Cultural Intelligence and Its Importance in the Workplace - Essay Example

TABLE OF CONTENTS 1.0. Introduction 2 2.0 Cultural Intelligence Overview 2 3.0. Theories, Issues and Recent Findings in Cultural Intelligence 4 3.1 The Cultural Intelligence Model 4 3.2 The Four Factor Model of Cultural Intelligence 5 4.0 Impact of Cultural Intelligence in Workplace 8 5.0 Conclusion 10 6.0 Reference 11 1.0 INTRODUCTION Within the last few years there has been significant focus on the concept of cultural intelligence and its role in the organization in the global scenario. Different languages, ethnicity and politics have become major part of an even more complex business environment. This certainly necessitates that the organization and employees are capable of dealing with individuals or groups of people from different cultural backgrounds in an effective and efficient manner. Organizations often have people from diverse culture working in tandem with each other. The success of such organizations can depend on the ability of employees to understand each other and developing the required cultural intelligence to enhance their performance This report focuses on cultural intelligence and its importance in the workplace. The report highlights theories, concepts and recent findings in the field of cultural difference. Further the report focuses on the importance of cultural intelligence in workplaces and uses appropriate examples to support the importance of cultural intelligence in workplace. 2.0 CULURAL INTELLIGENCE OVERVIEW Cultural intelligence (CQ) is the “capability of an individual which looks to perform effectively within the cultural diversity which the environment presents” (Ang & Inkpen, 2008). Cultural intelligence is the ability of the individual to perform in an environment which has people from diverse background and culture. It is ability that helps to improve employees’ effectiveness, efficiency and ensures the best possible use of resources (Matsumoto & Hwang, 2013). It requires the individual to develop different interactions through which different social aspects can be chieved. It helps the individual to deal with multi-cultural situations, cross-cultural interactions and culturally diverse work groups. This thereby improves the manner of understanding and helps to improve the overall effectiveness in decision making. According to Ang, Van Dyne, Koh, Ng, Templer, Tay & Chandrasekar, (2007, p. 12) Cultural intelligence is a set of capabilities which when highly developed in an individual lead to improved decision making, work performance, and adjustment in culturally diverse scenarios. It is a capability which is not fixed by changes from person to person experiences, efforts and interactionss. Cultural intelligence is specific to individual difference capability and is not specific to particular culture. For example, it does not focus on the capability to function effectively in Spain or China but instead focuses on general capability to work effectively in a culturally diverse environment. A typical example of cultural intelligence can be seen when a boss from a different country with different culture and background tries to make an effort to understand an employee’s culture rather than just jumping into orders and decisions. This capacity can result in better growth of the organization and the workplace will be a better environment to work for. It can be difficult to mould multi-cultural teams but when they do gel, organizational effectiveness is achieved and the use of resources improves. Cultural Intelligence is measured very similar to Intelligent Quotient, i.e. individuals with higher cultural intelligence are expected to be better able to successfully adapt and blend in any cultural environment by using more effective business practices when compared to those with lower cultural intelligence (Matsumoto & Hwang, 2013). 3.0 THEORIES, ISSUES AND RECENT FINDINGS IN CULTURAL INTELLIGENT To better understand cultural intelligence and its impact in the workplace it is of prime importance to understand the various aspects of cultural intelligence its theories, issues and recent findings. Each of these will be discussed below 3.1 The Cultural Intelligence Model The cultural intelligence model (Matsumoto & Hwang, 2013) focuses on developing an overall repertoire of understanding, motivation and skills that enable an individual to move in and out of lots of different cultural contexts. It considers cultural, sociological and individual dynamics that occur for each of us in cross-culture settings. Most of us are aware of Intelligent Quotient (IQ) and its measurement. Similarly, Emotional Quotient (EQ) deals with an individual’s ability to lead and interact while maintaining effective emotional sensibilities. Cultural intelligence is built upon similar concepts but instead it specifically focuses on one’s capability to effectively understand and adapt to a myriad of cultural contexts to become a more effective leader in a culturally diverse situations and across cultural settings (Rockstuhl, Seiler, Ang, Van Dyne & Annen, 2011). One of the most important features when looking for a culturally intelligent leader is to see whether the person can identify behaviors that are universal to humanity, behaviors that are cultural, and behaviors that are idiosyncratically personal to a specific individual in a specific situation (Rockstuhl, Hong, Ng, Ang & Chiu, 2010). 