Intercultural Leadership and Communication in Global Business

Author A. Abyad, MD, MPH, MBA, AGSF, AFCHSE
CEO/General Manager, Social Services Association
Dean, Multi Media Medical University
Chairman, Middle-East Academy for Medicine of Aging
President, Middle East Association on Age & Alzheimer's
Coordinator, Middle-East Primary Care Research Network
Coordinator, Middle-East Network on Aging
Editor, World Family Medicine Journal
Editor, Middle-East Journal of Age & Aging
Editor, Middle-East Journal of Nursing

Correspondence:
Abyad Medical Center http://www.amclb.com
Azmi Street, Abdo Center, P.O. Box 618
Tripoli- Lebanon
Tel & Fax: 961- 6- 443684
Mobile: 961- 3- 201901

Background

It is difficult today to utilize the word "globalization" without a definite implication of sarcasm, the world appears more disjointed, more at odds, than at any time since, certainly, World War II. On the other hand despite the political divisions, business operations go on to bridge the globe, and executives nevertheless have to figure out how to manage them competently.
Today's leader confronts a multitude of challenges. The business environment is multifaceted and swiftly shifting. Global influences influence organizations while, at the same time, the consequences of organizational decisions heave outward in their own ever-widening circles of influence.

The job of a leader, in the past was rather well defined. Organizations were hierarchical structures that employed a top down, command and control form of leadership to achieve their mission. This meant habitually a stern focus on enhancing an organization's financial "bottom line". Less concentration was paid to the "how" of leadership or to the capacity to make a positive difference in the world through one's work.

Despite the fact that these conventional styles of leadership are still pertinent today, they are progressively more insufficient to meet the ever-growing complexity of the challenge. More and more, leadership is a mutual undertaking, one that calls for interweaving skills and traits that are both personal and professional. This embraces the ability to foresee positive change, convey mission and direction, call forth motivation and cooperation, respect diversity and different perspectives, and promote both individuality and unity.

Business leadership

Business leadership in a global company has very definite challenges. In new markets, predominantly new international markets, there is a superseding imperative to develop strategic alliances and partnerships. Whether due to the need to gain distribution in a foreign environment, to gain lower cost production through scale, or to find the way through the regulatory environment of foreign countries; the skill to build associations and business partnerships is an answer to successful business leadership in new markets.
A second requirement correlates with company structure and organisational dynamics. It is not adequate, and indeed it possibly will be counter-productive, to simply mirror the head office structure in promising markets. The most thriving businesses in new markets are accommodating and sympathetic. The lack of critical mass and the geographic diffusion of operations necessitate a high degree of vagueness in terms of roles and reporting lines. In this condition, it is critical that there are helpful relations between the new, evolving business and head office. Inexorably, this requires regular communication and a lot of travel.

Dealing with diversity

"Diversity represents a company's fundamental attitude that it not only respects and values the individuality of its employees but also understands how to tap the potentially significant contributions inherent in diversity."⁽¹⁾
The concept of workplace diversity from compliance to inclusion, is evolving. As envisaged in the landmark study Workforce 2020, rapid technological change, globalization, the demand for skills and education, an aging workforce and greater ethnic diversification in the labor market have perpetually distorted the employment landscape. The definition of diversity stretches well away from the customary view that once focused mainly on gender and race and mirrors the broader perspective of workplace diversity today.

Giving feedback

Feedback is a significant communication tool that may enhance the way we work with one another. Developing the skills to give and receive feedback can help us become more successful in our daily lives. It is a critical part of our communication process. Without feedback we don't know when we've done something well or could perhaps improve upon something. Many people find it much easier to give feedback when it is positive than when it is negative. Both positive and negative feedback is helpful since it helps us become aware of ourselves, to determine the consequences of our actions and to change or modify our behavior. Giving and receiving feedback are competencies that can be learned and once performed can be tremendously helpful⁽²⁾.

Feedback is a form of communication that we give or get. Sometimes, feedback is called "criticism," but this badly restricts its value. Feedback is a method to let people understand how successful they are in what they are trying to achieve, or how they influence you. It offers a way for people to learn how they affect the world around them, and it helps us to become more effective⁽³⁾.

