LEAD FPX 5210 Assessment 2

Building Global Leadership

Introduction

Since the conceptualization of cultural intelligence (CQ), the necessity to develop this skill has grown, particularly in the case of increasing organizations’ globalization. CQ’s success is essential for organizations in which employees engage with individuals representing various cultures (Ang, Van Dyne, & Rockstuhl, 2015). Individuals with higher CQ can better succeed across various settings, especially in corporate environments. As globalization continues to grow and there are emerging technologies, how humans communicate and conduct business evolves.

Lower CQ workers will battle to integrate and participate in emerging cultures despite them being high-achievers where they are based. On the other hand, higher CQ people have the innate ability to bridge the culture gap and do well by constructing synergies. CQ is measured through four dimensions: metacognitive, cognitive, motivational, and behavioral. The CQ model has steps such as: acquire, build, contemplate, and do. One must pass through these stages by being a master of every step of CQ before proceeding to the next step. 

Four Components

Metacognitive CQ is the utilization of cultural awareness and consciousness while communicating with individuals from different cultures. Cognitive CQ is the understanding of certain knowledge about a foreign culture, typically obtained through exposure to cultural signals. Motivational CQ is the commitment of one to cope with setbacks and challenges when working with differences of culture. Behavioral CQ is the ability of an individual to act according to his or her preferred behavior when placed in unfamiliar cultural settings. These components must be working in harmony so that individuals can effectively observe, comprehend, react, and implement appropriate actions.

Cultural Intelligence

Global enterprises require world-class leaders to manage complex technical and social issues (Day, 2017). The problems are magnified in global environments, where the leaders must communicate and work with individuals who represent different cultural backgrounds. Successful cross-border leaders are usually extremely sensitive to the environment and can function effectively in multicultural settings. Global leaders must work with several different economic, political, and cultural systems (Rockstuhl, Seiler, Ang, Van Dyne, & Annen, 2011).

Global leadership is challenging even for the top performers within one’s own country. Cross-border leaders must acquire a multicultural orientation rather than using their culture as the basis for leadership. Multiculturalism in the workforce and economy requires people to communicate on a regular basis with different cultures. Using the four-factor CQ model has the potential to decide a leader’s capacity to work in other environments (Ang, Linn, V.D., & Koh, 2006).

Two Models

Hofstede’s cultural dimensions model initially had four dimensions: low power distance, individualism, masculinity, and low uncertainty avoidance. They were based on studies conducted at IBM in the 1970s in 56 countries, on which each of the dimensions was scored from 1 to 100 (Mulder, 2009). The higher the score, the more prominent some cultural aspects were. Culture often causes differences rather than convergence, so those who haven’t been exposed to it would be surprised.

The MBI model (map, bridge, integrate) introduces a new approach that addresses cultural differences among employees and leverages these differences as added value. In comparison with Hofstede’s model on the basis of power inequalities, MBI focuses on the excellence of differences in cultures. MBI incorporates mapping to establish duties, bridging debates in cultures, and combining the differences to develop cooperation. The leaders utilizing this model can bridge cultural differences. Hofstede’s dimensions, on the other hand, indicate the level at which disparate power distribution is embraced in institutions, which could cause psychological detachment (Vodi & Meri, 2005).

LEAD FPX 5210 Assessment 2 Building Global Leadership 

Scholars have also suggested that leadership behaviors can predict employees’ perceptions of organizational climate, directly influencing international teams’ success (Eisenbeiss et al., 2008; Liao & Chuang, 2007). Leadership will more effectively tap CQ through recognition of the psychological impact of ethnically diverse work environments. Diversity can lead to innovative solutions as well as increased team cohesiveness.

A third model, the DAE (describe, analyze, evaluate) model, is concerned with communication in intercultural relations. This model involves asking people to challenge their cultural assumptions and builds relationships on thoughtfulness and sensitivity. It builds cultural awareness and sensitizes people to adopt new perceptions, moving away from habitual thinking.

Leading in a Cross-Cultural Environment

Leading in a cross-cultural environment poses challenges for followers and leaders alike. Individuals in such roles are required to fit into the environment as well as the various cultures they encounter. Cross-cultural leaders must be flexible and capable of managing more than one culture simultaneously. To succeed in this environment, one must be able to adapt, as what works in one culture may not work in another. Cultural intelligence is necessary for leaders to handle these complexities (Van Dyne, Ang, & Livermore, 2010).

Application and Cultural Framework

Social distance is a challenge in international organizations, particularly when groups are composed of individuals from diverse cultures. Shared behaviors and attitudes to support shared objectives are necessary in developing trust and collaboration. Hofstede’s dimensions provide a framework for understanding leadership roles in an international context, including power distance, individualism, masculinity, uncertainty avoidance, and long-term orientation. The dimensions help leaders cope with cultural differences and develop strategies for global leadership.

It is also important to understand the difference between organizational savvy and business savvy. Organizationally savvy leaders have a larger picture in mind in terms of organizational structure, including costs, competition, and managing talent. On the other hand, business-savvy leaders focus more on making profit.

Conclusion

Cultural intelligence (CQ) is an exigency in leadership success in global organizations. Leaders must transcend differences across cultures and set their behavior to adapt to new situations. Hofstede’s dimensions and the MBI model allow leaders to understand and manage these differences. Multinational organizations’ success relies significantly on a leader’s ability to relate to different cultures and function well in cross-cultural environments. High-CQ leaders drive innovation, collaboration, and talent retention and are crucial to the overall success of the organization.

LEAD FPX 5210 Assessment 2 Building Global Leadership 

Liao, H., & Chuang, A. (2007). Transforming service employees and climate: A multilevel, multisource examination of transformational leadership in building long-term service relationships. Journal of Applied Psychology, 92(4), 1006–1019.

Morocco World News. (2017, March 20). What are the benefits of cultural intelligence at work? Retrieved September 19, 2018, from https://www.moroccoworldnews.com/2017/03/211497/advantages-cultural-intelligence-business/

Mulder, P. (2009). The work “Cultural Dimensions” was authored by Geert Hofstede. ToolsHero. Retrieved from https://www.toolshero.com/communication-skills/hofstede-cultural-dimensions/

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(4), 825-840.

Van Dyne, L., Ang, S., & Livermore, D. (2010). Cultural intelligence: A pathway for leading in a rapidly globalizing world. In K. M. Hannum, B. McFeeters, & L. Booysen and colleagues edited the book titled “Leadership Across Differences,” which spans pages 131 to 138.