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GLOBE project

GLOBE project. Comments from the field. “Global managers have exceptionally open minds. They respect how different countries do things, and they have the imagination to appreciate why they do them that way … Global managers are made, not born” – CEO of ABB

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GLOBE project

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  1. GLOBE project Copyright 2003-2006, Chris Chan

  2. Comments from the field • “Global managers have exceptionally open minds. They respect how different countries do things, and they have the imagination to appreciate why they do them that way … Global managers are made, not born” – CEO of ABB • Globally literate leaders were Gillette’s scarcest resource – ex-CEO Alfred Zeien • Survey of Fortune 500 – 85% of execs don’t believe they have global leaders, 65% believe existing leaders need additional training Ehrlich (2002), Gregerson, Morrison & Black (1998) Copyright 2003-2006, Chris Chan

  3. Background • GLOBE = Global Leadership and Organizational Behavior Effectiveness • Robert House @ Wharton, 1991 • 170 social scientists and management researchers from 61 countries participated • 18000 managers • Performance orientation, future orientation, assertiveness, power distance, humane orientation, societal collectivism, in-group collectivism, uncertainty avoidance and gender egalitarianism • How does culture affect leadership styles and is there a set of universally acceptable styles and practices? Copyright 2003-2006, Chris Chan

  4. Who cares? • Know what to expect from the other party • More successful negotiation outcomes • More successful conflict resolutions • Improved problem solving capabilities • Informed decision making Copyright 2003-2006, Chris Chan

  5. Desirable and undesirable leadership attributes • Decisiveness • Foresight • Charisma • Value-based • Participative • Humane-oriented • Team-oriented • Irritability • Ruthless • Self-protective leadership Copyright 2003-2006, Chris Chan

  6. Culturally contingent attributes • Ambitious • Elitist • Low respect for people in leadership positions • Autonomous Copyright 2003-2006, Chris Chan

  7. Performance orientation (PO) • Achievement • Job challenge • Job recognition • Money and wealth • Stress on equity Copyright 2003-2006, Chris Chan

  8. High and Low PO societies HIGHLOW • Singapore Russia • Hong Kong Argentina • New Zealand Greece • Taiwan Venezuela • USA Italy • Japan Sweden • England Israel • Spain Copyright 2003-2006, Chris Chan

  9. Who cares about PO? • Economic prosperity and national competitive • Societal support (including govt support) for competitiveness • High level of human development • Linked to charismatic and participative leadership, humane-oriented, team-oriented and autonomous • Negatively linked to self-protective individuals Copyright 2003-2006, Chris Chan

  10. Future orientation (FO) • Save for rainy days • Plans • Take longer to decide Copyright 2003-2006, Chris Chan

  11. High and Low FO societies HIGH LOW • Singapore Russia • Switzerland Argentina • Netherlands Poland • Canada Italy • Denmark Kuwait • India Slovenia • Australia Egypt • Ireland Copyright 2003-2006, Chris Chan

  12. Assertiveness • (Tough, confrontational, assertive and competitive) vs (Modest and Tender) • Assertive societies value and encourage competition – also tend to be more aggressive • Less assertive societies value cooperation and maintaining harmony Copyright 2003-2006, Chris Chan

  13. High and Low Assertiveness Societies HIGH LOW • Germany Sweden • Austria New Zealand • Greece Switzerland • US Japan • Spain Kuwait • France Egypt • Ecuador Ireland • Philippines Aust - top 20 Copyright 2003-2006, Chris Chan

  14. Why bother about assertiveness? • Assertiveness – desirable or not desirable? • Is low assertiveness a sign of weakness? • High in masculine societies • Lower humane-orientation • Lower egalitarianism • More respect for family and friends Copyright 2003-2006, Chris Chan

  15. Power Distance (PD) • Degree to which people expect power to be shared unequally • Tolerance of inequity • Respect of power, authority, prestige, status and wealth Copyright 2003-2006, Chris Chan

  16. High and Low PD Societies HIGH LOW • Morocco Denmark • Argentina Netherlands • Thailand South Africa • Spain Israel • Russia Costa Rica • Portugal England • Italy France • Brazil Copyright 2003-2006, Chris Chan

  17. PD – So what? • Hierarchical organizations • Clear demarcation between superiors and employees • Titles, job descriptions and positions are important • Top down approach e.g. performance review Copyright 2003-2006, Chris Chan

  18. Humane Orientation (HO) • Degree to which a society values and rewards people for being fair, altruistic, generous, caring and kind • Tend to be paternalistic • Value harmony and obedience • Higher job security Copyright 2003-2006, Chris Chan

  19. High and Low HO Societies HIGH LOW • Philippines Germany • Ireland Spain • Malaysia France • Indonesia Singapore • New Zealand Brazil • US Hong Kong • Taiwan Sweden Copyright 2003-2006, Chris Chan

  20. Societal (Institutional) Collectivism (SC) • Extent to which people are integrated into societies and organizations • Collectivistic (cohesion) • Organizations take care of employee welfare Copyright 2003-2006, Chris Chan

  21. High and Low SC Societies HIGH LOW • Sweden Greece • South Korea Hungary • Japan Germany • Singapore Argentina • Denmark Italy • Indonesia Hong Kong • Poland US • Egypt Copyright 2003-2006, Chris Chan

  22. In-Group Collectivism (IC) • Extent of collectivism in family units, close-friends and work units • Emphasize non-verbal communication • Understand non-verbal ‘rules of engagement’ • Rely on connections Copyright 2003-2006, Chris Chan

  23. High and Low IC Societies HIGH LOW • Iran Denmark • India Sweden • Morocco New Zealand • China Netherlands • Egypt Finland • Italy Japan • Austria Israel Copyright 2003-2006, Chris Chan

  24. Uncertainty Avoidance (UA) • Extent of risk taking • Rely on structure, procedures, and laws to function • Emphases on using contracts and ‘expert’ opinions • Punctuality is important Copyright 2003-2006, Chris Chan

  25. High and Low UA Societies HIGH LOW • Switzerland Russia • Sweden Hungary • Germany Bolivia • Denmark Greece • Austria Venezuela • Ireland Israel • Kuwait US Copyright 2003-2006, Chris Chan

  26. Gender egalitarianism (GE) • Extent to which gender role differences are minimized • Higher participation of women in different organizational levels • Women are involved in higher decision making and enjoy higher status • Life expectancy • General satisfaction • Standard of living • Economic prosperity and GNP per capita Copyright 2003-2006, Chris Chan

  27. High and Low GE Societies HIGH LOW • Hungary South Korea • Poland Egypt • Slovenia Morocco • Denmark India • Sweden China • Venezuela Italy • Netherlands Brazil • Argentina Copyright 2003-2006, Chris Chan

  28. There is no saturation point in education if you follow sound principles, and you must apply this motto to business. . . . You must acquire wisdom in addition to knowledge. Wisdom is the power which enables you to use your knowledge to advantage. Thomas J. Watson 1874-1956 Founder of IBM Copyright 2003-2006, Chris Chan

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