Respond to the 3 following discussion posts separately with separate reference lists.
1. [Julianna Mimande] According to Molinsky & Hahn (2016) building trust between cross-cultural teams is the most important factor contributing to success. Challenges created by cultural misunderstandings, differing perspectives, and physical distances are more likely to be remedied if a foundation of trust exists between the group. Deeper understandings of individual and differing backgrounds, empathy, and finding commonalities contributes to trust and therefore Human Resource (HR) managers must devise training and team building activities to support this (Vanhoegaerden, 2021).
Managing projects that cross-cultural boundaries presents a variety of challenges that must be considered before any expansion project. Communication is often considered one of the most important variables contributing to organizational success and cross-cultural communication challenges stemming from different attitudes towards conflict, decision-making styles, disclosure, and communication styles can lead to irreparable issues (DuPraw & Axner, 1997).
Multinational organizations are more prominent now than ever before because of globalization. Companies have had to evolve best practices that address some of the issues that arise when managing cross-cultural teams. Conquering the challenges with physical distance is one key practice when managing successful cross-cultural teams according to Black et. al (2019). This is a necessary first step towards overcoming less tangible challenges, like cultural differences. Beyond that, managers must encourage diversity and inclusivity training from the beginning to establish its importance within the group (How to manage multicultural teams, 2021).
References
Black, S., Gardner, D. G., Pierce, J. L., & Steers, R. (2019, February 27). Multicultural teams. Organizational Behavior. Retrieved May 27, 2022, from https://opentextbc.ca/organizationalbehavioropenstax/chapter/multicultural-teams/
DuPraw , M., & Axner, M. (1997). AMPU Guide: Common cross-cultural communication challenges. PBS. Retrieved May 27, 2022, from https://www.pbs.org/ampu/crosscult.html
How to manage multicultural teams: Effective leadership in the Workplace. EDHEC Business School. (2021, August 18). Retrieved May 27, 2022, from https://www.edhec.edu/en/news/how-manage-multicultural-teams-effective-leadership-workplace
Molinsky, A., & Hahn, M. (2016, August 31). How to build trust on your Cross-Cultural Team. Harvard Business Review. Retrieved May 27, 2022, from https://hbr.org/2016/06/how-to-build-trust-on-your-cross-cultural-team
Vanhoegaerden, J. (2021, October 6). How to build stronger cross-cultural teams. Hult International Business School. Retrieved May 27, 2022, from https://www.hult.edu/blog/working-in-cross-cultural-teams/
2. [Valerie Hubis] Cross-cultural Team Formation
Building an excellent team to deliver on the goals for some companies requires a lot of attention to the dynamics involved. Companies with a customer base in various parts globally require the integration of all cultures for them to remain competitive. To build a cross-cultural team, the management must respect and acknowledge the cultural differences. This fact is the first step and helps appreciate diversity and thereby treat everyone equally. From here, the management should formulate the norms that will guide the individuals involved in collaboration with other members (Hankimaa, 2021). What’s more, building trust and a good rapport are vital, because of seamless communication, and the development of team identity.
Management of projects crossing cultural boundaries often proves to be very challenging. There are challenges because of the language barrier and differences in communication styles. More than that, different cultures approach tasks from different dimensions. An example is that some cultures like to build a good relationship before a project starts. By contrast, others choose to work. Then, once that’s done, they make connections based on satisfaction. Managers are also challenged by culturally different attitudes, as they manage emotions differently (Kozien, 2021). Cultures also have different decision-making styles, with some encouraging consultation before making decisions while others aren’t for consultation. These are some of the challenges that a manager will mostly face when associating or interacting with different cultures.
Managers can, however, deploy various strategies to address challenges emanating from cultural differences. The first one is embracing teamwork and collaboration between the players involved. This idea will build understanding and appreciation of one another’s capabilities. The other strategy is ensuring the use of some common language known by every member involved (Rajpal & Onyusheva, 2018). This idea will enable the flow of information without discrimination. Managers can also accommodate religious differences to make each member feel comfortable and needed. Cultural integration is a sensitive issue, and so managers can deploy the above strategies to reduce conflicts resulting from cultural differences.
References
Hankimaa, A. (2021). Building trust in cross-cultural relationships: Active trust through culture mobilization in Finnish-Indian project teams (Doctoral dissertation, University of Westminster).
Kozien, A. (2021). Contemporary challenges of cultural heritage management by public and private entities. Economic and Social Development: Book of Proceedings, 144-154.
Rajpal, S., & Onyusheva, I. (2018). Managing Cross-Cultural Differences In Multinational Corporations Of Thailand. The Europeans: journal on global socio-economic dynamics, (3 (10)), 61-72.
3. [Allan Roy Mordeno] Case Discussion on Giant Bicycles
Globalization refers to the increasing interconnectedness of the world’s economies, cultures, and inhabitants, as a result of cross-border trading of products, services, and technology, including flows of capital, people, and information (PIIE, 2021). According to Knipfer (2018), inter-firm collaboration has become a crucial vehicle for corporate expansion, market access, and knowledge transfer during the past couple of decades. This case study examines Giant Bicycles’ evolution as they entered original equipment manufacturer (OEM) agreements that enabled them to modernize their technology, eventually growing their business from OEM supplier to industry leader.
