Exploring the Relationship between Cultural Intelligence (CQ) and Management Competencies (MC)

Abstract

The aim of this study is to demonstrate the importance of Cultural Intelligence (CQ) in management performance through measurable performance assessment. In an empirical study, “Cultural Intelligence and Management Competencies”, managers provided a self-assessment and their subordinates also reported on their performance. Correlation analysis of the results of this study was used to examine the relationship between managers’ CQ and their Management Competencies. Among the factors examined (CQ, gender, origin, age, work experience, position and education), the level of CQ of managers correlates significantly with their management competencies. Our findings indicate that managers with higher CQ are more effective in their leadership roles, and we conclude that the CQ of leaders contributes to a more positive perception of leadership performance in teams that are characterized by significant cultural diversity.

1. Introduction

Cultural Intelligence, a 21st century concept, determines the extent of workers’ success in foreign cultures, but also provide an answer to why dealing with issues that arise from cross-cultural problems can cause failure or success. The name used for this concept is Cultural Intelligence, which was abbreviated by Ang as CQ, “short for cultural intelligence quotient” [1]; both forms (Cultural Intelligence and CQ) are used in research and the literature equally for the cultural intelligence model itself and the measured level of cultural intelligence, which can be confusing. In this study, the CQ abbreviation is used for both.

The individual relationships of a person living in a foreign culture have an impact on their life, their resilience and, of course, their performance in the workplace. The ways in which people can be successfully encouraged to work better vary from nation to nation and culture to culture. For all these reasons, there is a growing need for more and more people—whether managers or subordinates—to excel in their professions and to successfully overcome intercultural barriers, whether at home or in cultures and countries other than their own [2].

Working abroad is no longer surprising, as there is no small community or family that is not affected by the fact that one of its members decides to emigrate permanently or temporarily overnight, but it is by no means certain that they are prepared for the challenges of the new environment [3]. The globalisation of circumstances also poses a challenge for the newcomer, but the development of personal competences, including the elements of integration competence, is necessary to be able not only to cope but also to succeed [4].

In the case of diverse (i.e., multicultural) groups, initial friction arising from cultural differences can hamper success from the moment of entry and can escalate into serious conflicts if not properly addressed and managed in time, with negative financial consequences if workers from different backgrounds are hired.

In a fiercely competitive, “fast-paced world”, as the cliché has it, there is no time for trial and error: from the moment of their appointment, managers are subject to maximum performance demands, and the need to comply with all aspects of all actors. This can also manifest as a kind of compulsion, so it is crucial that the first person, the manager, is able to control critical situations. Linking CQ to Management Competencies (MC) can give managers working in an international, multicultural working environment particular confidence, and thus successful performance.

The aim of this study is to demonstrate the importance of Cultural Intelligence (CQ) in management performance through measurable performance assessment. The following research questions will be studied in this paper:

• RQ1: Is the CQ level of managers measurable, and what do the scores indicate to the manager, the subordinates and the company?
• RQ2: What influences the perception of leaders from the employees’ perspective?
• RQ3: Are the perceptions and effectiveness of leaders of multicultural groups better when they have higher CQ?

2. Literature Review

2.1. The Importance, Brief History and Measurability of CQ

CQ is a discipline of the 21st century, a product of globalization. Rockstuhl et al. [5] pointed out that, although leadership is influenced by general intelligence and emotional intelligence, these findings relate to operating at home, in one’s own country, and there was little research examining the impact in transnational contexts [5]. In the 21st century, researchers have turned their attention intensively to the skills and competences needed to integrate into other cultures. Egwuonwu et al. define CQ as human capital that can improve managerial relationship performance [2].

A pioneer in CQ research was Ang [6], who in 1997 noted that experts of different nationalities recruited for the Y2K problem, although skilled at their work and considered the best in their field, were not able to work together effectively. By exploring this new workplace requirement, Ang and Earley created the concept of CQ [7] and published a book on the results of their research, CQ [6]. Thomas and Inkson [8] further elaborated on their two classical theories, and listed knowledge, mindfulness, and intercultural skills as the components of CQ, with knowledge being the knowledge of one’s own and other cultures, mindfulness being the ability to pay attention to context, and intercultural skills being the skills to use the former two. Dogra and Dixit [9] have brought together the most significant published work on CQ beyond classical CQ research (

Table 1. CQ research.

