Cross-Cultural Leadership in the Australia-China Trade Context

This report provides a training program for Australians working in China, focusing on cross-cultural leadership. It includes analysis of theoretical frameworks, cultural dimensions, and global mindset. Suggestions for Australian companies and educational institutions are also provided.

Running head: CROSS-CULTURAL LEADERSHIP IN THE AUSTRALIA-CHINA TRADE CONTEXT
CROSS-CULTURAL LEADERSHIP IN THE AUSTRALIA-CHINA TRADE CONTEXT
Name of the student
Name of the university
Author note

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CROSS-CULTURAL LEADERSHIP IN THE AUSTRALIA-CHINA TRADE CONTEXT
Executive summary
The chief purpose of the report was to provide training program to the Australians on how to
deal with Chinese people and adopt their culture while working in China or studying there. The
report was prepared to be presented at the workshops meant to be delivered between September
and December 2018. The report included critical analysis and evaluation of theoretical leadership
frameworks in the context of cross-culturalism. Further, the report examined and assessed the
chief cultural dimensions, Hofstede’s, to be specific. This analysis helped provide proper training
program for Australians working in China. The report also included in the appendix, the
proposed training program pattern and summary of attendees. The report concluded with
suggestions for Australian companies and educational institutions to include training programs at
the basic level so that Australians would have no problems working in China and adopting their
culture.

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CROSS-CULTURAL LEADERSHIP IN THE AUSTRALIA-CHINA TRADE CONTEXT
Table of Contents
Introduction......................................................................................................................................3
Theoretical frameworks of leadership in cross-cultural context......................................................3
Evaluating key dimensions of culture..............................................................................................4
Analyzing and appraising global mindset........................................................................................4
Conclusion.......................................................................................................................................9
References:....................................................................................................................................10

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CROSS-CULTURAL LEADERSHIP IN THE AUSTRALIA-CHINA TRADE CONTEXT
Introduction
The project aims to present the content for the ACTP workshop, which includes the
details of the training program to prepare the Australians for the cross-cultural challenges they
would face while working in China. The paper will provide critical analysis of the the theoretical
frameworks related to cross-cultural leadership. Special emphasis will be on improving the
three-tier trade relations between the two countries by providing training on cross-cultural
leadership. The three tiers include export of raw materials to China, export of food groups to
china and purchase of processing assets in Australia, and student exchange programs having
Chinese postgraduate students come to Australia, mainly Sydney for studies.
Theoretical frameworks of leadership in cross-cultural context
Cross-cultural leadership suggests the type of leadership that is acceptable and feasible in
cross-cultural contexts as well. With the growing affect of globalization, trade relations between
countries have reached a new peak and this has in turn, resulted in increasing cross-cultural
communication and integration. In such a scenario, it becomes important for companies and
countries to engage in cross-cultural studies especially leadership. Daft (2014) talks about
developing leadership diversity and states that a leader needs to understand and lessen the
difficulties that minorities face in organizations. The author states that this could be done by
considering the role of cultural attitudes and values in deciding the ways to deal with people
from different cultural or ethnic backgrounds.
Transformational leadership has been found to be the most effective when it comes to
leading an organization in cross-cultural context. Numerous studies indicate that
transformational leadership predicts both performance and trust in the Australian context.

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CROSS-CULTURAL LEADERSHIP IN THE AUSTRALIA-CHINA TRADE CONTEXT
However, in the Chinese context, transformational leadership predicts only performance and not
trust. The reason for this could be found in the definition of transformational leadership. It is
defined as the charismatic style of leadership where the leader collaborates with the subordinates
to achieve a common goal. With china, this does not happen often because of its top down
hierarchical leadership pattern, which shall be discussed in the following section.
Evaluating key dimensions of culture
Geert Hofstede was probably the first theorist to present a complete theory of cross-
cultural leadership that focused on the different cultural dimensions. Hofstede devised six
dimensions that encompassed the differences of culture amongst countries (Minkov & Hofstede,
2014). These cultural dimensions allowed people, leaders in particular, to have a clear perception
about other cultures prior to establishing business or trade relationships. The six cultural
dimensions include power distance index (PDI), uncertainty avoidance index (UAI),
individualism versus collectivism (IDV), masculinity versus femininity (MAS), long-term
orientation versus short term normative orientation (LTO) and indulgence versus restraint (IND).
On a scale of 100, the countries are measured in terms of the above-mentioned dimensions. The
high and low scores indicate the inclination of the countries towards a particular dimension.
Countries scoring low on the scale of PDI demonstrate that the people believe in equal
distribution of power and vice versa for countries scoring high on this. A high score in UAI
means that people maintain and follow rigid codes of behavior and beliefs and are intolerant to
unconventional behavior or ideas. Those scoring high on IDV are societies believing in working
for themselves and their immediate families.
Analyzing and appraising global mindset