Giant Bicycle was formed in 1972 as a modest family business in central Taiwan. After forty years, it has become one of the world’s major bicycle suppliers, with a 54 billion dollar global business volume (Wu & Lee, 2014). It has 12,000 retail partners worldwide and multiple design accolades (Wu & Lee, 2014). The company also mastered production procedures through OEM collaboration, then created its core capability and competitive advantages. Strategic connections and worldwide arrangements helped Giant build its core competence (Wu & Lee, 2014). This analysis reveals that the subject company built its key capabilities by combining available resources and common international arrangements.
Building a Cross-Cultural Team
The case study provided the most important lesson that understanding the influence of globalization on cross-cultural communication is crucial for firms seeking competitiveness in the global marketplace (Matthews & Thakkar, 2012). In the case of Giant Bicycle, it rebuilt the worldwide market’s brand thinking by working with consulting firms for other businesses (Wu & Lee, 2014). Interbrand was employed as a guide to assist the corporation to restructure its brand. Considering the intricacies and complexity that globalization has introduced is necessary for leading and managing cross-cultural teams and dispersed resources in today’s business environment. This implies that resources may be located in several places, and completing the task may necessitate the use of workers or contractors from across the world (Mayer & Bello, 2012). To gain the benefits of workplace diversity, it is crucial to successfully develop cross-cultural teams. This may be accomplished through diversity training that emphasizes good intergroup contact and improves connections between personnel of different cultures (Somani, 2021). In this case, international OEM collaborations have proven to be a significant growth route for the company.
Problems Confronting Managers of Cross-culturally Diverse Projects
As the need for new goods, services, and technology solution increases, diverse team is becoming a must for businesses (Narayanan, 2020). According to GP (2022), the following are the challenges managers of cross-culturally diverse projects must confront:
1. Exploitation – Exploiting inexpensive markets and weak laws in developing countries have caused damage and distress. In addition, outsourcing labor leaves less employment inexpensive industrialized nations. Furthermore, unemployment causes dissatisfaction, strains the social programs, and reduces income tax revenue. The globalization-dominated environment will be difficult for those with less relevant skills.
2. High investment cost – Globalization threatens multinationals’ capital investment as well as leadership. Starting a business in a new nation, especially a developing one, demands significant cash. Infrastructural gaps may exist. Upgrades or new construction may be needed for roads, power grids, internet connectivity, water, and sanitation. Finding and retaining managers with the ability to provide value to the organization and perform well in local culture can also be challenging.
3. Confusing local system – Multinational firms must also comply with local legislation. They sometimes face separate legal and banking systems. Navigating these processes can impede expansion to new nations and have significant consequences for mistakes.
4. Weak regulation – International businesses have fewer regulators. International marketplaces may be a Wild West. Without regulation, interconnected markets might have global ramifications if something goes wrong. The global economic crisis may impact numerous countries.
5. Immigration challenges – Growing immigrant and refugee populations confront industrialized nations. Too many refugees strain resources and social institutions, notwithstanding governments’ good intentions. Aid countries may give without harming their own population is limited.
6. Localized job loss – As corporations relocate production offshore, globalization reduces job possibilities. Globalization has contributed to deindustrialization in the U.S., which formerly had more manufacturing and car plants. When American corporations relocate production to China as well as other nations with cheap labor, American employees face plant closures, layoffs, and soaring unemployment. Per the Economic Policy Institute, the rising U.S. trade imbalance with China has cost the country 3.4 million jobs since 2001.
Moreover, a varied and collaborative global workforce may encourage creativity and innovation when various cultures playing off each other provides outside-the-box ideas (Remon, 2019). As posited by Zamborsky (2016), it is most important to comprehend the function of strategic leadership in global strategy, focusing on personal-level concerns such as culture and communication, agreements and leadership, human capital and talent development, and global marketing and distribution.
Strategies Used To Solve the Challenges
Managers and leaders of cross-cultural initiatives and programs face several concerns and obstacles. Generally in managing a cross-cultural team, finding a unifying thread is necessary, as a one-size-fits-all solution does not work (ATT, 2021). The following strategies as prescribed by Henman (2016), can be utilized to make positive changes and strengthen cross-cultural teams:
1. Recognize and respect cultural differences – Address the team’s different cultural backgrounds and optimize their performance. Language, culture, behavioral variances owing to norms and values, and various language, concept, or action meanings are all examples of cultural variety. Cultural background affects how we connect with others, therefore it’s crucial to understand these distinctions. Geert Hofstede’s cultural dimension model can be used to explain cultural differences. This approach helps us understand what motivates individuals from different cultures and how to adjust the effective working habits for cross-cultural teams.
