final exam big assignment international project management

Course Name : International Project Management

(Quan tri dự án quốc tế)

Course Code : INE3009 Class Code : INE3009-01

Submitted by : Group 2 Submission date : June 4, 2024

Assignment Cover Sheet

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Part |: Introduction

1.1 Case Synopsis

Figure 1: Case summary map

Multicultural working context

Tang ———————————› Chen ———_—————- LL

information transfer information transfer

Summarize the case from the concept map

Charles Tang, anewly appointed manager at Intel's China operations, ran into conflict with one of his account managers, Yong Li, after canceling a project Li had been working on at the directive of his previous supervisor This cancellation decision was communicated indirectly through Chen (Yong Li's direct supervisor) As for Tang, he felt the scope of the project had expanded too far beyond Li's original purpose and expertise As for Li, he reacted extremely negatively, feeling his efforts were disrespected and wasted The consequence of this case study is internal conflict and Tang does not know what he should do next

1.2 Problem Formulation

The communication breakdown and the clash of cultural values and expectations created misunderstandings and tensions between the manager - Tang and the employee - Li in this cross-cultural business setting Tang made the unilateral decision to cancel Li's project without properly explaining his rationale or seeking input from Li, resulting in a lack of open

communication that caused frustration for Li Additionally, there were cultural differences as

Li felt Tang's actions caused him to "lose face", an extremely important concept in Chinese business relationships related to respect and status, which Tang did not appear to fully grasp, displaying a lack of cross-cultural awareness and sensitivity to local cultural norms It can be seen that the consequences of internal conflicts stem from two main issues: communication conflicts and cultural conflicts

Part Il: Case Critical Analysis

Many studies have shown that communication and cultural conflicts are significant problems faced by multinational organizations Hofstede (1980) emphasized how cultural dimensions

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influence workplace dynamics, with varying attitudes toward hierarchy, uncertainty, and individualism affecting communication styles and expectations Besides, Thomas and Peterson (2017) pointed out that inconsistent cultural norms may lead to misunderstanding and conflicts Furthermore, “Many firms underestimate the complexities involved in international operations,

and there has been consistent evidence to suggest that business failures in the international arene are often linked to poor management of human resources” Paul Dowling (2008) mentioned, which suggested that one of the biggest challenges faced by multinational organizations is how expatriate managers can quickly adapt to new cultural environments Therefore, it can be realized that cultural differences will have a far-reaching impact on workplace communication, leading to conflicts between expatriate managers and local employees, thereby declining efficient performance in organizations

Moreover, a study by Nunes, Felix, and Prates (2017) concludes that expatriates must have good cross-cultural adaptability, which enables them to adapt to and reconcile the different cultural expectations of local employees and company headquarters (Black, J S., Gregersen, H

B., & Mendenhall, M E., 1992), from which conflicts between expatriate managers and local

employees can be minimized to the greatest extent possible

Therefore, based on the previous research results, the effective management of multinational

organizations needs to identify the root causes of conflicts In the case of an expatriate manager Tang and a local employee Li, it is obvious that there are conflicts in culture and communication So, we will proceed to raise investigative questions (mentioned below) and analyze important cases

1 What are the triggers that lead to communication conflicts and cultural conflicts? 2 What are the solutions for expatriate managers to manage local employees? 2.1 Critical Literature Analysis

2.1.1 Communication Conflict

Conflict is a process of social interaction and a social situation, where the interests and

activities of participants (individuals or groups) actually, or apparently, confront, block, and disable the realization of one party's objectives Jambrek, Peni¢, 2008)

Communication: Communication is the process by which individuals stimulate meaning in

the minds of other individuals by means of messages, verbal, or nonverbal (VViener, M., & Mehrabian, A., 1968)

Communication Conflict occurs, as actors engage in activities that are incompatible with

those of colleagues within their network, members of other organizations, or unaffiliated

individuals who utilize the services or products of the organization(Rahim, 2002)

The communication conflicts between foreign managers and local employees of subsidiaries located in non-native countries (i.e parent company languages) stem from three different sources - language barriers (Anne Vil Harzing, Alan J Feely, 2008), different cultural backgrounds (Kim, 1984), and nationalism (Almaney, 1974; Dodd, 1987).

