The Impact of Cross Cultural Leadership on an Employees Performance - Essay Example

The impact of cross cultural leadership on an employee’s performance: a comparative study of UK and Nigeria using a case of Royal Dutch Shell Table of Contents Introduction 3 Rationale for the research 4 Aims and objectives of the research 5 Research Methodology 6 Research approach and paradigm 6 Research Design 7 Research techniques 7 Primary research Technique 8 Secondary research technique 10 Preliminary literature review 11 Data collection methods 12 Sampling 13 Data interpretation 13 Findings 14 Validity and reliability 14 Generalizability 14 Potential difficulties 14 References 16 Appendix 18 Introduction Leadership continues to be a topic of interest in the field of management. There is no universal definition of leadership, but there is presence of consensus on the fact that there is involvement of influencing process between leaders and their followers in the leadership so as to make sure that goals and objectives of the organization are attained in an effective and efficient manner (Stone et al 2004). However, as the national economy becomes tied and more closely linked to the international economy, cross-cultural contingencies are required to be discussed as their occurrence is inevitable. A significant management an d leadership practice that is effective and works well in United Kingdom might give way to disastrous results in plant of some other diversified economy and vice versa. Furthermore, the increasingly diversified nature of the workforce across the borders and places where a multi-national company has its operations presents challenges to the leadership from the presence of multiculturalism in the workforce (Dicksona et al 2003). There is a dramatic increase in the cross-cultural interaction in multinational corporations Social scientists define culture as the set of characteristics that are responsible for differentiating groups in a way that is consistently identifiable and meaningful. Combining the two concepts of leadership and culture, the word cross in the cross cultural leadership refers to the culture of the leader or the influencer being different from that of the followers. Thus, cross cultural leadership is the ability of the leader to influence as well as motivate the members of a culturally different group in an intentionally and unequally manner towards the attainment of a defined set of goals and the valued outcome by forming an appeal to the shared knowledge as well as meaning systems of that specific culturally different group. In cross cultural leadership, it is implied on the part of leaders to have an understanding of the implication of the differences present in the knowledge and meaning systems of the followers’ culture and they should well incorporate these differences in their influence process (Bosma 2007). The concept of cross cultural leadership has an effect on the performance of the employee as the there are differences in the leadership style and behavior across cultures and it affects the performance and satisfaction of employees in the organization. Rationale for the research Leadership is an essential ingredient in defining success or failure of the organization. Presence of cultural differences across the organization influences the norms, style, role expectations and traditions that govern the relationship among all the members of the society. A leader who is successful and effective in one culture may not be equally effective in other culture, thus affecting the morale and motivation of employee of other culture (Stone et al 2004). In multinational and global organizations, the concept of cross cultural leadership plays a significant role in influencing the performance of the organization. Royal Dutch Shell, commonly known as Shell, of UK is one of the most valuable companies of the world working in the oil and gas industry and has its operations in many parts of the world. Shell has its operations in Nigeria since 1958 and is the oldest energy company in Nigeria (About Shell, 2013). There are significant differences in the cultural values of Nigeria and UK which create differences in the motivation that drives employee performance. In UK, western industrial culture that is based on values is followed. On the other hand, the Nigerian culture gives emphasis to the tribalism and promotions, ratings etc. are not totally based on performance (Taylor 2012). Therefore, study of the cross cultural leadership in Shell from UK and Nigerian perspective will help in gaining insight over the impact of cross cultural leadership on the performance of employees. Aims and objectives of the research Aim: The aim of the research is as follows: To identify and understand the impact of cross cultural leadership on employees’ performance of Royal Dutch Shell by taking two cultural settings of UK and Nigeria. Objectives of the research In order to attain the aim of the research in an effective manner, it is necessary to frame sound research objectives so that they can guide the action in attaining the research. They should not be vague and should go hand in hand with the aim of the research (Bergh and Ketchen 2009). They are as follows: To understand the concept of cross cultural leadership in multinational corporation. To identify the impact of cross cultural leadership on driving employee performance in Royal Dutch Shell Plc. To understand and assess the cultural differences at the workplace in UK and Nigeria for a multinational company- Royal Dutch Shell. To understand the difference in the leadership styles of leaders when they are working in different cultural settings (UK and Nigeria). To understand leadership challenges faced by leaders in cross cultural settings within an organization and consequent effects on employees’ performance. To recommend solutions in order to meet these challenge by multinational