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ANALYZING IMPACTS OF CULTURAL DIVERSITY IN PROJECT MANAGEMENT & IDENTIFYING CULTURAL BARRIERS THAT AFFECT
PROJECT MANAGEMENT
A research paper submitted in fulfilment of requirements for degree
Of
MSC (Business Project Management)
Huddersfield University Business School
Department of Management
By
Javed-ur-Rehman Afridi
September 2010
Name of the Supervisor Eric Summers
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Abstract
The purpose of this research study to examine and analyze the impact of cultural diversity
in project management using a comparison of two organizations operating in multinational
environment including Pakistan. The sample we selected for this research was from
Emaar Group and Chinese Harbour Engineering Company. These both organizations
selected are part of multinational environment integrating diversity and involving project
management. In this research we used two major reliable sources of evidence: the
Questionnaire and face to face interviews with project managers and team members. The
data and information collected through questionnaire revealed that eighty nine percent
89% of the participants believe that cultural diversity may exist when working in teams,
sixty percent (60%) of the participants agreed that cultural diversity impacts project
management and eighty three percent (83%) of the participants believe that cultural
diversity can initiate conflicts between team members. In face to face interviews the
participants mentioned that technical knowledge and communication skills (which includes
cross cultural communication) are essential in project teams with cultural diversity.
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Acknowledgements
First of all, I am very thankful to the companies, project managers, team members and
other participants who made this research possible through interviews and surveys and
gave me an opportunity to understand cultural diversity in project management in a better
manner. Thanks to the Pakistani staff and engineers who are working in these companies
for helping me in this research.
Thanks to all the Professors and teaching staff of HUBS for their supervision and guidance
that allowed me to culminate this endeavour. Special thanks to Eric Summers my
supervisor for this research, his guidance and support helped me to complete this
research work and research proposal. His guidance really proved helpful for me to
understand the research work.
I also thank Major Imran Hanif for his guidelines, support and always encouraging me to
continue and work hard throughout my research work.
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Abstract…………………………………………………...2
Acknowledgements.....................................................3
Table of contents
Appendices....................................................................6
List of Figures & Tables……………………………………6
1. Chapter-1Aim and Purpose of the study1.1 Introduction………………………………………………………………………….8
1.2 Problem statement………………………………………………………………...13
1.3 Aim and Purpose…………………………………………………………………..13
1.4 Objectives…………………………………………………………………………..13
1.5 Research questions………………………………………………………………..14
1.6 Contribution…………………………………………………………………………14
1.7 Dissertation outline…………………………………………………………………15
2. Chapter-2 Literature Review2.1 Introduction………………………………………………………………………….16
2.2 What is culture……………………………………………………………………...17
2.3 Cultural diversity and project management………………………………………19
2.4 Reasons and importance of managing cultural diversity…………………….....21
2.5 Impacts of cultural diversity on project management……………………………24
2.6 Barriers when managing projects…………………………………………………28
2.7 Cultural diversity and cross cultural communication…………………………….30
2.8 Summary……………………………………………………………………………..32
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3. Chapter-3 Methodology3.1 Introduction………………………………………………………………………….333.2 The relation between the Researcher and the Researched……………………333.3 Research Philosophy……………………………………………………………….343.4 Reason for choice of Research……………………………………………………343.5 Research Design and Strategy…………………………………………………....373.6 Questionnaire………………………………………………………………………..403.7 Interviews…………………………………………………………………………….423.8 The Sample………………………………………………………………………….43
3.8.1 Sample Selection……………………………………………………………..433.8.2 Sample Size…………………………………………………………………...44
4. Chapter-4 Findings & Analysis4.1 Introduction…………………………………………………………………………..464.2 Face to Face Interviews……………………………………………………………46
4.2.1 Chinese Company……………………………………………………………464.2.2 The Emaar Group Pakistan………………………………………………….484.2.3 Summary of Interviews……………………………………………………….50
4.3 Questionnaire Results……………………………………………………………...504.3.1 Demographic Data……………………………………………………………504.3.2 Cultural diversity factors present in projects……………………………….514.3.3 Project management phases that most impacted by cultural diversity….534.3.4 Cultural barriers that impact project performance…………………………544.3.5 Specific Results……………………………………………………………….554.3.6 Summary of Questionnaire Results…………………………………………59
5. Chapter-5 Conclusion & Recommendations5.1 Conclusion………………………………………………………………………….605.2 Limitations of the Study……………………………………………………………615.3 Recommendations for Future Research…………………………………………61
6. References………………………………………………………………………………62
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Appendices
1. Appendix A Questionnaire for Survey………………………752. Appendix B Questionnaire for Semi structured interviews……..793. Appendix C Designing qualitative interviews……….804. Appendix D Strengths/ Weaknesses semi structured interviews…81
List of Figures
Figure 2.1: Three different levels of human agency….18
Figure 2.2 :Different layers of cultural diversity……….20
Figure 4.1: Cultural diversity factors………………………52
Figure 4.2 :Major impact on project phases……………...53
Figure 4.3 :Cultural barriers……………………………….54
Figure 4.4 :Cultural diversity existence in project teams…………..55
Figure 4.5 :Impact on project development……………………….57
Figure 4.6 :Conflicts……………………………………………58
List of Tables
Table 3.1: Cultural diversity factors…………………………..41
Table 3.2: Cultural barriers…………………………………………42
Table 4.1: Age of participants……………………………………………51
Table 4.2: Experience working in project teams………………………51
Table 4.3: Confidence interval-existence of cultural diversity………………..56
Table 4.4: Confidence interval-cultural diversity impact on project development…57
Table 4.5: Confidence interval-cultural diversity can initiate conflicts?.........59
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CHAPTER 1- AIM AND PURPOSE OF RESEARCH
1.1. INTRODUCTION
Culture is the composite of an entire set of norms and responses that stipulate the
behaviour of people. It is the way that people from different groups interact, interpret
experiences and behave. Cultural changes come slowly and transmit from one generation
to another, unless the impacting and affecting situations such as wars and changes and
advancement in technologies occur. The advancement in technologies such as the use of
internet, satellite televisions, video conferencing and the globalization of businesses, are
spreading cultural traits across cultures at a very rapid speed. Due to globalization and
internationalization of businesses, the organizations operating in this complex environment
confronted with cultural diversity. And no organization can afford to ignore cultural
diversity. The organizations must need to learn and accommodate diversity. Schneider et
al (2003, p.218) mentioned that it is inevitable to bring people with different cultural
backgrounds because of the changes and complexities in international business
environment which will improve and provide effective decision making. These differences
can provide opportunities for greater creativity and innovation.
Cultural norms and values are embedded in each and every culture and within each
cultural grouping there is shared perception what is considered right or wrong. These
norms and values affect the way people communicate, behave and the organizational
structure they created. Applying this concept to project management when members of
the project come from the same or similar cultural backgrounds working for same project,
there will be little perception of cultural differences. On the other hand, when these
members come from different cultures and backgrounds then they bring different norm
expectations to the project which may affect the smooth functioning of the project. Each
society operates under different assumptions, norms, professions and functions, the
society or organization can have different culture their selves.
Managing business in the changing business environment is becoming complex because
of the changes in technologies and more importantly diverse workforce. Organizations
operating in the global market use project based working and project management for
effective management of businesses and projects around the world and these trends and
project management concepts have become popular in the last two decades. In these 8 | P a g e
kinds of business practices the complex element of multinational projects is HR (Human
Resource) which is challenge for project managers and organizations to manage in
effective manner. In multicultural projects people come from different countries who bring
cultural diversity to the projects. This diversity in workforce gives new shape to project
management and appeal for project managers to develop new skills to manage new
international working environment. According to Hossein et al (1992, p.82) the importance
of cultural awareness and human behaviour has been discussed by various authors and
the effective management of cultural diversity is a source of discussion in recent years. In
order to understand the international business it is highly important to know the cultural
diversity in complex business environment. Some organizations consider cultural diversity
as an asset for innovation and creativity. The diverse workforce can work creatively in
accomplishing business and project objectives. And ethnically diverse groups generate
more ideas of higher quality in brainstorming tasks. But on the other hand it is a big source
of conflict and confusion in international business.
Cultural diversity consists of different human social structures, belief systems, and
strategies adapting to situations in different parts of the world. Some people think that
cultural diversity only mean the different countries, but it is more than nationalities. Gray et
al (2008, p.30) mentioned that, variations in cultures appeal for different management
practices and processes across cultures and that is a big challenge to international
business. Cultural diversity does not only mean different nationalities but it means people
from different cultural backgrounds, where they differ from each other in terms of
educational background and work experience. Cultural diversity can be witnessed in a
group or team composed of people from different educational background or work
experience. As per Miller (2000) cultural diversity factors such as language, religion,
nationality, race, education, organization and politics are important elements that can
interact in a culture. Effectively managing, understanding and embracing cultural
differences among employees and customers directly impact and enhance economic
prosperity and survival in globalised environment. Therefore, an effective management of
cultural diversity has become a challenge for all organizations operating in international
and domestic markets.
As a result of cultural diversity, many organizations have been confronted structural
changes. At the beginning, companies focused on functions where people the same
background and involve in similar activities were grouped together in common functional
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departments. But over the period of few years, the organizations began to focus into the
projects and its management. The competition and technological advantages in global
markets have led to importance of product’s life cycle. And the need and urgency to gain
competitive advantage have increased the interest for implementation of projects.
Projects can be classified on the basis of domestic, overseas, foreign or global. In
particular, global projects composed teams made up from members spanning multiple
countries, continents and cultures with their work incorporated for the entire enterprise.
Projects can play a key role to the success of the firms. The companies effectively and in a
better way adapt to the globalised economy and its trends, the more successful they will
against competition. Project management is a new concept and trend for organizations.
There is need for a new thinking as the workforce continues to globalize. Project managers
must develop a cohesive team which is committed to work together for successful
completion of projects.
Many organizations believe that the performance of organizations and project groups or
teams can be improved by integrating diversity and accommodating diverse workforce.
Therefore, diversity has the potential to bring new life, new ideas, new thinking and new
solutions to the complex problems. But the important thing is, managers have to
understand the cultural diversity in order to manage team properly. Developing cultural
sensitivity and skills needed in order to manage diverse teams effectively is becoming
more and more important and those managers will be successful in global business
environment that can effectively work with culturally diverse teams and facilitate new
ideas. Henrie et al (2005, p.5) argued that, projects involve people working together to
achieve common goals. People and their culture are a subject and common area to all
projects. Culture is one of the factors which cause project failure. People bring different
culture to project and there are implications for project managers to understand the
impacts of these differences for project success.