Research Topic	Researchers
The link between CQ and the performance of foreigners	Kim, Kirkman and Chen (2008) [10]
The link between CQ, individual global identity and multicultural groups and group performance	Shokef and Erez (2008) [11]
The moderating role of CQ in foreign managers	Elenkov and Manev (2009) [12]
An integrated model of experiential learning and CQ	Ng, Dyne and Ang (2009) [13]
A conceptual model to investigate the role of CQ in labour diversity and group performance	Karma and Vedina (2009) [14]
The impact of CQ on conflict management skills	Ramirez (2010) [15]
Linking management CQ to leadership and team performance	Groves and Feyerherm (2011) [16]
A conceptual model in which prior intercultural experience influences international leadership potential through CQ	Kim and Dyne (2012) [17]
Link between CQ and employee engagement	Kodwani (2012) [18]
Impact of short-term international experience on CQ dimensions	Engle and Crowne (2013) [19]
The impact of CQ on multicultural negotiation performance	Groves and Feyerherm (2014) [20]
The role and impact of CQ on task performance	Jyoti and Kour (2015) [21]
CQ, global leadership preparation and communication effectiveness in terms of anxiety and uncertainty management	Mukherji, Jain and Sharma (2016) [22]
Factors influencing CQ	Garamvölgyi and Rudnák (2017) [23]
Conceptual model: the impact of management CQ on group performance	Dogra and Dixit (2017) [9]
Theoretical framework for examining the relationship between management CQ, group CQ and organisational CQ	Dogra and Dixit (2017) [9]
Developing CQ	Raver and Van Dyne (2017) [24] Alexander, Ingersoll, Calahan, Miller, Shields, Gipson and Alexander (2021) [25]
CQ and intercultural training	Alexandra (2018) [26]
CQ and the way we speak	Ng, Van Dyne, and Ang (2019) [27]
CQ and cultural diversity	Alexandra, Ehrhart, and Randel (2021) [28]

Source: own editing, based on [9,29].

).

In recent research, Schlaegel et al. [30] presented the results of seventy studies on CQ.

As indicated above, the volume of research shows that CQ is gaining ground in the palette of studies, and its field of application is constantly expanding, proving that it is indeed an inescapable phenomenon of our time.

The authors Garamvölgyi and Rudnák [31] consider CQ measurement and data to be some of the newest tools in international HR selection. Their complexity make them suitable for assessing the emotional, cognitive, behavioural, and psychological well-being of people considering a move to another culture, and even for predicting the time needed for successful integration and the extent of potential trauma caused by culture shock, which allows trauma to be minimized or even eliminated.

Currently, the best-known measurement tool is the Cultural Intelligence Scale (CQS), which has been developed over several years of work to create, refine, validate and cross-check the instrument. The development of the CQS has involved a wide range of samples with different compositions, including managers, students, expatriates and members of multicultural groups from all over the world [32]. The Cultural Intelligence Scale (CQS) was developed by The Cultural Intelligence Center, led by Van Dyne and Livermore. The Center has the first scientifically validated instrument to measure CQ [32].

CQ consists of four domains of ability, i.e., four factors (motivation, knowledge, strategy, action) which together determine the CQ score. These four factors correspond to the four dimensions of general intelligence [33]. These factors are named Motivational CQ, Cognitive CQ, Metacognitive CQ and Behavioural CQ. Characteristic of individuals with high factor scores on a given CQ dimension are as follows: People with high motivational CQ values have intrinsic interest in cultures, and from that stems their ability and willingness to direct their attention and energy to managing multicultural situations [5]. People with high cognitive CQ values create mental maps of culture and its environments and contexts. They can use these maps to understand cultural systems and rules that are the bases of social interactions in cultures [5]. People with high metacognitive CQ values have knowledge about the cultural norms and preferences of different societies, and they constantly check the validity of their knowledge and adjust it according to their experiences during intercultural interactions [5]. People with high behavioural CQ values are flexible during their intercultural interactions and are able to adapt their behaviours to best suit the situation to achieve the highest efficiency [5].

Several studies report on the results of recent CQ surveys: Stoermer et al. [34] investigated the importance of foreign workers’ CQ levels in relation to the informal and formal openness of the host country, while Hong et al. [35] took a pedagogical perspective to measure the CQ levels of university students. Presbitero [36] analysed the effectiveness of communication between members of virtual groups by measuring CQ. Richter et al. [37] and Mangla [38] investigated social integration and performance in virtual spaces in terms of CQ levels. Chin et al. [39] examined the importance of CQ in the context of a global health emergency. Guang and Charoensukmongkol [40] focused on leadership performance. Setti et al. [41] analysed the relationship between CQ, fit and performance.

With this in mind, research was set up to investigate whether the CQ of managers who work in a multicultural environment is measurable, and what the scores indicate to the manager, the subordinates and the company (RQ1).

2.2. Brief Description and Measurability of Management Competencies

Management Competencies are the key to successful leadership, and therefore the leader has influence not only on his or her own performance, but also on the effectiveness of their subordinates [42].

One of the classic theorists of competence theory, McClelland [43], summarised the characteristics of high performers as competencies. In his formulation, competence is defined as ‘the intrinsic characteristic of a person or group that predicts outstanding performance’; the attributes of an individual that are needed to perform effectively in his or her job or role in life. He looked at how performance could be measured, and what characteristics could be used to describe high performers and successful people. Competences can be grouped in several ways, one of which is the five types of competency characteristics individuated by Klemp and McClelland [44]: drivers, which motivate individuals to behave appropriately; general or specific knowledge/knowledge that is useful for their occupation; physical or intellectual ability; self-image, which shows the role people see themselves in; and personality traits. Knowledge and skills can be taught, and self-image, personality traits and drive can be developed.

