A STUDY OF MULTICULTURAL LEADERSHIP

STRATEGIES USED BY MANAGERS IN CAPITA

Dissertation submitted to the Guru Kashi University,

Talwandi Sabo

For the Award of

Master of Business Administration
In
Department of Management
BY

Harmanjot Singh Sidhu

University Roll No. 222021030

Supervisor
Dr. Priyanka

Faculty of Management and Commerce

Guru Kashi University, Talwandi Sabo
May, 2024
 DECLARATION

I declare that the dissertation entitled "A STUDY OF MULTICULTURAL

LEADERSHIP STRATEGIES USED BY MANAGERS IN CAPITA” has been
prepared by me under the guidance of Dr. Priyanka, Assistant Professor,
Department of Management, School of Management and Commerce, Guru
Kashi University. No part of this dissertation has formed the basis for the
award of any degree or fellowship previously.

Harmanjot Singh Sidhu

University Roll No.: 222021030
Department of Management,
Faculty of Commerce and Management,
Guru Kashi University, Talwandi Sabo
Date:

ii
 CERTIFICATE

I certify that Harmanjot Singh Sidhu, University Roll no. 222021032 has
prepared his/her dissertation entitled " A STUDY OF MULTICULTURAL
LEADERSHIP STRATEGIES USED BY MANAGERS IN CAPITA ", for the
award of MBA degree of the Guru Kashi University, under my guidance.
He/She has carried out this work at the Department of Management,
Faculty of Commerce and Management, Guru Kashi University, Talwandi
Sabo.

Harmanjot Singh Sidhu

University Roll No.: 222021030
Department of Management,
Faculty of Commerce and Management,
Guru Kashi University, Talwandi Sabo
Date:

iii
 ACKNOWLEDGEMENT

This submission represents the final step of two challenging years in Guru
Kashi University. I’m sure I couldn’t have done any of this without the
support of people around me.

I would like to firstly acknowledge my supervisor Dr. Priyanka for her

guidance and support through this research. My SIL, Dr.Manavjot, who was
instrumental in getting me signed up to this course and encouraging me to
complete it despite many other challenges.

A special thanks to my family and loved ones, who have been tolerant and
very encouraging, as I pursued this alongside a full-time role, leaving little
time for the family, but they supported me no matter what.

I would like to thank my colleagues who have actively contributed to my

research and allowed me the space and time to continue my studies.

Finally, I’d like to thank all the people at GKU, who have supported me over
the past two years. This wouldn’t have been possible without you.

Harmanjot Singh Sidhu

University Roll No.: 222021030
Department of Management,
Faculty of Commerce and Management,
Guru Kashi University, Talwandi Sabo
Date:

iv
 ABSTRACT

A STUDY OF MULTICULTURAL LEADERSHIP STRATEGIES USED BY

MANAGERS IN CAPITA

Name of Student: Harmanjot Singh Sidhu

University Roll No.: 222021030
Degree for which submitted: Master of Business Administration
Name of supervisor: Dr. Priyanka
Name of Department: Management
Name of College: Faculty of Commerce and Management
Key words (Five minimum):
Due to Globalization, more companies have the chance to hire people from
all around the world, creating a multicultural workplace. The topic of
Multiculturalism in the workplace is the main theme of several research
topics conducted during the years, and the author of this dissertation
focuses their attention on strategies applied by managers in the workplace.
With this study the author aims to examine the impact that individualist
people have on a multicultural team in a multinational company with
operations in UK, Ireland, South Africa, Bulgaria, Germany, Poland, and
India, exploring the connection between Individualism and the commitment
to a company. For this purpose, the researcher has conducted qualitative
analysis, and semi-structured interviews were carried out. All the
participants are employees of the company chosen, i.e. Capita.

One of the findings of this study shows that individualist people don’t
impact the harmony of the team, on the contrary, they are enthusiastic for
working in a multicultural environment, and are concerned about the
relationships created within the team.

Harmanjot Singh Sidhu Dr. Priyanka (Supervisor)

v
 TABLE OF CONTENTS

Chapter Content
Page No.

Chapter 1
1
Introduction 1

Chapter 2
2
Literature review 9

Chapter 3
3
Research Methodology 26

Chapter 4
4
Data Analysis 40

Chapter 5
5
Findings & Suggestions 49

Chapter 6
6
Conclusion 58

Bibliography
7
62

Appendix
8
67

vi
 List of Figures & Tables

Figure / Table Page

Figure 1. Four Layers of Diversity 12

Figure 2. Multicultural Leadership Strategies 15

Figure 3. Deduction versus Induction 27

Table 1. Thesis Methodology 28

Table 2. Quantitative Method versus Qualitative Method 28

Table 3: Challenges & Benefits of a multicultural workplace 38

Table 4: Interview results summary 42

Table 5: Findings Summary 51

vii
 Table of Contents
Table of Contents.................................................................................................................... viii

Chapter 1........................................................................................................................................ 1

Introduction................................................................................................................................... 1
1.1 Overview of Multicultural Leadership .......................................................................... 2
1.2 The Importance of Diversity in Leadership ................................................................. 4
1.3 Analysing Managerial Strategies in Multicultural Contexts ................................... 5
1.4 Strategies for Managing Cultural Diversity ................................................................ 6
Leadership Definition ........................................................................................................... 7
Strategy Definition ............................................................................................................... 8

Chapter 2........................................................................................................................................ 9

Literature Review ......................................................................................................................... 9

2.1 Key Multicultural Leadership Strategies Used by Managers ................................ 10
2.2 Cultural Diversity in Working Place ........................................................................... 11
2.3 Multicultural Strategies by Makilouko ...................................................................... 13
a) Cultural Ethnocentrism................................................................................................. 15
b) Cultural Synergy ............................................................................................................. 16
c) Cultural Polycentrism .................................................................................................... 18
2.4 Challenges and Opportunities in Multicultural Leadership ................................. 20
2.5 Multicultural Competencies .......................................................................................... 21
a) Cultural Intelligence ...................................................................................................... 22
b) Cross-Cultural Communication.................................................................................... 23
2.6 Developing Multicultural Competencies ..................................................................... 24
a) Acquire foundational understanding .......................................................................... 25
b) Seek multicultural experiences ................................................................................... 25
c) Consolidate learning: Develop theories in use or action plans ............................. 25

Chapter 3...................................................................................................................................... 27

Research Methodology............................................................................................................... 27
3.1 Research Design .............................................................................................................. 28
3.2 Objective of Research...................................................................................................... 31
3.4 Sample of the Study ....................................................................................................... 32
3.5 Methodology of the Study on Multicultural Leadership ......................................... 32
3.6 Findings and Best Practices for Multicultural Leadership (Le, 2015)................. 34
3.7 Empirical Research ........................................................................................................ 36
3.7.1 Data Collection Procedure ...................................................................................... 36
3.7.2 Questionnaire Formulation .................................................................................... 36
3.8 Results of Interviews ...................................................................................................... 37
Interviewees’ Background ................................................................................................. 38

viii
 3.9 Challenges and Benefits of Multicultural Teams ..................................................... 38

Chapter 4...................................................................................................................................... 41

Data Analysis ............................................................................................................................... 41

4.1 Multicultural management methods and tools in Capita ...................................... 42
4.2 Multicultural Management Strategies according to Mäkilouko’s Theory .......... 43
4.3 Data Interpretation ........................................................................................................ 45
4.3.1 Background information of the interviewees ........................................................ 45
4.3.2 Findings on leadership styles based on management methods and tools...... 46
4.3.3 Findings on Multicultural leadership strategies.................................................. 48
4.4 Reliability and Validity ................................................................................................. 49

Chapter 5...................................................................................................................................... 50

Findings and Suggestions ......................................................................................................... 50

5.1 Findings of Study ............................................................................................................ 51
5.2 Findings and best practices for Implementing Multicultural Leadership
Strategies in Capita............................................................................................................... 53
5.3 The Future of Leadership in a Multicultural World ................................................ 56
5.4 Limitation of Study......................................................................................................... 57
5.5 Future Prospect................................................................................................................ 58

Chapter 6...................................................................................................................................... 59

Conclusion ................................................................................................................................... 59
6.1 Conclusion of the study ................................................................................................. 60
Answers for Research Questions ...................................................................................... 60
6.2 Summary ........................................................................................................................... 61

Bibliography ................................................................................................................................. 63

APPENDIX..................................................................................................................................... 68

ix
 Chapter 1
Introduction

1
1.1 Overview of Multicultural Leadership
In today's globalised and diverse business environment, multicultural
leadership has become crucial for the success of organisations
(DiTomaso&Hooijberg, 1996).The increasing diversity in the workforce,
driven by factors such as internationalisation, migration, and globalisation,
poses both challenges and opportunities for leaders. Leaders must not only
navigate cultural differences and effectively communicate with diverse team
members but also leverage the benefits of diversity to drive innovation,
creativity, and overall organisational performance. However, managing
multicultural teams and promoting inclusion is not an easy task. It requires
the implementation of effective multicultural leadership strategies to address
the barriers and challenges that arise from cultural diversity (Le, 2015). This
dissertation aims to explore and analyse the different multicultural
leadership strategies used by managers in organisations. By understanding
and studying these strategies, organisations can gain insights into effective
ways to manage cultural diversity and enhance leadership performance in
multicultural settings.

This study will investigate the role of multicultural leadership strategies in

addressing the challenges of cultural diversity and promote inclusive work
environments. The research will involve interviews with managers from a
multi geography organisation to gather insights into the different strategies
they employ to lead multicultural teams. The findings from this study will
contribute to the existing literature on multicultural leadership and provide
practical recommendations for managers and organisations to enhance their
multicultural leadership capabilities.

By developing a deeper understanding of multicultural leadership strategies,

organisations can create a more inclusive and culturally sensitive work
environment. This will not only improve teamwork and collaboration but
also enhance organisational performance and effectiveness in multicultural
settings. The study aims to contribute to the existing literature on
multicultural leadership strategies and provide practical recommendations
for managers and organisations to enhance their multicultural leadership

2
capabilities. The findings from this study will shed light on the importance
of multicultural leadership strategies in managing cultural diversity and
promoting inclusive work environments.

This dissertation aims to fill a gap in the current literature by exploring and
analysing the different multicultural leadership strategies used by managers
in organisations. It will also provide practical recommendations for
managers and organisations to enhance their multicultural leadership
capabilities and create a more inclusive and culturally sensitive work
environment.

Furthermore, this dissertation seeks to examine how these multicultural

leadership strategies are implemented in daily management to prevent
cultural conflicts. In conclusion, this dissertation focuses on studying
multicultural leadership strategies used by managers in organisations. The
study aims to gather insights into the different strategies employed by
managers to lead multicultural teams, with a focus on addressing the
challenges of cultural diversity and promoting inclusive work environments.
The findings from this study will contribute to the existing literature on
multicultural leadership and provide practical recommendations for
managers and organisations to enhance their multicultural leadership
capabilities. Additionally, the study will explore the concept of cultural
diversity and its benefits to an organisation, as well as provide an in-depth
understanding of multicultural leadership strategies and their importance in
managing cultural diversity (DiTomaso&Hooijberg, 1996).