The other end of feedback is giving it. Some people convey feedback with pleasure, after all, it's easier to give advice than take it. Some use feedback as a weapon, or offer it as tit-for-tat. For others, feedback is a great way to be judgmental⁽³⁾. How you give feedback is as vital as how you accept it, because it can be experienced in a very negative way. To be effective you must be tuned in, responsive, and honest when giving feedback. Just as there are positive and negative approaches to accepting feedback, so too are there unsuccessful and successful ways to give it⁽⁴⁾.

Handling conflicts

Conflict is a mental and/or physical disagreement in which people's values or needs are in opposition to each other or they think that they are opposed. Some peace-makers and teams concentrate on spotting areas in which conflict looks likely to break out, and then monitoring them closely. At the same time they help the conflicting sides to work out their disputes without use of violence. Conflict is inevitable, natural, and even healthy! What is unhealthy is unresolved conflict allowed to fester and become a sore in the side of an otherwise productive team. Conflict can be both within and outside the team, but in both cases it is to be resolved productively.

Reacting to mobbing
In the present circumstances of the sustained global economic crisis, "mobbing" - or workplace bullying and harassment - is becoming a common phenomenon. Often this "mobbing" happens vertically, from high-level employees to those who work under them. Ridiculing, ignoring, threats, and reducing earnings are all forms of mobbing. Evidence shows that "mobbers" (those who mistreat their colleagues) are usually not conscious of what they do. In EU countries, mobbing is ranked as the fourth most frequent risk in the workplace, and in the US and UK, one in every eight workers is subjected to mobbing.

The expression 'mobbing', which includes workplace terrorizing, pressure, frightening, belittling and psycho-terror, is described as the presence of systematic, directed, unethical communication and antagonistic behaviour by one or more individuals. These measures that happen regularly and carry on for a long time are the most significant and effective causes of workplace stress. The person who is the target of the mobbing is left without help, without protection and alone in the workplace. Individuals who are exposed to psychological abuse experience physiological, psychological and social problems that are related to high levels of stress and anxiety.

Mobbing behaviours in the workplace have to be defined, and suitable policies, and procedures need to be developed and shared with all employees to thwart the growth of these behaviours. In addition, managers must assume an open managerial approach to prevent the development of these behaviours. In order to fight this inclination companies need to stop overlooking its presence, and encourage a culture where this sort of behavior is not accepted.

Historical Roots of Globalization

Globalization has a homogenizing effect on various national cultures. Its powers lead societies to turn out to be more alike, converging in business approaches, political and economic systems, and even artistic attitudes. The consequences of convergence can be challenging for people and countries to support though, and over time can escalate into an anti- globalization backlash. Globalization today confront a legitimacy crisis that has been unfolding for the past decade, a result chiefly of financial system convergence.

The support of globalization over recent decades has led to the anticipation that cultural differences in business practice-how firms work, how rules are decoded and enforced, would wash away over time. Cultures and nations' unique brands of capitalism would become homogenized as the world became one large global market. That is a prospect with some truth to it, but societies rarely desire to pay the price of convergence for the market benefits of globalization.

Globalization will certainly last but there will be bumps along the road. In today's vibrant world, thriving organizations have to persistently transform themselves. There will be challengers to globalization, some of them protesting to the homogeneity it generates and on some occasions regionalization or localization may truly be a preferable option.

One's point of view on globalization is centered on the map that is used. There is not one map of the world, but several maps, each of which reveals a distinct story. There are geographic maps, that show land mass; maps that show the populations of each country; and maps that show relative GDPs (which show that wealth is not synonymous with population). But possibly the maps that best demonstrate globalization are those that reveal transport lanes-through which physical goods flow around the world-and maps of submarine cables, through which information flows. It is the network of transport lanes and cables that genuinely connects the world.

