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Intercultural Management
Effective leadership for multicultural teams.
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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
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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.
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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.
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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.
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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.