Online Journal for Workforce Education and Development Volume 6 Issue 1 – Spring 2013

ESSENTIAL SKILLS FOR LEADERSHIP EFFECTIVENESS IN DIVERSE

WORKPLACE DEVELOPMENT

Szu-Fang Chuang, Ph.D.

Fooyin University

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Introduction

The global market has created needs for international corporations. Global

leadership effectiveness has been a major issue in literature of world business, social

issues, human resource management and development, just to name a few (Caligiuri

& Tarique, 2012; Rockstuhl, Seiler, Ang, Dyne & Annen, 2011; Harteis, 2012). How

to perform global leadership efficiently in the increasingly tough global market is vital

to international business and workforce management.

Leadership is a key component of all organizations but its function and capacity

are getting more complicated with increased involvement in globalization and

technology development (Punnett, 2004). Technological advances extend the

possibility of global economy which has changed the way people do business and

communicate. Cross-cultural managers must look at the world change as a challenge

and an opportunity for organizational growth and individual development. In addition,

to cope with the changes, international business educators and facilitators need to

respond swiftly to the impacts of demographics, technology, and globalization in

order to offer specific job skill development on global leadership, work ethic, and

continuous learning (Aggarwa, 2011). As the demand of knowledge-based enterprises

rises, it is both employees’ and managers’ responsibilities to enhance the success of

workplace learning and workforce development (Harteis, 2012). Global leaders need

to build their interpersonal skills to deal with racial conflicts that have occurred and to

develop individuals and groups in the workplace (Byrd, 2007).

A successful international leader must know what leadership is expected and

execute it accordingly (Ulrich & Smallwood, 2012). Individuals with different

cultural backgrounds may vary in their conception and expectations of leadership.

Due to the largely Western and individualistic perspective on leadership, the extent to

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which Western leadership theories apply globally is being questioned. Japanese

leadership practice, for example, is different from the West by its cultural traditions

and business practices (Takahashi, Ishikawa & Kanai, 2012). To create a leadership

that lasts over time, global leaders must show expected competence in cross-cultural

awareness and practice. It is important they understand the significance of leadership

and leadership expectations, and to develop and sustain effective leadership strategies

for long-term change (Ulrich & Smallwood, 2012). Effective global leadership is a

key to unlock the mystery of working with diverse employees and bring the

organizational development and change to the next level.

Purpose of the Study

The importance of effective leadership in cross-cultural management has been

emphasized in the literature (Nguyen & Umemoto, 2009). Since globalization and

technology have been accelerating business changes and creating challenges, today’s

global leaders need to acquire a set of competencies that will enable them to

implement their vision and lead effectively. How to develop effective leaders with the

skills needed to adequately deal with organizational challenges has been a challenge

for all organizations (Amagoh, 2009). Global leaders must be equipped with the

leadership skills required in the multicultural workplace. In other words, important

leadership components and significant global leadership skills need to be identified to

enhance international leaders’ competitiveness and performance efficiency. Therefore,

the purposes of this study sought to: (a) examine the new look of leadership in diverse

workplace development and cross-cultural management, (b) identify challenges for

global leaders, and (c) identify essential leadership skills for success as a global leader

in this rapidly changing world.

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This study synthesized the literature findings in relation to both cross-cultural

management and international leadership as an initial effort toward identifying

essential leadership skills for global leaders to meet the challenges they face now and

in the future. In this study, diversity is defined as the differences among a group of

people in cultural background, ethnicity, religion, language, gender, age, and

occupation.

Leadership in Diverse Workplaces

In the competitive landscape of the 21 st Century, a sustainable advantage of

globalization depends on the skills and abilities of a leader who can manage diversity

and implement increasingly complex business strategies. Effective workforce

diversity management is a key to global business success (Okoro, 2012). In pursuit of

leadership effectiveness in today’s globalized world, cross-cultural leaders need to be

able to manage culturally diverse settings efficiently, known as a capability of cultural

intelligence or cultural quotient – CQ (Rockstuhl et al., 2011). Since CQ is

significantly related to individual international experiences (Lovvorn & Chen, 2011),

global leaders should be aware and appreciate the diversity they face in leadership

practices. The following phenomena are identified significantly challenging

international leadership practices in diverse workplaces.

