. This quantitative research is further strengthened through both literature research and primary research. Literature research was used to find sources of relevant information in both scholarly articles in journals and books, simultaneously the authors of each chapter conducted primary research in the form of interviews. These combinations of research methods have created an extensive and solid foundation for the validity of this book and its contents. This issue is part of an ongoing academic research out of which already the following titles have appeared: (i) European Leadership, (ii) Worldwide leadership lessons, (iii) Leadership Lab, (iv) Leadership Localisation, and now (v) Local Leadership Lessons. For this research the responses of more than 2,500 qualified respondents (at boardroom level) so far have been studied. In total over 6,000 respondents participated after visiting our survey link, but more than half were not used because of stopping the survey too early, or their background or IP-address did not match our target group. Cultural similarities and differences The research conducted this semester shows how leaders from different continents and countries practice leadership. As research from the 2014 GLOBE study, among others, indicates: people from a particular country tend to share cultural norms that are distinct from other countries (or even from regions within that same country). This emphasises the importance for leaders to adapt their leadership style to be country-specific as well as region-specific. Anticipating in-country differences can be very challenging. To overcome these challenges globalised leaders need to cope with power distance, empathy, feedback, gender issues. In sum, knowledge of the local leadership expectations and the ability to recognise cultural similarities and use them as an advantage.
  • 10. Cross-Cultural Business Skills minor 10 Country Profile components The sections below introduce the theoretical frameworks behind the respective paragraphs that each country profile lists, offering a better insight per chapter. Power Distance The level of inequality between a more powerful and a less powerful individual belonging to the same social system is called ‘power distance’ (Mulder, 1977, p.90). Low-power distance cultures minimise inequalities among individuals in terms of social status, privileges and status symbols; whereas high-power distance cultures emphasise prestige, wealth and power (Sharma, 2010, p. 8). According to Hofstede Insights (2017), Chile and Thailand both score quite high on power distance. Thailand is believed to be partially influenced by the Buddhist doctrine; Chile is supposedly affected by the seventeen years of dictatorship that the country has experienced. Societies with a high-power distance are more likely to accept a hierarchal structure, and the CCBS Survey (2017) supports this statement. On the contrary, it also shows some intracontinental differences. Leaders from Qatar and the Arab Emirates, both distinctive in high-power distance, respond differently when asked if they prefer to keep their personal distance from their employees in order to be respectful. Qatari leaders tend to keep less distance than their colleagues from the Emirates. Another aspect that characterises high-power distance is the use of honorifics towards leaders (Nishishiba, 2017, p. 20), which is common in Japan. Japan scores relatively high on power distance and uses a wide range of honorifics. However, there are countries that seem to score fairly high on power distance yet subordinates are allowed to address their leaders by their first name. While Chile scores sixty-three on power distance and Brazil scores sixty-nine (Hofstede Insights, 2017), the CCBS Survey (2017) shows that more than sixty percent of the Chilean respondents agree that employees call their leader by the first name. Similarly, more than ninety percent of the Brazilian respondents agree to this statement as well. It appears in some cultures, there is a weak correlation between high power distance and calling their leader by first name. This is due to qualities like warmth, kindness and personal involved leaders are appreciated. Leaders from low-power distance countries, like Israel, state that it is normal for subordinates and leaders to be considered equals and address each other by the first name. Israel is an example of a country with a low hierarchal level, with a score of thirteen on the Power Distance Index. Despite this low score, more than
  • 11. Local leadership lessons 11 half of the executive level respondents are strictly against keeping a distance from their subordinates (56%) and a little over one third (38%) agree to some distance (CCBS Survey, 2017). This indicates that the majority of Israeli managers prefer a certain level of authority and respect. Another country that scores low on power distance is Switzerland. Eight out of ten Swiss survey participants admit that employees greet their leaders by the first name (CCBS Survey, 2017). This low level of hierarchy results in equal harmonious relationships between superior and employee, based on trust. Empathic leadership There is no universal definition of the word empathy as the word itself is culturally defined based on varied perspectives. Empathic leaders are able to sense others people’s emotions and trade places with a fellow human being (Goleman, 2017). Not only does empathy help in establishing a good relationship with friends and family, having empathy is key to effective leadership, according to Daniel Goleman (2017). Colleen Kettenhofen (n.d.), an international workplace and employee management expert, supports this statement: “Empathy is a critical skill for effective leadership for one, simple reason – trust” (n.p.). She continues to explain that empathy will result in a strengthened relationship between leader and employee, as well as improved collaboration and productivity. Even though empathy is a fundamental competence for leaders, it is achieved in different ways depending on which country one is in and its culture. Within Latin American countries, specifically Brazil, Chile, Costa Rica and Mexico, an interpersonal relationship has to be established in order for empathy to be achieved. Brazil and Mexico explicitly mention that those who want to achieve empathy need to accept social invitations. Coincidentally, Turkey puts an emphasis on similar factors to achieve leadership empathy such as trust, warmth. No trust means no loyalty from the employees, which will lead to unrest among other workers (Lewis, 2006). Whilst Chilean managers agree to all these aspects, they are expected to draw a line between work and personal matters, as extensive socializing is seen as inappropriate. Although empathy is achieved by interpersonal relationships in Latin American countries, there are still countries where leadership empathy is achieved in a completely different way. While Latin Americans are open to physical closeness, quite the opposite is acceptable in Japan. Japanese people prefer to keep a distance and avoid too much body language. Moreover, hierarchy plays a big role in Japan. Honorifics should be used to show respect to those at higher
  • 12. Cross-Cultural Business Skills minor 12 levels. Despite the fact that these complete opposites exist, there are also similarities between Latin America and Asia. Another opposite from Japan is Israel. It is noteworthy that Japan scores fifty- four points on power distance and Israel scores thirteen (Hofstede Insights, 2017). While Japanese employees are expected to keep a distance from their bosses and address them with the right honorifics, Israeli bosses achieve empathy by viewing their employees as equals. In addition, Israelis prefer to be straightforward, direct and sincere, while Japanese people live in a high-context culture to avoid disrupting the harmony. In the United Arab Emirates, trust and interpersonal relationships are much appreciated as it means a level of comfort- ability with their business partner. A relationship between a leader and employees should not strictly be ‘business only’, as the wellbeing of employees is considered a priority of leaders from the Emirates (CCBS Survey, 2017). Methods of feedback Feedback is imperative when it comes to progress and improvement in leadership. It comes in a wide variety of forms, but unfortunately, not every method is applicable to everyone. As there are many different cultures all around the globe, it is of absolute importance to take into consideration where one is located in the world when giving feedback. On this large planet, with approximately two hundred countries and even more cultures, giving feedback is no simple matter. Though countries differ from one another, they also share similarities in terms of some cultural aspects. One example is the ‘concept of saving face’. This concept, originating from China, can be interpreted as the value by which people and society measure a person’s reputation, dignity and status (Teon, 2017). The existence of this concept increases the difficulty of giving feedback because a misunderstanding of how this concept affects communication in a culture can easily lead to a situation where another party is offended. Constructive feedback is a vast grey area where one can easily make a mistake. In Japan, people tend to be very indirect out of respect and fear to insult someone. Consequently, giving feedback is done in a very indirect manner. An interesting aspect of giving feedback in Japan is that the feedback given should be acknowledged by the receiver so as to save face. Yet, according to the CCBS Survey (2017), when asked if leaders prefer to hear criticism in an indirect manner there is a surprisingly high percentage of Japanese leaders that disagree with this statement. Though the concept of saving face is mostly prominent in Asian high-context cultures such as Japan and Thailand, it is also present in countries outside of Asia.
