Leadership in the Republic of Ireland
Mary Keating and Gillian S Martin
1.0 Introduction
The island of Ireland is situated to the extreme north-west of Europe and is separated from
Britain, its closest neighbour, by the Irish Sea. Ireland has been inhabited since the Stone
Age. For more than five thousand years peoples moving westward across Europe,
including the Celts, Vikings, Normans and English have settled here and contributed to its
present population. Today, the population of the Republic of Ireland stands at 3.57 million
(1994 Census). In 1841, shortly before the Great Famine, the area now comprising the
present Irish State had a population of over 6.5 million. The 1851 census showed a
massive decline to 5.1 million due to death from starvation, disease and large scale
emigration. This outflow established a pattern which has only recently begun to change.
Today, Ireland has one of the highest migration rates in the European Community (Pollack
1993). Whilst geography has destined Ireland to remain small and peripheral, our history
as a people has mapped the country’s identity altogether differently. On a state visit to
Sweden in April 1998, President Mary Robinson stated:
Our history binds Ireland to other countries, to our near
neighbours, the Americas and Africa. Our history demonstrates
again and again that our people defied geography as they forged
new paths which connected ourselves to the outside, to other
shores, to other ideas, to new people.
As a result of their travels, Irish people and their descendants are found all over the world.
O’Dowd (1993) estimates that there may be as many as 60 million people of Irish descent
living outside Ireland. Irish-Americans, Irish-Australians or Irish-Britons assert a strong
cultural allegiance to their land of origin. The “extended family” raises questions about
emigrant nationalities, borders and national culture, issues which have been highlighted in
the recent negotiations for peace in Northern Ireland.
Historians and psychologists talk of national psyche and collective psyche. Concepts such
as the “Irish personality” or “Irish psyche” can generate stereotypes and appear static,
suggesting that variations across social groups, historical time and life span do not exist
(Moane 1994). Such concepts do, however, bear the ‘imprint of bygone circumstances’
(Lee 1989). All generalisations about national psyche should be based on comparison,
exhorts Lee, and for Ireland the English connection has been central to our historical
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experience. The fundamental difference between the Irish and English historical
experience is that the English have been a conquering people, the Irish a conquered:
The attempt to create an area of psychic space free from the
suffocating political and cultural embrace of a vastly more
powerful England moulded the national psyche in numerous
ways, positive and negative. Irish attitudes, however deviant
from English “normalcy” represented a rational response to
Irish circumstances. (Lee 1994, p.245)
Culture, as defined by the GLOBE study, refers to ‘shared motives, values, beliefs,
identities and interpretations and meanings of significant events that result from common
experiences of members of collectives and are transmitted across age generations’. The
following chapter sets out to explore leadership in Ireland within its cultural and
organisational context and to consider the interrelationship between societal and
organisational culture as they impact on leadership. It also investigates the extent to which
current attitudes to leadership within Irish society and organisational settings have been
shaped by our recent and past history. It should perhaps be reiterated at this juncture that
the present chapter focuses on leadership in the Republic of Ireland and does not include
the jurisdiction constituted by Northern Ireland. The study is informed by the insights
which have emerged from both quantitative and qualitative data generated within the
framework of the GLOBE project, including questionnaires, focus groups, ethnographic
interviews with Irish middle managers and a review of unobtrusive measures of culture.
The organisational focus of the Irish GLOBE study is located in the financial services
sector and the food industry.
One of the questions which is central to the research is the extent to which the cultural
dimensions elicited within the framework of the GLOBE study replicate the profile
identified by Hofstede some 25 years ago. Hofstede classifies the country as high on the
masculine and individualist scales and low on power distance and uncertainty avoidance.
Of critical importance in reviewing Ireland’s positioning on the four dimensions is the fact
that Irish society has undergone fundamental changes since the time of Hofstede’s
research, which have impacted on societal and organisational structures. Such
transformations, which will be elaborated in the chapter, necessitate a reappraisal of the
validity of Ireland’s classification, most particularly in response to the country’s passage
from a pre to post-industrial society.
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The chapter is divided into four principal sections. The first seeks to introduce Irish
cultural identity from a social and historical perspective and thereby to provide a context in
which to present the GLOBE study. The second section investigates societal culture and
societal leadership with reference to the empirical research conducted within the
framework of GLOBE. It focuses attention on one of the core research questions of
GLOBE, specifically the influence of cultural environment on leadership concepts. The
third section addresses this question in an organisational setting with reference to the data
generated within the food processing and financial services industries with a view to
ascertaining the extent of the interrelationship between societal and organisational culture
and societal and organisational leadership concepts. Conclusions will be presented in the
final section.
1.1 Perspectives on Ireland
Ireland has been studied from a variety of viewpoints including the post-colonial
perspective, the nationalist perspective and with reference to the impact of the Roman
Catholic Church. Lee (1989) mentions the following characteristics of modern Irish society
which might be considered as post-colonial: extreme centralisation, resistance to change
and new ideas, an absence of self-reflection, internal fragmentation and lack of self
confidence, all of which add up to ‘a national inferiority complex’. Kane (1986), writing
from an anthropological perspective, explores the notion of a ‘spoiled identity’ (p.541).
She observes that a group’s ethnic identity is more likely to hold positive and negative
assumptions about itself when it is part of a ‘conquest culture’ and when these
assumptions are instilled in part by the conquering culture (pp.540f.). Interestingly, a
number of negative cultural attributes have been embraced by anthropologists who see
them as ‘phenomena to be explained rather than as points to be questioned or hypotheses
to be tested’ (ibid., p.542). Kane cites as examples sexual repression and mental illness.
Ruth (1988) suggests that ‘many of the changes we can see taking place in Ireland at
present are typical of a post-colonial society’ (p.442). He identifies in this respect
psychological patterns such as the acceptance of anti-Irish stereotypes (dim-witted,
drunken, aggressive) and ensuing lack of pride, mistrust and divisiveness between Irish
people, a narrow identity definition of being Irish, a lack of assertiveness and a tendency to
oppress. Liberation from such patterns may, according to Ruth, involve anger and grief
followed by pride, assertiveness and acceptance of all members of society.
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Ireland is a 75 year old parliamentary democracy and has undergone vast changes since
independence, particularly since the 1960s (Breen et al. 1990). The past twenty years have
seen much turbulence as Irish society has shifted from being a traditional, socially
conservative society towards redefinition of what it means to be Irish on the threshold of a
new millennium. Membership of the European Union, global influences, especially the
impact of communication and information technologies, shifting demographic patterns,
higher levels of education have all contributed to this change. Within the stages of
evolution prescribed by post-colonialism, it would appear that the process of liberation is
under way. A sense of anger amongst the Irish people toward many of the institutions
which have had such a profound influence on their lives, most notably the Catholic
Church, has ceded to a questioning of their moral authority.
The Catholic Church continues to exert influence on Ireland and the Irish. To some, being
Irish is synonymous with being Catholic. According to one commentator the social project
of the Catholic Church in Ireland has been the maintenance of social stability (Nic Ghiolla
Phadraig 1995). To this end it provided the State with independent legitimation; the State,
in turn, instituted laws and policies in keeping with Catholic teaching. However, its power
is waning, particularly in terms of influence on sexual politics and moral issues. Numerous
recent sex scandals within the Church are also taking their toll, although a strong
symbiosis still exists between Irish nationalism and Catholicism, and particularly in this
century, has dominated the Northern Irish Protestants’ rejection of nationalism. Whilst the
founding fathers of the separatist Irish tradition were Protestant rather than Catholic, the
nationalist rank and file have since the 1790s been overwhelmingly Catholic, as have their
leaders since 1900.
1.2 History: Ireland in the 20th Century
Following 800 years of domination, the Easter Rising of 1916 was the final rebellion
against British rule in Ireland. This was followed by a bitter War of Independence (19191921) after which the Anglo-Irish Treaty was signed and twenty six counties gained
independence from the Crown as the Irish Free State. Six counties had been granted their
own parliament in Belfast in 1920 and remained within the United Kingdom. The
‘troubles’ in Northern Ireland between forces seeking a united Ireland and forces declaring
continued allegiance to the Queen of England have been the legacy of this division and
remain unresolved in spite of current efforts.
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When Ireland finally achieved independence, the Irish Free State inherited a number of
important assets including ‘an extensive system of communications, a developed banking
system, a vigorous wholesale and retail network, an efficient and honest administration,
universal literacy, a large stock of schools, houses and hospitals and enormous external
assets’ (Haughton 1995, p.26). On the other hand, the new State faced a number of serious
problems. It had to establish a new government in the wake of a destructive and divisive
Civil War. The first government following the foundation of the Irish State in 1921 was
headed by William T. Cosgrave, leader of the centre right political party Cumann na
nGaedheal. His priority was to direct the country’s recovery from the civil war and to
create an efficient administration. On the economic front, Cosgrave’s period of office saw
the foundation of the Electricity Supply Board in 1927 and the opening of the Shannon
Hydro-Electric Scheme, both of which were important stages in the country’s
development.
Fianna Fail, the other centre right political party, entered office in 1932 with Eamon de
Valera as head of government. De Valera, born in the United States to an Irish mother and
Cuban father, embraced the role of protector of Irish nationalism and creator of the Irish
nation. To this end, he instituted a policy requiring the use of the Irish language wherever
possible and as a requisite of state education and employment in the civil service. A
dispute over land payments to the British government spawned the economic war of 19321938. Trade between Britain and Ireland was curtailed, resulting in considerable hardship.
In 1937, de Valera introduced a new constitution, declaring Ireland to be a sovereign,
independent and democratic State. In keeping with her independence from Britain, Ireland
remained neutral during the Second World War and thus escaped the worst effects of the
conflict. In 1948, the Republic of Ireland Act was passed, severing Ireland’s last
constitutional links with Britain. From the late 1950s onwards the country underwent rapid
economic expansion, particularly under the premiership of Sean Lemass who in 1959 had
succeeded de Valera as leader of the Fianna Fail party. De Valera had become President of
Ireland in this year. Post 1965, following a free trade agreement between Ireland and
Britain, there were significant developments in Irish trading patterns. These were also
positively influenced by Ireland’s accession to the European Community in 1973.
1.3 Legal and Political Framework
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The basic law of the Irish State is the Constitution of Ireland which was adopted by
referendum in 1937. The Constitution states that all legislative, executive and judicial
powers of government derive under God from the people. It sets out the form of
government and defines the powers of the president, of the two houses of parliament and
of the government. The Constitution defines the system of courts and regulates the
appointment of the judiciary. It also sets out the fundamental rights of citizens under five
broad headings: Personal Rights, The Family, Private Property, Education and Religion.
Freedom of conscience and the free profession and practice of religion are, subject to
public order, constitutionally guaranteed. The State guarantees not to endow any religion.
The majority of people belong to Christian denominations and at the 1991 census 92%
were classified as Roman Catholic. The rate of religious practice amongst Irish Catholics
is one of the highest in the world, although it is much lower than the statistics suggest. The
Catholic Church has been and continues to be closely involved in the provision of
education, health and welfare services. Much of this involvement is being re-negotiated as
the Church redefines its mission in the light of dwindling vocations and the emerging
voice of a more pluralist society.
Irish family law, based on the idealised model enshrined in Articles 41 and 42 of the
Constitution, is highly aspirational in character. At the same time there is, in practice, a
good deal of tolerance for deviation from the normative principles, a point which has been
witnessed in how the Irish people have dealt with the issues of abortion and divorce.
Duncan (1994) observes that ‘it is a feature of certain areas of Irish law that there exists, or
has existed, a considerable divide between legal aspiration or principle and social fact, but
that this divide has been mitigated by a remarkable flexibility in the operation of those
principles’ (p.450). His commentary poses interesting questions about Irish attitudes to law
and how Irish society resolves certain deep conflicts, most notably, divorce, abortion and
homosexuality. He suggests that our Catholic heritage of condemning the sin but not the
sinner may go some way toward explaining this flexibility, but concludes that a more
acceptable explanation, also influenced by our Catholic heritage, may lie in the in the
Church’s view of the civil law as an important buttress of moral living. The idea that laws
should be used to shape moral behaviour has in recent years given way to the more subtle
idea that change in the law may create an environment which makes the individual’s path
to virtue a more difficult one (Daly 1993; cit. Duncan 1994).
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Family law is not the only area of Irish law that has been honoured in the breach rather
than in the observance. Evidence presented at numerous recent tribunals investigating
political and financial scandals in Ireland supports the view that a culture of noncompliance has existed in respect of commercial and company law. A certain pride was
taken in the ability both to evade and avoid responsibilities, which was perceived to be fine
as long as you got away with it. Up until recently, if you were caught, who you were and
who you knew mattered in terms of how you were treated. Whilst rules and regulations to
manage all aspects of public life existed, a culture of bending or breaking rules emerged,
revealing a certain attitude to risk taking in Irish society. Some have attempted to explain
this practice with reference to the aforementioned Catholic heritage of forgiving the sinner
or to our colonial past where, much in line with the literary parallel of servant-master
relations, it was deemed a feather in your cap if you could dupe the master! The past five
years have seen a successful modification of Irish attitudes and behaviour in terms of
adherence and compliance with rules and regulations. Some examples include the move to
a self-administered income tax system with heavy penalties for non-return and failure to
meet the time deadline, on the spot fines for breaking speed limits, strict sanctions for
breach of drink-driving legislation and the clamping of illegally parked cars. All of these
interventions have been introduced to bring about a culture of compliance regarding
adherence to rules and regulations in Irish society. This supports Hofstede’s assertion that
as societies mature they manage uncertainty better, an evolution we are currently observing
in Ireland.
The general parameters of Irish political decision making are shaped by a highly centralised
bureaucracy, executive monopoly of legislation and a tightly controlled (political) party
system within the context of a personalist political structure (Coakley & Gallagher 1993).
The personalist political environment has nurtured a culture of direct contact-clientelism
between government ministers, senior administrators and organised representative groups.
Keeping a parliamentary seat in the family, so to speak, is also prevalent. It is sometimes the
case that the party will invite a member of the family of a deceased deputy to stand in the byelection. Merit does not enter the equation (Guiomard 1995, p.193). Whilst local government
plays a minor role in Irish political life, some would argue that the Irish electoral system,
which is based on proportional representation ‘gives too much weight to the constituencies
rather than the country, paralysing national economic management and postponing economic
reform’ (ibid., p.163). Guiomard argues that deputies must put the requirements of their
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constituency first (ibid., p.106), citing a newspaper column written by one previous Prime
Minister (Taoiseach), Dr Garret Fitzgerald, who drew attention to the issue of Cabinet
selection:
[…] despite Ireland’s tiny size, a Taoiseach choosing a Cabinet
must pay more attention to the geographical spread of Ministers
than to their individual suitability for high public office. In a
small country, drawing on a small pool of political talent, this is
ridiculous. […]
Without representatives elected at a national level, the overall
interest can only be of theoretical concern to ‘national’
politicians. (ibid., pp.180f.)
Taoisigh like Fitzgerald and Haughey saw the need for a system in which representatives
would also be elected at the national level, much in line with the German practice,
although no steps toward a change of procedure have been taken. The attention paid by
deputies and Cabinet members to projects in their own constituency may have contributed
to the clientelist approach within Irish political life, highlighted by Guiomard:
So public representatives deliver ‘regional policy’ by
compelling planes to land in their region. They deliver ‘jobs’ by
overstaffing public firms. They deliver ‘public accountability’
by appointing political associates to semi-state boards. (ibid.,
p.172)1
The current government consists of a coalition between two centre right parties, Fianna
Fail and the Progressive Democrats. The latter grew out of Fianna Fail after a split in the
party in 1985. The Taoiseach, Bertie Ahern, is leader of the Fianna Fail party, the Tanaiste
or Deputy Prime Minister is Mary Harney from the Progressive Democrats. No woman has
ever served as Taoiseach, unlike the office of President, although the number of women in
the Dail rose to 12% in 1991 (Mahon 1995, p.703). In the current Dail the percentage
stands at 11.4%. Three women (including the Tanaiste) are members of the Cabinet. The
agricultural heritage of the country together with the strong Catholic tradition have ensured
the maintenance of an essentially conservative base within politics, which sees even the
Labour Party occupying a position which is not far left of centre.
The long history of British rule in Ireland has left a significant legacy in terms of public
policies. While Ireland may be an independent nation, a common language and shared
tradition of government and administration still encourage Irish policy makers to look to
1
A certain number of flights between the US and Dublin are required to land in Shannon so as to ensure the
viability of the airport in Co Clare. This has become known as ‘The Shannon Stopover’.
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the British experience. Many scholars contend that Ireland displays a distinctly corporatist
pattern of group-state relationships, particularly in the economic sphere; indeed, some go
so far as to suggest that it displays a closed corporatist pattern of interest representation
(Galligan 1998). However, in the future, as part of the EU, Ireland’s policies will
increasingly be determined by Europe.
Amongst the political leaders of the twentieth century, de Valera and Lemass, FitzGerald
and Haughey are considered to have played critical roles in shaping the modern Irish State.
Much of the early social policy reflected the close relationship with members of the
Roman Catholic hierarchy. Indeed, during the 1930s de Valera’s vision of Ireland - the
myth of the Irish Catholic Nationalist State - became the reality of Ireland. This image
remained strong for many decades. It was only with the economic developments of the
1960s and 70s and then in the 1980s with the more liberal and pluralist political agenda of
Fine Gael (previously Cumann na nGaedheal), that a real shift occurred. These
developments had a moderating influence on the strong Roman Catholic ethos, a direction
which has continued in the 1990s. The tendency over the past decade for Ireland to place
increasing emphasis on her role in Europe has also contributed to this trend.
