Influence of cross-cultural leadership on organizational culture: Arcelormittal, Newcastle, a South African perspective

Abstract

The aim of this research was to determine the influence of cross cultural leadership on organisational culture. This is assessed by using the GLOBE project’s dimensions of culture which are an extension to Hofstede model of culture. These are; power distance, uncertainty avoidance, human orientation, individuality vs. collectivism, egalitarianism, assertiveness, long term orientation and performance orientation. As more organisations in South Africa become more culturally diverse, it is important to determine where the organisational culture stems from? This is essential in addressing cross cultural conflicts and in efforts to create a winning culture in the workplace. The case study involves Arcelormittal South Africa (AMSA), and will hopefully contribute positively in identifying salient cultural implications in managerial positions such as for example, high employee turnover and cultural clashes which hinder individual performance. A qualitative research design was used in this study to determine participants’ perspectives on organisational culture and leadership. Two instruments were used for primary data collection in this research. The first one was designed by the researcher to capture the demographics data for this particular study. The second instrument used was the GLOBE survey questionnaire which captured 8 dimensions of culture and was specifically designed to encompass questions relevant to the business environment. A convenience sampling methodology was used with a target population of 115 managers classified as middle management of AMSA.

The research revealed that there is a general shift from a Eurocentric approach to leadership which is congruent with high individualism and low human orientation. The influence of cross cultural leadership is thus indicated by the preference for higher degree of human orientation and collectivism amongst managers, which is associated with the Afrocentric leadership style and the black ethnic group. The higher degree of uncertainty avoidance can be attributed to the continued dominance of white managers (58%) in AMSA’s management (Booysen: 2001). The other ethnic groups consist of Africans (15%), Indians (27%) and virtually no Coloured representation.