This research aims to provide valuable insights into the effective strategies
used by managers in addressing cultural diversity and promoting inclusive
work environments (Le, 2015). This research aims to investigate the
strategies used by managers in Capita, to effectively lead multicultural
teams and prevent cultural conflicts. Based on this research, the two main
strategies used in Capita, are Cultural Ethnocentrism and Cultural Synergy.
Based on the study, it can be concluded that multicultural leadership
strategies play a crucial role in managing cultural diversity and promoting
inclusive work environments. In conclusion, this dissertation on

3
multicultural leadership strategies provides a comprehensive analysis of the
strategies used by managers in organisations to effectively lead diverse
teams and create inclusive work environments (DiTomaso&Hooijberg, 1996).
The study highlights the importance of multicultural leadership strategies in
managing the challenges of cultural diversity and emphasizes the need for
managers to take responsibility for creating inclusive and culturally
responsive work environments (Le, 2015).

In conclusion, this dissertation focuses on studying multicultural leadership

strategies used by managers in Capita. The study aims to gather insights
into the different strategies employed by managers to lead multicultural
teams, with a focus on addressing the challenges of cultural diversity and
promoting inclusive work environments. The study used a deductive
approach and qualitative research methods, including observations and
interviews, to collect primary data. The study aims to examine the strategies
used by managers in Capita, to effectively lead multicultural teams and
prevent cultural conflicts. Overall, this dissertation aims to examine the
strategies used by managers in addressing cultural diversity and promoting
inclusive work environments (DiTomaso&Hooijberg, 1996). It aims to provide
recommendations for improving multicultural performance in Capita and
highlights the importance of multicultural competences in diversity
management. The study acknowledges the significance of cultural diversity
in the workplace and recognizes that discrimination is a barrier to effectively
managing diversity (Le, 2015). The study further emphasizes the need for
fair treatment of employees and applicants based on their abilities, rather
than arbitrary characteristics. Furthermore, the study identifies several
strategies that can be implemented to enhance inclusiveness in
organisations.

1.2 The Importance of Diversity in Leadership

Diversity in leadership brings a fresh perspective and enhances decision-
making processes, leading to innovative ideas and improved problem-solving
abilities. Diversity in leadership also increases representation and provides
role models for individuals from marginalized or underrepresented groups

4
(DiTomaso&Hooijberg, 1996). (Stahl &Maznevski, 2021) Additionally, diverse
leadership teams have been shown to increase organisational performance
and effectiveness (DiTomaso&Hooijberg, 1996). Leadership strategies that
embrace and manage cultural diversity are essential for creating an
inclusive and productive work environment.

Strategies for managing cultural diversity in organisations are crucial for

promoting inclusion, fostering positive work relationships, and maximizing
the potential of a diverse workforce. These strategies can include:
establishing clear communication channels to promote understanding and
collaboration among diverse team members, providing cultural sensitivity
training to enhance cross-cultural understanding and minimize
misunderstandings, creating opportunities for employees to learn about
different cultures and perspectives, implementing diversity and inclusion
initiatives at all levels of the organisation, and valuing and leveraging
diversity as a source of competitive advantage.

1.3 Analysing Managerial Strategies in Multicultural

Contexts
Managers in multicultural contexts need to adapt their leadership strategies
to effectively manage cultural diversity and minimize conflicts. This involves
implementing strategies such as systematic learning about cultural
differences and business practices in different countries, training employees
to be sensitive to cross-cultural differences, encouraging employees to
accept overseas assignments, and offering language training to improve
communication skills. In addition, inclusive leadership practices play a
crucial role in managing cultural diversity. Leaders should promote an
inclusive work environment, where all individuals feel valued and respected
regardless of their cultural backgrounds. They should also actively seek
diverse perspectives, promote open communication, and ensure equal
opportunities for all employees. Overall, effective multicultural leadership
strategies involve embracing diversity and inclusion, tackling bias through
training and awareness programs, promoting inclusive meetings and
communication, providing language training, fostering empathy, and

5
understanding, and holding leaders accountable for promoting diversity and
inclusion. In conclusion, managing cultural diversity requires a combination
of strategies that promote inclusivity, communication, empathy, and
understanding. (Stahl &Maznevski, 2021) (Webb et al., 2014).

1.4 Strategies for Managing Cultural Diversity

Cultural diversity brings numerous benefits to organisations, but it also
presents unique challenges for managers. To effectively manage cultural
diversity, managers can implement a range of strategies.
(DiTomaso&Hooijberg, 1996) Firstly, managers can invest in systematic
learning about cultural differences and business practices in different
countries (Konrad, 2006). This will enable them to better understand the
cultural backgrounds and perspectives of their employees and make
informed decisions and adaptations in their leadership approaches.
Secondly, training employees to be sensitive to cross-cultural differences is
essential. This can include providing cultural awareness training, promoting
diversity and inclusion workshops, and fostering open dialogue and
communication among employees. Additionally, encouraging employees to
accept overseas assignments can foster intercultural competence and
broaden their perspectives. Lastly, offering language training to improve
communication skills is crucial in promoting effective cross-cultural
communication and reducing misunderstandings. By implementing these
strategies, managers can create an inclusive and supportive environment
that values and respects cultural differences. These strategies require a
long-term commitment and ongoing effort from leaders. By implementing
these strategies, managers can create an inclusive and supportive
environment that values and respects cultural differences. This dissertation
explores multicultural leadership strategies and their effectiveness in
managing cultural diversity in the workplace. Based on the study on
strategies used by managers and the sources provided, it is evident that
effective multicultural leadership strategies are necessary to manage
cultural diversity in organisations and reap the benefits of a diverse
workforce (Le, 2015). However, many organisations struggle to develop truly

6
multicultural organisations. This article explores best practices and future
trends in managing diversity, emphasizing the importance of long-term
commitment and the positive impact of diversity best practices on employee
morale and retention. The findings of this study highlight the need for
leaders to proactively address cultural diversity challenges through the
implementation of multicultural leadership strategies.

1.5 Leadership Strategy Definition

To understand what a leadership strategy is, it is an essence to define

separately the two terms leadership and strategy.

Leadership Definition
There are many literatures about leadership in organization. However, it is
difficult to precisely define the term leadership as it is a wide concept.
Leadership is evidently the deciding factor to the success or failure of an
organization. It is demonstrated by thousands of published articles and
books dealing with leadership in organizations over the past 40 years to
explore the characteristics of a good leadership. (Stashevsky et al. 2006, 5.)

Leadership, according to Robin (2005), is defined as “the ability to influence

a group towards the achievement of goals” (Stashevsky et al. 2006, 5). More
precisely, House & Wright (1997) defined organizational leadership as the
“ability to influence, motivate and contribute towards the effectiveness of the
organizations of which they are members” (Silverthorne 2005, 59).
Leadership and management are sometimes confused. Kotter (1990) argues
that management is about dealing with organizing, planning, designing rigid
organizational structures and monitoring results against plans. Leadership
is about setting up direction by developing a vision of the future, directing
people towards this vision, and inspiring them to overcome hurdles
(Stashevsky et al. 2006, 5). Nevertheless, there exists a necessary link
between both concepts, and they must go together (Murray 2010). The
excellent leaders have not only leadership skills but also a high level of
management skills.

7
Strategy Definition
Strategy in term of management can be understood as a general direction
and a long-term business policy. It is distinct from short-term tactics and
day-to-day operations. Chandler (1962), the American business historian,
provided an explicit definition of strategy in management as “the
determination of the basic long-term goals and objectives of an organization,
and the adaptation of courses of action and allocation of resources for
carrying out those goals”. (Karami 2007, 3.)

Based on the premise of leadership and strategy definitions, the author can
generalize the concept of leadership strategy. The term can be understood as
the long-term direction to influence, motivate, and contribute towards the
effectiveness of the organization. It provides a series of recommendations
and actions to close the gap between current performance and desired
performance in the future. (Pasmore 2014, 4.)

8
 Chapter 2
Literature Review

9
2.1 Key Multicultural Leadership Strategies Used by
Managers
Based on the research conducted, several key multicultural leadership
strategies have emerged as effective approaches for managing cultural
diversity:

 Embracing diversity and inclusion: Leaders should promote an

inclusive work environment where all individuals feel valued and
respected, regardless of their cultural backgrounds.
 Tackling bias through training and awareness programs: Managers
can provide training and awareness programs to address unconscious
biases and promote understanding among employees.
 Promoting inclusive meetings and communication: Leaders should
create opportunities for diverse perspectives to be heard and actively
seek input from individuals with different cultural backgrounds.
 Providing language training: Managers can offer language training to
employees to improve communication and collaboration among team
members from different cultural backgrounds. - Fostering cross-
cultural empathy and understanding: Managers can encourage
employees to learn about and appreciate the cultural differences of
their colleagues, promoting empathy and understanding in the
workplace.
 Building multicultural teams: Managers should intentionally form
diverse teams to benefit from different perspectives and promote
cultural exchange within the team.
 Encouraging cultural intelligence: Leaders can promote the
development of cultural intelligence among employees, which involves
understanding, respecting, and adapting to different cultural norms
and behaviours.
 Implementing inclusive policies and practices: Managers can establish
policies and practices that support diversity, such as diverse
candidate sourcing, fair promotion processes, and equalopportunities
for career advancement.

10
  Leveraging diversity for innovation and problem-solving: Managers can
harness the diverse backgrounds and perspectives of their employees
to foster innovation and enhance problem-solving capabilities. These
strategies are based on the understanding that cultural diversity
brings both benefits and challenges to an organisation. By
implementing these strategies, leaders can effectively manage cultural
diversity and create a multicultural organisation that values and
leverages the strengths that come from diverse perspectives.

2.2 Cultural Diversity in Working Place

“The Four Layers of Diversity” model developed by Gardenswartz& Rowe
(1994) describes quite clearly the concept of diversity. Individual style and
characteristics which are so-called personality are in the centre. It reflects
how anindividual will be treated, get along with others and progress in the
organization whether she/he is an introvert or extrovert, reflective or
expressive, quick paced or methodical, a thinker or a doer. The second layer
(Internal Dimensions) comprises the six aspects of ourselves over which we
have little control. Gender, age, sexual orientation, race, ethnicity, and
physical ability influence the way a person behaves in an organization, the
roles she/he plays in life and her/his expectations. The third layer (External
Dimensions) comprises the result of life experience and personal choices.
They are religion, education, marital status, work experience and
recreational habits. The last layer, which is so called Organizational
Dimensions, includes management status, union affiliation, work location,
seniority, divisional department, work content/field and functional level
classification. This layer is influenced by the organization on how they treat
their employee and the productivity of the organization. (Gardenswartz et al.
2009, 38.)

11
Figure 1: Four Layers of Diversity (Gardenswartz et al. 2009, 38)

Diversity is simply understood as the “multitude of individual differences

and similarities that exist between people” (Treven et al. 2007, 29). As this
thesis concentrates on the notion of cultural diversity, it seems suitable to
clarify the term cultural diversity in more detail. A broad range of definitions
have been given to the term of culture in the previous chapter. Simply put,
culture is seen as “collective programming of the human mind” that
distinguishes the members of one human group from those of another
(Hofstede 2005, 3-4). Based on this premise, Cox (1993) generally specified
cultural diversity as “the presentation, in one social system of people with
distinctly different group affiliations of cultural significance” (Romanenko
2012, 16). Cultural diversity happens when the differences in race,
ethnicity, nationality, religion, and sexual orientation are represented within

12
working place (Amadeo 2014). It offers not only benefits, but also costs for a
team or an organization (Yulk2010, 473). People from different races,
religions, nations, etc. have different life experiences, points of view and
innovative ideas. These differences can strengthen the productivity and
creativity of the group if they are valued and integrated into the group
dynamics. The European Union Commission studied 200 companies in
2003 and found three areas where diversity mattered:

 Marketing: A diversity workforce builds trust in corporate’s brand with

a diverse target market (Amadeo 2014).

