Difference Between Human Capital Theory And Cultural Intelligence

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In this study, two theories will be applied, Cultural intelligence and Human Capital theory. The first theory, Cultural intelligence, refers to the empathy directed toward people from racial and ethnic cultural groups who are different from one’s own ethno cultural group (Wang, 2003). Cultural intelligence, also known as cultural empathy, was selected for this study as culture has a vast influence on expatriates trying to adapt to the host country. Therefore, it is important to discuss how expatriates react to cultural differences. The second theory, Human Capital theory, explains that employees’ knowledge, skills and capabilities are of economic value to organizations (Hsu, Yeh-Yun Lin, Lawler, & Wu, 2007). Human capital theory was chosen because it explains that training is an…show more content…
Furthermore, Empathy has been broadly conceptualized into two categories: a) cognitive empathy and b) affective empathy. The cognitive components of empathy involve the ability to mentally represent other peoples’ mental processes, whereas the emotional/affective components involve the actual emotional reaction (Reniers, Corcoran, Drake, Shryane, & Völlm, 2011). Cognitive empathy requires that information is held in mind and manipulated, on the other hand, affective empathy involves a swift recognition of the other person's emotions on the basis of facial expressions, body gestures, and voice prosody. (Reniers, Corcoran, Drake, Shryane, & Völlm, 2011)
A working definition of empathy should consider its multidimensional nature without including behavioral expressions such as sympathy. It should consist of two parts: a) cognitive empathy and b) affective empathy. Cultural empathy is, consequently, a way of relating interpersonally as well as understanding and communicating across cultures (Reniers, Corcoran, Drake, Shryane, & Völlm, 2011).
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