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Intercultural Management Effective leadership for multicultural teams.

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Page 1: Intercultural - University of Notre Dame College of … · effective in a multicultural workplace: Intercultural ... The affective aspect of intercultural competence – learning

Intercultural Management

Effective leadership for multicultural teams.

Page 2: Intercultural - University of Notre Dame College of … · effective in a multicultural workplace: Intercultural ... The affective aspect of intercultural competence – learning

Made available by Bisk Education, Inc. (c) 2015 Bisk Education. All rights reserved. Company, products, and service names may be trademarks of their respective owners.

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Table of Contents

1. Introduction ......................................................................................................... 3

2. How Culture Can Affect the Workplace................................................................... 4

3. Guidelines for Effective Intercultural Communication .............................................. 6

4. Cultural Communication ........................................................................................ 6

5. Cultural Differences in Communication ........................................................... 7

6. Geert Hofstede and the Dimensions of Culture ....................................................... 8

7. Understanding Cultural Dimension and Communication ......................................... 10

8. Insights into Six Different Cultures ...................................................................... 11

9. Intercultural Harmony in the Workplace is Possible .............................................. 12

10. Resources .......................................................................................................... 12

Page 3: Intercultural - University of Notre Dame College of … · effective in a multicultural workplace: Intercultural ... The affective aspect of intercultural competence – learning

Made available by Bisk Education, Inc. (c) 2015 Bisk Education. All rights reserved. Company, products, and service names may be trademarks of their respective owners.

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As businesses go global and recruit from a multicultural labor pool, managers may find

themselves overseeing team members with perceptions of leadership styles that differ from the

Western concept. For example, workers from Brazil tend to endow leaders with a parental role,

while workers from India may expect a higher level of supervision.

Diverse teams present managers with both advantages and challenges: Such teams have a wide

range of perspectives, which often results in a higher level of creativity and more effective

problem solving. However, cultural differences can lead to ineffective communication,

misunderstandings and other obstacles that can block progress and hinder teamwork.

An understanding of cultural differences can be paramount for establishing clear communication

with a diverse team of workers. Cultural differences can influence how team members deal with

authority, how much supervision is expected, or even the way genders are viewed. All can affect

communication.

Effective leaders embrace intercultural awareness, understanding and competence. They develop the skills to recognize and circumvent the sources of cultural conflict and

miscommunication, while leveraging the strengths of their multicultural teams.

In fact, potential conflicts and miscommunication can present opportunities for leaders and team

members to grow and enhance their understanding and awareness.

Summarizing information from David C. Thomas and Kerr Inkson’s “Cultural Intelligence: People

Skills for Global Business,” Dr. Elizabeth Tuleja, associate professor of management in the

University of Notre Dame’s Mendoza College of Business, lists three key skills leaders need to be

effective in a multicultural workplace:

Intercultural knowledge: The cognitive aspect of intercultural competence –

developing both awareness of and knowledge about cultural differences that ultimately

affect how people think and behave.

Intercultural mindfulness: The affective aspect of intercultural competence –

learning how to reflect deeply through mindful observation of your thoughts and actions

and the behaviors of others.

Intercultural skills: The behavioral aspect of intercultural competence – developing a

repertoire of reactions to dealing with differences and ambiguity.

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Most importantly, while theories and observations about cultures are great learning tools, it’s

easy to overgeneralize or oversimplify the culture of any given society. Not all members of a

society will adhere to the behavioral patterns suggested by the cultural dimensions discussed

here.

While we can make general distinctions based upon the majority of a culture’s members, this is

simply a good starting point for understanding how to interact effectively with people with

different orientations.

“By being aware and sensitive to these important aspects of learning about culture’s influence on

people, you will be on your way to developing intercultural competence as you lead your teams,”

said Tuleja, who teaches intercultural management at Notre Dame.

How Culture Can Affect the Workplace Cultural differences can impact teams in a number of ways:

Attitudes toward authority figures

Gaps in language and meaning

Approaches to problem solving

Time sensitivity and sense of urgency

Direct, indirect communication, or more subtle ways of handling problems such as subtle

inference rather than confrontation

Biases based on gender, ethnicity, socio-economic background or religion.

Leaders with a good sense of intercultural awareness know how to interact and communicate

with everyone on their teams, based on their background.

Great leaders are able to leverage their knowledge of cultural differences in order to

communicate effectively and prevent these differences from causing problems.

Even major international corporations can stumble when they don’t consider or are not aware of

cultural differences, said Tuleja, who gave the following examples of how cultural differences

can cause unexpected problems.