Various authors and researchers have developed research and studies about the
importance of culture, cultural diversity and project management. There is a large amount
of theoretical studies that discuss the importance and impacts of cultural diversity in
multicultural projects and how culture impacts project management, particularly in
international projects. But empirical evidence related to how cultural diversity impacts
project management is absent from literature. As per Henrie et al (2005, p.6) culture is the
element which is not widely discussed or reported in project management literature. They 10 | P a g e
mentioned that, project team and culture is an area of research where little data and
information are available.
The importance of culture in multinational projects cannot be ignored. International or
multinational projects are, in recent years a common form for managing international
business such as construction projects (buildings, transport or communication
infrastructure). Employees in these kinds of projects may represent different nationalities
and ethnic backgrounds. Players from diverse cultural backgrounds in transnational
projects face complexities and encountered obstacles. The significance of the effect and
impact of national, ethnic cultures and cultural differences on projects has been apparent
for many years and therefore managing projects in this modern time demands sensitivity to
the cultural values and priorities developed by different national cultures and occupational
groupings. Managing multicultural projects is increasingly accepted as requiring greater
and larger sensitivity to the values and priorities, expectations, assumptions, attitudes of
people and habits of mind which are developed within different occupational and corporate
groupings. According to Elron, (1997) the most common and important challenge for
multicultural teams is management of cultural diversity or differences and cross-cultural
conflicts within project team. Cultural issues among team members can cause conflict,
misunderstanding and may result in poor performance. Construction projects in particular,
project manager has to face two important challenges, handling geographic distances and
managing cultural diversity, differences and conflicts.
Communication is the life blood of organizations and it becomes more important in the
context of international projects. As we know that, communication or cross cultural
communication is affected by cultural differences. Culture is communication and
communication is culture. Culture is learned and preserved through communication.
People have different understanding of interaction process and different styles of
dialogues that create difficulties and problems in cross cultural communication. Language
differences between members are one of the cultural factors which affect process of cross
cultural communication. Ayoko (2007) argued that, demographic diversity increased
problems with communication, coordination, dysfunctional conflict and potential factor for
decreased performance. Therefore these problems can be resolved with better
understanding of communication styles used in different cultures. Cross-cultural
communication within project team comprises of verbal and non-verbal communication
which helps in transfer of information and knowledge between individuals in project team
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with different ethnic profiles. An effective and appropriate communication process can
guarantee the involvement of team members and cooperative management in project
team issues. It is also consider as an important tool to deal with cultural diversity to get
know people each other through oriented actions and increasing cooperation
The relationship between cultural diversity and team performance can be explored. The
most of the researchers argued that cultural diversity can bring positive as well as negative
impacts on project management team. The characteristics of cross-cultural project teams
affect the effectiveness and efficiency of the project teams performance. On one hand, it is
argued that the diversity of views can increase the available resources and ease the
complex problems in multicultural projects that the members of cross-cultural have. Being
from different cultures they may be more creative in problem solving than national
homogenous teams. On the other hand, diversity in culture causes confusion, ambiguity
and complexity in project group processes, which may bring devastating impacts on the
effectiveness of the project team. Many of multicultural projects carried out without
noticing cultural differences may cause unanticipated hurdles or frustrations and many of
projects do not reach optimal levels because cultural differences amplify other differences
which have impacts on the objectives of the project.
The purpose of this research to explore the impact of cultural diversity on project
management based on a comparison of two multinational organizations. The research
methodology mainly includes reasons for mixed method approach (Pragmatic approach),
questionnaire and face to face interviews. The literature review includes culture and
culture diversity, importance of cultural diversity management, impacts of cultural diversity,
cultural barriers and cultural diversity and cross cultural communication.
This study was conducted using multinational companies these both companies
undertaking projects in different countries including Pakistan: Chinese Harbour
Engineering Company and Emaar Group. The project teams are composed of members
from different departments, educational, social backgrounds and nationalities. These
companies involved in different project management phases including development,
implementation and completion of projects.
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1.2 PROBLEM STATEMENT
In this research the problem to be investigated is how important the national culture is in
the context of multicultural projects. How the cultural diversity or cultural differences have
impacts on the project management and project team performance. How cultural diversity
management can be made effective in transnational projects.
1.3 AIM AND PURPOSE OF THE STUDY
The aim and purpose of this research is to explore and study the issues of cultural
diversity arising within a project management team.
1.4 OBJECTIVES
The main objective of this research is to explore and analyze the impact of cultural
diversity in project management. The following given objectives are considered in order to
achieve the purpose of this research. The objectives are:
To explore how important the culture is and what factors of cultural diversity are
present in project management team
To explore the cultural factors affecting cross-cultural communication in project
management team
Exploring areas of project management which might be the most impacted by
cultural diversity
Identify cultural barriers that impact project performance.
Achieving these objectives will help project managers to understand and effectively
manage cultural diversity in project teams.
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1.5 KEY RESEARCH QUESTIONS
In order to determine and assess the impacts of cultural diversity on project management
teams a comparison has been made of two multinational companies working in Pakistan.
The following questions can help for results:
Are there any cultural diversity factors within the project team?
How does cultural diversity affect the development projects?
What cultural factors can create obstacles in the performance of the team?
Are there communication issues arising from cultural factors within the project
team?
The main research question is how the cultural diversity affects the project management
team and the linkage between cultural diversity factors and team performance.
1.6 CONTRIBUTION
As has been mentioned before, most of the literature and theoretical studies discuss the
impact of cultural diversity in multicultural projects and how culture influences project
management in the context of international projects. The literature and empirical evidence
relating to how cultural diversity impacts upon project management generally is notably
absent.
The contribution of this research is to explore how cultural diversity impacts project
management providing:
Empirical evidence by;
Undertaking a comparison between two multinational companies
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1.7 Dissertation Outline and Structure
Chapter 1.Introduction: including; Problem statement, Aim and Purpose of the study,
Objectives of the Research, Research questions and contribution.
Chapter 2.Literature Review: Reviews of secondary data and research studies in the
areas of cultural diversity and project management.
Chapter 3.Methodology: describes the research methods, the samples and data analysis.
Chapter 4.Findings and Analysis: explains the investigated results and compares it with
literature review and the results of secondary data.
Chapter 5.Conclusions and Recommendations: summarises the research conducted and
indicates the most important findings as well as recommendations.
Appendix: The research includes four appendices: Appendix A- Questionnaire, Appendix
B- Interview Questions, Appendix C and Appendix D.
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CHAPTER 2- LITERATURE REVIEW
2.1 INTRODUCTION
Culture is considered the driving force behind human behaviour everywhere. It is
mentioned that, there is close link between culture and behaviour. Cultures have impacts
on behaviour, morale, productivity at work and including values, patterns which affect
company’s attitudes and actions (Moran et al 2007, p.6).
With the globalization of organizations in the last two decades, work force diversity and
team work are important for organizational success. Therefore, diversity management is
the important concern for companies in international markets where customers are spread
across the world (Saji 2004, p.40-41). In this modern times where international business
environment is becoming complex and competitive many organizations use and deploy
project management teams to accomplish multicultural projects and achieve their
objectives. Lles et al (1997) argued that many organizations deploy multicultural project
teams to increase their flexibility and responsiveness in global competitive and complex
market environment. Further mentioning that it is the powerful tool for bringing innovation
and change within international companies and used by companies those who want to
enter global strategic alliances.
Cultural values and beliefs are linked to the social behaviour and that put the management
of cultural differences at high risk. Ignorance of these differences can cause organizational
failure and hinder the way for sustainable competitive advantage. The understanding of
cultural differences can help organizations to be more effective and increase their ability to
manage differences. The managers should have knowledge and experience for effectively
and successfully managing cultural differences while working across borders. In the
context, of construction projects which are high scale in nature, organizations involve in
these projects should understand the culture of host country at least the cultural
differences between two countries (Low et al 2001).
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2.2 WHAT IS CULTURE?
National culture or culture is an important element in explaining behaviour of the people
and differences in culture as an important for explanation of people’s attitudes in different
countries and cultures. There is no perfect definition of culture but different authors have
different definitions. Parvis (2007, p.1) argued that culture is complex phenomenon
because it does not a fixed meaning. He defines culture is the way of life of a group of
people. Samovar et al (2009, p.10) quoted the definition of Sir Edward Tylor, who said
culture includes knowledge, belief, art, morals, law, custom and any other capabilities and
habits which the man has as a member of society. It means that a man has different
subjective ideas and preferences about an event in society which makes a person different
from other cultures. There are different expressions related to culture such as cultural
differences, cultural diversity, multiculturalism, corporate culture, cross culture and other
variations appeared in modern times.
Hofstede (2001, p.9) ‘culture as the collective programming of mind that distinguishes the
members of one group or category of people from another’. In this definition the mind has
central role which means the hands, hearts and heads, in other words feeling, thinking and
acting which result in beliefs, attitudes and skills of the people. These factors affect the
behaviour of people it is highly important when they work together and dependent on each
other. Therefore, management of cultural diversity is mostly related to management of
people in organizations and project teams. He refers culture is to a human collectively
such as a personality to an individual. He also draws a link between culture and
personalities of individuals and cultural characters are sometime measurable through the
test of personality of individual. According to him, human group’s response to its
environment is influenced by interactive aggregate of common characteristics. Individuals’
response in a group or a team to other people is influence by interactive aggregate of
personal characteristics.
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Figure 2.1: Three different levels of human agency
Source: Hofstede (2001, 1991)
Gurung et al (2009, p.5) defined culture as a unique meaning and information system. And
this system is shared by a group, transmitted generation to generation which allows the
group to meet needs of survival and the social behaviour coordinated to achieve viable
existence to transmit social behaviours for the well being and happiness. He further
explained that culture provides and enacts rules for all aspects of life such as cooperation.
Gooderham et al (2003, p.131) referred culture as system of meaning, which includes
values, beliefs, expectations and goals shared by members of a particular group of people
and that differentiate them from members of other groups. It means that every culture has
different values, beliefs which are shared by people from same culture and these elements
make them different from other group of people who are from different culture. Rugman et
al (2009, p.131) argued that, socialization process is the basis for one’s culture.
Socialization process means the influence of parents, friends, education, and the
interaction of with other members of a particular society.
Yu (1999, p.58) defined culture as the learned patterns of behaviour which are common to
the members of a given society. According to him, there are four important aspects of
culture which are; culture is learned, the various aspects of culture are interrelated, culture
is shared, and it defines the boundaries of different groups.
