CULTURAL DIVERSITY IN TODAY'S WORKPLACE
Just as the videos suggest, differences in culture can sometimes cause misunderstandings and miscommunication between individuals. For instance, in the United States, business meetings generally start with brief introductions and are typically structured to be very free form. In Japan, however, participants in meetings follow a much more formal and structured approach. So, considering these two differences, what would happen if American and Japanese businessmen were to hold a meeting with each other? Well, if neither party were informed of the cultural differences, the Japanese may find the Americans to be too blunt and even offensive in how they communicate. And, on the other hand, the Americans may find the Japanese to be unforthcoming with important information. Issues like these are not uncommon, and in turn can cause organizations to lose out on what could be mutually fruitful business opportunities.
In today's globalized market, it is becoming more and more important for individuals to understand the importance that culture plays within a business setting. In fact, for Americans, one does not even need to travel outside of their own country to encounter different cultures. In America, the everyday workplace is so diverse nowadays that cultural intelligence no longer applies to just expats. Leaders, mangers, and employees alike must now account for cultural differences when not only dealing with customers and clients, but also with fellow coworkers as well. But what is cultural intelligence? And more importantly, how can one increase or improve their cultural intelligence? |
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Cultural intelligence (CQ)
By now, especially in the United States, it is evident that globalization and multiculturalism are not only defining factors of today's marketplace, but also the workforce as well. In fact, multinational organizations have long understood that in order to be successful they must be able to adapt to cultural differences and be culturally aware at all times. Moreover, what is interesting is that recent research suggests that one's own awareness and abilities can even be measured, evaluated, and quantified into what is referred to as a "cultural intelligence quotient" (Livermore, 2010). So, what separates cultural awareness from cultural intelligence?
First, it should be understood that one has the ability to possess cultural awareness, but not be culturally intelligent. To better explain, let us use the example of an American businesswoman visiting Japan for the first time to meet with potential clients. In preparation for her trip, the businesswoman reads up on Japanese culture and concentrates most of her studying on aspects of Japanese business meetings. And by the time she lands in Japan, she has memorized every nuance and unspoken rule. Is it safe to say that she now possesses a high level of cultural awareness by learning about Japan's culture? Sure. The real question, however, is how successful and effective will she be operating within a new culture. Is she able to pick up on the subtle nuances and differences that she memorized? If so, how will she react in those situations? Cultural intelligence can therefore be best understood as one's ability to effectively function within different cultural contexts.
Employees who possess a high level of cultural intelligence also benefit organizations in ways other than just dealing with international clients. Often times, these employees' skills can be utilized to educate other employees of different cultures, assist other employees in increasing their own cultural intelligence, and can even be utilized to help build better interpersonal connections between multicultural employees within the organization. Managers with high levels of cultural intelligence are also known to lead more effectively due to their ability to "discern whether a seemingly bizarre behavior is explained by culture or is unique to a particular person or organization. Such discernment is critical in, for instance, cross-border negotiations, understanding new markets, unifying dispersed leadership teams and developing global marketing plans" (Livermore, 2010).
First, it should be understood that one has the ability to possess cultural awareness, but not be culturally intelligent. To better explain, let us use the example of an American businesswoman visiting Japan for the first time to meet with potential clients. In preparation for her trip, the businesswoman reads up on Japanese culture and concentrates most of her studying on aspects of Japanese business meetings. And by the time she lands in Japan, she has memorized every nuance and unspoken rule. Is it safe to say that she now possesses a high level of cultural awareness by learning about Japan's culture? Sure. The real question, however, is how successful and effective will she be operating within a new culture. Is she able to pick up on the subtle nuances and differences that she memorized? If so, how will she react in those situations? Cultural intelligence can therefore be best understood as one's ability to effectively function within different cultural contexts.
Employees who possess a high level of cultural intelligence also benefit organizations in ways other than just dealing with international clients. Often times, these employees' skills can be utilized to educate other employees of different cultures, assist other employees in increasing their own cultural intelligence, and can even be utilized to help build better interpersonal connections between multicultural employees within the organization. Managers with high levels of cultural intelligence are also known to lead more effectively due to their ability to "discern whether a seemingly bizarre behavior is explained by culture or is unique to a particular person or organization. Such discernment is critical in, for instance, cross-border negotiations, understanding new markets, unifying dispersed leadership teams and developing global marketing plans" (Livermore, 2010).
Three components of Cultural intelligence
Achieving high levels of cultural intelligence takes more than just being "intelligent, emotionally mature, and/or having good general social skills" (Liao, 2015). Instead, based upon an article written in Forbes by Echo Yuan Liao, cultural intelligence actually hinges upon three other important components - cultural knowledge, cross-cultural skills, and cultural metacognition.
Cultural Knowledge - Just as the title suggests, this component of cultural intelligence consists of possessing a broad understanding of the "whats" and "hows" of different cultures. For instance, what are the values of an international client and how should information be communicated to them (context).
Cross-Cultural Skills - This component of cultural intelligence actually consists of a broad set of skills that, when combined, attribute to one's intercultural effectiveness.
Cultural Metacognition - Also known as cultural mindfulness, this component refers to the level of control one possesses over their own "thinking and learning activities in the specific domain of cultural experiences and strategies" (Liao, 2015). To be culturally mindful, one must be aware of any differences in cultural context and consciously analyze intercultural interactions in order to broaden one's own understanding of different cultures.
