LEAD FPX 5210 Assessment 2 Building Global Leadership

Student Name

Capella University

LEAD-FPX5210 Leading Global and Diverse Cultures

Prof. Name

Date

Building Global Leadership

Introduction

Since the term Cultural Intelligence was first coined, the necessity for employees to develop this skill has only increased with the ongoing globalization of organizations. Effective cultural intelligence, or “CQ,” is crucial to the success of organizations whose employees frequently interact with people from other cultures (Ang, Van Dyne, & Rockstuhl, 2015). Individuals with a high level of CQ are more likely to succeed in any environment, especially in the business world. Today, globalization and technological advancements continue to transform how people interact and conduct business.

Employees with lower CQ often struggle to adapt and thrive in new cultural environments, even if they are top performers in their home country. In contrast, individuals with higher CQ can seamlessly bridge cultural divides and build strong synergies. CQ is assessed through four components: metacognitive, cognitive, motivational, and behavioral. The CQ framework involves four stages: acquire, build, contemplate, and do. To achieve the highest level of success, individuals must progress through these stages sequentially.

Four Components

Metacognitive CQ refers to cultural consciousness and overall awareness when interacting with individuals from different cultural backgrounds. Cognitive CQ involves understanding specific knowledge about a new culture based on observable signs. Motivational CQ reflects a person’s willingness and commitment to overcome obstacles and setbacks. Behavioral CQ is the ability to act appropriately in new cultural contexts. These four components must work together for an individual to effectively observe, comprehend, respond to, and implement appropriate actions.

Cultural Intelligence

Global organizations require exceptional leaders who use their strengths to solve complex technical and social problems. These challenges are amplified in a global context, where successful communication across different cultures is essential (Day, 2017). Leaders in diverse cultural settings must be highly aware of their surroundings and capable of functioning effectively. Cross-border leaders must navigate varying economic, political, and cultural practices (Rockstuhl, Seiler, Ang, Van Dyne, & Annen, 2011).

Leading on a global scale is challenging, even for strong leaders in their home countries. Cross-border leaders must adopt a multicultural perspective instead of relying solely on their home country’s viewpoint. With increasing workforce diversity and global business operations, individuals need to regularly interact with people from different cultural or ethnic backgrounds (Ang, Linn, & Koh, 2006). When applied correctly, the four-factor model of CQ can predict a leader’s success in diverse cultural settings.

Two Models

Hofstede’s cultural dimensions model originally included four values: power distance, individualism, masculinity, uncertainty avoidance, and long-term orientation. Developed through a study of IBM in 1970 across 56 countries, these dimensions used a scale of 1-100. Higher scores indicated more significant cultural distinctions. International business professionals may be surprised by differing cultural behaviors (Mulder, 2009).

The MBI (Map, Bridge, Integrate) model emphasizes managing cultural differences to add value. Unlike Hofstede’s focus on power inequality and interpersonal skills, the MBI model leverages cultural differences to enhance understanding. The MBI model involves mapping responsibilities, bridging communication gaps, and integrating differences. This approach helps leaders bridge cultural divides and fosters effective teamwork (Vadi & Meri, 2005).

Leadership behaviors can predict employee perceptions of organizational climate, better known as corporate climate. These predictors help develop global teams by analyzing the psychological impacts of work environments on well-being (Eisenbeiss et al., 2008; Liao & Chuang, 2007). Using these models in the workplace can involve simple knowledge transfers and building interpersonal connections. A multicultural workforce can foster innovation and creativity, solving complex problems with diverse perspectives.

The DAE (Describe, Analyze, Evaluate) model focuses on communication and intercultural relations. It encourages thoughtful, sensitive discussions about complex intercultural issues, fostering better awareness and understanding.

Leading in a Cross-Cultural Environment

Leading in a complex, multicultural environment requires personal adjustments and multifaceted leadership skills. Leaders must balance global demands while working with multiple cultures simultaneously. Successful cross-cultural leaders adapt their behavior to different cultural contexts, understanding that what works in one situation may not be effective in another. Cultural differences are critical for effective leadership, much like emotional intelligence focuses on working effectively with people (Van Dyne, Ang, & Livermore, 2010).

Application and Cultural Framework

The application of cultural frameworks in global organizations involves managing social distance. In diverse teams, individuals must build trust and understanding to foster effective teamwork. Hofstede’s cultural dimensions offer insights into leadership in global environments, defining power distance, individualism, masculinity, uncertainty avoidance, and long-term orientation. Analyzing these dimensions helps leaders understand cultural frameworks and apply process tools effectively in global settings.

Global organizations are cross-cultural, with leaders addressing global issues and experiences. Leaders must be both business-savvy and organizationally savvy, understanding overall cost structures, competitiveness, employee talents, and management hierarchies.

Conclusion

Cultural intelligence is essential for leadership in global organizations. Hofstede’s and MBI frameworks help leaders adapt to cultural differences and succeed in new environments. Different areas of CQ indicate leaders’ abilities to relate and perform across cultures. Cross-cultural leadership is complex and requires a high level of competence comparable to traditional leadership styles. Global organizations that prioritize CQ in their leadership selection can foster diversity, contentment, and talent retention. Successful leaders with high CQ can create an entrepreneurial culture that enhances involvement and retention. Focusing on education, information, and prevention helps develop cultural intelligence in leaders (Morocco World News, 2017).

References

Ang, S., Linn, V. D., & Koh, C. (2006). Personality correlates of the four-factor model of cultural intelligence. Group & Organization Management, 31(1), 100-123. Retrieved from http://library.capella.edu/login?qurl=https%3A%2F%2Fsearch.proquest.com%2Fdocview%2F203379344%3Faccountid%3D27965

Ang, S., Van Dyne, L., & Rockstuhl, T. (2015). Cultural intelligence: Origins, conceptualization, evolution, and methodological diversity. In M. J. Gelfand, C.-Y. Chiu, & Y.-Y. Hong (Eds.), Advances in culture and psychology: Vol. 5. Handbook of advances in culture and psychology, Vol. 5, pp. 273-323). New York, NY, US: Oxford University Press.

Day, G. (2017). From thought to action: How global organizations move employees past cognitive cultural intelligence to win the heart of CQ. Journal of Organizational Culture, Communications and Conflict, 21(2), 1-15, 12A. Retrieved from http://library.capella.edu/login?qurl=https%3A%2F%2Fsearch.proquest.com%2Fdocview%2F2023970973%3Faccountid%3D27965

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 advantages of cultural intelligence in business? Retrieved September 19, 2018, from https://www.moroccoworldnews.com/2017/03/211497/advantages-cultural-intelligence-business/

Mulder, P. (2009). Cultural dimensions by Geert Hofstede. Retrieved from ToolsHero: 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. doi:10.1111/j.1540-4560.2011.01730.x

LEAD FPX 5210 Assessment 2 Building Global Leadership

Vadi, M., & Meri, R. (2005). Estonian culture in the framework of Hofstede’s model (case of hotel industry). Trames: A Journal of the Humanities & Social Sciences, 9(3), 268-284.

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 (Eds.), Leadership across differences (pp. 131-138). San Francisco, CA: Pfeiffer.