3.2 The Four Factor Model of Cultural Intelligence (Van Dyne, Ang, Ng, Rockstuhl, Tan & Koh, 2012) Cultural intelligence is composed of four qualitatively different capabilities which are unique but are interrelated to each other. An effective leader must have all four attributes to deal with cultural intelligence. Otherwise they could lead the organization towards cultural ignorance rather than cultural intelligence. The four attributes of cultural intelligence (CQ) according to Van Dyne, Ang, Ng, Rockstuhl, Tan & Koh, (2012) Motivational CQ: refers to the leader’s degree of interest, drive and energy to adapt cross-culturally. The ability to self engage in cross-cultural challenges is an important factor (Van Dyne, Ang, Ng, Rockstuhl, Tan & Koh, 2012). Motivational cultural intelligence includes both intrinsic motivation and extrinsic motivation along with self efficacy. Cognitive CQ: refers to the leader’s capability of understanding cross-cultural issues and differences in shaping the way to operate business successfully in a cross-cultural situation (Van Dyne, Ang, Ng, Rockstuhl, Tan & Koh, 2012). It is important for leader’s to have a clear understanding about the cultural system and cultural norms and values which is not fixed and varies from person to person and from societies to societies. Meta-cognitive CQ: refers to leader’s ability to strategize when crossing culture. It is the ability to think about our own thought process and then draw upon cultural knowledge to understand a different cultural context and solve problems accordingly (Van Dyne, Ang, Ng, Rockstuhl, Tan & Koh, 2012). It requires three basic attributes awareness, planning and checking to ensure success in a culturally diverse working environment. Behavioral CQ: refers to leader’s ability to act appropriately in a diverse range of cross-cultural situations. It is important to have an understanding for the leader to know when to adapt to a different cultural situation and when not to do so. It requires changing both verbal and non verbal actions appropriately when interacting in a cross- cultural situation (Van Dyne, Ang, Ng, Rockstuhl, Tan & Koh, 2012). The chart below highlights the manner in which cultural intelligence has an important applicability in the field of organizational business (Van Dyne, Ang, Ng, Rockstuhl, Tan & Koh, 2012) The above figure highlights the manner in which people with cultural know how have understandings of all four CQ attributes are able to develop a better understanding of the working culture. This thereby leads towards better performance and provides the tool through which better understanding becomes possible Cultural intelligence helps in making cultural judgment and in the decision making process. It covers multiple aspects of performance including work performance, contextual performance and adaptive performance. In a recently research conducted by Ng, Van Dyne & Ang (2012), those with higher cultural intelligence are expected to adapt better to situations characterized by cultural diversity and make decisions about inter-cultural situations. Moreover those with higher cultural intelligence also have been shown to deliver higher performance in situations and on tasks characterized by cultural diversity (Ng, Van Dyne & Ang, 2012), For example is when an American expatriate manager had his cultural intelligence tested while serving a design team which included two German engineers. As other team members floated their ideas, the engineers condemned them repeatedly as immature or worse. The manager concluded that Germans are rude and aggressive. Thus the manager lacked cultural intelligence which created problems. A more cultural intelligent manager would have tried to determine how much of the two German’s behavior determines the manner in which they work. Another example outlines when an organization suffered due to lack of cultural intelligence. A British company trying to run a Japanese Subsidiary experienced inexplicable problem of morale and conflict with the Japanese workforce and the whole differences was created because of difference in culture. These examples shows that cultural intelligence is gaining more importance due to globalization and various mergers, demergers, holding subsidiary, project groups, cross-border treaty which are increasing at a rapid rate. A better understanding on cultural intelligence helps to deal with different issues and maximizes effectiveness in the use of different resources of the business 4.0IMPACT OF CULTURAL INTELLIGENCE IN WORKPLACE Cultural intelligence is important for a variety of people and situations including: Global leaders: Leaders in for profit or non- profit organizations who must provide leadership for culturally diverse workplace environment (Ang & Inkpen, 2008). Expatriates: Employees who are sent to a different country with different culture than the native country to which the employee belongs (Ang & Inkpen, 2008). Professionals with global contacts: Employees, consultants, suppliers, customers, and managers who need to interact regularly with people from different cultural backgrounds (Ang & Inkpen, 2008). Travelers: Business representatives, executives, government representatives, vacationers and others who travel from one country to country. This list shows that cross-cultural diversity is common in today’s work place and the role of cultural intelligence is widening and important for organizations