Chapter 13 - Cultural Differences in Boardroom Dynamics Flashcards
(18 cards)
What is cultural sensitivity?
Being aware that cultural differences and similarities exist without assigning value, positive or negative, better or worse, right or wrong.”
How does the Company Secretary act as a cultural diplomat?
By fostering inclusive teams, resolving cultural misunderstandings, and helping directors value different perspectives.
What are Bennett’s six stages of intercultural development (1993)?
Ethnocentric: Denial, Defence, Minimisation
Ethnorelative: Acceptance, Adaptation, Integration
What is Cultural Intelligence (CQ) according to Earley & Mosakowski (2004)?
The ability to interpret unfamiliar gestures and behaviours as a local would.
CQ components: Head (knowledge), Body (behaviour), Heart (empathy/motivation)
What are Brett’s (2006) four multicultural team strategies?
Adaptation (ideal), Structural Intervention, Managerial Intervention, Exit
Q: What is Hofstede’s (2016) definition of corporate culture?
“The way in which members of an organisation relate to each other, their work, and the outside world.”
What are Deal & Kennedy’s (1982) five elements of organisational culture?
Business environment, Values,
Heroes,
Rites & rituals,
Cultural network
What are Deal & Kennedy’s four types of organisational culture?
Tough Guy – high risk, fast feedback
Work Hard/Play Hard – low risk, fast feedback
Bet Your Company – high risk, slow feedback
Process Culture – low risk, slow feedback
What are real-world examples of failed culture alignment in M&A?
HP–Compaq (2001) and HP–Autonomy (2011) – both failed due to cultural mismatch
What is the Competing Values Framework (Cameron & Quinn, 2006)?
Categorises culture by internal/external focus and flexibility/control into:
Clan – collaborative
Hierarchy – formal/process
Adhocracy – creative/agile
Market – competitive/performance
What sectors match the four culture types?
- Listed companies – Market
- SMEs/start-ups – Adhocracy
- Public sector – Hierarchy
- Charities – Clan
What are Hofstede’s five dimensions of national culture?
Power Distance
Uncertainty Avoidance
Individualism vs Collectivism
Masculinity vs Femininity
Long-term vs Short-term Orientation
How does time perception vary across cultures?
- Germany – 10 min early is on-time
- Japan – 1 min late = late
- Malaysia – 1 hour late = normal
- Brazil/Mexico/Greece – relaxed timing
- South Korea/China – value punctuality
CoSec as Cultural Diplomat
SCORE
Sensitivity,
Conflict mediation, Ownership,
Respect,
Empathy
Cultural Development
BAH-CQ-BAM
Bennett, Awareness, Hofstede, CQ (Head/Body/Heart), Brett, Adaptation, Multicultural teams
Corporate Culture
H-DK-MAHP
Hofstede, Deal & Kennedy, M&A, HP case, Process culture
Sector Culture
CHAM
Clan,
Hierarchy,
Adhocracy,
Market
Country Culture
P-U-I-M-L-T
Power Distance, Uncertainty Avoidance, Individualism, Masculinity, Long-term, Time norms
