Cultural Challenges of Global Team Management (Research Paper Sample)

Cultural Challenges of Global Team Management
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Abstract
This study aims at understanding the relationships between management of team global projects and cultural characteristics. In order to understand this concept deeply, the study will use six case studies based on Brazilian multinational companies with an aim of deep rooting the understanding of global teaming. This teaming involves management of human resources, deployment and development. In the study, it was found that the main issue that hinders construction of global mindset is the little concern that individuals have on the issue of multiculturalism. Faced with this problem, each managerial process highlights were presented with a number of actions that a project manager needs to undertake in three dimensions: the environment, the organization, and the project itself. This works tries to enable Brazilians multinational companies to manage their global teams so as to maximize the advantages that come as a result of it. These benefits include innovative capacity, increased creativity and avoid political and project conflicts
Introduction
Developing countries were faced with outflows in Foreign Direct Investment in the year 1980s but the trend has seen significant changes. An example of this is the global crisis that occurred in 2008 resulting in a drop FDI from developed countries but not developing. In the year 2006, Brazil experienced the same when their investments abroad were exceeding the foreign investment in Brazil MDIC (2009). Internationalization process has made it possible for increase in projects across the borders. This brought about challenges from the time different authorities from different countries need to share responsibilities, authority and decision making Shore & Cross (2005). The ability of multinational corporations to integrate knowledge, resources and assets globally, offers them a competitive advantage. On one hand, coordination and cooperation of global projects is a global challenge while cultural issue is identified as the cause of failures in projects. The manager has to understand the impact of cultural diversity in a situation where every individual carries their beliefs and values Leybourne (2007). Studies in the area of management with the focus on organization shows that cultural issues of people management appears to be an emerging theme and not taking into account the issue of management of global projects Bareto (2011).
Background study
The aim of scientific studies is on the impact of national cultures in the management of organizations. Generic managerial decisions and solutions might not be useful when solving specific cultural issues because globalization of a business does not necessary bring cultural globalization (Hofstede, 2003). This shows that management solutions can only b successful if it considers the cultural differences in the societies.
Global projects are the efforts that are undertaken temporarily in order to create services, products and unique results. The features are temporary because different projects have different beginnings and different endings. Global and domestic projects are common when related to the temporality of uniqueness, effort and progressiveness. The difference is that domestic projects occur locally while global occurs locally. Global or team projects can be defined as temporary organizations that are designed to achieve common goal and whose outcome emanates from horizontal cooperation (Chevrier, 2003). Domestic and global projects can also be differentiated basing on the location of the stakeholders and it is only through systematic analysis of the stakeholders that will reveal if a project will, be treated as international r multinational (Gareis, 2006).
Cultural distance between countries
Cultural distance is the sum of factors such as education, legal, difference in language and business and cultural practices that interferes with the flow of information from one market to the other. Another definition is that cultural distance is the degree to which an organization or a firm is uncertain the characteristics of an international market (Kogut and Sigh, 2008).
Managing Global Teams
In human resource management context, there is a relative consensus that has to be developed. From a tactical view, managers are expected to play the role of recruitment, development, selection, evaluation and compensation so as to exploit the effect of people management practices on individuals (Bareto, 2011). The difference in the employment of those who are responsible for firm’s operations and employment of workers of different national categories is what brings the difference between human resource management and international management. One is done within the context of a country while the other one is carried out amongst countries. The best way that can be used to manage the differences between the countries is through adaptation of organizational policies for various national contexts. People management policies must also be flexible so as to be able to deal with the differences. This therefore indicates that there is a great need for the study of cultural differences and demography (Nishil & Ozbilgin, 2007). The manager has the following responsibilities: human resource planning where he or she is responsible for identifying, relating and measuring the needs of skilled manpower for the project during its time of execution. Another responsibility is mobilization of a project team. This is where the manager locates the workforce required for execution of a project. The third responsibility is development of a project team where he or she offers training o improve interactions and skills. Finally, the manager has the mandate of managing the project team that he or she has chosen and trained. This involves controlling their quality of work and monitoring their behavior. Appointment of different persons to global projects has strategic importance and can influence the ability of the fir to retain their talent. Firms should allocate people based on previous assessment that considers the availability and development needs, international experience and knowledge. The management should also consider timing of projects a very important issue for the sake of management of both domestic and global teams. When a new projected is initiated, configuration of the human resource that an organization has must be adopted. Lack of continuity can make planning of human resources complex because it involves repatriation and expatriation of professionals in a short period of time. Performance of a team can be improved and performance even becomes higher when the members of these teams have become accustomed to develop and collaborate strategies in order to overcome linguistic barriers and cultural barriers. The manager therefore has to develop teams so as to attain good performance as soon as possible (Human et al, 2007).
There are a number of recommendations for the process of development of global teams through the lifecycle of a project. When the project is being incepted, the manager has a responsibility of seeking the involvement of staff in the beginning so as to create a suitable environment for the project performance because people will feel committed to the outcome that is yet to be witnessed. It is important that leadership is carefully defined in the organization and allocation of teams. This is because the creditability of the team leader with stakeholders and management is crucial for the management and integration of techniques and skills of various responsibilities. High performance image of an organization is very important and requires the support of the organization, a system of reward and project visibility for team members to attract skilled and qualified professionals. Team development is also important to be carried out throughout the project. The development here includes exchange of skills, brainstorming. This will create a conducive atmosphere for discussions of the needs of the project.
Cultural Impacts
The cultural dimensions have important implications for the management of global teams. Preferences and motivations of a certain global team can be identified through the analysis of the cultural differences management. The dimension of individualism and hierarchical distance are very significant to realizing how firms run in different parts of the world with regard to project management, establishes the following aspects. In case of individualism, the author says that in project it is common for the task come before intercourse. Basing on hierarchical distance, projects are generally smaller structures within larger structures. This is not the main criteria for decisions making. Most of the team members have two bosses; project manager and the functional leader. It is therefore, necessary for people to have tolerance in order to be able to resolve conflicts, and not focusing on the hierarchy of the projects but rather its interests. Companies that rely on lower hierarchical distance organize their projects informally while those with high hierarchy need to define relations. The risk tolerance makes contacting and supplies management to be based more on partnership while on the other hand, risk aversion demands formal relation that is based on rules to be adhered to. When seeking results that are oriented on results, low control uncertainty is appropriate. This is where the leader is the facilitator and promotes open learning process and establishes minimum standards. High control of uncertainty is indicated in a situation where there is need for security. Femininity gain importance in relation to performance of the teams in this situation. The study also established that projects with members that have more homogenous cultural characteristics; there is a higher probability of success. This ...