CHAPTER 14
International and Culturally Diverse Aspects of
Leadership
The purpose of this chapter is to help the reader understand the leadership challenges stemming from
working in international and culturally diverse environments. In addition, the reader is given many
specific suggestions for leading effectively in such an environment.
CHAPTER OUTLINE AND LECTURE NOTES
Sensitivity to and an appreciation of cultural diversity improves working relationships. The modern
leader must be multicultural because corporate success, profit, and growth depend increasingly on the
management of a diverse workforce. Because the focus ion diversity includes giving many types of
people an opportunity to participate fully in the organization, the word inclusion is often used to replace
diversity. The leader must respond to the needs of diverse groups of people. In addition to the
workforce becoming more diverse, business has become increasingly global.
I. THE ADVANTAGES OF MANAGING FOR DIVERSITY
The ethical and social responsibility goals of leaders and their organizations support the
importance of providing adequately for members of the diverse workforce. Ethical leaders feel
compelled to use merit as a basis for making human resource decisions. A firm that embraces
diversity is also behaving in a socially responsible manner. Managing for diversity brings a
competitive advantage to the firm in the following ways:
1. Managing diversity well offers a marketing advantage. For example, a multicultural
3. Heterogeneity in the workforce may offer the company a creativity advantage, plus
improved problem solving and decision making.
5. Enhancement of team performance. Cultural diversity can enhance team performance,
often because diverse backgrounds are associated with diverse information, knowledge
and perspectives that can be used to solve problems.
Diversity can be a double-edge sword: it increases both the opportunity for creativity and the
Chapter 14: International and Culturally Diverse
Aspects of Leadership
143
II. CULTURAL FACTORS INFLUENCING LEADERSHIP PRACTICE
A multicultural leader is a leader with the skills and attitudes to relate effectively to and
motivate people across race, gender, age, social attitudes, and lifestyles. To influence, motivate,
and inspire culturally diverse people, the leader must be aware of overt and subtle cultural
differences. Such culturally based differences are generalizations and stereotypes that are starting
points in attempting to lead a person from a particular culture.
A. Key Dimensions of Differences in Cultural Values
One way of understanding how national cultures differ is to examine their standing on
selected values, ten of which are described here.
1. Performance orientation is the degree to which a society encourages (or should
encourage) and rewards group members for performance improvement and excellence.
3. Future orientation is the extent to which individuals engage (and should engage) in
4. Time orientation is the importance nations and individuals attach to time. People with
an urgent time orientation, perceive time as a scarce resource and tend to be impatient.
6. In-group collectivism is the degree to which individuals express, and should express,
pride, loyalty, and cohesiveness in their organizations and families.
8. Power distance is the degree to which members of a society expect, and should
expect, power to be distributed unequally.
9. Uncertainty avoidance is the extent to which members of a society rely, and should
10. Work orientation is the number of hours per week and weeks per year people expect
to invest in work versus leisure or other nonwork activities.
To use the above information, a leader should recognize that a person’s national values
144 Chapter 14: International and Culturally Diverse
Aspects of Leadership
orientation would not immediately comply with a superior’s suggestions. The leader might
therefore have to sell the person on the request.
B. Cultural Values and Leadership Style
Relationships between people in a society are affected by the values programmed in the
minds of these people. Because management deals heavily with interpersonal relationships,
management and leadership are affected by cultural values.
.
2. German Managers. In Germany, middle managers were studied as part of the GLOBE
3. Malaysian Managers. Based also on the GLOBE project, the preferred leadership style
2. Northern U. S. versus Southern U. S. Managers. An example of a cross-regional
stereotype is that managers in the southern United States are lower key and more
interested in relationship building than their brusque counterparts in the north. The
stereotype of southern business leaders being more laidback, and slow moving has
been challenged.
III. CULTURAL SENSITIVITY AND CULTURAL INTELLIGENCE
The traits and behaviors described in Chapters 2, 3, and 4 should equip a person to lead diverse
groups. In addition, cultural sensitivity and cultural intelligence, and certain specific global
leadership skills are essential for inspiring people from cultures other than one’s own.
