Challenges in managing multicultural teams and solutions

ABSTRACT

When an individual does not effectively resolve challenges that arise when managing a multi-cultural team, the team's effectiveness, as well as needed advancements, may be compromised. This research paper, which explores practices managers may utilize to best counter challenges to managing multi-cultural teams, addresses the primary question: What practices may managers utilize to best counter challenges to managing multi-cultural teams? Benefits from a cohesive multicultural team may include an increase in productivity and innovation, enhanced competitiveness, the fostering of flexibility, superior commitment to the employer and the client. Ultimately, this research effort confirms the paper's hypothesis: When managers implement positive practices to counter challenges that multi-cultural teams present, then a number of benefits naturally materialize.

OVERCOMING CHALLENGES TO MANAGING MULTI-CULTURAL TEAMS

Without taking the time to fully understand how to manage the integration of employees from different cultures, companies risk losing the opportunity to create the international dream team - Declan Mulkeen (2008. ? 2).

INTRODUCTION When the manager fails to speak a parent company's native language, this may hamper his/her advancement and perhaps his/her ability to complete his/her job. Similarly, when an individual does not effectively resolve challenges that arise when managing a multi-cultural team, the team's effectiveness, as well as needed advancements, may be compromised. Yadong Luo PhD, Temple University and Oded Shenkar PhD (2006), Columbia University, stress: "In the middle of a diverse community, language is a key ingredient in this process" (? 1). Languages, one of the primary challenges to managing multi-cultural teams, may negatively or positively affect the organization processes, as well as the way the organization exchanges information, how the organization conducts its competitive activities, it global coordinates, and possibly influence its intra-corporate value creation. During this research paper, the researcher examines practices managers may utilize to best counter challenges to managing multi-cultural teams. Primary/Sub Research Question

During this study, the researcher addresses the primary question: What practices may managers utilize to best counter challenges to managing multi-cultural teams? The following three sub-questions contributed to provide the framework for answering the primary research question: 1. What challenges routinely arise in managing contemporary multi-cultural teams?

2. What practices may managers implement to overcome challenges in managing multi-cultural teams? 3. What benefits may arise from nurturing positive multi-cultural team cohesion?

Hypothesis

The researcher developed the hypothesis from considerations of the primary question, along with the sub-research questions. The hypothesis for this paper asserts: When managers implement positive practices to counter challenges that multi-cultural teams present, then a number of benefits naturally materialize. The research paper adheres to the following fundamental format: ? Abstract ? Introduction ? Literature Review ? Discussion Of Findings ? Conclusion ? Recommendations Research Relevance

Nicole Johnson-Reece (2004), Vice President, diversity and community involvement of Cendant Corporation, Hotel Group, purports that to survive in any competitive environment, changes routinely have to be made to adapt to changes in the marketplace, whether that market be for a service or a particular product. In the article, "Developing an inclusive marketing strategy: Organizations that value diversity in their workplace and marketplace and support them with a focused marketing strategy will be industry leaders," Johnson-Reece points out that one primary changes occurring during the past 10 years is consumer behavior, and that "The U.S. Census Bureau notes that American businesses are increasingly competing for the dollar of a much more culturally-diverse consumer segment than ever before" (? 1). In turn, organizations need to re-evaluate themselves and recognize the opportunity inherent in growing the multi-cultural customer base. This critical factor of evaluating and recognizing needs and opportunities to help nurture long-term success in an organization extend to managing today's culturally diverse workforce. According to the Business Wire report, "New joint venture focuses on it workforce and cross-cultural teams" (2007, for productivity to improve in today's culturally diverse workforce, organizations have to counter a number of multi-cultural challenges. This mandates that the organization "deliver custom training to address diversity and cross-cultural sensitivities for businesses that have multi cultural teams working together on projects" (New joint venture..., 2007, ? 2). When managers do effectively counter challenges common to multi-cultural team, the resulting well-functioning diverse teams contribute to increased innovation and productivity in the organization. Declan Mulkeen (2008), marketing director at culture and communication skills consultancy Communicaid, examines ways miscommunication may impact an organization. In the article, "Bringing the international dream team to life: Declan Mulkeen looks at how miscommunication hampers international working, and what steps managers can take to reduce misunderstanding and increase efficiency" . As Mulkeen notes specific ways not communicating effectively may hamper international working, he also proposes a number of steps managers may initiate to reduce misunderstanding and increase efficiency in an organization. Due to advances in information technology that critically facilitate the organization's global expansion of organization in an increasingly smaller world, Mulkeen stresses, organizations that succeed learn how to effectively communicate not only with their clients, but also with their teams. During the next section, the literature review, the researcher presents a sampling of current literature that enhances the understanding of results from investing "the time to fully understand how to manage the integration of employees from different cultures" (Mulkeen, 2008. ? 2) and how the work to make a team cohesive benefits the organization. Just as the combined efforts of a cohesive team ultimately work for the good of the organization, the combination of components in the research paper similarly, in a figurative sense, work together for the good of the study.