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1. Differences in language and meaning: A logo designed to look like a flame put

some Middle East heat on Nike due to the symbol’s similarity Arabic script for “Allah.”

Though Nike slightly altered the logo after being warned by a Middle East distributor,

the change was not enough and consumers still read the stylized flame logo as “Allah.”

In Islamic tradition, feet are considered the lowest and dirtiest part of the body and

showing the sole of one’s foot in traditional Islamic culture is an insult. Nike’s placement

of the logo on the heel and sole made it appear the wearer was stepping on “Allah,”

increasing the consternation of consumers. Public outcry forced Nike to withdraw the

shoe and issue an apology.

2. Sense of urgency: As Starbucks expands into Europe, the company is encountering

differences in how Americans and Europeans view time. Americans prefer coffee to go

in paper cups and snacks that are easy to eat. They drink their coffee while focusing on

other aspects of their busy lives. Many in Europe, and the French in particular, take

their coffee more leisurely, sitting and talking with friends or reading a newspaper or

book. To address these differences, Starbucks will have to invest heavily in physical

renovations of European stores for additional seating to accommodate how its new

customers drink coffee.

3. Biases based on ethnicity: Urban Outfitters received overwhelming backlash for

its “Navajo” fashion line. Using the Navajo name was seen as a way of appropriating

the Navajo people’s identity. Taking the Navajo images and symbols out of context

trivialized their original meaning. In these products, Urban Outfitters focused on profit

by keeping up with the current fashion industry trends rather than cultural sensitivity.

4. Biases based on gender: Nike ran into another cultural issue, this time based on

gender, when it released its new Pro Tattoo Tech Tights, with a design inspired by the

tattoos of the Fijian, Samoan and New Zealand people. The Pe’a is a traditional tattoo

that covers the body from the waist to the knees for males only. The process for the

Pe’a is extremely painful and is done using handmade instruments of bone and wood

and other natural materials. It is considered a rite of passage and symbol of courage.

Putting the Pe’a tattoo on sheer leggings for women gave the impression women were

wearing the Pe’a tattoo, ignoring the cultural tradition it symbolizes.

Page 6: Intercultural - University of Notre Dame College of … · effective in a multicultural workplace: Intercultural ... The affective aspect of intercultural competence – learning

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Guidelines for Effective Intercultural Communication Communicating with people from different backgrounds is not always easy. But leaders who

develop their cultural competence when communicating with each situation will be more

successful dealing with culturally diverse teams.

Here are some guidelines to keep in mind:

Practice active listening.

Treat everyone with respect.

Realize there is more than one way to communicate.

Use clear and simple language. Avoid slang or jargon.

Do not jump to conclusions or make assumptions.

Allow others to speak without interruption.

Check to make sure you are understood.

Cultural Communication Two broad divisions of cultural communication styles can be described as direct or indirect.

Direct cultures include American, Italian and Scandinavian, in which people tend to speak their

minds without concern about emotions. Cultures with a more indirect approach to

communication, such as the Chinese and British, are more concerned with being polite and

maintaining harmony in relationships.

Additional differences in cultural communication include:

Relying on interpretation: Indirect cultures expect listeners to interpret the meaning behind the words; direct cultures do not.

What is said vs. how it is said: Direct cultures focus on the words. Indirect cultures emphasize both the message and how it is conveyed.

Confrontation: Direct cultures confront issues head-on, while indirect cultures find ways to circumvent them.

Non-verbal communication: Indirect cultures use non-verbal cues to communicate meaning; direct cultures do not.

Such differences can make understanding difficult for people from opposite ends of the

continuum. Managers of culturally diverse teams must be aware of each individual’s

communication style to facilitate teamwork and a positive working environment for all.

Page 7: Intercultural - University of Notre Dame College of … · effective in a multicultural workplace: Intercultural ... The affective aspect of intercultural competence – learning

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It’s important to remember that these descriptions of cultural leadership and communication

are generalizations. They are not intended to describe all people in a given culture or from a

particular region. Cultures share patterns of thinking, but also are comprised of individuals with

considerable differences who may not fit into the broad descriptions.

Cultural Differences in Communication Effective intercultural communication depends on awareness of cultural differences that can

influence interactions such as how people view risk or react to praise. Understanding variations

in cultures is key to communicating with today’s global workforce.

