Cultural Differences in Boardroom Dynamics Flashcards
THE COMPANY SECRETARY AS CULTURAL DIPLOMAT
In today’s complex global business environment we will work with, and be required to influence, peers and stakeholders with different backgrounds, values and assumptions.
What is the company secretary’s role as cultural diplomat as a key figure in the boardroom? (2)
What will the company secretary need to do? Why?
(1) mediate the likely conflict that cultural diversity and its associated cognitive conflict can bring
(2) enhance the board dynamic by supporting individual directors on the board as a whole to appreciate and leverage their unique strengths and perspectives
develop both skills and knowledge as a cultural diplomat = a vital psychological, social and cultural competency through which the company secretary can influence the board dynamic
CULTURAL DEVELOPMENT - CULTURE & CULTURAL VARIETY
How is culture defined?
What is the concept of ‘cultural variety’?
Aside from social class, gender, generational and ethical cultural differences, what are the 4 further key cultural varieties that influence the board dynamic?
the way we do things around here
cultural variety = recognises that there are cultures within cultures such that an individual’s culture is multifaceted and has several levels
(1) company culture
(2) sector culture
(3) vocational culture
(4) country culture
CULTURAL DEVELOPMENT - STAGES OF CULTURAL DEVELOPMENT
Bennett’s developmental model of intercultural sensitivity is a 60-item test to measure intercultural sensitivity at an individual, group or organisational level.
The developmental model is based on 6 core orientations towards cultural differences that represent predictable stages of becoming more inter-culturally sensitive.
What are the 6 stages of cultural development in the model?
What do the first 3 stages of the developmental model comprise what?
How is ethnocentrism defined?
What do the last 3 phases of the model comprise?
(1) Denial
(2) Defence
(3) Minimisation
(4) Acceptance
(5) Adaption
(6) Integration
Denial, defence and minimisation = the ‘ethnocentric’ phases of the model
Ethnocentrism = the act of judging another culture based on preconceptions that are found in values and standards of one’s own culture
Acceptance, adaptation and integration = the ethnorelative phases
(they perceive other cultures as separate and valid alternatives that are no better and no worse than one’s own)
CULTURAL DEVELOPMENT - STAGES OF CULTURAL DEVELOPMENT - 1. DENIAL
The denial stage is characterised by an individual not perceiving what?
A person at this stage may make what?
A person at this stage may behave how?
What are the competencies to develop at this stage? (3)
not perceiving cultural difference at all or, perceiving it only in broad categories such as ‘foreigner’ or ‘minority’
may make well-meant but naive observations, or use benign stereotypes, as well as superficial statements of tolerance
behave disinterested, or hostile and dismissive of culturally different people
(1) the ability to gather appropriate information about culture, (2) the initiative to explore subjective culture and (3) the ability to recognise differences, especially in concepts of trust, friendliness and cooperation
CULTURAL DEVELOPMENT - STAGES OF CULTURAL DEVELOPMENT - 2. DEFENCE
In this stage there is a recognition of cultural difference, but also a tendency to what?
This stage is characterised by people feeling what?
What are the competencies to develop at this stage? (2)
polarise it as ‘us and them’, whereby typically the ‘us’ is superior and the ‘them’ is inferior
threatened by cultural difference and so tending to be highly critical and blaming of cultural difference for the general ills of society
(1) the discipline to maintain personal control, and (2) the ability to manage one’s own discomfort or anxiety with patience
CULTURAL DEVELOPMENT - STAGES OF CULTURAL DEVELOPMENT - 3. MINIMISATION
In this stage, there is the recognition of what?
This stressing of a universal cross-cultural similarity reduces what, such that what?
However, this stage also obscures what? Which may include what?
What are the competencies to develop at this stage? (3)
the recognition of some superficial differences, while holding a view that all humans are essentially the same
reduces one’s feeling of defensiveness such that people in this stage are much more tolerant of superficial cultural diversity
obscures deeper cultural differences, which may include the dominant culture’s false assumption of equality
(1) developing knowledge about intercultural communication processes, (2) remaining open minded, (3) developing listening skills and the ability to be non-judgemental in interactions
CULTURAL DEVELOPMENT - STAGES OF CULTURAL DEVELOPMENT - 4. ACCEPTANCE
An attitude of cultural acceptance is when what?
The acceptance stage is also characterised by what?
What are the competencies to develop at this stage? (3)
is when one views one’s own culture as just one of a number of equally complex worldviews
by curiosity and being respectful towards cultural difference, but a lack of easily adapting behaviour to different cultural context
(1) learning culture-specific knowledge, (2) developing the ability to perceive a wide range of contextual factors, and (3) tolerance of uncertainty and ambiguity
CULTURAL DEVELOPMENT - STAGES OF CULTURAL DEVELOPMENT - 5. ADAPTATION
When one reaches the cultural sensitivity level of adaptation, one is able to what?
What does this involve?
This stage is characterised by what?
What are the competencies to develop at this stage? (3)
to develop communication skills and alternative behaviour for the different cultural context
involves intercultural empathy such that a person can shift perspective to understand and be understood across cultural boundaries
by generation of authentic behaviour in the alternative culture = intercultural communication competence
(1) empathy, (2) risk-taking skills, problem-solving skills, and (3) flexibility in social and communication style
CULTURAL DEVELOPMENT - STAGES OF CULTURAL DEVELOPMENT - 6. INTEGRATION
This stage is characterised by what?
One would be able to conduct what?