1.4 The Irish Economy
Ireland is a rich industrial economy. The World Bank ranks it 23rd out of 132 large
countries on the basis of GNP/capita of $12,200 (valued using international prices). As an
island located on the periphery of Western Europe, the Irish economy is very open. With a
domestic market of 3.5 million people it is heavily dependent on trade: exports of goods
and services alone amount to almost 80% of GDP. Following the emergence of the Free
State, what was good for agriculture was good for Ireland. Under de Valera Ireland
pursued an economic policy of self-sufficiency and reneged on paying land annuities to
Britain. The combined effect of both protection and economic war were dramatic. It is
widely accepted that the slow growth of the Irish economy in the 1950s was largely
because of the inefficiency of the industrial sector developed in the 1930s. The main
elements of Ireland’s current industrial policy were introduced in 1958 in the country’s
first comprehensive plan for economic development. There were three main elements to
the strategy outlined in 1958: the introduction of substantial capital grants and taxconcessions to encourage export-oriented manufacturing, the inducement of direct
investment by foreign export-oriented manufacturing enterprises in Ireland, and a
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transition to free trade. On joining the European Union Ireland was classified as a
peripheral nation and benefited greatly from European structural and cohesion funds as
well as becoming part of a large economic area in which goods, services, people and
capital can move freely. Since the 1980s policies have been implemented to curb
imbalances in the public finances: these are now proving successful insofar as annual
budget deficits have fallen from 10% to less than 3% in recent years. Living standards
have been converging with European levels over the past two decades and in 1995 per
capita GNP rose to over 70% of that of the European Union. Unemployment currently
stands at 6,5%. Further convergence is anticipated with greater numbers of women
expected to enter the labour force. According to one commentator: ‘As the twentieth
century closes, Ireland has become a district of Western Europe, perhaps with a little more
autonomy than a typical state in the United States, but with an economic future which is
congruent with that of Western Europe’ (Haughton 1995, p.47).
The ‘vicious circle of Irish industrialisation’ (Mjoset 1992, p.13), based on a weak national
system of innovation and continual population decline appears to have been finally
overtaken by a ‘virtuous circle’, at the centre of which lies a corporatist, consensual
approach towards economic recovery and lowering levels of unemployment. This strategy
has resulted in a rapid pace of development and economic stability. The growth of the Irish
economy since 1994, dubbed ‘the Celtic Tiger’, has been three to four times the average
growth of the European Union countries, higher than the OECD average and has exceeded
the growth of the Korean economy. Gray (1997) proposes a number of reasons for what he
calls the ‘remarkable turnaround’ in the Irish economy, stating that it is important to
understand these in order to ensure that growth is maintained. The reasons mentioned are
labour force skill and education, an English speaking workforce, the importance of foreign
investment coupled with a shift in the balance of international trade, the provision of
European subsidies, the role of convergence and the prospect of peace in Northern Ireland.
However, in spite of this remarkable performance significant economic poverty exists as
do high levels of unemployment. Two major tasks face Ireland as we move towards the
new millennium; the first is to address the problems of social inequality, the second is to
stimulate an Irish system of innovation encouraging the development of indigenous Irish
firms whilst reducing the country’s dependency on mobile foreign direct investment.
Continued growth for the Irish economy will depend on the ability of Irish firms to
compete successfully in global markets.
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1.5 Population and People
The population of the State in 1994 was 3.573 million and is expected to decrease to 3,568
million by the year 2000 due to declining a birth rate. As a democracy, Ireland is a
relatively unstratified society. Class is determined to a large extent by occupation. The
impact of size cannot be avoided in a small country and in Ireland everybody knows
somebody who knows somebody else. This of course has both positive and negative
implications depending on how these contacts are used.
Approximately 43% of the population is under 25, giving rise to the slogan ‘the young
Europeans’ and the proportion of working age (15-65 years) is 63%. At 39% of the
population, the labour force is significantly lower than the European average of
approximately 43%. This disparity is attributed to the large proportion of young people and
the relatively small number of women in the workforce. Irish workers were recently
described as the happiest, most satisfied workers in Europe. Levels of unionisation among
Irish workers are high with a trade union density of 53% (Roche & Ashmore, 1997).
However this density is gradually declining with the individualisation of the employment
relationship in a vibrant economy, coupled with the non-union attitudes of many of the
FDI companies investing in Ireland.
Until recently, Ireland was regarded as a predominantly patriarchal society. It had earned
this reputation because of its traditional stance on reproductive rights and the low
participation of women in the labour force. Irish women’s lives have changed. The extent
of this change can be seen in the comprehensive dismantling of gender-related
discrimination since 1970. Up until 1973 the Irish public service operated a ‘marriage bar’
which effectively required women to resign their post on marriage. This bar was enforced
in a less formal way in the private sector in respect of white collar female employees.
Scannell (1988) in a study of the position of women subsequent to the enactment of the
1937 Constitution found that
[f]or almost thirty rears after the Constitution was adopted, the
position of women in Irish society hardly changed at all. The
common law relegation of women to domesticity and
powerlessness continued. Laws based on the premise that
women’s rights were inferior to those of men survived in and
even appeared in the statute books. (p.127)
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In the 1970s a liberal agenda of policy reform dominated public discourse and was
strongly influenced by European Community directives. Demands for equal pay, access to
contraception and equality in education and welfare provisions were dominant and have
dramatically altered the choices for women in Irish society.
Similarly, family patterns in Ireland have undergone considerable change since the 1960s,
marking a growing distance between public religious observance and personal decisions.
Marriage, as an institution has fallen out of favour and since 1994 Ireland shares with
France the lowest marriage rates in Europe. In line with European trends, the number of
children borne out of wedlock is approximately 20%. Whilst the traditional family group
may be under stress, the role of family is still very important in Ireland as a form of social
support. In a European study, conducted in 1990, which measured attitudes towards the
traditional sex role of women, ‘the Irish were more likely to claim that being a housewife
and mother was just as fulfilling as working for pay, and accordingly more likely to
disagree that a job was the best way for a woman to be independent’ (Mahon 1995,
pp.696f.). Mahon concludes that ‘the Irish view housewife versus working-mother as a
matter of choice or opportunity and retain a respect for the housewife role’ (ibid., p.697).
Some 53% of adult women in Ireland remain homeworkers (K. Lynch & McLaughlin
1995, p.266). Whilst Irish society may be described as patriarchal, it is a society which
places a high value on mothers, who continue to exercise great influence both within and
beyond the family circle.
Mahon observes that by 1990 many more women were working outside the home,
especially married women, yet the increase in their representation had not filtered through
to the public sphere (1995, p.697). This changed in 1990 with the election of Mary
Robinson as President of Ireland. It is perhaps significant that the electorate has appointed
two women as President of Ireland in consecutive plebiscites and that both women have a
background in academia and law. The first, Mary Robinson, embodied with her liberal
agenda the changing face of Ireland and redefined significantly the role of President from
that of a mere figurehead to one of an activist for Ireland. At the same time she emphasised
the traditional values of humanity at home and abroad. It is not surprising that since
leaving office, she has been appointed UN High Commissioner for Refugees. Many Irish
men and women would consider Mary Robinson as possessing the characteristics of a
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leader figure, although her status as a leader is not endorsed overwhelmingly amongst the
participants in the qualititative components of the Globe study (cf. Sections 2.3.2; 2.3.3).
1.6 Education
One of the main catalysts of social change in Ireland has been education. Historically,
Ireland was christened the isle of saints and scholars. Education and learning have always
been valued and for many, a good education was the passport to a better life, to choice.
This emphasis has become more pronounced with the ‘shift from family property to
education as the principal means of reproducing social status’ (Fahey 1995, p.218).
Traditionally the dominant player in the provision of education at primary and second level
has been the Roman Catholic Church. According to NicGhiolla Phadraig schools are
‘important tools of religious socialisation’ (1995, p.603). With the dwindling power of the
Church in society and the falling number of vocations, schools are becoming increasingly
secularised, although the influence of the Church remains.
The Irish government introduced free secondary education in 1966. Irish children remain
in obligatory full time education until the age of 15. It was estimated that in 1992-3 73% of
the fifteen to nineteen age cohort was receiving full-time education (Department of
Education 1994; cit. Clancy 1995), which is broad-based and liberal in its range.
Participation in second level education remains lower than in many Northern European
countries. The government, cognisant of the implications of lower educational levels for
the labour market aims to raise participation levels to 90% by the year 2000 (Shaping our
Future: A Strategy for Enterprise in Ireland in the 21st Century, pp.157f.). The availability
of a young, educated workforce is one of the main arguments used by the Industrial
Development Authority in attracting foreign direct investment to Ireland. The Irish
educational system is consistently held up as exemplary when selling Ireland abroad.
Indeed, since the early 1960s the Irish government has pursued an interventionist approach in
respect of education as a means of promoting economic development (Walshe 1999, p.3).
According to Walshe:
Successive governments invested heavily in the system, partly
because of an innate belief that education would somehow
contribute to economic growth. The system, however, needed a
coherence and a direction and this began to emerge only
towards the end of the eighties and into the nineties’ (ibid., p.3)
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The aim of the Operational Programme for Human Resources Development 1994-1999
(Government of Ireland 1995) has been to maximise the potential of Ireland’s people and to
facilitate the shift to a knowledge-based service society. Some of the main developments
within the Irish educational system over the past decade have been its the introduction of free
fees to third-level colleges and the investment in the educational infra-structure. Much of the
funding for these projects has come from the European Social Fund. Free fees at third-level
have made some inroads into progressing the goal of equality of access to those from lower
socio-economic bands (Walshe 1999, p.121).
The recognition that Ireland’s human resources will constitute the key to the country’s
economic competitiveness in the next millennium has prompted a shift within educational
thinking toward the notion of continuous learning and with this, awareness of the imperative
of ongoing training within industry. The Programme for Human Resources Development
makes reference to the European Social Fund Programme Evaluation Unit’s Survey of
Employers (1993), which found ‘a general lack of a planned systematic commitment to
training in Ireland’. Investment in training and executive education has increased and is
funded significantly through EU channels. It is estimated that Irish industry spends just 1.2%
of labour costs on training compared with 3% in France and an OECD average of 2%
(Shaping our Future: A Strategy for Enterprise in Ireland in the 21st Century (1996), p.156).
There is increasing pressure on third-level institutions to produce graduates who respond to
the needs of industry, a trend which has seen the development of new programmes, many of
which have an interdisciplinary focus and embrace, for example, business studies, computer
science and foreign languages:
Unless the continuing education and training system develops
considerably it is likely that the occasional difficulties in
recruiting people will become more frequent, as skills and
experience in multiple disciplines come more into demand
(Shaping our Future: A Strategy for Enterprise in Ireland in the
21st Century (1996) p.155)
The preceding sections have provided an overview of Ireland’s social, economic and
political development in the course of the century. It is against this backdrop that we will
introduce the GLOBE study in Ireland, beginning with a presentation of the findings of the
research on Irish societal culture and leadership. This will be preceded by a brief summary
of Ireland’s profile on Hofstede’s dimensions. Hofstede’s research has remained the only
large scale quantitative empirical study of the dimensions of Irish societal culture until
GLOBE.
14
2.0 Hofstede and Ireland
Hofstede’s seminal research locates Ireland with the small Power Distance/Individualist
quadrant (Hofstede 1980, p.52), within the weak Uncertainty Avoidance/Masculine quadrant
(ibid., p.54) and the small Power Distance/weak Uncertainty Avoidance quadrant. In respect
of Power Distance, Ireland is the country which ranks fifth lowest. Interestingly, on all
dimensions, Ireland manifests a profile similar to Great Britain, much in the same way as
Germany’s positioning coincides on most dimensions with Switzerland and Austria. Whilst
Hofstede’s findings suggest similarity, the inhabitants of these countries would recognise that
there are fundamental differences in their societies, outlook on life and the way in which
business is conducted. Such differences may become more apparent through the inclusion of a
qualitative component to the research, including the incorporation of unobtrusive measures,
which were absent from the Hofstede study.
On the basis of the combined Uncertainty Avoidance/Power Distance dimensions Hofstede
distils a taxonomy which correlates particular types of national culture and organisational
model. Countries categorised as Anglo, Scandinavian and the Netherlands - including Ireland
- with small Power Distance/weak Uncertainty Avoidance have an ‘implicitly structured’
organisation type and their implicit model of organisation is identified as ‘market’. The
organisation has minimal structuring and dispersed authority; it tends to operate ‘not by
explicit regulation but by implicitly transmitted custom’ (Pugh & Hickson 1976, p.115), such
as might be found in small and mid-sized companies where management and ownership
coincide. This phenomenon is particularly interesting in an Irish context considering that
some 90% of firms employ less than 10 persons (Lynch & Roche 1995, p.15). Hoecklin
(1995) adapts Hofstede's paradigm (p.67) and suggests that Ireland's preferred organisational
configuration is the adhocracy and its preferred co-ordination mechanism is 'mutual
adjustment'. In other words, the members of the organisation adjust to each other mutually on
the basis of informal communication, and the key part of the organisation consists of the
support staff, that is people in staff roles who supply services. This is sometimes carried out
in conjunction with the operating core, in other words those who do the work (p.67).
Recent cross-cultural empirical research has paid scant attention to Ireland, lumped it
together with Britain or hinted a more schizophrenic profile. In a survey of top managers’
views on the diversity of management systems in Europe, Calori (1994) notes that managers
15
‘did not explicitly mention Ireland (which probably belongs to a broader Anglo-Saxon
block, but which may also share some Latin characteristics).’ (p.21). In respect of ‘managing
oneself’ Hickson and Pugh (1995) record: ‘Perhaps Britain and Ireland - so far as the latter
can be mentioned here, for the Irish, although not Anglo at heart, live in the British Isles are most so inclined’ (p.51). The Cranfield Study into management styles of senior
executives reaffirms to some extent the observation of Calori (1994). The researchers
identify similarities between the Latin and Anglo-Saxon cultures, which include Ireland, in
respect of top management styles, notably emphasis on charisma, individual performance
and non-rule driven behaviour (Myers et al. 1995, p.22f.).
Other economic and sociological commentators have also debated Ireland’s classification as
‘Anglo Saxon’ or ‘Latin rim’ (Mahon 1994, p.1278). In the sense that it is a ‘late
industrialising peripheral economy, it has similarities to other peripheral European
economies’ (ibid., p.1278). By the same token, ‘[i]t shares many modern features of core EC
economies: a stable political system, an effective civil bureaucracy, a high level of
education, and a progressive taxation system’ (ibid., p.1278). Mahon cites O’Malley (1989),
Girvin (1989) and O’Hearn (1989) in asserting that Ireland has ‘failed to attain industrial
maturity and this has been explained in terms of the barriers it faced as a late industrialising
economy or of its post-colonial ‘dependency’, inviting comparisons with South American
economies or newly industrialising East Asian countries’ (ibid., p.1278). It is evident that
since the publications of Girvin, O’Malley and O’Hearn, Ireland has matured industrially
and that some of the indicators of a ‘Latin rim’ orientation may be diminishing. The nonrule driven behaviour, noted by Myers et al., may be giving way to a different approach as
structures are put in place to ensure greater transparency and accountability.
It is important to bear in mind these insights and the questions which have been raised as to
the appropriateness of Ireland’s classification when turning to discuss the findings of the
GLOBE study which surveys the Ireland of the 1990s.
2.1 GLOBE and Ireland
2.1.1.Introduction
The GLOBE study in Ireland is based on analysis of 156 questionnaires collected in the food
processing and financial services sectors, two focus groups and two semi-structured
qualitative interviews conducted with middle managers in these sectors. The choice of food
16
processing and financial services was motivated by the fact that both industries can be
considered as wholly indigenous, a situation which does not prevail in telecommunications. A
review of unobtrusive measures of culture and leadership, including stamps, banknotes, street
names and statues has also been undertaken by the researchers in an attempt to explicate
features of Irish identity which impact on attitudes toward leadership within social and
organisational settings.
At the centre of the GLOBE study has been the development of a scale for the evaluation of
societal cultural norms. The scale builds on Hofstede's (1980) four cultural dimensions and
includes Power Distance, Uncertainty Avoidance, Gender Differentation, which replaces
masculinity/femininity, and Collectivism I in place of Individualism/Collectivism. It
introduces Assertiveness, which was previously part of Hofstede’s masculine/feminine
dimension, but is treated as a separate index by GLOBE. Four further dimensions are
included, namely, Future orientation (Kluckhohn & Strodtbeck 1961), Performance
orientation (McClelland 1961), Humane orientation (Kluckhohn & Strodtbeck 1961), and
Collectivism II, that is, collectivism as an orientation discrete from individualism. The
findings elicited by the various methodological approaches will be detailed in the following
sections.
2.2 Irish Societal Culture at the Close of the Twentieth Century
Table 1 presents the findings in respect of Irish societal culture in terms of a) absolute mean
scores on a seven point Likert type scale, b) an indication of country membership clusters for
each country dimension, a-c (d), c) the rank order on each dimension compared to the other
60 participating countries and d) an absolute score indicating the difference between the two
culture measures, ’as is’, observations on how it is at present, and ‘as should be’, the value
placed on how the participants would like it to be.
