Report: Cross-Cultural Leadership Training for Australian Leaders

This report details a cross-cultural leadership training program designed for Australian business leaders engaging with China. It begins with an introduction emphasizing the importance of cultural intelligence in global business, particularly in the context of expanding operations and offshore manufacturing. The report justifies the selection of China as the focus country, highlighting its economic growth, technological advancements, and skilled workforce. It outlines the objectives of the training workshop, which include enhancing knowledge of cross-cultural management, managing diverse teams, and understanding Chinese cultural dimensions. The core of the report presents the workshop content, including a comparative cultural analysis based on Hofstede's six dimensions, contrasting Australian and Chinese cultural values. The report examines power distance, individualism, masculinity, uncertainty avoidance, and long-term orientation, providing insights into how these dimensions impact business practices. The report also includes an agenda for the training, covering cultural orientation and the management of cultural differences. The report aims to equip Australian leaders with the skills needed to navigate the complexities of the Chinese business environment and foster successful cross-cultural collaborations.

Running head: CROSS CULTURAL LEADERSHIP
Cross Cultural Leadership
Name of the Student
Name of the University
Author Note

1CROSS CULTURAL LEADERSHIP
Table of Contents
Introduction:...............................................................................................................................3
Decision of the country:.............................................................................................................4
Objectives of the Training Workshop:.......................................................................................5
Agenda:......................................................................................................................................6
Content of the Document:..........................................................................................................7
Description of Exercises:.........................................................................................................10
Handouts:.................................................................................................................................11
Conclusion:..............................................................................................................................12
References:...............................................................................................................................14

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Introduction:
The importance of the cross cultural leadership is notably high in the modern world of
business and that is visible with the enhancement of the focus from the part of the majority of
the companies’ higher authority on the efficient enhancement of the knowledge of the
employees regarding the cross cultural intelligence. As per the comments of Rey-Martí,
Porcar and Mas-Tur, (2015), the modern business organizations are facing the absolute
necessity of expanding their business operations to new locations for enhancing the social
and financial sustainability of the companies. Garcia-Torea, Fernandez-Feijoo and de la
Cuesta (2016), also mentioned that the shareholders’ interest in earning increased amount of
revenue is playing a significant role in influencing the companies towards the expansion of
the business operations.
On the other hand, Ancarani et al., (2015) stated that the difference of the upscale and
mid- scale market for elaborating the business strategy of cost controlling. Ancarani et al.,
(2015) further mentioned that majority of the modern business entities are observed to have
the tendency of shifting their manufacturing unit to the mid -scale markets where they have
the scope of manufacturing at low cost which plays a crucial role in limiting their operations
or manufacturing cost. As a result, the companies prefer the idea of the offshore
manufacturing. In addition to this, Peng (2016), claimed that the growing business markets
have the ability to attract the national and multi -national business entities. Other than this,
Bijaoui (2017), mentioned that the concept of globalization plays a significant role for the
companies in breaking the limitations of the national or international boundaries as that
reduces the market monopoly.
Having said that, Ang and Van Dyne (2015), claimed that the success of the
companies in expanding their business to new business destinations, is largely dependent on

3CROSS CULTURAL LEADERSHIP
the cross cultural intelligence of the employees of the companies. Groves, Feyerherm and Gu
(2015), highlighted that the capability of the employees in managing the cultural differences
in the new business destinations, is important for the sustainability of the business actions of
the companies in the new business markets. The study is based on the topic of cultural
intelligence where it provides a workshop training to the employees and the business leaders
for efficient management of their business operations at culturally different regions or the
business markets. The study considers China to be the preferred destination for the analysis.
In addition to this, the study provides a brief analysis regarding the objectives or the
outcomes of the workshop. Along with that, the study includes a design of the document
which facilitates the workshop training program for the company. At the same time, the study
delivers a handout for informing the business leaders of Australia regarding the cultural and
social differences that they are expected to face in China.
Decision of the country:
The chosen country for elaboration is the China. Chinese market is considered to be
the most preferred destination in Asian market for the business expansion. One of the main
reason for selecting the Chinese market is that many of the multinational companies of
Australia are keen to establish themselves in the Chinese markets for the substantial growth
that is on offer for those companies. The business organizations have the scope of riding a
significant growth in the selected business market and that is considered to be one of the main
attraction for the companies in entering the Chinese market (Naughton & Tsai, 2015). In
addition to this, the Chinese market is able to align their business and operational activities
with the modern technology and innovation in a notable manner which has helped the
business organizations working in it, in enhancing the quality of their business. At the same
time, the highly tech savvy Chinese business market is one of the strong factors that have
influenced the companies in professional enhancement of their production (Pearson, 2015).