 Operations: Full utilization of a diverse workforce will increase the

amount of available talent for filling important jobs (Yukl 2008, 474).

 Innovation: A diverse workforce better understands the market’s

needs as they share the values of diverse markets. The team can
successfully come up with new ideas and create new products that
satisfy the target market. (Amadeo 2014.)

However, mismanaging cultural diversity can also weaken a group. Mis-

communication, awkwardness and inefficiency coming as the result will
apparently happen due to the differences in interpretation of events (Amadeo
2014). Thus, managing cultural diversity is an important but challenging
responsibility of leaders in the twenty-first century (Yukl 2008, 474).

2.3 Multicultural Strategies by Makilouko

What then is multicultural leadership? How can leaders build strategies for
leading culturally diverse teams? Multicultural leadership, according to
Mäkilouko (2003), means leading heterogeneous teams which include
members from two or more cultures. They may work at the same place or
different locations. Multicultural leadership comprises various demanding
issues such as leadership, individual differences, team context, task
content, organizational behaviour, and cultural differences. Different
personalities, leadership styles,leaders’ skills and experiences are important
variables that have been found to alter the leadership strategy. When
leaders have some basic knowledge about the perspectives mentioned above,

13
they can start building a cultural strategy. (Mäkilouko 2003, 14-15.)

Mäkilouko (2003) has pointed out that there are four major strategies to
manage cultural diversity teams: cultural ethnocentrism, cultural synergy,
cultural polycentrism and cultural geocentrism. Mäkilouko (2003) has also
clarified that cultural geocentrism is hardly applied in practice. Thus, this
thesis only examines the first three strategies as they are considered more
practical in working place.

The strategies are designed based on different national cultures, leadership

beliefs, and personal leader orientations. There is no single strategy is right
for all situations. Strategy can be changed based on the circumstances,
knowledge, and experiences of team leaders. Cultural ethnocentrism means
that leaders use their leadership styles and ignore the others’ cultures. This
strategy is the most used by multicultural leaders. It is also the strategy for
starting point with a new team and cultural mix. Cultural synergy strategy
means leaders seek cultural similarities among team members regarding
teamwork. Finally, polycentrism is themost advanced strategy and usually is
developed after ethnocentrism and synergy. Polycentric leaders try to adjust
to the cultures of their team members. In order words, leaders behave
differently according to team members’ culture. This seems to be the most
effective multicultural leadership strategy. Nevertheless, this strategy is
successful only for leaders who have lots of experiences with multicultural
team and a high level of knowledge about culture. (Makilouko 2003, 85-86.)

The relationship between cultural leadership strategies and level of cultural

learning is presented in the figure below.

14
Figure 2: Multicultural Leadership Strategies (Modified from Mäkilouko
2003, 88)

a) Cultural Ethnocentrism
In sociology and psychology, the term ethnocentrism is used to explain
discriminatory attitudes and behaviours between different cultural entities.
Sumner (1906) has defined ethnocentrism as “the view of thing in which
one’s group is the centre of everything, and others are scaled and rated with
reference to it”. (Sinkovics et al. 1994, 3.) In psychology, ethnocentrism is
described as the tendency of an individual to consider strongly his or her
own ingroup and culture; and the tendency to reject outgroups or to view
any social, political, or cultural events only from the perspectives of the
ingroup (Sinkovics et al. 1994, 3). Based on that, Mäkilouko (2003) defined
the term ethnocentrism in cultural management as “the belief that one’s
own way of life or culture is superior to others”. In other word, leaders see
the world solely from their perspectives and do not consider other
perspectives in their leadership. The rest of the team should follow
theirleader’s style. In a very diverse team, it is difficult to master all the
cultures. Furthermore, it is no time to create synergy because the work

15
needs to start immediately. This strategy is the easiest approach as it is fast
and requires no focus on culture. Ethnocentrism is often used at the
starting point when the leader first cooperates with the team. It is then
possible to proceed with the work regardless of cultural differences.

In rational approach, team leaders usually reason based on fundamental

rules and laws to form a base for the teamwork. It can be the goal of
completing a project or the target to increase company’s profit. Those are
universal laws of nature that everybody can agree with. Rational approach is
applied when leaders have little or no knowledge about the different
cultures. Often, this happens under pressure with no time to build
relationships and understand each team member’s expectations.

A plan is always necessary for any project. However, leaders often tend to
forget mentioning such information as details how things should be done,
what to do when the work is delayed, who should be informed first if
something goes wrong. It seems not to be necessary when team members
share similar cultures and common work experiences with each other. It is,
however, vital for a new team,new leader, or a team with cultures totally
different from each other.

A detailed plan can only reduce confusion. A leader with little knowledge
about culture will certainly face some issues coming surprisingly. Thus, the
best way to minimize such problems is careful control and supervision. That
should be in the form of written reports. Another tool for supervision is
regular meeting or discussion. Wide distribution by email is also a good
technique to make sure that every team member is informed. Once the
message is transparent, there is no room for confusion and
misunderstandings happening. Ethnocentrism is applied when cultures are
so different within a team.

b) Cultural Synergy
What does synergy mean? In the multicultural leadership context, the word
synergy means that leaders combine the strengths of all the members in
their teams. Rules and norms are developed by all the members to fit the

16
social situation and support the team performance. This leadership style is
effective to manage a multicultural team. Synergistic leaders pay more
attention to solve the different expectations in their teams and encourage
people to learn from each other. Common agreements about the teamwork
should not be left unclear. However, the process of the teamwork is longer
because of a larger number of differences. Lack of face-to-face interaction
will slow the process further.

Different people have different expectations regarding the practicalities of

teamwork. The differences are even larger when cultures are mixed within a
team. A foreign team member may feel anxiety because he or she is not
accustomed to foreign manner of teamwork. A common agreement at the
beginning of the work is therefore necessary to avoid the confusion among
team members. Cultural similarities should be found and discussed to form
the basis for this new strategy. To approach cultural synergy strategy,
knowledge about cultures and how people work together in different
cultures are required. (Mäkilouko2003, 90-91.)

Learning about culture requires the leader to make effort to build good
relationships with the team members. Relationships bring the cohesion to
the team. This means a lot in reducing the confusion and mistakes between
different cultures. Trust is also formed based on relationships which are
usually used to resolve problems in a manner that does not break the cycle
of trust. Leaders taketime to get to know their team members and fully
utilize all the strengths of all the people and cultures involved. Further, an
active leadership style is required to be applied in a synergistic team. This
means a lot of discussions and personal interaction with team members.
(Mäkilouko2003, 93-95.)

However, it should be noticed that it is difficult to create cultural synergy in

a multicultural team. There is often not enough time for learning from each
other, particularly in an environment where the work needs to be done
immediately.Furthermore, it is always difficult to change people, especially
when habits andpatterns of thinking have their roots in the national culture.
A team based on cultural synergy means that the team members must get

17
used to the new way of working together. The team leader needs to be
flexible and to make sure that the common agreements are executed. This
strategy is applied when cultures are like each other. (Mäkilouko2003, 96.)

c) Cultural Polycentrism
Mäkilouko (2003) believed that the polycentric leadership style is the most
effective multicultural leadership strategy. The term polycentrism is used
widely in international business management. Polycentrism-oriented
businesses adopt the belief that every country is unique and needs a
different approach (Wright 2014). In the cultural context, Mäkilouko (2003)
defined polycentrism as the way that leaders treat cultures with respect and
try to preserve them as they are in their teams. In other words, leaders try to
learn about cultures and adjust their styles according to the differences.
Each culture in the team is treated differently. According to Mäkilouko
(2003), this strategy works effectively when team members are in various
countries. Often the team members have fewer opportunities to learn about
culture from each other. (Makilouko 2003, 119.) The leaders in these teams
usually work as integrators between cultures. However, polycentrism is seen
to be the hardest strategy to apply. It requires a high level of experience in
leadership and with multicultural teams. To successfully apply
polycentrism, ethnocentrism and synergy are usually preceded. (Makilouko
2003, 86.)

Polycentric leaders are confident about understanding different behaviours

in their teams. This knowledge is collected through experiences.
Furthermore, polycentric leaders always seek learning opportunities.
According to Mäkilouko (2003), polycentric leaders have three major
personal characteristics: cognitive complexity, emotional energy, and
psychological maturity. The cognitive complexity is the ability to relate, learn
and understand other cultures. Emotional energy is needed to handle
emotions arising from uncomfortable and stressful situations. Finally,
psychological maturity is understood as a degree of emotional resilience to
maintain a proper attitude and cultural empathy in all circumstances.
(Makilouko 2003, 121.)

18
Polycentric leaders sometimes delegate their authority to their team
members. It seems impossible to supervise daily or weekly when the team
members are in various countries. Dispersed teams tend to need some team
memberswho are accustomed to autonomy. Autonomy often increases trust,
commitment, and motivation. However, it requires a supportive team design
and effective communication. Relationships and trust are the characteristics
of an effective multicultural team. Whereas synergistic leaders try to build
relationships and trust among team members, polycentric leaders make
effort to maintain the established relationships and trust. (Makilouko 2003,
124-127.)

Another characteristic of cultural polycentrism is interaction facilitation. The

term facilitation literally means “to make easy”. The task of facilitator is to
create an environment where complicated work is made easier for
participants (Jones 2002). Polycentric leaders usually seek to facilitate
interaction among the team members. In other words, they try to make
complex communication easier. People tend to communicate directly with
whoever is considered to need the information or to have the answer for a
certain problem. As a result, the team receives directions from many people.
The result is often chaos that delays the work. The problem is common
when team members are in many countries. Thus, a detailed
communication plan is seen as a solution for this communication
chaos.Team members need to have basic rules of keeping the leaders and
other team members informed about the problems and how they are
approached. This helps to prevent the confusion and conflict information
during the teamwork. (Makilouko 2003, 128-129.)

In summary, according to Mäkilouko (2003), there are three practical

strategies that are used in managing cultural diversity. Cultural
ethnocentrism means that leaders do not consider other cultures in their
leadership. They tend to build system and detailed plan to minimize the
confusion. The strategy is often applied when the team is first established,
or the leader has little knowledge about cultures. Cultural synergy, on the
other hand, means that leaders try to combine similarities among culturally

19
different members. By doing this, team leaders can create a shared way of
working together within their teams. The key word is cognitive strategy. It
means how leaders solve the different expectations, learn from each
other,and create common agreement towards the teamwork. The last
strategy is cultural polycentrism. This is considered the advanced strategy
which is usually applied after developing cultural ethnocentrism and
cultural synergy. Polycentricleaders have good knowledge of culture and
adjust their styles to agree with cultural preferences.

