LEIC EXAM Notes PDF

Culture pyramid: Culture: Personality: specific to individual, inherited & learned. Beliefs and Values: What is true? What is important? Culture: Specific to group, learned Bottom of the iceberg: invisible world (shared beliefs, valu...

Culture pyramid: Culture: Personality: specific to individual, inherited & learned. Beliefs and Values: What is true? What is important? Culture: Specific to group, learned Bottom of the iceberg: invisible world (shared beliefs, values, Human nature: Universal & Inherited giving meaning to the visible world, implicit and subjective) Artifacts and Behaviors: Workplace, procedures and rituals, symbols, Spheres of Culture myths National: history, geography, climate, religion etc. Top of the iceberg: visible world (evident and objective) Industry: Resources, Technology, Product, Market Regional Spheres of Culture (key learnings) Corporate: founder, Leader, Stage of Development, Culture of a group Administrative heritage etc. forms our identity; gives us a sense of belonging, security and Professional: Education, Training, Socialization etc. significance; gives us particular boundary of appropriate behavior; Functional: Task variety, Task environment, Time makes us follow that group’s preferred approach horizon Depending on the situation, each of the beliefs and values of these cultural Why culture matters: groups come more or less into play, and interact with each other. “The world is getting smaller” myth In multicultural teams, the own cultural idiosyncrasy amplify (because the “Management is management” myth feeling of threat toward basic identity that being surrounded by differences) Source of creativity and innovation Process losses: Task conflict, social Cultural differences in Mergers and Acquisitions: integration issues 1. Cultural difference caused failure. 2. Cultural difference is a source of knowledge, value creation, and Process gains: Increased creativity, greater innovation. satisfaction a. Threat and conflict can contribute to value creation. Leadership with 3 inherent and 3 acquired 3. Differences in organizational culture and in national culture may diversity = Out-Innovative / Out-Perform influence cross-border M&A in distinctive ways. Source of competitive advantage 4. Creation of a new organizational culture have a significant positive Types of cultural groups: impact on knowledge transfer. Nationality, Gender, Socio-economic class, Political MIS factors: group, educational level/type, Religion supporters, MIStrust, MISperception, MISinterpretation, MISevaluation Age, Physical ability, Sexual orientation, Organizational, Functional, Manchester United Intercultural competence: the ability to effectively work and function in a different, unfamiliar culture context. Stereotyping: a common but oversimplified and fixed image or idea of a Intercultural models: particular type of person or thing (selection – step 1). Intercultural traits, Intercultural attitudes, Capability Based on the tendency to group things together (interpretation – Innovation step 2). Reconcile (combine) values which are not easily joined. Often unconscious and in line with our own cultural programming. Therefore scarce. Therefore profitable we tend to exaggerate similarities of things within the same group and differences between groups (organization – step 3). Reconciliation Recognize – increase awareness of cultural differences Conflict facework behaviors Respect – appreciate cultural differences Face is a cluster of identity, and relational- based issues that Reconcile – resolve cultural differences surface before, during and after the conflict process Realize and Root – implement reconciling action Face is associated with respect, honor, status, reputation, credibility, competence, network connection, relational Reconciliation obligation issues Way of learning through dialectical experience Self-face, other-face, mutual face Process of finding innovative solutions (conflict -> progress) Opportunity for competitive advantage International qualities: Concept of continuous improvement Learning languages: learn & use language. Valuing differences: Sensitive to different perspectives. Lingua franca: a language used for communication between Rapport: Build relationships & sense of “we”. groups of people who speak different languages. E.g., The New thinking: understand unfamiliar fields international business community sees English as a lingua Range of styles: influence people through different means. franca. High context: Appropriate communication depends on the context, decoding the situation, the relationship, the non-verbal behaviour, so we should invest time in getting to know people to communicate efficiently using a shared code. communicate implicitly; Focus on relationships; Said and meant can be different; personal trust and loyalty Low context: Appropriate communication depends on the text, using concrete, logical, unambiguous task-orientated language, so we should be explicit and transparent (personal relationships are nice but not necessary). communicate explicitly; Focus on tasks (relationships optional), What I say is what I mean, clarity is valued, distinction between social and business communication Pull competencies: Flexible behavior: Adapts easily to different social and cultural situations. Learned or willing to learn range of behavior patterns. Welcoming strangers: Initiates contact and build relationships with new people. Accepting: Tolerates and positively accepts