The degree to which members of a culture expect and accept that power is unequally distributed within the society is referred to as “ Power distance” (Cooke, A. 2011). There are two types of power distance: High power distance and low power distance. In high power distance culture, the managers and other superior officials are autocratic and are more task-focused.
Two-way communication is not desirable to them and they take advantage of the privilege their supremacy gives them. Any failure or error in the task is usually blamed on the subordinates, who are dependent on the superiors (Cooke, A. 011).
In low power distance culture, the managers and superior officials are much more democratic and people-oriented.
Communication is effective both ways along the hierarchy as it is more horizontal rather than vertical. Any failure or errors are usually blamed on the whole system rather than on an individual (Cooke, A. 2011). 2.
1. 2 Individualism/collectivism This dimension is about the relationship between the individual and the group. This cultural dimension defines that to what extent the individuals in a society are independent and to what extent are they interdependent. An individualist is more self-focused and has an “ l” mentality.
The identity is based on the person and they are more task-oriented. They will undergo contractual obligations to achieve their own goals. Individualists also takes decisions based on his/her own needs. A collectivist possesses a “ We” mentality and is always focused on belonging to a group.
The relationship within the group triumphs over the task. In collectivism, decisions are made considering the welfare of the group (Cooke, A. 2011). From his experiences and research at MOM, Hefted observed a dimension whereby retain societies could be characterized as being basically assertive and competitive, that is being masculine in nature.
Societies that are much more caring and less self- centered are considered feminine (Cooke, A. 2011). 2. 1. 4 Uncertainty Avoidance Uncertainty Avoidance is related to avoiding or accepting risks and failures. In low uncertainty avoidance, the corporate plans are seen as merely guidelines, competition seems beneficial, the control systems and budgets are flexible and any risks and probable failures are accepted.
In high uncertainty avoidance, the businesses abides the corporate rules and are very much concerned about imputation.
Budgets and controlling bodies are very strict and rigid and the management tends to lean away from any impending risks. With all his companies based in the USA, Musk’s businesses can really develop his culture since America is home to immigrants coming from different parts of the world, which means that people from different cultures will be working in his company. 2. 2 Leadership Much like great emperors that commanded their vast army to conquer over their rival’s territories, Leon Musk is conquering the heart of millions around the world through his innovations and inventions.
This “ command and conquer” comes only from a great leader; a leader like Leon Musk. “ Leadership is realized in the process whereby one or more individuals succeed in attempting to frame and define the reality of others. ” (Smirch & Morgan, 1982, pig. 258) In general, there are two several used in military services where a higher official passes down command to their subordinates (Stepson, P.
2010). But, this leadership style is also used by some of the most successful corporate leaders like Bill Gates (Microsoft Corporation) and Steve Jobs (Apple Inc. ). These two leaders were the pioneers of the twentieth century.
This leadership style is also very similar to Douglas McGregor Theory X managerial theory (1960). These two leaders were the pioneers of the twentieth century. In modern times, autocratic leadership style is not suited in most businesses as everyone might come up with an innovative idea. Democratic leadership style is where every employee in the business has an opinion. It also enables two-way communication within the hierarchy.
This leadership style welcomes everyone’s ideas and innovations and this is rocketing today’s businesses to the top (Stepson, P. 2010). This theory also supports McGregor Theory Y managerial theory.
Spaces and Tests are the major examples of democratic leadership in this millennium. 2.
3 Motivation Motivation is the main driving force in successful businesses. It is a process that initiates, guides and maintains a goal-oriented behavior throughout the workforce. Without motivation, workers would not be efficient and productive, the company will fail to reach a target and the collapse of the organization will be inevitable (About. Com, 2013) There are several motivational theorists that have influence over the level of staff satisfaction: Frederick Winslow Taylor, Elton Mayo, Abraham Moscow,
Frederick Herbert and Victor Broom are a few amongst them.
