Geert Hofstede started an important study of national cultures according to four dimensions and a fifth dimension was added later:

• Power distance
• Individualism vs collectivism
• Masculinity vs femininity
• Uncertainty avoidance and long vs short term orientation

Myers-Briggs identifies personality types according to the way individuals approach information and decisions.We can combine these tools to better understand international leadership. Review the following article:Leadership Affected by Culture (PDF)download

In the article the author uses examples of the United States, Mexico, and India to illustrate the importance of culture in leadership and in creating corporate culture.

Cultural Diversity and Management/Leadership Models Martine Duchatelet INTRODUCTION Multi-cultural diversity and its implications for takes the pessimistic view that within a national effective management have become important issues culture, there might easily be a pervasive tendency for in recent years, in both academic and professional managers to encourage the potential of those whose publications. This is a new preoccupation. Forty years personality traits most closely fit the prevailing ago and, in reprints, as recently as twenty years ago, culture and to ignore or shun the others. Such a Peter Drucker [2) did not even mention dealing with tendency could lead to disastrous results not only for cultural diversity in his seminal work. He addresses the individuals whose potential is quashed but also for the topic of the "manager of tomorrow" and stresses society at large. that American managers, more than ever, will have to be of impeccable personal integrity and will have to HOFSTEDE'S MODEL OF shoulder the social responsibility of keeping "open CULTURAL DIVERSITY the opportunity to rise from the bottom according to Geert Hofstede [5] [6] initiated an important study ability and performance." Implicitly, Drucker advises of national cultures according to four dimensions. managers to disregard cultural background and These include: instead focus on individual qualities. While this ways of handling social inequality as message remains relevant, it lacks any global appeal measured by a "power distance in- and fails to recognize that there might be special dex," management challenges in an increasingly multi- relationship between the individual cultural business environment. and the group as measured by an An earlier paper [3] argued optimistically that "individualism index," dealing with the multi-cultural diversity of business ways in which gender roles are partners and subordinates is best achieved by focus- defined as measured by a "masculin- ing on the individual's unique personal characteristics ity index," and rather than on his membership in some cultural group ways of dealing with uncertainty as Hofstede's typification of national cultures [5] can measured by an "uncertainty avoid- sensitize a manager to an individual's cultural ance index." background. Focusing on an individual's personal National cultures could be identified and class- characteristics as identified, for example, with the help ified according to these parameters. The score of one of the Myers-Briggs Type Indicator [11], will guide nation on one dimension can be represented by a point managers to help each subordinate reach his personal on a line, the scores of one nation on all four potential in the work arena. In contrast, this paper dimensions can be imagined as a point in a four-dimensional space. Countries can be sorted into avoidance index. A recent study [12] indicates that clusters on the basis of their dimension scores. sixty-six percent of Mexican businessmen tested were One fascinating implication of this description of "traditionalists" (or S-J-T types) according to the national cultures, drawn by Hofstede himself [5], is Myers-Briggs classification whereas traditionalists that psychological, philosophical and managerial made up only thirty three percent of the U.S. sample. models are far from universal, as is often believed, but The difference in the proportion of traditionalists are deeply "culture bound." A popular and virulent among businessmen in the two countries is coherent in indictment of the Harvard Business School manage- terms of the differences between the Mexican and ment education [3] came from an MBA graduate, born American national cultures and could well occur and raised in Switzerland, who was shocked to see without biased recruiting practices. However, the gap individualistic competition ruthlessly promoted over raises the concern that, within any nation, there is a cooperation. This may be understood in terms of pervasive tendency for society to recognize one cultural conditioning: the U.S. rank first on the management/leadership model that fits the national individualism index, whereas Switzerland ranks culture best, and for management to recruit and fourteenth (out of forty countries in Hofstede's study promote those individuals whose personality types [5].) correspond more closely to the prevailing national Hofstede and his followers use their typification culture-bound management model. to promote understanding and sensitivity during Such a tendency would probably be unconscious international business encounters. They fully recog- and, in that sense, innocent, but it could nonetheless be nize that their typification is at best a useful general- very pernicious. It could effectively create a vicious ization and that individual citizens of a nation may circle whereby only those with certain personality show considerable variation from type. types