Cultural Differences: Macro and Micro Leadership Style

Cultural Differences: Macro and Micro Leadership Style

William Smith

ORG 515 – Dynamics of Power in Organizations

Colorado State University – Global Campus

Dr. Jeffrey Zacko-Smith

December 13, 2015

Cultural Differences: Macro and Micro Leadership Style

Cultural differences often determine the style of leadership in global organizations. What may be an acceptable way to reward or punish an individual who works for a company in the United States could be the exact opposite for someone who works for the same company in India. Cultural differences are part of our world, and those cultural differences can influence the success or failure of global organizations. These differences in culture affect everyone equally, regardless of their position within the organization. Cultural differences are a key element in determining the organizations corporate culture. This paper will address the cultural differences of an organization that operates in two different countries, and how those differences affect its leadership style.

The company

The company selected for analysis in this paper is Federal Express (Fedex). Fedex is the largest express transportation shipping company in the world (Federal Express India, n.d.). Fedex currently operates in 215 different countries, and has offices in 365 airports globally (Federal Express India, n.d.). Fedex has 136,000 employees worldwide, and has a fleet 645 aircraft (Federal Express India, n.d.). The company was founded in 1973, and has its headquarters in Memphis, Tennessee (Federal Express India, n.d.). Fedex India began operating in 1997, and has ten flights from Mumbai to destinations in Europe and Asia. Fedex India, through an agreement with Prakash Airfreight Pvt. Ltd, is responsible for all the pick-up and delivery services within the entire country (Federal Express India, n.d.). Fedex India has expanded its services to include “customized packaging options for the fashion industry and on-line documentation support for fast-growing and export-oriented industries including automobiles, pharmaceuticals, leather, heavy engineering and gems and jewelry” (Federal Express India, n.d., para. 4).

Culture and leadership style of the United States

The culture and leadership style of the United States for decades has been dominated by white males, most often from privileged families. The United States in general places value on individuals who have or attain power and influence. Leadership styles generally fall into the categories of power distance, uncertainty avoidance, and individualism.

Power distance

Power distance is typically found in organizations that have decision structures that are centralized in nature, full of control structures, and vertical leadership styles (Alves, Lovelace, Manz, Matsypura, Toyasaki, and Ke, 2006). The United States has lower power distance than many other industrialized countries. Power distance is the distance from the highest level manager to the lowest level employee. Low power distance is more prevalent in the United States and in the organizations that conduct business there. Low power distance is found in organizations that have flat structures, openness, career satisfaction, and consultative horizontal styles of leadership (Alves, Lovelace, Manz, Matsypura, Toyasaki, and Ke, 2006). Examples of organizations that have low power distance Google and Apple. These companies are usually listed as the best places to work in America due to their high degree of job satisfaction.

Uncertainty avoidance

Uncertainty avoidance is a characteristic found in organizations that have a higher degree of control over their employees, and less confidence in their ability to lead (Alves, Lovelace, Manz, Matsypura, Toyasaki, and Ke, 2006). Their leadership styles are more vertical in nature. The United States has lower levels of uncertainty avoidance. Lower levels of uncertainty avoidance place higher values on innovation, job mobility, and flexibility. These traits are more indicative of individuals who are able to think outside of the box, and not follow the normal group mentality.

Individualism

Individualism is another trait typical of organizations operating in the United States. Individualism is characterized by self-motivation and individuals satisfying their own interests, rather than those people in a collective culture (Alves, Lovelace, Manz, Matsypura, Toyasaki, and