17
Table 1: Results for Ireland on the nine GLOBE cultural dimensions at the societal level
Culture Dimension
Observation The way it is"as is "
Values
mean score cluster
mean score cluster
Power Distance
Uncertainty Avoidance
Collectivism 1
Assertiveness
Gender Equality
Humane Orientation
Family Collectivism
Performance Orientation
Future Orientation
5.15
4.3
4.63
4.08
3.21
4.96
5.14
4.36
3.98
C
B
A
B
B
A
B
B
B
rank/61
35
23
9
20
38
3
38
15
21
The way it "should be"
2.71
4.02
4.59
3.99
5.14
5.47
5.74
5.98
5.22
Difference
rank/61
C
C
B
B
A
B
B
B
B
should be -is
30
49
35
19
3
29
28
30
43
-1.44
-0.28
-0.04
-0.81
1.93
0.51
0.6
1.62
1.24
a)Country mean score on a seven point Lickert scale
b)Cluster letter A-D indicating meaningful country clusters
for the scalesA>B>C(>D)
c)The rank order for Ireland relative to the 61 countries
d)Absolute difference between the "should be" and "as is" score.
The results presented in Table 1 show very high scores and rankings on two dimensions in
terms of how it Irish society is at present. Humane Orientation is ranked 3/61, in cluster A,
and Collectivism 1 is ranked 9/61 and also located in cluster A. Ireland is adjudicated by the
participants to place a very high value on humanity and to be a very collectivist society. In
terms of values, Irish managers think that we should continue to have a very strong humane
orientation, however the international comparison and cluster categorisation suggest that
comparatively less prominence be attributed to this. Much less emphasis should be placed on
Collectivism I: Irish managers would like Irish society to become more individualistic, the ‘as
is’ at 9/61 ‘should be’ 35/61. At the other end of the scale we see low observations for Power
Distance, 35/61; Gender Equality 38/61 and surprisingly, Family Collectivism, 38/61. In
terms of the values, Gender Equality ‘should be’ 3/61 and has the highest absolute difference
between the ‘as is’ and ‘as should be’ scores, suggesting that Irish society places great
emphasis on redressing gender-based inequality. Equally, increased Family Collectivism is
deemed desirable with a shift in international rankings from ‘as is’, 38/61 to ‘as should be’,
28/61. On Power Distance, Ireland’s relatively high ‘as is’ mean score was ranked 35/61
internationally and grouped in cluster C suggesting that, comparatively, Ireland continues to
be characterised by low Power Distance, as suggested by Hofstede. Irish middle managers
would like to see this further reduced. A further four dimensions were measured by the
GLOBE survey. On Performance Orientation Ireland ranks 15/61 whilst receiving the highest
‘should be’ mean score of all Irish scores. However, the comparative rank for Ireland in terms
of future value is 30/61. We can observe exactly the same trend for Future Orientation.
Ireland is a relatively non-assertive society, ranking 20/61 and wishes to maintain this level of
18
non-assertiveness. Finally, Ireland is characterised by a reasonable level of Uncertainty
Avoidance, 23/61. Irish middle managers would like less emphasis on regulation and would
like Irish society to be more risk-oriented, the ‘should be’ comparative ranking is 49/61 for
Uncertainty Avoidance. If we examine each of these dimensions individually and within the
context of the issues discussed in the first part of the chapter, it is possible to posit a number
of explanations as to the emergent trends within the data set.
Humane Orientation
Whilst the Irish data rank amongst the highest on the ‘as is’ scale of humane orientation, the
notion that Ireland should be more humane is interesting. This high ‘as is’ score 4.96, rank
9/61, cluster A, is probably a result of our strong Christian and Catholic heritage and the size
of the country. The Irish public gives generously to local and overseas charities and is very
supportive of humanitarian appeals for disasters abroad. For decades, Irish missionaries have
ministered to the needs of those in developing and third-world countries and nowadays are
assisted by many young volunteer workers. There is a long tradition of charitable institutions
being funded by the state and run by religious orders, a pragmatic solution to the problems of
cash shortages. Even today, in spite of the benefits of the Celtic Tiger economy, hospitals
continue to have fund-raising committees staffed by volunteers. In respect of organisations
which represent and work for those with disabilities, the State does provide resources for core
services but there continues to be heavy reliance on voluntary funding.
The higher ‘should be’ score (5.47) may be stimulated by the perception that the ‘softer’,
gentler characteristics of life in this country are being sacrificed to the ‘Celtic Tiger’ through
economic success and emphasis on performance and individual achievement. Guiomard
(1995) writes of his desire to see a modern day social democracy embracing a ‘combination
of productivity and equity’, which is founded on ‘a policy of “hard heads, soft hearts” –
sensible but compassionate economic policies’ (p.19). According to Collins and Kavanagh
(1998): ‘There has been a marked increase in the level of inequality (in Ireland) over the past
twenty years’ (p.172). Whilst the wealthiest 20 percent of the population has increased its
share of national income from 46.7% in 1972 to 52.5% in 1994, income distribution for the
lowest 50 percent fell from 18% to 11.5%. A comprehensive welfare system does exist, but,
as in many other developed nations, fails to catch all in its net. Many of those who remain on
outside the system are reliant on handouts and other services provided by different voluntary
organisations.
19
Ireland is becoming and will continue to become a more pluralist society. Already, the impact
of an increasing number of foreigners and refugees seeking either political or economic
asylum in the wake of the country’s prosperity, is being felt. The influx of refugees is a
relatively new phenomenon when compared with other industrialised nations and the
legislators have not been quick to respond and to plan for the future. Ireland was effectively
shielded over number of decades by its relative economic weakness, its island geography and
by Britain from immigration and thus Irish society has remained remarkably homogenous.
Whilst there is a tolerance within Irish society of difference within the ‘in-group’, this not
necessarily replicated in respect of ‘outsiders’ from other cultures who seek refuge in Ireland.
The Department of Justice has been involved in latter years in several controversial decisions
not to grant asylum and thereby stimulated considerable public debate, possibly in light of the
relative ‘newness’ of the problem. Against the backdrop of the recent Kosovo crisis, the Irish
government asserted its intention to fulfil its responsibilities and to offer temporary sanctuary
to 1000 refugees until such times as they can return home. Such affirmations have provoked
debate in the media as members of our society have sought to remind politicians and the
public at large of the humanity of other nations who have, over the centuries, received large
numbers of Irish emigrants. Through economic prosperity Irish people have forgotten their
own diaspora. In a letter to the editor of a leading newspaper, the writer stated: ‘I have never
felt ashamed to be Irish, but when I read about the ongoing attack on refugees, visiting
students and non-white Irish people and our Government’s ambivalence to it all, I feel that
very soon I will’ (The Irish Times, April 29, 1999). In the future, Irish people expect fear and
greed to be more apparent and politeness, generosity and tolerance to wane. Jupp and O’Neill
(1994) record: ‘Our socio-cultural values will be severely tested as twice as many people
expect us to be less caring by the next millennium’ (p.12).
Collectivism 1
Hofstede classified Ireland as individualistically-oriented, a profile which deviates from the
view held by respondents to the GLOBE questionnaires who see Irish society as relatively
collectivist. Within the Collectivism I scale, Ireland ranks within the highest grouping, cluster
A, in the ‘as is’ scale, 4.63, rank 9/61 and slightly less in the ‘as should be’ scale. The high
level of collectivism is an outcome which is compatible with our size and post-colonial
history. There is a strong sense of belonging to a parish, of community-level interdependence
especially in a rural context. Most indigenous Irish sports are team-based and membership of
20
collectives is high. It has been noted in Sections 1.3 and 1.5 that recent statistics cite trade
union density at 53% and membership of the Catholic Church is 92%.
This high positioning on the collectivism scale may be influenced by the collective sense of
national pride and self-esteem evident in Ireland today. Such collectivism, labelled
‘corporatist partnership’ by some (Sweeney 1998), has undoubtedly contributed to the
economic boom. There is a shared sense of well-being influenced by positive economic
growth, low unemployment, availability of jobs for all and an absence of the forced
emigration, which saw some 200,000 people leaving Ireland in the eighties. The collectivist
orientation may draw on the sense of solidarity, of battling together: government, employers,
trade unions, farmers, voluntary organisations and the unemployed through the process called
‘social partnership’ to achieve this positive outcome. The Programme for National Recovery
(1988-1990) secured trade union support for cuts in public spending. This was followed by
the Programme for Economic and Social Progress (1991-1993) and the Programme for
Competitiveness at Work (1994-1997). Partnership 2000 was agreed by all interest groups in
1997. Partnership at enterprise level, which requires culture change in companies, is a key
component. The agreements have functioned well in past years and are only now beginning to
be challenged in some quarters by those who perceive that whilst the economy booms and
government coffers are full, the benefits are not being equally distributed.
There has been a definite move towards encouraging greater collective responsibility in
dealing with a variety of societal administrative and behavioural matters such as drinking and
driving, car parking, tax avoidance and evasion. It is suggested that this trend is symptomatic
of desire to foster an independence rather than a dependence culture and also mirrors the
trend toward Irish individuals accepting collective responsibility for what is acceptable in our
society. Creating a sense of national solidarity has been and is vital in facilitating collective
action to bring about the many changes which we are witnessing in Irish society today.
Despite the high levels of Collectivism reported to exist in Irish society, Irish middle
managers wish to see less emphasis on collectivism and more individualism in Irish society.
One economist presents a different view on collectivism in Irish society: ‘[…] our rhetoric
stresses the community over the individual, upbraiding the upstart and the self-starter,
implicitly requiring that everybody stay in his or her appointed place’ (Guiomard 1995,
p.186). Such a commentary raises a number of interesting issues in respect of Irish attitudes
21
to failure and to power distance. Peter Sutherland, ex head of GATT and Ireland’s previous
EU-Commissioner, observed in 1990: ‘[W]e have a capacity for excessively admiring noble
failure. […] We seem sometimes to be inured to coming off worst and almost to wallow
wilfully in this’ (cit. Guiomard 1995, p.188). The notion that we like to see others fail is a
theme which recurs in both the focus groups and the ethnographic interviews where it is
discussed in the context of leadership in Ireland. It is reminiscent of the ‘tall poppy’
syndrome identified in Australian leadership. Ashkanasy and Falkus note with reference to
Mackay (1993), ‘Australians do not necessarily dislike success, and only demonstrate the ‘tall
poppy’ syndrome when success is accompanied by arrogance and any inherent implication of
authority’ (The Australian Enigma, p. ), an observation which again has implications for
power distance, which will be discussed later in this section.
Gender Egalitarianism
The desire for greater gender egalitarianism reflects current reality within Irish society.
Comparatively, Ireland ranks low on gender egalitarianism on the ‘as is’ scale and third
highest, 3/61, on ‘as should be’ (4.52). Since Hofstede’s study, which classified Ireland as
high on masculinity, the dismantling of discriminatory legislation and expanding
participation of women within the workforce have altered the profile and role of Irish
women in society. Nonetheless, they remain underrepresented at senior management level
across a number of sectors. Despite the existence of equality legislation passed in the
1970s, ongoing research on equal opportunity since the 1980s has revealed stable
underlying gender cultures in place in key Irish companies (McCarthy 1988). Working
women in Ireland are segregated into a small number of occupational groupings and they
are still striving to achieve equivalent earnings to men. By contrast, women are extremely
active in a voluntary capacity at local level in their communities. In 1993 over 600
women’s groups were being supported by government subsidies in a wide variety of local
community endeavours. Coulter posits that ‘the mushrooming of locally-based women’s
groups over the past few years has been the result of a marriage between the influence of
modern feminism and tradition’ (1993, p.48).
Education has facilitated greater gender equality, although some academics would argue
that sex role models are reinforced by schools. Lynch draws attention to the contradiction
with which those attending single sex girls’ schools were confronted:
[…] on the one hand they were educated to compete and
succeed in the formal educational system with a view to gaining
22
labour market advantages that go with it; on the other hand they
were socialised to be guardians of the moral order, to be
unselfish, non-assertive and appreciative of the cultural rather
than the purely material products of the age. (K. Lynch 1989,
p.27)
Such social stereotyping has implications for the career choices made by women and how
they view their role within society in the new millennium. Whereas equality of access does
exist in medicine, law, science and business studies/commerce courses, there is still an
uneven take-up of some traditionally male-oriented subjects at second-level and women thus
remain underrepresented in some third-level courses, most notably engineering.
The shift away from masculinity described by Hofstede’s findings attests that the country has
made progress in achieving egalitarianism, although the findings also echo the widespread
and explicit recognition that we still have considerable distance to travel. The ‘should be’
value placed on egalitarianism, 5.14, 3/61 speaks volumes in terms of the recognition to
redress this perceived imbalance in Irish society. The nature of the GLOBE sample may
emphasise this imbalance as the workforce within the food industry remains predominantly
male. In fact, the respondents to the questionnaires in this particular sector were 100% male.
It is also important to record that the participation rate of women in the workforce has begun
to drop on account of the shortage of crèche facilities and the high rate of marginal taxation.
Such a trend could have serious long-term implications for the economy which has already
begun to experience skills shortages in certain sectors.
Family Collectivism
There is a possible link between the perceived need for Irish society to be more humane and
the wish - albeit less pronounced – for more Family Collectivism. Surprisingly, the ‘as is’
score for Family Collectivism places Ireland in the B cluster and ranks Ireland 38/61. The
espoused value ranks Ireland 28/61, highlighting the desire expressed by the participants of
the GLOBE survey for greater Family Collectivism.
This may be traceable to the increasing fragmentation of Irish society in the wake of shifting
values, coupled with economic development, attendant urbanisation and the sense of
displacement and anonymity which this can produce. Moreover, the changing role of women
and their increased presence in the workforce, together with divorce,2 have repercussions for
2
Divorce had been banned in the 1937 Constitution. The ban was lifted after a referendum which led to the
legalisation of divorce in the Family Law (Divorce) Act of 1996.
23
the stability of family life and may contribute to the desire for more family collectivism.
Whilst the family is given pride of place in the Irish constitution, our confidence in the
benign and supportive nature of Irish family life has been shaken in recent years (O’Connor
1992). A succession of visiting anthropologists has commented on the rural Irish family
(Arensberg & Kimball 1940; Brody 1973; Scheper-Hughes 1979). The traditional pattern of
family organisation involving strictly delineated gender roles, an authoritarian pattern of
decision- making and discipline has become less common. With the emergence of dual career
families, fathers are becoming less enabled to adopt patriarchal roles.
Ireland is perceived as a good place to rear children according to McCullough (1991) which
may reflect the idealisation of the Irish family. Kinship ties are still strong in both rural and
urban families and many people obtain important levels of support from their family and
neighbours. However, the changing role of women also contains implications for childcare
and care for the elderly. According to Lynch and McLaughlin (1995):
‘[…] women are likely to provide care to a range of people
across the generations – parents, parents-in-law, siblings, as
well as spouses – whereas men are likely to provide care to
their own wives. This, in turn, means that women are more
likely than men to provide care while they are of working age,
and therefore that women are much more likely than men to
forego earnings from paid employment to provide care.
(p.272f.)
Provision for childcare at the workplace is inadequate; childcare facilities are privately run
and few organisations provide these for their employees. State run facilities are non-existent,
nor are there tax allowances for childcare. State provision for residential homes for the
elderly also falls short of needs. As Lynch and McLaughlin (1995) observe: ‘While public
care services for older people are greater than they were 50 years ago, this does not
necessarily mean that people receive less care from close kin or friends; public care most
often supplements informal care rather than substitutes for it’ (p.261). In recent years
allowances for carers have been increased as part of a general trend toward care in the
community, although they are means-tested and domiciliary services such as meals-onwheels, home help and day centres remain inadequate and are provided by the voluntary
sector, rather than by the State (ibid., p.269). Lynch and McLaughlin note that although the
Republic of Ireland is rather unusual insofar as it does make some provision for carers in its
social security system, the actual sharing of costs between carer and the State remains
minimal (ibid., p.283). The family remains an important fulcrum in Irish life. Children
24
frequently remain in the family home until they have completed their studies and many do so
until marriage. The desire for greater individualism on the Collectivism I scale and for more
family collectivism on the Collectivism II scale is not incompatible. Family collectivism is
centred on the private sphere as opposed to the public orientation of Collectivism I.
Power Distance
One of the most paradoxical results to emerge from the GLOBE survey relates to Ireland’s
positioning on the power distance scale. Hofstede classifies Ireland as low on power distance,
a view which is not held by the Irish respondents to the GLOBE questionnaires who express
the view that our society has quite a high level of power distance – 5.15 ‘as is’ and that it
needs much less, 2.71 ‘as should be’. This shift mirrors precisely the profile emerging from
the English data. Ireland ranks 35/61 placing Ireland mid-range, and we are located in cluster
C (on a scale of a-c) highlighting that we are among the lower power distance societies on a
comparative basis. There is an interesting contrast between how we see ourselves and how
we compare with other countries.
A point worth considering as an explanation for the perception of high power distance within
Irish society is the notion of centralisation. It might be posited that, faced in the 1980s with a
galloping national debt and rising unemployment, central government and its various
departments assumed greater powers as a means of tackling these problems. Brussels and the
EU are also perceived to represent a centralised power exerting ever greater influence on Irish
society. Other organs of centralised power include the Church, which has been the target of
vocal reaction from both clergy and laity. Where the locus of power is seen to be more
centrally defined, those who are affected by its mandate may discern its influence to be
greater.
On the surface Ireland would not appear to be a very formal society. People do not use titles,
prefer first name terms and tend to relate to each other as equals in a familiar way, regardless
of position or status. Yet, underneath this behaviour is an awareness of the power
relationship, which is not obvious to the casual observer or outsider who could easily misread
such familiarity. There is a sense that everybody knows his or her place. Irish society cannot
not be described as elitist; status is achieved rather than ascribed, yet status can confer certain
privileges as a number of recent scandals within Irish public life have demonstrated and
which recall Lee’s observations in respect of rewarding position rather than performance
25
(1989). The abuse of power by named politicians, members of the judiciary, the banking and
accounting professions, well-known chief executives in the agricultural and financial services
sectors and government departments in a wide variety of now exposed activities has caused
great concern in Irish society. Clientelism and networking have always been an accepted part
of life in Ireland; in political contexts, as noted in Section 1.3, this may have been
underpinned by the pivotal role played by the local constituency. As Nic Ghiolla Phadraig
points out:
[T]hose who have been educated in elite Catholic schools are
over-represented amongst the judiciary, financiers, business and
independent professions. Past pupils who chose medicine might
receive further assistance in their careers by appointments in the
substantial proportion of voluntary hospitals run by religious.