  • 13. Local leadership lessons 13 One example of this is in Latin America. In Brazil, the concept of saving face works from a different perspective, as it is not about reputation or status. Instead, saving face is about a person’s favourability and popularity within a group. This is why people in Brazil mostly try to avoid giving constructive feedback. In other countries, like in Mexico and Chile, people are quite sensitive when it comes to feedback and will give feedback in an indirect manner, but only if absolutely necessary. Even if the intention of saving face is slightly different, the results are largely the same. If feedback is conveyed, it will be in an indirect manner in private, behind closed doors in order to avoid losing face by either giving or receiving feedback. A lot of cultures are sensitive to criticism, and the people from these cultures therefore associate a negative connotation with constructive feedback. In Costa Rica, constructive feedback is almost always avoided in the hope that the problem will fix itself. When giving feedback in Costa Rica, it is important not only to take into consideration the person you want to give feedback to, but the group as a whole to ensure that there is no feeling of inequality among them. This kind of consideration might be quite difficult to achieve if one is used to giving feedback in countries with a more direct approach, like Israel, where people in general are very direct. Israelis tend to say what they think and this quality does not change when giving feedback. In the majority of the world, positive feedback is always welcome, but that certainly does not account for all countries. In Turkey, giving positive feedback is seen as something to be avoided out of fear of employees becoming arrogant or indulgent. On the other hand, constructive feedback is seen as nothing more than negative comments. The opposite of Turkey is South Africa where feedback, positive or constructive, is always encouraged, as they believe it to be the crucial factor for change in the working environment. Feedback is a delicate yet crucial piece of the puzzle that is cross-cultural business as there is no right or wrong way, only cultural differences. The concept of saving face has a fundamental impact on how one gives feedback on a global scale and should always be taken into consideration. It is also important to note that it is not only about how one gives feedback but also to whom the feedback is given. Gender equality Ban Ki Moon, Secretary-General of the UN (UN Women, 2015) announces an important message about gender equality: “A quality education, a decent job, access to healthcare and a life free from violence and discrimination are necessary foundations for women and girls to be equal partner with men and boys in every aspect of life,” More and more companies are striving for diversity
  • 14. Cross-Cultural Business Skills minor 14 as a part of their corporate responsibility programme. The UN encourages governments and businesses to help transform our world with the Sustainable Development Goals (SDGs), which were introduced in 2015. Gender Diversity and to Reduce Inequality are two out of the seventeen SDGs. Companies that stimulate diversity are in fact making a positive impact, which the UN encourages and expects from UN member states (United Nations, 2015) and every other country on this globe. According to the research of MSCI more female leaders were functioning in global board positions in 2015 compared to 2014 (Lee, Marshall, Rallis & Moscardi, 2015). Grant Thornton (2016) continues with global research and has observed a slight increase in women in senior positions globally in 2016 compared to 2015. Though this increase means progress, it is not exactly fast-paced as it only went up two percent from twenty-two to twenty-four percent. Despite all the effort of companies worldwide to create gender equality, gender disparity is still an urgent matter today. Every leader should take into consideration what women have to offer in senior and top-level positions. Both MSCI and research by Grant Thornton points out that companies that employ women at the most senior operating levels outperform their non-diverse counterparts and create greater shareholder value (Lee, Marshall, Rallis & Moscardi, 2015; Thornton, 2016). Every culture has a different perspective on the leadership skills of women. Analysing the CCBS Survey results (2017), the differences are quite distinguishable from respondents when asked if men and women have equal access to senior leadership positions in the country and if there are differences in leadership style. It is safe to conclude that women in Israel and Thailand are more likely to acquire a senior or top position than women in Chile, Mexico and Turkey. A female Chilean respondent confirms the gender disparity in top positions in her country, by exemplifying the issue of female discrimination in the hiring process: “Even if a woman is academically better suited for the position, she might not get hired due to a strong unconscious bias present in the working environment” (CCBS Survey, 2017). Among the four Latin American countries that participated in the CCBS Survey (2017), both Brazil and Costa Rica are more optimistic about the possibilities for female leaders than Mexico and Chile (Figure 2: Gender diversity). Costa Rica puts a strong emphasis on equal opportunities. According to the GLOBE (2016) research project, Costa Rica aims at achieving higher gender equality and collectivism. Regarding equality, gender does not seem to be a relevant issue as many women are in powerful positions.
  • 15. Local leadership lessons 15 Q21: In my country, men and women have equal access to senior leadership positions: Figure 2: Survey results on question regarding gender-equality in management positions in Latin America. KyaraMetzforCCBS
  • 16. Cross-Cultural Business Skills minor 16 Brazil Alisa Basyuk, Olga Henrique & Rachid Seddiki Brazil as located in South America is renowned for its strong economy and cultural diversity. The word Brazil means ‘red like an ember’, named after a tree called ‘Pau-Brasil’ that grew in abundance on the Brazilian coast in the early colonial times. Modern Brazilian export economy has speedy increased in just few decades, where export countries are China, the United States, Argentina and the Netherlands. Present key exports products are soybeans, coffee and corn. As diverse country with mixed backgrounds consists of different races and ancestries, indigenous groups, Africans and Asians including Europeans. Its population contains more than two hundred million where the official spoken language is Brazilian Portuguese. Due to these divergent traits, Brazil has become a country that varies in traditions, values and beliefs which are in correspondence to a saying Depois da tempestade vem a bonança which means ‘after the storm comes to the easiness’. This demonstrates the optimistic mindset of Brazilians and as a result, this chapter shows important leadership aspects in the business environment. A Brazilian leadership profile According to the Brazilian journalist Cristiane Correa (18 October 2017), most businesses in Brazil follow the paternalistic leadership style. Expressively, this approach indicates that the person in authority acts as an model parent, when giving attention to the social needs of the subordinates, restrictions on responsibilities and freedom the subordinates. Additionally, according to Greenberg, Recchia and Santos (n.d.), Brazilian leaders are extremely assertive, empathetic and have a high sense of urgency. Therefore, to be successful in Brazil, leaders are expected to adopt a more attentive style, show compassion and be friendly towards their subordinates. In a nutshell, leaders have to create a sense of belonging and trust with employees in order to achieve a healthy organisational culture and behaviour. As a result, the leader is most likely to receive loyalty from subordinates. This is necessary because it helps motivate
  • 17. Local leadership lessons 17 and induce team spirit among employees (Correa, 18 October 2017). Another important key factor that leaders should know when dealing with Brazilian teams is to have an outlining structure. Managing and leading a Brazilian team often requires a certain leadership style that revolves around restraint and order. One of the reasons for adopting this behaviour can be evidenced by the way Brazilian meetings are held. Brazilians tend to be unruly, with several people speaking at once. Therefore, they have a hard time reaching a consensus. As a result, this requires team leaders to balance themselves well and adjust accordingly. Because of the perceived Brazilian unruliness, there is a need for strong and outspoken leaders that can inspire and motivate subordinates. Furthermore, collaborative leadership allows employees to be open towards each other and allows for room to think out of the box in a business context. Leaders who exhibit this type of leadership are more likely to be seen as democratic, affectionate and inspiring figures according to Robert Moran, Philip Harris and Sarah Moran (2011). Though present old-fashioned paternalistic leadership style, successful national examples such as Jorge Paulo Lemann, Marcel Telles and Beto Sicupira, inspire Brazilians to become more results-oriented in business (Correa, 18 October 2017). In an interview, Correa reveals that Brazilian leadership style is going through a transition: “for a very long-time, profit was not a priority in Brazilian companies, they used to concentrate on the revenues” (Correa, 18 October 2017), which refers to a short-term strategy. The last important part of the Brazilian leadership profile is the family factor, which is often overlooked in Brazil. This component is pretty extensive that family-owned businesses constitute more than fifty percent of the market, as stated by Oliveira, Miranda and da Silva (2016). In this form of business, family ties are more likely to provide substantial weight in decision-making mechanisms. Therefore, nepotism tends to be commonplace. According to Segura and Formigoni (2014), family-owned business is characterised by high levels of risk avoidance when compared to non-family owned companies. As Dirk Blom a Dutch consultant active in Brazil states: “You have the old generation where you now see in politics that a lot of the old generation has not always done things fresh, that old generation is very decisive, they just define it, not as much leadership as dictatorship, they spin it purely on relationships and are more nationally oriented, if you look at the new generations of managers that are people who have generally studied in the US who are more international, will show better leadership as you expect it” (Blom, 17 October 2017).
  • 18. Cross-Cultural Business Skills minor 18 How Brazilians characterise outstanding leaders Notably, the figures from the CCBS Survey (2017) demonstrate that leaders themselves believe that there are three very important aspects necessary to succeed in Brazil as a leader. These aspects include intellect, charisma and access to the right information (CCBS Survey, 2017) in correspondence to more than eighty percent of the respondents’ answers. Hence these qualities illustrate the overall attributes that a leader must have to succeed in the Brazilian workforce. On the other hand, the traditional coercive leadership style is still widely present and accepted in the Brazilian framework (Globe, n.d.). Although this might be true, sources reveal that there is an aspiration for a change. For instance, Brazilians score high in participative leadership, meaning that they seek leaders who will allow them to contribute with their creativity, abilities, and knowledge in the company’s decision-making process. This aligns to what interviewee Alexandre Costa, a Brazilian leadership consultant, believes: “The new world calls for a leader who includes all interested parts in the decision-making process, while also promoting mutual collaboration and open communication at all organisational levels” (Costa, 17 October 2017). This finding is also consistent with the statistics from the CCBS Survey (2017) where over sixty percent of the respondents suggest that a good leader needs to be a visionary. With this objective, there is a need for a leader to possess both high levels of empathy and a complete or systemic vision. As a result, this type of leadership is especially beneficial for team coordination, as it encourages active participation among all the company’s employees. According to Costa, a “systemic vision brings many benefits for the entire company and supply-chain as it can provide new ideas and different ways to deal with a certain issue while considering all points of view” (Costa, 17 October 2017). Furthermore, this style allows employees to be open towards each other and to think outside of the box in a business context. To summarise, Brazilian companies are starting to realise the importance of enforcing the collective leadership style, as Alexandre Costa explains: “We can see a change in few Brazilian companies already, where leaders are starting to understand more about the importance of collective leadership” (Costa, 17 October 2017).
