Final answer:
Cultural competence is the development of necessary skills and attitudes to interact effectively in multicultural situations, respecting and valuing cultural diversity.
Step-by-step explanation:
Developing a set of knowledge, behaviors, attitudes, skills, and policies to work effectively within multicultural situations is called cultural competence. Cultural competence involves learning how to respect, communicate, and collaborate with people from diverse backgrounds to optimize an organization's efficiency and productivity. It contrasts with cultural assimilation, where individuals or groups adopt the culture of a dominant group, losing their original cultural identity.
The concept of cultural competence acknowledges and values cultural diversity, operating under the metaphor of a 'salad bowl' wherein different cultures maintain their unique 'flavors' and contribute to a rich and diverse society, known as pluralism. This is especially relevant in settings where multicultural interactions are common, and the need for cultural sensitivity is high to avoid the pitfalls of ethnocentrism.