A. Cultural Sensitivity
A cross-cultural leader must also be patient, adaptable, flexible, and willing to listen and
learn. These characteristics are part of cultural sensitivity, an awareness of and a
willingness to investigate the reasons why people of another culture act as they do. Six
aspects of cultural sensitivity are described next.
1. Recognition of nuances in customs. A person with cultural sensitivity will recognize
2. Being a multicultural worker. Cultural sensitivity is also important because it helps a
person become a multicultural worker—one who is convinced that all cultures are equally
good and who enjoys learning about other cultures. The concept of a multicultural worker
3. Recognizing potential problems of cultural misunderstanding. Problems of cultural
misunderstanding that leaders should be aware of cluster in five areas: (1) language
4. Generational differences. Another manifestation of cultural differences is generational
5. Transgender employees. The reality of a greater number of transgender employees in
6. Flexibility in dealing with others. Cultural sensitivity is enhanced by diversity training
as well as by simply listening carefully and observing. A key principle is to be flexible when
dealing with people from other cultures.
B. The English Only Policy and Cultural Sensitivity
To facilitate communication in international enterprise, a growing number of companies have
declared English as the official language for conducting business. A key argument for the
English-only policy is that multilingualism without restriction interferes with accomplishing
business goals. Despite the general acceptance of English as the language of business,
C. Cultural Intelligence
A refinement and expansion of cultural sensitivity is cultural intelligence (CQ): an
outsider’s ability to interpret someone’s unfamiliar and ambiguous gestures the way that
person’s compatriots would. Cultural intelligence has three facets or components: (a)
Cognitive CQ (Head), (b) Physical CQ (body), and (c) Emotional/motivational CQ (Heart).
146 Chapter 14: International and Culturally Diverse
Aspects of Leadership
IV. GLOBAL LEADERSHIP SKILLS
Global leadership skills refer to the ability to exercise effective leadership in a variety of
countries. The essence of global leadership is the ability to influence people who are dissimilar to
the leader and stem from different cultural backgrounds.
A. General Model of Global Leadership Skills.
Global leadership skills improve a company’s reputation and contribute to a sustainable
competitive advantage. Excellent global leaders have a leadership style that generates
superior corporate performance in terms of four criteria: (1) profitability and productivity, (2)
continuity and efficiency, (3) commitment and morale, and (4) adaptability and innovation.
Attaining all four criteria of organizational performance is called behavioral complexity.
B. Success Factors in International Management Positions
Effective global leaders also exhibit leadership skills necessary for dealing with day–by-day
interactions. As revealed by a study, two success factors are sensitivity to cultural differences
and being culturally adventurous. A study demonstrated that deficits in emotional
intelligence contributed to executive failure on assignments in Latin America, Europe, and
.
C. Motivating and Inspiring Workers in Other Cultures
Expectancy theory provides the best general clue to motivating people in other cultures—
figure out which rewards have high valence for them. Also, workers will be motivated and
inspired to the extent that need satisfaction will be forthcoming. One stereotype is that
German professionals prefer motivating through exciting work, whereas Americans prefer
external rewards.
Chapter 14: International and Culturally Diverse
Aspects of Leadership
147
D. Avoiding Product Names that Could be Embarrassing in Another Culture
V. LEADERSHIP INITIATIVES FOR ACHIEVING CULTURAL DIVERSITY
For organizations to value diversity, top management must also be committed to embedding
diversity in company strategy. The commitment is clearest when it is embedded in organizational
strategy, as well as in the life and culture of the organization. Diversity initiatives should be deep
rather than superficial.
