LEAD FPX 5210 Assessment 2 Building Global Leadership LEAD-FPX5210 Leading Global and Diverse Cultures

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 concept of Cultural Intelligence (CQ) was introduced, the importance of developing this skill among employees has increased alongside the continuous globalization of organizations. Effective CQ is crucial for the success of organizations where employees regularly interact with people from various cultures (Ang, Van Dyne, & Rockstuhl, 2015). Individuals with high levels of CQ are more likely to succeed in any environment, particularly in business settings. In today’s business world, globalization and advancing technologies continue to transform how people interact and conduct business.

Employees with lower CQ often struggle to adapt and participate effectively in new cultural environments, even if they are star performers in their current country. In contrast, individuals with higher CQ often naturally bridge cultural divides and succeed by building strong synergies. CQ is assessed through four components: metacognitive, cognitive, motivational, and behavioral. The CQ framework involves four key processes: acquire, build, contemplate, and do. To reach the highest level of CQ, individuals must progress through each level sequentially.

Four Components

Metacognitive CQ refers to cultural consciousness and the awareness an individual has when interacting with people from different cultural backgrounds. Cognitive CQ involves the understanding of specific knowledge that one can acquire to better comprehend a new culture, based on cues provided. Motivational CQ is a person’s intrinsic motivation and commitment to overcoming challenges, even in the face of roadblocks and failures. Behavioral CQ is an individual’s ability to act in accordance with their desired actions in a new cultural context. These four components must work together for a person to observe, understand, respond to, and implement appropriate actions in cross-cultural interactions.

Cultural Intelligence

Global organizations require exceptional leaders who can effectively solve and overcome complex technical and social challenges. These challenges are magnified in global organizations, where successful communication in diverse cultural interactions is essential (Day, 2017). Leaders in diverse and challenging cultural environments are typically highly aware of their surroundings and capable of functioning above the norm in these settings. In cross-border contexts, leaders must navigate contrasting economic, political, and cultural practices effectively (Rockstuhl, Seiler, Ang, Van Dyne, & Annen, 2011).

Leadership on a global scale is challenging, even for individuals who excel in their home country. Cross-border leaders must adopt a multicultural perspective rather than focusing solely on their home country’s viewpoint. With greater diversity in workforce demographics and the integration of business organizations into the global economy, it is crucial for individuals to work and interact regularly with people from different cultural or ethnic backgrounds (Ang, Linn, & Koh, 2006). When applied correctly, CQ, using the four-factor model, can predict a person or leader’s success in a culturally diverse setting.

Two Models

Hofstede’s cultural dimensions model originally included four values: low power distance, individualism, masculinity, low uncertainty avoidance, and short-term orientation. These dimensions were developed through a study conducted by IBM in 1970, which involved 56 different countries. The study used a scale of 1-100 for each dimension, determining that higher scores indicated more questions regarding a dimension within that culture. People working in international business may be surprised by the behavioral differences in various cultures (Mulder, 2009). Culture often leads to disagreements rather than alliances.

The second model, MBI (Map, Bridge, Integrate), focuses on effectively managing cultural differences between employees, potentially leveraging these differences to add value. Unlike Hofstede’s model, which emphasizes understanding power inequalities, interpersonal skills, and collectivism, the MBI model highlights the value of cultural differences. Both models are valuable for developing global teams and resolving conflicts in diverse organizations. The MBI model defines the leader’s responsibilities, such as mapping, bridging, and integrating differences, to foster open-mindedness and bridge cultural gaps. Hofstede’s cultural dimensions reveal the extent to which power inequality is accepted within organizations, as well as the psychological effects of hierarchy (Vodi & Meri, 2005).