LITERATURE REVIEW

This literature review utilizes a thematic organization to relate information that addresses this research paper's research questions, introduced earlier in the first section of this study. The three themes include the following: 1. Challenges in Managing Multi-Cultural Teams

2. Overcoming Challenges in Managing Multi-Cultural Team 3. Multi-Cultural Team Cohesion Benefits Challenges in Managing Multi-Cultural Teams

Luo and Shenkar (2006) explain that when the numerous diverse and geographically dispersed subunits of the multinational corporation (MNC) communicate with their local business community, as well as within their network, language matters: "Language can... have an impact on conflict management in cross-cultural teams, headquarters-subsidiary relations, training effectiveness, knowledge transfer and diffusion, and the efficiency of the global value chain" (Luo & Shenkar, ? 2). Language, in fact, constitutes the tool for MNC executives to develop their strategies and policies, disseminate and implement them. Overcoming language barriers in multi-cultural teams, Luo and Shenkar (2006) conclude, proves vital as the strategic and socializing roles of language constitute a key to both local adaptation and global integration. Language proficiency serves as critical organizational capability that in a global business environment, cross-cultural communications, as well as foreign languages prove to be a competitive imperative. Consequently, according to Luo and Shenkar, organizations benefit when they facilitate language education and proficiency for team managers. Managers routinely minimize a problem's complexity to more manageable levels. Dr. Sheh Seow Wah (2007), a management consultant, relates eight challenges to making right decisions in the article, "Eight common pitfalls in making the right decision: The need for creative solutions is essential in today's fast moving business environment. To produce novel and yet functional ideas and solutions, the decision-maker requires foresight to see opportunities that others cannot and the insight to approach each problem from different angles while maintaining a holistic view" . The reason for this minimization of problems may evolve from the fact that the majority of individuals "can only comprehend or handle seven pieces of information at any point of time. This limited cognitive capability and information-processing capacity results in managers being unable to fully comprehend the issue or problem" (Wah, ? 4). An expansion on the adage that "Two heads are better than one," Wah purports, may also aptly denote that the total number of a cohesive team's ideas prove more positive from a team not united due to multi-cultural challenges. Dr. Ricarda Bouncken, Professor, and Viviane Winker (2008), research assistant and Ph. D. candidate at the Department of Organization, HR, and Innovation, both at the University of Greifswald, Germany, deem the term "multi-cultural team" to denote teams possessing diverse cultural values and communication styles evolving from their affiliations to varying nationalities and socialization in diverse cultural backgrounds. These researchers purport in the study, "Global innovation teams: Cultural team composition, language capacities, and experience as success factors," that attention to team functioning has increased as global companies utilize teams to pursue innovations research. To gain uncomplicated and prompt access to consumer and market knowledge, global innovations firms frequently depend on Multi-Cultural Innovation Teams (MCITs), which consists of members from a number of various national backgrounds. As Bouncken and Winker (2008) conducted a two-year longitudinal study on five MCITs (105 interviewees) at a large consumer good company, BLUE, they focused on communication styles' diversity and values, along with their effect on team work dimensions linked to the teams' innovativeness. From their efforts, Bouncken and Winker derived a model that emphasizes the building of a high quality of teamwork. "These teams are developed to merge the different knowledge and opinions of members from various international backgrounds and thus to increase the innovations' appeal to foreign and global markets" (Bouncken & Winker, 2008, ? 3). Bouncken and Winker (2008) explain that challenges include global innovation teams being confronted with the team members' various national cultures. National cultures, Bouncken and Winker point out (2008), influence the behavior, cognitive models and values of the individual. These same cultures, albeit may also contribute to challenges relating to the individual's understanding, along with his/her working relationship. Diversity on team members' backgrounds may increase creativity. Nevertheless, team functioning and team processes constant significant factors that form the outcome: Innovation. On the other hand, when diversity starts to threaten group processes, the ensuing actions may, in turn, spoil creativity and the intended implementation of innovation. A manager who does not include all team members in the decision making process or allows particular individuals on a team to dominate discussions increases the potential for challenges with/in a multi-cultural team to