The Anglo Cultural Cluster - Cultural Profiles and Management Styles Around The World - Australia, Canada, England, Ireland, New Zeeland, South Africa, United States

1. Case study of Anglo cultural cluster

According to the GLOBE research, there are 9 cultural clusters in the world: Anglo, Latin America, Latin Europe, Eastern Europe, Germanic Europe, Nordic Europe, Sub-Sahara Africa, Arab, Southern Asia and Confucian Asia. In this paper we will analise the specific characteristics of the anglo cluster and try to determin the implications to managers.

We will discuss the basic cultural variables affecting this cluster and see the impact of their common hystory on their beliefs and on their view on life. Then, in the cultural value fimensions analysis we will sumarise the finding of three important researchs in the field: the Globe researchs, Hofstede’s value dimensions and Trompenaars’s value dimensions. We will continue with presenting the managing style specific to this cluster and finally we will try to reach a conclusion and possibly determine whether the anglo way of thinking has had an influence on the current economic crysis.

2. Cultural Variables affecting the Anglo cluster

The Anglo cluster comprises Australia, Canada, England, Ireland, New Zealand, South Africa and the United States of America. These countries are all developed nations, predominantly English speaking, and were British colonies. The cultural values of the English have spread across the globe, and now the Anglo cluster comprises some of the most advanced and robust democratic economies in the developed world.

In order to achieve a deeper understanding of societal and organizational culture in Anglo cluster countries, we must consider the historical and cultural evolution of this cluster. The seven countries in this cluster share three important characteristics: their national language is predominantly English, they were all members of the British Empire and they all embody developed “Western” economies, with the possible exception of South Africa.

Although the white population of South Africa only comprise 27.7% of that country’s total population of 42 million, we will only focus on this segment of the population, as it represents a developed western society within South Africa, while the Black sample is included in the Indigenous Africa cluster. Although the majority of South Africans do not speak English as a first language, English is recognized as a national language, and is used as the language of business.

Unlike the other clusters, the Anglo cultures are spread around the world, containing the remnants of the British Empire. Apart from England and Ireland, the epicenter of British colonial power, these countries comprise much of the New World, whose white population came initially from England and Ireland, and later from other European nations.

Central to their development has been Judeo-Christian values, the sense of tolerance introduced by Oliver Cromwell in the Seventeenth Century, a strong legal infrastructure and naval control of the high seas. These values underlie all the countries of the Anglo cluster, giving them a sense of confidence and power. More recently, all of the countries of the cluster have become much more racially diversified as immigration from Asia, Latin America, and Africa to the developed nations of the world increased.

The Anglo cluster countries, whose population of 437 million is only 7% of the world’s population, accounted in 2002 for 40% of the world’s Gross National Product, or 12 trillion US dollars. The US economy has dominated the economic landscape of this cluster.

The US represented 75% of the cluster’s GDP, and 30% of the world’s economy. Still, the other countries clearly represent a significant and powerful sector of the world’s economic output. This is reflected in the relative high ranking of the countries in terms of GNP per person.

Further reflecting the economic strength of the cluster, the Anglo countries account for 25% of world trade, 34% of manufacturing added value, and 21% of agricultural added value.

Besides this, with the exception of South Africa, all of the countries score highly on the Human Development Index, indicating that their populations share a high standard of living and quality of life.

3. Cultural Value Dimensions

3.1 The GLOBE cultural dimensions

The GLOBE research program involved middle managers of firms in 62 national cultures. The managers were administered a survey instrument that asked them to report on cultural practices and values in their societies, together with their rating of effective and ineffective leadership practices. Nine dimensions that distinguish cultures from one another were foud.

The Anglo cluster is characterized by an individualistic performance orientation. Further, although they value gender equality, the Anglo cluster countries tend to be male-dominated in practice. Effective leadership in the Anglo cultures is affected by a combination of charismatic inspiration and an anticipative style.

In terms of societal practices (‘As Is’), the Anglo cluster scores in the mid range of all the dimensions except for a high score on Power Distance (4.97) and a low score on Gender Egalitarianism (3.40). Despite this cluster being quite liberal in its endorsement of gender roles (New Zealand, for example, was the first nation to give the vote to women), its members still perceive themselves to live in a male dominated society.

Turning now to societal values (‘Should Be’), the Anglo cluster scores high on values of Performance Orientation (6.03), Human Orientation (5.33), Family Collectivism (5.84) and Future Orientation (5.33).This cluster scores low on Power Distance (2.86) with all the other dimensions scoring in the mid range.

The performance orientation of this cluster can be traced back to the Protestant mentality of the British as they established their colonies and trade routes throughout the New World. Today, countries in this cluster, especially the USA and (White) South Africa strongly endorse achievement, especially in the pursuit of material wealth.

Although this cluster reflects a male dominated society in practice, Gender Egalitarianism rates quite high as a value (4.90). Indeed, five countries in this cluster are in the top ten highest scoring countries (out of 62) on Gender Egalitarianism values. This indicates that, although gender inequality exists in these societies, there is a realization amongst societal members that this should be reduced further. For instance, it is mandatory in Australia for organizations to keep available the positions of females who return from maternity leave.

The high score on Family Collectivism (5.84) reflects this cluster’s members’ desire to have more pride and loyalty in their families. This is especially interesting because these cultures are traditionally individualistic, as reflected in the ‘As Is’ scores. Still, the GLOBE results indicate that the cluster believes that there should be more interdependence in the family unit and pride in the family structure.

When comparing the Anglo cluster with the other nine clusters, two conclusions stand out. The first is that the Anglo cluster is one of only three clusters that believe that there should be less Uncertainty Avoidance than there is in practice. Although the difference is not great, it does highlight the inherent dislike of the former British colonies for rules, regulations, and status in their cultures. The second is that Anglo cluster members seem to be content with practices in respect of Institutional Collectivism – the encouragement and reward of collective action. The level at which this cluster perceives Institutional Collectivism should be, however, is relatively low compared to the other clusters. In effect, it seems that the Anglo cluster does not want, nor does it have, an over emphasis on group loyalty and collective interests, as opposed to individual goals and interests. Based on our discussion of the history of the Anglo cultures, this result reflects that these cultures see their individualism to be derived from the struggle for self dependence and personal material possessions.

So far we have focussed on the cluster as a whole. There are, nonetheless, distinct differences between the countries in the cluster. Two countries stand out in this respect: South Africa and New Zealand.

South Africa returned the lowest ‘As Is’ scores in the cluster for Human Orientation and Uncertainty Avoidance practices, and the highest ‘Should Be’ scores for these dimensions. Additionally, South Africa has the highest score for Power Distance ‘As Is’ and lowest score for ‘Should Be’. The GLOBE results imply a culture that feels a desperate need to look towards the future and to build a social structure to deal with the uncertainty and look after the wellbeing of the people.

The New Zealand culture also stood out from the other Anglo nations. For the Performance Orientation dimension, New Zealand scored highest for the practices scale and lowest for the ‘Should Be’ scale. This suggests that New Zealanders actively encourage and reward innovation and performance and feel that they have sufficient emphasis on this dimension. Despite its population of only around four million and its geographic isolation from the rest of the world, New Zealand has made a name for itself on the world stage, especially in business, the arts, and in sports. New Zealand scored highest on Institutional Collectivism and this focus on collective action extends to their perception of effective leadership as will be discussed later. Uncertainty Avoidance implies order and structure, and New Zealand scored highest on this dimension. Finally, the results indicate that New Zealanders believe strongly that there should be more emphasis and pride in the family as shown in the Family Collectivism scale.