Generally speaking, cultures can be arranged on continua based upon a variety of cultural

dimensions that articulate the differences. For example, a culture could be arranged between

egalitarian and hierarchical. People who grow up in an egalitarian society, such as the United

States, will feel more comfortable questioning authority than someone from a hierarchical

country, such as Saudi Arabia, where those in power are rarely challenged. Here are some

additional differences between egalitarian and hierarchical cultures, according to Kwintessential,

a translation and cultural awareness training firm based in the United Kingdom:

Egalitarian cultures:

View genders more equally

Expect flexibility in their roles

Prefer to be self-directed, rather than closely managed

Have expectations and use their own knowledge to interpret rules

Hierarchical cultures:

See the genders as different by nature

Prefer clearly defined roles and boundaries

Thrive on guidance and instruction from their leaders

Enforce the rules

The role of a leader in hierarchical and egalitarian cultures differs to varying degrees, according

to where it falls on the continuum. At the extreme, an egalitarian leader heads a laid-back

team where everyone interacts equally, offers ideas and feedback, and manages their own

workload. At the opposite end, a highly hierarchical leader knows that workers expect to be

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controlled and directed. Beyond egalitarian and hierarchical, researchers have noted other

differences in cultures.

Geert Hofstede and the Dimensions of Culture Geert Hofstede is a Dutch social psychologist and widely recognized expert in the field of

international communication. His theory on cultural dimensions has been used to study how

culture affects the values and behaviors of people. In his book “Culture’s Consequences:

International Differences in Work-Related Values,” first published in 1980, Hofstede described

four areas that cultures handle differently: how they cope with uncertainty; how they deal with

inequality; the implications of being male or female; and the individual’s relationship with his or

her primary group.

Hofstede analyzed data taken from employee answers to identical surveys from 40 countries and

another nearly identical survey from executives in 15 countries, according to Hofstede’s website.

The data showed differences based on values or preferences that were mostly unconscious.

These became known as the Hofstede Dimensions of National Culture.

1. Power Distance: This refers to how less-powerful members of a group understand

that power is distributed unequally. It is sometimes called the Power Distance Index, or

PDI, and considers how power is distributed in the society. Cultures with a high PDI are

more authoritarian. Workers expect to be told exactly what to do. In cultures with a low

PDI, workers are given more responsibility and latitude.

2. Uncertainty Avoidance: Uncertainty avoidance indicates how members of a culture

feel in situations that are unknown, new or different. Cultures that avoid uncertainty

minimize it through strict laws, enforced regulations and a belief in absolute truth.

Cultures with a low avoidance of uncertainty accept risk, are more tolerant of different

opinions, and embrace fewer rules.

3. Individualism: This is the degree to which members are integrated into groups. In

individualistic cultures, ties between people are loose, and everyone takes care of his- or

herself. The opposite is a collectivist society, where extended families and loyal groups

protect each other.

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4. Masculinity: Masculinity and femininity refer to the way a society distributes emotional

roles between the genders. On the masculine-feminine spectrum, “assertive and

competitive” is considered masculine, while “modest and caring” is considered feminine.

Women in masculine cultures can be modest and caring, but generally are more assertive

and competitive than those in feminine cultures.

In 1991, building on research by social psychologist Dr. Michael Bond and others, Hofstede

added a fifth dimension – Short Term/Long Term Orientation – that indicates how societies value

tradition and the past.

5. Short-Term/Long Term Orientation: Those with a long term orientation tend to

emphasize the future. They value thrift, persistence and the ability to adapt. They also

hold education in high regard, according to the Hofstede Centre. Those with a short term

orientation promote values such as equality, meeting social obligations and creativity.

This dimension is now also being called “Pragmatism.”

Most recently, Hofstede has teamed up with his protégé, Michael Minkov, and added a sixth

dimension, Indulgence and Restraint.

6. Indulgence/Restraint: This is the degree to which people try to control their desires

and impulses, based upon how they were raised, to either expect immediate gratification

and results (indulgence) or to wait and be patient for end results (restraint).

Notre Dame Advanced Intercultural Management students receive 12 months of access to the

TMC Cultural Navigator Assessment tool - Cultural Orientations Indicator ® (COI) that measures

a person’s work style preferences against three dimensions of culture. The COI can increase a

person’s self-awareness and compare individual cultural preferences with specific countries.

Page 10: Intercultural - University of Notre Dame College of … · effective in a multicultural workplace: Intercultural ... The affective aspect of intercultural competence – learning

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Understanding Cultural Dimension and Communication When communicating with multicultural teams, it’s especially important for business leaders to

understand how different societies view authority and convey meaning in their communication,

according to the cultural dimensions. Here are some examples from Kwintessential based on

Hofstede’s original four dimensions:

Power Distance: India, China and Russia have high Power Distance Index (PDI) scores,

and subordinates expect direction from above. Managers can expect to provide close

guidance, emphasize deadlines and take on a more authoritarian role. Germany, Canada

and other low PDI countries experience less deference and formality, and have more

participation in decision-making.

