10

Inspirational Variations? Culture and
Leadership in England

Simon Booth
University of Reading, United Kingdom

Over the last three generations there has been significant cultural change in England as a result of both external and internal factors. An observer looking at the dominant cultural characteristics of England in the early 1900s would find it very difficult to recognize such characteristics in the early years of this century. To understand the changing culture of England and its influence on organizations and individuals it is important to look at the historical context. This will help us distinguish what is unique to the English way of doing things today. It may help us prescriptively suggest how its leaders need to work in order to be successful.

In the broadest sense, the success of plays such as Henry V may be partly due to how well Shakespeare understood and described characteristics of outstanding leadership, which chimed with popular opinion. That this play is equally popular today, despite a very different cultural context, suggests that there may be some characteristics that have remained constant over time and during periods of cultural change. We are interested in asking questions about what people today understand by the term outstanding leadership. Are there still a number of constant, dominant characteristics, or is this too simplistic in view of the highly cosmopolitan culture we live in?

1.  ENGLAND IN CONTEXT

Cultural change in England in the 20th century has been rapid during periods of war and slow during periods of peace. Change has been influenced, however, not just by war and conflict, but also by a number of other elements.

First, the arrival of migrants from the Commonwealth and many different parts of the world led to England becoming a far more multicultural and cosmopolitan society than it had been before the Second World War. Second, the rise to power of the “baby boomers” (the generation of children born in the period 1945–1960) provided the conditions in which social and economic reform was high on the political agenda. This generation was committed to a welfare state, but not to the dependency relationships that had characterized the first phase of the welfare state. This generation was more willing than the previous generation to accept a greater tolerance of difference; they were less xenophobic and more committed to equality of opportunity.

Third is, the rise of regional and ethnic influences. Regional differences began to grow in significance (Curtice, 1996). The agreement to establish a new Scottish Parliament in Edinburgh and an Assembly in Wales spoke of the recognition of the political, social, and cultural importance of these parts of the UK. Similarly, the differences between England and Northern Ireland have been identified as significant in political and cultural terms (Gallagher, 1992).

There are also differences between many ethnic communities, which make up substantial populations in some parts of England. There is a need to be cautious, therefore, in making generalized claims about a uniform English “culture.” Indeed by the start of the 21st century, any observer of the culture of England would have to take into account the importance of its multicultural aspects.

Finally, a continuing debate has raged about the importance of science and technology in the cultural fabric of the nation. The dimensions of this argument go back to C. P. Snow (1963), who suggested that two mutually exclusive cultures were developing in society. One culture was made up of an essentially progressive scientific elite. The other culture was based on the traditional intellectual elite that had no understanding of science or technology and no interest in promoting the values associated with the scientific endeavor. Writers such as F. R. Leavis (1972; Leavis & Thompson, 1960) represented the traditional literary elite and the culture on which it was based. Snow and Leavis represented two poles of this division in English culture (Johnson, 1979). Mant (1977) developed this argument by suggesting that a similar division was to be found in business culture.

The influence of these four sets of forces on English culture can be seen in a number of ways. Some writers have suggested that society is now divided into a number of different groupings (Johnson, 1979; Storey, 1994), in which there is no clear cultural predominance. In contrast, the argument explored here is that these forces have had a strong influence that can be summed up as a battle between progressives and traditionalists. Looking back over the last 50 years we can see that two cultural archetypes have been striving for supremacy.

Traditionalist Culture

Traditional culture was based on social and economic inequality in society that supported and maintained the idea of class as a differentiating factor (E. P. Thompson, 1978). The traditionalist culture had a number of classes within it, including the social elite of the aristocracy and landed gentry, a significant middle class, and a large working class. This culture was held together by a general acceptance of inequality, the support of the Church, as well as by law and custom.

The traditionalist culture showed a tendency toward, or acceptance of, authoritarianism, high power distance and in-egalitarianism. There was a predominantly masculine, individualistic, achieving, and class-based orientation. Members of this culture preferred the known, learned, or experienced truths with which they were raised. The precise nature of the social rules, which governed behavior, depended on the class to which an individual belonged. Managers and leaders subscribed to middle-and upper-class norms. Some of these included putting an emphasis on values such as personal discipline and morality, politeness, keeping to the rules even when no one else is checking, telling the truth, and acting as a “gentleman” or “lady.” These attributes were at the heart of an “establishment” view of the world,reproduced by the “public school education” system, which was intended to breed the leaders of society (Leavis, 1972).

Boys were often sent away to boarding school from the age of 7 until 18. Boys had to learn both formal and informal rules, behaviors, and conventions in order to survive. The result of this form of education was a class of people who showed a certain reserve, a “stiff upper lip,” and an adherence to a code of honor, behavior, and manners, which has been seen as stereotypical of the ruling class (Marnham, 1982). These characteristics were seen as important because of the need to be seen to abide by the rules of society and to accept without question the place one had in the class system. Fulfilling the obligations imposed by the class system, even when such rules did not lead to personal advantage, was considered important. This culture was, therefore, based on an internalization of a set of formal and informal rules. Contravention of the rules could lead to loss of face, dishonor, and social ostracism.

Liberal Culture

An alternative culture developed based on a mixture of liberal and collectivist values. An important element in this was the acceptance of community norms and collectivist activity (M. Young & Willmott, 1957). With the development of the welfare state and new laws banning discrimination on the basis of race or sex in the 1970s, the liberal culture was beginning to pose a threat to the hegemony of the traditionalist culture.

There were a number of different threads that differentiated groups within the liberal culture. Most people who subscribed to the main tenets of the liberal culture rejected inequality replacing it with an emphasis on humane and egalitarian attitudes and a belief in cooperation, consensus, and individual freedom. Those who adopted this outlook had a general belief in progression through merit and were happy to work in a performance-oriented environment. They rejected high power distance. Collectivist variants of this subculture were led by writers such as Raymond Williams (Johnson, 1979). He was a variant who rejected the class-based views, arguing that new opportunities permitted the rise of a meritocracy (M. Young, 1958).