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CROSS-CULTURAL LEADERSHIP IN THE AUSTRALIA-CHINA TRADE CONTEXT
Erin Meyer’s discussion on the types of leadership followed in different countries will
also help Australian and Chinese leaders understand each other’s national and organizational
cultures easily. Meyer clearly describes the egalitarian, consensual, top-down and hierarchical
leader ship in terms of decision-making across countries (Hbr.org, 2019). According to her
analysis, Australia follows a top-egalitarian leadership where the leader consults his followers
prior to making and implementing any decision. On the other hand, China is a country where
top-down hierarchical leadership is followed. In this type of leadership, the decision of the leader
is final and the followers must abide by it. Therefore, it is crucial that both Australia and China
have a strong knowledge of the leadership patterns followed in their countries because, as Meyer
states, all the leadership approaches are effective but when these overlap, problems arise. To find
a way to infuse the different leadership approaches, it is important that Australia and China to
come together and find a feasible way.
These scores could be used to establish a strong cross-cultural leadership base that could
enhance the three tier trade relations between the two countries. The first is the fast expanding
sugar export to China under the China Oil and Food Corporation (COFCO). In Australia, the
Tully Sugar Limited is the largest exporter of sugar to China, which was bought by COFCO in
2011 (Tullysugar.com.au, 2019).
The second tier involves the purchasing of processing assets by China in Australia
particularly in Sydney and the export of refined food products. In the real estate, Chinese buyers
have shown increased interest especially in recent years and they constituted the largest group of
buyers in Australia. The financial difficulties faced by the company was largely due to the
owner’s, Lu Xianfeng’s decision to neglect board’s advice and go ahead as per his own plans
(Afr.com, 2019).

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CROSS-CULTURAL LEADERSHIP IN THE AUSTRALIA-CHINA TRADE CONTEXT
The third tier of trade is the large number of Chinese students coming to Australia for
higher studies. In terms of education, China along with India, have the biggest cluster of students
coming to Australia for their post graduation (Fingar, 2009).
The following training program has been developed for the Australian business leaders,
which they could use while conducting business operations in China.
Proposed Training Program – ACTP Assignees
Period: 3 months (September to December 2018)
Variables:
Focus: Cross-cultural Leadership
No Topic Plan Purpose
1 Introducing self To know the trainees
including their names,
their place of being,
general conversation,
job responsibilities,
titles, my background
and so on
OHS issues include
break times, toilets,
safety and such
- Learn about the
background of the
assignees in order to
understand the ways to
start the training session
- Forming a common
ground and compassion
- Comprehend issues of
both personal and social
nature if there are any
2 Plan discussion Let the assignees learn
about the overall plan of
- Help the trainees feel
comfortable, get them

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CROSS-CULTURAL LEADERSHIP IN THE AUSTRALIA-CHINA TRADE CONTEXT
the session, period,
objectives, techniques
and so on, things that
will be covered, logical
arguments, questions,
goals, any irrelevant
issues
into training mindset
with openness to accept
new skills and
information especially
regarding cross-cultural
leadership
- Talk about any
common issues they are
familiarizing in
Australia
3 Introduce the ACTP
training system
Begin with the ACTP
training report
Provide handouts to the
trainees
- Methodically bring in
trainees to their new
environment
- Classify cultural
similarities and
differences that are
being experienced by
the trainees
- Gradually introduce
cultural connection
strategies
4 Questions and
discussion
Allow trainees to ask
question regarding the
session
Create a friendly
environment
Cope with every
question in an
- To let assignees ask
questions
- Respond to their
questions in a proper,
organized way
- Use methods like
Q&A to resolve as

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CROSS-CULTURAL LEADERSHIP IN THE AUSTRALIA-CHINA TRADE CONTEXT
appropriate manner
without being biased or
inclined
much issues as possible
5 Coping with problems
and objections
Prepare prior to the
training to cope with
difficulties
Comprehend the fact
that all attendees might
not respond positively
to the training
Ensure to use business
or professional language
to communicate
- To handle tough issues
and questions
- To understand that the
trainer is the important
element of the session
but the assignees
- To find ways to
resolve all the issues
6 Concluding the training Making sure that all the
attendees are trained
well
Examining it by asking
direct and indirect
questions
Determining the level to
which the trainees have
remembered and
understood the
importance of cross-
cultural context in
leadership
To ensure quality
control
To ensure efficiency of
the session
To ensure that the
training has been
positive for both parties
To elicit honest
feedback in order to
review succeeding
training needs and
purposes

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CROSS-CULTURAL LEADERSHIP IN THE AUSTRALIA-CHINA TRADE CONTEXT
Estimating the amount
of knowledge every
trainee has gained
Obtain open and honest
feedback
Conclusion
Therefore, as evident from the above discussion, two important points regarding
leadership and cross-cultural leadership have come up for Australian and Chinese business
leaders to address. The first point is the leadership approach that both countries follow. While
Australia follows a top-down egalitarian approach, China adheres to the top-down hierarchical
approach. The second point is the differing cultural dimensions that pose a challenge for leaders
in both countries. Understanding these cultural dimensions could help a smooth three-tier trade
relationship to occur between the two countries.

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CROSS-CULTURAL LEADERSHIP IN THE AUSTRALIA-CHINA TRADE CONTEXT
References:
Afr.com. (2019). Chinese investor at mercy of bank over $280 million Tasmanian dairy play.
Retrieved from https://www.afr.com/business/agriculture/chinese-investor-at-mercy-of-
bank-over-280-million-tasmanian-dairy-play-20180607-h113az
Country Comparison - Hofstede Insights. (2019). Retrieved from https://www.hofstede-
insights.com/country-comparison/australia,china/
Daft, R. L. (2014). The leadership experience. Cengage Learning.
Fingar, C. T. (Ed.). (2009). Global trends 2025: A transformed world. DIANE Publishing.
Hbr.org. (2019). How Cultures Across the World Approach Leadership. Retrieved from
https://hbr.org/video/5476393165001/how-cultures-across-the-world-approach-leadership
Minkov, M., & Hofstede, G. (2014). A replication of Hofstede’s uncertainty avoidance
dimension across nationally representative samples from Europe. International Journal of
Cross Cultural Management, 14(2), 161-171.
Tullysugar.com.au. (2019). Welcome to Tully Sugar Limited. Retrieved from
http://www.tullysugar.com.au/