Blended Organizational Culture

More managerial and professional positions are occupied by females, and more

diverse cultural groups, lifestyles, ages, and abilities are seen in the workplace (Carr-

Ruffino, 2005). A wide range of people brings different challenges and advantages in

terms of ideas, creativities, styles, and innovations into the workplace. In such

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blended organizational culture, any racism, sexism, or ageism can easily cause

organizational loss of innovative potential and failure in global market (Parvis, 2003).

Organizational culture affects business success (Khana & Afzalb, 2011). To enhance

organizational competitiveness and performance, core organizational values (e.g.,

performance excellence, innovation, social responsibility, worker involvement, and

quality of work life) should be emphasized (Khana & Afzalb, 2011). Effective global

leaders must increase their capabilities to manage the complexity of diverse people,

understand and respect differences, make necessary adjustment in the leadership, and

be ready for opportunities and challenges that come alone. As the leaders are the most

influential key to organizational performance, it is crucial for human resource

development professionals to support leaders to resolve racially diverse issues through

leadership development (Byrd, 2007).

Group Dynamic

Group dynamic plays an influential role in global leadership practice. Different

leadership styles and management approaches must be applied depending upon group

dynamics and circumstances (Punnett, 2004). A critique or judgment can significantly

affect individuals’ behavior and values when the environment is shaped by the same

group pattern or thought. In many cases, leadership is often influenced by the

perceptions of the peers, subordinates, and superiors (Heller, 1982). A number of

group dynamic processes of norms, roles, relations, and behaviors are normally

created to separate group members from others. Each of these group dynamics plays

an important role in shaping the global leadership with a strong impact on

organizational culture and climate. Group dynamic is the key for cultural innovation

(Ragir & Brooks, 2012). However, team size can affect group dynamic, as well as

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leadership. For instance, a formal or autocratic leadership is needed for direction

when the group size is large (Lussier, 2005). Dynamic cross-cultural competencies are

accordingly vital to global leaders and managers, which can be enhanced by

personality characteristics and cross-cultural experiences development (Caligiuri &

Tarique, 2012).

Gender Differences

Until recently, women were continually underrepresented in higher level

positions (Harris & Leberman, 2012). Genders are two different species in terms of

genetics, psychology, and work-related management (Morosini, 2005). Females tend

to hear what and how it is being said and exhibit greater levels of interest in

interpersonal relations; in contrast, males tend to hear only what has been said and

display greater levels of aggression (Morosini, 2005). Men are traditionally expected

to be an aggressive and tough leader while women are stereotyped as emotional and

insecure followers with the need of protection. Women tend to have different qualities

in their working styles, and such differences can contribute to preferable behavior,

thought and leadership; however, gender bias has interfered in obtaining their

leadership positions (Ely, Ibarra & Kolb, 2011; Vinnicombe & Singh, 2003). To solve

this problem, developing a women-only leadership program has been proposed and

used to assist women leaders toward senior leadership roles. For example, a national

New Zealand Women in Leadership Program has operated for five years, and the

program has been a success on individual and organizational levels to increase

participants’ self-confidence, networking skill, and opportunity for job promotion

(Harris & Leberman, 2012). As the number of working women continually increases,

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understanding gender stereotype can assist multicultural leaders to build positive

relationships and avoid biased management decisions (Carr-Ruffino, 2005).

Cultural Diversity

One significant variable that should be considered in leadership is cultural

context (Gutierrez, Spencer & Zhu, 2012). Work ethics, behaviors, communication

styles, and management-labor relationships are different from country to country.

Leadership competence is conceptualized differently in different countries (Kowske

& Anthony, 2007). In high context countries (e.g., Japan, China, and South Korea),

employees tend to prefer indirect messages and rely heavily on nonverbal codes;

however, employees from low context countries (e.g., Germany and Great Britain)

tend to communicate directly and construct more information in messages (Hackman

& Johnson, 2004). Since cooperative relationships are often observed in Asia

countries, most of the Asians tend to feel individual praising will influence group

harmony, and the manager should praise the entire group rather than one specific

group member (Lussier, 2005). In accordance with different cultural expectations,

different cultural groups have different expectations of leadership, and this can affect

the behaviors of employees and managers. It is critical that employees are aware of

their leaders’ appreciation for individual cultural differences without personal bias

(Nguyen & Umemoto, 2009). By doing so, the leaders can better fulfill their

responsibilities of creating a multi-cultural workplace and a strategic foresight of

organizational innovation.