There is also a tendency to recruit teachers from among past
pupils. (1995, p.615)
Whilst such networking previously remained in the private sphere and there was considerable
suspicion, speculation and whispering, it is now entering the public domain as fact, courtesy
of numerous tribunals, trials and public investigations. Undermining the clientelist approach,
transparency and accountability are part of the canon of the late 1990s. They are a
consequence of the country’s economic development and EU-membership which have
necessitated the creation of new structures and more explicit reporting relationships.
Irish managers wish to see less power distance as demonstrated by one of the highest absolute
differences between the ‘as is’ 5.15 and ‘should be’ 2.71 scores. However, the shift is modest
by international comparison, a move from rank 35 to rank 30 out of the 61 countries in the
survey. Like all countries, Ireland wants to see power more equally divided in Irish society.
At the same time we continue to be classified in cluster C, thereby signalling a wish to
remain, comparatively speaking, a low power distance society.
This attitude to power distance may be linked to the latent disrespect for authority held by
Irish people. Paxman notes, albeit with reference to the English, that the result of the ‘English
obsession with privacy and individualism has been to create a people who are not easily led.
They distrust exhortation, and the further away they are from metropolitan life, the stronger
their cussedness’ (1998, p.134). Whilst the English and Irish would not consider themselves
to be natural bedfellows, it is possible to recognise within Irish society a similar disposition.
Attempts to impose new regulations on different aspects of daily life have traditionally been
ignored on a wide basis and form part of the culture of non-compliance. This situation is
26
changing rapidly as structures are being imposed to modify behaviour across a variety of
fronts. A further shift has also been reiterated throughout this chapter: For years the Catholic
Church stood as moral arbiter and wielded an authority which remained, until recently,
unquestioned. The growing confidence of a younger, more highly educated generation
coupled with the many scandals within the Church has fundamentally altered this sense of
acquiescence. Society has become more critical not only of the hierarchy, but also of political
leaders and institutions, a trend apparent in media coverage of recent, political and financial
scandals.
Future Orientation
Today, Ireland is a society looking to the future. The respondents recognise a moderate level
of future orientation ‘as is’ 3.98, ranked 21/61, but would like to see significantly more
emphasis on this (5.22). The comparative rank of the ‘ should be’ score at 43/61, suggests
that other countries are more focused on the future at this point in time.
With increased economic prosperity, the stability offered by continuity of employment
provides a more solid basis on which to plan for the future and encourages a move away from
managing on a day to day basis. The efforts of the Irish Industrial Development Authority in
pursuing a policy of attractiveness to targeted MNCs, specifically in the technology sectors,
cannot be underestimated as a successful planning strategy. Central planning to sustain
economic performance and growth is also evident. In its Operational Programme for Human
Resources 1994/1999 (Government of Ireland 1995), the Irish government outlines
programmes aimed at maximising the potential of Ireland’s most significant resource, its
people. Investment in training and executive education has increased and is funded
significantly through EU channels. Higher levels of investment in R&D within industry – the
figure has more than quadrupled since 1982 when it represented a paltry £42.5 million – is
also evident. However the percentage remains modest when juxtaposed with other European
countries and is lower in indigenous Irish firms than in foreign companies (J.J. Lynch &
Roche 1995, p.48-52), a factor which may have to do with size. Within organisations
strategic planning has assumed new dimensions, even if the Anglo-Saxon model of
shareholder as opposed to stakeholder value remains predominant amongst the larger,
publicly listed companies. It is also evident how individuals within Irish society have become
more pro-active in making independent provision for their future as evinced by the increase
in numbers acquiring third-level education, purchasing health insurance and making pension
27
arrangements.
According to a recent study ‘Reflections on Ireland in the Year 2000’, most Irish people
expect the future to be a process of steady evolution in which individuals will create their
own destiny (Jupp & O’Neill 1994, p.6). When asked what positive factors were likely to
impact on the future Irish society, Irish people listed the following: an increase in the
availability of jobs in the computer sector, an increase in the availability of part-time work,
an increase in the number of working women, an increase in the numbers of Irish people
setting up their own business, the availability of divorce and the possibility of full-time
second-level education for all children up to eighteen years of age. Among the negative
factors, the following issues were mentioned: having to emigrate for a job – the fate of
countless generations of Irishmen and women - the increasing number of foreigners and the
impact of American culture on Irish culture.
One area where the lag between reality and policy making for the future is to be seen, is in the
area of infrastructural development. A lack of foresightedness on the part of previous
governments to plan adequately for the future is reflected in an inefficient public transport
system, and a rail and road network which has not kept pace with economic development.
Massive grants from the EU have helped in this respect, but successive cabinets have failed
to put forward a cohesive plan to tackle the severe traffic congestion within rapidly
expanding urban areas. The current administration has set aside some £30 billion to invest in
an infrastructure which lags behind that of many of its European neighbours and could
ultimately compromise Ireland’s attractiveness as a location for inward investment.
Performance Orientation
Lee has spoken of an inadequate ‘performance ethic’ in Irish life and argues that people are
rewarded for their possessions, notably land, jobs, education and wealth, rather than for their
performance or enterprise. Guiomard posits that this attitude helps to explain the lack of
enterprise and of an entrepreneurial class, arguing that the economy rewards unproductive
behaviour more favourably (1995, p.41). The implication that rewards are offered on the
basis of ascription rather than achievement, may have characterised Irish attitudes to
performance in the past, notably in the public sector, which is the target of much of
Guiomard’s criticism. Yet, there is a suggestion, if one considers the findings of the GLOBE
study, that the respondents recognise the need for a more performance-oriented society and
there is evidence that Ireland in the late 90s has become more performance-focused, as
28
attested by the emergence of the Celtic Tiger. There has been a growth in performance
management type systems in work organisations, a trend which is expected to continue in
order to facilitate labour market flexibility.
The ‘as is’ score for performance orientation stands at a moderate 4.36, ranking Ireland at
15/61 in the top quartile of countries. The value for performance orientation records a
significantly higher 5.98, but the comparative rank drops to 30/61, suggesting that many other
countries are also concerned to become more performance-oriented. Factors which have
contributed to the desire for increased performance orientation include the country’s
continued economic development, the shift from an inward to outward focused policy,
membership of the European Union, the number of foreign direct investment firms located in
Ireland and the global economic environment. In 1985 Ireland became a net exporter for the
first time. This outward looking perspective stresses the need to continue to be competitive
on a global level, hence the recognition by the Irish sample of the necessity to increase
performance orientation in the face of ever strengthening competition. In The Financial
Times (26 May 1995), Ireland was recorded as having a productivity record that ‘would be
the envy of the Germans, and a balance of payments surplus in line with Switzerland and
Japan’. Notwithstanding the recognition that transfer pricing can distort national figures in a
small economy (Stewart 1997), there is a strong consensus that Ireland is growing fast.
Maintaining the level of performance and growth will be the challenge of the future.
Uncertainty Avoidance
Hofstede categorised Ireland as low on the uncertainty avoidance scale. The GLOBE findings
indicate that we have become more risk averse (4.30 ‘as is’, rank 23/61) and desire to become
less so (4.02 ‘as should be’, rank 49/61). It is again possible to attribute this belief to the
extent of economic and social change since Hofstede’s study. Reference has also been made
in Section 1.3 to the fact that as societies mature, they become better at managing uncertainty.
A number of examples have been given in respect of Ireland’s attempts to manage uncertainty
through better planning and management. Macro-economic planning, the emergence of the
‘social partnership’ to address the problems of unemployment and inflation in the 1980s and
early 1990s, improved educational policies linked to future prosperity and building a culture
of compliance regarding adherence to a variety of rules and regulations for the good of the
country and its citizens are all examples. The welfare system provides a safety net for less
privileged members of society although it has been criticised in some quarters for propagating
29
a dependency culture (Guiomard 1995). Additionally, people now insure their lives and
possessions more comprehensively against risk, which also ties in with the move to a greater
future orientation. In comparison with other countries, Ireland has described as ‘lightly
regulated environment’ with respect to employment regulation and benefits (Sedgwick, Noble
Lownes 1998).
Another dimension which might be considered as a good example of uncertainty avoidance is
the high percentage of private house ownership in Ireland. Indeed, owner-occupation
accounts for some 80% of all housing, the highest figure in any European country. The EU
average in 1996 was 56%, with 38% in Germany, 47% in the Netherlands and 43% in
Sweden (Balchin 1996). Home ownership has always been seen as a sign of personal security
which, in the past, was very important in Ireland with our legacy of foreign landlords. This
trend also exists within the United Kingdom, where historically it had its roots in the link
between property ownership and the right to vote (Paxman 1998, p.122). Whilst the
aspiration to own one’s own home may well continue into the next millennium, soaring real
estate prices will ensure that for many it will remain unfulfilled in spite of steps taken by the
government to try to safeguard what many would consider to be a personal right.
By the same token, opportunism, the testing of boundaries and risk taking continue to
permeate Irish life. Recently, Ireland’s Objective 1 structural funding from the EU was
threatened by the country’s rapid economic development, which meant that it would no
longer qualify for maximum assistance. In an attempt to secure continued Objective 1
funding, the government took the step of dividing the country into regions, a move which was
not predicated on any ideological adherence to the goal of decentralisation. Rather, it was
motivated solely by the prospect of losing out financially.
Ireland is not a particularly bureaucratic country; much value is still attached to the notion of
a word of mouth culture, although the indispensability of written documentation both in the
workplace and in dealing with public institutions has gained in importance as the country has
evolved socially and economically. Nonetheless, off-the-record conversations do remain
intrinsic to how we communicate with each other, together with subtle signalling known as
‘nodding and winking’ which has close ties to the clientelist approach and is much more akin
to Hall’s (1976) high context communication. Keeping situations open-ended, providing
loop-holes, bending rules (cf. Section 1.3), avoiding closure are mechanisms often used to
30
manage uncertainty at the individual level. For instance, at a critical board meeting in Ireland,
the actual meeting is often the formal conclusion to many informal messages and exchanges.
The critical agenda setting and networking will have taken place earlier.
Possibly because of the size of the country, people may feel that they can manage the risk and
that it can be negotiated. The ‘as should be’ scale may indicate a sense of constraint which is
imposed by increased regulation and structure. However, such a view is changing rapidly in
the era of freedom of information and increased accountability. It is interesting to juxtapose
the risk avoidance scale alongside that of future orientation. Irish people, according to the
GLOBE study, clearly wish to be more future-oriented which implies greater emphasis on
planning and with this a reduction of risk.
Assertiveness
Assertiveness refers to the degree to which individuals in a society are allowed to be
aggressive, dominant and the opposite, non-assertiveness, refers to non-confrontational, nondominant social relationships. A mean score of 4.08 suggests that Ireland is neither assertive
nor non-assertive. The ‘as is’ and ‘as should be’ scales for assertiveness indicate that Irish
people wish to reduce this dimension from an already moderate level (4.08 ‘as is’, 3.99 ‘as
should be’). Ireland’s communication has a strong basis in the oral tradition with evidence of
recourse to metaphor, euphemism and legend and is ‘particularly suited to the expression of
ambivalence and ambiguity’ (Bourke 1999, p.206). A study of face-to-face negotiation
illustrates that confrontation is not valued (Martin1998). Issues will not be dealt with headon. Indeed, the nature of communication again points to the fact that Ireland may have more
in common with high-context cultures (Hall 1976) on the basis of the implicit knowledge
which the participants in an interaction are assumed to possess. Often what is not said, is
more important than what is said and an ability to read between the lines is essential. V.
Kenny (1985) writing from a construct theory perspective elaborates on social relations in
Ireland. He talks of social withdrawal by which he means superficial compliance, indirect
communication, the lack of self-revelation and the elaboration of secret worlds. These can
result in such behaviours as understatement, evasiveness, the avoidance of conflict and selfexhibition and passive aggression. Evidence of this was found in the focus groups when Irish
managers spoke of how they relate to information and behave at meetings by comparison
with their counterparts in the U.S. This can be disconcerting for people who speak the same
language as us, but do not use language in the same way, including our closest neighbours
31
within the British Isles.
Before concluding on the societal dimensions, it is useful to comment on the two sectors in
which the data were collected. A high degree of consensus exists among the middle managers
from both the food processing and financial services sectors for Irish society to become more
future, performance and humane-oriented. Interestingly, the food sector middle managers
place more emphasis on performance, whilst the financial sector managers place emphasis on
the future. Both sectors recognise the need for greater gender equality, although this emerges
more clearly from the financial services industry where some 50% of employees are female.
By contrast, the demand for reduction of power distance was greater in food processing
companies. One possible explanation for this is that food sector companies (their owners,
managers and the government department dealing with them) have been publicly criticised
for their lack of transparency in awarding contracts and in financial matters and have been
subject to investigation by the European Union. It is also interesting to record that
respondents from the food processing industry, unlike their counterparts in financial services
see more assertiveness as desirable, although the difference is minimal. This may be due to
the pressures on the food industry: Stakeholders, including farmer/producers and employees
feel that their interests have not been protected with sufficient vigour in the light of greater
EU, government and consumer demands, which have resulted in the need for greater
efficiency.
The broad similarity between the two sectors in their ‘as is’ and ‘as should be’ profile renders
it difficult to pinpoint any significant influence exerted by sector on perceptions of prevailing
social conditions and the desired direction of social change. In summary, the Irish GLOBE
data indicate a considerable shift away from Hofstede’s conclusions, especially in respect of
collectivism, uncertainty avoidance and masculinity. We have remained a low power distance
country despite our own perceptions to the contrary. There is a much greater emphasis on
performance and on future orientation. These findings must be seen as a reflection of the far
reaching changes which have taken place in Irish society and which have been documented in
the earlier part of this chapter.
One of the central objectives of the GLOBE study is the investigation of the impact of
societal culture on leadership. The following section explores Irish societal perceptions of
leadership with reference to unobtrusive measures of culture, as defined by Webb (1966), the
32
focus groups, the ethnographic interviews and the quantitative study of societal leadership.
2.3 Leadership in Irish Society
Interest in the study of leadership in Ireland has been relatively limited. Much of the literature
which is available on leaders within Irish society and business is autobiographical in its
focus, excellent examples being Kenny’s In Good Company: Conversations with Irish
Leaders (1987) and Out on their Own: Conversations with Irish Entrepreneurs (1991). In the
introduction to In Good Company: Conversations with Irish Leaders (1987), Kenny
elaborates on his criteria for selecting the fifteen leaders appearing in the book; ‘they had
made a substantial and enduring contribution’ (1987, p.2), he knew them well and therefore
trust existed. The diversity of the figures appearing – five from the public sector, five from
the private sector, one from the Catholic Church and two from the media – is striking. So too,
the absence of women and politicians, although as Kenny points out: ‘There are women in
Irish life who have made a major contribution. I just don’t know them well enough’ (p.4). In
respect of the attributes of leaders as asserted by the participants Kenny identifies the
following recurrent themes:
They have the ability to listen and they have the ability to be
tough. A high value is put on trust and loyalty. […] They are
not, or at least do not like to be, remote figures: several are
happiest among the troops. They think of themselves as
pragmatic and practical but with a high level of conviction.
They see this conviction as an essential element in influencing
others. While they are far-sighted and can see the big picture,
they believe ideas come from all over the place. […] They are
themselves decisive – they abhor indecisiveness in others. They
do not tolerate organisational politicking at all. They like to
stretch people and give a lot of attention to selecting them.
They have definite views about the qualities needed in a chief
executive: he must be the all-round man, both managerial and
entrepreneurial; have a good track record; have integrity and be
a good communicator; and be totally and exclusively dedicated
to the job. While they take much advice, they trust their own
judgment and suffer little self-doubt: […] They are continually
willing to learn: ‘when you stop learning you’re dead. (1987,
pp.6f.)
It will be demonstrated later in the chapter how many of these attributes emerge as significant
contributors to leadership success from both the qualitative and quantitative GLOBE data.
Other attributes which are emphasised by the interviewees include the importance of being
able to delegate and to use the talents and skills of others, to build a strong team, to set goals
and see clearly where they are going, to seek consensus, to possess determination and
33
patience - although several admit to not being patient - and to take risks. They all emphasise
performance. The concept of trust also features prominently. A further point which is raised
and resurfaces in the focus groups, relates to the begrudgery of success in Irish society: One
prominent business leader records: ‘In Ireland you have to work twice as hard to make an
impact and, when you are getting to the top, everyone is trying to pull you down’ (Kenny
1987, p.73). The individual whose name is mentioned most frequently as having been a
successful leader in Irish society is Sean Lemass.
Some of the issues raised in the Kenny interviews should be seen in the context of the
economic crisis which the country experienced in the 80s. There is a sense of frustration with
politicians, with the political system and with the inefficient dinosaur of the public sector,
which contrasts with the strong performance ethos which the interviewees cultivate in their
own spheres. Amongst the six defects in the operation of the governmental system, as
recorded by one of the leaders, four have already been noted in the course of this chapter,
notably clientelism, centralisation, neglected political development and arrogant paternalism
(ibid., p.257). Twelve years ago, this leader called for the establishment of consensus
between government and citizens as the way forward and as a means of promoting collective
responsibility. He drew attention to our ‘insular smugness’ as one of the main barriers to a
successful society. Since the publication of these comments it is clear that a successful
partnership between government and citizens has evolved and that the benefits of this are
being by felt by large sections of the population. One can only speculate on the durability of
such cohesion and the likelihood of a rerun of the mid-1960s scenario in the wake of a period
of economic expansion, as identified by one leader in Kenny’s interview collection:
[…] within a few years, the glamour had begun to wear off.