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2.3 CULTURAL DIVERSITY AND PROJECT MANAGEMENT
Globalization and global competition have increased the demand for culturally diverse
project teams for effective and fast operation and completion of projects. The main
challenge is management of the members who are physically separated from each other
and teams are cross cultural in terms of their attitudes, beliefs, organization culture and
physical conditions. Development and creation of high performing project team is the
prime responsibility of project manager in order to address the issues of culturally diverse,
flexible and competitive operation created by globalization. Further mentioned that, project
managers must understand to capitalize cultural diversity and achieve synergy within a
multicultural and cross functional project teams (Knutson 2001, p.459). Multicultural or
global team members bring cultural diversity as well as culture that linked to their discipline
and profession. Cultural diversity is the one of the challenges in global projects faced by
project managers. Cultural differences sometime lead to misunderstanding in project
teams (Persaud et al 2003, p.87).
Cultural diversity is the phenomenon emerged in global business environment and all
aspects of project management in the recent years. Meredith et al (2010, p.9) quoted the
definition of PMI, project is a temporary endeavour undertaken to create a unique product
or service. The organizations those operate in international markets and in different
cultures cultural diversity management is the important and complex issue. The
globalization is shrinking the world markets and businesses people from diversified ethnic
and cultural backgrounds which includes values, lifestyles and languages working for a
same organization come in contact with each other. Therefore, in this context cultural
diversity means individuals with diversified ethnic backgrounds. Morgan (2007) defined
diversity as, it is all of the ways or elements which people differ that include inborn and
acquired characteristics. On the other hand, cultural diversity means workforce diversity in
organizations or project teams. Laroche ( 2003, p.6) explains cultural diversity is cultural
differences which mean the differences that include both visible and invisible between two
cultures. Parvis (2007, p.5) explained that there are factors such as variation in ways of
life, people’s ideology, traditions, dressings, arts, music, concept of time and which include
other factors provide basis for cultural differences. These differences and ethnocentrism
create confusions and misunderstandings among people. He further mentioned that we
can find cultural differences in people’s living conditions, relationships with others,
emotions, working style, teaching and ruling a society.
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Daft (2003, p.439) defined cultural diversity or workforce diversity as the workforce which
includes people with different human qualities or who come from diversified cultural
groups. He argued that diversity means including people who different from each other
along the basic dimensions such as age, ethnicity, race or gender. According to him there
are two dimensions of diversity as primary and secondary. The primary or basic
dimensions include race, ethnicity, gender, physical or cognitive capability which are
inborn and have influence on individuals throughout their lives. Further these are the
elements shaping perspectives or self images of individuals. Secondary dimension include
the qualities acquire later on and usually changeable such as work style, military
experience, parents, language, income and competencies. But these elements are less
effective and basic dimensions have strong influence on individuals’ self identity.
Figure 2.2: Different layers of cultural diversity
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source: Lee Gardenswartz and Anita Rowe
Kossek et al (1993) defined cultural diversity as the differences or variations in language,
religion, dress and moral codes that possessed by people according to race and ethnicity.
The differences in language and moral codes are biggest challenges in the management
of cultural diversity in organizations and project teams for multinational companies. Moral
codes of people from diverse backgrounds affect the working behaviour and attitudes
while they come in contact with other members of the group. Language has big role in
communication among people in organizations; therefore variations in language affect the
process of communication in team works.
The effects of cultural diversity have been realise on organizational behaviour which are
multi-variant and depends on the combination of groups at workplace. Individualism and
collectivism have implications for peoples’ working behaviour. Cox et al (1991) examined
the collectivism and individualism in the context of cultural diversity and ethnic groups. He
mentioned that collectivist cultural traditions proved more cooperative behaviour than
those from individualist cultural backgrounds. In project management cultural diversity has
emerged as a paramount issue of important nature because of the globalization of
workforce. Therefore, project managers need to enhanced skills to develop a committed
project team to complete project effectively (Gray et al, 2003).
Various factors such as language barriers, religion, different nationalities, race, education,
organization and politics are important that can be related to culture or diverse cultures
(Miller et al 2000, p.19).
2.4 REASONS AND IMPORTANCE OF MANAGING CULTURAL DIVERSITY
This part of literature review explains, why there is need for effective cultural diversity management in multicultural project teams.
The advancement in technologies and globalization the diverse work groups or teams will
become common in international business environment. The people from different racial
and ethnic backgrounds will have to work in diverse workplaces. The existence of cultural
diversity will be a part of daily works in international corporations. These changes in
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business environment will create new challenges and appeal for new management styles
(Appelbaum et al 1998). Management of cultural diversity can help in setting up an
environment of understanding and sensitivity about culture in project management. The
organizations successfully managing and valuing cultural diversity in project teams can get
a strategic advantage over other organizations (Peters 2008, p.150).
Morgan (2007) highlighted the importance of cultural diversity in project teams and
mentioned that it is very important to manage diversity in project teams effectively in order
to create and maintain a positive work environment where to eliminate differences and
dissimilarities among people to maximise their contribution towards team performance for
achieving organizational goals. In multinational or transnational projects to form a project
from diverse cultural backgrounds is becoming an issue and therefore cultural diversity in
multicultural project teams should be managed in an effective manner. Higgs (1996) cited
that globalization, team working and diversity would be the major concern of international
businesses in nineties. He further mentioned to gain competitive advantage in businesses
needed effective management and development of people and in global businesses,
management and development of people links to the consideration and management of
diversity and related challenges. Ozbilgin et al (2010, p.1) ‘mentioned diverse workforce
management considers as an important area of corporate activity’. According to the writer
the main issue in the international business management is culture, which brings impacts
on the business and projects. These differences cause problems that can affect
performance of project teams.
The main purpose of cross-culture management is to understand and explain the diversity
or cultural differences in projects and workplace. The implications exist where people in
project teams come from diverse cultural backgrounds. These differences create diverse
working behaviour within teams and groups. Adler et al (2008, p.13) cited that, cross
culture management is the management of behaviour of people in organizations and
bridging the cultural gap between people coming from different cultures. It also deals with
describing and comparing organizational behaviour within countries and cultures and
improve the interaction of people in different cultures. Organizations use cultural diversity
management for competitiveness and to manage diverse workforce. Fleury (1999)
mentioned, because of the increase variety of workforce and competitiveness cultural
diversity management is the strategy and tool used by organizations as reaction to
overcome culture issues and challenges. Therefore cultural diversity management
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provides the basis for making effective HR policies in projects and to accomplish project
objectives. He further mentioned that management of cultural diversity focuses on creating
an organizational environment which helps in all the employees to achieve organizational
goals.
Some of the authors argue that cultural diversity is the most important element for
organization which should be considered in a broader context. It was a hot topic in west in
nineties because of influx of immigrants from different countries. But now managing
diverse workforce the issue for all international organizations launching projects across
borders. Seymen (2006, p.301) cited that the organizations should take into consideration
cultural diversity and it should be effectively managed. He mentioned it is a new
perspective about diverse workforce which is emerged in USA and it was influential in UK
more than a decade a ago. In fact, cultural diversity is a phenomenon which exists in the
international business environment and needs effective management practices for good
performance and to achieve organizational and project goals. Dubrin (2008, p.43) believes
in cultural diversity sensitivity. According to him, the enterprises should consider cultural
differences and should aware of local and national customs and traditions and how these
affect the interpersonal relationship and ignorance of these customs can bring negative
impacts on organizations. He suggested that cultural diversity management helps in to
adapt our behaviour for meeting the requirements of people from diverse cultures. The
main challenge is to manage employees with dissimilar backgrounds and cultures.
Some of the writers believe that cultural diversity management is a comprehensive tool to
make linkages between organizational culture and personal culture. Arrendondo et al
(1996, p.21) suggested that diversity management needs to focus on personal and
organizational culture, cultural differences, culture change, and cross cultural relationship
based on interdisciplinary knowledge. Personal culture of a person has a significant value
which includes his values, customs and beliefs and has impacts on working behaviour
while working with culturally diverse people in project teams.
As per Miller et al (2000, p.21-22) we need to value differences and learn as much as we
can because it will lead towards a spirit of cooperation and enthusiasm. And project
managers should adopt a good understanding of projects and goals of projects and to
communicate them clearly.
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Miller et al (2000, p.22) suggested the following management techniques that can enhance
team performance and help in managing cultural diversity in multiethnic and multicultural
teams:
Utilizing the common bond of technical knowledge
Applying fundamental human motivators
Understanding the personalities of team members
Understanding group identification and affiliation
Valuing the differences between people
Understanding common elements
Promoting communication
Creating a flexible and accommodating system
Bringing to bear the power of humour
Avoiding stereotype
2.5 IMPACTS OF CULTURAL DIVERSITY ON PROJECT MANAGEMENT
A large literature available on the impacts of cultural diversity on project management with mix findings of negative and positive impacts on project team performance. In this
literature review we will study the positive as well as negative aspects of cultural diversity
on project management team performance.
Cultural diversity can affect the effectiveness and efficiency of project team members.
Cross cultural factors or characteristics can be potentially more creative than the culturally
homogenous groups. Cultural diversity increases ambiguity, complexity and confusion in
group processes which may devastate team’s effectiveness. The functioning of
international work teams depend on managing process which is affected by national
culture. Cross cultural teams cannot be effective and successful without personal qualities
of team members as openness, patience, and self control (Chevrier 2003, p.142).
Management of cultural diversity is important for projects. Cultural diversity has impacts on
the performance of project. Failure to effectively manage cultural diversity can lead to
changes in project management which may delay the completion of project on time
(Hossein 1992, p.90).
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National culture affects projects in many ways. Some projects need cooperation and
interaction by individuals and groups from different countries or sometime they require
cooperation by individuals and groups in one country but from different industries and
firms. These differences are cultural differences not geographical or organizational. The
cultural differences also include environmental differences that matter and have impact,
such economic, political, legal, and socio-technical environments. These differences are
not just existing in international projects but organizations have different cultures and
environment. The impacts of these dissimilarities are greatest and most visible in the
context of international or multicultural projects (Meredith et al, 2010 p.130-131)
Liang et al (2007, p.639) cited that, there is mixed findings between diversity and team
performance. According to them, diverse groups perform better than homogenous groups
but on other hand, homogenous groups can perform well because they can avoid poor
communication patterns and excessive conflicts which plague diverse groups. Different
backgrounds and beliefs system of people in a project team can enhance the chances of
disagreement and conflict among them. Further, differences in educational backgrounds,
training and work experience may cause conflicts in project teams. Schuler et al (2004,
p.133) emphasised on cultural diversity interference with development of cohesiveness
among members of an organization, which is based on demographic differences. Greater
diversity results in lower cohesiveness causing by diversity in age, gender, race,
education, prestige, social class, attitudes and beliefs. If the positive social behaviour is
affected by cultural diversity the performance of individuals and organization is likely to
suffer.
Detifano et al (2000, p.45) cited that members of multicultural teams differ from each other
in the ways such as, gender, thinking style, function or profession. They emphasised that,
cultural differences are prominent to global teams in two ways. Firstly, the cultural
differences in multicultural teams affect the interaction among the members of the team.
