13. Cultural differences in BD Flashcards
(37 cards)
How do high-performing culturally diverse teams achieve their success? Di Stefano and Maznezski’s answer
The key is in the teams interaction processes - how they understood, incorporated and leveraged their differences
What is the negative that can be the result of being a culturally diverse board?
Cognitive conflict (misunderstandings)
What does a CoSec require to effectively fulfil role as cultural diplomat? (2)
- An appreciation of what it means to develop cultural awareness
- Knowledge of how the different varieties of culture might play out in the boardroom
3 different types of cultural differences
Organisational
Sector
Country
What did search firm Egon Zehnder describe as the ‘new must haves’ re. board competencies?
Cultural intelligence and international experience
What can be considered a vital psychological, social and cultural competency of the CoSec?
Developing the skill and knowledge as a cultural diplomat
2 reasons why a CoSec should play the role of cultural siplomat
- Mediate potential conflict
- Facilitate effective board function
Define ethnocentrism
The act of judging another culture based on preconceptions that are found in values and standards in ones own culture
Define ethnorelativism
Perceiving other cultures as separate and valid alternatives that are no better and no worse than one’s own
Milton Bennett’s 6 stages of cultural development to become more interculturally sensitive
ETHNOCENTRIC
- Denial
- Defence
- Minimalisation
ETHNORELATIVE
- Acceptance
- Adaptation
- Integration
Milton Bennett’s 6 stages of cultural development to become more interculturally sensitive - Denial (2)
Individual not perceiving cultural difference at all or only in broad categories (foreigner, minority, etc.)
Leads to naive observations or use of stereotypes
Milton Bennett’s 6 stages of cultural development to become more interculturally sensitive - Defence (2)
Recognition of cultural difference, but tendency to polarise as ‘us and them’
Quick to blame cultural difference for failures
Milton Bennett’s 6 stages of cultural development to become more interculturally sensitive - Minimalisation (2)
Recognition of superficial differences (such as eating customs), while holding view that all humans are essentially the same
Obscures deeper, more important, cultural differences
Milton Bennett’s 6 stages of cultural development to become more interculturally sensitive - Acceptance (2)
One views one’s own culture as one of a number of equally complex worldviews
Curiousness and respect towards difference, but a lack of easily adapting behaviour
Milton Bennett’s 6 stages of cultural development to become more interculturally sensitive - Adaptation (2)
One is now able to develop communication skills and alternative behaviour for the different cultural context
Perceives others as equals, but with a different reality
Milton Bennett’s 6 stages of cultural development to become more interculturally sensitive - Integration
Internalisation of bicultural or multicultural perspectives, allowing to easily move in and out of different cultures, or conduct cross-cultural mediation
4 issues faced by multicultural teams
- Differences in communication styles
- Troubles with accidents and fluency
- Differing attitudes towards hierarchy and authority
- Conflicting norms for decision-making
4 strategies for dealing with multicultural challenges
Adaptation - acknowledging cultural gaps and working around them
Structural intervention - changing the shape of the team
Managerial intervention - setting norms early or bringing a higher level manager
Exit - removing a team member when other options have failed
Which 2 model look at company culture?
Deal and Kennedy’s 5 cultural elements
Deal and Kennedy’s 4 cultural types
Deal & Kennedy’s 5 cultural elements
Business environment- PESTLE
Values - at heart of corporate culture, reinforced be leaders and managers
Heroes - role models against which employees can compare their behaviours, including visionary leaders
Rites and rituals - ceremonies and behaviours that reinforce culture
Cultural network - rumours, gossip, behaviours
Deal and Kennedy’s 4 cultural types - low or high risk & slow or quick feedback (on success)
Tough-guy culture - high risk, quick feedback
Work-hard, play-hard culture - low risk, quick feedback
Bet-your-company culture - high risk, slow feedback
Process culture - low risk, low feedback
Evidence of company culture (good or bad) can be found in: (8)
- Measures of org success against declared objectives
- Staff turnover
- Board turnover
- Succession planning
- Board eval reports and governance reviews
- Staff surveys and exit interviews
- Stakeholder surveys
- Results of whistleblowing and complaints processes
What % of mergers fail, and what % of these fail as a direct result of lack of cultural integration
70%
30%
Which framework looks at culture differences between sectors?
Cameron and Quinn competing values framework