corporations in similar cross cultural situations. To give recommendations for future directions in research on this subject. Research Methodology Research methodology is a significant part of the research report as it gives the explanation of the methods used for the collection of data and the logic behind these methods (Bryman and Bell 2007). Following sections determine the research methodology for the study. Research approach and paradigm Properly defined and well specified research approach is necessary to be taken into account for collecting pertinent evidences and following a logical, as well as, stepwise framework in order to collect data about the research topic. Deductive research approach is chosen for the research study as this approach is easy to use and it is helpful in collection of more specific data about the research objectives. In addition to this, deductive approach is supportive in concern to the collection of more authentic data as compared to the inductive approach (Burney 2008). The deductive approach helps in going from general topic to more specified topic of study and it is suitable for the proposed research as it also goes from general point of discussion, such as cross cultural leadership, globalization, increasing diverse work culture settings, to more specific points, such as, role of cross cultural leadership in influencing employee performance, specific cultural settings of UK and Nigeria for a specific organization, Royal Dutch Shell. The research is based on interpretivism research paradigm. It assumes that social reality is in minds of human beings and is subjective and multiple. Research involves deductive process with the aim of contributing interpretive understanding of social phenomena within a particular context (Burney 2008). In relation to the paradigm, the research can be qualitative and quantitative. The proposed research is the mix of quantitative and qualitative research data with the use of both primary and secondary research methods. Research Design It provides assistance in identification of appropriate set of research methods in order to meet the identified research approach. It acts as the blueprint for the research study for collecting, measuring and finally analysing the data. Exploratory research design is the design type selected for the study as it explores the impact of leadership in cross cultural settings on the performance of the employees of the same organization (Crowther and Lancaster 2008). There are existing researches on this concept; therefore, exploratory research design is selected to explore the topic with the help of use of both secondary and primary research methods. Research techniques Research methods form the key base of proposed research study so as to collect the data about the defined research problem. These methods are helpful in collection of both qualitative and quantitative data so as to prove the defined research objectives. Qualitative research methods justify the development of a theoretical base of the study in order to prove the defined research problem. Quantitative research methods justify the development of practical base of the research study, thus providing assistance in proving the defined research problem and collecting more reliable data related evidences (Fink 2005). Primary data are first hand data and secondary data are collected from literary sources such as, journal articles, books, online information for literature review, case study analysis, review of past and historical records, etc. On the basis of identified deductive research approach and exploratory research design, both primary and secondary methods of data collection will be used. It is helpful in development and framing of an authentic and reliable base of facts so as to reach at final conclusions (Gravetter and Forzano, 2011). Primary research Technique Survey through questionnaire and interview methods is selected to collect the first hand data. As the research topic necessitates understanding of the impact of cross cultural leadership in Shell on employees’ performance, it is necessary to collect the primary data in order to conduct a comprehensive research (Greene and Hogan 2005). The orientation of the survey method is mainly towards the collection of data in terms of perception and opinion of the targeted population about the research issue in concern. It is based on the preparation of a questionnaire which comprises of a set of questions related to the defined research objectives, so that requisite data can be collected from the selected participants (Greig et al, 2007). The survey through questionnaire method is selected as large amount of primary information can be collected within a short span of time. The other method of data collection i.e. observation method cannot be applied to in this research setting as it is time consuming and cannot be applied in understanding of the employee performance by just observing. Interaction and understanding their psyche is important for this research. The reason behind selection of survey method is that it is helpful in collection of pertinent data in a cost efficient manner in comparison to interview and observation. It also reduces the vague aspect of organizing the responses. In addition to this, survey method is helpful in establishment of direct relation between the original perspectives of the survey participants within the context of the research study (Jackson 2008). Another method used for primary data collection is interview method. The interview will be conducted with individual at the managerial level so as to achieve one of the research objectives i.e. understanding the challenges of the leader in managing a cross-cultural environment and differences in culture at the workplace. An interview is a type of method for collection of primary data by asking questions to interviewees in order to discover what they feel, do or