Wednesday, October 14, 2015

Cultural diversity in global teams: A wake-up call for AEC

The 21st century is the time of globalization. Boundaries are disappearing among companies, industries, and countries, and competitive pressures simply cannot be ignored. Work teams consisting of people with different cultural backgrounds separated through space and time are one of the critical success factors for the development of companies, whether small or big. Thus, managing cultural diversity is important for them to operate successfully.

The Association of Southeast Asian Nations Economic Community (AEC) is supposed to boost regional trade and production that will deliver free movement of goods, services, skilled labor, and capital in one of the most diverse and fast-moving regions in the world.

As a result of joint ventures, strategic alliances, mergers, and acquisitions, global teams within the AEC are being and will continue to be created. These teams are increasingly becoming “multicultural” so that members of different nationalities have to learn how to work together effectively and efficiently on common projects at different times and in different locations.

Unfortunately, most global teams, whether within or outside of the AEC, are ineffective and still far from delivering the competitive advantage needed to sustain a company’s global capability.

Some cases are in point: first, cultural issues are mostly ignored or at least not valued sufficiently by management. Management guru Geert Hofstede, who studied the value dimensions of cultural differences, concluded that different cultures create differences among team members. The value dimensions of high power distance vs. low power distance, individualism vs. collectivism, masculinity vs. femininity, high vs. low uncertainty avoidance, and long-term vs. short-term orientation, if not managed accurately, can prevent a team from operating successfully.

Second, geographic distance seems to be a major difficulty to overcome despite great progress in communication technology.

Some cultures (particularly Asian cultures) still rely on face-to-face meetings, which involve intensive personal contact to enhance relationships and build trust. Then there are communication styles (i.e., verbal vs. nonverbal, direct vs. indirect, low context vs. high context) that differ among cultures.

A project’s success highly depends on the constant and unhampered flow of communication among team members.

Moreover, problem-solving over distance is critical to global teamwork, and discussions across countries and continents often consume a lot of time.

Third, there’s the work variety of team members. Very frequently, most, if not all, team members work on other projects in their home country. It is almost impossible for them to integrate all their tasks to achieve a balance between their home-country and global-team obligations. This balancing act creates coordination and control issues, which are tough to handle in global teams.

Last, creating a team spirit remains a challenge for global teams.

Large geographic distances make it difficult for team members to build camaraderie. Some cultures, especially the highly individualistic ones, do not usually resort to teamwork in solving problems. They may not have enough experience, and they may think differently about working with people of other nationalities.

People from different cultural backgrounds think differently -- not better; just differently. And different ways of thinking put fresh perspectives on tasks and problems.

The range of available alternatives to solve problems and complete missions becomes enormous.

Whether we’re talking about a meeting held in Bangkok, a project site visit in Jakarta, video conferencing in Singapore, or an inspection in Manila, cultural diversity among global teams has become a reality and therefore must be recognized, understood, and respected throughout the organization.

Beatriz KaamiƱo-Tschoepke teaches Organizational Behavior and Human Resource Management at the Ramon V. Del Rosario College of Business of De La Salle University. She is a professional intercultural trainer and consultant in international business, intercultural management, and communication.

cibmworks@gmail.com


source:  Businessworld

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