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Challenges for Global Leaders

A more flexible relationship between global leaders and their followers is

essential in the workplace. Globalization, technologic innovation, demographic

changes bring a tremendous transformation into human life and work. For

organizations to remain competitive in the global market, a close emotional

interdependent link and an ongoing development of trust and loyalty between leaders

and followers must be established. A greater manager-employee relationship can

significantly influence members’ behaviors and increase the degree of their

commitment to the leader and the organization (Lussier, 2005). The relationship can

be enhanced by spending time together and considering the members’ needs,

expectations, and values. Global leaders cannot have an outstanding performance

without the ability to guide and influence employees to work toward the

organizational goals.

Technology plays a significant role in global policies, economics, and culture

and shapes the structure of the global system (Fritsch, 2011). Technological

advancement has not only saved time and money for a greater organizational profit

and a better quality of life but has also created a global village with shared regulation,

language, and values. The business and the nature of work are changed by technology

(Aggarwa, 2011). It makes distance learning and telework happen. Online learning is

a commonly used training strategy, and both web meeting and e-mail are must-have

tools for organizational communication. Virtual workforce, virtual organizations, and

e-leadership are also emerging from technology development. Different leading

approaches are thus required in the new virtual working environment (Wang, 2011).

However, it also creates problems of distance and disconnection on human relations.

As technology has made its progress and impact on global organizations, traditional

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leadership can no longer fully assist managers to lead the employees who work at

different places or nations. International organizations demand the cross-cultural

managers using appropriate leadership skills to inspire and influence diverse

employees. There is a strong consensus that acquisition of effective leadership skills

will bring the organization through global transformation chaos and contribute to a

sustainable advantage (Amagoh, 2009; Caligiuri & Tarique, 2012; Ulrich &

Smallwood, 2012).

Essential Leadership Skills for Success as a Global Leader

Global leaders should understand globalization has differing effects on

countries and people (Swanson & Holton, 2009). Since global leaders’ job functions

and responsibilities are more complex and difficult than before, a future-oriented and

flexible leadership style is required. Organizations need specific leadership

development approaches for effective leadership and organizational performance

(Amagoh, 2009). To keep pace with the rapidly changing environment, leaders need

more interpersonal skills to meet current and future challenges. The following are

essential leadership skills that global leaders should possess:

1. Develop Self-Awareness

Identify self-strengths and -weakness. Global leaders need to conduct a self-

awareness test or assessment to identify self-strengths and -weaknesses (Dubrin,

2004). It is important for the leaders to understand their individual reactions to

situations and approaches to decision-making. Knowing self-limitations (i.e.,

strengths and weaknesses) and behavioral patterns can help the leaders perform more

effectively in cross-cultural settings (Frost & Walker, 2007). Being able to overcome

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stereotypes and capitalize on one’s advantages are keys to global leadership practice.

To further benefit from identifying self-limitations, leaders may use results to

structure a unique and personalized leadership style. For example, female leaders

might use empathy and collaboration as their leadership traits since they tend to work

best in a cooperative relationship that brings great voices into the workplace and

consequently increases the team work quality and performance outcome.

Appreciate individual differences. Global leaders face a tremendously

complex, multicultural world which requires appreciation of individual uniqueness

(Holt & Seki, 2012). Each individual has particular behaviors that are shaped by

cultural background, life experiences, and values. To better understand cross-cultural

issues, international leaders should learn each employee’s demographics and

appreciate the diversely valuable inputs they bring into the workplace (Parvis, 2003).

Close the cultural gap by looking at similarities. Focusing on differences

between oneself and others is not an absolute means to solve interpersonal problems.

Kowske and Anthony (2007) identified that leadership competence is conceptualized

similarly when individuals have similar geographical regional backgrounds (e.g.,

Anglo and Latin American). Looking at similarities (also commonalities) rather than

differences in people can be a good approach in assisting global leaders to

communicate and lead more effectively (Cranford & Glover, 2007). Leaders can thus

build relationships and close the cultural gap within a group.