  • 19. Local leadership lessons 19 Power distance in Brazil Brazilians work using established hierarchies, and it is important to address people by the correct titles as Brazil has an average power-distance culture (Geert Hofstede, n.d.). One Brazilian professional encapsulated this in the following terms: “The hierarchical structure in Brazil is rather centralised and has a tall organizational structure when compared to most cultures” (CCBS Survey, 2017). In fact, power and status are still very important in Brazil and are seen as a form of prestige (Correa, 18 October 2017). As Correa puts it: “Sometimes, you will see CEOs that have a private elevator or bathroom, as this for some leaders, may be seen as a form of status, although one can see that there is a trend for change”. In accordance with the data above, the survey results also indicate that over sixty-five percent of leaders get respectable office space and transportation to match their position and hierarchy. Simply put, this supports Hofstede’s theory, which argues that Brazil has high power distance (Hofstede, n.d.) where powerful individuals enjoy showing off their superiority to a less powerful person. Despite being a hierarchical country, employees in Brazil are not required to address their leaders by their titles or positions. In fact, based on survey results, approximately sixty percent of Brazilian leaders are not called by their titles or by their position in the workplace, although titles may be used once in a while (CCBS Survey, 2017). Presumptuously, this may be due to the fact that leaders in Brazil prefer to have a more personal relationship with their employees. As the data illustrates, sixty percent of respondents indicate that they do not keep personal distance from employees in order to maintain the right level of respect and hierarchy. Once again, this data confirms the paternalistic style by which Brazilians lead, where in most cases, a personal approach is acceptable and expected from superiors. Interestingly, a director of a multinational company in Brazil claims also: “Probably, the first thing that comes to mind, is how relevant it is for a leader to keep their employees in a very short distance, not being ‘that guy’, who nobody really knows or cares about. It is important to nurture relationships” (CCBS Survey, 2017). Another Brazilian leader remarks in agreement: “A true leader needs to be as much present as he can possibly be, developing a good relationship with your subordinates but always respecting the level of hierarchy” (CCBS Survey, 2017). In similarity with an IT- professional who argues: “Relationships in the workplace can be more personal and less professional in Brazil. This is not really seen in Europe for example, where most of the time employees do not get involved in the leader’s personal life” (CCBS Survey, 2017).
  • 20. Cross-Cultural Business Skills minor 20 Survey results and what local respondents say Over fifty managers and executives have been participated in the CCBS Survey (2017) on leadership in Brazil. Some interesting outcomes are described as followings. Firstly, survey results reveal that the majority of Brazilian leaders see a strong relationship between a missed deadline and failure. About ninety percent of interviewees believe that missing a deadline is pretty much the same as complete failure. In contrast to literature, according to the recent CCBS Survey (2017), three-quarters of respondents admit that they would confront their employees if this would bring the desired outcomes. Likewise, over sixty percent of leaders agree that they are comfortable with hearing direct criticism from subordinates during a staff meeting, however Brazilians are very afraid of losing face. Additionally, over three-quarter of participants believe that if a decision has been made, it will not be changed easily. About fifty percent of leaders believe that someone in a leadership position should have powerful decision-making skills. Under these circumstances, it is easy to assume that Brazilian leaders might be fearful of appearing weak towards their subordinates, and most of this can be linked with the paternalistic approach adopted by Brazilian leaders. Since a senior leader in the telecommunications industry justifies: “To be effective as a leader in Brazil, you have to understand the needs of your employees and to buy into the motivation and the goals necessary to achieve organisational goals” (CCBS Survey, 2017). Generally speaking, Brazil is a relatively sexist country, and it appears that this fact extends to the business environment as well. Only about forty-five percent of professionals believe that women have equal access to senior leadership positions compared to men. Interestingly, a great number of interviewees reported that there might be differences in leadership style between the two genders, as reported by one leader who asserts: “Generally, women adopt a more caring attitude towards employees” (CCBS Survey, 2017). On the contrary, another leader in the Oil and Gas industry claims that: “A few women may embrace a more coercive and demanding leadership style in order to maintain the desired respect” (CCBS Survey, 2017). Local leadership literature analysis In-country leadership specialist Brazilian cross-cultural specialist Viviane Coas, specialising in training executive and CEOs to communicate more effectively with the Brazilians, refers to the environmental factors and the cultural traits that are often trivialised and yet
  • 21. Local leadership lessons 21 constitute a substantial part of Brazilian leadership style. “It is a warm environment and at the same time very competitive where relationships are of significant importance” (Coas, 18 September 2017). Later she adds that “It is important to know about Brazilian history, the contrasts in the social structure and the overall the complexity that represents the [above-mentioned]” (Coas, 18 September 2017). By the same token, corruption is still heavily found in many Brazilian environments. Brazil is considered to have among the highest number of homicides, human rights crises, drug-related violence and poor governance (Mendes, 2017). Given these points, in spite of all the vivid corruption that is part of Brazilian daily life, sources reveal that this may be coming to an end, as Mrs Correa adds: “[Anti-corruption operations in Brazil such as the ‘Carwash’] shows that Brazilian mentality is changing; it encourages leaders to look for a more ethical business environment, and that is a big difference” (Correa, 18 October 2017). Brazilian society is highly collectivist, and this extends to business practices as well. In Brazil, the focus is mostly aimed at structuring a team, creating a shared goal and ensuring safety. This is in opposition to their Western- oriented neighbouring countries that value a more individualist and self-centred approach, which is not really welcomed in the Brazilian business environment. Undoubtedly, this could mean that negotiations might become difficult if individualistic cultures such as those in Europe do not take the time to understand and adapt to Brazil’s way of doing business. Moreover, based on a research paper written by Alan Gutterman (2017) and a research article written by El Jefe (2015), leadership differs across Latin American countries, and Brazil tends to put a lot of value on motivation and high performance, which according to the research, is the opposite of what is seen in most Latin countries. This means that Brazilians prefer to put a lot of emphasis on people-oriented skills rather than just a statistical and rational approach. In essence, Brazilians prefer to distinguish themselves from the perception that they are part of the Latin American culture; this is also reflected in their view on regional leadership. To communicate effectively with a Brazilian, it is of utmost importance to participate in discussions rather than to listen intently to what a person has to say. This is important because Brazilians put a lot of emphasis on how a person makes eye contact, uses body language and performs other similar gestures.
  • 22. Cross-Cultural Business Skills minor 22 In-country leadership bestseller The book Qual é a tua obra? written by Cortella Mário Sérgio in 2007, is one of the best-selling books regarding leadership in Brazil. In a nutshell, Qual é a tua obra deals with subjects such as leadership behaviour, challenges and ethics for leaders. The main concept of the book is to make leaders understand the importance of creating a pleasant workplace, where humans come first. In his book, Cortella argues that a leader should also bring tranquillity and excitement to the workplace. The book also conveys the message that leaders need to have an open mind to be able to understand and accept that different points of view can also lead to good insights and do not necessarily need to be seen as a conflict or insubordination. Ultimately, the book aims to educate leaders to create a sense of teamwork and harmony, as opposed to using fear and resentfulness. Local leadership book Title Qual é a tua Obra? Subtitle Inquietações propositivas sobre gestão,liderança e ética. Author Mário Sérgio Cortella Publisher Vozes Nobilis Year 2007 ISBN 978-85-32635-79-2 How to achieve leadership empathy In order to properly empathise with a Brazilian, it is of utmost importance to realise that Brazilians have a very soft and expressive nature that stems from their Portuguese roots. The Portuguese origin of the Brazilian people cannot be overlooked. It is therefore not surprising that modern Brazilians are very warm, kind and open. In return, they expect others to react in a similar manner while interacting with them. This plays a significant role in building a good rapport with Brazilians (Blom, 17 October 2017).
