report cross cultural management the challenge of multicultural work

TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION DIVISION OF DEPARTMENT OF ECONOMICS DAI HOC TON DUC THANG TON DUC THANG UNIVERSITY REPORT CROSS-CULTURAL MANAGEMENT The

TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION DIVISION OF DEPARTMENT OF ECONOMICS

DAI HOC TON DUC THANG

TON DUC THANG UNIVERSITY

REPORT

CROSS-CULTURAL MANAGEMENT

The Challenge of Multicultural Work

Groups and Teams

Group: 08 FOR EXAMINERS ONLY

Semester: | Grade (in number):

Academic year: 2023 -2024

Lecturer: Tran Thi Van Trang Grade (in words)

Submission Date: December 2023

Examiner | (Signature & Full name) Examiner 2 (Signature & Full name)

TON DUC THANG UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION DIVISION OF DEPARTMENT OF ECONOMICS

DAI HOC TON DUC THANG

REPORT

CROSS-CULTURAL MANAGEMENT

The Challenge of Multicultural Work

Groups and Teams

No Student’s Full Name Student ID

HO CHI MINH CITY, 2023 TABLE OE CONTENT

ACKNOWLEDGEMENT

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ACKNOWLEDGEMENT

First and foremost, we would like to express our sincere gratitude to our advisor, Lecturer Ms Tran Thi Van Trang, for her invaluable guidance, feedback, and support throughout the process of researching and writing this report Their

extensive expertise in the field of organizational behavior greatly informed our analysis of the dynamics of diverse work groups

We would also like to thank our classmates Mr Dong Quan and Mr Cong Khoi for their collaboration during group discussions and activities which provided

meaningful perspectives on the topic

In addition, we deeply appreciate the various scholars and academics whose high- quality research we extensively referenced and built upon in reviewing models of work group effectiveness and formulating recommendations for optimization This report would not have been possible without the foundational contributions of thought leaders in this domain

Finally, we are grateful to the department faculty and administration for providing

us with the resources, environment, and network to thoroughly examine this

multifaceted area of study The opportunity to produce this synthesized report has expanded our cross-cultural competence that we are certain will serve us well in our future career

INTRODUCTION

Cultural diversity in work groups is becoming increasingly common in today's globalized world As organizations expand their operations internationally, they are relying more on multicultural teams and work groups to drive innovation and achieve strategic objectives However, cultural differences can pose unique

challenges for collaboration, communication, and overall group effectiveness if not managed properly

This report provides an in-depth analysis of the dynamics of culturally diverse work groups and strategies for optimizing their performance It begins by defining work groups and discussing models of group effectiveness, highlighting six key sets of variables that influence group processes and outcomes The report then examines how cultural norms, diversity, and distance shape group interactions and

productivity

Additionally, the report explores the functioning and management of global virtual teams that rely heavily on information technology while confronting issues like relationship building, conflict resolution, and task coordination across cultural and geographic boundaries It also analyzes how specific aspects of an organization's context such as management support, training, and rewards impact multicultural group effectiveness

Finally, the report proposes best practices for managing diverse groups in areas like communication, structure, evaluation methods, composition, and reinforcement of common purpose and values With culturally sensitive goal-setting, flexibility in working styles, inclusive performance metrics, and team-building initiatives, organizations can fully leverage the innovative potential of multicultural work groups

In summary, this report provides a comprehensive review of current research on the opportunities and challenges presented by cultural diversity in work groups along with actionable strategies for optimizing diverse group processes and outcomes within a complex organizational reality The insights can help guide decisions regarding group composition, task design, leadership approaches, training

programs, and more to improve collaboration, innovation, and productivity

1 WORK GROUP

A work group typically refers to a collection of individuals who come together to accomplish a shared task or goal within an organization or project Members of a work group usually collaborate and coordinate their efforts to achieve specific objectives The key characteristics of a work group include: Common Purpose, Interdependence, Interaction, Structure, Mutual Accountability, Limited Duration Common Identity Work groups are common in various organizational settings, and they play a crucial role in achieving specific objectives efficiently through collaboration and joint effort It's important to note that the term "work group" is sometimes used interchangeably with other terms such as "team" or "task force," but the nuances of their definitions may vary depending on context

2 WORK GROUP EFFECTIVENESS

The effectiveness of a work group depends on how well the group uses its resources

to accomplish its task However, not all organizational tasks have clear best answers The long-term effectiveness of a work group might not be assessed accurately by considering only how it is performing at a single point in time So that

a broader definition of work group effectiveness is needed to portray whether a work group is functioning well First, the output of the group must meet the quantity, quality, and timeliness standards of the organization Second, the processes employed by the group should enhance the ability of the group members

to work together Finally, the group experience should contribute to the growth and personal well-being of the group members

To understand the implications of culture for group effectiveness, it is first necessary to identify the underlying dynamics of work groups Group dynamics are complex, and research has produced a number of group process models The model identifies stx sets of variables that influence the process and performance of work

groups

Group r> Member ——¬

Resources

Performance

F

External Group Group Conditions Task Process

a = Process

Outcomes Group |_|

Structure

SOURCE: Based on Goodman, Ravlin, & Schminke (1987) and Helmreich & Schaefer (1994)

2.1 External or Contextual Conditions

These factors encompass the external.environment in which the group operates It includes the organization's culture, the industry norms, societal influences, economic conditions, and any other external factors that impact the group's functioning

2,2 Resources of Group Members

The skills, expertise, knowledge, and capabilities of individual group members play

a significant role in determining the group's effectiveness Diversity in skills and experiences can contribute to a more robust resource pool for problem-solving and innovation

2.3 Structure of the Group

The way the group is organized and structured affects how members interact and collaborate This involves aspects like the leadership style, communication channels, decision-making processes, and roles within the group