People had begun to be selfish again, instead of being socially
cohesive and, by the mid-1960s selfishness was rampant and
people were taking for granted a miraculous four per cent a year
growth. They felt this would continue indefinitely without any
help from themselves. (ibid., p.290)
In the GLOBE societal data there are signs of a desired shift toward greater individualism in
public dealings and more family collectivism in the private sphere. How continued economic
growth will impact in the long term on these values will be revealed in the coming years.
Interestingly, whereas many of the other country chapters within the anthology can draw on
studies of leaders and leadership in their particular societies, there is a singular lack of any
incisive theoretical analysis of leadership in Ireland or large scale empirical study. This is in
part due to the preponderance of the self-analytic, autobiographical or biographical approach.
34
The situation is reminiscent of that highlighted by Murray (1987) in respect of Irish
entrepreneurship: ‘The existing empirical studies […] concentrate on entrepreneurs rather
than entrepreneurship’ (p.43). One study was conducted by researchers in the IMI (Irish
Management Institute) and the Institute of Personality Assessment and Research (Berkeley,
California) with 37 Irish leaders in the business and industrial sector. It involved self and
other assessment based on a battery of psychological tests including intelligence,
psychological type, personal philosophy, aesthetic discrimination, personal and social
qualities and concept mastery (Barron & Egan 1966, p.13). The authors do not distinguish
between the terms ‘manager’ and ‘leader’ and use these terms interchangeably. Moreover,
they concentrate on the attributes of the persons under consideration, rather than on
leadership. Those attributes which emerge most clearly are ‘the achievement motive, personal
dominance and leadership, and freedom from self-doubt’ (ibid., p.20), some of which have
already been highlighted in our brief review of Kenny’s 1987 interviews; independence is
balanced by conformity; feminine nurturance also features and challenges the authors’
expectations: ‘[…] there is much supporting evidence in the self-description of the more
original managers, as well as in the psychological staff description of them, that they
possessed to an outstanding degree various features of masculine ascendancy and dominance’
(ibid., p.22). In their conclusion, they observe: ‘There is an odd combination of masculinity
and sense of the poetic in them. Their vision is of conquest, mastery, personal dominance,
command’ (ibid., p.29). Some of these apparent incompatibilities may be explained by the
context of leadership, a dimension which Barron and Egan do not explore.
The contextual nature of leadership is underscored by Kenny (1987), who observes:
‘Leadership is contingent on the circumstances of the time, the constraints and
opportunities, the culture or sedimented attitudes of the people we have to work with.
There are no solutions that can be transferred at a gulp from one bit of experience to
another’ (1987, p.6) He concludes in respect of the conversations conducted with Irish
leaders: ‘Any lessons we have to learn from these men must be seen in context’ (ibid., p.6).
The importance of context is further elaborated by Leavy and Wilson who set themselves the
task of exploring how ‘leadership, context and history interact in the formation of an
organisation’s strategy and how this changes over time’ (1994 p.2). The research is casebased including interviews with 40 executives and an analysis of archival material on four
35
organisations and the successes and failures of thirteen leaders who worked within them. In
the model of strategy formation which they present, the leader constitutes one component
alongside context and history. Their analysis of leaders is focused less on attributes and more
on the challenges which they faced within their organisational and historical context. Strategy
and leadership are seen as distinctive concepts which are interrelated (ibid., p.2). The authors
emphasise their attempts to adopt a multi-level approach ‘to describing and analysing the
influence of context on strategy and leadership’ which they claim, with reference to
Pettigrew, to be unusual in the fields of leadership and strategy (ibid., p.5). Leaders, they
posit, are ‘tenants of context and time’ (ibid., p.3). They classify the leaders who form part of
the study into four generic groupings, i.e., builders, revitalisers, turnarounders and inheritors
(ibid., p.113) and identify five contextual factors which seem to have exerted the greatest
influence on strategy within the organisations under scrutiny. They are: technology, industry
structure on a national and international basis, the international trading environment, national
public policy and social and cultural transformation (ibid., p.141). Perhaps the most
interesting source of influence, from the perspective of the current research, is the social and
cultural transformation within Ireland which has had profound implications for the nature of
leadership. The authors draw attention to the shift in the 1960s away from the leader as
‘nation-builder’ who was ‘driven by values forged during the revolutionary times’ and in
times of peace had harnessed this ‘nationalistic passion and leadership talents to the practical
patriotism of laying down the economic infrastructure of the new state’ (ibid., p.165). The
new direction of leadership was towards ‘careerism, managerialism and professionalism’
(ibid., p.163), epitomised by Tony O’Reilly3:
Under his [Lemass’s] leadership a new kind of hero or
economic patriot, the professional manager, began to rise in
stature. The men who rose to govern the country in the postLemass era had come to power because they were men of
ambition rather than of destiny who had chosen politics as a
career. (ibid., p.164)
Without pre-empting the findings of the focus groups and ethnographic interviews which
form part of the GLOBE study, it is interesting to record that leaders within the business
community, including O’Reilly, were seen as being effective within the context of their
organisations, but not as outstanding leaders within society. This raises further interesting
questions as to the historic dimension of leadership and the durability of certain kinds of
leader figure within public memory which, in turn, is kept alive by stamps, monuments and
O’Reilly rose to fame when appointed at 30 years of age as chief of the Irish Sugar Company. He went on to
become CEO of the Heinz Corporation.
3
36
other unobtrusive measures of culture.
2.3.1 Unobtrusive measures of Culture and Leadership within Irish Society
Stamps, statues, banknotes and street-names possess symbolic significance. They ‘recall,
evoke the sentiments of, or otherwise render recognizable the cultural mappings of basic
social and ecological relationships in human society’ (Garrison & Arensberg 1976; cit. Kane
1986, p.549), they bear witness to the historical and social evolution of Ireland and its
continuing transition and shaping of a new identity. These unobtrusive measures point to an
ideal of leadership which is clearly centred around the notion of the romantic hero and
liberator, possessing vision and willingness to risk his life for the freedom of the country.
This type of visionary leadership still has validity within Irish society in the 1990s.
The emergence of the Irish State and its evolution from a small, inward looking economy to a
fully integrated member of the European Union is charted by its stamp design. In particular, it
has chronicled in recent decades the changing face of nationalism and the burgeoning selfconfidence of the Irish nation. Irish stamp design reflects the country’s ongoing search for its
own role and identity within the context of its post-colonial relationship with Britain and the
new opportunities promised by Europe. As David Scott observes:
Ireland, though a small country on the margin of two major
cultural nexuses – Britain and continental Europe – has mostly
attempted to promote an authentic image of its cultural identity
rather than resort to the vacuous neologisms or characterless
glamour promoted by some small Southern European, Near
Eastern or West African states. (1995, p.92).
The semiotic value of stamps as an assertion of nationhood cannot be disputed. The first
stamps to emerge post 1922 thus reinforced through their use of motifs and symbols
traditionally associated with Irish heritage, specifically the shamrock, the Celtic cross and the
harp, the religious and scholarly self-image possessed by Ireland (ibid., p.87f.). Up until the
Republic of Ireland Act in 1948, which Scott sees as a watershed in Irish stamp design,
stamps continued to mirror those themes which were ideologically close to the young State,
most notably religion and nationalism. The colour green also featured prominently in this
context and has continued to retain its heavy symbolic value, together with orange, the
emblematic colour of the Northern Protestant tradition. Scott records that of the 34
commemorative issues produced between 1929 and 1959, twelve celebrated Irish political
and nationalist events, 9 religious festivals, 6 cultural themes, 3 economic themes, 2
37
American- oriented topics, 1 science and 1 the founder of the Argentinian navy, who,
significantly, was also a leader in Argentina’s independence movement (ibid., p.88; Miller
1986, p.37). Both the US motifs and the Argentinian commemorative issue attest the
permanence of the diaspora within collective memory. Of interest are not only the
prominence awarded to the patriots of Ireland’s struggle for independence, also a distinctive
theme of monuments and statues of the period, and the minor attention to economic and
scientific matters, but also the choice of language on the stamps. The Irish language featured
exclusively in 16 of the commemorative stamps, 4 were bilingual Irish-English and 1
bilingual Latin-Irish; the remainder were English (10) and Latin (3) (Scott 1995, p.88). Those
in Latin reiterated the dominance of the Catholic tradition, whilst the choice of Irish
underpinned the sense of national identity which was being forged by de Valera in his
establishment of an Irish Catholic Nationalist State.
The period after 1949 shows a move toward bilingual stamps, connoting the growing selfconfidence of the Irish nation which also found expression in the broadening of the range of
topics depicted by Irish stamps. The inward looking policies which characterised the de
Valera years ceded in the late fifties to a gradual opening of the Irish economy which
culminated in accession to the European Community. The sixties witnessed a nationalist
revival which coincided with the fiftieth anniversary of the 1916 Easter Rising, which
together with its heroes was remembered in commemorative issues (ibid., p.89). Scott also
documents a renascence of the Irish language in commemorative issues during these years,
which may be linked to the country’s need to reassert its own cultural identity and heritage
during a period of social and economic change which saw a shift toward Europe. The
increase in literary and artistic motifs together with a greater emphasis on themes which attest
Ireland’s technological and scientific accomplishments reflect the move to a more
international outlook and process of maturation as a state.
As with stamps, the figures who are represented on banknotes tend to be overwhelmingly
male. Whilst Ireland has produced a significant number of prominent women in both the
literary (Maud Gonne, Lady Gregory) and political (Countess Markiewicz4) spheres, the
representation of women as contributors to the country’s development tends to be limited to
their participation within the caring professions, religious life and as homemakers, reasserting
the centrality of the family together with its Catholic ethos within Irish society. In spite of the
4
A commemorative stamp to Countess Markiewicz appeared in 1968.
38
erosion of the role of religion and the dominance of the Roman Catholic Church, the
achievements of founders of religious orders continue to be commemorated on current
banknotes. Indeed, banknotes immortalise many of the figures who have at some point
appeared on stamps, most notably, those who have furthered the Irish cause during her
colonial past, including Daniel O’Connell, father of Catholic Emancipation, and Charles
Stewart Parnell, and those who have made a major contribution to literature such as James
Joyce.
The focus within collective memory is firmly on the patriot-hero, a theme which is captured
by statues and monuments around the country. Monuments and public sculptures are
significant insofar as they ‘are commissioned and placed by a small, powerful group (the
politics of public space)’ (Hill 1998, p.11) which, in effect, attempts to determine the shape
of public memory. The turbulent history of Ireland and its passage from colonial to postcolonial status are reflected by many of the monuments. Classical monuments, which were
erected by dukes and viceroys to the honour of kings or military prominents of the British
Empire and were thus equated with imperialism, have in a number of cases vanished. Some
were removed after independence, as was the case with the equestrian statue of King William
III of Orange5, symbolic of the Protestant tradition, or were blown up, the fate of Nelson’s
Pillar in 1966. The latter, erected between 1808 and 1809 expressed, like many other
monuments of its time, an Irish Protestant identity (ibid., p.62), which was not the religion of
the majority, yet it became the centrepiece of Dublin’s main street and, according to Hill,
‘[t]his protected it from being removed, despite the voices raised in the nationalist
atmosphere of the nineteenth century and after independence in the twentieth century, arguing
that a monument to Nelson was irrelevant and undesirable’ (ibid., p.64). The arbiters of ‘the
politics of public space’ were at the time of its erection the land owning and politically
influential Protestant class. It is important not to confound ‘Protestant’ with ‘British’ for
many of their number sought greater freedom from Britain. By the mid 19th century there was
general support amongst Catholics and Protestants for the need to forge an Irish identity
through monuments, even if the conception of this identity was not always shared. The
monuments which emerged during this period thus paid tribute to those who had furthered
either constitutionally or at arms the cause of Irish sovereignty and the fate of its people, most
notably Daniel O’Connell. Representatives of the literary tradition included figures such as
Edmund Burke and Oliver Goldsmith. In the 20th century the heroes of 1916 provided the
5
Dublin is the only European capital without an equestrian statue (Hill 1998, p.83).
39
symbolism with which to shape the identity of the newly independent state, an image of
Irishness also communicated by stamps. Moreover, independence monuments frequently
adopted religious imagery which also underpinned the ideal of the Nationalist Catholic State.
Smyth charts an important evolution within Irish commemorative art in the 20th century
which moves away from a narrow ethnic view of public memory to a ‘view, which searches
for Irish identity across the broader front of Catholic and Protestant traditions encompassing
the Celtic, Norman and English influences in politics, institutions, art and thought’ (Smyth
1985; cit. Hill 1998, p.201). This may also be considered against the backdrop of a maturing
state which is questioning the need to give explicit expression to the nationalist legacy in line
with its growing European orientation.
Other forces have also been at work in determining the changing orientation of public
sculpture. The process of its selection has become more democratic. There are new patrons
amongst the business community who wish to emphasis their links with art and thereby to
provide the ‘philistine’ pursuits of commerce with a more acceptable face and to reinforce
their own status within the community. Artists and literary figures such as James Joyce, W.B
Yeats and Oscar Wilde continue to be immortalised in stone, yet frequently are cast in shapes
and forms which hold a more popular and, indeed, humorous appeal. Other sculptures
address themes which have impacted on everyday people both in the present and past.
Women tend to be represented either as the mythical Erin or in their role as mother or carer.
The most recent memorial to the Great Famine stands symbolically alongside the
International Financial Services Centre, a testimony to Ireland’s recently found success. Their
juxtaposition encapsulates the crossroads at which the country now finds itself: growing selfconfidence co-exists with a sense of nostalgia and looking to the past rather than the present
for inspirational leader figures.
Those persons commemorated by stamps and monuments are the same figures whose names
appear on public buildings and streets, which were frequently, rather than comprehensively
renamed to reflect Ireland’s transition to independence. Sackville Street became O’Connell
Street; train stations are named after the 1916 hero Pearse and the trade unionist, Connolly.
Lack of public recognition of achievements and achievers in the business world may be due
to the relatively recent commercial success of the country; businesspeople who wish to have a
building named after them, tend to have to provide the funding. In spite of the significant
40
contribution made over the past centuries to the advancement of science – notables include
Boyle, Holland and Walton - the country has not shown the same enthusiasm as other
European countries such as Germany and France in lauding its scientists through streetnames
or buildings.
In the next section we turn attention to the view of societal leadership emerging from the
focus groups which constitute the second qualitative component within the methodology
employed by GLOBE.
2.3.2 The Focus Groups6
When Zaleznik (1992) posed the question, ‘Managers and Leaders: Are They Different?’,
he concluded that they were, suggesting that for managers style seems to count more than
substance and process more than reality. Making such a split between leaders and
managers is a technique for highlighting differences. The nature of such differences
became apparent during the two video and audio-taped qualitative focus group discussions
held in Ireland in 1995. The participants, both male and female, were drawn from a cross
section of industrial and commercial backgrounds. On the basis of the focus group
research, several preliminary hypotheses are presented in respect of leadership
characteristics in Ireland.
A number of threads can be identified in respect of Irish attitudes to leaders and leadership.
There would appear to be only low levels of leadership identification and followership
characteristics within a societal context. There is little confidence in Irish business figures
as leaders, whilst the memory of past public figures, including statesmen such as de Valera
and Lemass, is very much alive and they are generally credited with the shaping of modern
Ireland
Management, as an operational activity, was contrasted with the strategic focus of
leadership by the focus group members. Leadership was perceived to be a very senior
management characteristic. For example, when asked whether they could identify leaders
at different organisational levels, identification was almost solely confined to the highest
echelons of the organisation. Outstanding leaders are seen as visionary, charismatic,
inspirational, tenacious and risk takers. They can take a ‘helicopter view’, they possess
41
intelligence, tremendous drive and are outstanding motivators. Verbs used to describe
leaders included ‘to inspire’, ‘to guide’, ‘to stimulate’, ‘to direct’ and ‘to communicate’.
Leaders have an ability to command respect and to take tough decisions and, critically, to
get people to follow. This, in turn, raised the question as to whether implementing the
vision was a function of management or leadership? In both groups there was a consensus
that leadership involved influencing people to do something. In this context, the role of the
leader in creating versus implementing an existing vision was discussed and the notion that
leadership is about getting people to follow or to buy into the vision, rather than actually
creating it. Similarly, a leader can take an idea and create a vision around it, a view which
corresponds with Gardner’s ‘innovative leader’ (Gardner 1996, p.10). Examples cited
included de Valera and Haughey. Hitler was also mentioned in the context of not having
created National Socialism, but having created a vision around this concept in the minds of
the followers.
It was also suggested that leaders need to manipulate people and that leadership sometimes
consists of negative control with leaders concealing their real objectives. In the words of
one participant: ‘I think being an outstanding leader is not seeming to manipulate, but is
manipulating all over the place. And he's not seen to control, he is controlling. He's using
all sorts of techniques, methods to get his own way’. It is worth recalling the old adage that
Irish people cannot be led but rather, they must be inspired. Indeed, Irish people tend to be
low on obedience to authority – a point which has been discussed within the context of
power distance - and consequently do not always make good followers. In Ireland powerful
people are frequently seen as leaders, yet the feeling in the focus groups was that it was
important to distinguish between having power and being a leader, the difference lying in
the use to which power is put. Such a view is also expressed by Gardner (1996, p.16).