  • 23. Local leadership lessons 23 As a consequence, Brazilian leaders must have excellent interpersonal communication skills to forge a good relationship with their employees. Admittedly, this requires Brazilian leaders to possess both hard skills and emotional intelligence. It is necessary to realise that a leader must have a good awareness of how to empathise with a Brazilian employee. With this in mind, the key factors in empathising with a Brazilian individual include accepting social invitations, placing relationships before products, and being flexible with time. Due to these values, leaders in Brazil are required to get involved in the personal aspects of employees’ lives. A leader should show interest in specific topics such as family or personal matters; otherwise, the leader may come across as uncompassionate (Lewis, 2016). As Correa mentions, “A bond of trust is rather important in Brazil” (Correa, 18 October 2017). To further reiterate this, the CCBS Survey (2017) shows that more than eighty percent of Brazilian leaders actively spend their time taking care of the wellbeing of their team members. In return, this forms a basis for long and fruitful team relationships. An authority that displays focus on formality or profits may come across as rude to a Brazilian employee. Generally, Brazilians have been known for their soft nature, and thus, struggle to be competitive. This often requires the support of a manager to boost the self-esteem of his or her employees. In summation, the best advice to empathise with a Brazilian is to work with emotions and to actually mean what is said. Leaders will inspire their employees to invest their time and effort for ideas bigger than themselves. To maintain leadership empathy, it is crucial to create a culture within the organisation and implement the idea that all members of the organisation must bear in mind that the company must be bigger than one’s personal goals. Correa emphasises: “Not only in Brazil but anywhere I believe in leadership by example. I have seen companies where they have been told that they must cut costs, yet the CEO would go everywhere in a helicopter or private jet. ‘Walk the talk’ it is very simple, right? But most people do not do that. Whatever you preach, you must do”(Correa, 18 October 2017). Methods of feedback Similar to Asian cultures, Brazilians are very afraid of losing face. Hence, it is from the utmost importance to keep this in mind when providing feedback to Brazilians. To put this in context, Brazilian professional, Hellena Velloso, a People and Management Specialist at Nova Escola, provides more insight: “Brazilians are afraid of giving feedback because it might make other people like them less. In my current job, I have a meeting every week, where I sit with my CEO and she
  • 24. Cross-Cultural Business Skills minor 24 gives me feedback; however, it is not something that I have seen in my previous jobs”(Velloso, 18 October 2017). For the most part, Brazilians tend to employ a ‘sandwich’ type of approach when it comes to providing feedback: It starts with good feedback, followed by something a little bit more constructive, and followed by a bit of small talk in between. Afterwards, they will reassure them (Velloso, 18 October 2017). As has been noted, Brazilians will most likely to avoid providing negative feedback. An employee may never know what he or she has been doing wrong, and perhaps a dismissal may come as a total surprise. In addition to the above, Celso Kiperman, president of Grupo Educacao S.A, claims that Brazilians in comparison to Europeans or North Americans tend to be more concerned with the cultivation of good relationships. “I believe that the Brazilian executives find it difficult in giving feedback, especially in the case of negative feedback, as very often the negative feedback is taken as a personal matter rather than a professional one” (Kiperman, 3 November 2017). As several sources reveal, there might be additional grounds for the tendency of feedback avoidance. It might all come down to the fact that Brazilians have an incredible fear of failure (Oswaldo, Souza & Tomei, 2016; Velloso, 18 October 2017; Coas, 18 October 2017). In sum, the act of appraisal is more likely to be interpreted as a failure in performance rather than guidance for an improvement. Nevertheless, this perception is slowly changing in the Brazilian business environment. For instance, in companies that are based on meritocracy and are result driven, feedback is acknowledged as an essential part of their overall organisational performance and is thus executed on a regular basis. (Velloso, 18 October 2017). To put this in perspective, Brazilians have a tendency to be liked and like others which often results in avoidance of confrontation. In a business environment this often creates a situation where problems are never really discussed, constructive feedback is given and positive aspects are pointed out rather than facing their issue. Only in certain circumstances will Brazilians provide some form of feedback, but it will only be given if it is totally necessary.
  • 25. Local leadership lessons 25 Chile Mauro Floridia, Dominique Heintjes & Rachelle Visser A country known for its magnificent landscape and the Easter Islands, Chile is the longest country in the world, bordered by the Pacific on the west and the Andes on the east. Like most Central- and South Americans, Chileans are descendants of Spaniards and other European immigrants who arrived in Chile five centuries ago. Before the European settlers arrived, there had already been an existing society called the Mapuche Amerindians. Today the Chileans have mixed feelings when it comes to their Indian ancestors. They are proud of their warrior legacy but feel more related to their European ancestors. As in most South American countries, family respect and loyalty are their core values. Since Chile is one of the wealthiest countries in South America, its copper and steel industries are highly developed and have been among of the driving forces of its economy. Many multinationals have set up camp in Chile, attracted by the enviable lifestyle, educated workforce and lack of corruption. In the past, multinationals were seen as plunderers of developing countries, but nowadays they are regarded as useful investors and partners in business. Therefore, Europeans doing business with Chilean people are much appreciated. A Chilean leadership profile Chile has been ruled by a dictator for more than two decades. The effect of this dictatorial rule is still tangible in today’s management style. It is traditionally hierarchical with an autocratic leadership pattern. One’s job title and position determine one’s status. This is easily seen in the manner in which people are addressed as superiors will be addressed with the more formal ‘usted’ whereas colleagues of the same hierarchical level are addressed with the informal ‘tu’ (Littrell & Romie, 2008). A participant of the CCBS Survey (2017) explains that aside from the hierarchy, one’s position within a Chilean company is not so much decided based on merit but is more dependent on one’s relationships. Another anonymous respondent of the CCBS Survey (2017) declares that in a large
  • 26. Cross-Cultural Business Skills minor 26 percentage of Chilean companies are managed from the standpoint of the landowner, a leader who manages by terror and not by example. However, new generations are applying leadership techniques of closeness, listening, facilitating and teamwork. This hierarchical system is also noticeable when it comes to delegating the supervising tasks. The Chileans do not mind taking on responsibilities but experience too much of it as a negative thing. In the end, they prefer to be led and not to be in a position where they can be blamed for the things going wrong (Littrell & Romie, 2008). How Chileans characterise outstanding leaders In Chile, there are mainly three types of leaders. These three leadership styles are participative, self-protective and team-oriented style. According to the research conducted by Pedraja-Rejas and Rodríguez-Ponce (2006), the team- oriented style is the most prevalent one in small Chilean organisations, followed by the participative style. Based on the research of more than a hundred top and mid-level managers from small companies in Chile, it can be concluded that the supportive and participative leadership styles have a positive influence on effectiveness in small organisations. However, the self-protective style proves to have a negative impact on effectiveness in this kind of organisations (Pedraja- Rejas & Rodríguez-Ponce, 2006). Regarding these research results, it can therefore be suggested that in small companies, while making a decision, the leader should collaborate with team members, provide a good work climate, be concerned with the team’s wellbeing and treat the team members fairly (Pedraja-Rejas & Rodríguez-Ponce, 2006). A respondent from the CCBS Survey (2017) explains that leadership in Chile reacts directly to the Chilean culture and vice versa. Multiculturalism practically does not exist in Chile. Therefore, it is very difficult to change people’s minds, organisational behaviours or even working systems. Almost everything is done systematically, and the focus is only on results, which leaves little space for new ideas. To summarise results from CCBS Survey (2017) on characteristics, most respondents think that it is important for a Chilean leader to have a strong charismatic personality, access to the right networks, intellect and resourcefulness. Besides that, the executives believe that a Chilean leader also should be a visionary thinker, an eloquent speaker, a good listener and a powerful decision maker. Survey participants also indicate that Chileans look up to their leaders on the basis of organisational experience, market expertise and technical competence (CCBS Survey, 2017).
  • 27. Local leadership lessons 27 Power distance in Chile Chile scores in line with most Latin American countries though still very low (Hofstede, n.d.) regarding individualism dimension. Chileans tend to think in terms of what works best for the group. It is normal for a Chilean to live with one’s parents before getting married (Bianchi & Mena, 2004). A shift in this dimension is expected. Due to a higher GDP, a large proportion of the workforce is now looking for more autonomy and variety in their positions (Güell, 2004). This is however mostly taking place in capital city Santiago, while outside of the big city life is not changing as fast. Family still plays an important role in the Chilean culture, a point which has also been supported by one of the CCBS Survey (2017) professionals who mentions that the right family connections play a part in what is important for a leader to have. In terms of the Power Distance Index, Chile scores lower than most other Latin American countries. However, it still has an intermediate to high position on this dimension (Hofstede, n.d.). The fact that Chile was ruled for seventeen years by a dictator could explain the higher score in this dimension (Garner, 2015). In Chile, when a boss says something, it is understood to be an instruction, which has to be followed (Kelm, 2011). Maarten Kraaijenhagen, a director in finance, lends support for this: “Chilean companies are probably more hierarchical than European companies and apply more of a top down approach” (CCBS Survey, 2017). A cross-cultural consultant, José Antonio Chamorro, agrees with this, “There can be a big gap between an employee and its manager, it can be very hard to reach a manager” (Chamorro, 13 November 2017). Survey results and what local respondents say To find out more about how Chilean executives and managers look at leadership, the CCBS Survey of 2017 has been conducted. Over fifty respondents took part in this survey, with different views and answers as a result. To start with showing some remarkable results, about eighty percent of our local respondents believe that it is acceptable to address their leader by his or her first name. However, one of the participants clarifies: “Most of the time, and this will also depend on the position of the subordinate. The lower they are in the organization, the less likely it is they will do this” (CCBS Survey, 2017).