The essence of Management Competencies is how one is able and willing to make an impact, which manifests itself in motivating others, leading by example, organizing, communicating, and in myriad other areas [45]. In recent decades, there has been an increasing focus on the development of key competences related to and necessary for leadership (Adler [46]; Hite and Mcdonald [47]; Kakabadse, Bank, and Vinnicombe [48]; Leblanc [49]; Margerison [50]; Margerison [51]). A number of researchers have attempted to identify the competences required for successful leadership, with a view to ensuring that leaders can be trained and developed on an ongoing basis (Analoui [52]; Cockerill, Hunt, and Schroder [53]; Education Review Office [54]; Katz [55]; Mann and Staudenmier [56]; Mintzberg [57]; Peter [58]; International-Profiles-Inc [59]; SHL [60]; Williamson [61]) [62].

A growing number of researchers have agreed on the importance of certain competencies, which were also promoted by senior management firms as SHL [63], Schroder [64] and Vincent [65]. This indicates that it is possible to create a universal competency model for assessing managers. There are three main types of Management Competencies: task management, people management and self-management [62]. Management Competencies are needed when carrying out a wide range of leadership tasks. Different competences are needed by employees and managers in different organisational hierarchies [42].

A comparison of Mintzberg’s leadership roles, general Management Competencies and IMC Management Competencies was done by Coetzee et al. where IMC’s personality trait and leadership skills factors were matched to Mintzberg’s interpersonal roles, IMC professional skills factors were matched to Mintzberg’s informational roles and IMC entrepreneurial skills factors were matched to Mintzberg’s decisional roles. Mintzberg considered information transfer and verbal communication to be very important in leadership. He considered leadership to be more of an art than a science [66].

SHL’s Inventory of Management Competencies (IMC) tool provides a 360-degree assessment of managers based on sixteen generic management competency models for measuring outstanding management performance/effectiveness [62], which leads the field in personal assessments. Since its publication it has been used in numerous research studies, but its validity has been tested under rigorous conditions. In a meta-study of 33 studies (22 empirical studies), it was found that the IMC instrument was used in the majority [67]. Today, more than 5500 organisations use the SHL tool and techniques [66].

For even more detailed competency assessments, the Perspectives on Management Competencies (PMC) model can be used, which examines 36 key Management Competencies from six perspectives [62].

The best possible organisation and use of human resources is a key factor in the market [42]. More and more researchers believe that competency-based organisations are the most efficient [68]. Good leadership requires leaders with the most developed Management Competencies. Competencies, or “attributes that can be described by behavioural characteristics”, describe how an employee or leader can achieve the stated goals [42]. They are expressed in “observable behaviour”. Competence is a combination of personality, ability, motivation and knowledge.

In our study, we seek to answer the question: What influences employees’ perceptions of their managers (RQ2)?

2.3. The Relationship between CQ and Management Competencies

Since the role of leaders, whether senior or middle managers, in corporate effectiveness and success is undeniable, the exploration, understanding and development of Management Competencies is essential. In a multicultural environment, however, the study of these competences and leadership skills is still in its infancy: the advantages and disadvantages of cross-cultural differences are not yet widely understood, which is why it is important to measure and develop CQ among managers. Rudnák [4] confirms this in her research: “managers are not yet aware of the challenges of a multicultural environment. The competencies that the profession considers almost indispensable have not yet become clear or conscious in the minds of Hungarian or foreign managers. Although their attitudes are inclusive, they are not adequately prepared and trained”.

Table 2. Dimensions of the research.

Dimensions (Factors and Latent Constructs or Scales)	Literature
Cultural Intelligence	Earley and Ang, 2003 [6] Earley and Mosakowski, 2004 [71] Ang, Van Dyne, and Tan 2011 [72] Thomas and Inkson, 2017 [8] Rockstuhl and Van Dyne, 2018 [73] Livermore and Van Dyne, 2018 [32] Schlaegel, Richter and Taras, 2021 [30] Guang and Charoensukmongkol, 2022 [40]
Management Competencies	McClelland, 1973 [43] Goleman, Boyatzis and Mckee, 2004 [74] Adler and Gundlersen, 2008 [75] Klein and Klein, 2020 [42] Dzwigol, Dzwigol-Barosz, Miskiewicz and Kwilinski, 2020 [76]

Source: [77].

