Skema Business School Leadership: Session 3 PDF

SKEMA BUSINESS SCHOOL Leadership: Session 3  The Global Business Leader Case: An American in Paris Cultures and VABES Characteristics of Effective Global Leaders Overseas Experience Deep Self-Awareness Humility - From Good to Gre...

SKEMA BUSINESS SCHOOL Leadership: Session 3  The Global Business Leader Case: An American in Paris Cultures and VABES Characteristics of Effective Global Leaders Overseas Experience Deep Self-Awareness Humility - From Good to Great Group Case Analysis THE GLOBAL BUSINESS LEADER Environmental Factors/Issues SELF OTHERS/PEOPLE TASK ORGANIZATION WHAT IS CULTURE? ▶Explaining a culture to someone is like trying to explain a song without singing it. ▶Culture has many Geography Identity Levels: Human, Global Region, Nation, National region, City, Neighborhood, Family, Individual ▶Culture is a group of people who share a set of significant VABEs (Values, Assumptions, Beliefs, and Expectations) ▶What is the single most important important element of a global leader? The book from good to great says: Humility WHAT IS CULTURE (continued)? « Global Business Leaders must work across all of the categories of geographic identity, and to do so effectively requires (humility): the ability to respect the identities and affiliations of others….the single most destructive VABE is the “I’m Right and You are wrong!” VABE» --James G. Clawson Level Three Leadership CULTURES ARE A COLLECTION OF VABES Hofstede’s Cultural Dimensions  POWER DISTANCE & MASCULINITY INDEX Power distance refers to the relationship between those in power and the subordinates in a society where lower ranking individuals depending on the high or low power distance culture react to that authority. In high power distance countries members of society accept that power is distributed unequally. In low power distance countries people strive to equalize the distribution of power. Masculinity stands for a society in which social gender roles are clearly distinct: Men are supposed to be assertive, tough, and focused on material success; women are supposed to be more modest, tender, and concerned with the quality of life. In high Masculine countries society at large is considered tough and competitive. In high Feminine countries society is consensus oriented and tender. Hofstede’s Cultural Dimensions  UNCERTAINTY AVOIDANCE INDEX In cross-cultural psychology, uncertainty avoidance is how cultures differ on the amount of tolerance they have of unpredictability.... The uncertainty avoidance dimension relates to the degree to which individuals of a specific society are comfortable with uncertainty and the unknown. Masculinity stands for a society in which social gender roles are clearly distinct: Men are supposed to be assertive, tough, and focused on material success; women are supposed to be more modest, tender, and concerned with the quality of life. In high Masculine countries society at large is considered tough and competitive. In high Feminine countries society is consensus oriented and tender. CHARACTERISTICS OF EFFECTIVE GLOBAL LEADERS ▶Overseas Experience ▶Deep Self-Awareness ▶Culturally Diverse (Adaptable) ▶Humility ▶Lifelong Learning and Curiousity ▶Honesty ▶Globally Strategic ▶Well Spoken ▶Good Negotiators ▶Human ▶Presence (visible)  CASE: AN AMERICAN IN PARIS You will find under Session 3 (Common Resourses): The case, the evaluation grid for the case analysis and a document from UNSW in Sidney, Austraila on how to write a business case. ▶In groups of 4-5 students (This is same as your presentation groups) ▶Decide what cultural differences (Hofstede) and VABEs are important in this case. ▶Determine together, what are the main reasons this manager failed. ▶Decide what the manager could have done differently in order to have been more effective. Power Distance: France has a low power distance. Does not accept that power is allocated unevenly High P.Distance country, somebody has the power and I have power over some other people. Power Distance: refers to the relationship between those in power and the subordinates in a society where lower ranking individuals depending on the high or low power distance culture react to that authority. In high power distance countries members of society accept that power is distributed unequally. In low power distance countries people strive to equalize the distribution of power. Sweden has the lower PD, organizations are really flat. They do not appreciate functional conflict, which however is good! In Sweden there are “devils advocate” Chewing Gum → Wrigley’s → functional conflict → disagree with somebody but in a “normal” way, the point is to suggest for improvements by not Individualism/Collectivism: people tend to focus on personal goals, autonomy, and self- reliance. Decisions are typically made based on personal needs and preferences Collectivist cultures: group harmony, family connections, and community responsibilities are more important than individual desires. People in these cultures often define themselves in relation to their social group. Example of countries: Japan, China, Mexico. Individualistic countries → USA (there are historical reasons, US fought for their independence). Collectivist countries: China. When McDonald’s opened in China decided they were giving the employee reward of the month → but you cannot do that in China. France is complex to be defined, “liberty, equality, brotherhood” → but… in the workplace, do French people work well in teams? NO. This comes from the school system, the school system is highly individual. Canada is the country that uses teamwork the most, but Canada is mostly individualistic. Also in the US there is a lot of team work. Masculinity/Femininity: Masculinity stands for a society in which social gender roles are clearly distinct: Men are supposed to be assertive, tough, and focused on material success; women are supposed to be more modest, tender, and concerned with the quality of life. In high Masculine countries society at large is considered tough and competitive. In high Feminine countries society is consensus oriented and tender. Women are considered to be more caring, more tolerant. Men → aggressiveness, tough, assertive. Employees prefer femininity instead of masculinity as a boss. Uncertainty avoidance is how cultures differ on the amount of tolerance they have of unpredictability.... The uncertainty avoidance dimension relates to the degree to which individuals of a specific society are comfortable with uncertainty and the unknown. France → high UA Vs UK→ low UA French are uncertain, French prefer losing money into the LIVREA instead of the potential risk of losing money. France has the highest level of uncertainty avoidance in Europe. In the USA, Blue Chip accounts (biggest companies in the world) mutual funds. LT/ST: ST Orientation, US, I want to get the cheapest price I can. LT: Asian countries, today I can loose a little bit, what I care is to have a solid partner for the future. ST → UK Power Distance: This dimension measures the degree of inequality that exists—and is accepted—among people with and without power. High power distance indicates that hierarchy is accepted and expected within society. Example: Malaysia scores high on power distance, indicating a strong acceptance of hierarchical order. Individualism vs. Collectivism: This dimension focuses on the degree to which people in a society are integrated into groups. Individualistic societies prioritize personal goals, while collectivist societies value group harmony and loyalty. Example: The United States scores high on individualism, indicating a preference for individual rights and independence. Masculinity vs. Femininity: This dimension looks at the distribution of roles between genders. Masculine societies value competition, achievement, and material success, while feminine societies emphasize relationships and quality of life. Example: Japan is considered highly masculine, focusing on competition and achievement. Uncertainty Avoidance: This dimension indicates the extent to which members of a culture feel threatened by ambiguous or unknown situations. High uncertainty avoidance societies have strict codes of behavior and are less tolerant of change. Example: Greece has a high uncertainty avoidance score, indicating a preference for rules, stability, and structured situations. Long-Term vs. Short-Term Orientation: This dimension examines the degree to which a culture maintains links to its past while dealing with the challenges of the present and future. Long-term oriented societies value thrift and perseverance, whereas short-term oriented societies focus on immediate outcomes. Example: China scores high in long-term orientation, reflecting a focus on future rewards and perseverance. Indulgence vs. Restraint: This dimension measures the degree to which a society allows free gratification of human desires. Indulgent societies encourage enjoying life and having fun, while restrained societies have stricter social norms. Example: Sweden scores high on indulgence, indicating a society that values freedom of expression and leisure.