  • 28. Cross-Cultural Business Skills minor 28 Secondly, according to the local respondents, men and women do not have equal access to senior leadership positions. Only just over ten percent of the respondents believe that they have equal access to these positions. The gender difference in leadership has also been illustrated by Carla Soto, a sales manager in banking: “Culturally speaking, men are ‘allowed’ to be less formal” (CCBS Survey, 2017). Daniela Gonzalez, an IT senior analyst, explains: “Being a [woman] leader is still an issue in the IT industry, which is the industry I have been in for the past 8 years”. She also regrets that it is still an issue to have more women participate in leadership positions, possibly due to the lack of support (CCBS Survey, 2017). José Antonio Chamorro, a cross-cultural business consultant, still sees the differences, however, he feels like it is changing, “You now see a lot of women getting involved, it is still lower than male participation but it is changing” (Chamorro, 13 November 2017). When you see the statistics regarding entrepreneurship, many women are now getting involved in entrepreneurial business. It is especially PYMES (Pequiña Y Mediana Empresa), or small and medium enterprises, where female managers are increasingly found. These women are showing their presence and importance in the market (Chamorro, 13 November 2017). This shift in the way on how men look at feminine leaders also becomes apparent when reading this significant quote of Juan Rojas Cortés, a general manager in the mining industry: “As all men should know, women do multiply our learning opportunities in many areas of life” (CCBS Survey, 2017). Thirdly, more than three-quarters of the respondents of the CCBS Survey (2017) do not believe that a leader should keep a personal distance from employees in order to maintain the right level of respect. Pamela Carrasco Suazo, a psychologist, agrees on this and believes: “I do not think that there are other countries where a boss of a company invites you to his house for a barbecue”. Another professional from the CCBS Survey (2017), Daniela Gonzalez supports this result: “In my opinion what makes the difference is the fact that a leader cares about his or her team, not only about results but also about them as individuals and their personal life”. She further mentions that it is important that employees can have a balance between their work and personal life. This shows that caring about the wellbeing of Chilean employees is seen as an important aspect of management.
  • 29. Local leadership lessons 29 Local leadership literature analysis In-country leadership specialist For this study, Nicolle Knüst has been interviewed. Knüst was a teacher at Universidad Diego Portales in Innovation, Entrepreneurship and Leadership. Besides having teaching experience. She is also the managing director of Wunder Group, a communication, public relations and marketing company where she has advised over a thousand entrepreneurs. Firstly, Knüst explains that for a leader it is very important to be transparent. Chileans like to know what someone has done in the past. When someone has more experience, one will also be more respected. Knüst believes that a good leader is also a good example, and people will respect a leader more when he or she is also a good role model. In order to receive the respect of Chilean workers, leaders should not expect things from their employees if they are not able or willing to do it themselves. In terms of hierarchy, Knüst believes that it is becoming less and less. In big multinational companies, it is still seen a lot. However, in newer companies, Chileans are becoming more flexible. Finally, Knüst mentions that in order to be a good leader one needs to understand an employee’s personal life since work and personal life are closely related. A person’s personal life could affect the way he or she behaves at work. Therefore, when personal issues are resolved, work productivity is likely to increase (Knüst, 17 November 2017). In-country leadership bestseller One of the best-selling books about leadership was written by the Chilean writer and psychologist Nureya Abarca. She is a psychologist from the Universidad de Chile and has a PhD in Psychology from the University of California San Diego. For her post-doctorate, she followed courses in leadership and teamwork. She has served as Postgraduate Director and Director of the School of Psychology at the Escuela de Administración de la Pontificia Universidad Católica de Chile. Nureya specialises in the subjects of leadership and negotiation. In this book, Abarca (2016) introduces readers to the changes that have taken place in the business world since the incorporation of a new form of leadership. This new form of leadership is directly related to the emotional intelligence of people. The essential value of social skills that executives need in order to face challenges in their work nowadays is pointed out. Different topics that are tackled include the sense of identity and self-realisation, empathy, trust in oneself and others, and the expression of one’s own emotions. These topics
  • 30. Cross-Cultural Business Skills minor 30 will all help in order to become a better leader. Finally, Abarca explains the effective learning tools that are essential to developing a better work field in Chile. Abarca believes that once human capital is considered the most important resource within an organisation, the development will follow, and success is assured. In-country leadership bestseller Local leadership book Title Inteligencia Emocional En El Liderazgo Subtitle Emotional intelligence and leadership Author Nureya Abarca Publisher Ediciones El Mercurio Year 2016 ISBN 9789567402625 How to achieve leadership empathy In order to achieve empatía de liderazgo in Chile, it is common that a Chilean boss hosts a party or an asado (barbecue). This happens at the house of the boss at least twice a year, when the boss invites all his employees and their family members. However, extensive socialising with subordinates in Chile is seen as inappropriate for a boss. Another aspect of achieving empathy in Chile is that a Chilean boss does not show favouritism to individuals in work groups. Emphasising the achievements and efforts of a team as a whole will help build prestige and status at the team level, which is important for the team morale (Lewis, 2006). An important speaker about achieving leadership empathy in Chile is Rodrigo Jordán (Parrini, 2012). He explains that Chileans become more empathetic when people are in a situation of need. Chileans have been known for their solidarity. This quality, however, takes on even greater strength at times of tragedy. According to Jordán, Chilean leaders could distinguish themselves
  • 31. Local leadership lessons 31 when some Chileans at work are in situations of need. Through aiding their colleagues, Chilean leaders could create more empathy towards themselves (Parrini, 2012). In an interview with José Antonio Chamorro, a cross-cultural consultant, he explains that Chilean leaders are expected to be straightforward in negotiations and towards their employees and that Chileans like to have things done quickly. However, he also explains that the communication of Chileans is not straightforward. When doing business with Chileans, a yes might not always mean a yes. When setting up a meeting with Chileans it is important to immediately set up a date and time. When someone mentions that it will happen sometime next week, it is not likely to happen at all. Chamorro further explains that “Chilean leaders are not aware yet of the importance of communication or the cross-cultural communication towards their employees. In that case, they could create more leadership empathy” (Chamorro, 13 November 2017). Methods of feedback Since Chileans are sensitive giving feedback should be done in a correct and not too direct manner. A way to give feedback appropriately is to first point out a part of the behaviour or performance in which people excel before addressing the points which should be improved. Aside from the correct order of comments, it is also wise to appeal to their desire for status and recognition. Instead of cracking down on one’s behaviour, turn it around and formulate it in such a way that the employee will want to work on their weak points to improve himself or herself. Chileans are sensitive to status and externally obtained recognition, so if observations are handed to them as a way to increase their recognition amongst their colleagues, viable and workable feedback has been given (Abarca, Majluf & Rodríguez, 1998). In an interview, Knüst explains that feedback is best to be given face-to-face. When giving feedback it is important to also understand the underlying causes of someone’s behaviour which will help resolving the issues (Knüst, 17 November 2017). Higher educated Chileans tend to be more assertive than their lesser-educated nationals. This should be taken into account when giving feedback to Chilean employees (Abarca et al., 1998). Besides that, in general it can be hard to find assertive people. Most participants of the CCBS Survey (2017) confirm it is hard to find proactive people. Knüst proclaims: “In Chile people are not very proactive, they are used to following rules” (17 November 2017). To summarise this matter, another professional of the CCBS Survey (2017) concludes; “Most people just do what they were told to do, proactive people are very difficult to find”.