Abraham Moscow introduced the theory of Hierarchy of needs in 1943. He stated that individuals in an organization are motivated by fulfilling the hierarchy of needs. The first level of need is physiological need that fulfils the daily requirement of everyone’s basic life like food, clothing and shelter. The second level of hierarchy is security. This includes health and safety as well as Job security.
The third level is social needs that makes the individual socialism with others within the work and casual environment.
Self- esteem comes the fourth level and this seeks the self-respect of an individual. Self- actualization is the final level in the hierarchy that drives the individual to go beyond his threshold to achieve something more (Cooke, A. 2013).
3. 0 Analysis Of the five business cultures described in section 2. 1 of page 2, Musk’s businesses have positive attitudes toward these theories. 3. 1. 1 Power distance dimension Employees in Tests and Spaces are treated with equality regardless of their position, ethnic and cultural background.
Musk’s organizations maintain a low power distance n employer-employee relationship as Musk, even with his own innovation and talent, relies on other people’s ideas and talent since he believes it gives a wide range of knowledge (Bernhard, S. 2013). Even though Musk’s organizations have levels of hierarchy for managers and subordinates, his organizations tend to act like a matrix structured business working as a team and thriving beyond everyone’s belief. 3. 1. 2 Individualism/collectivism Leon Musk is also reported to share what is at stake with his employees when taking big decisions or when planning to launch another innovative product.
Leon Musk is a collectivist who prefers his employees to participate in decision making whether that her employees my making them feel involved. With Musk letting them know that what is at stake, the employees will step up to the challenge and do their tasks accordingly in order to reach the target (Bernhard, S. 2013). 3. 1.
3 Masculinity/femininity Élan’s organizations follow a masculine business culture. Leon sees his work as challenges. According to Biography website (2013), Leon is said to work 100 hours per week in order to make dreams into reality. Musk’s latest project, The Hyperbole is the cost challenging project of his life.
Musk also suggests future entrepreneurs to put in the same amount of hard work in order to succeed. Leon Musk is highly driven by ambition, a powerful trait of the masculinity culture of Mr.
Egger Hefted. His focus is on achieving the set goals, bringing the innovative ideas to life (Biography, 2013). 3. 1.
4 Uncertainty avoidance Tests and Spaces sustains a low uncertainty avoidance in order to thrive. For an entrepreneur like Mr. Leon Musk, it is important to accept failures and take risks which might cost him a lot of money if unsuccessful. Leon Musk likes to go beyond the rules in order to achieve something unreal.
He sees competitions as advantageous. Space’s biggest rival is NASA of which he took the advantage of signing a $1.
6 billion contract in order to transport goods to the International Space Station. According to CEO. Com (2013), Musk embraces failure in order to succeed, a remarkable trend for the low uncertainty avoidance. Tests almost went bankrupt in 2008 which Musk recovered from by offering PIP and deciding to make the company public (CEO.
Com, 2013). Musk’s fear of failure about Spaces was also felt by his employees, but this ear the main factor of the success that is shaping the Mars One project which is hoped to be launched in 2021. . 1. 5 Long-term versus short-term orientation Although Leon Musk’s former business venture Papal was a short-term orientation, Musk’s current ventures Tests and Spaces are for the long run.
These two companies have been established my Musk for shaping the future in the long run. Spaces was started by Musk alone with equities coming from his own pockets (CEO. Com, 2013). As mentioned in section 3. 1. 2 of the report, Musk likes to stay engulfed with talented people and tends to rely on their talents and ideas.
Therefore, it can be stated that Musk follows a democratic leadership style throughout both of his innovative companies.
Since Musk also works for 100 hours a week along with his other employees, treats everyone with equality and is also concerned about the welfare of his employees in case of failure, it can also be concluded that he is a Theory Y leader according to McGregor theory (Angelo, K. 2013). 3. 3 Motivation Leon Musk follows the motivational theory of Abraham Mascots Hierarchy of needs (1943).
When launching Spaces, Musk feared that the venture would end up being a disaster. He as well his employees were very much concerned about the company’s future.