Each member has a different cultural norms and values which affect the his interaction
with other people when they come together as a team. Secondly, cultural differences also
is a source of greatest potential for creating value. Diverse workforce brings enormous
wealth of material and diverse ideas which help organizations to meet challenges. Fatehi
(1996, p.158) mentioned that successfully managed cultural diversity increases
competitiveness for organization and improper management of cultural diversity could
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lead to enhanced creation of conflicts and miscommunication within team members.
According to him the cultural diversity may bring the following benefits for organization:
Reduced cost
Resource acquisition
Marketing advantage
Creativity
Problem solving
Organizational flexibility
Adler et al (2008, p.101) believe that cultural diversity can has positive as well as negative
impacts on project team. Misjudging cultural differences may lead to inappropriate, racist,
offensive, ethnocentric attitudes and behaviours. Properly managed cultural differences
has the positive effects and ignoring it can be unproductive. Multicultural teams may enjoy
process benefits such more ideas, better ideas and less group thinking. Aghazadeh (2004)
cited that diverse work can be more creative and innovative for a organization. People
from different cultural backgrounds can easily find solution to a problem with the help of
diverse ideas and would be effective to reach a common solution. Companies with more
diverse workforce bring diverse ideas for which organizations search to make profit and
gain competitive advantage. Multicultural teams can easily adapt to changes and more
flexible. On the other hand, it brings some disadvantages to the company, groups or
teams. Diversity can increase and cause conflicts in groups or teams, conflicts arise due to
differences in culture and all these differences contribute to problems in teams.
Cox (1991, p.34) argued that, the impacts of diversity can be positive as well as negative.
Effective and better decision making, creativity, innovation, foreign market success and
better distribution of economic opportunities are some of the major benefits of diversity in
the global context. Diversity can potentially increase interpersonal conflicts,
communication problems and cost. Sackman et al (2007) argued that, due to
internationalization and globalization project teams are composed of different national and
organizational backgrounds. The heterogeneity or cultural diversity in project teams can
impede the process of knowledge sharing among team members. They examined three
dimensions of culturally based influences, which are:
Emotionally based influences;26 | P a g e
This factor affects the interaction process within project team. When people come
together their identities still rooted in because of different cultural background.
Cognitive influences;
It means the cognitive structure of team, which is shared among the members of
project team. For example, the common language that they use for communication.
Experience base influences;
These influences also affect project teams while managing cultural diversity.
People’s previous experience is important which includes knowledge and skills
developed in past projects.
Salas et al (2009, p.214) mentioned that, multicultural teams can provide many
advantages to organizations giving potential for diverse information which serves as
facilitating way for team adaptation. But sometime existence of diversity in multicultural
teams may decrease social interaction, trust, communication and cause conflicts among
members. Mendenhall et al (2001, p. 159) argued that, culturally diverse teams can give
be effective and give better performance than culturally homogenous groups. If the
multicultural teams realise the potential then it can give effective performance on complex
decision making tasks. Cultural diversity offers potentials for better performance and can
bring creativity for organizations.
Gannon (2001, p.1) emphasised on the importance of culture or cultural diversity in team
performance and its implications for organizations. He mentioned that, many people do not
assume the culture is important for organization. They think that all individuals are similar
across cultures which is not true. According to him, culture or cultural diversity has major
impact on the effectiveness and performance of team. Groups or teams consist of
members from the same culture cannot be more effective in delivering their performance.
On the other hand, multicultural teams can bring high potential for to be more effective and
productive for organization to achieve its goals and objectives. Schneider et al (2003,
p.218) illustrated that, multiculturalism in groups or teams can bring different thoughts and
ideas and may result in minimising uniformity and pressures than can be occurred in
teams where individuals come from same cultural backgrounds. Further suggested that,
bringing individuals from diverse cultural backgrounds can be a good solution to problems
and complexities. Appelbaum et al (1998) argued that, those companies are more
innovative and creative which support diverse workforce. Diverse workforce brings
different backgrounds, interests, different point of views. This cultural diversity at
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workplace can provide mixture of ideas which bring new ways to solve the problems and
encourage growth of creativity. And diverse workforce can enhance the organization’s
ability to operate in domestic as well as global market. Loosemore et al (2004, p.70)
stated that, the mismanagement of cultural diversity can bring serious consequences and
it can increase stress among workforce, confusion, confrontation, conflicts within team. On
the other hand it can give a competitive advantage to organizations those manage it
successfully.
Culturally heterogeneous project teams can perform better than the homogenous groups.
Multicultural project teams can bring variety of perspective, skills and personal attributes.
High quality brainstorming and new ideas can be the result of culturally diverse teams.
Multicultural project teams can increase productivity and creativity (Ochieng 1999, p.451).
culturally diverse project teams can be more creative and innovative where everyone alike
and brings different thoughts and ideas. The members from different cultural backgrounds
come up with different and alternative solutions to the complex problems. The diverse
groups can easily adapt to changes and improve organizational productivity. On the other
hand, the homogenous groups do not face language barriers because they speak the
same language. People feel comfort with other fellows who have same beliefs, values,
language, and appearance (Miller 2000, p.20).
2.6 BARRIERS WHEN MANAGING PROJECTS
The cultural differences between people from different cultures may complex. The socio-
cultural clashes can be resulted in misinterpretation, frustration and conflicts among
individuals in project teams. The project manager can face cultural shocks when
appointments are not met, when delay of two hours is not unusual, stopping work for
prayers twice a day and where intertribal conflicts lead to intergroup conflicts on the work
site. Therefore, cultural shocks, time differences, geographical disperse teams, language
barriers, competition between members, confrontation and miscommunication are the
issues often result in wastage of valuable resources and delay in completion of projects
(Hossein et al 1992, p.81). Avoiding cultural stereotype, which is the composite of words or
phrases which have negative or positive connotations, is essential for promoting
comprehension between team members (Miller et 2000, p. 21).
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As per Najafbagy (2008, p.147) language, religion, values and norms are the factors which
are important while dealing with other nations or cultures. These factors can help in
intercultural understanding and problem-solving among different cultures. Lack of attention
to these factors can cause miscommunication among people from different nationalities.
Saji (2004, p.43) mentioned two aspects of cultural differences which affect the
performance of team. First one is demographic differences including, age, sex and race
that related to team outcomes. Second, psychological differences including personality
attitudes, values, and beliefs which the individuals bring to project team. These factors can
affect the time orientation while working in a group, because every culture has a different
time orientations which individuals bring to their work environment and that is the important
aspect of cultural diversity which may cause impacts on team performance. Knippenberg
et al (2004, p.1008) stated two kinds of cultural diversity which have impacts on group
work, social diversity factors and informational/functional diversity factors. Social diversity
factors includes, sex, age and ethnicity. On the other hand, the functional factors include
hidden dimensions which mostly job-related such as educational background,
informational and expertise of a person. According to them, these both kinds of diversity
can be linked to performance of group or team. In some cases the social factors have
positive impacts on the performance but in some of them it is proved negative.
Baba (1996) argued that cultural differences and social environment most of the time
cause problems in projects. The differences such as language barriers, religious
differences, differences in traditions increase the complexities and problems in
multinational projects. Therefore the important element is culture and cultural diversity in
the context of multicultural project teams. According to Eriksson et al (2002, p.54)
differences in language, time zones, organizational and personal cultures, policies,
regulations, business processes and politics are the challenges in geographically disperse
projects. They further mentioned cultural differences, distance problems, communication
and leadership are the other challenges and problems in multicultural projects. Cultural
differences further divided into three which are challenging for managing projects;
professional or functional culture, country of origin, and corporate culture.
Miroshnik (2002) identified cultural values, religion, education, language and social
structure are the important attributes or elements of culture. And these elements can
create complexities in international business environments. According to him, different
cultures appeal for different managerial behaviours and to manage multicultural
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environment needs correct appropriate adaptation. Mullins (2005, p.44) cited that, mistrust,
miscommunication and process difficulties may occurred due to cultural diversity when
multicultural teams operate in business settings.
2.7 CULTURAL DIVERSITY AND CROSS CULTURE COMMUNICATION
Cultures provide the basis the way people communicate and interact with each other.
People from different cultures have different languages and communication styles and
differences in cultures can create misunderstanding among people (Schuler 2004, p.130).
Cultural diversity may cause the interaction between team members more complicated
and difficult because the members act upon differently based on their cultural
assumptions. Problems in communication due to cultural diversity make compromise and
agreement more difficult among team members. Poor communication can create
misperception, misinterpretation, misevaluation and miscommunication (Moran et al 1993,
p.65).
Bhattacharyya (2010, p.171) defined communication as the process of commonness or
commonality. The process through which individuals transmit to modify the behaviour of
other individuals. Cross culture communication takes place when people come from
different cultures. People from different cultures bring different values, beliefs,
expectations, feelings and communication styles. These cultural barriers can affect the
communication within team members. According to Moran et al (2007, p.48) intercultural
communication means when individuals from different cultural backgrounds share
meanings. Further, intercultural communication refers where individuals come from
culturally different backgrounds.
Communication is the process of transmitting messages through different media such as
words, behaviour, or material artefacts. Communications is necessary for coordinating,
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disseminating information to motivate and negotiate with people. Cultural communications
are complex than spoken or written messages. Effective cross culture communication
more depends on giving right responses rather than sending right messages. He
confirmed the existence of cultural noise in cross cultural communication which means the
cultural variables that cause problems in communication. (Deresky, 2006, p.118)
Fatehi (1996, p.193) mentioned that, communication consists of verbal and nonverbal
communication. Differences in culture change the communication patterns. Differences in
nonverbal communication among people can create misunderstanding. Najafbagy (2008,
p. 146) argued that, many conflicts arise because of cultural differences and
communication in the world. Communication is one of the influential problems among
nations. Communication is even complex within similar culture, it is more complex and
problematic when take place between two cultures. Tone et al (2009, p.344) emphasised
on the importance of communication in international construction projects that,
communication is the one of the challenges faced by international construction project
managers. According to them, high scale construction projects require high degree of
coordination and effective communication. Language and cultures are the two elements
that make international environment further complicated. Effective communication is
necessary for sharing ideas, knowledge, and behaviour is modified and change is affected.
Tran et al (2002, p.2) cited that communication should be given special importance in
global context. The difficulties arise due to differences in people from different cultural
backgrounds. These differences create problems in conveying messages and meanings
between diverse workforce working together.
Sriussadaporn (2006) argued that, for effective communication in global business
environment we have to understand culture and subculture. Cultural differences and
diversity and intercultural sensitivity are important elements for cross culture
communication. The communicators should recognize culture and cultural diversity.
