Chapter 13 - Cultural diplomat

Question 1

How can a co-sec act as a cultural diplomat for the board’s benefit?

Answer 1

Develop cultural awareness through understanding lens 5 (stakeholders) and 6 (wider systemic factors i.e. PESTLE)

Question 2

According to Bhawuk and Brislin, what is intercultural sensitivity?

Answer 2

Bhawuk and Brislin – intercultural sensitivity is where a person is interested in other cultures, notices cultural differences and modifies their behaviour as an indication of respect for the people of other cultures. Intercultural sensitivity is a predictor of effectiveness.

Question 3

Outline Bennett’s 6 stage model on intercultural sensitivity

Answer 3

1. Denial - individual does not perceive cultural difference at all or perceiving it only in broad categories such as ‘foreigner’ or ‘minority’
2. Defence - recognition of cultural difference, but tendency to polarise it as ‘us and them’
3. Minimisation - recognition of differences, while holding the view all humans are the same. However, will favour dominant culture’s false sense of equality
4. Acceptance - one views one’s own culture as just one of a number of equally complex worldviews - acceptance but unable to adapt behaviour in cultural context
5. Adaptation - one is able to develop communication skills and alternative behaviour for the different cultural context
6. Integration - internalisation of bicultural and multicultural perspectives

Question 4

The first three stages of Bennett’s intercultural sensitivity model – denial, defence and minimisation – comprise the ‘ethnocentric’ phases of the model. What is ethnocentrism?

Answer 4

Ethnocentrism is defined as the ‘act of judging another culture based on preconceptions that are found in values and standards of one’s own culture’.

Question 5

The final three stages of Bennett’s intercultural sensitivity model – acceptance, adaptation and integration – comprise the ‘ethnorelative’ phases. What does this mean?

Answer 5

They perceive other cultures as separate and valid alternatives that are no better and no worse than one’s own.

Question 6

How can a co-sec be useful in terms of managing intercultural sensitivity on the board?

Answer 6

The company secretary can be a useful board conscience by monitoring the levels of ethnocentrism that might naturally creep back into a board’s talent management approach if diversity is seen as a pet project rather than integrated into the core values of board function

Question 7

What is cultural intelligence according to Earley and Mosakowski and outline the 3 ways it can be developed.

Answer 7

Earley and Mosakowski: an outsider’s seemingly natural ability to interpret someone’s unfamiliar and ambiguous gestures the way that persons compatriots would. Cultural intelligence can be developed in 3 ways:

1. Developing one’s cognitive CQ i.e. knowledge about cultures, including facts and cultural traits
2. Develop physical CQ i.e. specific skills to manage oneself and one’s social interactions
3. Develop one’s emotional or motivational CQ i.e. the awareness one has of oneself and others

Question 8

How can cultural intelligence be measured?

Answer 8

• Academically validated assessments such as the questionnaire developed by Earley and Mosakowski

Question 9

According to Jeanne Brett, there are 4 strategies that most successful leaders use when managing multicultural teams - SAME

Answer 9

1. Structural intervention – changing the shape of the team
2. Adaptation – acknowledging cultural gaps openly and working around them
3. Managerial intervention – setting norms early or bringing in a higher level manager
4. Exit – removing a team leader where other options have failed

They note that adaptation is the ideal strategy as this enables the team to solve its own problem with minimal outside input and therefore also from the experience for the benefit of future team performance.

Question 10

Outline the six interlocked elements around organisational culture by Deal and Kennedy - BHHCVR

Answer 10

1. Business environment: PESTLE e.g. tech change or customer demand
2. History
3. Heroes: previous and current charismatic leaders
4. Cultural network: the rumour mill that exists in the organisation, the informal coalitions and gossip that exist to spread information about values, behaviours and heroic myths
5. Values and beliefs: sharing what is important within the organisation
6. Rituals and ceremonies: the everyday habits of the organisation or initiations for new employees

Question 11

What are the four types of culture that are created by Deal and Kennedy’s six interlocked elements?

Answer 11

1. Macho, tough guy culture: entrepreneurial and individualistic. Companies with this cycle follow a cycle of boom and bust and are opportunistic
2. Process culture: prioritise status and the conduct of work – e.g. traditional banks and public sector
3. Work-hard and play-hard culture: individuals work alone but have a supportive team e.g. high volume sales
4. Bet-your-company culture: Organisations may require significant capital investment to enable R&D, and will require people to believe in the eventual outcome and build a team awareness and knowledge bank. E.g. oil companies and pharmaceutical businesses

Question 12

Outline some examples of places to search for evidence of culture based on the 2018 ICSA Report: Organisational culture in sport

Answer 12

• Measures of organisational success against declared objectives
• Policy documents, risk register and board minutes
• Staff turnover – planned and unplanned
• Board turnover and succession planning
• Board attendance and activity
• Board evaluation reports and governance reviews
• Audit reports and letters
• Staff surveys and exit interviews
• Stakeholder surveys
• Results of whistleblowing and complaints processes
• Organisation’s cultural reporting

Question 13

How can culture be affected following a merger/acquisition?

Answer 13

• Decision-making: different styles of decision-making e.g. dictatorial vs consensus – may lead to delays to significant decisions when rapid decisions are required
• Changed leadership style: employees may not want to remain in a company, particularly those in senior positions where they are closest to the leaders
• Strategic lethargy – inability to capitalise on the benefits of the combined organisations or an unwillingness to implement new strategies
  *Internal communication: may need to be rebuilt – one may prefer face-to-face, other may prefer written
• Global organisation will need to be culturally aware
• Daimler Benz’s (German company) purchase of Chrysler (US) for $36 billion – cultural differences made it difficult for the two brands > Daimler Benz selling Chrysler for $650 million