Recent Cultural Change in England

Against this general background it can be seen that between 1945 and 2000 major cultural changes took place in England. Hall, Held, and McGrew (1992) and Halsey (1995) suggest that these changes are leading to the construction of new meanings and identities that are likely to influence the actions of both organizations and individuals in ways that cannot easily be identified.

The old ruling class has lost much of its once dominant position. Even the traditional characteristic of reserve or reluctance to show feelings in public has changed. For example, the importance of the idea of the “stiff upper lip” was challenged by the remarkable public grief shown at the death of Princess Diana in 1997. This reflected a growing recognition in society that it was acceptable to show emotions in public.

An example of the rise of the challenge to the dominance of the male role model can be seen in the social and economic emancipation of women. By the 1990s, women had the opportunity to play a much greater role in society and contribute to a reorientation of culture. With at least a minimum welfare state, the dominant fear of poverty and illness found in the 1930s had been significantly reduced for women, who had found new ways of raising children without the need for a man to provide for the family.

With such massive changes by the end of the 20th century, the relevance of traditionalist culture was being seriously questioned (Hobsbawm & Ranger, 1983).

The rise and widespread use of satirical humor in a variety of media has acted as a mirror for those questioning the relevance of dominant cultural norms. Humor has been an acceptable tool to prick the pomposity and overweening pride of leaders in society. Not even the Queen, as head of state, has been immune to this. Humor and self-mockery has also been used by leaders in business as an effective way of cutting through hierarchies in order to establish relationships. Humor provided the safety valve through which social, economic, and political inequalities could be addressed. It is a route by which the traditional deference and reserve, which still pervades parts of society, can be challenged. British culture has never been immune to change. Migration, regional consciousness, the rise of science, the increasing role of women, and the openness of the mass media have all played a part in change over the period between 1950 until 2000. As a result, some have questioned how culturally united England really is (Corner & Harvey, 1991; Hewison, 1995). These recent cultural changes have made England into a far more varied and cosmopolitan society than was the case in the 1950s. This does not mean, however, that there are not identifiable bastions of the traditionalist culture. There are also other parts of society that emphasize a liberal culture.

It is fairly easy for people to recognize the images and actions that represent these different cultural archetypes (Halsey, 1995). We briefly outline some unobtrusive measures that give a qualitative insight into British culture. These measures are concerned with the GLOBE concepts of Power Distance, Collectivism (Individualism), Gender Egalitarianism, Humane Orientation, Future Orientation, and Performance Orientation.

Power Distance. In the past there has been a high degree of Power Distance among those who felt they belonged to the class-based culture of British society. In the period since the Second World War, there has been a decline in the rigidity of this system. The royal family and landed aristocracy lost a great deal of their power and influence. The royal family, based on the hereditary principle, appears to many as something of a contradiction in modern Britain. It maintains a system of hierarchy and honors that seems rather out of place in a democratic state. However, there is very widespread public support for the monarchy, without which its existence would be called into question.

Since World War II, politics in Britain has often revolved around the power distance debate. The advent of the Thatcher government led to radical change and the promotion of individual power rather than state power. The period from 1979 to 1997 was characterized by the privatization of state enterprises, the development of an “enterprise culture,” deregulation, tax reduction, the abolition of foreign exchange controls, and a cutback on the welfare state. The aim was to change the culture from dependency to individual freedom, enterprise, and responsibility (Randlesome, 1995). The emphasis on deregulation extended to trade unions. The right not to join a union and legal control of the right to strike transformed the industrial relations environment. There was a fall in the membership of trade unions from 10.9 million in 1984 to 8.27 million in 1994. More significant, the power of the unions was significantly reduced. The number of working days lost through strikes went down from 4.12 million in 1989 to 278,000 in 1994. The number of workers involved in strikes went down from 887,000 in 1987 to 107,000 in 1994, and the number of disputes went down from 1,074 in 1986 to 205 in 1994 (Office for National Statistics, 1997).

The deregulation emphasis on enterprise and individualism characteristic of the Thatcher governments of the 1980s was seen as a watershed to some and an aberration to others. Thatcher was a good example of a prime minister who made radical changes and provided innovative leadership. But such an approach was exceptional. The main political parties have, in the 1990s, changed tack, and proclaimed their wish to transform Britain into a “classless” society. This approach retained some elements of Thatcherism, such as recognition of the importance of private enterprise, but it also included funding to provide a better system of education, creating more equal opportunities and a measure of redistribution. In the 1990s, social scientists such as Anthony Giddens had a significant influence on the thinking of leading Labor politicians. He sketched out what became known as “the third way” (Giddens, 1994, 1998, 2000). This suggested that a new and different approach to politics could be developed that would leave behind the traditional fight between right and left. Indeed, research by Peter Saunders (1996) suggests that England is already largely a meritocratic society. He found that the most important factors accounting for social-class division was individual ability and motivation rather than family background or social situation.

Collectivism (Individualism). There is a streak of individualism to be found in England. To some this can be explained by simple characteristics such as the fact that being an island there has been an emphasis on self-reliance. Others would suggest that an explanation can best be found in the legal system and the long tradition of liberalism going back to the Bill of Rights in 1688, which has provided a degree of personal liberty not found elsewhere. At the same time, it would be equally true to say that there is also acceptance of community values that governments have attempted to support in a variety of ways. An example of the individualism of the British is in their attitude toward obeying the law when it comes to matters of conscience. In a recent survey (Brook & Cape, 1995) only 36% would obey the law if it clearly went against their conscience, whereas 57% would follow their conscience rather than the law.

There is generally a belief that individuals should be allowed to do what they want, so long as it does not adversely affect others. For example, the issue of the illegality of some “soft” drugs has been a matter of debate, with public opinion showing signs of change. Recent evidence (Gould, Shaw, & Ahrendt, 1996) suggests that attitudes have changed over the period from 1983 to 1995. Those wishing to keep cannabis illegal have declined from 78% to 58%. Those wishing for a change in the law have risen from 12% to 31%. Such results indicate growing support for the right of the individual to make choices in this area.