Language barriers

The study of cross-cultural communication has identified the negative effects of limited language skills A scholar once spoke specifying: " in international business, the most common factor that hinders effective communication between different cultures is language differences "In fact, cross-cultural communication usually involves misunderstandings caused by language and other obstacles (Usunier, 1998) The greater the difference between

the two cultures, the greater the need for members of these cultures to understand each other,

thus increasing the risk of communication problems (Hall, 1960) Especially for overseas managers working in the local environment, even though these managers are relatively good at using the local language, they often lack rhetorical skills such as humor, symbolism, sensitivity, negotiation, persuasion and encouragement, which require high language skills These skills are more important in management positions than in operation positions The result of losing rhetorical skills is easy to misunderstand, leading to uncertainty and anxiety (Gudykunst,1995) Similar findings have been made in internationalization studies, which show that language differences will disrupt the information flow of multinational companies (Johnson & Vahine, 1993)

Different cultural backgrounds:

Cultural influences related to personal experience will shape the way communicators

perceive, think, and use verbal or nonverbal information (Covarrubias, P O.,&Kirschbaum,

A., 2017) Managers in China are always careful not to embarrass their subordinates The general theme of "saving face" can play an important role in influencing behavior and communication methods to avoid confusion In Chinese culture, saving face is a very important cultural topic Anything that threatens or damages face, whether it is comments or

actions, or even someone's actions, will be respected With this cultural feature, managers in

China avoid criticism and praise excessively when criticizing the deadline, and pay more attention to the form and appearance, rather than the basic content or reality (high, g Authors: Ting-Toomey, S., 1998) In contrast, American managers usually solve problems directly, quickly and decisively Therefore, when local workers interact with American managers, they may feel too outspoken or openly oppose other people's opinions, which may be considered rude, because a key issue in the treatment of workers in China is the concept of “face” (El Kahal, 2001) In the business culture of China people, the meaning of "face" has a strong influence on them (Wah, 2001)

An important factor of effective cross-cultural communication is the ability to express empathy (Barna, 19832) In addition, the expected degree of empathy in communication is

limited by culture (Lori¢, A Reinero, D A Phillips, m Zhang, | ,& Riess, H., 2017) For

example, members with a high background, such as China, spend more time together, live together, think together, and make decisions together (Bi, C., 2012) Therefore, they expect to get more empathy from others Studies have found that China officials expect their leaders to be compassionate and kind, abide by the role of Confucian parents, and make correct moral judgments, such as self-restraint, honesty, reliability and selflessness to colleagues and subordinates (Littrell,R F., 2002) However, when these people interact with managers

with low cultural backgrounds such as the United States, communication is broken, and they

give and expect little sympathy.

Ethnocentrism

In addition to the problems caused by cultural differences, internal communication conflicts may develop in overseas subsidiaries, because outsiders (such as American managers) and cultural groups (such as local employees in China) cooperate with nationalism Studies have shown that racism is the main obstacle to effective empathy in cross-cultural communication, which may not only lead to the complete collapse of communication but also lead to

confrontation and even hostility (Almaney,1974) Dodd, 1987; Porter and Samova, 1976,

Samovar and his colleagues, 1981) The communication problem of managing multinational companies will not be guaranteed, because participants can't overcome racism (that is,

conscious or subconscious beliefs), that is, their culture is superior to other cultures 2.1.2 Cultural Conflict

F ì rta y Terr

Figure 2: Hofstede of China and America (Source: Country comparison tool)

Recent trends such as the globalization of business, increasing diversity in alliances and growing international mergers, highlight the need to consider the impact of international

contexts and cultural environments socialization to internal work culture (Adler, 1983; Hofstede 1997; Maddox, 1993) Therefore, | compared cultural dimensions according to