  • 32. Cross-Cultural Business Skills minor 32 Costa Rica Anna Bjärkstedt, Angeline van Wijk & Chris van der Goes Costa Rica, which means ‘Rich Coast’, was discovered in 1502 by Christopher Columbus. Located in Central America and bordered in between Nicaragua and Panama, it has coastlines on two sides of the country, with the Caribbean Sea forming its east coast and the Pacific Ocean forming the west coast. Costa Rica has a population of almost five million inhabitants who are called Costa Ricans or, more colloquially, Ticos. Their main language is castellano (Spanish), they pay with the Costa Rican Colon and the majority of the population identifies as Roman Catholic. Another interesting fact is that the Costa Rican population is a multicultural society, and only one percent of the inhabitants have indigenous roots. Not only is the population diverse, but also its economy; traditionally Costa Ricans produce coffee and bananas, but the tourism sector has become an important source of income too. Indeed, Costa Rica is known for its bonitas (beautiful) landscapes and biodiversity (Costa Rica, 2017). A Costa Rican leadership profile Costa Rica, unlike other Latin American countries, puts a strong emphasis on equal opportunities. According to the GLOBE (n.d.) research project, Costa Rica aims at achieving higher gender equality and collectivism. Regarding equality, gender does not seem to be a big issue as many women are in powerful positions. A notable example is Laura Chinchilla (female president 2010-2014). A female professor at a Costa Rican University states: “There is nothing explicit that bans women to be leaders; however, percentages show that men take more leadership positions. Women are leaders in entrepreneurship though. Every year more women are taking [the] lead in business, politics, education and health” (CCBS Survey, 2017). Costa Ricans highly value la familia, la lealtad y relaciones personales (family, loyalty and personal relations). They base their decisions on relationships and do not necessarily close the deal with those who have the best offer. Once Costa Ricans know the other employees better, they will look after their interests and help them in need. If it concerns one of the employees, people will be loyal, and
  • 33. Local leadership lessons 33 they will work overtime without an extra pay in order to support. Costa Rican leaders, therefore, must motivate their employees in the scope of personal relations (Lewis, 2006). This is also a reason why Costa Ricans pay attention to the emotional intelligence of leaders and their attitude towards the team (CCBS Survey, 2017). Unlike other Latin cultures, Costa Ricans are also comfortable with working in groups - trabajar juntos. The decisions could be reached by a consensus of the stakeholders rather than the leader. This allows everyone to submit their input and makes them feel involved and as a part of the decision- making process (Commisceo Global, n.d.). This is supported in the CCBS Survey (2017) by one manager, who emphasises that the collaborative work is much appreciated and that is why leaders are willing to look for new proposals and to listen to the team members’ opinions and ideas. According to a regional HR manager and a retail banking manager, Costa Rican teams feel like family and are involved, interested and caring towards one another (CCBS Survey 2017). To emphasize, Costa Rica has shown environmental leadership in energy projects and the turn-around of deforestation as a result of the country’s ambition to be the first carbon-neutral country by 2021. This leadership has reached governmental and private organisations. There is a nation-wide commitment that deserves attention as leaders in this field have proven to be influencing the population in a tangible way, according to Professor Lena Barrantes (CCBS Survey, 2017). How Costa Ricans characterise leaders Costa Rica scores high in four out of the six leadership styles introduced in the GLOBE project (n.d.). First of all, the charismatic style which means Costa Rican leaders attempt to inspire people and create opportunities for love and passion to perform on a higher level. Secondly, the team-oriented style points out pride, loyalty and highly values team cohesiveness and a joint objective. Then, the participative style encourages input from all team members in decision-making and its implementation. The fourth, humane oriented style embraces compassion and generosity coupled with a supportive attitude. The combination of these four leadership styles best describes an outstanding Costa Rican leader. The CCBS Survey (2017) supports this view of outstanding leaders in Costa Rica. It also ranks highest in team-oriented and charismatic leadership styles. An analysis of the CCBS Survey results (2017) supports these statements since most of the respondents admit that it is important for a leader to have qualities such as
  • 34. Cross-Cultural Business Skills minor 34 organisational experience, technical competence, intellect and a strong charismatic personality. Indeed, employees expect their leader to be a visionary thinker, good listener and a compromiser, as well as a powerful decision-maker (CCBS Survey, 2017). What is more, leaders in Costa Rica are expected to provide guidance and to motivate their employees. If something is wrong, the employees want to talk to their leader as equals, and it is vital for the leader to be fair and have the ability to manage conflict situations (Globe Smart, 2017). In the CCBS Survey (2017) one participant puts forward: “The tag of ‘leader’ of Costa Rica is something given to an individual by peers and it is earned by emotionally engaging them and effectively guiding them to success”. However, it is important for the leader to maintain authority in order not to be taken advantage of. As one respondent underlines: “Never show weakness in Costa Rica!” (CCBS Survey, 2017). Thus, Costa Ricans are comfortable with a strong leader, and as mentioned before, expect their supervisor to be a powerful decision maker, provided that one listens and takes them seriously. To this end, the leader should exhibit an open communication style where the objectives and expectations are clear (IOR World, n.d.). The opinion that Costa Ricans share on what it takes to be a gran líder (great leader) consists of several key features. An outstanding manager leads in a spirited manner and is not afraid to be innovative or to create a vision towards the future. At the same time, one does not forget to stick to the core values and to stay loyal throughout the entire process. Being full of compassion and generosity is also considered a pro in Costa Rica. In cap, an outstanding leader is part of the group and a real team player. Power Distance in Costa Rica According to Hofstede (2017) power distance in Costa Rica is surprisingly low for a Latin American country. Costa Ricans are very much concerned with igualdad (equality), leading to a low distance between managers and employees. This actually means that there is low hierarchy in Costa Rican business life. This is supported by the GLOBE project (n.d.) which indicates this low power distance in value scores. However, the practice score obtained in the GLOBE study (n.d.) is relatively high which means that Costa Ricans experience the hierarchy within a company as high. As Mauricio Mayorga, a Costa Rican professor in leadership, explains: “we
  • 35. Local leadership lessons 35 Costa Ricans consider us all the same [equal], that is an idea we have in our heads, although in the organisations we still have the hierarchy - it’s a paradox” (Mayorga, 17 October 2017). Another example of the perceived hierarchy could be the fact that leaders are given a respectable office space and transportation to reflect their position (CCBS Survey, 2017). Regarding the individualism dimension, Costa Rican scores are more like all other Latin American countries, making Costa Rica a so-called collectivistic country. Aspects like trust, loyalty, personal relations and networking are of significant importance. Because Costa Ricans are strongly group-oriented, they look after and take care of one another. Mayorga says: “when you talk about leadership that is a very important thing to mention, because a good leader focuses on people and not necessarily on tasks or procedures” (Mayorga, 17 October 2017). According to Klockhohn (Nunez, Nunez-Mahdi & Popma, 2014), it has some roots in the fact that Costa Rican children are taught to be ‘we-oriented’. Trompenaars, on the other hand, proposes that the main orientation within the Costa Rican mindset lies within group goals and objectives, resulting in a high score in Trompenaars’ communitarianism dimension (Nunez, Nunez-Mahdi & Popma, 2014). All these findings are reinforced by Mayorga’s statement: “The group is important, and the family is important. When you talk about organisations, organisations are in some way an extension of that family” (Mayorga, 17 October 2017). This clearly concludes that the focus on a group and on relationships is crucial within Costa Rican professional organisations. Survey results and what local respondents say In order to gain more information about leadership in Costa Rica, the abovementioned online survey was conducted. This survey has been filled in by executives and managers with substantial leadership experience in Costa Rica. Below the most important findings are summarised. To begin with, more than half of the respondents agree that a management decision will not be changed very easily and that employees are expected to follow the established procedures. However, the opinions about bending rules are divided. Rules will not be bent unless they benefit the organisation. In this case, the boss is the one who has the authority to bend them. “There is a motivating culture for innovation and improvements. So, having an open a mind for projects is always a good thing for the company and their customers” (CCBS Survey, 2017). More strictly followed, however, are deadlines. Missing a deadline is experienced as a failure (CCBS Survey, 2017).
  • 36. Cross-Cultural Business Skills minor 36 Secondly, most of the professionals feel like you can find different kinds of management styles in Costa Rica. It is the combination of different profiles, ages and experience, which makes identifying the most successful leader profile for a certain company and its targets interesting. “Leaders need to be chameleonic and adapt their style according [to] their direct reports (as individuals) to take from them the best for themselves and the company interests” (CCBS Survey, 2017). Besides this, the leadership styles of men and women are also experienced as different. As one of the executives declares: “Both genders reach the targets with different styles” (CCSBS Survey, 2017). For example, men have to have certain characteristics, and women are expected to have these as well as an exceptional competence in functional areas. Finally, the opinions on how to address the leader according to the titles or positions are very divided. But on a whole, the majority agrees that a leader could be called by his or her first name. “In some cases, they would use ‘Don’ or ‘Doña’ (Mr or Mrs) as a sign of respect” (CCBS Survey, 2017). Local leadership literature analysis In-country leadership bestseller One of the best-selling books on leadership was written by Roy Campos Retana in 2015 and is called Integridad 24/7 ¿Cómo liderar siempre?. His book is about ethics and integrity and deals with the importance of these two subjects within an organisation and their influence on leadership and leaders. Campos says about his book: “This is undoubtedly a book of ethics, but not pure ethics, but integrity, lived ethics, leadership after all”. He hopes to inspire people with his book: “Integridad 24/7 seeks to communicate the implications of personal and professional ethics, to open new horizons of life to readers, hoping to trigger the beginning of a transforming leadership in each one and, consequently, in the organizations where they operate” (Five365, 2015, n.p.).