Cultural values, attitudes, expectations, and norms are associated with international
workplace communication. Gupta (2008, p. 80) emphasised the importance of
communication in multicultural teams and mentioned that, effective communication is the
biggest challenge for multicultural teams due to different communication styles in different
cultures. While working in multicultural environment needs to understand that people
communicate differently. Understanding these different styles is the first element for
effective project team. As per Griffin et al (2005, p.93) cross culture communication
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whether verbally or nonverbally is equally important for international business
management. Cultural differences among people can increase the chances of
miscommunication. Non verbal communication is the element which cause and lead to
misunderstanding among people from different cultural backgrounds. Ochieng et al (2009,
p.450) argued that, cross culture communication in multicultural project teams is complex
due to widely separated geographically and having dissimilar organizational and regional
cultures. These geographical separations create challenges in communication process.
Meredith et al (2010, p.140) stated the importance of language in the context of managing
projects across borders. According to him, language is complex element which includes
words, signs, symbols, movements of body are the things through which we communicate
to other people. The ways in which we send and receive messages are important parts of
communication. Therefore, language and communication are closely linked terms. As per
Mendenhall et al (1995, p.81), language plays an important part in socialization of people
in every culture. Language is an important source of communication for people and
communication is essential in international business and projects. Further illustrated that,
different languages is the main challenge for multicultural organizations. Rugman et al
(2009, p. 145) mentioned that, differences in languages can be the most prominent factor
and barrier which affects communication, cooperation and coordination. By overcoming
these barriers miscommunication can be removed. Lewis (2006, p. 63) referred language
is a factor which cause communication problems and therefore it is considered as a tool of
communication.
2.8 SUMMARY
The concepts of culture and cultural diversity have been presented in the context of
projects in this chapter in order to provide a clear understanding and information when
presenting the developed study the influences of cultural diversity on project management
team. This chapter includes cultural diversity and project management, importance of
cultural diversity management, impacts of cultural diversity on project team performance,
cultural barriers and importance of cross cultural communication.
Project teams composed of people and members from different cultural backgrounds and
it can be more innovative and superior than homogenous project team if properly and
effectively managed. In globalised environment those organizations which adapt to the 32 | P a g e
cultural diversity can get competitative advantage. Developing cultural sensitivity,
managing communication across cultures and management of culturally diverse teams are
challenges in management of projects. Project managers must understand how to manage
cultural diversity in projects.
CHAPTER 3- METHODOLOGY
3.1 INTRODUCTION
The research objective is to critically examine the impacts of cultural diversity on project
management team performance. For achieving this overall objective the researcher must
needs to study and understand role and importance of cultural diversity in the context of
multicultural projects and its impacts on team performance.
The purpose of this study is to analyse the impact of cultural diversity in project team. This
is conducted interacting with project managers and other team members having involved
in various multicultural teams. This research used two important methods for collecting
data: a questionnaire and face to face interviews.
3.2 THE RELATION BETWEEN THE RESEARCHER AND THE RESEARCHED
In this research study the Researcher is an observer i.e. not being actively involved or a
member of project team but he can understands the things by interacting with those being
Researched who are actively involved in this project and member of project team. The
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interaction with people who are part of project team can give a better understanding for
achieving the objectives of this research.
Culture, being an important but complicated element in international business includes
projects when they launched across borders. The Researcher needs a good
understanding and study of cultural factors affecting project team performance. In order to
address the objectives of this research, the researcher will focus on research activities
such as interviews and questionnaires for collecting data and information which are more
reliable sources, therefore making the study consistent and effective. The research
success depends upon the relation and willingness of researched to cooperate with
researcher. There is possibility for potential conflicting interest and perspectives which
undermines research. But an attempt will be made to collect complete and reliable
information which will help us in reaching the objectives of this research study.
An important question arises that, what does the Researcher need to know or
understand?. Concerning this topic of cultural diversity in project management team and in
this particular case the Researcher will make an effort to understand it from different
aspects, he will need to employ the methods that enable him to understand all aspects of
cultural diversity relevant to project team performance. For example, how people consider
cultural diversity in project team, they have positive perception about diversity or consider
it as negative factor. It may inevitably lead to perception that there is mixed relationship
between team performance and cultural diversity.
This chapter includes the following concepts:
The research philosophy
The research strategy and design
3.3 RESEARCH PHILOSOPHY
According to Guba et al (1994, p.105) which research methods should be used is of
secondary nature, the primary or basic question is research paradigm that which paradigm
is applicable to research. Research paradigm is the basic belief system or world view
which guides research in choice of method as well as research assumptions. This term is
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related to the knowledge development and the nature of that knowledge. It is based on
some important assumptions about the way in which we make our world view.
3.4 REASON FOR CHOICE OF RESEARCH
Positivism, Phenomenological and Pragmatism
As per Guba et al (1994) there are many debates have emerged in social and behavioural
sciences regarding the importance of two known major research paradigms. These
paradigms are known as the positivist/ empiricist approach and constructivist/
phenomenological approach.
Remenyi et al (1998, p.32) mentioned that, positivist approach or paradigm is based upon
physical and natural sciences. This concept refers that the researcher is working with an
observable social reality which leads to derivation of laws. Therefore positivist paradigm
underlies quantitative methods. Further mentioned that, positivism emphasises on
quantifiable observations that lead to statistical analysis. One of the limitations of this
paradigm is that, it is not applicable and useful for research in social sciences which does
not give interesting insights into complex problems in the field of business and
management studies. On the other hand, according to Remenyi et al (1998, p.34)
phenomenology also known as descriptive/ interpretative approach is in contrast to
positivist approach. Phenomenology is a concept that which advocates the study of direct
experience taken at face value and behaviour is the determinant of phenomena of
experience rather than by external objective and physically described reality. This
approach focuses on the primacy of subjective consciousness rather than on objective
reality unlike positivist approach. This approach underlies qualitative methods. This
paradigm is useful while doing research in social sciences and it is important in the
business and management arena.
As Remenyi et al (1998, p.37) referred that, the philosophical orientation that we adopted
has an important role in business and management research and the researcher should
establish his or her approach early on in the research process. Whatever approach
positivistic or phenomenological is taken depends on the background of the researcher. If
the research work falls within natural sciences then the researcher will be comfortable with
a positivistic research paradigm, but if it falls within sociological field then the
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phenomenological/ post-positivistic approach may be right choice. It means that these
both research paradigms have their limitations and drawbacks. Tashakkori et al (1998,
p.3) argued that the debate or discussion between positivistic and phenomenological
research paradigm is sometime called qualitative and quantitative debate.
The mixed method approach including qualitative and quantitative emerged because of the
end of paradigm wars. This new paradigm is known as the pragmatism approach which
combines qualitative and quantitative. According to Tashakkori et al (1998, p.4) to put an
end to the war between these two paradigmatic positions have been a source of
discussion. Many researcher in education and evaluation have offered the compatibility
thesis based on a new paradigm and such paradigm is known as pragmatism. With the
emergence of this new paradigm some researchers (Guba & Lincoln 1994) have signalled
an end to the paradigm wars. Therefore, pragmatically oriented researchers now discuss
about mixed methods or mixed methodology which includes the elements of both
qualitative and quantitative approaches. Creswell et al (2005, p.3) defined mixed method
research is a research methodology for collecting, analysing, and mixing of data which
includes both qualitative and quantitative data in a single case study or multiple case
studies for better understanding of research problems.
For this research which is to explore the impacts/ influences of cultural diversity on project
management team based on a comparison of companies , we adopted the mixed methods
approach (i.e. pragmatism). The rational for choosing this approach is we need to work
and collect both kinds of data i.e. quantitative and qualitative data. And this approach is
the relevant one to this research work.
While using mixed methods which combines qualitative and quantitative approaches to
data collection the authenticity and credibility come through triangulation. Triangulation has
two main approaches, the sequential and parallel. In sequential approach, quantitative and
qualitative methods are used one after another. And in case of parallel approach both
methods are used at the same time, quantitative and qualitative data are collected at the
same time and analysed in complementary manner. In this research study we used
triangulation, where the researcher first collect important information through employees’
interviews (Appendix C for designing qualitative interviews) which is the qualitative study
(non-numerical) that explains the concepts and issues in the research. The semi-
structured interview allow the respondent (member of project team) to talk about issues/
problems regarding cultural diversity in project management team. Specific and important 36 | P a g e
questions were design to address for this purpose. Through survey the quantitative
(numerical data) collected in order to improve the credibility of this study. Then the
qualitative approach used to explain the questions arising from statistical analysis
(quantitative). Biber (2010, p.4) the researchers look the convergence of data from
interviews and surveys through triangulation for validity and complementary of qualitative
and quantitative data gives better understanding and comprehension for a research study.
3.5 RESEARCH STRATEGY AND DESIGN
Case Study Approach
According to Benbasat et al (1987, p.370) there are three important reasons for the
viability of case study approach; Firstly, it is important to study the phenomenon in its
natural settings, secondly, the researcher can ask the questions like how and why to
understand the research study, and thirdly, research is being conducted in the field where
few if any previous studies have been undertaken.
Yin (1994, p.20) referred five components of research design which are essential for case
study approach that include:
Research question
Its proposition, if any
Its unit(s) of analysis
The logic linking the data to the propositions
The criteria for interpreting the findings
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All these important components should be combined before adopting a case study
approach. Exploratory case studies are better for single cases as well as comparative
case studies, which require multiple data collection methods, which results converge in
order to establish construct validity. There are four tests for the quality of empirical social
research:
1. Construct validity- it refers to establish correct operational measures for the
concepts which is being studied. It is concerned with exposing and reducing
subjectivity, by combining and linking data collection questions and measures to the
research question and propositions.
2. Internal validity- (not applicable to exploratory or descriptive studies) based on
certain conditions establishes a causal relationship which leads to other conditions,
as distinguished from spurious relationships.
3. External validity- This is related to the domain to which a study’s findings can be
generalised. Generalisation is based on replication as mentioned earlier.
4. Reliability- This demonstrates that the operations of a study, the data that is
produced can be repeated with the same results. Through the thorough
documentation of procedures and proper record keeping can be achieved. A single
case study research design and single experiment is similar. Single case study
appropriate when the case is special for some reason. It is possible when the case
provides a critical test to a well established theory or the case is unique and
something special to reveal.
Yin (1994, p.78) illustrated the following data collection methods in the case study
approach which includes:
Direct observation
Indirect observation or measurement of process
Interviews; structured, semi-structured and unstructured
Documentations, such as written, printed, and electronic information available
about the company
Records and charts related to the case
According to Creswell (1995, p.177) there are four mixed methods designs, such as:
First is the Sequential studies, this design consists of two phase studies where the
researcher first carries out the qualitative part of research followed by quantitative part or 38 | P a g e
vice versa. But these two phases are separate. In second which is the Parallel studies,
the researcher carries out both the qualitative and quantitative parts/ phases at the same
time. Third is the Equivalent status designs, in this design researcher combines both
qualitative and quantitative data collection methods in a equivalent manner to understand
the phenomenon/ research work under study. Dominant- less dominant studies are
carried out by researcher using a single dominant research paradigm but with a small
component of the overall study from an alternative design.