Hofstede's theory to determine the cause of cultural conflicts in a multinational work

environment Based on the situation in the case and model above, we find that there are

significant differences between American and Chinese cultures in the following aspects: Individualism and Collectivism and Long-term orientation This great disparity is a major cause of cultural conflict because these cultural dimensions reflect values that may be basic and obvious in a culture, but are questionable or even reprehensible in other cultures (Hofstede (1980)

Individualism and collectivism are usually used to realize the environmental impact on cultural values and norms (Triandis,1989), political impact (Keping,1995), family relationships (Greenhalgh,1994), and social relationships (Asendorpf, J B and Wilpers, S.) people from different cultural backgrounds (1998) People with a high collective tendency to work for the team rather than for their own personal interests Family relations are very important in families and groups, and decisions are made with the participation of

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family or group members People who have a collective view of themselves usually show their adherence to social or group norms People with a high collective tendency like to cooperate with others and believe that cooperation is the best way to achieve their goals For them, personal problems are usually related to friends or members of a specific group In short, any behavior of individuals in a group will affect the group (Triandis et al., 1990) East Asian culture tends to be highly collectivist, especially China is based on the collective political system (Keping, 1995) Contrary to collectivism, individualism exists in Western culture Typically, the United States is related to self-reliance and working to meet personal needs and interests People with high personal inclination try to achieve Excellence and personal status (Asendorff, J B and Wilpers, S (1998) Tasks are usually performed by individuals who are responsible for their actions Individualists usually find value and self- esteem through self-realization or self-awareness to develop to their highest level (Triandis et al., 1989) Democracy is usually associated with individualism, emphasizing meeting individual needs and protecting individual rights through laws (Triandis, 1989) Therefore, when solving problems, they have greater self-awareness, pay less attention to others and

each other's faces, use more powerful measures to solve their faces, and use less avoidance

and integration measures than members of large-scale collective culture Studies have

proved the difference between individual-collectivism and global self-esteem, that is,

collective culture promotes the development of self-esteem and personal culture promotes the development of self-confidence of self-esteem (Tafarodi and Swann,1996)

Long-term orientation: Culture influences social institutions, values, and beliefs, thereby

reinforcing the most appropriate behavioral norms for a particular group of people (Swidler, A., 1986) A striking sign of Eastern corporate culture is that they often avoid major changes in both the total workforce and the senior management team (Hofstede, G.,

Neuijen, B., Ohayv, D.D., & Sanders, G., 1990) The Chinese believe that the knowledge

and experience of senior managers and the workforce are considered valuable assets, difficult to replace or replicate

2.2 Critical Case Study Analysis

2.2.1 Communication conflict

a Unfair Internal Communication Structures

One-way Communication and Its Consequences

At Intel China, the decision-making process appeared to be heavily top-down, with managers making decisions and communicating them to employees without sufficient consultation or feedback mechanisms This one-way communication structure was evident when Charles Tang decided to cancel Yong Li’s project Tang based his decision on sound business logic, believing that Li's project was overly ambitious and beyond Li's expertise However, this decision was made without engaging Li in a meaningful dialogue or considering his perspective and emotional investment in the project

Li had invested two months of work into the project, transforming it from a simple manual into a comprehensive "portable MBA-type book." When Tang decided to cancel the project abruptly, without discussing the reasons with Li or acknowledging his efforts, Li felt his work was devalued and wasted This unilateral decision-making process created a sense of

exclusion and disrespect for Li, who felt his contributions were not valued.