2. Understand Cultural Stereotypes

Avoid stereotyping and personal biases. Global leaders need to understand

local culture, stand in the employees’ shoes, and be open minded to differences (Frost

& Walker, 2007). Understanding cultural stereotyping helps leaders overcome

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personal bias and value others in a diverse workplace. Personal biases against

foreigners or people who are different from oneself can cause failures in finding

qualified employees and building employees’ trust, as well as their commitment and

productivity (Dubrin, 2004). It is important for leaders to be objective in leadership

practice without making assumptions. Leaders also need to lead by example to let

employees believe ethical behaviors (e.g. respecting the difference of others and

avoiding personal bias) are seriously emphasized in the organization (Roy, 2012).

Through cultural awareness and sensitivity, organizations can then have a better

chance of success in global competition and adequate return on investments (Okoro,

2012).

Lead people with respect. A key for employees to achieve their full potential

is to treat them with respect (Choan, 2003). Respecting every individual is a key

principle of effective leadership that incorporates other aspects of morality. People

have different expectations of how they like to be treated based on their cultural

backgrounds and values. By respecting individual character traits and unique

attributes, global leaders can avoid cultural stereotypes and unleash the full potential

of workers in a diverse workplace.

3. Increase Self-Assurance

Understand competitors. A true leader must cultivate his or her capability and

self-assurance to assist employees build confidence and enthusiasm (Weiss, 2004). To

increase leaders’ self-assurance, one can begin with understanding the competitors.

Studying competitors’ culture, business strategy, organization performance, etc. can

enhance leaders’ competitiveness in the global market and increase organizational

outcomes. It is also important for leaders to extend the knowledge of international

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business and strengthen technical skills in management and leadership practice.

Stay one step ahead of the game and be enthusiastic to challenges. Effective

global leaders need to be results-oriented, achievement driven and forward thinking

(Gutierrez, Spencer, & Zhu, 2012). They must have the ability to quickly respond to

problems and make proper decisions from divergent aspects (Rausch, Halfhill,

Sherman & Washbush, 2001). They also need to be able to identify opportunities

swiftly and be capable of turning challenges into opportunities. Most importantly,

global leadership is about initiative, trustworthiness, integrity, and enthusiasm of

performance (Flaum, 2002).

4. Look at a Bigger Picture

An outstanding cross-cultural leader thinks globally and leads locally (Gutierrez,

Spencer & Zhu, 2012). Global leaders should not microprint the world market and

satisfy what had already been done. It’s necessary for the leaders to step back and

look at a bigger picture to find out what is currently going on and anticipate future

challenges. They must look at the challenges as a lifelong endeavor and an

opportunity for organizational and individual growth. From a global perspective to

evaluate and predict future challenges, leaders need to look beyond the current

situation and think outside of the box by continuous learning and self-development to

overcome traditional thinking, using multiple senses when seeking solutions, and

staying alert to opportunities (Dubrin, 2004).

5. Create a Vision and Be Able to Sell It

A vision must be realistic, match with environmental challenges in the future and

value the organization, stakeholder, and customers as a whole. To create a vision and

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bring the organization to the next level, global leaders must have the abilities to

recognize and connect global trends with organizational development plans (Lussier,

2005). Leaders must be able to create a vision for how to effect positive changes that

fit organizational goals and global trends. Most importantly, leaders need to be able to

sell their vision to employees by effectively communicating with employees, getting

employees’ buy-in, and influencing employees to work toward the vision (Cranford &

Glover, 2007).

6. Develop a Global Mindset

It is critical for global leaders to enrich his or her cultural intelligence (Lovvorn

& Chen, 2011). By doing so, their international experience can be transformed into a

global mindset (Lovvorn & Chen, 2011). A global mindset is one special trait of

international leadership which is associated with trust, manager-employee relationship,

and organizational commitment (Story & Barbuto, 2011). The development of a

global mindset also involves cultural intelligence and global business orientation

(Story & Barbuto, 2011). Effective global leaders tend to have mental models that

offer valid ways of viewing and handling the complex issues in leadership practice

(Johnson, 2008). Leaders need to be open-minded, think globally and act swiftly to

maintain their competitiveness in multicultural organizations and global markets.