increase. The cohesion connecting the team members, as well as their commitment to the organization evolves from creativity and innovation. When team members do not participate in team decision making, albeit, their commitment to the team's tasks, which consequently links to their commitment to the organization decreases and/or dissipates. Through the moderators of language and past intercultural experience, numerous results of diversity studies indicate that when ethnical diversity is considered in only one country, this contributes to only limited potential that the knowledge gained will be put into practice. In addition, team research that only considers college students and measures effects of ethnical diversity on team performance may only prove applicable to colleges students as these individuals do not likely possess the amount of cultural experience employees in an international firm would have gained from their employment. Solely considering national diversity does not suffice. Bouncken and Winker (2008) conclude that teams possessing identical degrees of national diversity may hold varying degrees of cultural diversity and, in turn, function differently (Conclusion section, ? 3). In the article, "How diversity makes a team click," Kelley Holland (2007) concurs that multicultural teams may be particularly challenging to manage. Along with language barriers, communication styles frequently differ from one culture to culture, as may traditional views relating to hierarchy and decision-making processes. "The potential for misunderstanding, bungled efforts and ill will is enormous" (Holland, 2007, ? 6). Success follows understanding and accepting the differences on a multicultural team, and then utilizing the differences to enhance the way the team evaluates issues, situations and concerns and from the analyses makes decisions. Timothy D. Golden, Assistant Professor of Management, Rensselaer Polytechnic Institute and John F. Veiga (2005) Professor of Management, University of Connecticut, assert in the study, "Spanning boundaries and borders: Toward understanding the cultural dimensions of team boundary spanning," that boundary spanning may be constitute the chain of competition for multicultural teams in the contemporary globalized economy. Deliberate efforts by a team to communicate frequently with individuals outside the team to promote the team, obtain resources, and protect the team from intrusion are known as team boundary spanning. This practice purportedly constitutes the best way to assert the team's progress. As the number of cross cultural teams rapidly increase, for boundary spanning to effectively work within a organization, managers need to understand the cultural orientations of each of the team members (Golden & Veiga) As individuals make up teams and each individual possesses his/her personal assumptions and preferences, when members gather to achieve team goals, they will likely bring assumptions and preferences the formed from different prior life experiences, especially those due to their culture. To achieve team goals and objectives, nevertheless, "members develop team-level strategies for interacting with their environment such as choosing to boundary span or not" (Golden & Veiga, 2005, Aggregating team...section, ? 1). How the assumptions the individual team members possess, along with their preferences, nevertheless, do materialize and are reflected in their team's general approach to its organizational environment. Golden and Veiga (2005) state that the actions a team adopts, according to research, will likely reflect the views the majority of individual team members hold. Still, "as the vast and growing cross-cultural research has shown, team actions are likely to be greatly complicated by the individual cultural differences of its members" (Golden & Veiga, Aggregating team...section, ? 1). Although a number of cultural differences may also exist within countries, national cultural values appear to vary methodically more across cultures than they do within the culture. Despite technological advances, along with the start up of new markets and unprecedented levels of migration, Mulkeen (2008) asserts, neither governments nor organizations have invested sufficient time to learning how to harness the opportunities the new multicultural working and social environment presents. As noted at this study's start, unless the organization invests the time to comprehend how to best manage the integration of employees from different cultures, they may lose opportunities to create an effective international team. Mulkeen (2008) further asserts that prior to the advent of multicultural workforces, mono-cultural teams constituted the norm. Excluding slight variations in personal communication style, "each team member shared the same cultural background and understood the rules of engagement. Each employee would know how to relate to his or her colleagues and work towards a common goal" (Mulkeen, 2008, ? 