Cultural Knowledge - Just as the title suggests, this component of cultural intelligence consists of possessing a broad understanding of the "whats" and "hows" of different cultures. For instance, what are the values of an international client and how should information be communicated to them (context).
- How to develop: Whether one simply reads a book, watches documentaries, or actually travels abroad to experience a different culture first hand, cultural knowledge can be developed through many ways. Furthermore, one can enhance their own learning experience by consciously making an effort to identify any unique characteristics about a culture, and taking mental notes as to how that information can be utilized in the future.
Cross-Cultural Skills - This component of cultural intelligence actually consists of a broad set of skills that, when combined, attribute to one's intercultural effectiveness.
- Relational Skills: Ability and willingness to interact with people from other cultures
- Tolerance of Uncertainty: Ability to tolerate ambiguity or unforeseen circumstances/situations
- Adaptability: Ability to adapt one's own behavior to better relate to a different culture's
- Empathy: Ability to place oneself in another person's shoes who is culturally different and attempt to understand something from their perspective
- Perceptual Acuity: Ability to read between the lines and understand others' feelings
- How to develop: The best way to develop this component is through first-hand experience, whether volunteering for an assignment overseas or traveling abroad.
Cultural Metacognition - Also known as cultural mindfulness, this component refers to the level of control one possesses over their own "thinking and learning activities in the specific domain of cultural experiences and strategies" (Liao, 2015). To be culturally mindful, one must be aware of any differences in cultural context and consciously analyze intercultural interactions in order to broaden one's own understanding of different cultures.
- How to develop: In order to better develop this component of cultural intelligence one should practice not only observing how others behave in different situations, but also how they themselves behave as well.
cultural intelligence Quotient (CQ): how is cultural intelligence measured?
As previously stated, cultural intelligence can be best understood as one's ability to effectively function within different cultural contexts. Cultural intelligence quotient (CQ) therefore measures this ability by quantifying the "set of capabilities believed to be important to both personal and professional success," and "focuses specifically on the skills needed for success in unfamiliar cultures" (Livermore, 2010).
According to David Livermore, author of the book, Leading with Cultural Intelligence, a person's cultural intelligence can actually be enhanced and improved. In order to do this, however, one must first assess themselves, or others, based on the following four CQ capabilities:
Another method, which is much more precise in calculating CQ, is to complete an online assessment at cq-portal.com. Not only does this site provide an overall CQ score, but it utilizes the Cultural Intelligence Scale, which was created by researchers Soon Ang and Linn Van Dyne. The scale is also the first measure of CQ to ever be academically validated.
Other CQ Assessments that can be found online for free:
According to David Livermore, author of the book, Leading with Cultural Intelligence, a person's cultural intelligence can actually be enhanced and improved. In order to do this, however, one must first assess themselves, or others, based on the following four CQ capabilities:
- CQ Drive (motivation) - How interested and confident are you at being able to function effectively in a culturally diverse setting.
- CQ Knowledge (cognition) - How knowledgable are you of different cultures? Although you do not need to be an expert, it is important to have a knowledgeable understanding of core cultural differences and similarities.
- CQ Strategy (meta-cognition) - How do you ultimately process and make sense of your own personal culturally diverse experiences?
- CQ Action (behavior) - How capable are you in adapting your behavior to different cultures?
Another method, which is much more precise in calculating CQ, is to complete an online assessment at cq-portal.com. Not only does this site provide an overall CQ score, but it utilizes the Cultural Intelligence Scale, which was created by researchers Soon Ang and Linn Van Dyne. The scale is also the first measure of CQ to ever be academically validated.
Other CQ Assessments that can be found online for free:
- CQ Quick Self-Assessment
- CQ Self-Inventory
- CQ 360 Inventory
Benefits of CQ Assessments
Recent studies have shown that over 90% of companies that utilize CQ assessments and training actually end up reporting increases in revenues within an 18 month period. In addition, companies that invested in enhancing the CQ levels of their leaders, were also seen to expand internationally much faster and were much "more successful at attracting and retaining top talent" (Livermore, 2010).
Cultural Intelligence and business strategy
In today's workplace, it has become crucial for HR managers and recruiters to identify and hire employees who possess skills that enable them to effectively work in cross-cultural situations. Along with hiring these types of employees, however, it is also equally important for companies to provide opportunities and channels that allow for their employees to further develop their cultural intelligence as well. This of course cannot be accomplished by a single workshop or training event, but rather through a well thought out development plan. In fact, according to an article written by Charles Coy, David Livermore was quoted as saying that "cultural intelligence isn't a destination; it's an ongoing journey of development" (Coy, 2014). More importantly, however, in order for a company to embed cultural intelligence throughout their organization, leadership must be committed and involved in the process as well. It takes more than just hiring the right people. For once the right people are hired, the right people need to lead them in the right direction. For instance, at Coca-Cola, leaders are currently in the process of trying to develop the cultural intelligence of each and every one of their employees, regardless of position or title. From multinational managers to bottlers working in a manufacturing facility, Coca-Cola utilizes "webcasts, learning modules and apps" to continuously develop their employees so as to embed cultural intelligence "into the DNA of the organization" (Coy, 2014).
Want to learn how to better analyze different cultures?
Click one of the buttons below to learn how to analyze and define cultures throughout the world. Each of the approaches below are different, but are all useful in helping to expand your own cultural intelligence.