Finally, the opposite of an individualist approach is perceived as an authoritarian orientation, for this denies the right of individuals to make choices. Ahrendt and Young (1994) found that people in England over the age of 60 years were more than twice as likely to hold authoritarian views than those under 34. Their evidence indicates that whereas authoritarian attitudes are fairly strong amongst older and less well-educated people, among the younger and better-educated, authoritarian attitudes are held only by a minority (19%). Despite this general picture, people in England still take an authoritarian approach to punishment and law breaking, especially over serious crimes. There is a strong public view that the law should be obeyed, and that crime should be punished.

Gender Egalitarianism. Traditionally there has been a strong emphasis on masculinity in English culture with women playing a subordinate role. Until the end of the 1950s, it was still considered that “the woman's place is in the home.” Even in the 1990s, women still did not have equal representation in leadership positions in many areas of economic and political life. The advent of equal opportunities and the economic emancipation of women has, however, led to significant change. Now most women work and only 27% of people think that the wife should stay at home and look after the children. It has been suggested that this increased participation in the labor force has shaken the foundations of traditional family life (Scott, Braun, & Alwin, 1993). One of the consequences of the emancipation of women has been a change in the nature of relationships and a decline in the need for the traditional family bound by marriage. For example, the number of births outside marriage increased steadily from 218,000 in 1990 to 240,000 in 1995. By the mid-1990s almost one in two children were born outside marriage. There is a trend, at least among younger people, toward a greater tolerance of different ways of bringing up children. Living together outside marriage does not bring the stigma and social isolation that it did in the 1960s.

Humane Orientation. It would appear that there has been a general move toward a more humane or liberal approach in many social aspects of English culture. For example, the death penalty was abolished in the 1960s, abortion was legalized, and the laws have been used to try to stamp out discrimination.

There is generally a good health service, which is free at the point of need, funded through taxation. Increasing numbers of people, however, recognizing its shortcomings, are also using private health insurance. There is a fairly poor state-funded pension scheme, but strong encouragement exists for those in work to take part in private pension schemes. Overall it can be said that the welfare state does still provide some assistance for the basic needs of most of the vulnerable and deprived sections of the population, on at least a minimal level. In addition there is a significant and relatively thriving voluntary sector, which provides assistance for many special needs.

Future Orientation and Performance Orientation. There has been a relatively low level of consideration for the longer-term future, partly because of the welfare state safety net. It was thought by many that the funding provided through taxation would cover for most future needs (including education, unemployment benefit, and pensions). The attack on the welfare state in the 1980s and 1990s has led to an increased concern for the future. Among the middle classes delayed gratification is still important. For many millions of people who have average or lower than average incomes, the most important concern is deciding which bills to pay at the end of the week. For the majority, therefore, dealing with the present provides enough problems without having to think about the long-term future.

Linked to a willingness to plan for the future is often a concern to achieve. Many companies say they recognize and reward performance among employees. For some this amounts to little more than tokenism, but for others, this can make a significant difference to their take-home pay. A recent survey indicated that on average nonmanagers in the private sector gained an 8.9% increase on their base pay and senior managers gained an increase of 13.6% (Chartered Institute of Personnel and Development [CIPD], 1999). Almost all firms now have some sort of performance measurement, monitoring, and appraisal system.

2.  THE CONTEXT OF MANAGEMENT AND LEADERSHIP IN ENGLAND

Many authors have tried to identify the main characteristics of English business culture and its influence on management in business (Adler, 1991; Child, 1981; Cooper & Hingley, 1985; Lazonick, 1986; Mant, 1977; Trompenaars, 1993). One of the most interesting and influential contributions, was by Geert Hofstede (1980, 1991), who provided a useful comparative analysis of managers and their cultural attitudes. His research on managers at IBM in Britain showed a comparatively high score for Individualism and Masculinity, but a comparatively low score on Uncertainty Avoidance and Power Distance.

In the 19th and early 20th, centuries there was an aristocratic aversion to industry (Lazonick, 1986). The predominant form of enterprise was the family-run business, which lacked any professional training. The professionalization of management can be traced back to the growth of “red-brick” universities such as Leeds (textiles), Birmingham (engineering), and Reading (agriculture and land management), which provided a new group of professionally qualified managerial staff. It was not until 1947 that the British Institute of Management was formed to try to promote management education, and it was over 10 years later that the first state-supported business schools, London Business School and Manchester Business School, were established. Even in the late 1960s and early 1970s, managers were not seen as professionals (Lazonick, 1986).

Between 1970 and 2000, British managers became professionalized. This period saw a huge increase in management education, training, and development. For example, the number of business graduates in British universities rose from virtually none in 1960 to 124,000 in 1994–1995. During this period, however, most top British managers had at best, technical rather than business qualifications. As a group, it was said that they showed some typical characteristics such as politeness, tenaciousness, resourcefulness, and self-discipline (Terry, 1979). Terry also suggested that they had a generally ethnocentric attitude toward their foreign counterparts, and most could hardly speak a foreign language. Although not common in most large firms, even in the 1980s, Newitt (1989) suggested that some managers still had an ignorant, arrogant, narrow minded colonial and nationalistic attitude. Most large and multinational firms had moved on from such stereotypes many years before. They had been exposed to international competition, learned from best practice from around the world, and some were leading the way in innovative management training, in diversity management, and in promoting equal opportunities. These open-minded, professional managers reflected some of the more positive aspects of the British character of honesty, frankness, trust, self-control, self-discipline, and politeness (Tayeb, 1993). In the late 1980s and early 1990s, managers who worked in such organizations were studied by Trompenaars (1993), who commented that the characteristic corporate culture in Britain could be called a “guided missile” model. This is essentially egalitarian, impersonal, and task oriented. However, the professionalization of business management was still seen by many as having little to do with leadership. Management was a matter of administration, procedures, and abiding by rules and regulations. British authors such as John Adair were influential in challenging this view, arguing that every manager needed leadership skills. Indeed he suggested, “leadership is an essential ingredient in effective and successful management.” (Adair, 1984, p. ix). His ideas about developing leadership skills were widely adopted in business and the public sector in the 1980s and 1990s.

