Cultural Intelligence and Team Effectiveness

Topics: Culture, Cross-cultural communication, Intercultural competence Pages: 18 (5410 words) Published: November 15, 2012
Cultural Intelligence and Team Effectiveness|
Organizational Behavior Term Paper|

Submitted by:
Group 1- Section B
Rakhi Verma (SMBA 11022)
Vatsala Ratanpal (SMBA11032)
Abhishek Shukla (SMBA 11033)
Akriti Agrawal (SMBA 11035)
Amit Kumar(SMBA 11036)
Anjana Carri(SMBA 11037)

Table of Contents


Review of Literature4



Discussions and recommendations21

References…………………………………………………………………………………… 23


The purpose of this paper is to investigate the role of cultural intelligence (CQ) in establishing multinational teams and its association with team effectiveness. A sample of employees from two reputed companies in the UAE, HSBC Bank and Petrofac were surveyed with respect to their cultural intelligence and the effectiveness of their teams. The relation between Cultural Intelligence (measured as CQ) and team effectiveness was determined using Pearson’s coefficient analysis. Our findings suggest that CQ has an impact on the performance level of teams. The higher the CQ, the more adjusting are the team members. Thus, this would contribute to the success of the teams. This paper also concludes by suggesting some measures by which team effectiveness and cultural intelligence could be improved.

Cultural Intelligence (CI) is the ability to make oneself understood and the ability to create a fruitful collaboration in situations where cultural differences play a role. CI consists of three dimensions that correspond to the classical division between emotion, understanding and action. In a business world of non-stop change, innovation and globalization, companies have come to realize the importance of developing skills for staff to work effectively across culture. Companies such as. General Motors, Hewlett-Packard, IBM, Lucent Technologies, Nissan, Price Waterhouse Coppers, Toyota etc. take pride in their cultural diversity. In the global scramble for talent, organizations aspire to be the employer of choice. They hope to attract, develop, and retain the best talent in their organizations. Organizations such as Novartis and Nike see the competitive advantage in hiring culturally intelligent people. (Source: ) Cultural intelligence has now become a requirement for being successful today. It affects various aspects such as negotiations, conflict-resolutions and most importantly, communication (as s discussed in the later sections of the report). Thus, in order to function effectively in a new cultural context, executives must be able to quickly understand each new setting based on complex cultural cues, and be committed to understanding the new culture and overcoming his or her limitations within it while applying effective actions demanded by specific cultural situations.


Culture consists of shared patterns of ideas and behaviors. It might also be considered as an ‘operational code’ that is valid for an entire group of people. Culture conditions the individual’s range of action and ideas, including what to do and not to do, how to do or not do it, and whom to do it with or not do it with. Culture also includes under what circumstances the ‘rules’ shift or change. Culture influences how people make judgments about what is right and wrong, assesses what is important and unimportant, categorizes things, and deals with things that do not fit into existing categories. Cultural rules are flexible in practice.

Cultural Intelligence(CQ) and its importance:
The ability to interact effectively in multiple cultures has recently been labeled cultural intelligence (CQ). It can also be defined as,

* CQ...
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