2.4 Challenges and Opportunities in Multicultural Leadership

The challenges and opportunities in multicultural leadership are
multifaceted.Challenges include:

 Overcoming biases and stereotypes: Leaders must be aware of their

own biases and work to overcome them to effectively manage diverse
teams and create aninclusive and equitable work environment.
 Language and communication barriers: Leaders must find ways to
bridge language and communication gaps among team members from
different cultural backgrounds to promote effective collaboration and
problem-solving.

Opportunities include:

 Harnessing the power of diverse perspectives: Multicultural leadership

allows for the exploration of new ideas, approaches, and solutions that
can drive innovation and creativity within the organisation.
 Building inclusive and collaborative team culture: Leaders should
foster an environment where everyone feels valued, included, and
empowered to contribute their unique perspectives and experiences to
achieve common goals.
 Creating a sense of belonging: Leaders should strive to create a sense
of belonging for all team members, regardless of their cultural
background. This can be achieved by fostering a supportive and
inclusive work environment where individuals feel valued, respected,
and included.

20
  Promoting cultural diversity in leadership: Leaders should actively
seek out and promote individuals from diverse cultural backgrounds
to leadership positions, ensuring that different perspectives are
represented, and decision-making is more inclusive and representative
of the diverse workforce.##Strategies for Multicultural Leadership

2.5 Multicultural Competencies

To develop multicultural leadership strategy, leaders need to know how
competent they are and how to develop them. Two crucial multicultural
competences necessary for global leaders: cultural intelligence and cross-
cultural communication.

The term competencies is defined by Pritchard (1999) as the knowledge,

skills, abilities, personal characteristics, and other person-based factors that
help distinguish between outstanding performance and average performance
(Connerley 2004, 70). Multicultural competences generally mean the
knowledge, skills, abilities, and personal characteristics that help leaders
work successfully across cultures. It is essential to understand that
multicultural competent is more than just being polite or empathetic to
people from other cultures. Leaders should know how to capitalize on
cultural diversity in their teams to make the work done. (Steers et al. 2013.)
They include skills such as:

 Understanding cultural differences

 Changing and creating group cultural norms
 Communicating across cultures
 Dealing with conflict
 Developing trust-based relationships
 Understanding the constraints and opportunities imposed by the
micro- context of an interaction.
 Manipulating the constraints and opportunities when appropriate
(Steers et al. 2013)

Nevertheless, the competency lists are various as many researchers have

attempted to define the characteristics of multicultural competency. Thus, it

21
seems to be difficult to determine which multicultural competencies are
important. (Connerley 2004, 70-71.) Due to the small scope of this research,
the thesis concentrates on only two competencies which the author believes
to be most important.

a) Cultural Intelligence
Cultural intelligence, or so-called CQ, is defined as an individual’s capacity
to function effectively in multicultural settings. Ang & Dyne (2008) have
showed in their research the four-factor model of CQ. Earley and Ang (2003)
theorized that CQ is a multidimensional concept that includes
metacognitive, cognitive, motivational, and behavioural dimensions.
Metacognitive CQ reflects the mental ability to acquire and understand
cultural knowledge. Cognitive CQ reflects general knowledge and knowledge
structures about culture. Motivational CQ reflects individual capacity to
direct energy towards learning about and functioning in intercultural
situations. Behavioural CQ reflects individual capacity to exhibit appropriate
verbal and nonverbal actions in multicultural interactions. (Ang & Dyne
2008, 4-5.)

 Metacognitive CQ: The leaders with high metacognitive CQ show high

level of cultural awareness during cross-cultural interactions. First,
they are aware of their own assumptions, reflect during interactions
and adjust their cultural knowledge when interacting with those from
other cultures. For example, a Western leader with high metacognitive
CQ would be mindful about the appropriate time to speak up during
meetings with an Asian team member. Metacognitive CQ reflects
mental processes that leaders use to acquire and understand
differences in culture. Additionally, there are several relevant
capabilities including planning, monitoring, and revising mental
models of cultural norms for culturally different groups. The leaders
with high metacognitive CQ are aware of the cultural preferences
during interacting with the team members. (Ang & Dyne 2008, 5.)
 Cognitive CQ: This term reflects knowledge of norms, practices and
conventions in different cultures that have been acquired from

22
 experiences. The cognitive factor of CQ is a critical component
because knowledge of culture influences people’s thoughts and
behaviours. There are systems that shape and cause specific patterns
of social interactions. Leaders who have high cognitive CQ better
appreciate these systems and effectively interact with people from
different cultures. (Ang & Dyne 2008, 5-6.)
 Motivational CQ: Motivational CQ refers to the ability to direct
attention and energy towards learning about and functioning in cross-
cultural situations.According to Eccles &Wigfield (2002), the direction
and level of energy towards a particular task involves two elements:
expectation of successfully accomplishing the task and the value
associated with accomplishing the task. This is the critical component
of CQ because it is a source of drive. Leaders with high motivational
CQ make more effort to learn the differences in cultural settings and
to try to work things out. (Ang & Dyne 2008, 6.)
 Behavioural CQ: This term refers to the extent to which leaders act
appropriately (both verbally and nonverbally) in cross-cultural
situations. The leaders with high behavioural CQ are flexible and can
adjust their behaviours to the specifics of each cultural interaction. In
cross-cultural situations, nonverbal behaviours are significantly
important. On face-to-face contact, individuals do not know each
other’s thoughts, feelings, or motivation. Vocal, facial, and other
outward expressions are the only things they can rely on. Because of
that, the behavioural component of CQ may be the most critical factor
which is used to assess other’s CQ. (Ang & Dyne 2008, 6.)

b) Cross-Cultural Communication
In the team that comprises culturally diverse members, the most challenge
seems to arise from the cross-culture integration. Different languages and
culturally different perspectives can make the interaction even harder to
interpret and respond. Thus, Matveev and Nelson (2004) believed that a
skilled multicultural leader must obtain cross-cultural communication
competency to address any performance challenges. (Congden et al. 2009,
74.) A high level of cross-cultural communication is required to successfully

23
obtain information from a culturally different colleague. Previous literatures
have found out several characteristics of cross-cultural communication
competence. They are relationship skills, communication skills and personal
traits such as inquisitiveness. Apart from the knowledge of different
languages and cultures, cross-cultural communication competence also
requires affective and behavioural skills. These skills are, forinstance,
empathy, human warmth, charisma, and the ability to manage anxiety and
uncertainty. (Congden et al. 2009, 74-75.)

The Cross-Cultural Communication Competences Model (Matveev& Nelson,

2004; Matveev, Rao & Milter, 2001) comprises four dimensions:
interpersonal skills, team effectiveness, cultural uncertainty, and cultural
empathy. In the interpersonal skills dimension, team leaders acknowledge
the differences in the communication styles of people from different
cultures. They are flexible in solving misunderstandings and feel
comfortable in interacting with foreigners. Team effectiveness dimension
comprises the ability to clearly communicate team goals, roles, and norms to
other members in multicultural teams. Cultural uncertainty dimension
reflects the ability to display patience in intercultural situations. He or she
can be tolerant of ambiguity and uncertainties arising from cultural
differences. Last but no mean least, cultural empathy includes the ability to
understand the world from other’s cultural perspectives. Cultural empathic
leaders appreciate different working styles and accept things done in
dissimilar ways. (Congdon et al. 2009, 75.)

2.6 Developing Multicultural Competencies

Multicultural competence is a matter of degree. Most leaders with their high
level of education and experience understand how behaviours can differ
across cultures. The challenge is therefore to enhance this set of skills in
ways that leaders can capitalize on. (Steers et al. 2013). There are three
principal strategies suggested by Steers et al. (2013) to develop multicultural
competences:

24
a) Acquire foundational understanding
At the beginning, leaders can start to work on discovering human behaviour
to be able to explain how it can be influenced by cultural and contextual
variables. This knowledge can be used in facilitating sense making when
they are exposed to an unusual circumstance. They can acquire the
knowledge through seeking information about culture and human behaviour
in general. The knowledge then is narrowed down to specific cultures in
their teams. The goal is to better understand one’s behaviours, not to judge
them. The leaders can work to enhance their ownself -awareness and
understanding. They need to know their own values, beliefs, styles, and
patterns of behaviour and be able to explain them to others as well. It also
includes recognizing the lack of desired effects in cross-cultural settings. For
instance, a leader that is typically direct in communication may need to
adjust or explain his or her style so that individuals from indirect cultures
do not feel insulted. (Steers et al. 2013.)

b) Seek multicultural experiences

People learn and develop based on their past experiences and mistakes. This
is the essence of experiential learning that we try, make mistakes, and learn
from them. Fortunately, leaders can seek multicultural experiences
everywhere. Nowadays, it is becoming easier to have a multicultural
experience as the level of global migration is increasing significantly (Steers
et al. 2013). Multicultural leaders can become involved with foreign
community events outside the work, social and political functions,
celebrations, friendships, neighbourhood groups and so forth (Sue et al.
1992, 484).

c) Consolidate learning: Develop theories in use or action plans

In this stage, the leaders apply the knowledge that they have learned from
stage 1 and 2. The challenge of developing multicultural competences is not
just to learn but also to apply learning in practice. Once the leaders
understand what is required, they will adjust their behavioural strategies,
create, and experiment with new action plans in the field. For instance, a
leader who has realized his or her tendency to direct communication needs

25
to figure out which skills make him or her more indirect. Then, he or she
will experiment with new skills and develop them into cross-cultural
communication. (Steers et al. 2013.)

26
 Chapter 3
Research
Methodology

27
3.1 Research Design
In order to conduct research, researchers must define how to possibly
approach data collection and analysis from either a deductive or an
inductive perspective (Saunders et al 2007, 489). According to Yin (2003), a
research project using a deductive approach is based on existing theory or
knowledge that is further used (Saunders et al 2007, 490). A deductive
approach begins by looking at the theory, building hypotheses from that
theory, which relate to the focus of the research, and then designs a
research strategy to test the hypotheses (Wilson 2010, 13).

Conversely, Inductive approach starts with data collection and then

proceeds to develop a theory. A successful inductive approach may involve a
lengthy period of time and prove to be resource intensive (Saunders 2007,
490)

Deductiveapproach Inductiveapproach

Theoretical Observations /
applications Findings

Observations/ Theoryas an
Findings outcome

Figure 3: Deduction versus Induction (Modified from Wilson 2013, 13)

This thesis is based on already existing theory and knowledge. The literature
review is formed to determine the theories that will be tested. Furthermore,
the author had a limited period of timebetween working in Capita and
conducting research; generating new theory is therefore unfeasible. Due to
the nature of the thesis topic and available time, this thesis uses deductive
approach for conducting the research.

28
 Research
ResearchMethod DataCollection
Approach
An overview of this thesis’s methodology is demonstrated by the Table below:

• Deductive • Qualitative • Primary:Inte

rviews,obser
vations
• Secondary:book
s,
journals,articles,
previousstudies
in theliterature
andelectronicso
urces
Table 1: Thesis Methodology

The next stage after defining the research approach is to choose the
research method for analysing collected data. There are two methods of
research: quantitative research method and qualitative research method.
Quantitative method generates statistics by using large-scale survey
research such as questionnaires or structured interviews. In contrast,
qualitative method explores the behaviour, attitudes and experiences of
objects through individual interviews or focus groups (Dawson 2012, 14-15).
Table below illustrates the differences between the two methods:

Quantitative Qualitative

 Basedonmeaningsderivedfr  Basedonmeaningsexpressedfr
omnumbers omwords

 Large-scalesurvey  Semi-
structured/unstructuredinterv
 Analysisconductedthroughtheu
iews
seofdiagramsandstatistics
 Analysisconductedthroughtheu

29
 seofconceptualisation

Table 2: Quantitative Method versus Qualitative Method (Modified from

Saunders et al. 2009)

Qualitative method was employed in this thesis to analyse the data

collected. The purpose of choosing qualitative method was to get a deep
understanding about the issue. The author believed that qualitative method
was best applied to this thesis since he had the opportunity to work in the
case company. Thus, the face-to-face interviews with company’s team
leaders became easier and more open. Since the information acquired from
eachinterviewee was expected to vary a lot, qualitative method with the
limited number of interviewees was appropriate to get detailed answers.