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Other than this, the success of the companies in efficient controlling of the operational
cost in Chinese market, is also an immense motivation for the companies in managing their
business activities in the selected market. China, being one of the largest population in the
world, provides considerable number of highly skilled and expert professionals for the
effective management of the operational activities of the companies working in its business
market (Zhang & Rasiah, 2015). As a result, there are considerable number of organizations
which are seen to have special interest in shifting their manufacturing sections in the Chinese
market to ensure that the manufacturing cost is limited considering their objective of earning
increased amount of profit.
Apart from this, the significant population of the nation is considered to be a strong
influential factor for the companies in conducting their business activities in the selected
market as it has the ability to provide an increased amount of market limelight on the
products and services of the companies. Other than this, the Chinese market is considered to
be the heart of Asian business market due to the political influence and the growth that the
mentioned business market has. Being the centre of attention of Asian market, the Chinese
business market is able to influence the Asian business markets in a notable manner. Hence,
the Australian business organizations have higher likelihood in expanding their business
actions to the Chinese business markets which influences the selection of the Chinese
business market.
Objectives of the Training Workshop:
With a precise look back at the background, it is visible that there are considerable
number of Australian based companies that are considering the idea of the business
expansions and the Asian business market, for the substantial growth of it, is at the top of the
priority list of the companies. Having said that, Momir et al. (2015), claimed that the ability

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of the companies in successfully managing the business operations in the Chinese markets, is
dependent on the efficient gathering of the cross cultural knowledge from the part of the
business leaders. Ahammad et al., (2016) mentioned a significant point considering the
context of the international business with the claim that the cross cultural intelligence is
important for the business leaders in gathering sufficient knowledge regarding the techniques
that should be applied for the efficient handling of the human resources at the new business
market. At the same time, Tomasello (2016), claimed that the cross cultural intelligence of
the business leaders is important in the context of the business expansion for anticipating the
customer behaviour in a professional manner and along with that, it provides greater ease to
the companies in making sure that they are triggering the purchase intention of the customers
in an efficient manner. Considering the importance of the cross cultural training session, the
objectives for the training workshops are mentioned below:
Efficient knowledge of the cross cultural management.
Ability to manage the employees and stakeholders of diverse culture.
Effective knowledge of managing customers of different culture.
Capability of analysing the dimensions of the Chinese culture.
Ability of identifying the differences between the parent culture and the Chinese
culture.
Identifying and implementing the techniques for the effective management of the
cultural differences.
Agenda:
To inherit information regarding cultural orientation of China.
To identify the score of Chinese culture in various dimension of the Hofstede model.

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To appropriately interpret the rating and gather insights regarding the culture of
China.
To identify the techniques to manage the differences that the Chinese culture posses
with respect to Australian culture.
Content of the Document:
With a precise consideration towards the importance of the cross cultural
management, it becomes important for the companies to educate their employees and
stakeholders regarding the techniques and the activities that are important for enhancing their
ability in managing the impact of the cultural differences. For the improvement of the
knowledge of the Australian business leaders, expected to operate in the Chinese market, the
below mentioned comparative cultural analysis is substantial.
In the following analysis, the Chinese culture is assessed on the basis of six
dimensions of Hofstede Insights which are the power distance, individualism, masculinity,
uncertainty avoidance, long term orientation and indulgence.
With a precise look at the cultural differences of Australia and China, it is evident that
the Chinese society scores considerably high in the aspect of the power distance. With a score
of 80 in the aspect of the power distance, the Chinese society reflects higher level of
acceptance towards the unequal distribution of power inside the organizations (Hofstede-
insights.com, 2020). From the score, it is understandable that the citizens of the Chinese
society believes that the inequalities amongst the people are highly acceptable and that
ensures the fact that the superior and subordinate relationship is primarily polarized. In
addition to this, the high score of the Chinese society in the aspect of the power distance is
pretty significant in stating the lacklustre defense against the inappropriate usage of the
power from the part of the superiors. Considering the score, it becomes evident that the

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relationship between the senior and junior members of the organizations is primarily formal
in nature and the individuals are expected to have no aspirations beyond their ranks. On the
other hand, the Australian society, with a score of 36 in the aspect, reflects considerably low
acceptance towards the unequal distribution of power inside the organizations (Hofstede-
insights.com, 2020).
Other than this, the superiors in the Australian organizations are seen to be largely
accessible and the subordinate employees are seen to be supported by their seniors in a
professional manner. In addition to this, the communication in the mentioned society is seen
to be largely informal and participative in nature. Considering the aspect of the individualism,
it is understandable that the Chinese society score considerably low. With a score of 20 in the
mentioned aspect, the Chinese society is collectivist in nature (Hofstede-insights.com, 2020).
The citizens of the nation are observed to have larger preferences in working in collective
formats. The commitment of the employees to the organization is comparatively lower than
that of the commitment that the employees show for other individuals working in the
organization. With a close look at the preferences that the employees have, towards the
collective formations, the prominence of the unionization is pretty evident. The labour and
employment market of the nation is considerably affected with the unionization and political
influence. On the other hand, the Australian society is seen to be largely individualistic in
nature and that is prominent with the score of 90 in the mentioned aspect (Hofstede-
insights.com, 2020). The high score of Australia in the aspect of the individualism clearly
portrays the loosely knit societal structure where the immediate consideration of the
individuals are themselves and their families. Both the countries are observed to have a
similar stance in the aspect of the masculinity.
With a score of 61 and 66 for Australia and China respectively in the mentioned
dimension, it is visible that both the societies have a masculine approach towards the

