In the 21st century, more and more companies became globally connected. Even after the initial analysis of COVID-19 pandemic impacts, while the environment has been definitively changed, there is no indication that business globalization is on a significant downward trend. “The bottom line for business is that Covid-19 has not knocked globalization down to anywhere close to what would be required for strategists to narrow their focus to their home countries or regions. Corporate globalization was never easy, but if international opportunities and competitive threats mattered for a company before the pandemic, they will surely continue to matter in 2021 and beyond” (Altman & Bastian, 2021, para. 17). As such, modern leaders must be adept at identifying and navigating the culturally influenced emotional and social aspects of their surrounding environments and relationships to effectively manage diverse global teams.
According to research, effective leaders demonstrate traits associated with both social and emotional intelligence (EI) (Northouse, 2018, PP. 22 – 28). “Zaccaro (2002) defined social intelligence as having such capacities as social awareness, social acumen, self-monitoring, and the ability to select and enact the best response given the contingencies of the situation and social environment” (Northouse, 2018, p. 22). “Emotional intelligence can be defined as the ability to perceive and express emotions, to use emotions to facilitate thinking, to understand and reason with emotions, and to effectively manage emotions within oneself and in relationships with others (Mayer, Salovey, & Caruso, 2000)” (Northouse, 2018, P. 28).
Research indicates that effective global leaders demonstrate emotional intelligence as well as intercultural competence (Hui-Wen, Mu-Shang, & Nelson, 2010, p. 902). “Intercultural sensitivity is about appreciating the deeper impact of cultural difference on how we interact with other people and the effect this has on one’s own perceptions of other people. Intercultural competence is a measure of one’s effectiveness in such interactions with other people” (SHRM, 2021, paras. 4-5). “The strong correlation between overall EI and overall leadership practices reveals that despite differences between the two comparison cultures, emotional intelligence was perceived as an underlying competency for effective academic leadership in both cultures. In order to lead effectively, high emotional intelligence is required to leverage a sense of self awareness, to manage their own emotions and those of others, and to lead in accordance with the cultural expectations of their organizations” (Hui-Wen et al., 2010, p. 918).
However, studies also revealed that emotional and social intelligence are influenced by individual culture which carries the potential for cross-cultural miscommunication and conflict in leaders’ relationships with diverse global teams (Pathak & Muralidharan, 2020, p. 519). “Cross-cultural differences in EI of managers could lead to conflict. Such intercultural conflicts may occur due to a lack of emotional awareness regarding the differences in behavioral expectations (Ang et al., 2006; Black & Gregersen, 1991; Brislin et al., 2006; Kumar et al., 2008; Triandis, 2006) … EI can be critical to the effectiveness of cross-border emotionally intensive areas of human activity, including leadership and leadership styles (Deng & Gibson, 2009; Goleman et al., 2002; Humphrey et al., 2008)” (Pathak & Muralidharan, 2020, p. 519).
A leader who wishes to be successful in managing teams that are culturally diverse should focus their efforts toward educating themselves on others’ cultures as well as being emotionally and socially aware of their diverse teams’ needs. “Effective communication, teamwork and leadership to drive organizational results depend on people of different backgrounds communicating and working well with each other. Success requires intercultural competence” (SHRM, 2021, para. 26). In today’s business world, effective global leadership requires emotional and social intelligence rooted in intercultural competency.
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References
Altman, Steven A., & Bastian, Phillip. (2021, March 18). The State of Globalization in 2021. Harvard Business Review. https://hbr.org/2021/03/the-state-of-globalization-in-2021
Hui-Wen, V., Mu-Shang, Y., & Nelson, D. B. (2010). The relationship between emotional intelligence and leadership practices: A cross-cultural study of academic leaders in Taiwan and the USA. Journal of Managerial Psychology, 25(8), 899-926. http://dx.doi.org.ezaccess.libraries.psu.edu/10.1108/02683941011089143
Northouse, P. G. (2018). Leadership: Theory and Practice (8th Edition). SAGE Publications, Inc. (US). https://mbsdirect.vitalsource.com/books/9781506362298
Pathak, S., & Muralidharan, E. (2020). Implications of culturally implicit perspective of emotional intelligence. Cross-Cultural Research, 54(5), 502–533. https://doi.org/10.1177/1069397120938690
SHRM. (2021). Intercultural competence as a key enabler of organizational growth and success. https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/interculturalcompetence.aspx