Data collection is a series of interrelated activities aimed at gathering

substantial information to answer the research questions. Choosing data
collection method is therefore important for revealing the correct result. In
this particular study, secondary data was collected from books, journals,
articles, company’s website and other relevant sources. In order to collect
primary data, participant observations, semi-structured interviews were
employed.

Participant observation means that the researcher participates in the lives

and activities of subjects and thus becomes a member of their group,
organization or community. The researcher experiences not only by merely
observing but also feeling what is going on. (Saunders et al. 2009, 290.).
This data collection method worked effectively since the author was not only
an employee at the company, but also a part of the foreign community in the
case company. The author had a great chance to observe the differences in

30
the leadership styles among the team leaders. Aside from that, he
understood profoundly the real multinational working environment in the
company. The data was collected by observing the activities, particular
events, the attendant processes and emotions involved.

Apart from observations, semi-structure interviews were chosen to collect

the primary data. Semi-structured interview is popularly used in qualitative
research. In semi-structured interviews, the researcher designs a list of
questions and themes which probably vary from interview to interview. The
order of the questions is changeable depending on the flow of the
conversation. On the other hand, additional questions may be required to
explore the research questions. The purpose of using semi-structured
questions is to narrow down the possible answers but still keep the
discussion open. (Saunders et al. 2009, 321.).

The semi-structured interview in this thesis was conducted on a face-to-face

basic. The purpose of the face-to-face interview was to get more valid and
reliable data from the objects. Since the author worked full-time in the case
company during conducting the research, he had no difficulty setting up the
meetings with the participants involved in the interview process.

3.2 Objective of Research

The objective of this study is to understand the strategies used by team
leaders in Capita to manage multicultural teams in a global work
environment.
Thus, the research question is: What multicultural leadership strategies are
used to manage international teams in Capita?

3.3 Research Questions:

In order to answer the question of strategy, the author needs to study the
perception of leaders on multicultural issues, management activities and the
tactics used to solve the problems. Therefore, sub-questions are designed
as:

31
  How do Capita’s team leaders perceive the importance of cultural
diversity in the organisation?
 Which tools and methods are used by Capita’s team leaders to
manage cultural diversity?
 How do they solve the cultural problems and prevent them from
happening in the future?
 Which multicultural leadership strategies are used to manage
international teams in Capita?

3.4 Sample of the Study

Capita company has been selected for this research. A leading provider of
technology solutions and business process services, driven by data,
technology and people.

Employing over 40,0000 people across multiple countries in Europe, India

and South Africa. The employees help millions of people, by delivering
innovative, digitally enabled solutions to transform and simplify the
connections between government and citizens, businesses and customers.

Capita is driven by its purpose: to create better outcomes – for employees,

clients and customers, suppliers and partners, investors, and society.

Capita is committed to being a responsible business – in how it operates,

serves society, respects its people and the environment, and delivers
attractive returns to our investors.

Capita partners with clients and provides them with the insight and cutting-
edge technologies that give time back, allowing them to focus on what they
do best and making people’s lives easier and simpler. For more details, refer
bibliography.

3.5 Methodology of the Study on Multicultural Leadership

The study on multicultural leadership strategies utilised a deductive
approach with the assistance of qualitative research methods. Secondary
data was collected from reliable books, articles, and the internet. The study
aimed to explore the concept of multicultural leadership, understand the

32
challenges and benefits of cultural diversity in organisations, and identify
effective strategies for managing and promoting multicultural leadership.
The study employed a combination of literature review and interviews with
managers from Capita who have experience in leading diverse teams. The
data collection involved conducting interviews with managers and leaders
who have experience working in multicultural environments. The analysis of
the data involved identifying common themes and patterns in the managers'
responses regarding their strategies for managing cultural diversity. These
strategies were then analysed and discussed to develop practical
recommendations for leaders in managing multicultural teams.

The findings from the study indicated that there are various strategies that
managers can employ to effectively lead multicultural teams (Le, 2015).
These strategies include promoting diversity awareness and cultural
competency among employees, creating an inclusive and supportive work
environment, developing clear communication channels, providing
opportunities for cross-cultural training and knowledge sharing, and
fostering a culture of respect and appreciation for diversity. Additionally, the
study highlighted the importance of leadership commitment and support for
these strategies to be successful. The study also identified several challenges
and barriers that managers face when managing cultural diversity, such as
language barriers, communication misunderstandings, cultural clashes, and
resistance to change.

To overcome these challenges, the study suggests that leaders should

prioritize cultural sensitivity and empathy, actively seek input and feedback
from team members, encourage open dialogue and collaboration, and
implement fair and inclusive policies and practices (DiTomaso&Hooijberg,
1996). Furthermore, the study emphasized the need for ongoing evaluation
and assessment of multicultural leadership strategies to ensure their
effectiveness and make necessary adjustments. Overall, the study aimed to
provide insights into effective strategies for managing and promoting
multicultural leadership in organisations.

33
3.6 Findings and Best Practices for Multicultural Leadership
(Le, 2015)
The study found several key findings and best practices for multicultural
leadership:

1. Promoting diversity awareness and cultural competency: Leaders

should actively promote diversity awareness and provide training on
cultural competency to their team members. This will help team
members understand and appreciate different cultures, perspectives,
and ways of working.
2. Creating an inclusive work environment: Leaders should strive to
create an inclusive work environment where everyone feels valued and
respected, regardless of their cultural background. This can be
achieved by promoting open communication, encouraging
collaboration, and fostering a sense of belonging for all team
members.
3. Implementing fair and unbiased policies and practices: Leaders
should ensure that organisational policies and practices are fair and
unbiased towards all employees, regardless of their cultural
background. This can include implementing diversity and inclusion
initiatives, providing equal opportunities for all employees, and
addressing any bias or discrimination that may arise.
4. Building relationships and promoting cross-cultural communication:
Leaders should actively foster relationships and promote cross-
cultural communication among team members. This can be done by
creating opportunities for team members to interact and learn from
each other, promoting cultural exchange programs, and encouraging
open dialogue and understanding.
5. Developing cultural intelligence: Leaders should strive to develop their
own cultural intelligence, which is the ability to understand,
appreciate, and adapt to different cultures. This can be done through
self-reflection, seeking feedback, and continuously educating oneself
about different cultures.

34
6. Investing in diversity and leadership development: Organisations
should invest in diversity and leadership development programs to
equip leaders with the necessary skills and knowledge to effectively
manage a culturally diverse workforce (Webb et al., 2014). These
programs can include workshops, trainings, mentorship
opportunities, and ongoing support for leaders to enhance their
multicultural leadership capabilities. Additionally, leaders should
actively promote diversity awareness and provide training on cultural
competency to their team members. This will help team members
understand and appreciate different cultures, perspectives, and ways
of working.
7. Promoting cultural competence and awareness: Leaders should
promote cultural competence and awareness among team members by
providing resources, trainings, and workshops on different cultures.
This will help team members develop a deeper understanding and
appreciation for diverse perspectives, values, and ways of working,
ultimately fostering a more inclusive and collaborative work
environment (Alemu, 2015).
8. Implementing diversity initiatives: Organisations should create
diversity initiatives that address the demographic changes in the
labour force and customer base.
9. Encouraging inclusive decision-making: Leaders should create a
culture of inclusivity where everyone's voice and perspective are
valued.
10. Leveraging diversity as a competitive advantage: Leaders should
recognize and leverage the unique perspectives and experiences that
diverse team members bring to the table (Alemu, 2015).
11. Emphasizing the importance of cultural diversity: Leaders
should recognize and communicate the value of cultural diversity in
driving innovation, creativity, and organisational success (Webb et al.,
2014).

35
 12. Providing ongoing support and mentorship: Leaders should
provide ongoing support and mentorship for diverse team members to
ensure their success and development within the organisation.

3.7 Empirical Research

3.7.1 Data Collection Procedure
The case company’s information was collected mostly from Capita’s official
website. Data was also collected from the experiences of the author during
the time working in the case company. He observed and took note about
significant activities and events related to multi-culture. Furthermore, as a
foreign employee, he had a great chance to discuss with other foreigners and
understand their expressions towards their team leaders. This stage took
place through 2023 & 2024.

Meanwhile, the questionnaire was being prepared for the interview with the
team leaders of the company. The interviewees were contacted by emails at
the beginning of February 2024. An email with a brief introduction to the
research topic and embedded interview questions was sent out to the five
team leaders. It was approximately 20 minutes for each interview to take
place. Dates and times of the interviews were arranged up to the schedule of
the interviewees. Two kinds of questionnaire were attached in the email sent
to the interviewees: 1) the open- ended questionnaire and 2) the Likert-scale
questionnaire.

Since not all the team leaders in Capita are managing multinational teams,
the author had to carefully consider the suitable candidates to acquire the
valuable information. There were five invitations sent to the candidates and
100% positively responded. All candidates are currently managing
multinational teams. The interviews took place virtually during February
and March 2024.

3.7.2 Questionnaire Formulation

The questionnaire is one of the most widely used data collection techniques
in the survey strategy. To ensure the quality of the answer for the research

36
question, the researcher must produce a good questionnaire as there is only
one opportunity to collect the data. (Saunder et al. 2009, 361.)

There are two types of questionnaires designed for the primary data
collection in this thesis: open-ended questionnaire and closed questionnaire.
Open-ended questions may be more appropriate in qualitative research
method as they can capture the specificity of a particular situation. They
enable the respondents to give the answers as much as they wish. Thus,
they are used for investigating a complex issue. (Saunder et al. 2009, 362.).
The closed questionnaire in this thesis is based on the Likert scale. Likert
scale is a five-point scale used to allow individuals to express how much
they agree or disagree with a particular statement. (Leod 2008.)

In this thesis, the open-ended questionnaire was categorised into three

parts. The first part was the background questions which were designed to
better understand profiles of the interviewees and the reasoning behind
their answers. The second part of the questionnaire was to explore the
importance of multiculturalism on perspectives of the interviewees. Four
questionnaires of the third part aimed at studying which multicultural
strategy and management tools are used by the team leaders. All questions
were linked to the theory and the literature. The questionnaire can be found
in Appendix.

The closed questionnaire, or so-called the Likert-scale questionnaire was

designed based on the multicultural leadership strategies developed by
Mäkilouko (2003). In this thesis, the main objective of the questionnaire was
to study which strategy among the three strategies (synergy, ethnocentrism,
and polycentrism) was used most by Capita’s team leaders. The Likert scale
measured either positive or negative respond to the statement about
leadership style. Option three was the neutral answer which was chosen
when the interviewee neither agreed nor disagreed with the statement.

