Diversity in a rapidly globalizing economy is a central field within organizational behavior and managerial development, underlining the critical importance of deriving synergy through cultural intelligence.
Defining Cultural Intelligence
The concept of cultural intelligence is exactly what it sounds like—the ability to display intercultural competence within a given group through adaptability and knowledge. Studying the components of culture, the theories pertaining to cultural dimensions and competencies, and the current initiatives in promoting these concepts are all powerful resources for managers involved in foreign assignments.
Components of Cultural Intelligence
The components of cultural intelligence, from a general perspective, can be described in terms of linguistics, culture (religion, holidays, social norms, etc.), and geography (or ethnicity). As a result, individuals interested in developing their cultural quotient (CQ) are tasked with studying each of these facets of cultural intelligence in order to accurately recognize the beliefs, values, and behaviors of the culture in which they are immersed.
An interesting perspective on cultural intelligence is well represented in the intercultural-competence diagram, which highlights the way that each segment of cultural knowledge can create synergy when applied to the whole of cultural intelligence, where overlapping generates the highest potential CQ.
Intercultural competence
This diagram illustrates the three factors that constitute an effectively intercultural understanding for management: Regional Expertise, Language Proficiency, and Cross-Cultural Competence.
Cultural Intelligence and Cultural Framework
With these components in mind, it is useful to apply them to varying theoretical frameworks designed to illuminate the cultural dimensions and value differences across the globe.
Hofstede's theory of cultural dimensions is particularly interesting, as it allows for a direct quantification of specific cultural values in order to measure and benchmark cultural norms in a relative and meaningful way. Hofstede's theory was designed in the 1960s and 1970s, and has remained a relevant perspective in international business, international politics, and cross-cultural psychology. His theory notes six specific variables to measure:
- Power distance index (PDI): Simply put, this measures the level of acceptance of authority naturally present in a culture. Less powerful members must accept leadership just as more powerful individuals must bear the responsibility of leading.
- Individualism (IDV) vs. collectivism:Just as it sounds, this measurement denotes the way in which cultures tend towards group work to accomplish tasks versus individual and more independent contributions.
- Uncertainty avoidance index (UAI): Tolerance for uncertainty and ambiguity is a critical element of a society's ability to react to certain management styles and situations, providing an important measurement for understanding how much micromanagement may be useful.
- Masculinity vs. femininity: Somewhat less clear than the other factors, this identifies specific gender roles and measures the ways in which cultures reflect these roles. This is a highly debatable measurement because it innately stereotypes.
- Long-term orientation:Perhaps most critical of all to businesses is the concept of a longer- or shorter-term focus, particularly as it pertains to objectives. Understanding cultural predispositions in this regard assists in goal setting and understanding projected timelines.
- Indulgence vs. restraint: The ability of individuals within a given culture to control their desires. This is relevant to consumption, self-control, and frugality.
These theoretical variables help in analyzing what is currently being done in pursuit of higher CQ, as well as what challenges lay ahead for international managers. Understanding linguistics, cultural norms, and varying values will allow for higher localization and efficiency within global businesses.