There may be a contrast between sequential studies and parallel triangulation while using
methods at the same time and findings from one method provide confirmation for findings
from the other method. As per Denzin (2009, p.301) there are four types of triangulation:
Data triangulation, it refers that using variety of data sources in a research/ study,
Investigator triangulation, it means the involvement of multiple observers or researchers,
Theory triangulation, this involves the use of multiple perspectives and the use of
hypothesis to describe inferences from data, and finally Methodological triangulation, it
refers the use of more than one research method in a study.
This research study commenced with the qualitative exploration of what are the cultural
factors that influence the project management team. It began with data collection using
information from documents and semi-structured interviews (Appendix D semi structured
interviews strengths and weaknesses) with project management team members, staff and
engineers working in the projects from countries and backgrounds. This phase of the
research helped in gathering and generating information about cultural factors/ elements
which have impact and influence on project management team and its performance. The
results from this phase were used to shape well structured and quantifiable survey in order
to collect quantitative data. Then both qualitative and quantitative data used for analysis of
the research study. In this research work we used data triangulation employing mixed
methods approach.
According to Miles & Huberman (1994, p.10) the qualitative research methodology is
consists of three flows of activity, which are:
Data reduction
Data display/ presentation
Inference/ verification
Data reduction39 | P a g e
This is the process of selecting, focusing, simplifying, and transforming the qualitative data
in order to facilitate the process of inference. It is continuous process throughout the life of
the research study and even after the field until the final study is completed. In this
research study the data is being reduced to collect the meaningful and useful information
about the cultural diversity in project management.
Data display/ presentation
It refers the organized way of collecting data/ information that permits conclusion drawing
and action. According to them it is the organized compilation of information which helps in
inference and process action. As the semi structured interviews provided qualitative data
through the research questions and results from survey presented in a statistical form for
clarity purpose.
Inference/ verification
This activity is about conclusion drawing and inferences. This is the final stream where
qualitative and quantitative analysis use for inferences and verifying data.
This research process involved semi structured interviews with project manager,
members of project team from China, Saudi Arabia and Pakistan. Interviews with different
people from cultural backgrounds can help us to understand in a better manner the cultural
diversity factors and its impacts on project management. Therefore we selected members
from both organizations. Then the survey form completed from staff working in the project
choosing two samples from each side. The reason for using survey/ questionnaires is to
know that what and how cultural factors affect project management team performance.
3.6 QUESTIONNAIRE
The well structured survey instrument consists of a questionnaire that composed of
eighteen items. Fifteen of those will address the objectives of this research. And the
remaining three questions are for demographic purpose. In order to capture the
participant’s reality when working in diverse environment in project team, we construct the
questionnaire which is based on information obtained through the literature review. The
questions focused on to obtain participant’s experience and opinion in the following points:
40 | P a g e
Cultural diversity factors present in projects- the researcher intention to know
the participant experience with cultural diversity factors when working in a team.
The literature review in chapter-2 which includes research on cultural diversity
factors. As the research shows cultural factors may be present when working in
teams and may impact the development of project. Table 3.1 shows some of the
studies and cultural diversity factors as mentioned.
Table 3.1: Cultural Diversity Factors
Miller (2000) Knutson (2001)
Different nationalities
Language barriers
Religion
Race
Education
Politics
organization
Physical distances
Attitudes
Beliefs
Organizational culture
The research question design in order to address these cultural diversity factors
was: which of the following cultural diversity factors are present in your team?
Areas of project most impacted by cultural diversity- the project life cycle (five
phases of project) presented in the questionnaire were: initiation or defining,
41 | P a g e
planning, execution, controlling and closure of project (Kuehn 2006, p.13). The
participants needed to choose the area of project most impacted by cultural
diversity using a scale from one to three (one the most important).
Cultural barriers that impact project performance- the researcher has intention
to know and capture the participants’ experience with cultural barriers that affect
project performance when working in teams. As the literature review shows various
authors establish cultural barriers that impact project performance and delay the
completion of projects. Table 3.2 presents some barriers and authors:
Table 3.2: Cultural Barriers
Hossein (1992) Eriksson (2002) Mullins (2005)
Time differences
Geographical differences
Language barriers
Competition of members
Confrontation
Miscommunication
Cultural shocks
Language differences
Time zones
Organizational culture
Policies
Politics
Business processes
communication
Mistrust
Miscommunication
In order to obtain specific answers from participant the questionnaire included
fifteen ended questions for this purpose. Does or does not cultural diversity exist
when working in teams, whether or not cultural diversity has an impact on project
management and whether or not the participants think cultural diversity initiate
42 | P a g e
conflicts between team members. For details on questionnaire it is enclosed in the
Appendix 1.
For validation of the questionnaire a sample group was used. The sample group
was selected from the target population and questionnaire was given randomly.
After the completion of questionnaire by participants the responses were
processed. And some adjustments were made in the instrument based on these
feedbacks.
3.7 INTERVIEWS
Project managers and other members of project team on both sides interviewed using
semi structured interviews. A list of questions was prepared to get specific information
from culturally diverse people when working in project team. The purpose of these
interviews was to know and compare the practice of multicultural project team. A list of
interview questions included in Appendix 2.
In Chinese company one (1) project manager and two (2) project team members
were interviewed. The manager interviewed has twelve (12) years of experience
working in project management, and multicultural environment. The other members
interviewed have more than ten (10) years of experience working in project
management and multicultural environment and team.
In Emaar Properties, one (1) project manager, one (1) leader and one (1) member
of the project team were interviewed. All these participants have the experience of
working in project management and they have been involved in various projects
with Pakistani and Japanese.
3.8 THE SAMPLE
In this research the sample was selected from both companies: Chinese company and
UAE Emaar Properties Group. The Chinese Harbour Engineering Company is a
multinational corporation having and taking construction projects in different countries
including Pakistan. They employ team members from different educational, social
43 | P a g e
backgrounds and different nationalities for planning, monitoring and completion projects.
The target sample size was composed of 350 members of project team working on this
project.
3.8.1 SAMPLE SELECTION
The Chinese Harbour Engineering Company (CHEC) is a world-wide contractor and it has
more than thirty overseas branches and offices with business activities in more than 70
countries. The company is employing more than 6000 employees who include domestic
and international staff having diverse backgrounds and nationalities. The company is
undertaking projects worth billions of US dollars in Marine engineering, Harbour projects,
railways and airports. This is successfully doing different projects in overseas and
Pakistan. The selection for this company is that due to its operation in different countries
and experience of projects. And it is also operating in multinational environment, which
integrates cultural diversity and project management.
On the other hand, Emaar Group Properties is a multinational U.A.E based company
operating in almost all Gulf countries and in Pakistan. This company incorporates staff and
employees from various countries including, Saudi Arabia, Pakistan, India and Jordon.
In order to comply with confidentiality, the participants’ names kept anonymous and
companies will be named as: C for China and E for Emaar. The results were:
In Chinese company, the participants were reluctant to be part of this study and
constitutes the population of 150 participants.
In Emaar Group, they accepted to be part of research study and constitute
population of 200 participants.
3.8.2 SAMPLE SIZE
Following is the formula that we used to determine sample size:
n= Z² α/2 (PQ)/ E²44 | P a g e
Where:
n=the sample size
Z= standard error related with chosen level of confidence
P= population proportion
Q= (1-P)
E= error of estimation
The level of confidence used in this study is 95%. This level of confidence means that the
researcher is 95% confident that actual population falls within the range of ± e around the
percentage that we found in the sample. The z value means 95% of confidence is 1.96.
Before study the value of P is unknown, if the P is not known the researcher use 0.5 as an
estimated of P and therefore q estimated q= 1-0.5= 0.5. The acceptable error makes the
desired level of accuracy and this explains how accurate our sample estimate (%) is in
relation to this population. In this study we used 10% the error of estimation.
The sample size of this study was ninety six (96) individuals, which is calculated based on
the formula as discussed earlier. n=1.96²(.5 x .5) / (.10)² =96. As we know that the
population (potential participants) in Chinese company is one hundred (150) participants
and two hundred (200) on the Karachi Harbor Bureau, the represents 27.4% of the
participant’s population. It was calculated as: 96 sample size/ 350 population= 27.4% and
the sample exceeds the 5% rule.
To ensure the appropriateness of sampling method, the questionnaires were randomly
distributed in the participants.
In Chinese company- from one hundred (100) questionnaires about ninety (90) filled
questionnaires were received. The rate of response was 90%.
In Emaar Group- from hundred (100) questionnaires a total of 95 answered
questionnaires were received. The rate of response was 95%.
The both responses from the companies are satisfactory and we can conclude that an
appropriate sample size was reach.
45 | P a g e
CHAPTER 4- FINDINGS AND ANALYSIS
4.1 INTRODUCTION
This chapter consists of two main areas: Face to face interviews and Questionnaire. The
face to face interviews explores how the company manages projects through their project
team members and what they think about the impacts of cultural diversity on project
management team. On the other hand, the questionnaire shows demographic data, it also
analyzes the research objectives and confidence intervals are used to analyze and
conclude results.
4.2 FACE TO FACE INTEVIEWS RESULTS
Interviews were conducted being an important part of this research study in order to
evaluate the attitude of managers and members of project team toward the cultural
diversity and its impacts when managing project teams. Using the interviews responses
from both sides, the researcher can understand how the projects are managed, how teams
are put together from different cultures and if people believe cultural diversity is a
challenge or think it impacts on the project management team.
46 | P a g e
4.2.1 CHINESE COMPANY
The company used for this research involves in construction projects in different countries.
The interviews conducted with individuals the project manager and project team members.
The selection was made on the basis of experience and involvement in multicultural
project teams. The project manager has the top authority and responsible for managing
project. The projects, which are managed in this company, are mostly for government and
local bodies. The projects duration can be long term and medium term usually more than
one year. The company’s top management approves the different projects which are to be
developed and then transfer these projects to different company areas and their respective
project managers. The main task of these managers to study the need and assign these to
different members in the company.
The selection of team members depend on the requirements and scope of the projects.
The project managers identified some of the characteristics such as, technical skills and
knowledge, teamwork, previous experience and organized communicators which are most
important for development of project teams. The team members could be located at
different departments or sites location of the project. The managers assigned the team
members with different tasks and also select the team leader who is responsible for
schedule and to make aware team members of it. Time and budget are the elements
which are essential for completion of projects.