3.8 Results of Interviews

This section focuses on the answers of the interviewees without analysing
them. Analysis and recommendations are discussed in detail in chapter 4.

37
The first part reveals the information background of the team leaders. The
second part reveals the challenges and benefits that multiculturalism brings
to the teams and the company. The third part reveals the result of
management methods and tools which are then used to evaluate the
multicultural strategies. Finally, the result of multicultural leadership
strategies based on Mäkilouko (2003)’s theory is presented in the final part.

To keep the answer’s objective, the author had to compromise not to publish
the interviewees’ personal information such as name, team, or department
in the final thesis. However, the information about foreign experiences and
the number of foreign employees in the team is allowed to be published
since this is a part of the thesis analysis. The names of the interviewees are
coded with letters A, B, C, D and E which are used in interpreting and
analysing the answers.

Interviewees’ Background
Having experiences abroad always bring advantages for leaders to manage
multi- cultural teams. Interviewee A manages two foreigners in her team.
Interviewee B manages 35 employees, 10 of them are foreigners. They come
from mostly Europe and some from Asia. Interviewee C has only 9
employees of which there are two foreigners. Interviewee D is managing 15
employees of which there are seven foreigners. Interviewee E manages only 1
foreign employee. His experience in terms of multicultural management,
however, is not less than the other interviewees. Before the current position,
he used to work as a team lead enabling multi-cultural. The table in
Appendix 4 lists the names of the interviewees,

3.9 Challenges and Benefits of Multicultural Teams

Three interviewees find it challenging to manage the multicultural teams.
Different cultures share different ways of behaviours and expectations
towards the team leaders. Communication is also mentioned as a challenge
in multicultural team. For some countries that are more open, people tend
to be straight and direct to the point. However, Asian people, for instance,

38
would prefer to prevaricate at the issue. As a result, some feedback seems to
be positive for this person but offensive for another one. (Interviewee A.)
Interviewee B shared that miscommunication happens sometimes in her
team even between two colleagues (of the same culture) because people are
different in terms of personalities. Therefore, regardless of culture, she
always must know how to manage the differences in personality as well.
However, according to interviewee C, cultural diversity does not really
matter in management. Instead, personalities are more important than
nationalities to be considered in managing people. Interviewee D stated that
cultural diversity only matters when he manages people from different
locations. The work always needs to be done even on holidays.
Understanding how important holidays are to some religions is necessary to
assign the tasks and keep the employees satisfied. There is also a challenge
that cannot be ignored, particularly in a multinational corporation.
Interviewee C, interviewee D and interviewee E all agreed that retaining
skilful foreign employees is a tough assignment of the team leaders and the
company as well. They tend to come back home or move to another
countries for instance Germany, United States, United Kingdom, etc. after
earning some work experience in the company. It is always a dilemma for
human resource management. Hiring a new foreign employee is always
associated with complicated administrative formalities and costs arising
from job advertising, training, work permit application and so forth.

Nevertheless, the organisation always benefits from the multicultural

workplace. Interviewee B believed that a diverse workforce has brought
different perspectives and innovative ideas to her team meetings. Diversity
creates a wider knowledgeon some certain issues. Language is a great
challenge for the team in communication. However, it can be an advantage
to encourage the team members to develop their communication skills every
day. People try to speak to each other more frequently so that they can
minimize mistakes. This increases not only communication skills, but also
the integrity for the whole team. Interviewee E shared that multicultural
environment impulses the development of individuals. People tend to learn

39
from each other, not only knowledge but also professionalism. Finally,
diversity contributes positively to forming a creative, dynamic, and updated
work environment in Capita.

The table below summarises the answers of interviewees about the

challenges and the benefits of the multicultural workplace:

Challenges Benefits

-Leaders must address the -Different ideas, perspectives in

problems derived from diverse team meeting
expectations and behaviours
-Increasing communication and
-Using English every day and integrity for the whole team
adjusting to different
-Reducing operational costs (costs
communication styles
of operating in new markets)
-Understanding the importance of
-Getting customers fast,
holidays in different religions
understanding the market well,
-Keeping foreigners stay long accessing to the information source
quickly
-Complicated administrative
formalities -Enhancing individual
developments

-Creating a creative, dynamic, and

updated work environment

Table 3: Challenges & Benefits of a multicultural workplace

40
 Chapter 4
Data Analysis

41
4.1 Multicultural management methods and tools in Capita
All five interviewees agreed that cultural understanding is the best tool for
managing multi-culture, even though interviewee C does not spend much
time on this. Interviewee B always tries to understand her employees’
behaviour. She usually organises team building for her team after work.
Team building is a method to connect all the team members, create trust
and increase communication. In team building, her team works as a unity to
make the best performance regardless of cultures. According to interviewee
C, the experiences abroad are the tools he uses in managing the foreigners
in his team. Furthermore, the teamwork is always controlled by the
communication tools such as internal chat forum, Outlook, Webex,
Teamssystems.

For all interviewees, the most effective management method is individual

meetings. It helps interviewee A better understand her employees’
expectations. It is not necessary to discuss about work in the meeting. The
topics can vary for example life in the country, family, future, etc.
Furthermore, regular team meetings take place often with the support of
technology such as Teams, mostly supported by video cameras to enhance
personal interaction.

Only two interviewees (interviewee C & interviewee D) argued that there was
no need to have a clear strategy in multicultural management. They usually
solve the problems based on circumstances. The two interviewees have the
same idea that nationality is important, but personality does matter most.
Interviewee C treats theemployees in all geographies the same. He believes
that people are different from each other, even when they share the same
ethnicity. Therefore, it should be more flexible in the way of managing
people. Interviewee D’s team members are in different nations, whereas the
work needs to be done immediately. Thus, there is no time to understand
every culture. Common rules or detailed plans always help to keep track of
the teamwork and employees regardless of culture and time zone.

On the contrary, according to interviewee A, interviewee B and interviewee

E, leaders should have a strategy to manage the differences in their

42
teams.Interviewee A concentrates on building trust within her team. She
does not judge people based on the perspective of her culture. Instead, she
always tries to discuss and gets to know better the cultural background of
her team members. Similarly, interviewee B always tries to understand the
cultures of her employees and treats people differently. She believed that a
team works well only when good relationships are built among team
members. Interviewee E also shares the same style with interviewee A and
interviewee B. He understands the differences in culture and building good
relationships with his team members. He also seeks consultancy from his
colleagues outside the team who are from different cultures and willing to
give himadvice on circumstances.

Even though there were two opposite points of view about leadership
strategy, all interviewees believed that detailed plan is always important
whichever strategy is applied. Plans are distributed to all team members so
that everybody is informed clearly about the task and deadline. By doing
this, the leader ensures the accuracy and timing of the information that the
team provides. Communication happens frequently through an internal
chatting forum so that people are kept updated all the time.

4.2 Multicultural Management Strategies according to

Mäkilouko’s Theory
The Likert-questionnaire aims at finding out which strategy among three
leadership strategies; cultural synergy, cultural ethnocentrism, and cultural
polycentrism that the team leaders use. Then, the suggestions for further
improvement according to strategy found out will be given in the next
section.

When analysing the data, the answers are marked with letters: E
(ethnocentrism), S (synergy) and P (polycentrism). The letters are coded
correspond with the increase of agreement level. The results are summarized
in Table below:

Questions Interviewee Interviewee Interviewee Interviewee Interviewee

43
 A B C D E

I always try to P P S S P
understand
my foreign
team
member’s
culture

It is important S S E E S
to acquire
knowledge of
all cultures in
my team

A team works P P S S P
well if people
trust each
other

I adjust my S S E E S
styles towards
culturally
different team
members

It is a waste of S S E E S
time to
supervise and
control
teamwork all
the time

I sometimes E E E E S
delegate the

44
authority to
some team
member

Changing S S E E P
team members
is necessary to
form an
effective team

Result S S E E S

Table 4: Interview results summary

The table illustrates that with these answers there are three interviewees
categorized as synergistic leaders. The two interviewees C and D show the
style of ethnocentrism in their responds. The result indicates that none of
them is polycentric leader. In the next section, the research data will be
analysed in more detail. Furthermore, recommendations for developing the
current strategies used by the team leaders will be given after the result
analysis.

4.3 Data Interpretation

This sectioninterprets the results found out in the previous section. The
background information of the interviewees will be discussed first as it is a
determinant of leadership style. The result has shown that cultural synergy
and cultural ethnocentrism are used mostly by the team leaders. The
analysis on these two strategies is therefore emphasized. Finally, the
chapter ends with some recommendations for Capita’s team leaders to
acquire better performance.

4.3.1 Background information of the interviewees

The author found that having work experience abroad contributes to
creating multicultural competences of a leader. When a person is out of his

45
or her comfort zone, he or she has more motivation to learn, adapt and
adjust him or herself to the environment. When living in a new country or
working with colleagues from a different country, one must be aware of the
local culture, behaviour, thinking style and other values. Thus, a leader who
has international experience is more curious about cultures and tends to
raise the cultural awareness. Furthermore, having work experience abroad
develops greatly one’s language and communication competence. Living in
an environment which is surrounded by a different language, one must
endeavour to understand others and make them understand him or herself.
This is necessary in building cross-cultural communication competence. It
is interesting to notice that all interviewees have had at least once
experience working with different cultures and geographies. However, either
taking cultural differences into account or ignoring them is a matter of
strategic choice.

The result indicates that cultural diversity degree in a team also affects the
choice of leadership style in Capita. Managing a team in which cultural
backgrounds are so different, the leader tends to learn more about the
differences among the team members. He or she will try to understand his
or her member on the cultural aspect. Thus, the leadership style is usually
relationship oriented.This, however, is not always the case. Managing a very
multicultural team, interviewee D instead approaches task-oriented
leadership style. It seems to be easier to control and supervise the teamwork
when the members are working in different locations. Furthermore, there is
no time to get to learn thoroughly every member’s culture when the
workload is extremely heavy.

4.3.2 Findings on leadership styles based on management

methods and tools
Based on management methods used by the team leaders, the author found
out two leadership styles in Capita: relationship-oriented and task-oriented
styles. The leaders who are relation-oriented tend to learn more about
cultures. They devote their time to building good relationships with the team
members. When talking about multicultural management tool, the

46
relationship-oriented leaders often mentioned e-learning, cultural wizard, or
other cultural training sessions. The task-oriented leaders, whereas,
emphasized common language and technology as management tools. The
task-oriented leaders focus on creating structure and systems in the team to
make sure that the instructions are followed. They tend to leave the matter
of culture aside and focus on how to get the job done. Each style, however,
has both upside and downside.

Relationship-oriented leaders usually make their team members feel

appreciated for the work they do. As a result, those who feel as an important
part of the team’s success will make more efforts to deliver the best
outcome. On the other hand, this leadership style can come along with some
troubles (Friedman 2013). Team members sometimes feel too many
responsibilities without a clear guidance (Friedman 2013). Co-workers can
be nice, but the job is not yet done (Mäkilouko 2003, 74).