are able to forge ahead and realize their potential; the others, perceived as "misfits", might be MYERS-BRIGGS TYPE INDICATOR effectively barred from success in business firms. This The well-known Myers-Briggs Type Indicator [11] raises intriguing questions as to what happens to the identifies sixteen personality types according to the misfits. Do they remain unrecognized and forever way individuals approach information and decisions: condemned to obscure, menial jobs? Do they emigrate attention focus (Introversion "I" or Extroversion "E"), to countries with more compatible national cultures? information intake (Sensing "S" or Intuition "N"), Do they find outlets for their talents outside the decision making (Thinking "T" or Feeling "F"), and mainstream of economic activity as artists, athletes, attitude towards the outside world (Judging "J" or educators, politicians, etc.? These are important Perception "P".) Although originally conceived in the questions to be settled through empirical studies. U.S., the Myers Briggs' classification remains valid in As a case in point, let us focus on India, one of the other environments. All sixteen personality types exist largest countries on earth, both in terms of territory across cultures and across genders albeit in different and in terms of population. India remains a very proportions [8]. The stated objective of the classifica- unsuccessful country economically speaking with a tion is not to identify the "best" personality type but to per capita income of less than $500, compared to the recognize the strengths and weaknesses associated U.S. with a per capita income of close to $30,000. Yet, with each type so that each personality is valued for many Indian expatriates have achieved considerable what it can contribute to a work team. economic success abroad, most notably in the U.S. and the U.K., but also virtually everywhere else in the SUBTLE DISCRIMINATION World as documented by Kotkin [11]. Hofstede [5] The juxtaposition of Hofstede's typification of ranks India as high on the power distance index, in the national cultures and Myers-Briggs' classification of medium range for individualism and masculinity personalities suggests a disquieting possibility for indices, and extremely low in uncertainty avoidance. subtle discrimination within any society. For example, India also pursues "virtue" rather than "truth." This is the U.S. and Mexico are neighbors with very different a large country, with many strongly distinct national cultures. In a study of forty countries, subcultures (along religious lines, ethnic lines, and Hofstede [6] shows that U.S. citizens exhibit a castes) held together mostly by a recent colonial past moderately low score on the power distance index, the with a legacy of a highly bureaucratic, hierarchical highest score on the individualism index, a relatively society. It is likely that many talented individuals are high score on the masculinity index and a relatively unable to find recognition and success if they do not fit low score on the uncertainty avoidance index. the accepted mold of the ambitious youth in an Mexican respondents, on the other hand, score very environment characterized by a high power distance high on the power distance index, relatively low on the index. Such individuals leave India in great numbers individualism index. very high on the masculinity to find recognition elsewhere. In interviews withreturn home to practice business as they find they the "misfits", although excluded from the influential could never conform to the exigencies and delays of a spheres of business, would benefit from the can- bureaucratic society. It is undeniably India's boss and sumption of the record production levels. Hofstede a personal sadness for those who feel they cannot find might argue that this view could make some for a fulfillment at "home." society that values cooperation and has a long-term Beside economic losses, the cooptation process orientation [6). In the case of the U.S. where described above could help explain gender and racial individualism is exalted and a short term orientation discrimination in society. De facto discrimination prevail, it is hard to believe that the "misfits" would could happen even in a "tolerant" society where reconcile to their lot. people are genuinely blind to superficial physical To illustrate this bows, consider a simplistic model differences among individuals but where thay insid- of society with admittedly biased underlying ously respond to culture-bound personality differ- sumptions. Suppose that a society with ences. Women are quite different from men beyond individuals is organized according to one prevalent. the mere physiological differences. In the US. [10] culture-bound, management/ leadership model. Those they have been identified as more Intuitive, more with personality traits closely compatible to the extroverted, more feeling and perceiving than men. management/leadership paradigm are encouraged. People of European descent are, as a cultural group. They are recognized, challenged, and have reasonable quite different from people from African descent. in expectations of being promoted. They are in the the U.S. Afro-American culture differs significantly mairstream group and they feel optimistic. There are from the prevailing Euro-American culture [7] p such individuals. The other (nip] individuals are People of Western cultures seek "Truth" and have a discouraged. They are ignored, untried, and expect to short term orientation, whereas people of Eastern be used, demoted or fired. They are considered to be cultures