The most common communication methods used are: e-mail and phone and sometimes
video conference. But in Pakistan people prefer to communicate through phone and there
is low tendency in Pakistan to communicate through internet. One respondent mentioned
that it is important to maintain communication documentation among team members.
Further mentioned some meetings are hold at the beginning or ending of important
milestones throughout the development of projects. Managers’ presence is important in
these meetings. Proper documentation maintained of discussion to make changes in
projects. The company has specific guidelines and procedures to be followed by all team
members.
In interviews manager and team members were asked if they think that there are
challenges when managing the projects and if they believe that cultural diversity has an
impact on the development of projects. Some specific answers were provided by
47 | P a g e
participants and to maintain the confidentiality of the respondent we mentioned M and TM
(M= Manager, TM= Team Member).
1. Are there any challenges when managing projects?
M: ‘Yes, three factors time, budget and resources are a challenge’.
TM-1: ‘The meeting time is a challenge when managing projects, the reason is
meetings are more time consuming and it also depends on culture. As in the
case of Pakistan these people do not care about time. And they are not too
formal. Language and communication are also challenges’.
TM-2: ‘How to deal with different point of views and reach to consensus is a
challenge’.
2. Do you believe that cultural diversity has an impact in the development of projects?
M: ‘It brings new and potential ideas but in long term and pressures in a short
term. If it creates new ideas and thinking that is good’.
TM-1: ‘Cultural diversity promotes different point of views. It also helps in
understanding different cultures which adds value to the project. But there
should be norms and rules to manage it effectively.
TM-2: ‘Diversity brings new ideas and ways to the projects. If everyone thinks in
a same way then it does not work. But members’ interaction with each other is
the most important for it’.
As the three participants’ response suggest that to manage diverse project teams is a
challenge and they believe that cultural diversity impacts the development of projects. As
discussed earlier, technical knowhow and skills, teamwork, previous experience and good
communicators are important characteristics for development of projects.
4.2.2 THE EMAAR GROUP PAKISTAN
The Emaar Group of construction companies used for this research which is undertaking
different construction projects in Islamabad and Karachi. This organization involves in 48 | P a g e
short term and medium term projects. The interviews were conducted with individuals from
this project team including one project manager, one leader and one team member. They
were selected on the basis of their work experience and their involvement with
multicultural project teams in various projects. In this company the project supervisor has
the authority in the project. The supervisor selects project team leader who maintains the
communication among team members.
In this project team the members are selected based on skills to develop tasks and to
perform tasks during the time period. The interview participants identified the most
important characteristics for development of project teams are: technical knowledge,
teamwork, proactive attitude and cross cultural communication.
The most common communication methods used in company are: e-mail and phone. But
phone calls are properly recorded to keep a record for clients. The project leader maintains
the good communication with project team members.
The participants were asked if they think that there are any challenges when managing the
projects and if they believe that cultural diversity has an impact in the development of
projects. Specific answers were provided by respondents and identities have been kept
confidential. We will use the terms M, L and TM (M=Manager, L=Leader and TM=Team
Member).
1. Are there any challenges when managing the project?
M: ‘Yes, restrictions from clients as time and budget available for project’.
L: ‘The triple constraint (time, budget and quality) is a challenge but
sometimes language and cross cultural communication is a challenge’.
TM: ‘The integration of team members is important which needs more time’.
2. Do you believe that cultural diversity has an impact in the development of projects?
M: ‘I think yes, but it needs good communication and management of cross
cultural communication among members. Miscommunication could delay the
completion project’.
49 | P a g e
L: ‘Language and communication may impact the project and it may cause
delay in projects’.
TM: ‘I believe cultural diversity brings new ideas and thinking. But effective
communication (cross cultural communication) needs to understand new
point of views’.
As responses from three participants suggest that managing a diverse project team is a
challenge. The participants believe that cultural diversity has an impact on the
development and management of projects. According to them good and effective
communication skills are require to manage projects.
4.2.3 SUMMARY OF INTERVIEWS
The results of the face to face interviews signify that people from both sides aware and
value cultural diversity and it has an impact on project management team. As a part of
cultural diversity these project teams integrate members from different backgrounds into
management of projects. The phone and e-mail are used as main communication methods
within project teams. Technical knowledge is the main and important characteristic for the
development of project teams.
4.3 QUESTIONNAIRE RESULTS
Questionnaire consists of 18 questions was the main source for collection of primary data
in this research. The questionnaire was distributed among the members of project teams.
Fifteen out of eighteen questions allow for analyzing the objectives of this research. Rest
of the questions are for demographic purpose. It is necessary to mention that from a total
of 100 participants, eighty percent (80%) of the participants are not present at the same
physical location.
c
4.3.1 DEMOGRAPHIC DATA50 | P a g e
This section shows the demographic profile of all participants. The demographic variables
include were age and experience working in project teams.
Employees’ age were measured by interval scales. Table 4.2 shows the interval and
percentage of the participants in each interval. The largest percentage was between 26 to
40 years. The demographic data represents that most of the participants were young
people.
Table 4.1: Age of Participants
Age
25 years or less 3%
26 to 40 90%
40 to 50 7%
51 or more 0%
We also used interval scale for measurement of participants’ experience working in project
teams. Table 4.3 shows the intervals and the percentage of the participants in each
interval. The largest percentage of participants had experience is 5 or more times.
Table 4.2: Experience working in project teams
once 0%
2 or 4 times 9%
5 or more times 91%
4.3.2 Cultural diversity factors which are present in project teams
The main intention of using Questionnaire to identify if the team members or participants
recognize the cultural diversity factors, which we discussed in literature review in chapter-2
51 | P a g e
as present in project teams. Figure 4.1 represents those factors and the frequency of the
responses using a bar chart.
The participants selected all factors but the most frequent selected factors were: different
backgrounds (92) and language barriers (89) and different nationalities (68). The results
support the researchers Salas et al (2009, p.213) defined multicultural team a team
composed of members from different cultures and nationalities.
Cultural
Diversity factors
Figure 4.1: Frequency of cultural diversity factors
The participants expressed that having academic or professional experiences in:
Business, computer engineering, Engineering, Mathematics and Science. Some of the
participants had educational background in more than one area of study. As we previously
stated that eighty (80%) of participants belong to projects where all project members do
not present in same physical location. Most of the participants expressed that there is 52 | P a g e
Different b
ackgro
unds
Langu
age differe
nces
Different n
ationaliti
es
Time z
ones
Space
and to
uching differe
nces
communication ve
rbal &
nonverbal
0%10%20%30%40%50%60%70%80%90%
100%
92% 89%68% 68%
45%29%
more than one nationality in their teams. The nationalities they mentioned were: mostly
people or team members from China and Pakistan and also including from Japan, Saudi
Arabia, Iran and Qatar in both companies.
In order to determine the participants’ attitude to work with people from different
nationalities and backgrounds, we used a five point scale for this purpose such as, very
good, good, acceptable, poor or very poor. Sixty percent (60%) of the participants
mentioned it is very good, thirty five percent (35%) agreed that it is good and five percent
(5%) agreed that it is acceptable working with people from different nationalities and
backgrounds. But none of the participants agreed it is poor or very poor.
4.3.3 Project management phases that may be the most impacted by cultural diversity
According to the project life cycle which has five major phases: ignition or definition of
project, planning project, execution, control and monitoring and closure or completion of
project. These phases identified by Keuhn (2006, p.13).
The largest number of participants agreed that execution phase of the project is the phase
which is mostly impacted by cultural diversity with 40 responses and initiation phase with
35 recurrences. Figure 4.2 shows the details:
Major Impact
Initiating or defin-ing the project
Planning the project
Executing the project
Controlling the project
Completion of project
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
35%
12%
40%
10%
3%Figure 4.2: Cultural diversity impact on five phases of project management
53 | P a g e
These results support the findings of Vonsild (1996), who suggested that the members of
the project team need to take time for looking at possible differences among them and
their consequences at the start-up phase of the project. Further mentioned that, they need
to develop an understanding of each other’s cultural perspectives, jointly defining project
goals and schedule and define the structure taking cultural differences into account.
Vonsild mentioned that it is very important to coordinate information exchange, understand
the involved parties and deal with the conflicts during project implementation or execution
phase.
4.3.4 Cultural barriers that impact project performance
The cultural diversity barriers that may present in diverse project team and cause delay in
projects which we discussed in literature review. Those barriers were: cultural shocks, time
differences, language barriers, geographical dispersion and competition between
members, confrontation and miscommunication. The questionnaire intended to determine
if the participants recognize all those barriers that in fact may delay the completion of
project.
After analyzing the results, the barriers which were recognized by participants as the most
probable to cause impact in the performance of projects, those barriers were:
miscommunication with fifty two (52) recurrences, language barriers twenty six (26),
followed by competition between members with twenty two (22) and confrontation with
twenty (20). Figure 4.3 represents the frequency of the responses from participants.
Cultural Barriers
54 | P a g e
0%
10%
20%
30%
40%
50%
60%
52%
26% 22% 20% 16% 12%3%
Figure 4.3: Frequencies of cultural barriers
4.3.5 Specific Results
In this section we discussed three important and major issues, which were: cultural
diversity does exist when working in teams, cultural diversity has an impact on
development of projects and whether cultural diversity can initiate conflicts between team
members. To statistically analyze the results of these three important issues we used 95%
confidence level to construct confidence intervals. Confidence interval means a particular
kind of estimate a population parameter and which indicates the reliability of an estimate.
4.3.5.1 Does cultural diversity exist when working project teams?
When asked participants if they think cultural diversity may exist when working in project
teams, eighty nine percent (89%) of the participants confirmed that cultural diversity exist
when working in teams. But only eleven percent (11%) respondents answered cultural
55 | P a g e
diversity may not exist in order to avoid different points of view. Figure 4.4 shows these
percentages:
Cultural diversity may exist when working teams?
89%
11%
YesNo
Figure 4.4: Cultural diversity may exist when working teams?
Using 95% confidence interval, we can make the conclusion that the percentage of
participants who consider that cultural diversity may exist when working in teams is
between 87% and 97%. Table 4.4 represents the confidence intervals.
Table 4.3: Confidence Interval-cultural diversity may exist when working in teams?
Variable N Mean St Dev SE Mean 95.0% CI
CD m Exist 100 0.89 0.27 0.027 (0.87, 0.97)
As recognized by participants New Ideas is the contribution which is attributed to cultural
diversity, followed by the different points of view. Ninety five percent (95%) of the
participants expressed that they are strongly agreed cultural diversity not only promotes
56 | P a g e
different points of view but also new ideas that help members of project team to
successfully complete projects.
4.3.5.2 Does cultural diversity has an impact on development of projects?
Some researchers believe that cultural diversity may have an impact in the development of
projects. They suggested that the impact may be positive or negative it depends on
cultural diversity factors involve as: educational backgrounds and experience, different
nationalities and language barriers. When the participants asked if they believe cultural
diversity has an impact on project management. According to the results sixty percent
(60%) agreed and forty percent (40%) disagreed. Figure 4.5 shows these responses in
percentage.