different behaviors. Flexible judgement: Doesn’t come to quick and definitive conclusions about new peoples and situations. Push competencies: Focus on goals: Sets specific goals and tasks in international projects and has persistence in achieving them regardless of pressures and distractions. Inner purpose: Strong values and beliefs that provide consistency in unfamiliar circumstances, or when facing pressures that question judgement or challenge sense of worth. Resilience: Able to overcome any embarrassment, criticism, or negative feedback and has an optimistic approach to life and ‘bounces back’ when things go wrong. Spirit of adventure: Ready to seek out variety, change and stimulation in life, and avoid safe and predictable environments. Inner direction People can control nature or their environment to achieve goals. This includes how they work with teams and within organizations. Get agreement on and ownership of clear objectives. Make sure that tangible goals are clearly linked to tangible rewards. Discuss disagreements and conflicts openly; these show that everyone is determined. Management-by-objectives works if everyone is genuinely committed to directing themselves towards shared objectives and persists. Outer direction People think that nature or their environment controls them; they must work with their environment to achieve goals. Achieve congruence among various people’s goals. Try to reinforce the current directions and facilitate the work of employees. Give people time and opportunities to work quietly through conflicts; these are distressing. Management-by-environments works if everyone is genuinely committed to adapting themselves to fit external demands as these shifts Monochronic (Sequential) Polychronic (synchronous) People see the past, present, and future as an arrow. They place a People see the past, present, and future as interwoven periods. high value on punctuality, planning and sticking to the plans. They often work on several projects at once, and view plans and “Time is money” commitments as flexible. Used to bring order, and set limits Time is a concept People do one thing at a time Times are guidelines/ intentions Times are precise Time is relative Time is limited; is a resource that needs to be efficiently used Time is cyclical. What has been will be again, in due time Logic, efficiency and speed are the focus of business Relationships and effectiveness are the focus of business Tasks are secondary to time Time is secondary to tasks “Meeting deadlines” is commended Task completion is more important than meeting deadlines Universalisms Particularisms Common standards and rules should be followed, Obligations to particular people and special circumstances come before and everyone should be treated the same. abstract rules. Without exceptions, we weaken the human ties we depend on: Exceptions weaken the system we depend on: Flexible customer focus Core business focus Customisation & localisation Standardization & globalization Particular circumstances & requirements Fairness & consistency Appropriateness & contextualisation Transparency & simplification Subjective measurement Objective measurement Oil painting – opinions convince Black & white photo – facts convince Personal networking Analytical marketing Art of management Science of management Trust placed in networks of relationships Trust placed in systems and models Tasks are assigned to people People are assigned to tasks Ascription oriented Achievement oriented You should be valued for who you are. Power, title and position You are what you do and base your worth on that. These cultures are important in these cultures, and these roles determine value performance, regardless of who you are. behavior. Respect for a manager is based on knowledge and skills Respect for a manager is based on seniority MBO and pay-for-performance are effective tools Direct rewards from the manager are more effective than Decisions are challenged on technical and functional grounds MBO and pay-for-performance Decisions are only challenged by people with higher authority Individualists Communitarianism Values of freedom, honesty, self-actualization Values of harmony, face-saving, meeting in-group’s needs “I” identity “ WE” identity Individual goals Group goals Look after yourself and immediate family Group loyalty provides security Distinguish own priorities and opinions from others in Do not distinguish own priorities and opinions from others in the the group group Conflict is inevitable and if well channelled can lead Conflict should be avoided as it disturbs group harmony and so to positive outcomes motivation Control through personal guilt Control through group shame Low sense of in-group/out-group, individuals form Strong sense of in-group/out-group, high sense of personal obligation groups based on common interests or tasks; low sense to in-group members and low or no obligation to out-group members of personal obligation to members of the group Private life is invaded by groups There is a basic right to privacy Diffuseness oriented Specificity oriented Good relationships are vital to meeting business objectives, Relationships don't have much of an impact on work objectives. same relationships whether meeting at work or socially. Private and business agendas are kept separate from each other Private and business issues interpenetrate Management is the realization of objectives and standards with Management is a continuously improving process by rewards