lists notable researchers of Cultural Intelligence and Management Competencies. Groves and Feyerherm [16] point out that academic research on the cultural intelligence (CQ) of managers is rather scarce, despite the growing demand for a better understanding of cross-cultural managerial competences in the marketplace. In their study, they found that the CQ of leaders in culturally diverse work teams predicted both the leader’s emotional intelligence and other leadership competencies, in addition to the impact of the leader’s CQ on both the leader’s and the team’s perceptions of performance. Tuleja [69] found that, through a holistic conceptualisation of intercultural competence, the conscious use of the cultural competence model increased the level of awareness and could lead to a more culturally sensitive intercultural immersion activity. Ahmad and Saidalavi [70] examine the impact of CQ on global leadership effectiveness and found that CQ is a primary factor in the success of global leaders in multicultural environments. Egwuonwu et al. [2] investigated the impact of import managers’ cultural intelligence (CQ) on their relationship performance with their partners. They assessed managers’ metacognitive and motivational CQ and found that metacognitive CQ reduces the effect of psychological distance in buyer-seller exchanges, and that low levels of psychological distance result in increased relationship performance. Guang and Charoensukmongkol [40] examined the impact of Chinese expatriates’ cultural intelligence (CQ) on supervisor support, perceptions of managerial effectiveness, and subordinates’ commitment to the supervisor in the practices of Chinese companies in Thailand. The results suggest that Thai subordinates rate Chinese expatriates as having high CQ and perceive them more favourably in terms of supervisor support. Furthermore, they find that expatriates’ CQ also has a positive effect on managerial effectiveness and subordinates’ commitment. Livermore [7] states in his 2011 book that a leader with higher CQ is more likely to build trust and effectively lead multicultural groups and projects, whether in a domestic or foreign environment.

It was expected that the empirical survey results would demonstrate a strong correlation between CQ and Management Competencies, hence RQ3: Are the perceptions and effectiveness of leaders of multicultural groups better when they have higher CQ?

3. Materials and Methods

In the empirical study “Cultural Intelligence (CQ) and Management Competencies (MC)”, full-time Master’s students were asked to visit and arrange a face-to-face meeting with managers who have at least 3 subordinates and have subordinates from a different culture in their group. Data collection was carried out face-to-face, with questionnaires printed on paper (the SHL IMC tool was provided with a printed questionnaire for our use), completed by the managers for themselves and by their subordinates for their manager. As students were involved in the interviewing process, it was necessary to ensure the validity of the data. In a first step a training session was held for them, where the questionnaire, its content and the structured interview process were discussed. There were 30 students participating in the data collection. Once the completed questionnaires had been returned, they were converted into digital format.

The population of the study was managers working with multicultural groups. A representative sample is not feasible in this case. In selecting the sample used, the main objective was to reach as many respondents as possible (multicultural group leaders).

This type of sampling is best described by judgmental or purposive sampling where the respondents are sought out and chosen based on who is considered to be appropriate for the research [78].

Two different sets of questionnaires were used: one for managers and one for subordinates, relating to their manager. The two questionnaires had both identical and different sections: the sections on demographics and perceptions of the multicultural environment were identical, while the questions on CQ and Management Competencies were exclusively for the managers, to be completed by the managers themselves and by the subordinates for their manager.

The CQ scale is a reliable measure of a person’s ability to cope effectively in intercultural situations [79]. The scale was developed to test Earley and Ang’s 2003 concept and validity of CQ [33]. The 20 questions covered the 4 factors of CQ—motivational, cognitive, metacognitive and behavioural—and required a 7 point scale to indicate opinion. Results could be calculated and interpreted by factor and in aggregate.

In relation to management and managers—whether they are top or middle managers—a competence inventory (i.e., the definition, grouping, addition and reinterpretation of Management Competencies according to the needs of the time) represents an endless repository for management science as a discipline. Consequently, when establishing the subject’s background in the existing academic literature, there were plenty of choices as to which grouping and which elements of competence could be chosen. The main consideration was, of course, how could CQ be used to realise the Management Competencies that are expected or to be achieved.

To measure the management competencies, the SHL IMC Inventory of Management Competencies model was used. This questionnaire can be used to predict Management Competencies and to identify areas for improvement. The 160 statements describing behaviour were divided into 40 groups of four. Subjects were asked to respond in blocks: first to indicate the extent to which each statement was characteristic of them on a scale of 1-5, and then to select the strongest and weakest characteristic behaviour from the groups of four. The two types of response were scored separately, resulting in two profiles for the 16 IMC competencies: ‘normative’ (compared to others) and ‘ipsative’ (strength relative to self). For our research, the normative scores [42] were used. The processing of the completed questionnaires, the analysis and the reporting of the results were carried out by SHL Hungary Ltd. on our behalf, giving a score from 1 to 10 for each of the competences. Altogether 16 competences are measured this way which are grouped into four main groups: leadership skills, professional skills, entrepreneurial skills, and personality traits [42].

The query resulted in a data set comprising the survey results of 401 people (96 managers and 305 employees). Of the 96 managers, 75 managers had assessable Management Competencies from subordinates, which was also a limitation of the research: we could not interview all the managers surveyed with subordinates of the same nationality and of different nationalities.