think. The suitable method for this research is a semi-structured interview for interviewing the managers because it helps in gaining more information from the participants. It helps to understand feelings, emotions, expectations and experiences of interviewees in depth, which is necessary in interpretivism paradigm as well (Marczyk et al, 2005). Semi-structured interviews allow the interviewee the chance to feel free so that he can communicate about what is more important to him/her than what is important to the interviewer for his research objectives. It will provide assistance in collecting in depth information about the research topic in concern. Furthermore, this method provides an extended flexibility to the researcher in restructuring the questions during an interview according to the existing situation. The personal views of the manager will help the researcher to focus on the complexity of the cross-cultural leadership and challenges faced in context of motivating employees of different cultural settings at a workplace. The selected sample of the population can be observed in a more effective manner by eliminating the possibility of neutral responses from the respondents. Authentic and relevant data can be acquired with the help of the interview method to carry out the analysis of the data in an effective manner (Marczyk et al, 2007). Thus, the survey through questionnaire method is selected for surveying employees of Royal Dutch Shell in Nigeria, and the interview method is selected for gaining in-depth understanding and knowledge of the cross cultural leadership styles of managers working in UK. Secondary research technique Literature review is selected as the method of collection of secondary data. It is helpful in analysis of pertinent information and evidences about the concerned research issue. It involves the critical review of the selected literary sources in order to find out substantial facts for analyzing the proposed research topic. Another key aspect of literature review method is related to the provision of substantial base of theoretical information so as to accomplish the defined research objectives (Marrelli 2005). Literature review method is aimed at the development of strong base of information on a wider level as compared to the other research methods, such as a case study and review of historical facts. It is due to reason that the research issue can be analyzed in a wider context through the application of literature review method. Preliminary literature review Bosma (2007) states that cross cultural leadership is becoming an increasingly interesting object for the researchers due to advancements in communication, globalization and operations of multinational corporations. The global economy of today is changing the fundamental nature of doing business. The cultural difference separates the cross cultural leadership from the concept of simple leadership. Leadership styles that possess compatibility with the cultural values of the employees are generally retained as well as practiced by employees. An improvement in the performance of the employee serves the purpose of reinforcement to the cross cultural leaders and they continue to practice the same leadership style that has the achievement of contributing to the good performance of the employee (Bosma 2007). However, there is presence of some unique leadership behaviours that are associated with specific cultural backgrounds. In Nigeria, loyalty to the members of the tribe drives the organizational cultural behaviour. The performance of employees, decisions related to promotions and performance pay etc, are not solely dependent on performance, rather they are biased. House et al (2002) state in this context that the leadership style that is practised in a western culture based entirely on performance cannot be practices in indigenous culture of Nigeria. It has an impact on the performance of employees. 4-Dimensional Model of Cultural Work Values given by Hofstede states differences in national cultures because of citizens of most of the countries get an exposure to same language that is dominating, education system, mass media, national army, political system and a common national market for goods and services (House et al 2002). The leadership behaviour that is the reflection of the national values of employees influences the performance of the employees by encouraging them to work harder and give more contribution to productivity (Dicksona et al 2003). Societal cultural practices and the values affect leader’s behaviour and styles. Leadership as well as societal cultural values and practices affect the organizational culture, form and practices. The specific attributes and practices that differentiate cultures from each other are also indicator of the attributes and behaviours of leaders, and organizational practices. Data collection methods The questionnaire in the survey method will comprise of close-ended questions in which specific options are given with respect to each of the questions based on Likert scale, so as to resolve the issue of vagueness in the process of integrating and then interpreting of the survey responses (Fink 2005). For the purpose of interview, a set of open ended questions is included in the survey questionnaire. It signifies the base of the process to acquire specific information from the participants in a detailed and in-depth manner. Open ended questions are helpful in collection of the responses and perspective of the participants in more details so as to relate the generalized data with the specific results (Jackson 2008). Sampling Random sampling is selected for the selection of participants for the survey. It eliminates the biasness on the part of the researcher and provides equal chance to the members of the target population to get selected in the sample (Fink 2005). The sample will comprise of 100 employees of Royal Dutch