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PSY FPX 6720 Assessment 2 Leadership and Diversity


Capella University

PSY FPX 6720 Psychology of Leadership

Prof. Name



This paper aims to examine a scenario involving leadership, diversity, and cross-cultural competence within a U.S. manufacturing company’s branch in Shanghai, China. It assesses the lack of diversity awareness and cross-cultural competence in the scenario and suggests appropriate leadership responses. Utilizing resources such as the GLOBE project, Hofstede’s model, and other relevant sources, it proposes solutions to the case study issues. The paper also discusses leadership theories promoting multicultural and ethical leadership, along with strategies to enhance leaders’ abilities in these domains.

Leadership and Diversity Case Study

Leadership ChallengeLack of diversity awareness and cross-cultural competence among management in the Shanghai plant
Team CompositionMix of Caucasian men from the U.S. (ages 50–65), women from Germany (ages 35–45), and men from China, India, and Pakistan (ages 22–55)
Key ObservationsYounger team members (ages 22–35) effectively use online platforms; Key leaders Joe and John (ages 55 and 57) have hired friends from their college fraternity, leading to potential bias; Gertrude, a German team member, feels excluded from team meetings and voices concerns about being marginalized.
Leadership’s Impact and Competence

Effective leadership requires the ability to navigate diversity challenges and adapt leadership styles to diverse teams. Leadership competence ensures inclusive environments where individuals of all races and genders feel valued and heard, thereby enhancing organizational effectiveness.

Diversity Awareness

Leadership should prioritize diversity awareness to foster respect and inclusion in the organization. Understanding cultural differences, such as those measured by Hofstede’s model, enables leaders to create environments where diverse perspectives are valued and integrated.


Implementing the GLOBE project aids in understanding national cultures and leadership attributes, facilitating effective cross-cultural interactions. By assessing dimensions such as performance orientation, assertiveness, and gender egalitarianism, leaders can address diversity challenges more effectively.

Leadership Theory

Utilizing leadership theories such as McClelland’s and Mintzberg’s models promotes multicultural and ethical leadership. These models emphasize the importance of power, achievement, affiliation, and competency in leading diverse teams.

Missed Opportunities

Opportunities to address diversity issues include providing training on inclusivity, fostering team-building activities, and facilitating interactions between team members to bridge generational and cultural gaps.

PSY FPX 6720 Assessment 2 Leadership and Diversity

Action Plan

Strategies to enhance leaders’ capacity include integrating Hofstede’s and GLOBE models to understand and address cultural diversity effectively. These models provide insights into cultural values and beliefs, guiding leaders in fostering inclusive environments.


Effective leadership in diverse environments requires awareness, competence, and proactive strategies. By implementing models like GLOBE and Hofstede’s dimensions, analyzing leadership impact, and addressing missed opportunities, leaders can navigate diversity challenges and promote inclusive cultures in organizations.


Landy, F. J., & Conte, J. M. (2016). Work in the 21st century: An introduction to industrial and organizational psychology (5th ed.).

McCrae R. R., Terracciano A., Realo A., & Allik J. (2008). Interpreting GLOBE Societal Practices Scales. Journal of Cross-Cultural Psychology, 39, 805-810.

PSY FPX 6720 Assessment 2 Leadership and Diversity

Shi, X., & Wang, J. (2011). Interpreting Hofstede model and GLOBE model: Which way to go for cross-cultural research? International Journal of Business and Management, 6(5), 93-99.

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