Managing global virtual teams across cultural and geographic boundaries

International Management: Managing Global Virtual Teams

The global fiber optic network and the internet have played a key role in the development of long-distance communication, which has facilitated work interactions among people from all over the world. It offers global platforms through which people can, at the touch of a button, share work and knowledge, compete, play and collaborate with colleagues across national borders. The creation of virtual teams is one of the most significant developments of these new communication technologies. This allows employees to form working teams with colleagues across national borders. For large organizations, such as MNCs whose operations are cross-continental, these teams are referred to as global teams, and are made up of employees located in different continents, with different cultural beliefs, practices, and functionalities. Global teams are able to take advantage of the different time zones in areas in which different team members are located so as to implement a round-the-clock work mechanism (IRMA, 2001). On the other hand, the diversity elements discussed above pose serious communication and trust concerns. The effectiveness of an organization's virtual teams depends on the management's ability to exploit the opportunities while minimizing the pitfalls associated with the same (IRMA, 2001).

The Building Blocks for Effective Virtual Teams

Creation of Rules, Mission, and Goals

A Clear-cut mission, set of goals, and established rules are crucial to the success of any team, virtual or otherwise, as they provide a sense of purpose and ensure that team members orient their individual activities in line with their requirements (Lepsinger and DeRosa, 2010). Non-existent or inefficiently enacted missions, goals and governing rules do not provide members with a unified understanding of what the team seeks to achieve; and as long as this purpose is neither clear nor shared by the team members, the chances of achieving it are minimal (Lepsinger and DeRosa, 2010). There is a need to make known, to the team members, the team's purpose and the importance of that purpose to the organization so that each member assigns their individual roles and tasks towards the achievement of these (Lepsinger and DeRosa, 2010).

Identification of Stakeholder Expectations

A virtual team's purpose stems from stakeholders' expectations. It is therefore crucial to involve stakeholders, or their representatives in the formation and functioning of virtual teams (Lepsinger and DeRosa, 2010). Team members should, throughout the project's life, make reference to the documented expectations of shareholders to ensure that their activities properly align with the latter (Lepsinger and DeRosa, 2010). Moreover, management needs to hold frequent meetings with team representatives and stakeholders as a way of keeping the team's activities in check and ensuring that the purpose is being achieved (Lepsinger and DeRosa, 01).

Trust and Relationship Building

Face-to-face engagements provide the most ideal platforms for relationship building (Chavaren, 2003). This could prove difficult for virtual teams - especially global ones. Managers and team representatives need to enact mechanisms that would facilitate regular face-to-face meetings of virtual team members (Chavaren, 2003). Team members would then get the opportunity to share work-related challenges and calibrate fundamental activities at a personal level (Chavaren, 2003). Trust is built from such connections. It is this trust that steers active participation and builds passion for goal achievement (Chavaren, 2003).

Complementarities in Team Responsibilities

Complementarities in roles and responsibilities smoothens team activities as it presents team members with a clearer picture as to whom exactly they could turn to for support (Chavaren, 2003). With this kind of knowledge, teams are in a better position to realize their performance potential. If there is a clear definition of roles and proper strategies for complementarities, members will 'own' their roles, develop a sense of accountability towards one another, and to the group as well (Chavaren, 2003). Management could ensure that employees own their roles by; i) developing ground rules that address members' tasks and provide protocols and remedies for non-fulfillment of goals, and ii) providing frameworks through which members can document their views regarding the roles assigned to them (Chavaren, 2003).

The above building blocks relate to the formation, and successful development of all kinds of teams - virtual and physical, global virtual and intra-national virtual teams. The subsequent sections relate solely to global virtual teams within the context of MNCs. I will first briefly outline the benefits of global virtual teams and then later explore a number of significant pitfalls associated with GVTs and the steps that managers could take to address each pitfall.

The Benefits of Global Virtual Teams (GVT)

The benefits of GVTs accrue from the increased resources and options that global virtual teams bring. IRMA (2001) points out efficiency in utilization of resources, cost savings, flexibility, unrestricted talent procurement and responsiveness as the key benefits associated with global virtual teams.