attached which quality improves Conflicts of interest are frowned upon Consider an employee’s whole situation before you Clear, precise and detailed instructions are seen as assuring better judge them compliance, or allowing employees to dissent in clear terms Ambiguous and vague instructions are seen as allowing Begin reports with an executive summary subtle and responsive, personal interpretation Direct to the point End reports with a concluding overview Picturesque communication Neutral People don't reveal what they're thinking or how they're feeling. Affective Avoid warm, expressive, or enthusiastic behaviors. This will People express their emotions, even spontaneously, at work. be negatively interpreted as a lack of control over your feelings Avoid detached, ambiguous and cool demeanor. This will and inconsistent with high status be interpreted negatively as disdain, dislike, exclusion, or If you prepare extensively beforehand, you will find it easier to social distance “stick to the point”, i.e., the neutral topics being discussed If you discover whose work, energy and enthusiasm has Look for small cues that the person is pleased or angry and been invested in which projects, you are more likely to amplify their importance appreciate tenacious positions Tolerate a surplus of emotionality without getting intimidated and moderate their importance CULTURES Responsible global leadership: A Workplace innovation culture: is defined Principle of Management: leadership approach that recognizes and as a combination of norms (practices, Management is the art and skill of addresses the economic imperatives of policies, and routines) and values that getting things completed through effective management while maintaining enable employees to participate in people. It involves planning, moral integrity, especially when confronted organizational change and renewal to organizing, leading, and controlling with diverse ethical perspectives and values improve the quality of working life and resources effectively and efficiently on a global scale. organizational performance to achieve organizational goals. Leader-member exchange (LMX) theory What does managers do? High-exchange relations Planning: Vision & Mission; strategizing; goals & objectives. high level of mutual influence Organizing: Organization design; Culture; Social networks leader: assigns subordinate to interesting tasks, delegates, Leading: Leadership; Decision making; Communications; shares information, provides tangible and intangible benefits Groups/Teams; Motivation follower: requested to work harder, be more committed, be Controlling: System/Processes; Strategic HR loyal to the leader, share some of the leader’s duties Low-exchange relations A successful global leader needs to... low level of mutual influence broker symbiotic relationships between company and local country leaders: provides standard benefits for the job manage distance between the HQ and the local operation follower: compliance with formal role requirements recognise the perceptions of follower locals take a step back from local context and see the global picture Leadership: Ability to influence a group toward the combine affability with toughness achievement of a vision or set of goals. walk the talk, and avoid only lip-service minimise gap between own skills and first line managers LEADERSHIP learn how to cool down a bit, be realistic about speed of change prepare for a tough re-entry back to the home culture Leadership theories: From trait to contemporary beware of copy-paste since the context is always different Trait Theories – What are the traits of an effective leader? Attributes of an individual that differentiate leaders from non-leaders: o Personality: Dominance & Masculinity, self confidence; Meta analysis: Big 5 and leadership; Extraversion; Conscientiousness; Openness; Agreeableness; Neuroticism o Social o Physical o Intellectual attributes While traits can predict leadership, they do a better job predicting the emergence of leaders than identifying effective leaders. Behavioral Theories – What does an effective leader do? Initiating structure: “Oriented towards the task/production; emphasizes technical and productive aspects of work” Consideration: “Oriented towards people; emphasizes interpersonal relationships and the needs of employees” Contingency Theories – How does the situation impact effective leadership? Leader-Participation Model: rules to determine the form and amount of participative decision making. Fiedler's Contingency Theory: for a leader to be effective, their leadership style must fit the situation Path–goal theory: leaders are flexible and can change their style, as situations require. Contemporary Theories – How does a leader engage in a relational, collaborative, and ethical process of leading, in order to achieve a socially responsible common good? Management: Leadership: Planning and budgeting: establishing detailed steps & timetables, Establishing direction: Develop a vision & make allocating necessary resources. strategies for it. Organizing and staffing: Establish structure for accomplishing plan Aligning people: communicate in words & deeds to those requirements, staff that with individuals, delegate, provide policies & in cooperation to influence the creation of teams & procedures for guidance, create system to monitor implementation. coalitions that understand & accept the visions & strategies. Controlling and problem solving: Monitor results, identify Motivating