The work of Cooper and Hingley (1985) showed that many of the most successful leaders in business adopted an open, honest, charismatic leadership style. Successful corporate leaders were often highly motivated individuals who were driven by anger and frustration with the status quo. Essentially these people were active leaders who did not simply respond to circumstances, but who were determined to change circumstances and to triumph over adversity. This type of approach echoed the inspirational and aggressive approach taken by leaders such as Churchill, Montgomery, and Nelson. In difficult circumstances, they were single-minded and determined to do what they thought right and carried their followers with them. These attitudes led to some terms in popular speech, such as “the bulldog spirit” to express admiration for an individual's determination to fight against a much more powerful opponent. Another was “the Nelson touch” in which Nelson ignored orders to stop an attack and carried on a battle to victory. This sort of individualism was not new. In earlier times, leaders such as Sir Francis Drake, and later Cecil Rhodes were seen as outstanding, not so much for their inspirational qualities, but for the ruthless single-mindedness with which they achieved their aims. Such approaches are still adopted by some business leaders in England.

Many others seem to prefer a more anonymous approach, which may hide the significant changes they make. In the public sector, for example, Clement Atlee was seen as quiet, diplomatic, and procedural. He was noted for not using one word where none would do. Yet he presided over some of the most significant political, social, and economic changes of the century.

In looking at leaders in British history, we cannot see any one dominant approach, but there are a variety of approaches. In schools and popular culture, there is much more discussion of the different ways people can lead organizations than 50 years ago. People aged over 50 learned in school about the great military and royal leaders of conquest and empire. Today leadership qualities from other walks of life are recognized. People such as Florence Nightingale and Isambard Kingdom Brunel are considered as worthy of attention as military leaders like Haig or Wellington.

3.  THE GLOBE STUDY

Media Analysis Findings

The aim of this analysis was to identify key features of leadership as reported in the British media. A systematic analysis of press stories about the actions or intentions of business leaders was made. These were distilled into a number of simple categories. Details of the method used can be found in Appendix A. Table 10.1 outlines the main results.

The most frequently cited characteristic was energy, followed by change, action, facilitation, and direction. The results reveal that the lowest ranking scores were for vision, innovation, authority, communication, results orientation, and setting a challenge.

Over 70% of the stories selected were from either the Financial Times or Management Today. This reflects a greater concern for leadership issues in these two publications. They were also the only two media that reported on innovation within the context of leadership. This may in part be due to their more in-depth concentration on UK business issues than other national news media. Management Today also shows higher figures for facilitate, direction, and culture, highlighting its focus on modern organizational leadership issues.

The findings of this media analysis show that the most prominent characteristic of British leadership is the energy (or dynamism) that leaders showed together with their focus on a positive action orientation. From this study, it can also be concluded that leaders appear to be strong promoters of change, providing clear direction and inspiration for their followers. Perhaps it is not surprising, therefore, that leaders also attract a significant degree of criticism. They are generally realistic in identifying failure. British leaders are goal oriented and usually set realistic targets. The articles indicate that these leaders prefer not to exercise authority or power in public, but to get things done or fixed in private. They have collective skills (e.g., group decision making) that complement this sort of style. They tend to use flat rather than tall hierarchies, and methods that empower employees seem to be preferred. Masculine and feminine characteristics are evident but with few extremes. Leaders are seen to be dynamic, energetic, action orientated, flexible go-getters. They have an ability to induce change and are promoters of future strategies but the stories show they tend to want to go ahead and get things done as soon as possible.

They did not show a high level of vision, innovation, and long-term planning. They did not rely on authority structures, and there was little evidence of their ability to communicate within their corporations.

Overall, this media analysis shows that British business leaders do not reflect traditional culture; if anything, they seem to fit more within what was earlier termed a liberal culture. They do not talk about high power distance or tall hierarchies, but they do seem concerned to show energy and an action orientation that empowers and motivates employees.

The Empirical Survey

English Culture. This section outlines the findings of the survey carried out among middle-level managers in England in 1996. This was a relatively small sample (N = 81) and no generalizations can be drawn from it. Nevertheless, the responses do provide interesting findings of the views of a sample of middle managers in some leading British companies, at what appears to be a time of cultural transition. We have used the Mean (M) scores of the responses in this section. Respondents were asked to give their responses using a 7-point Likert-type scale with 1 as the minimum score and 7 as the maximum.

The results of the survey concerning societal culture show that the respondents felt that England was a stratified, individualistic, masculine society. There were significant differences of power. There was little humanity, sharing, or kindness (see Table 10.2).

The middle managers in the survey felt that society was only moderately encouraging (M = 4.08) people toward Performance Orientation. They saw in society moderate Future Orientation (M = 4.28). They considered there was a significant degree of Assertiveness in society (M = 4.15) and a fairly low score for Gender Egalitarianism (M = 3.67), indicating a significant masculine orientation in society. They also felt that society was not particularly of a Humane Orientation (M = 3.72). These responses complement their view that there was a substantial Power Distance in British society (M = 5.15). However, at the same time they recognized that there was a significant degree of Collectivism at the societal level (M = 4.27), perhaps reflecting the influence of the welfare state. They also saw that family Collectivism was of at least some significance (M = 4.08). Both these responses may explain to some degree the mean of 4.65 given for Uncertainty Avoidance, indicating that there was some basic provision to help people deal with most of the commonly accepted uncertainties in daily life.

The interesting part of this survey was concerned with how middle managers felt society “Should Be.” They were asked to express their views about what society should be like. We can see in their responses something of a reflection of the changes from a traditional to a liberal culture. Perhaps the most striking example of this was that there should be less Power Distance in society (“As Is” M = 5.15, “Should Be” M = 2.80). Supporting this they said that there should be much more Gender Egalitarianism (M = 5.17), and a much more Humane Orientation in British society (M = 5.43). These results indicate that the middle managers were in favor of cultural change. At the same time, however, they also felt that there should be greater reliance on Performance Orientation (M = 5.90), family Collectivism (M = 5.55), and a Future Orientation (M = 5.06). These results seem to indicate a strong wish for greater equality of opportunity for all, reward for performance, and a rejection of the inequalities based on power distance and gender.

