Cultural Intelligence of Today's Managers - Coursework Example

Does Cultural Intelligence make today’s manager truly global and effective?’ Table of contents Introduction 3 2. Literature findings 3 2.1 Findings related to cultural dimensions 4 2.2 Managerial qualities for CQ 4 2.3 Role of communication in CQ 5 2.4 Culture and values 6 3. Analysis, application and critique 6 3.1 Application of cultural intelligence 6 3.2 Practices to improve CQ 7 4. Conclusions 8 1. Introduction: Cultural intelligence has earned much attention in the globalized workplace due to the obvious consequences of globalization such as interdependence and the need for cross-cultural collaboration. According to Earley and Mosakowski, cultural intelligence is “an outsider’s seemingly natural ability to interpret someone’s unfamiliar and ambiguous gestures the way that person’s compatriots would,” (2004, p.140). Besides defining cultural intelligence, this sentence highlights the fact that a group can comprise of people from different cultures that express their views, feelings and opinions in various different ways. This fact is certainly a critical factor for managerial effectiveness in contemporary workplaces as identified by Nakamoto (2012) in his article that combines experiences in cross-cultural communication of different working personnel at various levels from different multinational organisations. The current report evaluates the concept of cultural intelligence, or cultural quotient (CQ), in organisations in global settings while exploring the significance of cultural differences and their impact, based on literature findings. Subsequently, these findings will be analyzed critically and possible applications explored while assessing the need for cultural intelligence for managers before concluding with key findings. 2. Literature findings: In general, managerial functions, as identified by Mintzberg (1971), include: interpersonal roles such as leadership, liaisoning and figure-heading; decisional roles such as resource allocating, negotiating, entrepreneur and crisis handling; and, informational roles such as monitoring, disseminating, and as spokesperson (cited Mullins, 2008). In global settings, managers need to develop global and transnational perspectives of which cultural understanding and adaptation are most essential (Stonehouse et al., 2007, p.49). 2.1 Findings related to cultural dimensions: On a broader level, Hofstede’s (1980) pioneering findings related to the influence of cultural and societal values on organisational behaviour set the ground for studying the need for cultural intelligence in organisational studies. Hofstede’s (1980) findings highlight four key cultural dimensions that provide significant insight for managers into sensitive aspects of cultural influences on attitudes and behaviours. These dimensions include power distance, uncertainty avoidance, individualism-collectivism, and masculinity-feminity; two more dimensions, time orientation and indulgence-self restraint were subsequently added by Hofstede (2011). However, many other cultural dimensions and associated views were subsequently put forth by others such as House et al (2004), and Trompenaars and Hampden-Turner (2002) (cited Deng & Gibson, 2008). Interdependence in globalized world and inherent cultural differences necessitate flexibility for managers and the adaptability of managerial practices according to the cultural context (Selmer and Lam, 2003; Deng & Gibson, 2008). 2.2 Managerial qualities for CQ: From flexibility and adaptability perspectives, Selmer and Lam (2003) emphasize that candidates brought up in foreign cultures, referring to them as third-culture kids, can become effective managers. Through their studies, Imai and Gelfand (2010) conclude that CQ should be one of the criteria for selecting managers in multinational and transnational companies in order to ensure effective negotiations with partners. Contradicting others’ findings on managerial negotiation skills in cross-cultural contexts, Morris (2005) argues that too much emphasis on cultural cues can not only divert negotiator’s focus but also dilute the effectiveness in negotiation process. Factors that could impede negotiating process in such contexts include pressures of attention, emotional stressors, culturally-biased thinking, and also confused approach. Highlighting different perspectives on cultural intelligence, Triandis (2006) makes an important point that the understanding attached to cultural intelligence varies in different cultures. So, managers that are considered as culturally intelligent in one culture may/may not be intelligent in another culture. In such situations, activities such as training, integration of information, understanding and awareness related to multiple cultures can assist in improving cultural intelligence. Earley and Mosakowski (2004) argue that cultural intelligence is in itself a unique attribute, like emotional quotient and social quotient, and it is required to understand, interpret and behave appropriately in cross-cultural contexts. Inclination towards learning about foreign cultures should be high in expatriate managers, which as per Useem (2001) is profound in third-culture kids (cited Selmer & Lam, 2003). 2.3 Role of communication in CQ: From a communication perspective, Brett, Behfar and Kern (2006) bring to surface the issues of direct and indirect communication, especially inherent in cross-cultural contexts, and represented in speech, gestures and behaviours, which managers need to understand when dealing with multicultural project teams. They point out that ineffective communication within a team can lead to reduced information sharing and/or greater interpersonal conflicts. Brett et al (2006) derive four strategies for effective management of multicultural project teams: adaptation, structural intervention, managerial intervention and exit. Although each of these strategies have been chosen after some evidence of success, their limitations cannot be ignored. Moreover, for managers cultural intelligence is of utmost importance for proper implementation of these strategies. Nakamoto (2012) highlights cultural inhibitions as one of the impeding factors in effective global leadership. 2.4. Culture and values: Management personnel in cross-cultural contexts need to understand and share national culture and values of the country they operate in or deal with, in order to earn the trust of their partners (Hofstede and Usunier, 2003). Values form the core components of national culture and are represented in individual preferences shaped by individuals’ backgrounds, upbringing, learning, societal norms, traditions, customs etc; these values cannot be easily adopted or influenced by others. However, habits, rituals, and ways of behaviour can be adopted, which has been evidenced in the third-culture kids (Selmer and Lam, 2003). Professional culture component, which gets formed in transnational organisations in the form of common symbols, can be helpful for managers in transnational organisations and are easily understood by all members associated with the organisation or group (Hofstede and Usunier, 2003). 