to ensure smooth and successful business performance. Cultural intelligence is important in workplace as it targets three attributes together in a synchronized and coordinated way: cultural diversity, self-motivational factors and behavioral aspects (Ng, Van Dyne & Ang, 2009) which can be explained by the help of the following diagram Multinational corporations accounts for a significant share of world’s industrial investment, production, employment and trade. Many individuals employed within these corporations are required to work with colleagues from a wide variety of backgrounds and thus it is important to maintain a sense of cultural intelligence (Kim & Van Dyne, 2012). In a nutshell according to Kim & Van Dyne, (2012) cultural intelligence helps in the following ways within a workplace Firstly, create individual awareness of one’s own assumptions, ideas and emotions. Secondly, viewing the situations from an open end perspective Thirdly, maintaining a workplace which is sound and motivates employees to be loyal and friendly with each other with a sense of competition among each other Fourthly, creating new maps of other people’s personality and cultural background Fifthly, using empathy to understand the situation from another’s cultural background and directing the same towards business objectives and goals. Sixthly, helps in achieving organizational goals and objectives in line with individual goals and objectives. Thus maintaining a common objective of both organization and employees Lastly, ensures no biasness among employees working together in a culturally integrated work scenario 5.0 CONCLUSION This report has highlighted the importance of cultural intelligence while working in a culturally diverse environment which has employees with different knowledge and skills. Different tools and techniques have been developed to improve cultural intelligence and create awareness but still further development and tools need to be developed. The report shows the manner in which the cultural intelligence model and the four force model helps to ensure innovation and develops the required framework through which better understanding of culture becomes possible. This will help the business to gain advantage of the cultural intelligence and will help the business to be able to be effective in decision making. 6.0 REFERENCES Ang, S., Van Dyne, L., Koh, C.K.S., Ng, K.Y., Templer, K.J., Tay, C., & Chandrasekar, N.A. (2007). Cultural intelligence: Its measurement and effects on cultural judgment and decision making, cultural adaptation, and task performance.  Management and Organization Review, 3: 335-371, Viewed from http://www.culturalq.com/docs/MOR%20Ang_Van%20Dyne%20etc.%202007.pdf Ang, S., & Inkpen, A. C. (2008). Cultural intelligence and offshore outsourcing success: A framework of firm-level intercultural capability. Decision Sciences, 39, 3, 33-358. Viewed from http://www.culturalq.com/docs/Ang%20&%20Inkpen%20DS%202008.pdf Kim, Y.J., & Van Dyne, L. (2012). Cultural intelligence and international leadership potential: The importance of contact for members of the majority. Applied Psychology: An International Review, 61: 272-294. Viewed from http://www.culturalq.com/docs/APIR%202012%20Kim%20&%20Van%20Dyne.pdf Matsumoto, D. & Hwang, H. (2013). Assessing Cross Cultural Competence: A Review of Available Test. Journal of Cross Cultural Psychology, 44 (6): 849-873. Viewed from http://www.culturalq.com/JournalofCrossCulturalPsych.pdf Ng, K.Y., Van Dyne, L., & Ang, S. (2012). Cultural intelligence: A review, reflections, and recommendations for future research. In A.M. Ryan, F.T. Leong, & F.L. Oswald (Eds.), Conducting multinational research: Applying organizational psychology in the workplace (pp. 29-58). Washington, DC: American Psychological Association. Viewed from http://www.culturalq.com/docs/Ng_Van%20Dyne%20&%20Ang%202012%20CQ%20review.pdf Ng, K.Y., Van Dyne, L., & Ang, S. (2009). From experience to experiential learning: Cultural intelligence as a learning capability for global leader development. Academy of Management Learning and Education, 8, 511-526. Viewed from http://www.culturalq.com/docs/AMLE%202009%20Ng_Van%20Dyne%20&%20Ang.pdf Rockstuhl, T., Seiler, S., Ang, S., Van Dyne, L, & Annen, H. (2011). Beyond general intelligence (IQ) and emotional intelligence (EQ): The role of cultural intelligence (CQ) on cross-border leadership effectiveness in a globalized world. Journal of Social Issues, 67: 825-840. Viewed from http://culturalq.com/papers/JSI%202011%20Rockstuhl%20et%20al.pdf Rockstuhl, T., Hong, Y.Y., Ng, K.Y., Ang, S., & Chiu, C.Y. (2010). The culturally intelligent brain: From detecting to bridging cultural differences. NeuroLeadership Institute, 3, 1-15. Viewed from http://www.culturalq.com/docs/Rockstuhl_et_al_2010.pdf Van Dyne, L., Ang, S., & Nielsen, T.M. (2007). Cultural intelligence. In S. Clegg & J. Bailey, (Eds.), International Encyclopedia of Organization Studies, 1, 345-350. Viewed from http://www.culturalq.com/docs/IEOS%20Van%20Dyne%20Ang%20Nielsen%20CQ%202007.pdf Van Dyne, L., Ang, S., Ng, K.-Y., Rockstuhl, T., Tan, M.L., & Koh, C. (2012). Sub-dimensions of the four factor model of cultural intelligence: Expanding the conceptualization and measurement of cultural intelligence (CQ). Social and Personal Psychology: Compass, 6/4, 295-313. Viewed from http://www.culturalq.com/docs/Compass%202012%20Van%20Dyne%20et%20al%20Sub-dimensions.pdf Read More