Task-oriented leaders usually have clear and easy-to-follow work schedules

with specific requirements and deadlines. By doing this, the job always gets
done regardless of cultures and time zones. The greatest advantage of this
leadership style is to maintain the high standards and to optimize efficiency
of the work (Friedman 2013). The downside of task orientation is that it can
lead to a lack of flexibility and creativity in organisations (Mäkilouko 2003,
75). In addition, when leaders pay great attention to completing the job, they
may unintentionally dismisstheir team’s needs. This is believed to create a
negative impact on overall performance of the team when disappointment
replaces motivation and commitment (Mäkilouko 2003, 75). Without being
noticed, disadvantages can sometimes overweigh the benefits of task-
oriented leadership style (Friedman 2013).

Interestingly, regardless of leadership styles, private talk seems to be the

most favourable method used in Capita. It happens at least once a week in
terms of face-to-face meeting, web conference, phone call,and meeting
across different time zones and distance. By doing this, the leaders have
better knowledge about theirteam members’ expectations.

47
4.3.3 Findings on Multicultural leadership strategies
The results indicate that all interviewees clearly perceived the importance of
cultural diversity in the organisation and particularly in teamwork.
Understanding the advantages and disadvantages that it brings to the
organisation is crucial for the leaders to build up multicultural strategies. A
strategy shows the leader a direction which includes a set of actions to
approach the target. Nevertheless, the answers about leadership strategy are
mostly day-to-day operations and short-term tactics. The term “leadership
strategy” is still unclear in cultural diversity management. Two out of the
five interviewees believe that there is no need to have a certain strategy in
their teams. Every different circumstance requires the leader to be flexible in
solving problems. Applying one strategy does not make sense when there are
frequent changes in human resource within the team.

Moreover, conflicts rarely happen in some departments where tasks are

accomplished routinely. With the help of Capita’s internal communication
channels, for instance, WebEx, chat forum, Outlook and Teams,
misunderstandings are minimized, and the teamwork is always under
control.

Other three interviewees believe that there is a need to have a strategy. It is

because their multicultural teams require unanimous consent to approve
group decisions. This motivates them to understand more their culturally
different members, how they behave at work and what they expect towards
the teamwork. However, as mentioned above, the respondents just answered
the question of how tohandle cultural problems well. To address the issue of
strategy, the leaders need to answer to the following questions: Where do
they want to go? What do they want to be in the future?

The strategy was not well defined in the answers of the interviewees.
Nonetheless, their tactics, tools and methods used in daily management can
be recognized to fit some of the strategies defined by Mäkilouko (2003).
Based on that, the author will give some suggestions for Capita’s team
leaders to improve their performances. Cultural synergy and cultural
ethnocentrism are the most popular strategies used by the team leaders in

48
Capita. Obviously, the synergistic leaders are more relationship-oriented,
whereas the ethnocentric leaders prefer task orientation. Interestingly, there
exists a possible combination in the way of using these strategies. The
synergistic leaders keep their eyes on teamwork by a detailed plan
distributed via email or regular meetings. The ethnocentric leaders are also
trying to be aware of and learn about other cultures. Neither cultural
synergy nor cultural ethnocentrism always works in all cases. Thus, the
team leaders must know which strategy to apply and when to make a
change.

4.4 Reliability and Validity

A good qualitative study ensures the reliability of data collected and validity
of the findings. In other words, reliability examines whether data collection
techniques or analysis procedures will lead to consistent findings. Validity is
concerned with the correct correlation between findings and conclusion.
(Saunder et al. 2009, 156-157.)

First, the interviewees were chosen among Capita’s team leaders who had
outstanding experiences in managing cultural diversity. Their answers are
therefore highly valuable to the findings. We must bear in mind that Capita
is a big corporation where all internal information must be reviewed before
being published. To acquire trustworthy answers, the author had to promise
not to publish the information of the company as well as all interviewees.
This created freedom for the interviewees to express and share their points
of view. The reliability of this thesis is therefore assured.

The findings of this thesis were based on the subjective viewpoints of the
interviewees. Management styles or day-to-day operations always vary
depending on different leaders and organisations. Thus, this thesis is only
specifically valid for the case company, not for other cases. However, the
findings of this thesis can be used as future reference for further research
on developing multicultural strategies in MNCs.

49
 Chapter 5
Findings and
Suggestions

50
5.1 Findings of Study
After analysing the data, the author wants to point out several things that
help to improve multicultural performance in Capita. First, leadership style
is an important factor to decide how efficiently a leader solves problems and
which strategy is chosen. Therefore, the team leaders must be aware more
than anybody else of the style they want to obtain. There is no best
leadership style in the universe. It only works if it is applied in the right
place and at the right time. When the leaders clearly understand their team
structure, locations, work characteristics, etc. they will be able to define
which style is applicable. In addition, it is advisable not to keep one style all
the time. The leaders need to take advantage of both leadership styles,
adjust, and make their own approaches.

Second, the author wants to discuss the two Mäkilouko’s strategies which
are applied in Capita: Cultural synergy and cultural ethnocentrism. Both
strategies, as mentioned previously, do not work in all situations. Choosing
a suitable strategy depends strongly on cultural knowledge, team design,
culturaldiversity level, work requirements, and so forth. These are the
variables that change from time to time. Thus, to choose a proper strategy,
the team leaders need to understand where they are standing (including
cultural knowledge and other multicultural competencies) and how their
teams’ current situation is.

Most synergistic leaders in Capita are doing well in building good

relationships within their teams. However, they need to focus more on
developing a shared way of working together. The team needs to have
common agreement regarding teamwork such as what, how and when the
work should be done; who to contact; which communication channels used,
etc. In this case, the team leaders need to be active to search for new
alternatives such as different ways to do the job, different communication
channels, or different methods which meet all themembers’ agreement.
However, in a very diverse team, the leader must bear in mind that cultural
synergy is more difficult to develop than ethnocentrism. Thus, the author
believes that it is even better for the synergistic leader to have some

51
ethnocentric attitudes so that he or she can avoid conflicts caused by too
many different points of views.

Cultural ethnocentrism seems to be the easiest alternative strategy but quite

limited in success (Mäkilouko 2003, 99). In this thesis, it is hard to compare
the performance of both strategies in Capita due to the limited scope of the
thesis. However, the author realized that the ethnocentric leaders in Capita
are also performing very effectively. The only thing the ethnocentric leaders
should notice is the motivation of developing multicultural competences.

Ethnocentrism is often necessary at the starting point and works quite well
as there is no confusion. Thus, the ethnocentric leaders tend to undervalue
the importance of cultural differences in their teams and feel less motivated
to learn about other cultures. Consequently, they are getting passive in
changing or adjusting their styles to meet the needs of their teams. As
discussed previously, one strategy does not work in all situations. It is
necessary to change and develop a multicultural strategy at some point of
time in the future. Therefore, the ethnocentric leaders always must be aware
of their multicultural competences. They need to improve knowledge and
skills to prepare for a change from ethnocentrism to synergy and finally
polycentrism.

The suggestions above are summarized in the table below:

Matters Suggestions

Leadership styles The team leaders should know how to combine

the advantages of relationship- oriented style
and task-oriented style, adjust and make their
own approaches

Synergistic leaders The synergistic leaders should pay more

attention to build up shared wayof working
together in their teams.

Furthermore, they need to have the

ethnocentric attitude sometimes since the

52
 team is extremely diverse.

Ethnocentric leaders The ethnocentric leaders need to be motivated

to improve their multicultural competences
such as cultural intelligence and cross-cultural
communication. By doing this, they can
develop the multicultural strategy from
ethnocentrism to synergy, and ultimately
polycentrism. Furthermore, it helps them to
prepare well for dealing with unusual
circumstances.

Capita It is suggested to create a tool which helps

team leaders to evaluate their multicultural
competences. The tools can be designed as a
set of questionnaires regarding multicultural
management. Based on the results, relevant
training sessions or e-learning are suggested.

Capita In the future, the company will be likely to face

the greater gap between Western culture and
Asian culture.

Thus, obtaining a clearer vision for

multicultural development is the key to gain
competitive advantages for the company.

Table 5: Findings Summary

5.2 Findings and best practices for Implementing

Multicultural Leadership Strategies in Capita
To effectively manage cultural diversity in Capita, it is important to
implement multicultural leadership strategies.

These strategies can include:

53
1. Developing cultural competence: Leaders should understand and
appreciate different cultural norms, values, and communication styles. By
developing cultural competence, leaders can effectively navigate and bridge
cultural differences within the organisation.

2. Embracing cultural synergy: Leaders should create an environment where

diverse perspectives are valued and integrated to achieve synergy and
collaboration. By embracing cultural synergy, leaders can leverage the
unique strengths and perspectives that diversity brings to drive innovation
and problem-solving.

3. Implementing inclusive policies and practices: Leaders should ensure that

policies and practices in Capita are inclusive and promote equal
opportunities for all employees. This includes eliminating bias in
recruitment and promotion processes, providing flexible work arrangements
to accommodate diverse needs, and fostering an inclusive and respectful
workplace culture.

4. Promoting open communication and dialogue: Leaders should encourage

open and honest communication among team members, creating a safe
space for sharing perspectives, addressing concerns, and resolving conflicts.
This open communication and dialogue can help break down barriers, build
understanding, and foster positive work relationships.

5. Fostering cultural intelligence: Leaders should promote and support the

development of cultural intelligence among employees. Cultural intelligence
refers to the ability to effectively work and adapt in diverse cultural contexts.
This can be done through providing cross-cultural training, organizing
multicultural events and workshops, and encouraging employees to seek
experiences and interactions outside of their own cultural comfort zones.

6. Creating opportunities for employee engagement and collaboration:

Leaders should facilitate opportunities for employees to engage with one
another and collaborate on projects and initiatives. This can include
organizing cross-functional teams, promoting diversity in task assignments,
and facilitating networking events.

54
7. Encouraging and supporting employee resource groups: Leaders should
actively support and empower employee resource groups, which are affinity
or interest-based groups formed by employees to support and advocate for
specific communities within the organisation. These groups can provide a
platform for employees from diverse backgrounds to come together, share
experiences, and collaborate on initiatives aimed at promoting inclusion and
diversity within the organisation.

8. Providing mentorship and sponsorship programs: Leaders should

implement mentorship and sponsorship programs that pair employees with
diverse backgrounds with more experienced mentors who can provide
guidance and support in their career development.

9. Encouraging and supporting employee resource groups: Leaders should

actively support and empower employee resource groups, which are affinity
or interest-based groups formed by employees to support and advocate for
specific communities within the organisation. These groups can provide a
platform for employees from diverse backgrounds to come together, share
experiences, and collaborate on initiatives aimed at promoting inclusion and
diversity within the organisation.

Overall, the key strategies for managing cultural diversity include promoting
inclusion and diversity, fostering cultural intelligence, creating opportunities
for employee engagement and collaboration, supporting employee resource
groups, and providing mentorship and sponsorship programs. The business
case for diversity and inclusion requires embracing, through tackling bias,
setting up inclusive meetings with diverse participants, providing language
training, encouraging employees to accept overseas assignments, and
practicing inclusive leadership through creating a safe and welcoming team
environment.

Furthermore, leaders should hold themselves and other leaders accountable

for promoting and supporting diversity and inclusion. Source research
identifies several substantial barriers to the building of good workin g

55
relationships among diverse cultural groups, and diversity must be
managed if organisations are to attain the benefits promised by the business
case for diversity. Many organisations have created diversity initiatives to
address these barriers and promote a multicultural organisation, but few
have been successful in achieving this goal.