and inspiring: energizing people to overcome deviation from plans, plan & organize to solve it. political/ bureaucratic/ resource barriers by satisfying basic Produces a degree of predictability and order and has the potential needs that are often unfulfilled. to consistently produce the short-term results expected by various Produces change, often to a dramatic degree, and has the stakeholders. potential to produce extremely useful change. Transformational leadership “Ability to inspire, act as a role model, and intellectually stimulate, develop, or mentor their followers thus having a profound and extraordinary effect on them.” Collaborative leadership “Ability to engage people and groups outside one’s formal control and inspire them to work toward common goals despite differences in convictions, cultural values, and operating norms.” Classical leadership: hierarchical and siloed, emphasizing control, authority, and efficiency within closed systems, where leaders are the primary decision-makers and followers are led. Contemporary leadership: values interconnectedness and empowerment within open systems, where leadership is a collective process, fostering shared vision, dialogue, and adaptive solutions initiated from any level. Identity leadership acts focus on leaders’ management of a shared sense of ‘we’. (advancing, representing, creating, embedding) Trends Profit to purpose and values: Having purpose and meaning energizes and motivates people, driving passion. Inspiring work breaks down bureaucracies and silos, unleashing organizational potential, while aligning purpose with team and individual goals, shared values, and clear behaviors to facilitate decision-making. Hierarchical pyramid to network of teams: Networks of teams enhance agility, speed, and engagement, typically comprising up to 15 multidisciplinary members. These teams, connected to form larger networks, are responsible for their own results, fostering responsibility, entrepreneurship, communication, adaptability, and mutual support. Directive leadership to supportive leadership: Supportive leaders challenge the status quo and encourage organizational innovation, embodying mission and values while removing barriers to help employees thrive. They are crucial to fostering a positive organizational culture. Plan and predict to experiment and adapt: Progressive organizations prioritize experimentation over precise predictions, integrating continuous change into daily work. Rules and control to freedom and trust: Progressive organizations trust employees as responsible adults, granting them high autonomy to decide how, where, when, and with whom to work. This approach minimizes the need for extensive control and enhances performance. Centralized authority to distributed decision making: Progressive organizations trust frontline employees to make most decisions due to their deep understanding of customers and operations, enhancing agility. This freedom comes with responsibility and accountability. Secrecy to radical transparency: Progressive organizations thrive by being "open by default," providing frontline employees with the latest information for better, faster decision-making. Company-wide data access fosters trust, improves collaboration, and accelerates problem-solving. Job descriptions to talents and mastery: People are more motivated and engaged when they work on tasks that align with their talents and strengths. Progressive organizations capitalize on this by utilizing the diverse talents of their entire workforce. Conditions for team effectiveness: Size, diversity, roles norms, status Compelling direction: Availability of a common goal that is clear, challenging & consequential. Strong structure: right no. & mix of people, responsibility for tasks from start to end, clear norms for acceptable conduct. Cohesiveness, info sharing practices Supporting context: Availability of resources, info, training & appropriate rewards for success. Shared mindset: Existence of the team’s strong common identity; practice of info sharing & understanding peers’ challenges. Belbin’s team roles: Balance of Roles = Effectiveness CONFORMITY: tendency to change our perceptions, opinions, or Thinking: Monitor evaluator, specialist, plant behaviors in ways that are consistent with perceived group norms. Action: Implementer, shaper, completer finisher “Acceptable standards of behavior within a group that are shared People: Team worker, coordinator, resource investigator by the group’s members.” High vs. Low status individuals Effects of status inequity: “A socially defined position “Social loafing, the Tend to be more assertive or rank given to groups or group members by others.” tendency for individuals More freedom to deviate from norms Inhibits diversity of ideas and creativity to expend less effort Resist better conformity pressures Creates disequilibrium -> resentment when working Lower performance, health, higher turnover collectively than alone” Cohesiveness: “Degree to which members are attracted to each other Diversity: “Degree to which members of the group are similar to, or different from, and are motivated to stay in the group.” one another” Information bias: The implication: some groups miss optimal solutions: Information held by more members before team discussion has Use of only shared information supports a less optimal more influence on team judgments than information held by decision alternative whereas tapping into unshared fewer members, independent of the