Cultural Quotient

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Moreover, the ultimate behavior that defines a fine line between the successful managers and the other managers is the Cultural Quotient also known as Cultural Intelligence Quotient. Like IQ and EQ, Cultural Quotient (CQ) is a set of expertise that has been proved to give the organizations a superior authority to survive in this competitive world. CQ could be defined as an individual’s capability to understand and function in an effective manner through the national and the organizational cultures (Livermore, 2010). Changes that occurred in the global business environment over last 20 years Everything in this world is changing, except for change itself. The rate at which the world has witnessed change over the past few decades is dramatic and amazing, both at the same time. The world has transformed into a global village in which everything is interrelated. Every walk of life has been influenced by these changes. The business world is mostly affected by change, in both positive and negative way. Factors that served as a catalyst for change are uncountable. They are numerous. However, two of the most important factors that initiated changes are globalization and technology. As Sultan and Chan (2000) have mentioned, over the last 20 years many of the changes in organization have been predominantly driven by two factors: globalization and technology. These two factors changed the entire course on how businesses operated. Globalization is somehow linked with demographic changes. These changes did affect the business world. Globalization and technology have made the customer more educated, more informed and more aware than ever before. Rapidly increasing urban societies are not only changing the whole coarse of societies, but the business within them as a whole. The increased interaction and interdependent relationship between the public sector and the private sector is also changing the whole nature of the businesses today. Technology means, innovation, new things, new designs, creativity – all these terms are synonyms for change. Businesses no longer rely on the trademark and classic products they started off with. They are continuously looking for new things that will help them to achieve competitive advantage. No longer experienced is preferred over youth. Now businesses seek fresh blood and fresh ideas. Hodgkinson (2007) holds the belief that all these changes have also altered the paradigm which businesses used to operate in. Advanced technology has brought information at the finger tips of everyone. May it be an employee or a consumer, everyone has access to information all the time. This information has served as a blessing as well as a curse for the businesses. More information means more variety and more choices. This has certainly brought a great threat to businesses who need to revise all their existing products, policies, practices according the non stopping trends of the world. The shifts of local workforce to the global workforce have also brought many challenges. The management practices have been altered. They are much more in consideration with the global culture than one particular culture. The world has now become a huge market where there are customers and stakeholders stretching from one corner of the world to the other. The cutthroat competition has pressured the business immensely. Business struggle is all the time to get a