Perception of Cultural Diversity and Leadership in Global Business Environment - Essay Example

Perception of Cultural Diversity and Leadership in Global Business Environment The exercise of leadership is undergoing drastic changes in the globalbusiness environment. The recent trends in the industry and commerce are the direct result of the social and cultural sharing facilitated by the first hand contacts with diverse cultures that is the result of the international nature of modern business. Leadership in business is a social construct and has to function in a context. However, gaining perception of the alien and distant cultures is a formidable task. The behavior of people is the result of the interplay of cultural, historical and socio-political forces over many years. Cultural Diversity: Need for Empirical Studies The desktop research based evidence is poor equipment for a modern manger of business. Our notions and assumption of other cultures gathered from easy armchair research may be the worst trap for a manager. However, the science of ethnography has given insights into patterns of behavior that are found in other cultures and a grounding in the ethnography of the social milieu in which a manager is going to apply the skills is a necessary preparation to function in the international context (Geertz, 1973). Captains of industry and business should undergo a process of empathetic inculterisation with the milieu of their functioning so that they will be in a position to interpret the raison d'etre of the reality in the alien culture. In the wake of globalization, with the increasing internationalization of business and the importance of the perception of cultural diversity for leaders, the academia has churned out a plethora of eminent studies in the field. A review of the literature relevant to the present study is essential to gain a penetrating insight into the functional aspects of leadership in cultural diversity. Motivation Ever since Psychology became an independent branch of enquiry, motivation came under the microscope of scientists. However, the study of motivation in the cultural context is new, early theories form a good beginning. Alfred Adler postulated a theory of drive that motivates humans for action. He calls it striving for perfection (Adler 1926). This striving is expressed in a number of separate drives called the esteem drives. Though Adler's theories do not have the appeal of Freud's with it sex-centric formulations, or Jung's mythological dimensions, for studying motivation and leadership in business it serves as a solid foundation like that of Maslow's theories. . Adler's theory remained a matter of serious pursuit in scholarly circles in spite of its was less flamboyant than the sensational Freudian and Youngian assertions. Victor Frankl's (1963) finding in the dehumanizing conditions of the German concentration camp, which he experienced personally focuses on meaning as the prime source of motivation. Meaning is irrespective of environmental conditions. Frankl observed how people who had meaning endured better the worst atrocities inflicted on them. He puts his theory of human motivation in the borrowed phrase from Nietzsche, if you have a why you almost have a how. The therapy that he derived from his theory he called Logotherapy, which is providing meaning for one's existence. Perception of Diversity as a Management Tool A number of pivotal studies on cultural aspect of motivation and leadership in international business environment has unearthed the areas of trouble and has given a road map to success. Hofstede (1980) has done pioneering work in this area. He has based his theories on the factors that motivate western societies and applied them to international cultural contexts. He finds that loose societies or individualistic societies give lot more priorities to social recognition, self interest and egoism and gives more importance for personal achievement and expects some form of reward. While other cultures are happy to achieve success collectively as the members of the social group.For successful leadership performance, Hofested argues, the manager should understand that it is the culture that gives meaning in a given environment. The leader should realize how we belong to a group and do not fit in a group. The paradigms that fit in one culture may be alien to another culture. The social context of increasing individualism in American and much of European culture is alien in many parts of the world. Out there, collectivism reigns supreme. Much of the discussion in the US and Europe based on masculinity and femininity would sound strange and unnecessary in many oriental countries. In the emerging Chinese economy, it would surprise many Americans and Europeans the long dead Confucius and defunct communist ideals are still active as a source of ordering social hierarchies. Hofstede (1980) warned against the pitfall of considering culture of an area having consensus and harmony. Underneath the social reality of existence, there is conflict which results in evasive behavior, compulsive strategies which compels the participants of a culture to be constantly adapting to everyday life. Even to a person nurtured in a culture this is a daunting task and the alien leadership is compelled to take part in this difficult drill of adaptation. The Chinese society is formed on the values subliminally perpetuated in the people's psyche (Hofested and Bond 1988). The central idea of Confucius emphasizes that people exist in a hierarchy. This is the basis of social relations. Therefore, the study of Chinese ethnology helps managers to understand the ideal of imperial authority and politics of domination. To the Americans and Europeans who are shocked and puzzled at the Chinese practices the only answer is the snub of Julius Caesar to Britanicus' inability to understand Egyptian cultural difference in the Shavian play: He is a barbarian, and thinks that the customs of his tribe and island are the laws of nature (Shaw 265). . . Universalist versus Particularist The world as a global village is no more a pipe dream. The technological advancement in communication and transportation, the emerging trend of political co-operation between the nations, the global nature of business, the changes in the way we work, the opportunity to outsource work and the emergence of globally understood language of communication have given a wealth of opportunities to manage business with increasing productivity and profit. Every opportunity is accompanied by a host of hurdles. Fons Trompenaars has done pioneering work to unravel the right approach for leaders in the context of cultural diversity. The application of the key concepts that he has pioneered in his