Organizational Culture “As Is” and “Should Be”

In this section, we consider the survey responses by middle managers in the financial services sector and the food-processing sector in England. Eighty-one middle-level managers from leading financial institutions and food companies took part in this. Although the numbers are small and generalizations cannot be made, the results do provide an insight into the views of middle managers in the organizations taking part.

As in the previous section the same 7-point scale was used.

Financial Services. In the 1980s and 1990s, there has been a significant reduction in the number of middle-level managers in British industry and an increase in their responsibilities for the achievement of goals. In the financial services industry, in particular, there has been very significant organizational change in which middle managers have been squeezed to improve performance with fewer resources (see Appendix B for details). Performance is important (M = 4.36, cf. Table 10.3, “As Is”), but there should be an even stronger emphasis on performance in the industry (M = 6.31, “Should Be”). Managers wish to plan for the future and believe in delayed gratification (M = 4.75), but they suggest that there is significantly more that should be done (M = 5.68) to support this aspiration to invest in the future.

Traditionally there was a strong masculine culture in the management of the banking and finance industry. This has declined to a significant degree, and some firms have made great efforts to recruit and promote female managers. It is clear from the survey, however, that there is still a feeling that at present there is only limited Gender Egalitarianism (M = 3.44). The managers in the survey felt that there should be a significant change to ensure gender equality (M = 5.11). It was also clear that although there was recognition of the need for fairness and a caring or humane approach in their organizations (M = 4.38), they felt that more needed to be done (M = 5.04). Linked to this the managers said there was some Power Distance in their organizations (M = 4.61), which in their view should be reduced (M = 3.39). Almost as a corollary of this, the emphasis on the individual was considered to be less important than the need for group pride and loyalty (M = 6.18). Respondents felt their organizational culture aimed at avoiding Uncertainty (M = 4.37), but the managers perceive there should be less Uncertainty Avoidance (M = 3.73).

The Food-Processing Sector. The managers in the food-processing industry responded in a similar way to the managers in the finance industry (see Appendix C for details of the food industry). Like their colleagues in the financial services industry, they felt that Performance Orientation was of some importance (M = 4.43, cf. Table 10.4, “As Is”), but there should be a significant increase in the recognition and rewards for improvements in Performance (M = 6.31, “Should Be”). The frustration at a lack of a strong Performance Orientation was important, showing the greatest difference between “As Is” and “Should Be” scores. They said the culture of their organizations was Future Oriented (M = 5.06), but this should have a still greater emphasis (M = 5.76). Traditionally in the food services sector, men have been dominant in the managerial levels. The respondents thought there should be much more equality between the sexes (M = 5.11). Managers felt that the organizational culture supported fairness and a humane approach to dealing with problems (M = 4.63) and little more should be done (M = 4.86). The score on Power Distance showed that the firms in this sector do not have highly stratified power levels (M = 3.80) and there was little need for change (M = 3.58). The respondents felt that there was a reasonable degree of group pride and loyalty (M = 4.64), but there should be changes to put greater emphasis on this (M = 5.79). The respondents were reasonably tolerant of Uncertainty Avoidance (M = 4.08) but, if anything, they thought there should be less uncertainty and risk in their organizations (M = 4.27).

Organizational Characteristics “As Is” Across Both Sectors. In looking at the means of organizational characteristics “As Is,” it is clear that there are no very strongly suggested characteristics. The lowest means are for Variables 1–22 and 1–34. These ask respondents to give their perceptions on factual matters. Variable 1–22 asks whether most tasks are done by men or women, with men as 1 and women as 7 (M = 2.80). Variable 1–34 asks how many positions are filled by women (with possible responses ranging from less than 10% as 1 and with more than 90% as 7. The mean on this variable of 2.37 indicates respondents thought that women filled about 10% to 25% of positions. This shows under-representation of women in the workforce of these firms. All the other means fall within a range of 3.42 to 5.50. The highest means show that organizations are generally seen as slightly unfriendly places (Variable 1–24 stated “in this organization staff are generally very friendly” [1], to very unfriendly [7], and the mean response was 5.50). Management does not encourage continuous improvement (Variable 1–15 asked if staff in this organization are encouraged to strive for continuous improvement with 1 as strongly agree and 7 as strongly disagree, and a respondent mean of 5.45). There is a tendency toward taking events as they occur rather than planning ahead (variable 1–3 asked if the way to be successful in this organization was to plan ahead [1], or to take events as they occur [7]). The respondent mean was 5.05. This suggests that respondents feel that to be successful organizations need to be flexible, pragmatic, and concerned with the short term rather than making plans for the future.

Organizational Characteristics “Should Be.” The means of responses provided evidence of some strong views. For example, Variable 3–5 stated, “in this organization a person's influence should be based primarily on: one's ability and contribution to the organization (1), or the authority of one's position (7).” The mean response was 1.81, indicating a strong unwillingness to be influenced by position rather than ability. However, on the other hand, there was some reluctance by managers to be involved in constant performance improvement. Variable 3–15 said, “in this organization people should be encouraged to strive for continuously improved performance,” with 1 as strongly agree and 7 as strongly disagree. The mean response was 6.7. These responses seem to show that respondents wanted to be free to perform and contribute, but still wanted some stability and security in their work without the pressure of the need to constantly improve. The responses suggested that people should be assertive, self-centered, and not concerned for (nor sensitive about) others in the workplace. They felt they should obey the boss without question, but they did not feel any great loyalty to the organization.

Overall, the results of the analysis at the organizational level indicate a wish for smaller power distance, less risk taking, less gender differentiation, and less individualism. They also suggest the need for a more future and performance orientation, more collectivism, and more of a humane approach. These results support and perhaps mirror the cultural changes that are taking place in society, with managers appearing to support elements of a liberal culture with lower power distance, greater gender equality, and a more humane and collectivist approach.