Shell working in Nigeria as Shell is a UK company and Nigeria has different work culture. So, survey Shell Nigeria employees will help in understanding the impact of cross cultural leadership in an effective manner. The questionnaires will be sent via internet which employees will be given enough time to fill and send back. It is cost saving as well as time saving. Employees can fill data as and when they get time as there is no hurry and the questionnaire is present in their mails. The interview is conducted with the individual at managerial position via Skype. Data interpretation The data collected from survey through questionnaire will be interpreted via graphical presentation of data. The graphical method is helpful in making interpretation of the survey responses in an effective manner and it signifies easy understanding of the explored facts and evidences. It makes the data analysis section comprehensible and self explanatory for the readers. Therefore, it is considered to support the results of the research study in practical terms (Connolly 2006). The data collected from the interview method will be analysed by recording the interview and transcribing the data into transcripts so as to analyse the data and arrive at research findings (Jackson 2008). Data analysis is done by explaining the findings and factors theoretically with the help of use of transcripts of the interview. Findings Validity and reliability In order to make the research reliable and valid, voluntary consent will be obtained from respondents so that they can actively get involved in the research process. The personal information of the respondents will be kept confidential. The credibility of the analysis is maintained by recording the data while interviewing the participant without including personal bias in the analysis (Fink 2005). Generalizability The generalizability of the research work is the extent to which the findings and interpretation of the research can be applied to other similar work. The important considerations for maintaining the generalizability of the research includes sample size maximization and the use of inclusion criterion in conducting the research work. The procedure followed for the research should be standardised and well-defined (Crowther and Lancaster 2008). The results of the research can be applied to other MNCs working in the similar context of cross-cultural leadership, thus making the research generalizable. Potential difficulties The difficulty can arise in obtaining consent of the participants selected for the research. In order to overcome the problem, prior permission will be taken from the HR department of the company by sending a letter to them for the research in concern. Only after obtaining the permission from the company, the research will start, so as to avoid any uncertainty. Furthermore, any hesitation of participants regarding disclosing of information will be done away by following ethical considerations, for instance, obtaining voluntary consent, maintaining anonymity of the participant, confidentiality of data provided and no personal use of the data. The research will be completed as per the research timeline which is 12 months (Appendix A). References About Shell. 2013. [Online]. Available at: http://www.shell.com.ng/aboutshell.html [Accessed on: 11 March 2013]. Bergh, D.D. and Ketchen, D.J. 2009. Research Methodology in Strategy and Management. Emerald Group Publishing. Bosma, T. 2007. Effective Leadership Practices in Cross-cultural Conflict Resolution: A Qualitative Study. ProQuest. Bryman, A. and Bell, E. 2007. Business Research Methods. Oxford University Press. Burney, S.M.A. 2008. Inductive & Deductive Research Approach. [Online]. Available at: http://www.drburney.net/INDUCTIVE%20&%20DEDUCTIVE%20RESEARCH%20APPROACH%2006032008.pdf [Accessed on: 11 March 2013]. Connolly, P. 2006. Quantitative Data Analysis in Education. Routledge Crowther, D. and Lancaster, G. 2008. Research Methods: A Concise Introduction to Research in Management and Business Consultancy. Butterworth-Heinemann. Dicksona, M.W., Hartogb, D.N.D. and Mitchelson, J.K. 2003. Research on leadership in a cross-cultural context: Making progress, and raising new questions. The Leadership Quarterly, 14, 729 – 768. Fink, A. 2005. How to Conduct Surveys: a Step by Step Guide. Sage. Gravetter, F.J. and Forzano, L.A.B. 2011. Research Methods for the Behavioral Sciences. Cengage Learning. Greene, S. and Hogan, D. 2005. Researching Children’s Experiences: Methods and Approaches. Sage. Greig, A., Taylor, J. and Mackay, T. 2007. Doing Research with Children. 2nd ed. Sage. House, R., Javidan, M., Hanges, P. and Dorfman, P. 2002. Understanding Cultures and Implicit Leadership Theories across the globe: an Introduction to project GLOBE. Journal of World Business, 37,3-10. Jackson, S.L. 2008. Research Methods: A Modular Approach. Cengage Learning. Marczyk, G.R., DeMatteo, D. and Festinger, D. 2005. Essentials of Research Design and Methodology. John Wiley and Sons. Marrelli, A.F. 2005. The Performance Technologist’s Toolbox: Literature Reviews. Performance Improvement 44(7), pp. 40-44. Stone, A.G., Russell, R.F., and Patterson, K. 2004. Transformational versus servant leadership: A difference in leader focus. Leadership & Organization Development Journal, 25(4), 349-361. Taylor, S.D. 2012. Globalization and the Cultures of Business in Africa: From Patrimonialism to Profit. Indiana University Press. Appendix a) Timeline for proposed research The suggested time line for the study is as follows: Research Activities Time Period Introduction and Background of the Topic(Definition of the Objectives and the Research Problem) 2 month Literature Review 3 months Research Methodology (Questionnaire Methodology) 3 months Data analysis and Findings 3 months Recommendations 1 month The Gantt Chart for the activities of the research, has been presented below: Read More