Leadership & Culture In 2008, Clipper Corporation was a privately held, business that had been in business for

14 years and generated roughly $30 million in revenue. The company was started and led by its President and Chief Executive Officer who immigrated to the United States from China just two years prior to establishing the company in 1994. The chief executive officer was the face of the company but was not truly involved in the companys day-to-day operations. Day-to-day operations were managed entirely by the executive management team consisting of a Controller, Sales Director, Operations Director, and Vice President. These four individuals operated fairly autonomously, with very little guidance or support from the chief executive who did care how directives were achieved as long as they were achieved. There was no personal interaction or communication between the CEO and non-executive staff; lower level employees communicated directly with their immediate managers and the CEO communicated directly only with the executive team. Further, the company lacked a formalized vision or mission and no clearly defined company objectives. From an organizational culture standpoint, long working hours were a rule, not an exception. It was not uncommon for managers and executives to work in excess of ten to twelve hours daily having lunch at their desks or skipping lunch altogether in order to complete projects. Management team meetings were held afterhours so as not interfere with business operations. The culture was one where executives, management, and staff, alike, felt overworked and undervalued. Executive leadership was unable to work collaboratively and productively which lead to a general lack of distrust among management and caused an inter-departmental divides and strained working relationships. The company, although still profitable, was also seeing its profit margins shrink.

All of the aforementioned behaviors are, by all means, indicative of negative leadership behavior. Howard (2005) defines leadership as the process of communication (verbal & nonverbal) that involves coaching, motivating/inspiring, directing/ guiding, and supporting/counseling others (p. 385). The chief executive maintained a rather passive in her approach to leadership by allowing her executive team to manage company operations. She directed, yet she did not motivate, inspire, guide, support or counsel, as required by Howards definition. In regard to the lack of clearly defined company objectives and the lack of a formalized mission or vision, Clark (2010) writes that Good organizations convey a strong vision of where they will be in the future (Clark, 2010). Clipper Corporations chief executive clearly fails the vision test as well. Although there are several negative behaviors to be addressed within Clipper Corporation; however, these behaviors all have a single underlying cause the failure to understand and embrace the cultural diversity within the organization. Clipper Corporations chief executives leadership style is based upon Chinese cultural values which are vastly different than American leadership values. Rarick (2007) explains that China is a collectivist society and American culture is more individualistic (p. 23). Also, Chinese culture is high context where communication involves more than verbal or written words. American communication is low context where the written word is the most important. Chinese culture is also very tradition-based whereas American culture focuses more on the present and future. These cultural differences translate directly to differences in leadership style as well as subordinate expectations. Thus, the behaviors displayed by Clippers CEO, are extremely negative from an American leadership perspective; however, that leadership style is quite common within Chinese culture. In fact, Steers, Sanchez-Runde and Nardon found that when

leaders of American and other Western organizations have interactions with Chinese organizational they are often under the impression that Chinese leaders refuse to act decisively, fail to respond candidly, are ambiguous about their goals and objectives (Steers, Sanchez-Runde & Nardon, p. 431). Clipper Corporation also did not have clearly defined goals and objectives. This is attributed to the preference within Chinese culture to focus on the potential of individual situations and the dynamics that each situation affords as opposed to the American tendency to establish a specific set of objectives (Steers, Sanchez-Runde & Nardon, p. 432). Chinese leadership principles have a strong basis in Confucius teachings. According to Rarick, Confucius proposed a strong social hierarchy based upon position. . .Rank and hierarchy are important aspects of Chinese organizations. In a typical Chinese organization, decisions are made by the leaders at the top of the organization and everyone is expected to carry out the directives without question. Employees are expected to be loyal and devoted to their organization and in return, the organization is expected to take care of them (p. 23). Jogulu (2010) further expands upon Raricks explanation with the suggestion that within high power distance cultures like Chinas, there is a high consideration placed on social status, titles, and positions, all of which are considerations for how one is treated. Therefore, there is a more pronounced hierarchy between leaders and their subordinates and the two are never treated equally in the workplace (p. 705). This defined hierarchy is apparent within Clipper Corporations chief executives leadership style. Employees were never involved in any decision-making and whenever the CEO decided to change directions, the executive team was expected to act without question, regardless to whether they believed there was a better method of implementation, or not. Further, the long working hours are definitive of Chinese culture, as well.

The recommendation to Clipper Corporation for strengthening leadership behavior is to implement a cross-cultural diversity training program company-wide. Clippers chief executive primary offense is not taking into consideration the diversity of her staff, nor taking the time to learn. It is apparent that there is a lack of understanding of how leadership styles may vary based upon cultural influences throughout the company. The subject of individuals having different beliefs and perceptions about leadership characteristics has apparently never been approached, and having a formalized training would not only improve communication from the top, but it would lead to better morale, productivity, and fewer feelings of resentment toward the chief executive. Clippers chief executives behavior, while explainable, is still unacceptable from a leadership perspective. Because its chief executive is so deeply rooted in Chinese tradition, Clipper has not been able to take advantage of the benefits of the diversity of its employees, which may be why the organizations profit margins were decreasing. Clippers chief executive could benefit from intercultural training that focuses specifically on familiarizing herself with acceptable behavior and standards within American culture so that her actions and attitude will not seem as offensive. In a global business environment, effective leaders must be receptive towards cultural sensitivities which may be radically different from ones own values and beliefs (Jogulu, p. 708).

References Clark, D. R. (2004).The Art and Science of Leadership. Retrieved from: http://www.nwlink.com/~donclark/leader/leadchr.html Jogulu, U. D. (2010). Culturally-linked leadership styles. Leadership & Organization Development Journal, 31(8), 705-719. Rarick, C. (2007). Confucius on management: understanding Chinese cultural values and managerial practices. Journal of International Management, 2(2), 22-28. Retrieved from: http://www.jimsjournal.org/3%20Charles.pdf Steers, R. M., Sanchez-Runde, C. J., & Nardon, L. L. (2012). Culture, cognition, and managerial leadership. Asia Pacific Business Review, 18(3), 425-439. Retrieved from: http://search.ebscohost.com.csuproxy.egloballibrary.com/login.aspx?direct=true&db=buh& AN=76144157&site=ehost-live