A. Hold Managers Accountable for Achieving Diversity
If managers are held accountable for behavior and business changes in the diversity arena,
an organizational culture supportive of diversity will develop. A group of CEOs whose
organizations are well known for their diversity practices agreed that metrics are essential
because “What gets measured gets done.” Bank of America, for example, includes questions
B. Establish Minority Recruitment, Retention, and Mentoring Programs
An essential initiative for building a diverse work force is to recruit and retain members of
the targeted minority group. Because recruiting talented members of minority groups and
women is competitive, careful human resources planning is required. Efforts at recruiting a
culturally diverse work force must be supported by a leadership and management approach
C. Conduct Diversity Training
Diversity training has become a widely used, though controversial, method for enhancing
diversity within organizations. The purpose of diversity training is to bring about
workplace harmony by teaching people how to get along better with diverse work associates.
training to have much of an impact on the organization. A review of 178 articles found that
when diversity training was integrated into a system of other diversity-related activities, the
outcomes were more likely to be positive, such as participants believing that they learned to
interact more effectively with other cultural groups.
D. Conduct Cross-Cultural Training
The method frequently chosen for overseas assignments is cross-cultural training, a set of
learning experiences designed to help employees understand the customs, traditions, and
beliefs of another culture. The art of facial cheek kissing is an amusing, yet important aspect
of cross-cultural training.
E. Encourage the Development of Employee Networks
An employee network (or affinity) group is composed of employees throughout the
company who affiliate on the basis of a group characteristic such as race, ethnicity, sex,
sexual orientation, or physical ability status. Group members typically have similar interests
and look to the group as a way of sharing information about succeeding in the organization.
Macy’s is an example of a business firm that encourages diversity through affinity groups,
also known as employee resource groups. .
F. Avoid Group Characteristics When Hiring for Person-Organization Fit
Person-organization fit centers around the extent to which a person’s major work-related
values and personality traits fit major elements of the organization culture. Selecting for
person-organization fit can lead to a cohesive and strong organizational culture. The danger,
G. Modify Products and Services for Targeted Demographic Groups
Chapter 14: International and Culturally Diverse
Aspects of Leadership
H. Attain Diversity among Organizational Leaders
To achieve a multicultural organization, firms must also practice leadership diversity, the
presence of a culturally heterogeneous group of leaders. An organization with leadership
VI. GUIDELINES FOR ACTION AND SKILL DEVELOPMENT
A major problem to manage in developing a diverse workforce is for company leadership to
reduce turnover among the employees they have worked so hard to recruit. A report suggested
that companies include a clear path for employee advancement, and provide suggestions for
COMMENTS ON EXPERIENTIAL EXERCISES
Leadership Skill-Building Exercise 14-1: Pinpointing a Diversity
Advantage
An important feature of this exercise is that it provides an opportunity to attempt to obtain original data
on a highly relevant leadership topic—identifying a tangible advantage of being a diverse organization.
The assignment could be challenging because few people are exposed directly to the advantages of
cultural and demographic diversity within their present or past employer.
Leadership Self-Assessment Quiz 14-1: Charting Your Cultural Value
Profile
150 Chapter 14: International and Culturally Diverse
Aspects of Leadership
Leadership Self-Assessment Quiz 14-2: My Tolerance for Cultural
Differences
Given that students are inherently interested in cross-cultural relations, they should enjoy
confronting themselves with the various scenarios mentioned in the statements. A message this
quiz may carry for many people is that they have a long way to go in terms of being tolerant of
cultural differences.
Leadership Skill-Building Exercise 14-2: The Diversity Circle
The diversity circle is a powerful exercise in demonstrating how some people feel about being diverse.
Volunteerism is very important in this exercise. No person should feel compelled to participate. Self-
Leadership Skill-Building Exercise 14-3: My Leadership Portfolio
This portfolio entry is yet another opportunity for the student to reach out into everyday life to
Leadership Skill-Building Exercise 14-4: Positive Cross-Cultural
Experiences in the Workplace
Brainstorming to identify positive cross-cultural experiences is somewhat related to the leadership
portfolio exercise just mentioned. Identifying the positive cross-cultural experiences might also be
considered to be a form of consciousness-raising. Drawing conclusions from this exercise will require
reflection. One possible conclusion might be, “Most workers enjoy the opportunity to work with people
different than themselves. They have no problem with cultural differences.”