Indeed, the abuse of authority conferred by what might be referred to as ‘position power’ is
rejected by the participants. There is a strong awareness of the negative side of leadership,
encapsulated by the statement, ‘Great leaders can have very […] negative attributes’.
Adolf Hitler and Jim Jones are mentioned in this context.7 Likewise, some of the
6
We would like to acknowledge the assistance of our colleague, Gemma Donnelly-Cox in this phase of the
research.
7
It is possible to recall a point made by Kenny in the introduction to In Good Company: Conversations with
Irish Leaders (1987). Kenny notes that when he decided to write a book on Leadership, a number of those
featured in the text expressed unease with the title. One rejected it outright as ‘he associated the leadership
concept with the Führer Prinzip of the dictatorships which clouded so much of our adult experience’ (p.3).
Whilst the average age of the focus group participants was lower than the leaders featured in Kenny’s book, it is
nonetheless interesting to record the durability of such associations.
42
participants noted that a good leader doesn’t have to be liked, but that he must enthuse
people to follow: ‘Very often they’re not liked. Very often they’re authoritarian, but they
still get the work done’. One view to emerge clearly from the focus groups was that
outstanding leaders are often those who remain in the background, rather than flaunting
their authority.
A further point relates to the notion that leadership is context framed. The participants
were unable to divorce leadership from context, irrespective of whether the context is
generated by a political party or an organisation. The leader stands out from the crowd in
his own micro-culture and his status is achieved both by an ability to inspire and by
knowledge of the industry. This assumption contains interesting implications for the
GLOBE hypothesis that organisational culture will exert a greater influence on
organisational leadership than societal culture.
The focus group members have reservations about conferring prominent Irish business
figures with leadership status. There was great dissent as to whether the outstanding
businessmen in both the Irish and international business sphere, could be considered as
outstanding leaders. The conclusion was that they were outstanding business people but
not outstanding leaders. This view might have a historical dimension, in that Irish
perceptions of leadership are of romantic heros, or it may be that business leaders are not
widely recognised outside their domain. Our relatively late emergence as an industrialised
nation implies less experience of prominent business figures. It is also worth recalling a
point made by one Irish management writer who observes that it is the peasant culture
which attributes lesser value to business, than, for example, the professions (Kenny 1991,
p.4). Furthermore, it has often been suggested that Irish people do not laud financial
success and that attitudes of begrudgery exist (ibid., p.5). The notion of begrudgery
together with the preference for indirectness in communication, which has been discussed
in the context of assertiveness, are clearly articulated by one focus group member in a
comparison of Irish and American communication styles:
Americans are much more enthusiastic […] if you think you
can do something in Ireland, you say, ‘Well I think I can, I’ll try
anyway’. Americans, if they have a vague idea, they say
‘Absolutely, I can do it’. […] and they come over here and we
think they’re eejits [idiots] for saying they can do it when in
fact they can’t. We love to see them fail.
43
One interesting point to emerge from the focus groups is the contrast between the lack of
confidence in Irish business leaders operating within Irish organisations and the general
belief that they perform well abroad. There appears to be great confidence in the potential
for Irish business leadership outside Ireland. The qualities which were identified repeatedly
by the focus group participants included adaptability, versatility and lack of bureaucracy.
Indeed, the lack of structure which was criticised within indigenous Irish management was
regarded as a strength in international performance. These views were summed up
successfully by one participant who observed:
I think the Irish have proved themselves to be very adaptable,
whether it comes from our history of emigration. […] I think
we have established a reputation for working hard and although
we may be perceived as not working hard in Ireland, I think we
go abroad and embrace a certain culture. I think we adopt a
camouflage of a particular culture no matter where we go and I
think we adopt the rules of that society in order to succeed.
Some of the points raised in the focus groups in respect of leadership coincide with features
of Irish societal culture which have been elaborated in Section 2.2. Characteristics of
outstanding leaders such as willingness to take risks and an ability to cut through bureaucracy,
in other words, low uncertainty avoidance, the desirability of competence in one’s particular
leadership context which ties in with the desire on a societal level for greater performance,
the recognition of the importance of people with its implicit orientation toward a humane
society are recurrent themes which tie in with the societal level indicators. So too, the
desirability of lower power distance is mirrored in the rejection of authoritarian leadership.
The only female figure to be mentioned by the focus group participants as personifying
outstanding leadership, which may mirror the traditionally patriarchal nature of Irish society
and the relatively recent phenomenon of female political leaders, was ex-President Mary
Robinson. Curious is the naming of Charles Haughey as a leadership figure in spite of a
number of scandals which have shadowed his career, beginning with his trial and acquittal in
the seventies on suspicion of arms shipments for the IRA. During his period of office as
prime minister dishonesty and shadiness in political and personal dealings were never far
away, although he continued to enjoy a great deal of support amongst the grass roots
members of his party and the broader electorate. Whilst the extent of corruption is now being
aired in the public domain at various tribunals of inquiry, some years after the focus groups
were conducted, Haughey is recognised as having possessed vision, a notable example being
the establishment of the International Financial Services Centre, and charisma. Whereas
44
previously wrongdoing was often countenanced, the tribunals now seem to have assumed an
almost cathartic function, marking Ireland’s growing confidence and desire for greater
transparency.
Many of the themes voiced in the focus groups re-emerge in the ethnographic interviews
which will be discussed in the following section.
2.3.3 Ethnographic Interviews
Two semi-structured interviews were conducted with Irish middle managers. Both were
audio-taped and subsequently transcribed. As in the focus groups, the main qualities of an
outstanding leader were considered to be vision, charisma, willingness to take risk and
drive. The outstanding leader fulfils a strategic function as opposed to the competent
manager who is effective on the operational level and doesn’t take too many risks. The
outstanding leader sees the big picture – the so-called ‘helicopter view’ mentioned in the
focus groups – and is able to take a global approach, to maintain control, to adapt to
situations and to get around bureaucracy and red-tape which may stand in the way of
achieving a goal. He will adapt behaviours and strategies around the organisation and, if
necessary, change it to achieve his goals. Inability to delegate, getting bogged down by
smaller issues, aggressive and dominant behaviour together with steamrolling ideas and
opinions are the hallmarks of ineffective leadership. Whilst it was recognised that the
leader must on occasions be assertive, consensus was seen as a preferred orientation
together with the notion that he must buy people into the vision. To achieve this, charisma
was seen as critical. The ability and desirability of looking ahead was also seen as critical
and links in with the move to greater future orientation as expressed in the questionnaires
on societal culture. The views expressed in the interviews correlate broadly with those
documented in the focus groups. In turn, they reflect many of the values which have been
pinpointed in the quantitative study of society ‘as is’ and ‘as should be’, most notably, the
preference for more collectivist, consensus-based leadership, low uncertainty avoidance
and low assertiveness.
Outstanding leaders identified by the interviewees included Richard Branson, Mahatma
Gandhi, Margaret Thatcher and Lee Iacocca. What they had in common was conviction in
their goal; they were able to keep this end goal in sight, to maintain a clear sense of their
vision and not to be side-tracked by minor incidents. They were self-motivated and even if
they failed, they tried again. It is interesting to note that the choice of leaders centres on
45
figures who are not Irish. One of the interviewees did mention the achievements of Tony
O’Reilly, described by Leavy and Wilson (1994) as ‘the archetype of the new national hero
emerging from Lemass’s economic revolution’ (p.124), but added that whilst he had
created the vision, he didn’t share it with the people with whom he was dealing. The
emphasis on consensus building alongside the individual achievements of the leader
indicates the desire for a more inclusive, consensual approach to leadership.
The contextual dimension of leadership was also asserted, much in the same way as in the
focus groups: ‘I found it very hard to pick out two or three well known, outstanding
leaders. I could give you hundreds of names, if you took the likes of Hitler or any sporting
or political or army situations. But they are created by the events that surround them and I
don’t believe that they would be outstanding leaders put in other time situations or put in
another set of circumstances’. It was considered difficult to achieve consensus on who is or
is not an outstanding leader.
A point mentioned by one of the interviewees, which recalls an issue raised in the focus
groups, relates to begrudgery in Irish society. Within the business community, there is an
underlying assumption that anyone who makes a success of things has been involved in
some form of shady dealings. Kenny (1991) underlines this perception: ‘If you fail in
Ireland, people always like to be able to issue their condolences. If you succeed, they all
wonder what funny business you are up to’ (p.5). However, the belief is expressed that the
old system of ‘you twist my arm and I’ll twist yours’ is changing, undoubtedly mirroring
the societal changes which have been highlighted earlier in this chapter and which have
emerged in the analysis of the societal data. These changes are further reflected in the
quantitative study of societal leadership.
2.3.4 The Quantitative Study of Societal Leadership
The middle managers who formed part of the Irish sample were asked to rate 112
leadership items on a scale between 1 (greatly inhibits a person from being an outstanding
leader) and 7 (greatly contributes to a person being an outstanding leader). The items were
distilled into 21 leadership scales. The results for Ireland are summarised in Table 2.
46
Table 2 : Characteristics of Leadership in Irish society
Characteristics
Performance Orientation
Autocratic
Modesty
Self-sacrificial
Team:Collaborative
Decisive
Diplomatic
Face -Saver
Humane
Visionary
Integrity
Procedural
Administrative Competent
Self-centred
Autonomous
Status conscious
Inspirational
Malevolent
Team Integrator
Conflict Inducer
Non-Participative
Mean score
6.38
2.48
5.11
5.11
5.46
6.14
5.44
2.48
5.01
6.33
6.19
3.5
5.6
1.99
3.95
3.63
6.33
1.66
6.19
3.36
2.24
Cluster
Rank/61
A
C
A
B
B
A
A
C
A
A
B
C
B
C
A
C
B
D
A
C
C
6
39
26
22
34
10
34
46
24
7
25
48
46
40
24
53
17
40
12
55
53
The characteristics of leaders in Irish society which are deemed by the respondents to
contribute to outstanding leadership include performance orientation, vision, inspirational,
integrity, decisiveness and ability to integrate. Other attributes which feature as positive
contributors include modesty, diplomacy, willingness to sacrifice self, humanity,
administrative competence and team organiser. By contrast, significant inhibitors include
face-saving, self-centredness, malevolence, non-participative orientation and autocratic
style. Such characteristics have in many cases already been highlighted in the focus
groups, the ethnographic interviews and the review of unobtrusive measures and they also
demonstrate a strong correlation with some of the findings from the quantitative study of
societal culture ‘as is’ and ‘as should be’. Furthermore, a number of the positive attributes
emerging from the quantitative study are congruent with the qualities identified in Kenny’s
(1987) conversations with Irish leaders, such as integrity, decisiveness, performance,
vision and team integrator (cf. Section 2.3).
The profile to emerge from the qualitative and quantitative data indicates that within Ireland
charismatic value-based leadership is endorsed. The attributes which embody such a view of
leadership must be contemplated against the backdrop of societal change in Ireland which has
been discussed in earlier sections. It is not difficult to understand why performance-oriented
47
leadership is valued if one considers the dynamic imposed by social and economic
innovation. There is a sense in which respect for performance is inextricably linked with
Ireland’s stage of industrial development and the search for leader figures who will maintain
the momentum of the Celtic Tiger and deliver both economic and social outcomes. It is worth
reiterating that the societal culture data emphasise the desire for greater performance and
future orientation.
The Irish participants observed that vision is an extremely desirable characteristic for any
leader in Irish society. The desirability of inspirational leadership underpins the notion that
Irish people need to be inspired rather than led. So too, willingness on the part of the leader to
sacrifice him/herself for the common good may connote some form of residual adherence to
the image of the romantic hero which features so prominently on stamps and monuments and
continues to shape collective memory. It also attests the positive value attributed to risk
taking, a perspective which emerges from the focus groups, the ethnographic interviews and
the questionnaire data on societal culture. The importance attributed to the characteristic
‘team integrator’ suggests the centrality of buying people into the vision and the ability to
ensure commitment to the vision, a view echoed by the qualitative research. Decisiveness and
integrity are esteemed and may reflect the move towards the expectation of greater clarity of
vision coupled with the shift away from the clientelist approach towards transparency within
Irish society. Furthermore, the view that decisiveness substantially enhances leadership
effectiveness marries well with the aspiration to maintain the momentum of progress into the
next millennium and with the point expressed in the ethnographic interviews that a leader is
someone who sees things through. The recognition that administrative competence enhances
societal leadership can also be linked with the broader thrust toward performance orientation.
Within the societal culture data the humane orientation features prominently on both the ‘as
is’ and ‘as should be’ scales. Indeed, Ireland enjoys one of the highest rankings on the ‘as is’
scale and there is belief that Irish society should be more humane. Various explanations have
been offered which potentially account for the value attributed to a style of leadership which
is more compassionate, including the belief that the Celtic Tiger has undermined the ‘softer’
human values on which Irish society traditionally based itself. Contributing to this profile is
the fact that modesty and diplomacy are seen as positive dimensions of societal leadership. It
has already been documented in the focus groups that leaders do not flaunt their authority. A
further point to recall in this context is the more indirect nature of interpersonal
48
communication within Irish society which seeks to avoid open conflict. Such a view fits in
with the finding that Ireland is a relatively non-assertive society. The impression that leaders
should adopt a consultative style is also reflected in the societal data which suggests the
existence of a more collectivist culture in Ireland than that recorded by Hofstede.
It is interesting when considering the inhibitors of leadership that face-saving behaviour with
its implications of evasiveness and ambiguity is negatively evaluated. This may signal a
desire to move away from a feature of Irish society characterised by Lee (1982 p.4) as the
‘peasant residue in the Irish psyche’ which ‘confuses the distinction between necessary
confidentiality and furtive concealment,’ thereby underpinning ‘suspicions grounded in the
face to face nature’ of society in Ireland (cit. Leavy 1993, p.145). The tendency to conceal
may also be a legacy of Ireland’s colonial past which is ceding to the recognition of the
benefits of greater transparency. The dissimulation of truth has undermined the credibility of
some recent Irish leaders. In the new spirit of accountability, the aforementioned investigative
tribunals reveal the extent of dishonesty and concealment practised by political figures and by
the leaders of many of our most esteemed institutions.
Autocratic, self-centred leaders have never been endorsed within Irish society, perhaps a
consequence of several centuries of occupation by a colonial power. Similarly, malevolence is
seen as a significant inhibitor of leadership in the questionnaire data, although it is worth
recalling that the focus groups drew attention to the leadership ability of figures such as
Hitler, albeit including recognition of their negative attributes. Non-participative leadership is
also deemed to inhibit leadership, a perception which is not surprising if one considers the
emphasis which is placed on being a team player. A further characteristic which has a slight
inhibiting function is focus on procedure. Again, this perception corresponds to a view
expressed in the ethnographic interviews that outstanding leaders can cut through red tape in
order to achieve their goals. Similarly, emphasis on procedure was identified as characterising
managers, not leaders, in the qualitative focus groups. The fact that the questionnaire
respondents eschew bureaucratic procedures is not surprising if one considers the tendency,
which has been inherent within Irish society, to circumvent rules and regulations.
In conclusion, the profile of societal leadership which emerges from the questionnaire data
broadly echoes many of the trends identified within the qualitative components of the
research and also the dimensions of societal culture. Perhaps one of the most striking
49
observations to emerge from the qualitative data is, on the one hand, the confidence with
which the participants distinguished the attributes of successful leaders, and, on the other,
their reluctance to identify leader figures in the Irish business community. Named leaders
were either foreign or Irish political figures. A second point to note is the emphasis placed on
context in shaping leadership effectiveness.
This section completes the review of societal culture and societal leadership in Ireland. The
following sections turn attention to the sectors in which the Irish data were gathered. They
will discuss the organisational cultures in the food processing and financial services industries
and finally present the preferred leadership characteristics in the two sectors. Central to the
reflections presented in these sections is a consideration of the interrelationship between
organisational culture and societal cultural.
3.0 The Irish Food Industry
Ireland is going through a period of rapid change and no area
more so than its food industry which is emerging as a serious
international player in the food processing industry. (Financial
Times Survey, 21st May, 1997)
Forty years ago the Irish food industry comprised co-operative dairies in market towns,
small local abattoirs and large scale production of white bread. From industry sources and
reviews, sector analysis and current research reports, there is an accumulation of evidence
that structural and competitive change is already under way. Today’s Irish food industry is
in transition, consolidating and restructuring to achieve scale and efficiency in the global
economy. The main components of the Irish food industry are meat (beef, sheep, pig,
poultry), dairy, fish, fresh food produce/edible horticulture (mushrooms, potatoes, fruit and
vegetables), food ingredients and prepared consumer foods. Three groupings or clusters
exist
within
the
industry;
basic
foodstuffs/primary
processing,
secondary
processing/prepared consumer foods and food ingredients. Presently, over 80% of the
current gross output in the Irish food industry is derived from basic foodstuffs /primary
processing.
The
industry
recognises
the
need
to
shift
towards
secondary
processing/prepared consumer foods and is actively attempting to achieve this. Reports on
food industry issued since the early 1990s have demonstrated an awareness of this trend
and led to the implementation of a programme of investment together with measures to
maintain competitiveness and to add value.
50
In 1995 the food sector’s turnover amounted to approximately 40% of all manufacturing
turnover in Ireland. The industry is of significant importance to the Irish economy in terms
of industrial output, employment and trade and is vital in terms of the overall wellbeing of
the Irish economy. The food, drink and tobacco industry continues to be ranked first in the
Irish manufacturing sector in terms of the value of gross output (25%) and the numbers
employed (20%) (Census for Industrial Production 1995). Irish food products are based
almost entirely on indigenous raw materials, significantly more than for any other sector in
the economy. This has resulted from the nature of the raw materials, Ireland’s peripheral
location and transport costs, coupled historically with strategic planning provisions for the
industry.