Uncertainty Avoidance: Countries with a long history usually score higher on the

uncertainty avoidance scale. When dealing with people from risk-averse cultures, you can

expect that new ideas will not be readily accepted, and that they may tend to be less

willing to make decisions without all the facts.

Individualism: In countries such as the United States, Australia and Canada, the

individual is all-important. Employees expect to work on projects individually, and strive

to stand out from the rest. In collectivist cultures, such as Korea and Japan, the team is

more important than the individual. To avoid embarrassing individuals, rewards and

praise should be given to the team rather than an individual.

Masculinity: Keep in mind that this dimension does not describe gender empowerment.

Rather, it describes an environment of nurturing behaviors and ideals compared with an

assertive and acquisitive environment. Cultures high on the masculinity scale may focus

on wealth and work. Those low on the masculinity scale favor negotiation to settle

differences. They also highly value time away from work. The U.S., Germany and Italy

are masculine cultures in which people discuss business at any time, avoid the personal

in business situations, and in which a direct and concise communication style is most

effective. In Spain, Norway, Thailand and other feminine cultures, people value family,

enjoy small talk, and expect personal questions. In these cultures, trust is very important

in business relationships.

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Insights into Six Different Cultures Hofstede’s research provides some general insight into cultures that can shape perceptions and

viewpoints. These are some examples of how people in specific countries may communicate,

according to Kwintessential. Remember, these are broad-stroke summaries, and nuances of

behavior and attitude exist within every culture and individual.

Brazil: Brazilians tend to place a great deal of importance on individual roles.

Supervisors often take on a parental role to guide employees. Relationships are valued

and reputations are protected. Managers must bring up ideas carefully, and praise should

be distributed to the entire group.

China: In Chinese culture, communicating tends to be formal and indirect, with

subtleties that are often difficult for outsiders to understand. Workers defer to authority

and may be hesitant to speak out. However, younger Chinese tend to embrace the team

model.

Ireland: The Irish balance hard work with enjoying free time. They welcome well-

deserved individual praise, but prefer it in private. Similarly, it’s best to avoid public

calling out or embarrassment of individuals. Irish workers tend to avoid saying “no”

outright, so it’s best to clarify their meaning. They also avoid confrontational behavior.

South Africa: In South Africa’s egalitarian work culture, everyone has value, but it’s

good to be sensitive about calling attention to individuals and the potential for

embarrassment. South Africans do not appreciate being interrupted while speaking, but

they do strive for consensus.

Saudi Arabia: In this conservative culture, business is personal. Only high-ranking

people make decisions, change is resisted and honor is very important. Facilitate

teamwork by establishing a non-threatening environment.

India: India is a very hierarchical society, where individuals fulfill a distinct role and

managers are often involved in workers’ personal lives. Workers expect supervision and

monitoring. Most Indians are non-confrontational but some are very direct.

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Intercultural Harmony in the Workplace is Possible Diverse workplaces have a distinct advantage in the global business environment. Learning the

skills to effectively manage and communicate with people from different cultures is an important

aspect of modern leadership, and can significantly improve not only your working relationships,

but your overall career prospects.

References 1. “Leadership across Cultures.” kwintessential.co.uk. Kwintessential. Last Ref. Oct. 21, 2014.

2. “Dimensions of National Cultures.” geerthofstede.nl. Geert Hofstede. Last Ref. Oct. 21, 2014.

3. “Dimensions.” geert-hofstede.com. The Hofstede Centre. Last Ref. Oct. 21, 2014.

4. “Power Distance Index.” kwintessential.co.uk. Kwintessential. Last Ref. Oct. 21, 2014.

5. “Individualism.” kwintessential.co.uk. Kwintessential. Last Ref. Oct.21, 2014.

6. “Masculinity.” kwintessential.co.uk. Kwintessential. Last Ref. Oct. 21, 2014.

7. “Uncertainty Avoidance.” kwintessential.co.uk. Kwintessential. Last Ref. Oct. 21, 2014.

8. “Intercultural Management Guide.” kwintessential.co.uk. Kwintessential. Last Ref. Oct. 21, 2014.

9. “Cook Ross, Inc’s Cultural Communication Guide 3rd Edition.” culturetraining.ca/pdf/products-

CCGsample.pdf. Center for Organizational Cultural Competence. Last Ref. Oct. 21, 2014.

10. Thomas, David C. and Kerr Inkson. (2008) “Cultural Intelligence: People Skills for Global

Business.” Berrett-Koehler.