COMMENTS ON DISCUSSION QUESTIONS AND ACTIVITIES
1. A wheelchair user is conducting a job search to land a middle-management position. Given that so
many companies are attempting to build a more culturally diverse group of managers, should this
job hunter include a photo of himself in a wheelchair on his job résumé? Explain your reasoning.
Chapter 14: International and Culturally Diverse
Aspects of Leadership
2. With so much business being conducted over the Internet, including email, why is it important to
understand cross-cultural differences in values?
3. If a business leader is regarded as charismatic by many people in one culture, to what extent do
you think the leader would be perceived as charismatic in many other cultures?
Many of the traits and behaviors that contribute to the perception of a leader being charismatic cut
across many cultures. In almost any culture, for example, having a warm smile and a friendly
4. What actions might a leader take to demonstrate that his or her interest in diversity goes beyond
rhetoric?
5. Assume that a manager becomes the leader of a division in which the vast majority of the workers
are under 25, such as a restaurant chain. Would you recommend that the leader get some body
piercing to help establish rapport with the division workforce? Explain your reasoning.
6. Many international companies have found that it is particularly helpful to hire local citizens for
key management positions in a company location in another country. What advantages might a
native offer the company?
152 Chapter 14: International and Culturally Diverse
Aspects of Leadership
7. Many large business firms make it mandatory for CEOs to retire from their position when they
reach a designated age such as 62 or 65. In what way might this retirement practice interfere with
the goal of having a workforce with the widest possible diversity?
Considering that each business firm has only one CEO, setting a retirement age for the top
executive would have a miniscule impact on workforce diversity. This is particularly true if the
8. Suppose you are a team leader and one of your team members has a strong work ethic, based on
his or her cultural values. Is it fair to assign this member much more work just because he or she
is willing to work longer and harder than other team members?
It might be helpful to use an ethical screen to answer this question. A significant ethical issue is
10. What can you do this week to help prepare yourself to become a multicultural leader?
Action steps this week to prepare for multicultural leadership would include many of the
suggestions in this chapter. Working or socializing with people from a different culture or
PLAUSIBLE RESPONSES TO CASE QUESTIONS
Leadership Case Problem A: What to Do About Louie
The case about the auto-service manager illustrates a common scenario—a worker who is
otherwise performing satisfactorily in a public contact position is culturally insensitive. For
example, many male and female managers, will sometimes innocently use the term “girls” to refer
to female workers thereby offending somebody.
1. Does Louie have a problem, or are the people who made the negative comments about Louie
just being too sensitive?
2. What improvements might Louie need to make to become a truly multicultural manager?
3. What activity or program do you recommend to help make Louie more culturally sensitive?
At some point, Louie might attend diversity training, but right now the general suggestions
might just bounce off him because he is insensitive. One–on-one sessions with a business coach
Associated Role Play
The content of this role play is important because it deals with becoming more culturally sensitive. The
process of coaching is also important. As a good coach, Emma will not place herself in the role of
punishing Louie for his mistakes, but will guide and encourage him toward improvement.
Leadership Case Problem B: Curses, An Affinity Group for Workers
60 and Over?
1. What do you recommend that Penelope do with the request to form a company-sponsored
affinity group?
Although Penelope appears to be skeptical of the legitimacy of an employee affinity group for
seniors, she must take the proposal seriously to avoid appearing insensitive to the
demands of the proposed group. Penelope should definitely consult with other senior
2. What concerns, if any, do you have about Penelope’s commitment to demographic and
cultural diversity at Power Energy?
Penelope is thinking critically in terms of exercising caution about the company sponsoring
the Splendid Seniors. Her observation is valid that an affinity group is usually reserved for
154 Chapter 14: International and Culturally Diverse
Aspects of Leadership
employees, groups such as younger employees, and employees of the same religion might
want to form an affinity group.
Associated Role Play
This role play might be regarded as an opportunity to practice conflict resolution and negotiation.
As sophisticated approach to playing the role of Penelope would be to listen carefully and search