Impact
YES NO0%
10%
20%
30%
40%
50%
60%
70%
Using 95% level of confidence, we can make the conclusion that the number of
participants who believe that cultural diversity has an impact on the development of
projects is between 50% and 70%. Table 4.5 represents confidence intervals.
57 | P a g e
Table 4.4: Confidence Interval-Does cultural diversity has an impact on development of projects?
Variable N Mean St Dev SE Mean 95.0% CI
CD Impact 100 0.60 0.49 0.049 (0.50, 0.69)
Two elements new ideas or different point of views can affect negatively or positively in
development of projects. Consensus among team members is important that how to
manage cultural diversity. There are behaviours as we described in literature review that
minimise the impact of cultural diversity when working in project teams. Which includes:
communication, avoiding stereotypes that promote the comprehension among team
members, openness, patience and self control and importantly understanding cultural
diversity. These behaviours can help in to achieve desired impact level. We used a scale
from one to seven, according to participants the top three behaviours were:
communication was the first which includes cross cultural communication among team
members. According to them, it plays an important role in managing projects, followed by
cooperation, openness and patience and self control.
In order to measure the impact of cultural diversity on development of projects a scale was
used high impact, moderate impact, low impact and no impact. From the total of one
hundred (100) participants, ninety one percent (91%) agreed that cultural diversity has a
high or moderate impact in the development of projects.
The results support the findings of Eriksson et al (2002, p.54). They mentioned various
factors that can affect projects in many ways. While working with geographically disperse
teams, the project members have to deal with many challenges such as language
differences and time zones.
4.3.5.3 Can cultural diversity initiate conflicts between team members?
Project managers’ intention to select team members due to their backgrounds,
performance, skills and abilities. The people who are not used to work in a group can
negatively or positively impact development of projects. When participants asked whether
or no they believe cultural diversity can initiate conflicts between team members, eighty
58 | P a g e
three percent (83%) of the participants were agreed and only seventeen percent
(17%) of participants believe that cultural diversity cannot initiate conflicts between
team members. Figure 4.6 shows these percentages.
Conflicts
83%
17%
YesNo
Figure 4.6: Can cultural diversity initiate conflicts between team members?
Using 95% of confidence, we can make the conclusion that the percentage of participants
that believe that cultural diversity can initiate conflicts between team members are
between 76% and 90%. Table 4.6 represents the confidence interval.
Table 4.5: Confidence Interval- Can cultural diversity initiate conflicts between team members?
Variable N Mean St Dev SE Mean 95% CI
Conflicts 100 0.83 0.38 0.038 (0.76, 0.90)
4.3.6 Summary of Questionnaire Results
In this chapter we presented the participants’ profile and the results that we obtained from
the data. The researcher provided demographic data, results in response to the research
objectives and confidence intervals to evaluate and conclude.
59 | P a g e
CHAPTER- 5 CONCLUSION AND RECOMMENDATIONS
5.1 Conclusion
The main objective of this research is to explore the impact of cultural diversity on project
management. We conducted a study in organizations working under this modality. The
companies selected for this study operate in multinational environment and integrating
diversity in workforce and involve project management. We used face to face interviews
and questionnaire as the source of evidence for collection of data.
The face to face interviews conducted with project managers, leader and project team
members represented that these organizations are aware and value of cultural diversity
and it has impact on project management. These organizations have employees or staff
from different nationalities and backgrounds into the development of projects and project
teams. Managers believe that effective communication (cross cultural communication) has
an important role in multicultural projects and followed by technical knowledge the key
factors for successful projects.
60 | P a g e
We used literature review and questionnaire results to demonstrate the objectives of this
research. First, the cultural diversity factors as identified in literature by various authors,
present when managing projects were: different nationalities, language barriers, religion,
race, educational backgrounds, space and touching differences, verbal and non-verbal
communication (including cross cultural communication), time zones and politics. The
results of the questionnaire showed that different backgrounds (education and experience
of people) and different nationalities are factors mostly present when managing projects.
Second, we know that the phases of project management which includes defining project,
planning the project, execution, controlling and monitoring and completion project.
According to the participants’ response the initial phase which is defining the project and
execution phase are phases the most impacted by cultural diversity. Third, cultural barriers
identified in literature review that impact project team performance were: cultural shocks
(appointments), time differences, geographical dispersion, language barriers, competition
between team members, confrontation and miscommunication. Results from participants
indicated that miscommunication is among the cultural barriers that impact the team
performance the most. The participants also asked about the role and importance of cross
cultural communication in projects. Most of the participants indicated that
miscommunication is one of the barriers that impact performance and it is due to the
cultural differences between project team members. Reducing the language barriers
among team members can promote cross cultural communication.
5.2 Limitations of the Study
The first limitation of this study was the difficulty to find studies and literature related to
pragmatic evidence of how cultural diversity impacts project management. The reason is
most of the literature available on cultural diversity impacts on multicultural or international
projects. The second limitation was related to the selection and size of the sample. Many
organizations involve in the management of projects incorporating cultural diversity, but
not all of these organizations integrate cultural diversity and project teams. Some of the
organizations operating in international markets manage multicultural teams and diversity,
but not necessarily involve in development of projects.
The other limitation of this study was: the wording of question no.12 in the questionnaire
that, ‘Diversity may exist when working in teams’ may not capture the purpose of the
61 | P a g e
question, which was about to measure whether or not participants believe that cultural
diversity should exist when working in teams.
5.3 Recommendations for Future Research
The limitations of this research study should be addressed and various areas for future
research could be explored. In order to statistically test the conclusions of this research
further empirical research could be conducted using hypothesis. Other recommendations
for future research could be related to: study the prominent role of project managers who
is considered to be a key factor for effectively managing cultural diversity, test if cultural
diversity has impact on project management teams using hypothesis testing and
organizational impact in the effective management of projects and also studying other
industries or sectors.
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APPENDICES
APPENDIX A
The following Questionnaire was designed to examine Impacts of cultural diversity on
project management team. which is the purpose of this research study.
Based on your working experience, answer the following questions:
1. How many times have you been involved in a project working with team?
Once
2 to 4
5 or more times
2. Are all members of project team at the moment at the same physical distance?
Yes
No
3. Which of the following given cultural diversity factors are present in your team?
Please, tick all that apply.
Different nationalities
Different backgrounds (work experience, education)
Language barriers
Communication (verbal and non-verbal)
Time differences
Other
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4. Which of the following nationalities are presented in your project team? Please, tick all that apply.
Pakistani
Chinese
Japanese
Malaysian
Iranian
Qatar
Other
5. What is your educational background (academic or professional)?
Business
Engineering
Computer
Computer engineering
Science
Other
6. How do you explain and describe working with people from different nationalities
and backgrounds?
Very good
Good
Acceptable
Poor
Very poor
7. Do you think that cultural diversity has an impact in the development of projects?
Yes
No
If you think the answer is Yes, then go to question 8, otherwise go to question 9
8. If answer is yes, then what would be the level of impact?
High impact
Low impact
Moderate impact
No impact
9. Which areas of a project do you think cultural diversity impacts the most?
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Please, select from 1 to 3 (1=for most impacted) Defining the project
Planning
Execution
Control phase
Closure or completion of project
10.Which of the following given you think may minimise the influence of cultural
diversity while working in teams? Please, select 1to 7 (1=for important) Cooperation between them
Communication (cross cultural communication)
Avoiding stereotypes
Openness, patience and self control
Understanding the cultural diversity
Other
11.Do you believe that cultural diversity can initiate conflicts between team members?
Yes
No
12.Do you think cultural diversity may exist when working in team?
Yes
No
If answer is Yes, then go to question 13, other go to question 14.
13. If yes, which of the following brings cultural diversity to teams?
New ideas
New approaches for problem solving
Different point of view
Other
14. If the answer is no, why do you think cultural diversity does not exist in project
teams?
Different point of view
New ideas
Miscommunication
Confrontation
Frustration
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Other
15.Which of the below given do you think may cause delay in completion of a project?
Language barriers
Communication (cross cultural communication)
Confrontation
Cultural shocks (appointments)
Geographical dispersion
Time differences
Competition between members
Other
16.Do you think that cultural diversity facilitates different points of view and promotes
new ideas that help team members on the successful accomplishment of projects?
Strongly agree
Agree
Don’t know
Disagree
Strongly disagree
17.Gender of the participant
Male
Female
18.Age of the participant
25 or less
26 to 39 years
40 to 50 years
51 years or more
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APPENDIX B
The following questions were designed to conduct semi structured interviews with the
participants, who are working in the project management teams.
Please, answer the following questions based on your experience:
1. What kind of projects does your company manage?
2. Who are the clients of your project?
3. Who are the users of your project?
4. How are the projects managed by the company?
5. How do members of project team select?
6. Are there any desirable features that team members need to have in order to be
able to participate in exclusive projects?
7. Which abilities and skills are needed to develop successful projects in your
company?
8. What communication methods are used between team members? email, video
conference. How is the cross cultural communication managed in project team?
9. Are there any internal procedures or guidelines to manage a project?
10. What is the structure to manage authority in projects, if any?
11.Who does choose the project manager or supervisor?
12. What are the challenges when managing or supervising the projects?
13.Do you think that cultural diversity has an impact in the development of projects?
Please explain.
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Appendix C
Designing a Qualitative Interview study-
Constructing interview Guide
Important questions about research
What is the topic of the research?
What are the research questions?
What are the possible
topics which relate to
each research question?
What the researcher want
to know about this topic?
What are the possible
and related questions
that may generate talk/
discussion about topic?
1
2
3
Source: Reflective Interviewing: a guide to theory and practice by Kathryn Roulston. Sage
publication. (p.95)
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Appendix D
Semi structured Interviews
Strengths
1. Positive rapport between interviewer and interviewee. It is very simple, practical
and efficient way of collecting data.
2. High validity, semi structured interviews enable people to talk about something in
detail and depth.
3. Complex questions and issues can be discussed, this is the best and efficient
way to discuss complex questions and issues which the interviewer no prior
knowledge about it.
4. Pre-judgement, conducting semi structured interviews the interviewer is not in the
position to pre-judge the what is and is not important information.
Weaknesses/ Limitations
1. Depends on the ability of the interviewee to ask questions during interview.
2. Time consuming and sometime very expensive
3. Not very reliable, these interviews are difficult to repeat a focused interview and
respondents may be asked different questions.
4. The qualitative information is difficult to analyse.
5. The personal nature of the interview makes findings difficult to generalise.
6. Validity, it is possible that the interviewer is not telling the reality.
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