validity of the information. information supports the best option. Groups tend to spend too little time discussing unshared Failure to discuss unshared info thus harms group decision (unique, uncommon) information. quality. Why does information bias occur? Psychological safety: you feel safe expressing your opinion freely in a group 1. Probability 2. Mutual Enhancement: Discussing shared information feels good! Members are judged as more task competent and credible after discussing shared instead of unshared information. Shared information is judged as more important, accurate, and decision-relevant than unshared info. 3. Bias for preference-consistent Information: Members prefer to discuss information that is consistent with their preferences (an example of the confirmation bias)  Innovation is great, but not morally neutral. Always ask: Who are we innovating for, and how can we make sure we don’t harm anyone in the process? We always view the world from our own individual perspective. Our brains try to match our perception with patterns they already know, which twists our perception of reality. Spheres of critical thinking: Professional, Private & civic, Organizational “You can look at the world, or you can back up and look at the framework of concepts and assumptions and practices through which you look at the world. Every such framework edits the world in some way; every such framework has its biases.” Our brain filters out tons of sensory input depending your body’s state, mood, health, interests, biases, fears, etc. The stuff it actually does take note of gets checked against things your brain expects to see. Your brain draws on memory as it projects, transfers & imagines your past experiences & feelings. It mixes that with the sensory input & distorts it. Meanwhile, you think you experienced “objective reality”. Moral intuition & moral reasoning Moral disengagement mechanisms Autopilot: fast, automatic, default, low effort, Disengagement from behavior subconscious (intuition) o moral justification; advantageous comparison; language sanitization Pilot: slow, conscious, high effort, reasoning Disengagement from responsibilities (rationality) o transfer of responsibility; diffusion of responsibility disengagement from consequences Instrumental knowledge: How to do it? o denial of consequences; minimization & questioning consequences Reflexive knowledge: What to do, why? disengagement from victims Common Q of ethical theories: How do we find out o dehumanization of victims; blaming the victims what’s morally right? Psychological defense mechanisms: ignore, distract, deny, downplay, blame, attack. People can’t handle ambiguity and will create certainty, even if that means believing in lies, propaganda & conspiracy theories. Bad things can happen without anyone having bad intentions. We are all potentially dangerous. Deontological ethics: ethics of (moral) duties duty = behavioral obligation that I impose on myself based on rational moral reasoning categorical imperative: “Act in such a way that you always treat humanity, whether in your own person or in the person of any other, never simply as a means, but always at the same time as an end.” In other words: Don’t make people your tools, or instruments for your own gain. Because people are people, and not things, they have dignity and deserve respect. Kant says you should never lie because if people just lied whenever they want, we would not be able to believe anyone anymore. bottom line: Good people don’t want to blindly “maximize” their arbitrary freedom. Instead, they freely choose to only want those things that are reasonable and generalizable. So, ask: Do I instrumentalize anyone? Can I universalize the maxim behind my action? Kant’s influence is obvious in many legal documents, constitutions, and declarations. Utilitarianism Virtue ethics utilitarian reasoning judges actions by their consequences: Aims at cultivation of character and good habits of a person by o pleasure vs. pain; collective utility; “greatest happiness way of finding the middle ground between extreme choices. principle” Example: courage is the middle ground between being a coward act utilitarianism: judges by analyzing whether they lead to and a hothead. Practice: managers, employees, companies, etc. “greatest happiness for the greatest number of people” become virtuous by acting virtuously o rule utilitarianism: applies the same logic to social rules So, ask: What are our company’s good and bad habits? Are we instead of individ navigating the middle ground between extreme options? o So, ask: What are the consequences of our company’s actions, and for whom? Discourse ethics Emphasizes proper procedure instead of material ethical Rights theory claims Right: a legally binding entitlement that is granted (and needs to Basic idea: generating moral norms through fair be respected) unconditionally procedures. Everyone affected by moral decision needs Historically, rights were conceptualized as “natural rights” to be included in decision-making process and their (Locke) arguments heard. Socially constructed and constant work-in-progress Fair and open discourse guarantees legitimate outcomes In business, there is a wide range of national and international So, ask: Are we talking about our stakeholders or with “business and human rights” standards and initiatives. our stakeholders? How to include stakeholders in our So, ask: Does our company’s strategy violate stakeholders’ rights? decision-making process?