  • 37. Local leadership lessons 37 In-country leadership bestseller Local leadership book Title Integridad 24/7 ¿Cómo liderar siempre? Translation Integrity 24/7 How to always lead? Author Roy Campos Retana Publisher Promesa Year 2015 ISBN 9968412635 How to achieve leadership empathy One of the keys to achieving leadership empathy in Costa Rica is investing in personal relationships. According to Dabbah and Poiré (2006), there are three key qualities for building a strong and loyal relationship: empathy, effective networking and strong cooperation. These abilities appear to be innate qualities of Latinos as they can easily put themselves in someone else’s shoes. In the CCBS Survey (2017) one respondent expresses, “We are like family”. Similarly, in order to effectively motivate employees and to encourage them to exceed expectations, a leader needs to remember that “It’s about the people”. To reach a company’s targets, the human relationships with the employees are most important (CCBS Survey, 2017). This points out the importance of relationships and empathy, the ability to relate with other people’s feelings and situations. Once you have a good relationship and the employees trust you, they will be loyal and work hard. On the other hand, if they are not really motivated by their trust in you, there is a risk that they will be disloyal and hide things from you, which could lead to unrest among other workers (Lewis, 2006). Similarly, Felipe Garcia, a legislative specialist notes that “Human relationships in Costa Rica are composed by personal and work
  • 38. Cross-Cultural Business Skills minor 38 factors. This creates negative and positive effects. Because you can work very well in some occasions and in others cases confuse the issues” (CCBS Survey, 2017). Due to an openness and easiness to develop relationships, many people do not make a distinction between personal and business matters. Sometimes this trait can cause a problem if people take business problems too personally (Dabbah & Poiré, 2006). Moreover, Lewis (2006) adds that Latin countries are one of the low-trust cultural groups. This means that people in these groups only completely trust those they know best, like family and close friends. However, by showing compassion, accepting closeness and protecting their vulnerabilities one can win trust. Methods of feedback Giving feedback in Costa Rica, whether positive or negative, is a very delicate matter. The CEO of a big consultancy company mentions that: “Leaders of Costa Rica do not like the confrontation of ideas in meetings with the staff, and do not like discussions in public” (CCBS Survey, 2017). Leaders have to tiptoe around this matter to keep staff in unity. Positive feedback is obviously easier; after all, you are giving another person a compliment. But while doing this you have to be careful not to forget about the others, so that they do not feel left out or ignored. When done right, positive feedback is possible in front of other people, Still many choose to also discuss this in private, to keep a group in balance. On the other hand, negative feedback may even be more difficult and is, therefore, not done in front of other people. If someone gets embarrassed in a plenary situation, this might impact that person’s credibility. However, it also affects the leader uttering the negative feedback, as most Costa Ricans will look differently at leaders who disrespect their employees in public. A common practice therefore is that negative feedback is avoided in hope that the issue will resolve itself over time. In those cases where negative feedback is imperative, a leader will take the concerned party aside for a private and an off-the-record conversation. One of the participants mentions, “People in Costa Rica do not love confrontation. I consider [that] a very useful way to avoid bigger issues” (CCBS Survey, 2017). At the same time, Costa Rican people tend to be rather self-critical, and they are not afraid to improve themselves. Maybe this is why the above mentioned ‘laissez-faire’ feedback-method still works, as people are their own reviewers.
  • 39. Local leadership lessons 39 In Costa Rica, togetherness is more important than the actual result. If you put the best man on the job, one might have the best results, but in this country, everybody gets a shot to show what they can achieve and be part of that solidarity. A senior recruiter of IBM comments “We are proactively encouraging people and helping each other to develop their unique skills. Being seen as a partner and someone that is there for you” (CCBS Survey, 2017). In conclusion, feedback is something that is given occasionally, but it does not have a prominent place in Costa Rican leadership practices. This concludes the Costa Rican leadership analysis, muchas gracias.
  • 40. Cross-Cultural Business Skills minor 40 Hungary Stefan Luschen & Vincent Meijering Being one of the oldest European countries, Hungary seems to have taken part in almost every historical event that took place in Europe. Starting as a nomadic tribe that build a settlement in the Carpathian Basin, Hungary, as a country, is older than England, Germany or France. Following the Second World War, the country became part of the former Eastern Bloc. With the fall of the Iron Curtain in the late eighties, Hungary became a democratic country where approximately ten million Hungarians living on a surface of just under a hundred thousand square kilometres. The Hungarian language, or Magyar as it is referred to, actually descends from the Huns. The language most common to it is Finnish which, with a staggering two thousand kilometres between them. (Karpati, 2017;Esbenshade, 2005). A Hungarian leadership profile For Hungarians, a good relationship is of utmost importance. In this light, a leader who builds a relationship with his or her employees would have the advantage. Respect can be gained by speaking about your personal life and interests. Showing interest in the personal lives of employees is said to be valued by Hungarian professionals (CCBS Survey, 2017). However, in an interview with Balázs Heidrich, from the Budapest Business School, it became clear that if an employer knows too much about an employee, it might be used as leverage (Heidrich, 8 November 2017). This problem does not occur in more autocratic companies that maintain more hierarchical distance compared to more democratic companies (Bogel, Edwards & Wax, 1997; Heidrich, 8 November 2017). There is a contradiction between how Hungarian managers generally would like to communicate with their subordinates and how their subordinates would prefer to communicate with their manager. A Hungarian professional elaborates on this: “Dual leadership style exists depending on the sector, size and tradition of the given organisation. Besides the old style, masculine, autocratic style of
  • 41. Local leadership lessons 41 dinosaurs, a modern agile and human-oriented style is also characteristic for start-ups and smaller entrepreneurial companies” (CCBS Survey, 2017). Typically, there are two leadership-styles to be distinguished: there is the traditional autocratic and the more modern democratic style. This distinction is defined by differences such as speaking on first name basis or including employees in decision making. Although in an autocratic type of setting, one might find that employees are still asked about their opinion. However, as Réthi Gábor of the Budapest Business School explains, although employees might ask for a leader’s input, this does not imply they will actually take it into consideration (Réthi, 10 October 2017). The autocratic style hierarchy is stronger, and the person in charge will make sure that everyone knows that one makes the decisions. Or, as one of the CCBS participants puts it: “Generally, in Hungary, respect comes from fear, fear of losing a job, for example” (CCBS Survey, 2017). This fear of losing a job is amplified by the number of people that are dependent on that specific source of income. It is often not just the employee, but everyone that lives under his or her roof, which traditionally can be multiple generations of the same family, who are dependent on the income. In Hungary, few of the elderly go to a retirement home, and a European study shows that Hungary is second only to Poland in their tendency to care for their elders at home, rather than to send them to a retirement home. This fear might also explain the reported dislike for this system and the wish for a more democratic environment (Gelei, Losonci, Toarniczky & Báthory, n.d.; CCBS Survey, 2017; Angermann & Einchhorst, 2012). The person an of an average autocratic leader in Hungary would look like the following: the leader is a middle-aged man, who wishes to be addressed as ‘Mister’ or ‘Mister Director’. He would have a team of task-oriented employees, to whom he delegates neatly-framed tasks. He might ask his employees about their opinion on certain matters, but when there are decisions to be made, he will be the deciding authority. Bálasz Heidrich elaborates on this act of power distance; the personnel of an autocratic leader would actually not mind the rigid hierarchy, as it keeps them from taking risks. This works both ways because if a leader gives his employees too much input, it might appear as if they could do his job, hence the mutual need to keep hierarchical distance. It is this same fear that keeps his personnel from making objections as a manager would probably not admit a mistake (Heidrich, 8 November 2017; Réthi, 10 October 2017; CCBS Survey, 2017). The person of an average democratic leader in Hungary would look like the following: a relatively young man compared to the autocratic leader. He might be