One of the fundamental dilemmas of CQ research is a ‘chicken or egg’ dilemma: do Management Competencies affect CQ, or does CQ affect Management Competencies? Furthermore, the nature of the multicultural environment cannot be ignored in the analysis either.

For the research question analysis, SPSS version 26 was used: simple descriptive statistics (mean, standard deviation, expected value), plotting methods (boxplot, histogram, line-0, pie and bar charts, normal distribution test), correlation analysis, the Mann–Whitney test, the Kruskal–Wallis test, and the Kolmogorov–Smirnov test. Correlation analysis was used to examine the relationship between managers’ Cultural Intelligence and their Management Competencies. The Kolmogorov–Smirnov test was used to check the normal distribution of the values of Management Competencies and Cultural Intelligence values. The Mann–Whitney test for ordinal variables with non-normal distribution was used to analyse the difference between the means of groups in the analysis of Management Competencies of leaders. The Kruskal–Wallis test was used to compare the values of more than two independent samples for the values of Management Competencies, as shown in

Table 3. Statistical methods used to process the empirical research data.

Investigation Questions	Investigation Objectives	Analysis Method
Management Competencies grouped by gender and nationality of leader.	Normal distribution check	Kolmogorov–Smirnov trial
Cultural Intelligence dimension values and average and Management Competencies dimensions. Leader age and leadership competency values, leader work experience and leadership competency values.	Testing the strength of the relationship between two scalar variables	Correlation analysis
Leader gender and leadership competency values, leader nationality and leadership competency values.	Analysis of the difference between group means for ordinal variables with non-normal distributions	Mann–Whitney test
Age of leaders grouped by age and leadership competency values Managers’ work experience grouped and Management Competencies values The manager’s position and values of Management Competencies Manager’s education and Management Competencies values	Comparing values from more than two independent samples	Kruskal–Wallis test

.

In this research, the aim was to answer the three research questions mentioned in the introduction.

3.1. Research Questions

Three questions were used for the research:

• Is the CQ level of managers measurable, and what do the scores indicate to the manager, the subordinates and the company?
• What influences the perception of leaders from the employees’ perspective?
• Are the perceptions and effectiveness of leaders of multicultural groups better when they have higher Cultural Intelligence?

Rudnák’s [4] results of her research among senior managers have shown that there is a high demand for managers working in an international environment not only to have high professional and Management Competencies, but also to have other skills needed to deal with multicultural situations, for which Cultural Intelligence is the perfect tool.

A comparison of Management Competencies (MC) and Cultural Intelligence (CQ) scores by management and subordinate characteristics shows the correlation between the two categories (Figure 1).

3.2. Demographical Summary

The demographics of the sample are as follows (

Table 4. Summary of samples from the empirical study.

	Subordinates (n = 305)	Managers in RQ1 (n = 96)	Managers in RQ2 and RQ3 (n = 75)
Gender
Male	48% (146)	77% (74)	76% (57)
Female	52% (159)	23% (22)	24% (18)
Age
17–30	45% (137)	15% (14)	12% (9)
31–40	34% (104)	33% (32)	35% (26)
41–50	13% (41)	33% (32)	33% (25)
51+	8% (23)	19% (18)	20% (15)
Education
Intermediate	16% (50)	9% (9)	8% (6)
BSc/BA	54% (164)	32% (31)	33% (25)
MSc/MA	28% (87)	52% (50)	51% (38)
Ph.D.	1% (4)	6% (6)	8% (6)
Multicultural workplace experience
Yes	90% (275)	99% (95)	99% (74)
No	10% (30)	1% (1)	1% (1)
Nationality
Hungarian	41% (124)	32% (31)	32% (24)
Foreign	59% (181)	68% (65)	68% (51)
Do you speak a foreign language?
Yes	96% (393)	98% (94)	98% (73)
No	4% (12)	2% (2)	2% (2)
Experience abroad
Yes	52% (157)	85% (82)	84% (63)
No	48% (148)	15% (14)	16% (12)
Work experience in years
0–4	24% (74)	4% (4)	4% (3)
5–10	36% (109)	24% (23)	27% (20)
11–15	16% (48)	15% (14)	13% (10)
16–20	8% (25)	20% (19)	26% (12)
21+	16% (49)	37% (36)	40% (30)

).

Different amounts of managers’ data were used in the analysis for the research questions: 96 for RQ1 and 75 for RQ2 and RQ3, because during the data processing 96 managers had usable CQ questionnaire filled in by subordinates, and only 75 managers had both CQ and Management Competencies questionnaires by their subordinates that were fully usable.

In terms of gender, the sample in the case of subordinates was evenly balanced, albeit slightly in favour of men. However, if we look only at the managers (96), we see that male managers (74; 77%) are represented more than three times more than their female counterparts (22; 23%). For subordinates, the number of men (146; 48%) is slightly fewer than the number of women (159; 52%).