3). With the shift is made from mono-cultural to multicultural teams, however, the manager, as well as the individual team member faced unique challenges, which included differing forms of communication and perhaps unfamiliar business cultures. The manager's role, Mulkeen (2008) explains, is to nurture effective collaboration in the working environment so the team may achieve its desired goals. As multicultural team members may each possess different ideas of the way to manage tasks and projects, managing a team consisting of numerous nationalities varies dramatically to the managing a mono-cultural team. "A truly effective manager takes the time to understand his or her staff and will gradually adopt a 'third' culture: A new set of styles and processes which combine the cultural preferences pertinent to those in the team and find the best fit for the group" (Mulkeen, 2008, ? 6). This process involves the manager identifying and understanding the impact individual's communication style makes. Mulkeen points out: A principal difference in communication style is whether a culture is 'high' or 'low' context. Cultures vary in the extent to which the context of their communication is implicit or explicit, which also influences the value they place on their relationships or on rules. In a high-context culture (found in countries such as Spain, Mexico and France), communication relies on body language and assumed knowledge, and the context is left unsaid. Conversely, in a low-context culture (found in countries such as Germany, Canada, the UK and the USA), communication is much more direct and words are used to explain the context explicitly (Mulkeen, 2008, ?? 7- 8). To avoid causing offence or misunderstanding when a person from a high-context culture communicates with another individual from a low-context culture, he/she needs a particular amount of accommodation or adaptation. A person from a low-context culture may feel he/she is not being caught up to speed by a team member from a high-context culture, who assumes all members share the same knowledge. A high-context individual, on the other hand, may feel he/she is being patronized or perhaps feel bored by the level of detail given his/her low-context counterpart give him/her. An international team manager needs to be cognizant of these and other challenges and also secure salient solutions to minimize conflict in the team and maximize successful group communication within the group (Mulkeen, 2008). One primary difference in business practices across cultures involves the amount of emphasis the individual or the group or team as a whole merits. This type tension between individualism (noted in countries like the USA, the UK, Australia and Germany) and collectivism (noted in countries in the Middle East as well as Singapore and Mexico) may impact the way individuals perceive their roles in the team. To effectively counter this challenge, expectations regarding the team member needs to be mutually understood from the start (Mulkeen, 2008). Mulkeen (2008) asserts that attitudes towards risk, hierarchy, collectivism and individualism, as well as communication styles, represent a few vital areas the competent multicultural team manager regularly addresses to counter the development or friction within the team and/or permitting it to flourish. Cross-cultural competency proves to be an essential characteristic for managers in multinational companies. Whether or not a manager possess this trait may make the difference between an organization succeeding or failing in today's global economy. With a myriad differences to consider in managing a multicultural team, the manager also has to determine which strategy for managing the diverse individuals works best, yet simultaneously creates an effective framework for running the team so each person feels comfortable in his/her environment. Multi-Cultural Team Cohesion Benefits. Luo & Shenkar point out a number of ways global language design benefits performance in an organization: Global language design affects corporate performance via several channels. First, it improves inter-unit and intra-network communication, enhancing the accuracy, speed and effectiveness of intra-corporate information exchange. Second, global language design improves coordination and integration, which are compounded by the use of multiple languages and their cultural correlates When a language system is incorporated into a global information system, headquarters can better calibrate local feedback and integrate globally allocated activities. Coordination costs are reduced directly as a result of lower translation requirements and indirectly via minimization of the misinterpretations associated with linguistic barriers. Third, global language design improves inter-unit learning, which is essential to capturing synergies from inter-unit collaboration and knowledge transfer (Luo & Shenkar, 2006, Theory development section, ? 8). Mulkeen (2008) concludes that currently, a number of significant opportunities exist for international collaboration between organizations. Along with the increasing number of individuals with international responsibility, cross-cultural teams will become more common throughout the world. Training help participants, particularly team members, understand both their own and their international counterparts' cultures prove vital. To develop strategies that will enable team members to work more effectively across cultures, managers must maximize teamwork, while they also strengthen the group's performance. When for