  • 42. Cross-Cultural Business Skills minor 42 the founder of a start-up or manager in an SME. The number of employees might be significantly fewer compared to the autocratic company. He has a small group of intellectuals under his direct supervision. He regards these employees as equal and places his trust in them. Moreover, he shows interest in his employees and their personal lives. His employees are challenged in order to motivate them. His employees address their leader on a first name basis, but he seems all the more respected for it (Czeglédi, 2008; Bogdány, Balogh & Csizmadia, 2014). A democratic environment might seem more favourable to managers from other countries. However, it is important to take into consideration that a large amount of the Hungarian people might prefer the Hungarian autocratic way; this explains why employees might reject a democratic approach (Czeglédi, 2008)(Czeglédi, 2008; Hofstede, n.d.; Heidrich, 8 November 2017). How Hungarians characterise outstanding leaders There are a few conventional leadership styles, but Hungary does not have just one style particular to it. However, Balász Heidrich did come up with a way to describe a Hungarian leader: the godfather-type. He explains that regardless of gender and age, a Hungarian leader ought to be the fatherly type. For instance, a new manager might sense an urge for equality in his or her team or an autonomous mindset. Regardless, it remains important for that manager to set out the direction, make decisions final and establish a clear vision for the future. This explains why it is hard to work on a democratic base in Hungary because, when all pros and cons are weighed out, the father decides (IORworld, n.d.; Heidrich, 8 November 2017). A leader does not have to take the input of the employees into consideration at all, but it might be polite to hear their ideas on the matter. The reason why employees not only seem not to find this offensive but even prefer it is due to the risk avoidance (Heidrich, 8 November 2017). Another thing that leads back to this godfather kind of leadership style is the urge to connect on a personal level. As Heidrich puts it: Being a leader, it is a bit like working in the kindergarten in Hungary, that even the most mature, oldest people you have to deal with are like children, not because they are not smart but because of their behaviour. Very often they have their individual interests which you have to consider while still looking for your organisational goal (Heidrich, 8 November 2017). He explains how work and personal matters cannot be clearly separated from one another. Hence, there exists the need to show interest in employee’s personal lives simply because these external ‘private’ factors ought to be taken into consideration. To understand what good characteristics would
  • 43. Local leadership lessons 43 be for a Hungarian leader, it is necessary to understand the employees first. First and foremost, their scepticism towards leaders in general needs to be accentuated. This scepticism mostly comes from the idea that their individual argument or objection would not make any difference (CCBS Survey, 2017; Łos, 1990). Another reason for hierarchical distance and scepticism is due to the fact that quite a number of Hungarian managers have a technical or engineering background, rather than a managing one; this might contribute to the inherent idea about power distance (Schaltegger, Harms, Windolph & Hörisch, 2014). Not only is power distance important to take into account regarding Hungarian leader characteristics. Far more, a manager should take all aspects towards his or her personnel into consideration. When the Budapest Business School asked its students whether they want to have more interactive classes they unanimously declined. This indicates that even though the younger generation leans towards a more interactive or ‘North-European’ work environment, there is still a vast majority who would rather keep the traditional system. Heidrich Balázs, the rector of the Budapest Business School, explains that it is a matter of how they are brought up, implying that although it might not be in their nature, it does seem to be included in their nurture. Therefore, a change in this mindset needs to be introduced from an early age. During his interview, professor Heidrich explains that “In the current education system in Hungary, it is not common that the student has an input” (Heidrich, 8 November 2017). Studies show that SMOs are generally more interactive (Bogdány, Balogh & Csizmadia, 2014). Réthi Gábor points to a clear distinction between national and international companies, both in terms of work-style approaches as well as employee tolerance to foreign business proceedings (Réthi, 10 October 2017). In Hungary, respect is to be achieved with experience. The three most important aspects are organisational experience, market expertise and technical competence (CCBS Survey, 2017). When asked what the respondents expected most from their leader, it seems that a slight majority say that a leader ought to be a dominant decision maker. A strong, charismatic personality is considered more important than intellect or access to a strong network. Being charismatic is not necessarily gender specific according to the respondents, as long as the leaders compose themselves as a father figure. About gender equality, one of the respondents expresses that: “women try to adapt to a masculine leadership style in order to succeed.” Another respondent, a retail manager: “Generally women try to adapt to male leadership, focussing on being strong and directive” (CCBS Survey, 2017).
  • 44. Cross-Cultural Business Skills minor 44 Power distance in Hungary On Hofstede’s power distance, Hungary scores relatively low. The results state that employees can act independently and that hierarchy is a formality. However, these results might be outcomes of generalised test results. In-depth studies show that hierarchy is to be respected, just like employees are handed specific tasks, which leave them little room for acting freely. The reason why these statements are in the results might be due to the other characteristics in power distance (Hofstede, n.d.; CCBS Survey, 2017). What this implies is that control is disliked and that the attitude towards managers can be informal. The communication is direct and participative as Hungarians do take pride in their knowledge (Globe, n.d.; Hofstede, n.d.; Gelei, Losonci, Toarniczky, & Báthory, n.d.). Countries that score high on individualism can still care about their family or close relatives, which is the case in Hungary. So, to say they are individualistic might be a curt statement (Hofstede, n.d.). Doctor Heidrich emphasises how important family is by the following example: “... here, if you are not with your family during Christmas time, then you are the loneliest person in the world” (Heidrich, 8 November 2017). The Hungarians do not operate a broad network, but family is everything. Masculinity and uncertainty avoidance combined sketch a good idea of why the Hungarian work environment is the way it is. Hungarians have an eagerness for achievement while, at the same time, a distaste for taking risks, which explains the broad acceptance of strong hierarchal distance. The Hungarian people want to have a career in the broad sense of the word, but their uncertainty avoidance withholds them from accomplishing this ambition. Hence, once they are in a managing position, they tend to maintain power distance to establish a sense of being irreplaceable (Culture in Hungary, 2007; Hofstede, n.d.; Globe, n.d.). Survey results and what local respondents say Hungarian professionals share their view and opinions in the following aspects. Firstly, once a decision is made in Hungary, it is usually final, due to the fact that confrontation is generally avoided. Secondly, a lot of effort goes into personal contact between a manager and his or her employees; this is important because Hungarians tend to have a hard time separating business matters from private ones. Thirdly, over half of the respondents state that status in the form of office space, clothing or transportation is relevant for someone with a managing position. If someone has an academic title, it might be good to emphasise this,
  • 45. Local leadership lessons 45 for instance, on a business card or in an email signature. In some companies, it is accepted for a leader to be addressed by his or her title or position. However, almost all the respondents note that it could be accepted to address your employer on a first name basis. Finally, almost a quarter of the respondents say that it is important to follow the rules strictly. But in most cases, it might be that the rules are more or less considered as guidelines. In cap, over half of the respondents elaborate that the rules can be bent if they think it will improve their performance. However, the majority of them add that this is only acceptable when it is really important. Local leadership literature analysis In-country leadership specialist Doctor Balázs Heidrich is the director and a professor at the Budapest Business School. He is also the author of various papers, including The change of organisational culture in the transition period in Hungary (1990). Doctor Heidrich is also a professor of Management and Leadership at the Budapest Business School. Being a professor and the director of the business school, Doctor Heidrich is considered the ideal person to discuss leadership in Hungary. In his paper, Doctor Heidrich argues that it is the role of the leader that plays a determining role in creating as well as changing organisational culture. He believes that this can be achieved by defining behavioural norms and decision-making methods in addition to decisions that influence the value system (Heidrich, 1999). To understand the change in leadership style, Doctor Heidrich identified the social, political and the economic conditions of the present and past. He has identified the characteristics of the organisational culture of Hungarian companies. One of his conclusions: Regardless if it is a woman or a man, it has to be a father figure. So, it is not easy to do democratic leadership in Hungary. I face myself often that I try to be more democratic, and there is no good response. Then again, the truth of the attitude came ‘please tell us what to do we will do but then it is your responsibility.’ So, responsibility is not the strength of Hungarian employees (Heidrich, 8 November 2017).
  • 46. Cross-Cultural Business Skills minor 46 In-country leadership bestseller Several respondents to the CCBS survey indicated that ‘A szeretett vezető’ by Pulay Gyula is considered a popular book about leadership. In this book, the author gives good examples and clear principles on what good leadership tools are and which behaviour is accepted (CCBS Survey, 2017). Local leadership book Title A szeretett vezető Subtitle - Author Pulay Gyula Publisher Harmat kiadói alapitvány Year 2008 ISBN 9789639564220 How to achieve leadership empathy Heidrich talks about three aspects of business: purpose, process and people. The order of these three components is very country-specific he explains. “In Hungary, it is almost always people first, then process and purpose” (Heidrich, 8 November 2017). As a leader, you are expected to know about your employees’ personal life. However, there is a risk to this as Heidrich explains: “It can come back to you as a negative effect when you want to make ‘not so positive’ or unpopular decisions. They know that you are aware of their background yet you make the decision. Which is more strategic or businesswise, it is very logical” (8 November 2017). A positive work environment could be established by turning tasks into group-effort, this will include employees and stimulate participation, thus amplifying the effort that employees will put into their work (Łos, 1990). By addressing everyone on a first-name basis, a relation is established with ease, and a family-like environment will be achieved quicker. When asked how he wishes to be addressed, a CCBS Survey respondent answered the following: “I have no idea, I personally don’t care how my employees address me, as long as