What are the competencies to develop at this stage? (3)
by the internalisation of bi-cultural or multicultural perspectives
conduct sophisticated cross-cultural mediation and be seen as a dynamic ‘in-between’, moving in and out of different cultures
(1) a culturally sensitive sense of humour, (2) the ability to take on leadership roles and (3) the ability to switch identity according to cultural context
CULTURAL DEVELOPMENT - CULTURAL INTELLIGENCE
How do Earley and Mosakowski (2004) define cultural intelligence (CQ)?
What does cultural intelligence (CQ) build on?
What are the 3 ways cultural intelligence (CQ) can be developed?
How can one’s cultural intelligence be diagnosed?
an outsider’s seemingly natural ability to interpret someone’s unfamiliar and ambiguous gestures the way that persons compatriots would
builds on the concept of emotional intelligence, while incorporating the capability to interact effectively across cultures
(1) through improving one’s cognitive CQ = knowledge about cultures, including facts and cultural traits
(2) through developing physical CQ = specific skills to manage oneself and one’s social interactions
(3) through developing emotional or motivation CQ = the awareness one has of oneself and others
Earley and Mosakowski created a questionnaire where one rates themselves on a scale from 1 (strongly disagree) to 5 (strongly agree) across 12 statements = average score < 3 is poor and >4.5 reflects true CQ strength
CULTURAL DEVELOPMENT - MULTICULTURAL TEAMS
Brett (2006) considers how to manage multicultural teams whose members come from different nations and backgrounds and thus have the potential for conflict.
What are the 4 challenges?
What are the 4 strategies that the most successful teams and leaders use for dealing with these challenges?
Which of the 4 strategies is ideal? Why?
For this strategy to work, team members must be what?
(i) differences in communication style
(ii) trouble with accidents and fluency
(iii) differing attitudes towards hierarchy and authority
(iv) conflicting norms for decision-making
(1) adaptation = acknowledging cultural gaps openly and working around them
(2) structural intervention = changing the shape of the team
(3) managerial intervention = setting norms early or bringing in a higher level manager
(4) exit = removing a team member when other options have failed
Adaptation = enables the team to solve its own problem with minimal outside input and therefore also learn from the experience for the benefit of future team performance
be exceptionally aware and also willing to invest time to negotiate a common understanding
COMPANY CULTURE
How is company culture defined?
What are the 5 elements in Deal and Kennedy’s model of corporate culture (1982)?
The way in which members of an organisation relate to each other, their work and the outside world in comparison to other organisations
(1) The business environment = the PESTLE elements an organisation will orient around and which may influence specific cultural cycles (e.g. customer demand)
(2) Values = at the heart of corporate culture and successful companies are most clear about these so that senior leaders and managers can publicly reinforce them
(3) Heroes = the personifications of an organisation’s values, the role models against which employees can compare the behaviours
(4) Rites and rituals = the ceremonies and routine behaviours that reinforce the culture such as the common initiations for new employees
(5) The cultural network = the informal coalitions and gossip that exist to spread information about values, behaviours and heroic myths
COMPANY CULTURE
What are Deal and Kennedy’s 4 types of corporate culture that the 5 elements support? (Matrix)
X axis = low risk to high risk
Y axis = slow feedback to fast feedback
(1) The tough-guy culture = high risk and quick feedback = entrepreneurial and individualistic Companies with this culture follow a cycle of boom and bust and are opportunistic
(2) The work-hard, play-hard culture = low risk but quick feedback = this culture is where an individual works alone, but has a supportive team, e.g., a high-volume sales company
(3) The bet-your-company culture = high-risk, slow feedback = found in high risk, long-term industries such as oil and aerospace businesses, which require significant technical expertise
(4) The process culture = low risk and slow feedback = typifies the public sector and traditional retail banks which prioritise status and the conduct of work
COMPANY CULTURE
The 2018 ICSA report entitled ‘Organisational culture in sport: assessing and improving attitudes and behaviour’ advises there are several places to look for evidence of an organisation’s culture.
Name 5 examples.
How does this fit with the work of Schein?
Therefore, it may also be useful to tap into what?
(1) measures of organisational success against declared objectives
(2) policy documents, risk register, and board minutes (board attendance and activity)
(3) staff and board turnover (also staff surveys and exit interviews)
(4) results of whistleblowing and complaints processes
(5) audit reports and regulatory involvement
evidence list seems quite formal and perhaps represents either artefacts or documents which might reveal the espoused values of the culture rather than indicating the deeper embedded culture
tap into the informal aspects of the culture through an exploration of the organisation’s metaphors and stories = create focus groups and workshops
COMPANY CULTURE - MERGERS & ACQUISITIONS
The culture of an organisation becomes central when two companies are merged, or an acquisition takes place.
On average, 70% of mergers fail, and of these, approximately 30% fail as a direct result of a lack of cultural integration.
Culture in mergers may affect the new organisation in what 6 ways?
Name an example of a merger that failed due to cultural differences.
(1) Decision making = different styles of decision-making, such as dictatorial versus consensus, may delay or derail significant decisions at a time when rapid decisions are needed
(2) Leadership style = employees may not want to remain in a company with a changed style
(3) Strategic focus = the combination of 2 divergent leadership teams may result in ‘strategic lethargy’, an inability to capitalise on the benefits of the combined organisation, or an unwillingness to implement new strategies
(4) Ability to change = a static organisational style may not be able to change quickly enough to embed the benefits of the merger;
(5) Internal communication = styles of communication between functions and teams may need to be rebuilt based on a new combined culture (written has an audit trail so face to face less trusting?)
(6) Defining success = recognition of personal success may be different, and changes may not be welcomed e.g., being team-focused versus individual-focused, or monetary-focused versus promotion-focused
German car company Daimler Benz purchased US company Chrysler in 1998. It sold it in 2007