In terms of age, across the sample the under-40s are dominant, with 79% of the subordinates, but only 46, 48% of the managers are under 40.

Educational attainment shows a fairly high level of education, with 85% of the sample being graduates. Of the 96 managers surveyed, 90.5% (i.e., 87) are graduates and nearly 60% have at least a Master’s degree. Among the subordinates, 83.5% are graduates and most of them have a bachelor’s degree. Out of the 75 managers whose data are used in RQ3, 92% have a degree with 59% having a Master’s degree or higher.

The multicultural workplace experience plays a major role in the study, and it can be seen that 92% of the sample had such experience. Among managers, only one person indicated that they had never worked in a multicultural environment, and among subordinates only 10%, or 30 individuals.

Working abroad is closely related to the previous question, with 57% of the sample answering ‘yes’. Broken down into managers and subordinates, 85% of managers and only 51% of subordinates had experience of working abroad.

A total of 47% of all respondents were foreign: 68% of managers and 41% of employees.

Foreign language skills were very high in the sample: only 3% speak no language other than their mother tongue. Of the 14 people who only speak one language, or 3% of the sample, two were managers and 12 were employees.

The aim of the research was to demonstrate the connection between CQ and Management Competencies by testing the correlation of the aggregate values given for each manager by their subordinates. Managers were asked to determine their own CQ and Management Competencies too, but to achieve a more objective result the subordinates’ characterisations of their managers were used.

4. Results

4.1. Results of RQ1

To assess the CQ of the managers, the scores given by the subordinates filling in the CQS were used. The first step to investigate the possibility of measuring CQ was to test the validity of the CQS. This was followed by an examination of the scores obtained based on the different characteristics of the managers (i.e., gender, age, educational level, position).

4.1.1. Checking the Validity of the CQ Scale

For the research, the Cultural Intelligence Center’s Cultural Intelligence Scale (CQS) was used. The scores received were then used to check the validity of the CQS questions and corresponding dimensions. To check this, principal component analysis was performed on the questions of the scales and the internal consistency of the resulting sets of questions was examined using Cronbach’s alpha analysis.

The results of the principal component analysis and the Cronbach’s alpha values per CQ dimension (

Table 5. Demonstrating the validity of the Cultural Intelligence Scale based on 305 subordinates’ scores.

CQ Dimension	Mean	Weight	Cronbach’s Alpha
Motivational CQ	5.20		0.819
MOT1.	5.31	0.621
MOT2	5.30	0.743
MOT3	5.40	0.801
MOT4	4.75	0.712
MOT5	5.24	0.695
Cognitive CQ	4.59		0.872
COG1	4.79	0.736
COG2	4.69	0.711
COG3	4.53	0.803
COG4	4.39	0.756
COG5	4.38	0.670
COG6	4.72	0.665
Metacognitive CQ	4.98		0.876
MC1	5.04	0.625
MC2	5.03	0.783
MC3	5.03	0.701
MC4	4.81	0.697
Behavioural CQ	4.82		0.851
BEH1	5.02	0.699
BEH2	4.67	0.721
BEH3	5.00	0.777
BEH4	4.80	0.814
BEH5	4.65	0.768

) clearly indicated that the scale questions used were appropriate for calculating the values of the four CQ dimensions. To calculate the values of the dimensions, no weighted averages were used because the Cultural Intelligence Center required the use of simple averages within the dimensions.

Here, the highest mean value is of the motivational CQ (5.20) and the lowest is behavioural CQ (4.82) (

Table 6. CQ values of Managers.

	Motivational CQ	Cognitive CQ	Metacognitive CQ	Behavioural CQ	CQ
Mean	5.20	4.58	4.98	4.82	4.90

). The average value of the managers’ CQ is 4.9 on a 7 point scale, which is higher than the middle value.

4.1.2. CQ Scores

CQ values were examined by different factors, i.e., gender, age, work experience, position and education.

The male managers’ mean CQ was 4.83; the female managers’ was 5.12, and the difference is not significant. There was no significant difference found between the means when examined by age, work experience or education level, either. Interestingly, there was a significant difference found when the managers were grouped by the level of their position.

Operational level managers had significantly higher CQ values than the top managers, as Figure 2 shows, where the differing letters indicate significant differences. Since a high level of CQ indicates “the capability to deal effectively with people from different cultural backgrounds”, this may fully explain why operational level managers are valued more than top managers, as operational level managers have much more contact with people from different backgrounds and multicultural groups.

4.2. Results of RQ2: What Influences the Perception of Leaders from the Employees’ Perspective?

In addition to examining the relationship between CQ and Management Competencies, which is tested in RCQ3, the extent to which other sociodemographic factors influence the value of Management Competencies of managers were examined as well. Whether older or younger managers, those with more work experience, those with higher education and those in a higher position—male or female, and Hungarian or foreign managers—scored higher on the IMC questionnaire.