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management of their business and operational activities where they have the urge to become
best in everything they do (Hofstede-insights.com, 2020). Considering the aspect of the
uncertainty avoidance, it is important for the Australian business leaders to have the idea of
the fact that the Chinese society is comfortable with ambiguity which is evident with large
number of ambiguous meanings that the Chinese language incorporates. At the same time,
the rating of the Chinese society in the mentioned dimension is pretty significant in stating
the adaptability and sense of entrepreneurship (Yang, 2016). With a look at the concept of
long term orientation, it is understandable that the high score of Chinese culture in the
mentioned dimension, clearly states the fact that the Chinese society is largely pragmatic in
nature. The members of the Chinese society are observed to believe the fact that truth
depends on the time, context and situation. The individuals are observed to have the tendency
of adapting traditions to transformed conditions along with a strong inclination towards
saving and investing.
On the other hand, with a score of 21, the Australian culture reflects a high level of
normative orientation in its dynamics (Hofstede-insights.com, 2020). The citizens of
Australia are observed to have strong concern with the establishment of absolute truth.
Considering the indulgence aspect, it is evident that the Chinese society is considerably
restrained in nature. The low score of the mentioned country in the aspect of indulgence,
highlights the tendency towards pessimism and cynicism (Beheshtifar & Moghadam, 2016).
The citizens of the nation are observed to be less focused towards the efficient spending of
the leisure time and in the effective controlling of the gratification of their desired. On the
other hand, the Australian society is observed to score notably high in the aspect of the
indulgence. The Score highlights the inclination of the people of the nation towards realizing
their impulses. At the same time, the score signifies the desire of the people in enjoying their

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life and having fun which characterizes their positive attitude towards life and their
operational activities.
Description of Exercises:
Objective Exercise
Management of the differences in the aspect
of the power distance.
The business leaders are required to make
sure that they have practice of maintaining
the hierarchy in the organizational setting
and the form of communication between
themselves and the other members of the
organization is formal in nature.
Management of the differences in the aspect
of the Individualism.
The Australian business leaders are
expected to participate in training sessions
for learning the technique of initiating
employee engagement sessions as that will
help them in adapting and promoting the
collectivism in the organizational context
(Park, 2015).
Management of the differences in the aspect
of the indulgence.
The business leaders are expected to learn
the trade of motivating the chinse members
in maintaining a work life balance and in
enjoying the leisure time in a suitable
manner. The business leaders are required to
ensure that the employees have the scope of

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enjoying their vacations through the
formation of the provision of the time and
financial supports (du Plessis, 2015).
Handouts:
(Information Courtesy: Hofstede-insights.com, 2020)
Power Distance:
Australia: With a score of 38, Australian society have lesser preferences towards
accepting the inequality in power distribution.
China: With a score of 80, Chinese society have higher preferences towards accepting
the inequality in power distribution.
Individualism:
Australia: With a score of 90, Australian society is individualistic in nature.

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China: With a score of 20, Chinese society is collectivist in nature.
Masculinity:
Australia: With a score of 61, Australian society reflects masculine approach.
China: With a score of 66, Chinese society reflects masculine approach.
Uncertainty Avoidance:
Australia: With a score of 51, Australian society is at intermediate position in
avoiding ambiguity.
China: With a score of 30, Chinese society is comfortable with ambiguity.
Long Term Orientation:
Australia: With a score of 21, Australian society reflects normative culture.
China: With a score of 87, Chinese society reflects pragmatic culture.
Indulgence:
Australia: With a score of 71, Australian society is seen to be indulgent in nature.
China: With a score of 24, Chinese society is seen to be restrained in nature.
Conclusion:
On an ending note, it is evident that the Australian based companies operating in the
Chinese markets require a certain level of cross cultural understanding for the effective
management of their business activities in the Chinese markets. The business leaders are
required to improve their cross-cultural intelligence for the same and that can be managed
with their participation in the cross cultural training sessions. The efficient understanding of
the cultural differences between the nations on the basis of the cultural dimensions such as