13 - Cultural differences in boardroom dynamics Flashcards
What has driven board diversity?
- media scrutiny
- shareholder voice
- increasing governance compliance
- greater awareness of benefits
What is the Milton Bennett model of intercultural sensitivity?
- Denial (ethnocentric)
- Defence (ethnocentric)
- Minimalisation (ethnocentric)
- Acceptance (ethnorelative)
- Adaptation (ethnorelative)
- Integration (ethnorelative)
How develop cultural intelligence (CQ)
- improving one’s cognitive CQ
- developing physical CQ
- developing emotional/motivational CQ
Brett - four strategies that the most successful teams and leadership itneviewed used for dealign with intercultural challenges
- adaptation (acknowleding cultural gaps and working around)
- structural intervention (shapre of team)
- managerial intervention (setting norms early/bringing in a higher level manager)
- exit (removing team member)
Deal and Kennedy’s model of corporate culture elements (1982)
- business environment
- values
- heroes
- rites and rituals
- cutlural network
Deal and Kenny (1982) types of corporate culture
- tough guy culture
- work hard play hard
- bet your company
- process culture
70% of mergers fail - 30% as direct result of lack of cultural integration.
Culture may affect new orgs in mergers (6)
- ability to change
- internal comms
- defining success
- decision-making
- leadership style
- strategic focus
Daimler Benz - Chrysler cas study
Benz purchased Chrysler in 1998 for $36bn.
Benz responded to affluent market catered to elite class.
Chrysler competing solely on price.
Different markets - different cultures - union failed.
Boards need to consider cultural due diligence.
Competing Values Framework (Cameron and Quinn, 2006)
- Hierarchy culture - internal/current
- Clan culture - internal/future
- Adhocracy culture - external/future
- Market - external/current
EasyJet case study
Started with start-up Adhocracy that is now combination of low-cost sales-based Market culture serving customers day-to-day and Hierarchy culture that logistically ensures safety and efficient operations.
Founder stepped aside a bit and allowed professional management to run it day-to-day.
Hofstede cultural dimensions
- power distance
- individualism
- masculinity
- uncertainty avoidance
- long-term orientation
Trompenaars and hampden-Turner cultural dimensions cf Hofstede
- univeralism/particularism
- individualism/communitariansim
- neutral/effective (display of emotions)
- specific versus diffuse (how far involved)
- achieved status or ascribed status
- time orientation
- internal vs external orientation
What must we remember re: country culture
“tendencies and marginality”
US vs UK cultural case study
“quite good”