Cross-Cultural Communication

However, changes and advancements in economic relationships, political systems, and technological options began to break down old cultural barriers. Business changed from individual-country capitalism to global capitalism. Thus, the study of cross-cultural communication was formerly found within businesses and the government both seeking to expand globally⁽⁶⁾. Cross-cultural communication, as in many scholarly fields, is an amalgamation of many other fields. These fields embrace anthropology, cultural studies, psychology and communication.

Communication underlies the effectiveness of coordinating exchange activities, building strong relationships, which result in enhanced performance. It presumes that there is a particular cultural framework that permits "translation" of the meaning embedded within communication by the recipient to maintain the true purpose of the communication⁽⁷⁾. The adequate, or lack thereof, of organizational culture also has a direct effect on international business communication effectiveness⁽⁸⁾. Organizational culture is a combination of the national culture and the backgrounds of individuals assembled in the organizational setting⁽⁹⁾. Differences in organizational cultures may lead to miscommunications and the deterioration of joint efforts⁽¹⁰⁾.

To help managers in developing successful strategies to conquer international communication challenges, a practical model of communication effectiveness was developed. Theory and practice point out that similarity or fit, of relevant appropriate, structural, and or strategic factors capitalize on efficiencies of operation. As communication is established in particular cultural frameworks permitting for the "translation" of the meaning by the recipient to maintain the true intent of the message, the fit, or lack thereof, of such frameworks creates a possible impediment to developing effective international relationships. For example, when business partners originate from different cultures (both national and organizational), the original cultural inconsistencies in communication strategies may cause barriers to the development of effective global business relationships. However, national and organizational hurdles to communication may be lessened through the employment of managers with particular communication competencies who can work toward the development of exclusive communication environments within each relationship building relational excellence and enhancing performance.

Communication proficiency is a series of skills and knowledge linked to communication that permits an individual to connect in appropriate / meaningful communication with international partners^(7,11). Communication competence may fluctuate by cultural distance, frequency, and usefulness of past interactions, the level of global experience of a manager, as well as the learning milieu of the organization⁽⁷⁾.

Cognitive competence refers to an individual's capability to establish connotation from verbal and nonverbal language⁽¹²⁾. Competencies transmit the psychological concepts rooted in an individual's values that affect their ability to accurately decode a partner's message^(7,13). An individual's cognitive competencies allow him/her to amend successfully to communication differences in extremely diverse environments. Affective competence connects to an individual's emotional inclinations in relation to communications^(7,12). An individual's observance of embedded meanings influence his/her attitudinal response to culturally diverse communications.

Behavioral competence refers to an individual's elasticity and inventiveness in reaction encounters⁽⁷⁾. The field of behavioral competencies encompasses behavioral flexibility, communication authenticity, message, and behavioral complexity, interaction management, etc.^(7,12). A manager's behavioral competencies allow him/her to connect in significant interactions with those of many cultures.

As no two national or organizational cultures are alike intrinsic variations dictate a negotiation of communication and cultural protocols for the development of a common communication environment⁽⁷⁾. Casmir⁽¹⁴⁾ points out that communication protocols, appropriateness of strategies, monitoring, and communication feedback mechanisms are all vigorously attuned for engaging communication to happen, therefore suggesting not only communication interaction, but also cultural interaction. Cultural interaction, i.e., amendments over time to a firm's cultural protocols, results from the communication encounter that puts forward new cultural norms that can be markedly discriminated from each firm's initial organizational and national culture, such as orientation toward time, uncertainty and relational norms (e.g., solidarity, information exchange, flexibility)⁽¹⁴⁾.

The contest is that even with all the virtuous will in the world, miscommunication is expected to happen, particularly when there are major cultural divergences between communicators. Miscommunication can lead to conflict, or aggravate conflict that previously exists. We make, whether it is clear to us or not, quite different meaning of the world, our places in it, and our relationships with others. A culturally-fluent approach to conflict means working over time to understand these and other ways communication varies across cultures, and applying these understandings in order to enhance relationships across differences⁽¹⁵⁾.