The industry is characterised by small factories or units. Approximately three quarters of
these (73%) employ less than 50 employees and only 3% (29 companies) employ more
than 250 employees. The 29 large units/factories are in the meat, dairy and chocolate
confectionery sectors and are amongst the most progressive processing facilities in Europe.
Across the sector there is ongoing evidence of restructuring, consolidation and the
emergence of larger scale units resulting from drives towards greater competitiveness. The
majority (89%) of food companies are in Irish ownership and 75% of employment in the
industry is in indigenous Irish-owned companies. In contrast with trends in Europe,
numbers employed in the industry have remained relatively constant. This level of
employment in Ireland represents 21% of total industrial employment, with the largest
employment in the meat and dairy primary processing sectors. The workforce in the
industry is predominantly male (except in the poultry and fish processing sectors), middleaged and works on average 40.7 hours a week (Central Statistics Office 1994).
Unionisation of workers in the industry is high. The European Foundation for Working
and Living Conditions has identified a need to improve health and safety practices at work
within food processing plants.
By far the most important market for the food industry is the domestic market which
absorbs 52% of all output, with the remaining 48% of output is exported. These exports
earn approximately 40% of foreign exchange earnings for Ireland. The sectors with the
largest exports are meat, fish, miscellaneous foods and the dairy sector. Of the food
exported in 1996, 80% of prepared food and 35% of dairy produce went to the United
Kingdom and 50% of meat to international markets (An Bord Bia 1996). Exports vary
51
across the sectors of production.
Although the outlook for the food industry appears promising, it is difficult to talk about
the prospects for the industry as a whole, as each of the component parts has evolved in
diverse ways and is influenced by different factors. The future environment in which the
food industry will operate, is being determined by factors which are exerting pressure at
both ends of the food industry value chain. The supplier/farmer continues to be affected by
the rolling out of the CAP reforms activated by GATT, coupled with the enlargement of
the European Union, as heralded by Agenda 2000. At the other end of the spectrum,
customer concerns for safe, healthy food together with the increasing power of the retail
multiples are exerting pressure. Food processors at all levels have to respond to both
consumer and supplier impacts, to comply with increasing regulation of their industry and
to provide transparent evidence of quality and regulatory compliance.
Competitive advantage in natural resource dependent industries is notoriously unstable due
to their politically sensitive nature and the fact that they are heavily subsidised. Lowest
Delivered Cost (LDC) strategies are deemed to be appropriate in industries with long life
cycles like commodities (Gilbert & Shrebel 1986). Currently, with such a high proportion
of the Irish food industry selling products at the primary processing level, they are
pursuing LDC strategies upstream in the industry business system. These strategies have
implications for the style of leadership exercised by managers in an industry which is
challenged to be successful and survive through an increased consumer focus in open
markets. A strong focus on the financial bottom line and strong leadership will be required
in order to consolidate the future of the Irish food industry.
3.1 Organisational Culture in the Food Processing Industry ‘as is’ and ‘as should be’
Within the framework of the GLOBE survey, access to food sector companies proved a
challenge as many companies replied that they did not have a cohort of middle managers
on account of their size. The ten participating companies thus represent the larger food
processing companies in Ireland. These organisations were all located in rural Ireland and
play an important role in their local community. Since the collection of the survey data, the
ten companies have consolidated to seven and one publicly quoted Irish household
company has been acquired by a major multi-national food company.
52
The attributes operationalised as dimensions of organisational culture were the same
dimensions as those measured in the societal culture survey. These were Uncertainty
Avoidance, Power Distance, Collectivism I, Collectivism II, Gender Egalitarianism,
Assertiveness, Future Orientation, Performance Orientation and Humane Orientation. The
‘as is’ score reflects institutional practices in the organisation and the ‘as should be’ score
reflects the values of the organisation. The GLOBE study posits that organisational culture
and practices will affect how leaders in these organisations are expected to behave.
Specifically, it is hypothesised that organisational culture will have a stronger impact on
leadership than societal culture as the organisational culture is more proximate.
Table 3: Organisation culture in Irish food sector companies.
Culture Dimension
Power Distance
Uncertainty Avoidance
Collectivism 1
Assertiveness
Gender Equality
Humane Orientation
Collectivism 2
Performance Orientation
Future Orientation
The way it is"as is "
The way it "should be"
food
food
4.0029
4.095
4.5
3.4774
2.7262
4.2605
4.6741
4.535
5.0714
3.4257
4.3378
4.73
3.2729
5.113
4.5965
6.1301
6.3687
5.7545
a)Country mean score on a seven point Lickert scale
Most of the mean scores on the dimensions of organisational culture are over 4.00 on a
seven point Likert scale, suggesting that food sector companies exhibit reasonably good
institutional practices on performance orientation, future orientation, humane orientation,
collectivism, power distance and uncertainty avoidance. Gender egalitarianism is
recognised as an area needing attention.
Food sector middle managers report that the performance orientation practice in their
companies is 4.53 on the 7 point scale. They recognise that their organisational culture
needs to become more performance-oriented, suggesting with a high degree of unanimity
that the performance orientation score ‘should be’ 6.36. Margins are low in the food
commodity sector which gives rise to continuing pressures to be more efficient and cost
effective; hence the trend towards implementing change management strategies such as
World Class Manufacturing to eliminate waste from the manufacturing process. The future
orientation ‘as is’ score at 5.07 suggests a strong future focus in these companies and
recognition of the challenge faced by them. In terms of managing the shift away from
53
primary processing towards producing value-added consumer foods, the industry is
investing in product development and innovation. One area of concern relates to training.
Irish food companies are estimated to spend 1.3% of payroll on training and development
in comparison with benchmarked best practice companies in Denmark and Germany which
spend 3-5% of payroll. Lack of commitment to training and management development is
not, however, specific to the food industry, as has already been highlighted in Section 2.2.
When we review the ‘as is’ mean scores on the Future Orientation dimension in
conjunction with Performance Orientation and Collectivism II, it is possible to conclude
that the food industry organisational culture practice reflects a recognition of the reality of
the macro-environment in which it is currently operating. The very high ‘should be’ mean
scores on these dimensions point to the continuing recognition of the need to maintain this
collective focus and momentum in order to survive and succeed. There is widespread
recognition of the need for more gender egalitarianism in the industry. Where women are
employed, they work in specific sub-sectors, most notably poultry and fish. The absence of
gender egalitarianism comes as no surprise: working conditions are harsh and most of the
employees are middle-aged males.
On the Collectivism I scale, food industry companies incline toward the collective end of
the scale and wish to become more so. This probably reflects the fact that most of these
companies are situated in local communities where there is little staff turnover, where the
employees have known each others families for generations and where strong internal
labour markets exist. With all the turbulence in this sector it is surprising that there is not a
higher score on the ‘should be’ humane orientation. However, Irish employees are well
protected both as individuals and collectively in law. It has already been noted that high
levels of unionisation exist in this sector and larger companies, such as those sampled,
would have good personnel policies and practices in place. The suggestion that power
distance ‘should’ decrease somewhat (4.00 to 3.42) is in keeping with trends across Irish
industry where demands for more participative management styles, employee
empowerment and greater involvement in decision making continue to grow. There is a
marked trend towards organisational restructuring and change taking place in this sector;
organisational hierarchy is giving way to more team involvement, which is decreasing
power distance between levels at work.
54
With regard to uncertainty avoidance, middle managers recognise that ambiguity and
uncertainty are being managed and it is not unexpected that the ‘should be’ score calls for
greater uncertainty avoidance. This industry is highly regulated with regard to safety,
quality and financial transfer payments. A recent survey (Fas 1992) of 317 Irish food
companies found that they expected regulations in the areas of hygiene, food safety and
quality to have a major impact on their operations. Equally, as parts of the sector have been
at the centre of investigations regarding European transfer payments, greater transparency
and accountability in terms of structured reporting relationships have been implemented.
Increased investment in product development and innovation also suggest continuing
efforts to manage uncertainty in this sector. Given the turbulent environment facing the
food industry, one might expect that it would strive towards lower power distance coupled
with higher uncertainty avoidance scores as ‘should be’ in order to manage the uncertainty.
As can be observed from the quantitative data, this is indeed the case.
Finally, on the assertiveness scale, there is a view that the sector might become less
assertive. One reason for this might be that the industry has been bruised and punished for
widely reported financial mismanagement and may be acknowledging that it needs to
retreat in order to put its house in order.
The organisational culture profile presented by these findings resonates with the reality
facing Irish food processing companies who are rationalising and consolidating to meet the
challenges facing a small, open economy like Ireland in the more de-regulated food
markets of the future. The question as to whether organisational culture influences the
leadership style expected by middle managers in a particular industrial sector and whether
organisational contingencies impact on leadership style will be considered in the following
section with reference to the GLOBE organisational leadership data. It is also worth
recalling the argument put forward by Leavy and Wilson (1994) who submit that
leadership is ‘not just about having the right attributes and generic skills’, rather it is also
‘about the art of leading with a keen sense of current context and historic opportunity’
(p.185). Visionary and inspirational leadership, they continue, is ‘very deeply rooted in
basic values which are developed over a long period in the leader’s life. These values are
very situational and connect the leader and his efforts in a specific time and place to his
organisation and the society that it serves’ (ibid., p.186).
55
3.2 Leadership in the Food Processing Industry
As in the case of societal leadership, the twenty one leadership items were rated on a 7
point Likert type scale ranging from low, that is, characteristics which inhibit a person
from being an outstanding leader, to high, that is, characteristics which contribute greatly
to a person being an outstanding leader. The results of the Irish survey in the food
processing industry are presented in Table 4:
Table 4 :Leadership characteristics
n Irish
in Irish
Food
F Industry.
Characteristics
Performance Orientation
Inspirational
Visionary
Team Integrator
Decisive
Integrity
Administrative Competent
Team:Collaborative
Diplomatic
Modesty
Self-sacrificial
Human Orientation
Autonomous
Status conscious
Procedural
Conflict Inducer
Autocratic
Face -Saver
Non-Participative
Self-centred
Malevolent
Mean score
rank
food
food
6.6331
6.4423
6.429
6.2973
6.1872
6.1513
5.9399
5.6419
5.4902
5.2241
5.0954
4.9958
4.2359
3.6813
3.6256
3.5123
2.7515
2.4442
2.3213
1.8687
1.6335
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Based on the quantitative data collected, it appears that, as in the case of societal
leadership, the charismatic/value based cluster of attributes, including inspirational,
visionary, self-sacrificial, administratively competent, humane, modest, diplomatic,
decisive, collaborative and integrative are all positively endorsed in the food sector. The
leadership attribute receiving the highest mean score was performance, with 6.63 on the 7
point scale. This reflects the pressure to deliver shareholder value in an industry with
notoriously low profit margins in the wake of its historical focus on primary processing.
Addressing the share-holders in his company annual report, the CEO of one of the
surveyed companies, stated, ‘[w]e achieved record turnover on the balance sheet…[this
will] provide a strong base from which to develop and grow the business in the years
ahead’ (Avonmore 1996), thereby underscoring the strong performance focus for food
sector companies. This focus was also apparent in the current organisation culture practice
56
and future value in the food sector.
Complementing performance, which is a feature of all cost competitive strategies, are the
leadership attributes ‘inspirational’ and ‘visionary’. These attributes are self-explanatory if
one takes account of the task facing the leaders of Irish food sector companies to bring
about radical change in an industry which is critical to the Irish economy and psyche.
Skills in team leadership will be imperative for food sector leaders, who will have to
secure acceptance of their future vision for the industry as well as motivating and
empowering highly unionised, middle-aged and inward looking staff. Equally important
will be skills of diplomacy in orchestrating the shift from managing internal stakeholders
to delivering external shareholder value. Leaders in the food sector will also be expected to
be decisive and administratively competent. Given the increasing requirements for
transparency, accountability and compliance with national and international regulations,
senior managers will need skills in these areas. Finally, in this sector a sense of caring and
a humane orientation is expected of leaders.
Factors which impede effective leadership in the food processing sector, include
malevolence, self-centred, non-participative, autocratic, face-saving behaviour, thereby
providing a parallel to the negative attributes identified in respect of societal leadership.
Many of the attributes of leadership endorsed in the quantitative study were discussed in
the focus groups and ethnographic interviews. One example is the suspicion which was
voiced by the focus group participants about the misuse of power to influence followers:
this view is wholly endorsed in the quantitative data if one considers that malevolence was
ranked the factor most likely to impede leadership. It is also worth recalling the
reservations which were expressed in the focus groups about accepting prominent business
figures as leaders: ‘They’re outstanding in the area which is important for them to operate
in - not in the huge arena but in the micro culture environment of their organisation or
industry’. This statement rings true in the food industry where leaders are household
names, especially in their regions and local community, and it brings us closer to an
understanding of the contextual basis of leadership.
3.3 The Financial Services Industry
The Irish financial services industry is, like food production, viewed as an Irish growth
industry. The industry has undergone significant change over recent years driven by
57
deregulation, technological innovation, new participants and increasing demands from
customers. Consisting of a wide range of financial institutions, including banks, insurance
companies and building societies and supported by stockbrokers, financial advisers and
consultants, the industry provides financial services to both the personal and corporate
sectors.
In retail banking, the market is dominated by four main clearing banks, the largest two of
which are Irish-owned. The 1980s saw these banks expanding overseas through
acquisition. The take-over of the smallest bank by the National Australian Bank increased
competition. Recently the focus has been on increasing domestic competitiveness and on
product innovation. Deregulation has stimulated competition by allowing building
societies and credit unions to provide a wider variety of financial services. Presently, the
sector is estimated to account for 7.6% percent of GDP each year. The sector employs over
50,000, an increase of 30% in the past ten years. The two largest Irish banks employ
approximately 26,000 staff. Over 50% of those employed in the industry in 1997 were
graduates. Employment is geographically dispersed throughout Ireland and indirect
employment is significant in the sector.
Banking forms the core of the financial services sector. Over the past 25 years, the
structure of the banking industry has undergone fundamental change, reflecting general
trends in international banking. A number of mergers occurred during the 1960s in order to
deal with increased competition from abroad and the possibility of external takeovers.
Whilst there was a wave of external interest from North America in the 1960s and early
1970s, this has since subsided. During the 1980s there was a similar influx, but this time
from Europe and under the regulation of the 1971 Central Bank Act.
Today, many foreign banks are in direct competition with Irish banks in their provision of
credit facilities, both to the public and corporate sectors. This is in direct contrast with the
development of the insurance industry, which has benefited from state protection against
foreign competition. In the insurance industry a faster rate of growth has been recorded in
Ireland since the mid 1970s than in a number of other EU countries. Another strong
contributor to the sector is the assurance industry. It has grown rapidly on the back of
government tax relief policies which, for example, reward investment in life assurance
more handsomely than investment in unit trusts. On the other hand, in the 1990s the
58
assurance industry has been obliged to focus on competition within the domestic market
and on the consequences of EU liberalisation measures.
Financial integration within Europe has been gaining momentum in the 1990s. The Irish
financial sector has responded to the process of achieving a single financial market by the
end of the millennium. Firms in this sector are finding new opportunities for external
orientation, for co-operation with financial institutions abroad and are competing within
the increasingly integrated European financial market. Ireland’s membership of EMU will
facilitate this development. Europe-wide supervisory standards will indirectly promote
greater competition between financial institutions and offer additional opportunities for
locating the production of financial services in lower-cost countries, such as Ireland.
Dublin’s reputation as a financial centre has been consolidated by the establishment of the
Financial Services Centre in 1988 which through the offer of attractive tax incentives has
attracted over 175 registered companies. These include banks such as Merrill Lynch
Capital Markets, Dresdner, ABN Amro and insurance/reinsurance companies such as
Scottish Mutual, Hannover Services and J. Rothschild. Indeed, some anxiety in other
offshore locations has been evident in recent times, attesting the growing threat posed by
Irish competition within this sector. The government has recently announced the extension
of various tax incentives which had been limited to the end of the decade, thus responding
to ever increasing demand for entry to the Irish financial sector.
According to a recent report on European Banking, the current management style differs
from the rest of Europe in several ways:
Focus tends to be less on centralised decision-making and proactive product development. Remuneration is more closely tied
to individual performance and there appears to be a much
higher tolerance of individual mistakes. However, a move to
towards greater consistency in corporate values is expected in
the future, with only slight variation between the Irish and
European strategies. Tolerance of individual mistakes will
continue to be slightly higher in Ireland and organisations will
become more risk averse than their European counterparts.
(Prospectus Management Consultants 1994)
The main challenge within the sector in the late 1990s is to participate fully in an
integrated European financial market whilst continuing to grow in international markets
and, at the same time, defending the domestic market base. Inadequate customer-focused
business processes are perceived to be the major internal impediment to the sectors
meeting future customer expectations. Satisfying customers and a clear strategic vision
59
will be the key success factors in successfully managing Irish financial services sector
companies in the future (Prospectus Management Consultants 1994).
3.4 Organisational Culture in the Financial Services Sector ‘as is’ and ‘as should be’
The findings of the organisational culture survey of the ten Irish financial institutions, as
presented in Table 5, provide us with an interesting basis for discussion.