seek "Virtue" and have a long ten orken- misfits and they food resentful. In the Myers-Briggs tation [6] All these observations concur and suggest amendature, using the U.S. as an example, all that, even though a national culture can be identified, personality types which are compatible with wiry high large sub-groups in the nation are apt to have a individualism might be accepted and the others cultural identity which deviates substantially from the rejected. Suppose that welfare is measured by the total prevailing national cultural identity. Similarly, one value-added by citizens. Society seeks to maximize would expect the sub-groups to have a distribution of wlfare. An individual i produces value-added, X personality types among their populations which is when no personality type is favored above others. The significantly different from the distribution of same individual produces value-added (X, + Y)when personality types within the dominant group. The encouraged and value-added (X - Z) when cooptation by those whose personality fits comfort- discouraged. Value added Xi. Y, and Z are non- ably the accepted management/leadership model negative. emanating from the prevailing national culture of In a society that favors personality types closely others with similar traits would lead to substantial compatible to the prevalent national culture over under-representation of members of the culturally other personality types, welfare optimization is the different subgroups in the power spheres of business solution to: Life. Indeed, in the US. a notoriously pluralistic society, entire sub-groups (women, Afro-Americans, MAX E (x.+Y.} E (x-2} () native Americans, etc.) complain about the "glass ceiling" which keeps them from reaching their i=lop imp+1...n potential in business life. They complain of sexism and racism but are possibly just the victims of "cultural In a society that does not favor any one personality centrism" as are also, but less visibly so, those type over others, welfare optimization collapses box members of the dominant group whose personality traits brand them as misfits. Max E {x } (2) CULTURAL CENTRISM One might argue that if a management/ leadership model emanates from the national culture. The cooptation of individuals with certain management should indeed be recruited from among personality types over others leads to a higher welfare those with personality traits congruent with the level only if prevailing management paradigm because they correspond closest to the national cultural profile. (3) Such recruitment practices would guarantee smooth management and maximization of production Even AMERICAN BUSINESS REVIEW Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Clearly the relative magnitudes of Yi and Z are ity types by each other to the exclusion of others less important. They are unmeasurable and difficult to closely related to the prevailing national culture might manipulate even with applied psychology. But, p. happen in one society. This cooptation according to the proportion of citizens included in the accepted, cultural centrism is of great moment. It might bead valued group is a control variable for society. By unwittingly to gender and racial discrimination. it rejecting cultural centrism, by being flexible, accept- might lead to great personal unhappiness for those ing, nurturing, and open, society can make p very who do not fit the culturally acceptable mode, and it large, thus ensuring higher welfare. Note that the might lead to less than maximum welfare for society. easiest way to realize this would be to accept many Many questions remain unanswered that suggest management/leadership models within a society. avenues for further empirical research. This would allow many personality types to feel One qualitative conclusion seems to emerge. In a encouraged rather than discouraged. Note also that, in pluralistic society. the proportion of citizens who this simple little model, just accepting all personality belong to cultural subgroups significantly distinct types does not enhance welfare. What is needed is for from the mainstream national culture is large. By society to truly value many more personality types. If restricting itself to one accepted management/leader- society accepts more than one management ship model such a society risks alienating too many leadership model, or at least many flexible adapta- citizens to reach high welfare levels. This also suggests tions of a prevalent management/ leadership model that management fads that quickly pervade business some personality types incompatible with the main- reality throughout a society are a mistake. Manage- stream national culture but compatible with subgroup ment models designed in other parts of the world with cultures might come to feel valued and encouraged quite different national cultures might be actually while fewer would feel rejected and discouraged. harmful to welfare in the home country unless con siderable adaptations transform those models to fit the CONCLUSION home national culture. A pluralistic society wisely The realization that different personality types should work with a variety of adaptations of the one flourish in different national cultures, together with accepted management/leadership model or, better the insight that management/ leadership models are yet, should strive to make room for many different "culture bound", raises a concern. An insidious management/leadership model. cooptation in business management of like personal- ACKNOWLEDEMENT The author is thankful to Jack Scarborough for helpful comments and suggestions