Intercultural communication is of significance to international businesses as it scrutinizes how people from different cultures, beliefs and religions come jointly to work and communicate with each other. Demands for intercultural communication skills are escalating as more and more businesses go global or international. They recognize that there are obstacles and restrictions when entering a foreign territory. Without the help of intercultural communication they can accidentally produce perplexity and misunderstandings. For these intercultural businesses to break the cultural barriers encountered when moving into foreign grounds it is critical for them to completely grasp the cultural differences that exist so as to avoid destroying business affairs due to intercultural communication divergences.

Leveraging the Power of Diversity for Competitive Advantage

The cooperation of cultures, ideas and different perceptions is now judged an organizational asset-bringing onward greater creativity and innovation, with the consequence that many companies are more and more focusing on corporate diversity schemes to enhance organizational performance⁽¹⁶⁾.

More and more, the case for workplace diversity as a business essential is gaining appreciation by leaders in the business world. 400 executives agreed that "diversity programs help to guarantee the creation, management, valuing and leveraging of a diverse workforce that will lead to organizational effectiveness and continuous competitiveness"⁽¹⁷⁾.

The stream of information between colleagues, work teams, customers and suppliers, for example, depends on the quality of relationships and talent in the workplace⁽¹⁸⁾. Accordingly workplace diversity is ever more seen as a crucial success factor to be competitive in today's marketplace.

Firms are gradually more sensitive to the impact of diversity programs on organizational effectiveness. HR professionals from companies on Fortune's list of Top 100 Companies to Work For state that diversity initiatives grant organizations with a competitive advantage by positive improvements in corporate culture, employee morale, retention and recruitment⁽¹⁹⁾.

The significance of positive community relations also demonstrates the link between workplace diversity and the business case. When organizations widen external partnerships with minority communities and suppliers, for example, this may lead to good will and a reputation as an "employer of choice"⁽²⁰⁾. When employees are satisfied with their organization for its aids and links to the community, they are more faithful to their employer and more likely to brag about their company to family and friends. The effect is lower turnover and a positive employer brand that better draws the best talent in the marketplace⁽²¹⁾.
Visibility, communication and accountability are the secret to realizing a competitive diverse workforce. A recent study on what makes and breaks diversity initiatives found three important points of leadership: 1) accountability; 2) a passion for diversity; and 3) sustained involvement. Obvious commitment throughout the organization is vital: adding diversity on the agenda at executive meetings and company conferences, appointing diversity candidates to top positions, and assigning apparent tasks and responsibilities to the senior management team concerning diversity management. Responsibility generates continued participation, that is, holding managers responsible to bring diversity results. Participation in diversity councils is suggested as a development path for senior leadership^(21,22).

At the level of board of directors, the business case for diversity should be there. The momentum to change the board composition is a direct result of the trend toward corporate governance and diversity of the workforce, customer base and other stakeholders. Organizations want a wider choice of leadership skills, work styles, point of view and expertise, as well as improved representation of women and minorities among board directors⁽²³⁾.

The term "diversity" has classically referred to women and minorities. Today, however, employers are starting to formally recognize other employees as well (e.g., ethnic groups, people with disabilities and self-identified gay, lesbian and bisexual persons)⁽²⁴⁾.
Diverse groups have distinctive needs, and they want their needs acknowledged and met.

Recognition of different needs produces superior employee satisfaction, employer loyalty and, in turn, lower turnover and greater productivity⁽²⁵⁾. Within workplace diversity, one of the least talked about minority groups is people with disabilities. This group is a source of under-represented talent in the workplace. One study reveals that in the majority of companies, individuals with disabilities comprise less than 10% of their total workforce. The study recommends top management lead by example and hire qualified individuals with disabilities on their staff. Through training and focus groups, HR leaders can enhance sensitivity toward employees with disabilities⁽²⁶⁾.

Leadership In Global Environment

The main qualities that leaders need consist of vision, integrity, decisiveness, accountability, great communication skills, and a talent to motivate others. For companies, becoming more global means segmenting the world differently, not just by size of population or income. At GE, where 60% of its 2008 revenues will come from outside the United States, the company segments countries as resource rich, people-driven rich, and Leadership for the 21st Century October 13, 2008 technology and education rich.