Additionally, leaders could also engage transformative learning in leadership

development that focuses on not only critically reflecting on individual behaviors and

assumptions but also effectively creating means of understanding and acting upon the

environment (Johnson, 2008).

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7. Gain and Offer Supports

Gain ongoing support from all levels of the organization. It is often an issue

of gaining ongoing support from subordinates and superiors when the global leaders

are enthusiastic to form or interlock changes for organizational development. Leaders

must develop a support system – a network tactic for developing teamwork and

leadership successions (Lussier, 2005). Being more visible and accessible to

employees can enhance the manager-employee relationship, create a positive

organizational climate, and increase overall productivity.

Provide supports to people and organizations. Global leaders should also

learn to offer their support to employees especially during the period of organizational

change. Collaboration and exchange of information and creative ideas are encouraged

to promote an innovative, open and supportive working environment that is necessary

for leadership effectiveness (Dubrin, 2004; Roy, 2012).

8. Build Effective Communication Skills

Develop verbal communication skills. Global leaders also need cross-cultural

negotiation skills to maintain international competitiveness (Okoro, 2012). They need

to be able to ask questions and exchange messages effectively because diverse

personalities and characteristics can easily cause misunderstanding and

misinterpretations. Words and tone must be used carefully in order to deliver the

message accurately while maintaining a good relationship. Thus, global leaders are

recommended to receive training in interpersonal relationship and group

communication competence (Okoro, 2012).

Develop nonverbal communication skills. Actions speak louder than words.

The global managers must be cognizant of their nonverbal language and be aware of

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acceptable behaviors, as well as restrict behaviors, in different cultures. For example,

when a Japanese businessperson gives a gift, it normally means a gift to welcome or

for appreciation rather than a bribe; similarly, returning a gift is considered polite

(Lussier, 2005). In some cultures, such as Brazil, kisses and hugs are the norm of

greeting while other countries, such as China, nodding heads and smiling or shaking

hands are used for greeting. Because of cultural differences, people have various

perceptions of personal space, touching, eye contact, etc. Global leaders need to fully

understand what these nonverbal behaviors are and the messages they represent.

View each communication as an opportunity to sell a vision and develop a

relationship. Both verbal and nonverbal communication skills are applied in

leadership practices. Note that open and honest communications can build a solid

connection between the leader and followers, as well as develop respect and trust in

the leadership (Mendez-Russell, 2001). Effective communications can construct the

leader’s credibility and increase employees’ commitment and loyalty to the leader and

the organization (Choan, 2003). Therefore, every communication opportunity should

be treated as an opportunity to sell the leader’s vision and to enhance relationship with

employees.

9. Search For and Utilize Available Resources

The current technologically explosive era creates a global village where people

work together without geographic and psychological boundaries. The fast-growing

technology development not only helps the organization increase its production and

profit but also assists leaders enhance efficiency of team work and activities (Dubrin,

2004). Abilities to use innovative technology products (e.g., video conferencing,

instant messaging, e-mail, etc.) are important technical skills to promote global

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leaders’ interpersonal skills and international leadership practices (Roy, 2012). In

addition, extant scholarly research provides useful and effective theories,

experimental findings, and frameworks such as leadership theories and strategic

approaches that can be adopted and utilized to increase the effectiveness of leadership

practices in the field (Swanson & Holton, 2009). Leaders could acquire valuable

information from literature and adjust their leadership styles or strategies to better fit

for the organizational needs and future challenges.

However, because of advanced technology, people do not have as much as face-

to-face interactions as formerly. Limited physical contact challenges global leaders to

lead and influence those off-workplace employees. To solve technological

disadvantages in leadership practices, leaders may overcome the barriers via different

leadership approaches and management policies. Moreover, because of increased

numbers of multinational companies and increased interdependences of nations, there

is no generally accepted theory of cross-culture leadership (Punnett & Shenkar, 2004).

Global leaders must carefully use the available leadership theories or models because

what is applicable and successful in one country may

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