3. Analysis and critique: 3.1. Application of cultural intelligence: Although an understanding of different cultures can be an added advantage to managers, it does not guarantee higher cultural intelligence unless the cultural awareness corresponds with managers’ area of location. For instance, Selmer and Lam (2003) admit that their findings related to third-culture kids are only perception-based with respect to these candidates’ willingness to learn and adapt to foreign cultures and environment; this research focuses on a single expatriate location, which could be a choice for the candidates owing to the location preference and other positive attributes of the location. This willingness, and therefore cultural intelligence, might change when the location is different and less developed than their host country. Selmer and Lam’s (2003) findings also point out that cultural intelligence of expatriates also depends upon their willingness to learn, communication skills, interpersonal sensitivity and cultural and social interests. These expatriates may or may not assume managerial roles in foreign locations. Moreover, cultural intelligence of expatriate candidates does not necessarily mean that they also possess effective managerial/leadership capabilities. Hofstede’s cultural dimensions can be of help for expatriate managers when framing policies and procedures in foreign locations. Power-distance and individualistic-collectivistic dimensions can help in designing organisational structure and hierarchy and performance management system; for example, flat organisational structure with greater empowerment and 360-degree feedback will be successful in Western cultures and team-based rewards will work best in the Eastern cultures. Neeley (2013) identifies some best practices for managers to improve cross-cultural team cohesions, such as allocating time to improve comfort levels between team members; forcing disagreements and encouraging alternative ideas from team members; pointing out differences of individual team members that could add value to the team; and creating awareness moments of fellow team members at other locations. 3.2 Practices to improve CQ: Cultural inhibitions are the result of lack of knowledge and skills to manage people in foreign cultures/locations. Training and coaching can be the most effective practice to help managers improve their cultural intelligence. However, training expatriate managers could incur higher costs to companies. Training expatriates is also contingent upon knowledge generation and dissemination activities adopted by the organisation (Selmer, 2002). By utilizing the tacit knowledge of previous expatriate managers, training-related costs can be minimized; however, managers’ experience and knowledge should match with current workplace location. The most common settings where contemporary managers would require high cultural intelligence are multicultural project teams. The point made by Brett et al., (2006) on direct and indirect communication can be mostly felt in multicultural project teams. In such teams, direct statements might sound rude to people from one culture whereas these may seem perfect for others; in some cultures, it is common and also acceptable to carry out business negotiations on the basis of bribes, whereas bribes are considered illegal and unethical in other cultures. Asking questions may be rude in some Eastern countries, whereas it is expected and common in most western cultures. While Imai and Gelfand (2010) assert the importance of cultural intelligence for managers in intercultural negotiations, they also contemplate its application in intracultural settings with diverse workforce. In the latter settings also, considering Triandis’ (2006) assertion, managers would be able to manage effectively with high CQ of the same culture; but this CQ might not be as effective if members are influenced by other cultures due to their background or upbringing. 3. Conclusions: It may be concluded that findings from literature point at the need for managers to possess high CQ in order to manage effectively at global level. Almost every managerial role identified by Mintzberg involves interaction and communication activities. Contemporary organisations that operate in global environment require constant interactions with people from various locations. All interactions involving communication, negotiation, conflict-handling etc., are usually under the influence of respective cultural beliefs and behaviours. Managers as the mediators of these interactions are therefore required to possess sufficient knowledge and understanding of different cultures in order to manage effectively. Using cultural intelligence, managers can introduce specific customized strategies to manage global teams more effectively. Cultural intelligence can be of great assistance for expatriate managers while framing policies and procedures that would benefit their businesses in foreign locations. A few initiatives to improve CQ include training, coaching, and integration of information from experienced managers or other professionals. However, costs involved in such training must be considered. References Brett, J, Behfar, K and Kern, MC (2006). ‘Managing multicultural teams.’ Harvard Business Review. 84 (11), pp: 84-90. Deng, L and Gibson, P. (2008). ‘A qualitative evaluation on the role of cultural intelligence in cross-cultural leadership effectiveness.’ International Journal of Leadership Studies, 3 (2), pp: 181-197. Earley, PC and Mosakowski E (2004). ‘Cultural intelligence.’ Harvard Business Review, 80 (10), pp: 139-146. Hofstede, G. (1980). ‘Motivation, leadership and organisation: do American theories apply abroad?’ Organisational Dynamics. 9 (1), pp: 42-63. Hofstede, G and Usunier CJ (2003). ‘Hofstede’s dimensions of culture and their influence on international business negotiations.’ In Ghauri, P and Usunier C, J (Eds.) International business negotiations. 2nd ed. Oxford, UK: Elsevier. pp: 137-154. Hofstede, G (2011). ‘Dimensionalizing cultures: the Hofstede model in context.’ Online Readings in Psychology and Culture, 2 (1), http://dx.doi.org/10.9707/2307-0919.1014 (Accessed 27 mar 2013). Imai, L and Gelfand, MJ (2010). ‘The culturally intelligent negotiator: The impact of cultural intelligence (CQ) on negotiation sequences and outcomes.’ Organisational Behaviour and Human Decision Processes, 112, pp: 83-98. Morris, MW. (2005). ‘When culture counts-and when it doesn’t.’ Negotiation. Harvard Publishing Newsletter. Mullins, LJ (2008). Management and organisational behaviour. 2nd ed. Harlow, UK: Pearson Education Ltd. Nakamoto, M (2012, January 11). ‘Cross-cultural conversations.’ Financial Times. 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