5.3 The Future of Leadership in a Multicultural World

Effective multicultural leadership strategies are crucial for managing and
promoting diversity in organisations. They help organisations navigate the
challenges of cultural diversity, improve communication and collaboration,
and create a positive work environment. By prioritizing cultural sensitivity
and empathy, seeking input and feedback from team members, encouraging
open dialogue and collaboration, and implementing fair and inclusive
policies and practices, organisations can overcome challenges and enhance
the effectiveness of multicultural teams.

To further promote multicultural leadership and diversity in organisations,

it is imperative for leaders to invest in developing their own cultural
intelligence. This involves understanding, appreciating, and adapting to
different cultures, and can be achieved through self-reflection, seeking
feedback, and continuously educating oneself about different cultures.
Additionally, organisations should invest in diversity and leadership
development programs to equip leaders with the necessary skills and
knowledge to effectively manage a culturally diverse workforce.

By implementing these strategies and practices, organisations can position

themselves to leverage the unique perspectives and experiences that diverse
team members bring to the table, driving innovation, creativity, and
organisational success.

Moving forward, it is essential for leaders to recognize and communicate the

value of cultural diversity in driving organisational success. By providing
ongoing support and mentorship for diverse team members and creating a
culture of inclusivity where everyone's voice and perspective are valued,

56
organisations can foster a more inclusive and collaborative work
environment, ultimately contributing to their overall success.

Multicultural leadership is a critical component of organisational success in

today's globalized and diverse world. Leaders who embrace multicultural
leadership strategies understand the importance of respecting and valuing
diverse cultures, perspectives, and experiences. These leaders prioritize
inclusivity and create an environment where all employees feel valued,
heard, and empowered to contribute their unique perspectives. Through
cultural awareness training, leaders can develop the necessary skills and
competencies to effectively manage culturally diverse teams.

They also seek input and feedback from team members, encourage open
dialogue and collaboration, and implement fair and inclusive policies and
practices. This inclusive approach to leadership promotes teamwork, mutual
understanding, and trust among team members, leading to increased
productivity and innovation. Additionally, leaders who possess cultural
intelligence and a global mindset are better equipped to navigate
complexities and challenges that arise from cultural differences. This
ultimately leads to more effective multicultural team performance and
organisational success. Multicultural leadership is not limited to just
managing diversity within the organisation, but also extends to valuing and
supporting different leadership styles that are contextually appropriate for
different cultural contexts. By recognizing and embracing the cultural
inheritance of diverse leaders, organisations can expand their repertoire of
leadership behaviours and approaches. This enables them to better respond
to the needs and preferences of employees, adapt to changing environments,
and capitalize on emerging leadership talent worldwide.

5.4Limitation of Study
First, the term multiculturalism or cultural diversity used in this research
refers to the differences in race, nationality and religion. Even though
culture affects many activities in life, this thesis concentrates only on the
importance of cultural diversity in group or organisation.

57
Second, the goal of this study is to introduce the three practical leadership
strategies for leaders in multicultural teams. These strategies have been
developed by Mäkilouko (2003). They are designed from perspective of small
group behaviour and leadership. Therefore, the thesis aims at addressing
solely the multicultural strategy in a small group or team rather than
corporation or human resource management.

5.5Future Prospect
Ideas for future research in this field were raised during the research
process. Multiculturalism is a familiar topic in MNCs and further research
on it could be done from different perspectives. In order to make the topic
objective, the research could be done with employees. This would help the
researcher have a deeper look on how the employees feel the multicultural
environment in their teams? Do they feel satisfied with the leadership styles
of their team leaders?
Second, the research could be done not only on the individual level but also
on the organizational level. Individual’s behaviours and attitudes are
strongly linked to the organisational culture. Thus, research on the
organisational culture would be an essence in the future.
The author also suggests conducting a study to examine whether it is
crucial for MNCs to obtain a general multicultural strategy. The author
believes that multicultural leadership strategies by Mäkilouko (2003) are
hardly applied to corporation level, on the other words, human resource
management level. Thus, if there was a need to have a multicultural strategy
on the corporate level, what would it be?
The author wants to raise the readers’ interest in multicultural issues in
MNCs. This research leaves open discussion about having multicultural
strategies in multicultural teams. There were two different perspectives on
this topic. Some stated that there was a need to have a multicultural
strategy. Meanwhile, others believed that it was not necessary. Foremost,
the author would like to point out the importance of cultural diversity and
its challenges that organisations might have to deal with. Thus, the leaders

58
should be aware of the existing cultural differences in their teams or a fail in
management is likely to happen.

Chapter 6
Conclusion

59
6.1 Conclusion of the study
Based on what has been found out and analysed in the two previous
chapters, the author is now able to give answers for three sub-questions and
the research question.

Answers for Research Questions

 How do Capita’s team leaders perceive the importance of cultural
diversity in the organisation?

The team leaders in Capita are all highly aware of cultural diversity’s impact
(beneficial and challenging) on their teams. Apparently, cultural diversity
brings a variety of languages, knowledge, creativity, and innovation to the
organisation. On the other hand, the team leaders must address the issue of
different expectations, behaviour, communication styles which may cause
the confusion among the team members. Cultural diversity is seriously
considered in management by not only the team leaders and but also the
whole company. Also, there are many cultural events and training sessions
organised within Capita.

 Which tools and methods are used by Capita’s team leaders to

manage cultural diversity?

The knowledge of different cultures and language skill are the most common
tools used by Capita’s team leaders. In addition, technology is seen as the
effective tools for communication and controlling teamwork. Therefore,
technological competence is the first thing to be trained at Capita. Regarding
the management methods, each team leader has different ways to manage
multiculturalism. Some try to connect their team members and enhance
team spirit by organizing team building, team outing and other activities.
Some prefer private talks and regular meetings to better understand their
followers. Some choose to solve the problem based on experiences and
circumstances.

 How do they solve the cultural problems and prevent them from
happening in the future?

60
There are two different ways used to solve conflicts. The task-oriented
leaders choose to ignore the cultural differences and focus on individuals’
personalities. They try to find what the problem is and whose responsibility
is. Everything is judged based on rules and plans which have been
determined in advance. To prevent the conflicts from happening again, they
create system, detailed plan, and control teamwork all the time. The other
way to solve conflicts is to resolve the problems of cultural differences. This
is the preferable solution of the relationship-oriented leaders. They choose to
have private talks to understand individuals’ expectations. Then they can
find a solution which satisfies everybody. To prevent the conflicts from
happening in the future, they try to get to know different cultures in their
teams. By doing this, they can find the similarities among team members
and set up unanimous rules towards the teamwork.

 Which multicultural leadership strategies are used to manage

international teams in Capita?

Cultural ethnocentrism and cultural synergy strategies are the most used in
Capita. Cultural ethnocentric leaders in the company prefer task
orientation. Meanwhile, cultural synergistic leaders are often relationship
oriented. In cultural ethnocentrism, the leader uses rational approach to
issues regardless of cultures. He or she makes sure the teamwork is
followed as planned and always under control. On the contrary, the
synergistic leader solves the problems of differences among the team
members and concentrates on creating the cohesion within the team.

6.2 Summary
This thesis discusses one of the biggest concerns in management field of
MNCs - multiculturalism, or so-called cultural diversity. In the era of
globalization, leaders need to have a clear vision and defined direction to
manage the differences in the organisations. Thus, the thesis aims at
discovering multicultural strategies used by the team leaders in Company.
Based on the findings, the author gives some suggestions for improving
multicultural performance in the company.

61
The research was conducted by using deductive approach and qualitative
research method. Particularly, secondary data was collected from reliable
sources such as published books, articles, and other relevant electronic
resources. On the other hand, the collection of primary data was completed
by personal observations and interviews with the company’s team leaders.

With the purpose of helping the readers understand multicultural

leadership strategies clearly, all relevant concepts are clarified in Chapter 2.
Culture is defined mainly based on Hofstede’s theory and cultural diversity
is defined according to Gardenswartz& Rowe (1994)’s model. However, the
most important theoretical part in this thesis is the three practical
multicultural strategies defined by Mäkilouko (2003). They are cultural
ethnocentrism, cultural synergy, and cultural polycentrism. The literature is
then applied in the empirical part to examine the strategies used in Capita.

To successfully manage international teams, apart from managerial

competences, leaders need to improve their multicultural competences as
well. Chapter 2 introduces two important cross-cultural competences:
Cultural Intelligence (CQ) and Cross-cultural Communication. Furthermore,
three principal strategies for developing those competences are included.

In Chapter 4, the information regarding the case company is provided.

Chapter 5 then revealed the expected empirical result that there are two
main strategies used by the team leaders in Capita: cultural ethnocentrism
and cultural synergy. Based on the findings and analysis, Chapter 5
presents some recommendations for improving the multicultural
performance in the company, while discussing future research topics.

62
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63
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APPENDIX

68
 APPENDIX-1

Thesis Interview Invitation Letter

Dear Sir/Madam,

My name is Manpreet. I am currently working as CTO. I am writing my

master’s dissertation about leadership strategies in multicultural working
environments. Capita is included as a case for the empirical part of my
study.

Hearing your opinion about leadership experiences on the subject is

important for the study. The questions are based on the strategies found in
literature and will help me to find out which leadership style is mostly
applied by managers/team leaders. After getting the permission of our
company, I would like to invite you to a short face-to-face interview (around
15-20 minutes).

Attached you will find the interview questions, so that you can read them
beforehand. I am aware that your schedule is tight, and I would highly
appreciate if you can find a few slots in your diary to help me complete my
thesis by taking part in this short interview.

Thank you!

Regards, Manpreet

Attachment 1 Interview questionnaire

Attachment 2 Likert scale questionnaire

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 APPENDIX-2

Interview questions with team leaders.

Background questions

What is your position title? How many employees are you managing now?
How many of them are foreigners?

Before Capita, have you ever experienced in working with people from other
countries? Could you please describe it?

Perspectives on Multiculturalism

Do you think managing a multicultural team is more challenging than

ahomogenous team?

What is the most challenging aspect and how does it affect the teamwork?

What do you think about the benefits that multiculturalism brings to your
team and the company?

Multicultural tools and management method

How can you solve cultural conflicts in your team?

What kind of tools and methods do you use to manage multiculturalism?

As a leader, do you have a strategy to manage the cultural differences in

your team?

If yes, how is it implemented in everyday management?

70
 APPENDIX-3

Likert scale questionnaire

Please read through the following questions and answer according to the
scale.

1-Totally disagree

2-Disagree

3-Neutral (neither agree nor disagree)

4-Agree

5-Totally agree

I always try to understand my foreign team member in terms of his/her

cultural background.

1 2 3 4 5

It is important to acquire knowledge of all cultures in my team.

1 2 3 4 5

A team works well if people trust each other.

1 2 3 4 5

I adjust my style towards culturally different team members.

1 2 3 4 5

It is a waste of time to supervise and control teamwork all the time.

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1 2 3 4 5

Sometimes I delegate the authority to some team member.

1 2 3 4 5

Changing team member is sometime necessary to form an effective team.

1 2 3 4 5

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 APPENDIX-4

List of Interviewee’s

Reference ID Name Designation

A Sarah M Chief of Staff

B Debbie LS Legal Director, Systems

C Madhu G Managing Director, DDC

D Michael N Managing Director, SW

E Ciaran B Managing Director IT

73