The absence of upward communication - where employees can provide feedback, voice concerns, and participate in decision-making - further exacerbated the situation Li's frustration and resistance were amplified by his perception that Tang did not respect his work or include him in the decision-making process Li’s reaction, feeling that his efforts were unappreciated and that his professional identity was undermined, illustrates the negative impact of one-way communication

Encoding and Decoding Failures

In the context of communication, encoding refers to how the message is formulated by the sender, while decoding is how the receiver interprets it Tang's decision was encoded with business logic and efficiency in mind, aiming to reallocate resources and refocus efforts on more feasible projects However, this message was not effectively decoded by Li, who saw it as an arbitrary and disrespectful dismissal of his hard work

Body Language Physical Appearance

(except virtual)

Ho Tone Rhythm Rhythm Volume Volume

Distance elle Rituals 00c) Deferential or Deferential or

Solidarity SG Solidarity

Figure 3: Communications model (Source: Lecture’s slide)

e Encoding: Tang's decision was encoded with a focus on the source (management), style (direct and business-oriented), and content (canceling the project due to feasibility concerns)

e Transmission: The message was transmitted top-down without engaging Li in a discussion or providing a platform for him to express his views

e Receiving: Li received the message with a significant emotional impact, feeling excluded and disrespected

e Decoding: Li's interpretation of the message was that Tang did not value his contributions or respect his efforts, leading to strong resistance and emotional distress Lack of Empathy and Upward Communication

The imbalance in the communication structure also reflected a lack of empathy in Tang's approach Effective communication in an organizational setting requires understanding and

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addressing the emotional and professional needs of employees Tang’s failure to engage Li in dialogue and acknowledge his efforts demonstrated a lack of consideration for Li's feelings and contributions Empathy, as a multidimensional construct encompassing

cognitive, affective, and behavioral dimensions, is a critical predictor of prosocial behavior

and workplace effectiveness (Clark et al., 2019)

In high-context cultures like China, where maintaining face and relational harmony are critical, Tang’s direct and unilateral communication style was particularly problematic Li's strong emotional response, feeling that he had lost face and that his work was disregarded, highlights the cultural dimension of this communication failure If Tang had engaged in upward communication, soliciting Li's input and discussing the rationale behind his decision, the conflict might have been mitigated

b Different Cultural Backgrounds Low-context vs High-context Cultures

In low-context cultures, such as the United States, communication tends to be direct and

explicit, focusing on efficiency and clarity in conveying messages (Hammami etal., 2014) Tang, with his extensive experience and education in the West, likely adopted a straightforward approach to communication and decision-making This is evident when Tang made the decision to discontinue Li's project based on what he considered sound business logic without prior consultation or explanation to Li Tang's approach reflects the typical Western management style that values efficiency and clear directives

However, in high-context cultures like China, communication is more indirect, and much

of the message is conveyed through context, non-verbal cues, and the relationship between the parties Maintaining ‘face’ - a person's dignity and prestige - is crucial The sudden cancellation of Li’s project without a face-saving measure was perceived by Li as a significant loss of face and a personal affront Li's reaction, feeling that his efforts were unappreciated and his status disrespected, underscores the importance of these cultural

norms He expressed that his two months of dedicated work had been "wasted," and he felt

undermined by Tang's unilateral decision, which he perceived as typical of foreign managers who do not respect local employees

Empathy in Communication

Empathy in communication is crucial in high-context and collectivist cultures There is an expectation for managers to demonstrate understanding and consideration of their employees’ feelings and perspectives Tang's lack of empathetic engagement with Li—not discussing the reasons for the project's cancellation beforehand or acknowledging Li's efforts—intensified the conflict Li's perception that Tang had not only dismissed his project but also his value and contributions to the team, exemplifies the cultural disconnect

In collectivist cultures, empathy is not only vital for interpersonal relationships but also for conflict resolution and promoting prosocial behaviors Empathy aids individuals in navigating social interactions, fostering understanding, and engaging in compassionate acts (Klimecki, 2019)

Tang’s failure to appreciate the cultural importance of 'face' and the need for a more nuanced, empathetic approach to communication resulted in a breakdown of trust and respect In Chinese culture, where face is paramount, Tang's direct and unempathetic

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