Table 7. Summary of RQ2 (n = 75).

		Management Competencies	Leadership Skills	Professional Skills	Entrepreneurial Skills	Personality Traits
Age group	Kruskal–Wallis test	No significant relationship	n.s.	n.s.	n.s.	n.s.
Work experience	Kruskal–Wallis test	No significant relationship	n.s.	n.s.	n.s.	n.s.
Education	Kruskal–Wallis test	No significant relationship	n.s.	n.s.	n.s.	n.s.
Position	Kruskal–Wallis test	No significant relationship	n.s.	n.s.	n.s.	n.s.
Gender	Mann–Whitney	Significant relationship between personality traits and competence	n.s.	n.s.	n.s.	Female managers scored significantly higher
Nationality	Mann–Whitney	No significant relationship	n.s.	n.s.	n.s.	n.s.

summarises the correlation of the different factors with Management Competencies.

Female managers had higher mean scores than men on leadership competencies in all four ability groups, but only for personality traits was there a significant relationship. Although Hungarian managers’ leadership competence was rated higher by their subordinates, there was still no significant relationship. There was no significant relationship between the manager’s position and the level of managerial competence. There was no significant correlation between manager’s education and the level of managerial competence. There was no significant correlation between the age of the leader and leadership competencies.

4.3. Results of RQ3

Managers’ CQ and Management Competencies levels were determined by using the values given to them by their subordinates. The values of CQ and Management Competencies were examined separately first. CQ was examined using the averages calculated by aggregating scores given by subordinates belonging to same manager. The next step was to examine the Management Competency values. Using the same method, scores were calculated for Management Competencies dimensions by aggregation the values given by subordinates belonging to same manager. These scores of CQ and Management Competencies were compared for each manager. A correlation study was performed by comparing CQ and Management Competencies. A total of 75 managers had at least three subordinates who completed both a CQ and an IMC questionnaire.

Table 8. Correlation between Cultural Intelligence and Management Competencies of managers (mean of the scores given by the subordinates) (n = 75).

	Leadership Skills	Professional Skills	Entrepreneurial Skills	Personality Traits
Cultural Intelligence	0.459 **	0.416 **	0.353 **	0.406 **
1. Motivational CQ	0.427 **	0.439 **	0.352 **	0.459 **
2. Cognitive CQ	0.349 **	0.267 *	0.198	0.266 *
3. Metacognitive CQ	0.441 **	0.423 **	0.315 **	0.420 **
4. Behavioural CQ	0.331 **	0.267 *	0.337 **	0.215

* Correlation confirmed at 0.05 significance level; ** Correlation confirmed at 0.01 significance level.

shows that, in general, there were no great differences in the values of the correlations. The significance level for each result is indicated by single or double asterisks. The results show that CQ has a moderately strong correlation with leadership skills, with the weakest correlation being with entrepreneurship (r = 0.353, p = 0.002). When examining the results by dimension, the weakest correlation is also found for the motivational CQ with entrepreneurial skills (r = 0.352, p = 0.002); for the cognitive CQ there is no correlation at all with entrepreneurial skills; for the metacognitive CQ, again entrepreneurial skills is the weakest correlate (r = 0.315, p = 0.006); while for the behavioural CQ there is no linear correlation with personality traits.

The results were also analysed from a Management Competencies perspective. Looking at each column of

Table 9. Correlation test results between managers’ CQ and Management Competencies.

		Management Competencies	Leadership Skills	Professional Skills	Entrepreneurial Skills	Personality Traits
Cultural Intelligence	Correlation test	Significant relationship with all four Management Competencies	0.459 **	0.416 **	0.353 **	0.406 **

** Correlation confirmed at 0.01 significance level.

, it can be seen that leadership skills have the weakest relationship with behavioural CQ (r = 0.331, p = 0.004), while professional skills have the weakest relationship with cognitive (r = 0.267, p = 0.02) and behavioural CQ (r = 0.267, p = 0.02). Entrepreneurial skills have no significant relationship with cognitive CQ, and personality traits have no significant relationship with behavioural CQ.

5. Discussion

The study of the multicultural work environment shows that it is characterised by the values of leadership as assessed by subordinates.

5.1. CQ Scale Validity and the CQ Measurability

The measurability of the CQ was confirmed by our empirical study, as the results of the validity check of the CQS instrument are in line with the findings of previous research: by developing and cross-validating the multidimensional cultural intelligence scale (CQS), Ang et al. [80] found that the results demonstrate a consistent pattern of relationships where metacognitive CQ and cognitive CQ predicted cultural judgment and decision making; motivational CQ and behavioural CQ predicted cultural adaptation; and metacognitive CQ and behavioural CQ predicted task performance. Van Dyne et al. [81], the creators of the CQS, believe that, given the importance of intercultural competences, the CQS is intended to fill a gap in the measurement literature. Egwuonwu et al. [2] stressed that the measured CQ of managers can answer further questions; their high level greatly helps the quality of the relationship between managers and their subordinates.