Table 5: Organisational culture in Financial
Financila sector
sectorcompamies.
companies
Culture Dimension
The way it is"as is "
finance
Power Distance
Uncertainty Avoidance
Collectivism 1
Assertiveness
Gender Equality
Humane Orientation
Collectivism 2
Performance Orientation
Future Orientation
4.5339
4.4427
4.2006
3.8389
3.1197
4.2685
4.4465
4.3242
4.6772
The way it "should be"
finance
3.401
4.127
4.8968
3.7751
4.9373
4.7184
5.8263
6.143
5.6297
a)Country mean score on a seven point Lickert scale
With the deregulation of the industry, the current ‘as is’ score for the dimension future
orientation (4.67) and performance orientation (4.32) suggest that the sector is cognisant of
the necessity to plan and perform for its future. Deregulation has opened financial markets to
new entrants from within Ireland, the UK, Europe and the US. The location of the Financial
Services Centre in Dublin has provided an accessible benchmark regarding standard
performance levels, profitability ratios and management styles in the industry. The ‘should
be’ scores espoused by middle managers for future orientation (5.62) reflects their continuing
awareness of the uncertain future facing the industry. Equally, the ‘should be’ score for
performance orientation at 6.14 recognises the need to become more performance-oriented in
order to deliver anticipated shareholder value, to meet financial targets and to prevent takeovers by larger predator institutions. One Irish economic commentator has drawn attention to
the lack of accountability with respect to underperformance, citing the example of one leading
Irish financial institution: ‘In the private sector, no one was held accountable for the collapse
of the AIB [Allied Irish Bank]-owned Insurance Corporation of Ireland in the mid-1980s with
losses which totalled hundreds of millions of pounds. No resignations followed in AIB. There
was no investigation to establish whether there had been any regulatory failure by the Central
Bank’ (Guiomard 1995, p.194). It might be expected that the growing emphasis on
performance will produce greater transparency in such matters.
60
The need for greater organisational loyalty and pride, Collectivism II, in the Irish financial
sector is high. Although the current ‘as is’ score is reasonable at 4.44, the espoused score at
5.82 suggests that greater cohesiveness and a more collective shared vision are called for. The
financial services sector, like the food processing industry, is highly unionised. An
acrimonious strike at the beginning of this decade about the introduction of new technology
and changing work practices in the banking sector displayed a pluralism in employee
allegiances which the banking sector has been addressing in terms of gaining consensus on
strategic goals. Financial services middle managers report a preference for collectivism as
opposed to individualism regarding workplace relationships. Many recently introduced
human resource management practices in financial services have been developed to recognise
and reward the individual. Getting the balance right between individualism and collectivism
in this sector is an issue which is widely discussed in the context of the changing nature of the
industry.
The humane orientation in financial service sector organisations is high (4.26). This is a
sector which has been demonstrated by comparative research to have excellent working
conditions (European Foundation for Living and Working Conditions, 1994). A long history
of strong collective representation has given rise to well-established due process procedures.
In spite of this, the suggestion is that these organisations could have a more humane
organisational culture. One explanation for such a view may be linked with the fact that many
of these organisations are large mature bureaucracies. Often in such structures, regardless of
excellent procedures and practices, there can be a lack of human kindness, which, according
to the GLOBE societal results, is highly valued in Irish society.
The recognition of the necessity to improve the gender orientation in financial services is
widely accepted, with an ‘as should be’ score of 4.93. Gender imbalance is apparent at senior
levels in financial institutions and most of the organisations surveyed are implementing
‘valuing diversity’ and ‘employment equality’ strategies to make the espoused value a reality.
Middle managers seem to be suggesting that the assertiveness of financial institutions does
not need to change.
The current organisational culture is deemed to place too much emphasis on power distance
(4.33), which the surveyed middle managers want to be reduced (3.40). By their nature
61
financial institutions are hierarchical machine bureaucracies, full of formality, procedure and
precedent. The era of technical, impersonal financial services and one-stop shops has
produced a customer who demands immediate decisions. Financial services have been reengineered; technology has replaced the paper pushing middle levels, resulting in downsizing
and much early retirement. Employees have been retrained to become more empowered and
innovative whilst power and decision making have become less centralised in order to
provide better customer service. Finally, and most interestingly, those surveyed suggest that
the organisational culture in Irish financial services should be less risk averse in the future,
that the uncertainty avoidance score should be reduced in the future. It is useful to recall the
thrust of the argument cited from The Strategic Profile of the Insurance Industry in Ireland
(Prospectus Management Consultants 1994) in the previous section:
Tolerance of individual mistakes will continue to be slightly
higher in Ireland and organisations will become more risk
averse than their European counterparts. […] a move towards
greater consistency in corporate values is expected in the future
with only slight variation between the Irish and European
strategies.
It can be observed that there is a difference between the opinion expressed by Prospectus
Management Consultants and the views expressed by the middle managers in our survey. It
was hypothesised in the GLOBE study that because financial service organisations need to
become more customer service oriented, more future-oriented and more flexible that they
would espouse lower uncertainty avoidance and lower power distance. We can observe this
trend in the Irish data.
Do the cultures in the two sectors differ?
Table 6: Results for Ireland on the nine GLOBE cultural dimensions at Organisational level.
Culture Dimension
Power Distance
Uncertainty Avoidance
Collectivism 1
Assertiveness
Gender Equality
Humane Orientation
Collectivism 2
Performance Orientation
Future Orientation
The way it is"as is "
The way it "should be"
food
food
4.0029
4.095
4.5
3.4774
2.7262
4.2605
4.6741
4.535
5.0714
finance
4.5339
4.4427
4.2006
3.8389
3.1197
4.2685
4.4465
4.3242
4.6772
3.4257
4.3378
4.73
3.2729
5.113
4.5965
6.1301
6.3687
5.7545
finance
3.401
4.127
4.8968
3.7751
4.9373
4.7184
5.8263
6.143
5.6297
a)Country mean score on a seven point Lickert scale
62
With the exception of uncertainty avoidance, the direction from ‘as is’ to ‘as should be’
across the remaining eight characteristics was similar. The trend for Performance Orientation,
Future Orientation, Humane Orientation, Gender Egalitarianism and Collectivism I and II is
toward the espousal of higher values. Food processing and financial services face challenging
futures, requiring greater performance orientation. Middle managers in the two sectors
recognise that higher organisational loyalty, Collectivism II, is to be valued. Whilst both
demonstrate a preference to be more collectively-oriented, the food service sector values this
collective focus more. This difference possibly reflects the fact that the food sector
organisations are already very collectively focused, being located in tightly knit rural
communities. Both industries embrace a more humane orientation and recognise the
importance of improving gender egalitarianism. However, the latter is felt more deeply in the
food sector companies in which fewer women are employed and those who are, operate in sex
segregated roles.
A reduction of power distance is deemed desirable in both sectors, with the financial services
sector espousing this reduction more significantly. As machine bureaucracies, finance houses
would have a stronger sense of hierarchy and formality on account of their structure than
would be found in food sector processing plants. Dismantling hierarchies and focusing staff
around the concept of customer service necessitates a more collaborative approach to work in
financial services.
Finally, on the issue of uncertainty avoidance, the organisational cultures of the two industries
diverge. Food sector organisations wish to become slightly better at managing uncertainty.
Certification, validation and evaluation are becoming part of the environment for food
companies operating within the demands of accountability and transparency to multiple
stakeholders. This matches the reality of the increasingly regulated environment in which
these companies operate. Financial services companies, on the other hand, wish to become
less risk averse. As an industry, which was dominated by rules and procedures, these
organisations desire to become more innovative and to encourage staff to become more
responsible and self-reliant in order to deliver a speedy and efficient customer service.
We now turn to the quantitative findings on leadership style within Irish financial
organisations.
63
3.5 Leadership in the Financial Services Sector
From Table 7 it can be observed that the charismatic, value-based cluster of leadership
attributes is highly endorsed in the financial services sector in Ireland, thereby replicating the
orientation which has been recorded in the food processing industry and in respect of societal
leadership.
Table 7 :Leadership characteristics in the Financial Service
sector companies
Characteristics
mean score
rank
Inspirational
Visionary
Performance Orientation
Team Integrator
Integrity
Decisive
Administrative Competent
Team:Collaborative
Diplomatic
Modesty
Self-sacrificial
Human Orientation
Autonomous
Status conscious
Procedural
Conflict Inducer
Autocratic
Face -Saver
Non-Participative
Self-centred
Malevolent
finance
finance
6.3203
6.2913
6.256
6.1782
6.1452
6.1206
5.4089
5.328
5.3321
5.172
4.9636
4.9123
3.782
3.4342
3.3754
3.2324
2.434
2.3361
2.2987
1.939
1.6985
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
All the dimensions of this cluster scored above 4.9 on the 7-point Likert scale, evidencing a
high level of acceptance. The charismatic cluster of dimensions, inspiration (6.32), visionary
(6.29) and self-sacrificial (5.17) received a very high level of acceptance. Performance was
also seen to be an important attribute in this industry. These leadership characteristics can be
mapped onto the evolving requirements of the financial services industry as outlined in the
preceding section. The very high score for the characteristic ‘team integrator’ is evidence of
the necessity for leaders in this sector to have the ability not just to create the vision but to
inspire the organisations to accept their vision. Given the pluralist allegiances within this
industry and the strong support for a collective orientation, the task facing leaders is to ensure
that the organisation is fully committed and inspired by his vision of the future. The notion of
inspiration also constituted an important theme in the focus groups. Personal integrity is
deemed to be very important and represents a value which has always been esteemed in
financial service leaders. It is interesting to record that poor performance and lack of personal
integrity have resulted in the recent removal of leaders from leadership positions in this
64
sector. Administrative competence (5.40) is also rated highly, although slightly less than in
the food processing sector where there is perhaps a perceived need for such expertise to guide
the industry successfully through a period of turbulent change.
Being modest (4.96) and diplomatic (5.33) were ranked as important characteristics of leaders
in financial services. The modesty may coincide with the fact that financial services’ chief
executives have not been public figures in the past. They have been acknowledged within
their context but not in the wider society, although this situation is changing. Communication
can be very political and clientelist in business circles according to the focus group members,
and this might help to explain the high value placed on diplomacy as a desirable attribute for
leaders in the financial service sector. Factors which do not characterise effective leaders in
this sector, include being autocratic (2.43), face saving (2.33), non-participative (2.29) and
self-centred (1.93). Being procedural (3.37), status conscious (3.43), autonomous (3.78) and a
conflict inducer (3.23) were not perceived to be attributes which single out leaders in Irish
financial institutions.
In summary, middle managers in both food processing and financial services organisations in
Ireland expect their corporate leaders to be charismatic, value-based leaders. Both sectors
agree unanimously that being malevolent, self-centred, non-participative, face saving and
autocratic are definitely not the characteristics of the leaders they wish to follow in their
respective industries. Whilst the cluster of characteristics remains similar for the two sectors,
the rank of personal attributes differs somewhat between the sectors, as can be seen in Table
8:
65
Table 8
Comparison of preferred leadership characteristics in the Food and Financial
service sectors
Characteristics
Mean score
rank
mean score
rank
food
Performance Orientation
Inspirational
Visionary
Team Integrator
Decisive
Integrity
Administrative Competent
Team:Collaborative
Diplomatic
Modesty
Self-sacrificial
Human Orientation
Autonomous
Status conscious
Procedural
Conflict Inducer
Autocratic
Face -Saver
Non-Participative
Self-centred
Malevolent
6.6331
6.4423
6.429
6.2973
6.1872
6.1513
5.9399
5.6419
5.4902
5.2241
5.0954
4.9958
4.2359
3.6813
3.6256
3.5123
2.7515
2.4442
2.3213
1.8687
1.6335
food
finance
finance
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
6.256
6.3203
6.2913
6.1782
6.1206
6.1452
5.4089
5.328
5.3321
5.172
4.9636
4.9123
3.782
3.4342
3.3754
3.2324
2.434
2.3361
2.2987
1.939
1.6985
3
1
2
4
6
5
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Food sector leaders are expected first and foremost to be performance-focused, secondly to be
inspirational and thirdly to be visionary. By contrast, financial services’ leaders are envisaged
to be charismatic; inspirational and then visionary, followed by performance-oriented. This
ranking reflects the stage of development of these industries and the pressures which they
face in terms of dealing with their environmental realities. Hence, it would appear that sector
does matter in terms of leadership style. The challenge facing the Irish food processing
industry as it competes in open markets necessitates the strong focus on performance. One
might speculate that once this factor is successfully managed, there will be a shift in focus
towards vision and inspiration.
4.0 Conclusion
The findings of the GLOBE study in Ireland, which have been presented in the preceding
sections, reflect the significant transformation which the country has undergone since the
publication of Hofstede’s research and point to the ongoing process of transition within Irish
society. This period of change, which has seen Ireland’s leap from a pre to a post-industrial
society, has reshaped the country from a social, economic and political point of view. The
Irish GLOBE data indicate a considerable shift away from Hofstede’s conclusions, especially
in respect of collectivism, uncertainty avoidance and masculinity. Ireland has remained a low
66
power distance country despite our own perceptions to the contrary. Irish middle managers
would like to see this further reduced. Irish society is perceived to be very humane and very
collectivist in its orientation. In terms of values, Irish managers think that we should continue
to have a stronger humane orientation, but be slightly more individualistic. Ireland is deemed
to be a relatively non-assertive, non-aggressive society and wishes to maintain this level of
non-assertiveness. A reasonable level of uncertainty avoidance exists, although Irish middle
managers would like less emphasis on regulation and more risk orientation. Described as a
patriarchal society, Irish participants in the GLOBE study recognised high levels of gender
inequality in Irish society and place great emphasis on redressing gender-based inequality.
Finally, despite the central role accorded to the family in the Irish constitution, the GLOBE
data suggest that the centrality of Irish family collectivism has declined. The Irish participants
expressed the desire for increased Family Collectivism in the future.
If one turns to the organisational culture data, the direction of change on the majority of the
scales is comparable with the societal cultural data, which would suggest the intermeshing of
the two domains. Some differences do exist, giving credence to the hypothesis that industrial
sector can matter in terms of the emphasis placed on culture. The differences can be
summarised as follows: food processing firms want more uncertainty avoidance on an
organisational cultural level and less on a societal level and more assertiveness in society and
less in an organisational cultural context. Financial services organisations place more value on
Collectivism (as opposed to individualism) in an organisational setting and more
individualism at societal level. The results for power distance on the societal and
organisational levels are worthy of comment. The respondents suggest that on the level of
societal culture much less power distance is desirable. Whilst on the level of organisational
culture the direction of desired change is the same, the degree of change is considerably less.
This might indicate that power distance has been managed better within organisations than on
a societal level or that power is seen to be less centralised in organisations than society.
The profile to emerge from the qualitative and quantitative data is that within Ireland
charismatic value-based leadership is endorsed together with a very strong emphasis on
performance. The attributes of leaders in Irish society which are deemed to influence
leadership substantially are performance orientation, vision, inspiration, integrity, decisiveness
and ability to integrate. Other characteristics which feature as positive contributors include
modesty, diplomacy, willingness to sacrifice self, humanity, administrative competence and
team organiser. By contrast, significant inhibitors include face-saving, self-centredness,
67
malevolence, non-participative orientation and autocratic style. Such attributes are also
endorsed within the focus groups, the ethnographic interviews and the review of unobtrusive
measures and, in turn, correlate significantly with some of the findings from the quantitative
study of societal culture. In the two sectors, middle managers in both food processing and
financial services organisations in Ireland also endorse charismatic, value-based leadership
with a strong focus on performance and reject malevolent, self-centred, non-participative, face
saving and autocratic attributes. Whilst the cluster of characteristics remains similar for the
two sectors, the ranking of attributes varies somewhat between the sectors.
One striking observation to emerge from the GLOBE data is the confidence with which
middle managers identified the attributes of successful leadership contrasted with the
reluctance of participants in the qualitative study to identify leader figures in the Irish
business community. There was disagreement as to whether the outstanding Irish
businessmen both in a domestic and international setting, could be considered as outstanding
leaders. The belief was that they were outstanding business people but not outstanding
leaders. With reference to societal leadership, collective memory is more firmly focused on
the patriot-hero, as commemorated inter alia by stamps and monuments, who is symbolic of
Ireland’s struggle for and transition to independence. Unobtrusive measures attest an ideal of
leadership, built around this notion of the romantic hero and liberator, which would appear to
remain valid within Irish society in the 1990s.
Related to this latter point is the emphasis placed on context in shaping leadership
effectiveness. There is a belief that leaders within the business community are effective
within the context of their organisations, but not as outstanding leaders within society. Our
relatively late emergence as an industrialised nation may explain the reluctance to elevate
prominent business figures to the status of societal leaders. It would appear that we have not
made the transition from lauding ‘men of destiny’ towards recognising ‘men of achievement’.
Might it be the case that members of Irish society look to the past for their role models, that
their expectations are too aspirational to fit the ‘post revolutionary’ reality? The answers to
these questions may lie in the search for self-identity in the 1990s; there is a need to reconcile
the legacy of a post-colonial mindset with the far-reaching social and economic changes
within Irish society. Looking toward external role models or the ‘ideal’ figures of past (Kane
1986) are manifestations of this search. As one commentator has observed:
The final quarter of the twentieth century saw extraordinary
changes in the Irish psyche and in Irish society. The
68
transformations touched virtually every aspect of life in Ireland
– personal, educational, economic and political. Changes that
were working their way through the body politic and the body
social in the seventies and eighties came to the surface in the
nineties, catching many people unawares. (Walshe 1999, p.1)
The GLOBE study in Ireland has captured some of the dilemmas within Irish society and
attitudes toward leadership in the closing decade of the millennium. The process of shaping
self-identity is continuous and responds to the changing socio-cultural context; it remains to
be seen how long our perceptions of leadership bear the ‘imprint of bygone circumstances’.
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