What is the importance of understanding cultural value dimensions in businesses? Like other cultural systems, organizational culture controls the behavior, values, assumptions, and beliefs of organizational members. It is a combination of organizational members’ own beliefs and the values, beliefs, and assumptions of the organization. It is the role of the organizational leader, as a change agent, to help create a positive organizational culture that meets the demands of a competitive environment, board and shareholder expectations, and employee career satisfaction. Since the mid-1990s, the Global Leadership and Organizational Behavior Effectiveness (GLOBE)An international group of researchers and social scientists who study multicultural value dimensions, especially how those dimensions are expressed in different cultures. research of 62 societies has served as a significant study for understanding how cultural value dimensions are expressed in different cultures—whether societal or organizational. Knowledge and awareness of cultural values can enable leaders and managers to effectively manage and work through intercultural conflict and interactions. Over 17,000 managers from 951 organizations in 62 societies participated in focus groups, questionnaires, and interviews for this study.
The GLOBE study found that nine core dimensions of cultures exist in different societies. The first six dimensions in the chart below originated from the cultural value dimensions Geert Hofstede proposed in the 1980s. Table 2.4 "Cultural Dimensions as Researched in the GLOBE Study" lists other dimensions, as well as their definitions, as described in the GLOBE study. Based on the responses generated by the study and using other research, the GLOBE researchers grouped societies into regional clusters. The clusters were a way of creating meaning around societal views of culture and leadership. Each cluster had characteristics specific to their region, language, religion, history, and shared cultural understanding. Table 2.5 "GLOBE Clusters of Societies" and Table 2.6 "Clusters of Societies and their Cultural Value Dimensions" lists each cluster and the countries that were grouped into the clusters.
The findings of the GLOBE study served to help organizations and societies understand what made an effective or ineffective leader. Many leadership behaviors are similar across societies, pointing out that no matter the cultural difference or society in which a leader is from, there are specific leadership behaviors that are viewed as effective. The GLOBE project was significant in indicating how cultures perceive effective and ineffective leadership, which is helpful to leaders in facilitating intercultural interactions. The study revealed six global leadership behaviors, which were used in the study to understand how the clusters perceived leadership. These six are charismatic/value-based, team-oriented, participative, humane-oriented, autonomous, and self-protective. Using their understanding of leadership behaviors and perceptions of leadership from each cluster group, the researchers were able to identify a leadership profile for each cluster. Table 2.7 "GLOBE Study of Key Leadership Behaviors" and Table 2.8 "Leadership Behavior Profiles for Clusters" list the six leadership behaviors and their characteristics as well as the leadership profile for each cluster.
Table 2.4 Cultural Dimensions as Researched in the GLOBE Study
The study also highlighted the perceptions of cultures related to universally desirable and undesirable attributes in leaders. The desirable attributes were viewed as characteristics that were valued and that facilitated the leadership processes. Undesirable attributes were viewed as obstacles and challenges to effective leadership. Table 2.9 "List of Desirable and Undesirable Leadership Attributes from the GLOBE Research" illustrates the positive and negative attributes of effective leadership.
Table 2.5 GLOBE Clusters of Societies
Table 2.6 Clusters of Societies and their Cultural Value Dimensions
Table 2.7 GLOBE Study of Key Leadership Behaviors
Business leaders have tremendous power to change the organizational culture by utilizing several methods that address the underlying assumptions, beliefs, and values of its members; however, this is not an easy task. Culture, as explained, is oftentimes manifest in unconscious behaviors, values, and assumptions that develop over time and change as new employees enter an organization. The significance of the GLOBE study is that it helps leaders to understand the role of culture in leadership. By understanding one’s culture, as well as that of others, it brings you to awareness of different perceptions of leadership and how cultures come to understand leaders. Recognizing the elements in leadership and culture enables you to leverage the differences that cultures create and to use that to create positive intercultural growth.
Table 2.8 Leadership Behavior Profiles for Clusters
Table 2.9 List of Desirable and Undesirable Leadership Attributes from the GLOBE Research
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