Empirical Survey of Leadership

Characteristics of Leaders in Society. This section discusses the results of the empirical survey, which asked managers to outline what they considered to be the attributes expected in leaders in their organization and in society as a whole. The means outlined in Table 10.5 have been calculated from the validated combination of individual attributes. The attributes most expected in outstanding leaders complement the views outlined earlier. In commenting on leadership, respondents valued highly the ability to provide inspiration, vision, encouragement of a performance orientation, and team integration. Personal integrity, decisiveness, diplomacy, and administrative competence were also valued. The results show that individualists who were autocratic, status-conscious, and who used bureaucratic methods were not favored.

If these results are compared with the results of the media analysis, there are similarities. The media analysis evaluated what leaders said they had done, were doing, or would do. The most commonly used characteristic was energy. The expression of energy, linked with direction, action, and change, provides a complementary support for the survey results concerning the importance of inspiration and performance orientation. An action and change orientation can be seen as related to performance and decisiveness. The leading attributes found in the media analysis do appear to generally support the attributes expressed by managers in the survey.

TABLE 10.5
Means and Ranking of First-Order Leadership Scales in the Finance and Food Companies

In the empirical survey, it is clear that vision is seen as a critical attribute, providing a link between some of the personal qualities of individuals such as intelligence, competence, and performance orientation and the need to look outward to how best the firm could deal with the business environment. As a trading nation, England is subject to often rapid and turbulent change so the link between inspiring employees, emphasizing competitive performance, and using vision to anticipate future changes fits in well with the needs of the business environment.

Individualism is not rated highly by the respondents as an attribute of leaders (Autonomy ranks only 13th out of 21 in both Finance and Food, cf. Table 10.5). Similarly, the survey shows that Status Consciousness (Rank 14/15) and authoritarian approaches are not rated highly (Autocratic: Rank 18/17). This provides more evidence of the challenge of the liberal culture to the traditional culture, which relied on status and class.

Factor Analysis of Leadership Variables.¹. The purpose of factor analysis is to summarize the interrelationships among a set of variables as an aid in conceptualization. Factor analysis provides an understanding of the interdependence among a large set of variables and their dependence on a number of unobservable common factors. It is not within the scope of this chapter to go into a detailed discussion of factor analysis, but there is some debate about the extent to which conclusions can be based on the relationship between variables and the underlying themes (Kinnear & Gray, 1997). An exploratory factor analysis was carried out on the 112 leadership variables based on the total sample size of N = 168 respondents. Using principal component analysis, we extracted four main components. There were many other components but they accounted for a very small amount of variance. We briefly outline the four main underlying dimensions, which are derived from the factor analysis of the empirical survey responses (see Appendix D for the component matrix).

4. MANAGING IN MODERN ENGLAND: LESSONS LEARNED

In the light of the analysis outlined herein, the question that might well be asked is “what should a foreign manager coming to England expect?” How should a manager coming into England from some other country deal with employees?

The first point to make is that from the evidence it is clear that there would be acceptance of such a manager whatever their gender. The cultural bias, which in the past made it hard for a female manager to succeed, has been significantly reduced. There are laws to prevent gender and racial discrimination acting as a barrier to successful performance. Today business organizations are open to all.

The second point is that such a manager would be more likely to gain respect if they had some of the attributes considered characteristic of outstanding leaders. The survey suggests that what matters is personal ability, effort, and the capacity to motivate and lead others. The ability to inspire and arouse motivated activity in others is paramount, but in addition the respondents suggested that outstanding leaders needed to have some other personal qualities such as trustworthiness, diplomacy, modesty, and integrity. Such leaders are likely to be positive, intelligent, and clear communicators who are performance and excellence oriented. If managers coming to England had some of these characteristics, they would have a good chance of being accepted.

What might managers from another country expect to find when they come to England? First, there are a wide variety of organizational cultures in England, which reflects the cosmopolitan nature of English society. At one extreme, some organizations may still show a very traditional class culture, such as Morgan Cars. At the other extreme, some firms may exhibit some special characteristics. For example, as England has been successful in attracting foreign investors, so there are many firms that have strong cultural attributes linked to a foreign national culture. Some of the Japanese firms in England, such as Toyota, use Japanese management styles, and the English workforce has successfully adopted the cultural norms required. In between these two extremes there is a huge variety of cultural practices, so the first important lesson for a foreign manager should be not to prejudge the organization, but to be sensitive to its specific cultural attributes.

The second most important lesson, which this research suggests, is that a manager coming from abroad will find that organizations in England are generally only slightly performance oriented. Middle managers would wish to see their organizations as being much more performance oriented. This could be very significant in combination with the view that firms should also be more future oriented. For a manager coming from abroad this evidence clearly provides scope for action.

The third lesson that a manager coming into England can learn from this research concerns how to deal with employees. There is a need for more collectivism rather than individualism in the organizations surveyed. This translates into a wish for more group-based working, and more team-based approach in the workplace.

The fourth lesson also relates to people management. Managers in this research feel that there should be less differentiation based on gender, and a more humane orientation with less power distance. Learning these lessons would give managers an excellent start in understanding how they could be successful in dealing with employees at present and in working out strategies for future direction.

The final lesson is that respondents feel there is not one best way to lead. Instead they have identified four main approaches, each of which has specific characteristics. Each approach may be best suited to different industry or organizational characteristics, but an understanding of these approaches should help in assessing what may be possible and what may be most appropriate in a given situation. The inspirational coach and the compassionate visionary types may be seen as representatives of the new world of work, which is based on a liberal culture where individual employees are seen as critical to the success of the company. It could be suggested that the orderly organizer type reflects the professionalization of management and the influence of business education in England. The merchant adventurer type might be seen as more representative of older cultural stereotypes but may still be successful in certain circumstances.