Efficient Utilization of Resources

Global virtual teams enable time leverage through asynchronous work performance. Global organizations, such as MNCs, can essentially use the different world time zones to increase their productivity and reduce the amount of time spent on developments (IRMA, 2001). Taking, for instance, a software developing MNC with branches and virtual teams in London, New York, and Tokyo; the London-based team could develop a code, and in the evening, transmit the same, for testing, to their New York colleagues, who then transmit the tested code to Tokyo for purposes of debugging. In summary, GVTs enable round-the-clock working systems (IRMA, 2001).

Cost Savings

This takes the form of reduced spending on travel and accommodation (IRMA, 2001). Organizations can also realize low labor costs by outsourcing business activities to countries such as India which have large pools of qualified, yet inexpensive, labor forces (IRMA, 2001). It would be cheaper to utilize the services of a qualified worker in India, on a virtual basis, rather than those of an American worker (IRMA, 2001).

Responsiveness

MNCs can use diversity as an avenue for responding to the needs of customers (Lepsinger and DeRosa, 2010). Global virtual teams are a perfect representation of diversity as they incorporate employees from different continents, with different cultural practices, beliefs, and functionalities. These employees disregard their cultural differences and work together. The conglomeration of diverse cultures leads to the development of comprehensive, innovative, and culture-responsive solutions to problems.

Flexibility

Virtual teams are flexible; through them, organizations are able to procure talent from any part of the world without having to make physical relocations.

Pitfalls of Global Virtual teams, and the Possible Strategies Management Could Adopt

The major pitfalls of global virtual teams stem from cultural concerns, trust building, and communication issues (IRMA, 2001). The enjoyment of the above benefits is dependent upon the management's ability to address these pitfalls.

Enhancement of Communication

Video conferencing and collaborative business software are the main methods of communication on virtual platforms (Lepsinger and DeRosa, 2010). Video conferencing allows people in different physical locations to interact through audio-visual transmissions. Collaborative business software incorporates features such as data conferencing, voice mail, faxes, e-mail, etc. (Lepsinger and DeRosa, 2003).

Steps: Effective communication equipment, coupled with relevant training, would more often than not translate to effective virtual relationships. The manager needs to put up structures that facilitate the use of the same. These include the setting up of LAN connections and the purchase of complementary equipment, including cameras, speakers and microphones (Lepsinger and DeRosa, 2010).

The second step involves training team members on the effective use of the relevant equipment and tools. This could take place during the planned kick-off team meetings.

The third step in virtual communication technology management is the setting up of network etiquette standards (Lepsinger and DeRosa, 2010). This involves drafting and implementing the set of rules that will govern the use of virtual technology equipment (Lepsinger and DeRosa, 2010). Network etiquette standards are aimed at ensuring responsible communication among team members and building the team's reputation within the larger virtual community (Lepsinger and DeRosa, 2010). This is crucial to the maintenance of team stability and efficacy. Moreover, efficient etiquette standards often go a long way in bridging the 'communication gap,' which is a common virtual team phenomenon (Lepsinger and DeRosa, 2010).

Conclusion

The successful use of global virtual teams as a business strategy is dependent upon the effectiveness with which an organization's leaders respond to cultural differences, barriers in communication and trust concerns among team members. In as much as global virtual teams may be structurally similar to the traditional physical teams, the former demands additional focus on the above core areas. The manager ought to know the different cultures represented by each team member, and in this regard, educate the other members of the team on how to handle different situations. Moreover, since virtual teams involve less physical contact, the manager must put extra effort in the promotion of trust and relationship building practices. Global virtual teams would only be effective if members learn to accept cultural diversity, trust other members, and work together towards the realization of team and organizational goals.

Reference List

Chavaren, O., 2013. Trust within Global Virtual Teams: Antecedents, Facilitators and Sustainability Factors. Lincoln, NE: iUniverse.

Connolly, A.J., 2013. Cultural Difference on Trial: the Nature and Limits of Judicial Understanding. Surrey: Ashgate Publishing Ltd.

Hawkins, P., 2011. Leadership Team Coaching: Developing Collective Transformational Leaders. Philadelphia, PA: Kogan Page Publishers.

Information Resources Management Association (IRMA)., 2001. Managing Information Technology in a Global Economy. Hershey, PA: Idea Group Publishing.

Lepsinger, R. And DeRosa, D., 2010. Virtual Team Success: a Practical Guide for Working and Leading from a Distance. San Francisco, CA: John Wiley & Sons.