This measurability can be used for many other purposes, not only in economics but also as a very good tool in education, health care and civil life.

5.2. Relationship of Management Competencies and Other Factors

There was no significant relationship found between the age, position, education level and nationality of the manager and their Management Competencies scores. The results show significant relationships between only one factor and one group of management competencies. Female managers had higher mean scores than men on Management Competencies in all four ability groups; there was only a significant difference for personality traits, i.e., female managers’ personality traits were regarded better by their subordinates. Given that 48% of the subordinates in this study were male and 52% female, it can be said that the respondents were balanced; among the managers, 76% were male and 24% female which is what is normally observed in the world [82]. According to the results of this study, female managers’ social sense, flexibility, resilience and motivational levels were higher than the male managers’. Toegel and Barsoux discuss the importance of personality traits in becoming a better leader [83], showing this Manager Competency dimension’s importance. Pounder and Coleman looked at several research works conducted on the topic of whether female managers were “better” than male managers, and concluded that “it all depends” [84]. As stated in Pounder and Coleman’s study, there is no conclusive answer as to whether men or women are better leaders; our study’s results give us the same answer.

5.3. Correlation Test of Cultural Intelligence and Management Competencies

There is a significant positive relationship between CQ and the level of Management Competencies. Correlation values around 300–400 mean a moderately strong relationship in social sciences [85]. Based on these results, it is concluded that the higher the CQ of a manager, the higher their Management Competencies are valued. One possible indicator of subordinates’ satisfaction with their managers is the result of their assessment of the manager’s managerial competences. Based on the results of the empirical research, the results demonstrate that CQ has a stronger influence on Management Competencies (MC) than the sociodemographic characteristics of the leader (age, education, gender, whether the person is Hungarian or foreign) or the role (position) in the organisation. Very little empirical research examined the effects of CQ on leadership competencies [16]. Groves and Feyerhelm concluded in their study that overall leader CQ predicts subordinates’ judgments of leader performance: they state that the CQ of leaders contributes to the perception of leader performance in teams that are characterized by significant cultural diversity in terms of team members.

The aim of our research was to demonstrate the importance of CQ for managers, not only for employees.

Our longer-term goals are to develop appropriate methods to improve CQ and to empirically answer new questions: to what extent does higher CQ positively influence either work or private life?

6. Conclusions and Limitations

6.1. Conclusions

Regarding the question of whether CQ is measurable, the answer, based on the research of “Cultural Intelligence and Management Competencies”, is yes. There is a tool which is suitable for the measurement the Cultural Management Scale, which has been tested and validated by numerous research works, and our research gave the same conclusion as well.

The second research question sought the answer for what influenced the perception of leaders from the employees’ perspective, for which the study’s finding only indicated a relation between the managers’ gender and the perceived level of personality traits within Manager Competencies.

All four dimensions of CQ are significantly related to elements of Management Competencies, while this is not the case for sociodemographic characteristics. Only female leaders have significantly higher mean scores on the Management Competencies item of personality traits.

The research work’s main question was whether perceptions and effectiveness of leaders of multicultural groups are better when they have higher CQ.

Among the factors examined (CQ, gender, origin, age, work experience, position and education), the level of CQ of managers is significantly related to Management Competencies to the greatest extent. Managers who were found to be better leaders by their subordinates were those whose CQ was higher, as was clearly shown by the Management Competencies scores given to the managers. According to Rudnák et al. [86], if organizations can ensure positive intercultural adjustment among their foreign employees they may be less stressed in providing support for these employees, potentially saving organizations resources in the long run.

The sub-scores of Management Competencies include planning, organisation, quality, problem solving, business acumen, creativity, innovation and strategic sense, all of which are essential for effectiveness, so it can be asserted that managers with higher CQ are also perceived as more effective by their subordinates.

Since the research shows a strong significant relationship between CQ and Management Competencies, it is clear that leaders with a higher CQ are more effective in their leadership roles. If the professional and individual training and development of managers includes the acquisition of international experience, both competences are strengthened in a complementary way.

This research was carried out with people who work in a multicultural environment; hence, the high values obtained were not surprising. A further research project is planned to survey people (managers) who have not yet worked in a culturally diverse environment in their career. A comparison of the two measurement results could confirm the accuracy of the CQS and the CQ improvement effect of multicultural environments.

6.2. Limitations

Due to our situation and resources, we could only visit companies in Hungary for sampling purposes, which also means that the data we collected could only give us a general idea of the situation in Hungary. In other words, the sample is a reflection of the situation in Hungary, and that sample is not necessarily representative. Our findings apply only to this sample. We were able to conduct the survey using the tool provided by SHL.