5. LIMITATIONS

There are limitations to this research that should be mentioned. The first main limitation is that we have talked about England rather than Britain or the UK as the main focus of this study. Britain is, of course, a mixture of different cultures. Scotland has a vibrant national culture. There are also regional and ethnic cultures that overlay the English, Scottish, or Welsh cultures. For example, Jewish, Quaker, Islamic (religious-based cultures), and Chinese, African, Indian and Pakistani (ethnic-based cultures) have been influential in some areas of business life in different parts of Britain. The influx of populations from many parts of the world has created a diversity of cultures. Tayeb (1993) suggested that the values of these communities fuse with those of the English to create nuances in business style and practice which can be significant. The research presented here is concerned, however, with the findings that derive from a study of firms in England. Questions about the relative importance and influence of different national, regional, religious, or ethnic cultures are, however, important.

A second limitation is that we have taken a once-in-time snapshot of English culture. One of the main points that we make is that cultural change is taking place. It would be sensible to follow up this snapshot with further research to measure the changes over time.

A third limitation is that we have been concerned to gain a general view, from the perspective of middle managers and from the media. The survey of middle managers was limited and it would be incautious to make any generalizations from such a small survey. To get a balanced view of firms it would be necessary to have good survey data from other groups such as lower-level employees and top management. In order to get a balanced view of societal culture, it would be useful to have a representative sample of the population. Although this would be likely to provide more accurate data, undertaking such a large data-gathering exercise was well beyond the resources available. It is to be hoped, however, that this research will provide a stimulus to others to carry out such work in the future.

Nevertheless, within these limitations, we have attempted to define and characterize some of the common aspects of English culture. Measuring the nature of the relationship between culture, organization, and leadership is a huge task. In this research, we have made one small contribution to what should be a growing wealth of research findings.

6. CONCLUSIONS

The results of this study provide new evidence of a transformation that is taking place in the attitudes, norms, and expectations of English managers, as expressed in the empirical survey. In some ways, this reflects cultural changes that are taking place in society. The English managers surveyed show a movement toward what we have called a liberal culture from the dominant traditionalist one. They expect leaders in their organizations to reflect the main attributes expected in leaders in the rest of society. The main attributes that leaders need to demonstrate, in order to have a chance of success, are a decisive, inspirational, and visionary performance orientation, in which integrity and diplomacy are also found. This view is largely confirmed from the media analysis, where leaders exhibit great energy. They have an action orientation and are change makers, setting and directing the organization to achieve objectives.

The results found confirm the work of Cooper and Hingley (1985), Trompenaars (1993), Terry (1979) and, to some extent, Hofstede's results concerning Uncertainty Avoidance, but goes further in suggesting that managers would like to see less Uncertainty Avoidance in their working lives. The research also suggests that whereas managers find England to be a high Power Distance society they expect outstanding leaders to have a low Power Distance orientation. The managers in the survey wish to see less masculinity and a more equally balanced gender orientation. In addition, they would expect a more Humane Orientation in organizations.

The research shows that England has undergone significant cultural change since the 1970s. The once dominant traditionalist culture has been challenged by the liberal culture. In the ranks of middle management, the end of class as a means of differentiating people has meant that individuals are expected to be able to succeed on the basis of merit rather than social origin. Old styles of leadership will be less likely to be accepted. There will be a need for more education and training on how best to motivate and encourage excellence in the workforce. It is clear that managers are searching for more motivation in the workplace. The attributes expected in organization leaders mirror these changes. The managers in the survey wanted leaders to reflect the need for equality of opportunity, reward for performance, and to reduce the power distance found within some organizations.

What is clear from this research is that the business leaders of the future will need a rather different set of attributes, compared to those of the past. They can no longer rely on loyalty; instead they have to earn it. They are not so likely to succeed by using an authoritarian or individualistic approach but must understand how to provide vision, energy, inspiration, and encouragement. This provides a tremendous challenge to educators to try to help develop the skills that can unlock the potential of business leaders to be able to flourish in the changing environment of the 21st century.

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Appendix A

Methodology for Media Analysis

For this study, five forms of news media with a national circulation were used: The Financial Times, The Independent, The Daily Mail, The Economist, and Management Today. These provided a variety of viewpoints.

The periods chosen for data collection were a 2-week period from May 20–31, 1996 and a 1-week period from June 24–29, 1996. All articles concerned with UK news were scanned using the following criteria:

Articles about leadership In the public sector as well as the private sector were used and about leadership In business, politics, and society. The periods that were selected did not cover any major event. The period was average, except for one issue, which has come to be known as the “BSE crisis.” This was not important enough during the survey period to necessitate excluding all articles referring to it from the study. The same criteria were used In selecting articles on the BSE crisis as with any other. If the piece described what a leader In the UK was doing, had done, and how their actions were viewed, then it was included In the study.

Once all the data had been collected and referenced, the most characteristic attributes were used to categorize the phrases. Where possible these were chosen from the verbs and adjectives within each phrase where this accurately summarized the meaning of the phrase. This reduced the mass of data to a number of words that clearly illustrated the phrases chosen.

Testing of the categories was a difficult task. To test whether the categories were seen as reasonable (i.e., an accurate reflection of the phrases) it was agreed that a test should be set up using students. They were asked to comment on a series of phrases and say how they would categorize them. The results from this were very favorable. A majority of students used the same or a related word to describe a phrase as had been used by the researcher. None of the category names used had to be changed.

Initially, while going through the phrases and categorizing them, it was decided that a second label should be added In some cases. This was used mainly when a phrase represented a negative attitude toward the first category label. The following are some examples: “He is not performing” (energy/negative); “we tried a bit of everything and most of the time we did not do particularly well” (direction/negative); “Leave that to the other lot” (action/negative).

On reviewing these, however, it was realized that each of these “negative” secondary labels could also be seen as indicating a need for a more positive approach. So “he is not performing” indicated a need for more positive performance. “We did not do particularly well” indicates the need to have better direction; and “leave that to the other lot” indicates that the individual had his or her own positive direction.