Leadership involves painting a vision of where you want to go, instituting priorities for getting there, building the right team, aligning the organization, and holding people accountable for results. It also needs an ability to communicate effectively so that everyone is on the same page. In addition, effective leaders induce cultures where mistakes are acceptable.

The basics of leadership haven't altered much over the last 100 years. Leadership is about acting with integrity, convincing others to follow (because they want to, not because they have to), giving rise to a culture of openness, having discipline, communicating clearly, and forging relationships built on mutual confidence.

Leaders concentrate on the basics, prioritize, create a sense of urgency, make decisions, and act. While the central part of leadership doesn't change, the tools of leadership and the techniques for training leaders can change.

The main aspects of leadership have remained largely unchanged over the past 100 years. Harvard Business School's first dean described leadership as courage, judgment, character, and an ability to get things done. Not much has changed in the past 100 years; the same qualities still ring true.

Being the boss does not equate with being a leader. "Boss" is about authority, title, or position, but "leader" is about behavior. True leaders use soft power, not hard power. Hard power is what comes via authority and includes power in the form of rewards (such as compensation and bonus) and penalties. Soft power is where a leader is followed because a person wants to follow. Soft power is far more effective.

Leaders should build interactions that involve strong mutual confidence. When supervisors delineate "expectations," they are telling people what they want them to do. More effective is when a leader is able to forge a relationship with mutual confidence; the leader is convinced in the follower and the follower is confident in the leader. Such confidence-based relationships are far more successful.

"The first challenge of leadership is to win the confidence of followers." Leaders build trust. Leadership involves taking very conscious actions intended to increase trust with all stakeholders. Trust isn't built in one day, and is surely not created in the middle of a crisis; it is built over a long period of time.

The leaders of today's organisations and businesses need to be skilled at managing people of different cultures. They need to be talented to grasp the spirit of each culture quickly, because culture is so important in determining customer or employee behaviour. Leaders have to learn to shape culture (at least that in their own organisations) so that it is positive, and aligned with the direction the organization is taking.

In the past, global leaders were merely those individuals sent abroad on foreign assignments. However, today it can be any manager or executive, anywhere in an organisation - people in accounts, sales, marketing as well as production and support staff. It can signify different things for different organisations. It could be a delegate office abroad or the acquisition of a foreign company or a joint venture etc. The possibilities are almost endless.

Whether for job effectiveness, career development, or for personal growth, it is no longer enough for professionals to be culturally "aware" that differences exist. They must develop their own set of behavioral competencies allowing them to take suitable actions in a different cultural context. Cultural behavioral-based competency skills coaching does not need the individual deserting their traditional values and norms, rather it permits the person to better relate to others and promote successful intercultural outcomes.

Without a developed set of culturally relevant behavioral skills to successfully work and understand their international counterparts, leaders often "hit the wall," failing to bridge the cultural divide that affects decision-making, communication, risk taking etc.

The dynamics of being a successful Global Leader needs a skill set of important competencies that differ markedly from the domestic leader. These "global behavioral competencies" allow leaders to handle a wide range of challenges, including: distance management issues, how to lead a diverse multinational team, implementation of new initiatives, and faultless integration of different teams and organizations etc.

Each diverse work team is comprised of individuals from a particular culture. However, once the team is created the team builds up its own culture. The team's culture is within the culture of the office, which is within the culture of the department, which is within the culture of the organization, which is within the culture of the host country and also the country where the head office is situated. The Team Leader needs to be skilled in how to use the behavioral-based coaching model to ascertain a common set of values and how to elucidate the
assumptions and beliefs shared by team members that affects their business goals.

Conclusion

In conclusion, business leadership in the framework of an internationalising company generates extraordinary strains in terms of communicating the corporation's shared values and strategy. The successful business leader has a nearly evangelical task. He or she has to instill the local management team with the corporation's vision and culture or else the company will never be institutionalised in the local market and, long term, will most likely fail.

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