2. Establish a set of norms or cultural frameworks for the team – Once cultural variations and individual expectations have been outlined, the next stage is to develop team standards. The idea is to have everyone participate in the establishment of norms. Obtaining their buy-in strengthens the norms and ensures that everybody feels committed to upholding them. After establishing team standards, verify their effectiveness periodically. Be flexible with standards that aren’t functioning; what seems wonderful in theory may well not work in reality, so pay any attention to the team’s feedback.
3. Establish a team identity and define roles and duties – It is crucial that everyone knows their goals in a cross-cultural team. Organize the shared objective into concrete stages and assign roles and duties. This avoids misunderstandings and helps everyone know they matter. The clarity in each team member’s role makes assessing team performance easy. It specifies who must do what and when. Having a shared objective and vision on what to accomplish unites and promotes teamwork. Finding similarities among team members helps develop a collective identity.
4. Over-communicate – Overcommunicating is excellent for a multicultural team. Managers must exert all efforts to minimize cross-cultural information gaps. Controversy and team dysfunction may be reduced by giving everyone the overall picture as well as the information they need. Remind the team that culture affects behavior and communication approach. Kindness and giving coworkers the respect it deserves make cross-cultural work more enjoyable.
5. Establish relationships and trust – Establish a safe space for the team to collaborate. Respecting differences, obeying group standards, and having a common aim help teams bond. Shared experience connects individuals, and so, management may utilize the activity evaluation area to obtain input on how to enhance communication, boost collaboration, or determine if cultural differences influenced the activity.
6. Leverage cultural diversity – With understanding and regard for different cultures, cross-cultural teams may be managed successfully. Most individuals are receptive to cultural variations in the workplace, therefore setting a basis that makes it easy to comprehend and communicate. Accept diversity, new viewpoints, and alternative approaches. Cross-cultural teams foster creativity, innovation, and learning from others.
Conclusion
In this case study, we have seen that the Giant has become one of the world’s top bicycle suppliers, boasting annual revenues reaching 54 billion dollars, despite its modest beginnings as a small family-owned firm inexperienced with bicycle production techniques. The corporation learned that international OEM agreements are important for corporate success, capitalizing on this importance to long-term profitability by continually investing in R&D and cross-cultural exchanges to enhance the company’s core capabilities. The emergence of globalization has boosted its commercial strategic relationships in the worldwide economy. It has helped them to become a multinational, entering new products as well as geographic markets. It has established relationships with local enterprises to use their expertise, market penetration, or commercial, regulatory, and legal frameworks that increased the company’s competitiveness and sped up technical advancement, limiting enterprises’ self-sufficiency.
References
ATT. (2021, August 3). Managing a Cross-Cultural Team? Here Are 10 Strategies To Do It Effectively! All Things Talent (ATT). https://allthingstalent.org/2019/10/30/managing-cross-cultural-team/
GP. (2022, February 25). Benefits and Challenges of Globalization. Globalization Partners (GP). https://www.globalization-partners.com/blog/benefits-and-challenges-of-globalization/
Henman, M. (2016, August 22). From Conflict to Cooperation: Building Stronger Cross Cultural Teams. Business.Com. https://www.business.com/articles/from-conflict-to-cooperation-building-stronger-cross-cultural-teams/
Knipfer, C. (2018, June 5). Strategic Partnerships & Globalization: Causal Relationships – A Really Cool Blog. Reallycoolblog. http://www.reallycoolblog.com/strategic-partnerships-globalization-causal-relationships/
Matthews, L. C., & Thakkar, B. (2012). The Impact of Globalization on Cross-Cultural Communication. Globalization – Education and Management Agendas. https://www.intechopen.com/chapters/38267
Mayer, M. & Bello, Y. (2012). Leading cross cultural teams in today’s global marketplace. Paper presented at PMI® Global Congress 2012—EMEA, Marsailles, France. Newtown Square, PA: Project Management Institute.
Narayanan, S. (2020, May 14). Bridging The Culture Gap In Distributed Teams: Tips From Buffer, Gojek & Gitlab. X10. https://x10.ansr.com/blog/cross-cultural-team-management-strategies/
PIIE. (2021, August 24). What Is Globalization? Peterson Institute for International Economics (PIIE). https://www.piie.com/microsites/globalization/what-is-globalization
Remon, P. (2019, September 16). How to manage cross-cultural teams effectively. HRZone. https://www.hrzone.com/community/blogs/peter-remon/how-to-manage-cross-cultural-teams-effectively
Somani, P. (2021, March 31). Globalization and Cultural Diversity in the Workplace. The Psychometric World. https://thepsychometricworld.com/globalization-and-cultural-diversity-in-the-workplace/
Swanton, R. (n.d.). The Benefits of Strategic Relationships Between OEMs and EMI Shielding Suppliers | Orbel. Orbel. https://www.orbel.com/blog/benefits-strategic-relationships-between-oems-and-emi-shielding-suppliers
Wu, W., & Lee, Y. (2014). From OEM supplier to a global leading company. Journal of Business Case Studies, 10(3), 225-230.
Zamborsky, P. (2016). International business and global strategy. Bookboon.com