One major problem with this method of analysis was consistency In applying the secondary labels. The test of a sample helped to confirm that there was consistency. It was possible to build a set of loose guidelines when applying the secondary labels. For example, if the phrases actually contained a key word such as culture, challenge, vision, or change this usually meant that it would be categorized by the same word. Many phrases had a clear category label such as “action,” “objective,” or “result” where these were clearly illustrated In the phrase and the context of the articles.

Once all the articles had been typified and added to the listings it was possible to calculate the number of times each category appeared. The protocol suggested that the quantity of each category label gives an indication of how leaders are represented In the media. Clearly this view could be challenged. For example, it may well be that one category label is given only occasionally, but, perhaps because it is a word reserved for important occasions, it should have a weighting attached to it. For example, some important statements may only be made at an annual general meeting, and unless the sample covered the period of reporting to shareholders, some significant activities of leaders may not appear In the press. This issue does deserve serious attention.

The issue of bias was a concern—not just the bias resulting from making interpretations of categories without having a weighting, but that of the media sources used. Most articles from the media were written or edited by journalists. They are normally concerned with “newsworthy events” which could skew the findings toward an extreme issue or event, simply because such things make headlines.

Another problem with using popular media is that the journalists writing many of the articles are not usually qualified experts In that particular field. The article might not reflect what a leader intended it to, or what actually happened.

There are, therefore, some potentially significant methodological issues that researchers need to be aware of In conducting media analysis. The analysis did provide, however, a secondary form of independent evidence that was useful to compare with the results obtained from the empirical survey.

I would like to acknowledge Rachel Arnold for her research assistance In carrying out this element of the study.

Appendix B

The Financial Services Industry

There have been three major changes In the finance sector In the UK In the period from 1970 to 1997. These can be summarized as environmental change, technological change, and personnel change.

The first main change has been In the environment of the financial services sector. Perhaps the most important element of this has been the change In the law that allowed foreign banks to establish a presence In Britain and to compete for certain types of customer. Linked to this was the abolition of foreign-exchange controls, which allowed citizens to take money abroad and to bring money In. The effect of these changes was to break the cozy almost noncompetitive relationships between clearing bans In the UK. This led to much greater competition and a need to change the product mix and to market aggressively to customers. The main result of these environmental changes was a wave of takeovers and mergers In the 1980s and 1990s, and the increased integration of the industry. This mostly affected building societies and mortgage companies, but some of the main clearing banks (such as the TSB, the Royal Bank of Scotland, and the Midland Bank [HSBC] were also affected. The number of building societies declined from 167 In 1985 to 94 In 1995.

The second major change was the advent of technology, which led to a huge reduction In the need for retail outlets and backroom staff. As a result, there were very large staff reductions In almost all financial institutions In the 1980s and large investment In computerized systems. The whole retail banking system was threatened by the advent of banks with no retail outlets, where all business could be conducted over the phone. By the mid-1990s, banks were also beginning to establish “virtual banking” In which business could be conducted over the Internet.

The third major change has concerned those who work In the financial services sector. There has been a change In the culture of banks and financial institutions that has gone together with the need to compete for business. Staff were properly trained and organizations were structured to be able to compete. There has been a very large decline In the number of staff, and those that remained have had to be retrained to meet the needs of customers. Far fewer men were employed, but there was a significant increase In part-time female labor.

The three areas of change outlined briefly herein have left banks and other financial institutions appearing quite differently In 1997, compared to 1970. The revolution began by deregulation, and it is still In progress and will change not only the industry itself, but also the habits of consumers and the face of the high streets of towns throughout Britain as retail outlets close down.

Appendix C

The Food Industry

The dominant force In the period 1970–1997 was the European Union and the Common Agricultural Policy (CAP). The consistency of the CAP allowed many larger farmers In Britain generally to prosper In the 1980s. The food-processing companies had a steady supply of raw materials. Over the period, there was a significant integration of retailing with the dominance of major supermarkets such as Tesco, Sainsbury's, Safeway, and Somerfield.

There was also significant integration among food processors In Britain. By 1997, the six top processors were dominant In the market. There were also a large number of small enterprises, but relatively few medium-size firms. In 1992, about 564,000 people worked In the food, drink, and tobacco industry. Within the food sector, the three most important areas of manufacturing and sales were meat production and preserving, bread and cakes, and chocolate and confectionery. Most produce was sold In the UK or European market.

With the advent of the Single European Market, there have been threats from competition and increased opportunities for sales within Europe, In addition to traditional markets. The most significant issue, which has affected the food industry as a whole, has been the increased demand for high-quality produce and food safety. As the supermarket's power has increased, so farmers and processors have had to respond with cost-effective, high-quality products. A series of problems concerning food safety has led to political action to increase protection and regulation to ensure a higher degree of control In some areas. The main issue that has dominated the industry over the period 1989–1997 has been the contamination of the human food chain with a disease of cattle, BSE (Bovine Spongiform Encephalopathy and variants). This has had a devastating effect on those most closely affected and has led to changes In the way In which risk is assessed by companies and by the state.

Appendix D

Factor Analysis of Leadership Items

_______________

¹As discussed in Hanges and Dickson (2004), the GLOBE scales were designed to measure organizational or societal level variability. The scales were not intended to meaningfully differentiate among individuals within a particular society. However, even though the scales were not constructed to provide such information, in some cases it is interesting to assess whether similar factors differentiate individuals within a society. Country-specific factor analysis is intended as an exploration of the themes captured by GLOBE in a new domain, that is, individual differences within a society. It should be noted that, because of the within-society restriction of the GLOBE scales true-score variability (which was based on between-society factors should be lower than between societies (cf. Hanges & Dickson, 2004). Furthermore, one should not interpret the within society factor analyses as replications of the GLOBE factor structure. And the absence of a GLOBE factor within a society should not be automatically interpreted as the factor being irrelevant to the people in that country. Rather, a factor may fail to emerge within a society even when that theme is extremely critical because there was no variability and so a factor could fail to emerge because it is extremely critical or completely irrelevant to the people within a society.