painstaking research has been the first step in salvaging, the many traditional enterprises that was heading towards ruin. Though change is the only unchanging thing in the world, the capacity of the human mind to cope up with change is somewhat limited. However, the be-all or end-all of all enterprise in the context of cultural diversity is the capacity to adapt to change. Trompenaars' Seven Dimensions of Culture Model is an oft-heard business parlance in today's academic and business milieu. The theory used to evolve methods of problem solving. The practical method of applying this method is now called The Models of Freedom. In this method employees are encouraged to differentiate between his personal behavior and cultural behavior. His work Riding the Waves of Culture delineates the practical relationships in international management when they work with culturally diverse workers and clientele. His work gives importance to processing knowledge in a cultural context .His recent book, Did the Pedestrian die identifies two type of thinking, universalistic and particularistic. The universalist thinks in terms of general but particularist takes into consideration the exceptional. In the corporate context, this cultural difference in approach creates difficulties for a manger. A manager should know how to combine approaches of a universalist and a particularist. Trompenaar also identifies how knowledge is handled by different cultures. In an individualistic society, knowledge is handled as a private property while communities where there is greater importance to society, knowledge is shared. The power of shared knowledge is the strength of some cultures. In some cultures, there is importance for interiority so changes in the organization is matter of change in the mind of the individual. The conclusion drawn by him in his book, 21Leaders for the 21st Century is the declaration that the only real competence an effective leader needs is the ability to integrate opposites. The Ideal Global Manager and his Assets The evolving nature of international business has added the list of type of managers a new category now christened as the global manager. A global manager has first hand understanding of international business, has ability to work in a cross-cultural milieu. It is now widely recognized that the critical factor for companies to succeed in global environment is the development of global managers and executives. A survey of studies on global mangers shows that most of them are conceptual rather than empirical. There have been some studies that identified the competencies for a global manger and the relevant psychometric test that can be used to measure their personal qualifications. Some researchers have analyses the causes of failure in overseas assignments and have initiated HR practices that help organization to retain competent Global managers (Mendenhall&Oddou, 1985). Based on the insights of research a number of global HR practices have stolen the show. The former ethnocentric image of the manager is now shed in staffing; global manager can come from anywhere. A global mindset and global leadership are paramount today. The present focus in the training aspect of global managers is not to train for job, but cultivate the mind. Cultural Diversity a Passing Phase of Business Evolution There are some scholars who suggest that the present concern of cultural diversity is only a passing phase of globalization and is prelude to cultural homogeneity. However a cursory glance of the nature of the world today torn between various conflicts of culture to hold such an optimistic view is too nave, at least for quite some time. This view has been vehemently challenged in the international management area in general and in the management of knowledge area (Adler, 2002). According to the theory of comparative management explores the possibility of achieving high level of synergy that can be brought the forefront by the diversity of its personnel.It is argued that cultural context is a vital knowledge management ingredient. Values Orientation Theory and Social Priorities Even before globalization was thought of, the amazing variety of cultural expressions found in the world have been subject of study by social psychologists. The attitudes of people are based on a limited number of stable values, which they hold on to. Kluckhohn and Strodtbeck's (1961) Values Orientation theory suggested that all human societies should tackle a limited number of problems. However, different cultures have different priorities in tackling these problems. They studied five different cultural groups. Their theory have been now put to the test in many cultures and their findings have been validated and have acceptance as universal of set of values. The knowledge of the process of prioritization in different cultures is indeed a valuable asset for managers in the exercise of leadership for motivating the work force. Conclusion The face of workforce in the globalized milieu is divergent. This can be area for conflict or an opportunity for growth. Communication assumes far more important role in the work place. The problems related to cultural diversity can be solved when people have new ideas to think about. Finally, whether we like it or not cultural diversity is a reality that we have to learn to live with. =========== Work cited Adler, A. Proceedings of The Royal Society of Medicine, 1927, 20, 11811186 Adler, Nancy J. International Dimensions of Organizational Behavior. Third Edition, Cincinnati, OH, South-Western, 2002. Kluckhohn, F.R. & Strodtbeck, F.L. (1961). Variations in Value Orientations. Evanston, Ill.: Row, Peterson Frankl, V. E. (1963). (I. Lasch, Trans.) Man's Search for Meaning: An Introduction to Logotherapy. New York: Washington Square Press. Hofested, G. (1980). Culture's Consequences: International Difference of Work related Values Hofested, G. and Bond, M.H. (1988). 'The Confucius Connection: from Cultural Roots to Economic Growth', Organizational Dynamics. Pp. 5-21. Mendenhall, M.E. and Oddou, G.R. (1985) The Dimensions of Expatriate Acculturation: A Review. Academy of Management Review, 10:39-47 Mendenhall, M. and Oddou, G. (1999). Readings & Cases in International Human Resource Management. (3rd edition) Cincinnati, OH: South-Western College Publishing. Shaw Bernard.(1931)The Complete Plays of Bernard Shaw. Constable.: London. Page Number: 265 Trompenaars, F.(2003) Did the Pedestrian Die Capstone Publishing Trompenaars, F. & Hampden-Turner, C.(2001) 21 Leaders for the 21st Century Capstone Publishing. ========= Works cited. Geertz, C. (1973). 'Thick Description: Toward an Interpretive Theory of Culture'. In TheIinterpretation of Cultures. New York: Basic Books, 1973. Read More