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The Globe study

The Globe study. Doing Business Around the World. Agenda. What is the GLOBE study? GLOBE’s Business Implications The Latin American Cultural Cluster The Confucian Cultural Cluster The African Cultural Cluster Conclusion References. The Globe Study.

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The Globe study

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  1. The Globe study Doing Business Around the World

  2. Agenda • What is the GLOBE study? • GLOBE’s Business Implications • The Latin American Cultural Cluster • The Confucian Cultural Cluster • The African Cultural Cluster • Conclusion • References

  3. The Globe Study Published in 2004 study entitled, Culture, Leadership, & Organizations: The GLOBE Study of 62 Societies Determines that leadership is contextual Social and organizational norms determine leadership effectiveness Distinct geographic “Cultural Clusters” determine which norms prevail and how they are enacted (Hoppe, 2007)

  4. The Cultural dimensions Power Distance: Expectations for equal power distribution Uncertainty Avoidance: Adherence to procedure and risk aversion Humane Orientation: Values altruism, fairness, and caring toward others Collectivism (Institutional): Values collective resource distribution & action Collectivism II (In-Group): Values cohesiveness/loyalty within groups Assertiveness: Collective tendency toward assertiveness or aggression Gender Egalitarianism: Degree of gender equality Future Orientation: Values future vision above present need or want Performance Orientation: Promotes individual performance improvement (Hoppe, 2007)

  5. The CulTural clusters Nordic Anglo Germanic Latin European African Eastern European Middle Eastern Confucian Southeast Asian Latin American

  6. The Latin American Cluster High Power Distance Low Performance Orientation Low Uncertainty Avoidance Low Future Orientation Low Institutional Collectivism High In-Group Collectivism (Gupta, Hanges, & Dorfman, 2002)

  7. Implications for leadership in latinamerica Strong leadership is valued Clear hierarchies Strong boundaries between authorities and subordinates Rule based structures are appreciated Loyalty and collectivism are more oriented toward the familial and the social, not the professional/organizational. Appeals to business/company loyalty may not be as effective Low future orientation and performance improvement indexes incentives other than promotion and advancement may be needed Strategic planning and long-term and short-range goals may not be a priority for workers Collective goal setting is needed to build the future orientation Individual status, reputation, and prestige are highly valued

  8. Confucian cultural cluster High power distance High performance orientation Moderate-to-high future orientation Historically low gender egalitarianism Moderate institutional and in-group collectivism High uncertainty avoidance (Pirju & Modest, 2013)

  9. Implications for leadership in the Confucian cluster Leaders must be sensitive to the unique conditions of distinct areas of this region Hong Kong more individualistic and risk-tolerant than mainland China, with lower power distance Leaders may capitalize upon workers’ orientation toward continued self-improvement Future orientation is moderate Skepticism about long-range future Short-term future goals more effective A well established hierarchy and rule-based system is valued Leaders must be sensitive to history of low gender egalitarianism

  10. The African cultural cluster Distinguished by large regional variation All regions value in-group and institutional collectivism Most regions exhibit low future orientation Most regions exhibit high uncertainty avoidance Most regions exhibit low performance improvement Most regions, especially sub-Saharan Africa, exhibit high humane orientation (Culture Plus Consulting, 2015)

  11. Implications for leadership in the African cluster Leaders can build upon the highly collectivist orientation of this cluster Driving a spirit of team-building, loyalty, trust, and mutual care is essential Most areas, especially in Sub-Saharan regions, feature a high humane orientation Leadership styles which are compassionate, charismatic, and caring will be valued Most regions are highly risk averse and short-term oriented Risk taking, innovation, and long-ranging planning may not be effective There is low power distance here, meaning that workers will value participative leadership

  12. references Culture Plus Consulting. (2015). Cultural Clusters: Mapping Cultural Distance. Retrieved from http://cultureplusconsulting.com/2015/03/24/mapping-cultural-distance-cultural-clusters/ Gupta, V., Hanges, P., & Dorfman, P.W. (2002). Cultural clusters: Methodology and findings. Journal of World Business, 37(1), 11-15. Hoppe, M.H. (2007). Culture and leader effectiveness: The GLOBE study. Retrieved from http://www.inspireimagineinnovate.com/pdf/globesummary-by-michael-h-hoppe.pdf Pirju, I.S. & Modest, D.B. (2013). The Confucian Asian cluster. Acta Univeritatus Danubius: Relationes Internationales, 6(2), 31-40.

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