2.4 Group Task

The nature and complexity of the task assigned to the group greatly influence its dynamics Clear and well-defined goals, as well as a shared understanding of the task, are crucial for the group to work cohesively toward achieving objectives

2.5 Group Process This set of variables focuses on how the group interacts, communicates, resolves conflicts, and makes decisions The dynamics of relationships, cohesion among

members, norms, and the group's ability to manage conflicts and achieve consensus fall under this category

2.6 Composition of the Group

The mix of individuals in terms of demographics, skills, personalities, and roles shapes the group's dynamics A balanced and diverse composition can enhance creativity and problem-solving, while a lack of diversity might lead to groupthink or limited perspectives

This model highlights the interplay and interdependence of these six sets of variables, emphasizing that successful group performance is contingent on a combination of these factors Moreover, it underscores the complexity of group dynamics and the need for a holistic approach in analyzing and enhancing group effectiveness By understanding and optimizing these variables, organizations can better support and empower their work groups to achieve optimal performance

3 CULTURE’S INFLUNCE ON WORK GROUP

The general model of work group functioning described in this chapter makes it possible to examine the way in which culture influences work group processes and outcomes While this influence is perhaps most apparent in the cultural composition

of the work group, the organizational context in which the group functions, the work group structure, and the task in which the group is involved also influence how much cultural differences affect the work group The cultural backgrounds of a work group’s members affect the way they function through three general types of mechanisms:

® Cultural norms: the orientations of the specific cultures represented in the group toward the functioning of groups

© Cultural diversity: the number of different cultures represented in the group

® Relative cultural distance: the extent to which group members are culturally different from each other

3.1 Cultural Norms Cultural norms refer to the shared values, beliefs, and behaviors within a group or society When individuals from diverse cultural backgrounds come together in work groups, their respective cultural norms influence how they perceive and approach tasks, communicate, make decisions, and handle conflicts

Impact on Group Dynamics: Cultural norms shape group dynamics by influencing communication styles, decision-making processes, and conflict resolution methods For example, in some cultures, direct communication is encouraged, while in others,

indirect communication may be preferred These differences can affect how well group members understand each other and collaborate effectively

3.2 Cultural Diversity Variety of Perspectives and Approaches: Cultural diversity in work groups brings together individuals with different cultural backgrounds, experiences, and viewpoints This diversity can be a significant asset as it introduces a wide range of perspectives, problem-solving approaches, and innovative ideas

Challenges and Benefits: While cultural diversity offers numerous benefits, it can also pose challenges such as language barriers, misunderstandings due to differing communication styles, and potential conflicts arising from contrasting cultural norms However, effectively managed, diverse groups can outperform homogeneous groups due to their richness in perspectives and creativity

3.3 Relative Cultural Distance

Degree of Difference Between Cultures: Cultural distance refers to the extent of dissimilarity between two or more cultures When work groups comprise individuals from cultures with significant differences, there might be a higher cultural distance This distance can affect the ease of communication, understanding, and collaboration among group members

Impact on Collaboration and Performance: Greater cultural distance might lead to misunderstandings, misinterpretations, and difficulties in finding common ground Bridging this distance requires efforts to foster understanding, respect, and open- mindedness among group members, which, when achieved, can enhance collaboration and overall group performance

4 GLOBAL VIRTUAL TEAMS

Global Virtual Teams constitute work teams comprising members from diverse cultural backgrounds and geographical locations, employing information and communication technologies for seamless communication and collaboration These teams confront four primary challenges, namely communication, coordination, trust, and conflict resolution Furthermore, the authors proffer strategic interventions aimed at ameliorating these challenges, thereby enhancing the overall performance and outcomes of Global Virtual Teams

4.1 Communication

Effective communication within Global Virtual Teams 1s inherently challenging due

to the need to navigate linguistic, cultural, and technological impediments, all of which can significantly impact both the quality and quantity of information

exchanged among team members Instances of disparate language proficiency, divergent modes of message expression and interpretation, as well as varying access

to and preferences for information and communication technologies contribute to potential misunderstandings, confusion, and overall communication breakdowns, thereby diminishing team effectiveness and efficiency To mitigate these challenges, several strategies prove instrumental:

¢ Utilizing a universally comprehensible common language while providing explicit instructions, expectations, and feedback

e Steering clear of jargon, slang, idioms, or humor that might not be universally understood or appreciated, and instead employing straightforward language, examples, and clarifications

® Leveraging a diverse array of communication channels and media, including email, phone, video, chat, and social media, tailored to distinct purposes, frequencies, and intensities, and adaptable to varied situations, preferences, and needs

® Consistently offering timely feedback, acknowledgment, and appreciation to team members, coupled with the assurance of mutual understanding through active inquiry, summarization, or paraphrasing

4.2 Relationship Building and Conflict Management

Establishing and maintaining trust emerges as a pivotal challenge for Global Virtual Teams, necessitating the cultivation of confidence, reliability, and goodwill among team members who encounter limited or absent face-to-face interactions The inherent diversity in cultural values, expectations, and behaviors among team members may lead to disparate levels of trustworthiness, dependability, and reciprocity, thereby impacting the willingness and capacity of team members to collaborate, share, and support one another These divergences can precipitate distrust, suspicion, or resentment, ultimately diminishing team commitment and satisfaction

¢ Employing a discerning criterion in the selection of team members characterized by elevated cultural intelligence, a proclivity for diversity orientation, and a proficiency in virtual competence, coupled with a demonstrated willingness and capacity to effectively operate within a multicultural and virtual milieu

¢ Implementing a comprehensive program of training and orientation designed

to acquaint team members with the overarching purpose of the team, specific tasks at hand, contextual parameters, fellow members, and the requisite information and communication technologies and tools integral to the team's operational framework