Final_Cross Cultural Awarness

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    FLORIDA PROPERTY DEVELOPERS

    SEPTEMBER 2010

    STUDENT NAME: RUTWIJ MAHESH BOKIL

    STUDENT ID: 311627

    COLLEGE NAME:VISHWAKARMA GLOBAL EDUCATION

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    TABLE OF CONTENT

    Project title

    Student name

    Student id

    College name

    Statement of own work

    Introduction

    Task 1 (Cultural differences)

    Task 2 (Three artifact and their significance)

    Task 3 (Hofstedes maps analysis)

    Task 4 (Task strategies for the team)

    Task 5 (Four key considerations in their new venture)

    Tasks 6 (Two views of culture and strategy)

    References

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    Student declaration

    I have read and understood NCC Educations Policy on Academic Dishonesty and Plagiarism.

    I confirm the following details:

    Student ID/Registration number: 311627

    Name: RUTWIJ BOKIL

    Centre Name: VISHWAKARMA GLOBAL EDUCATION.

    Module Name: CROSS CULTURAL AWARNESS

    Module Leader:

    Number of words: 6200

    I confirm that this is my own work and that I have not plagiarized any part of it. I have also noted

    the assessment criteria and pass mark for assignments.

    Due Date:

    Student Signature:

    Submitted Date:

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    There are various aspects to what may be referred to as culture, the most commonly

    understood being national or ethnographic culture, the culture of the country or ethnic group to

    which each of the parties to a dispute or transaction belong and/or in which their business orproject is located. But there are other aspects of life which may be categorised as cultures.

    Most fields of business or industry have their own particular culture, and there is often a

    characteristic corporate culture which may differ from company to company. There is, of course,

    the religious culture attendant to each belief, which normally will differ at least in part from

    sector to sector community to community. And let us not forget differences in behaviour

    between genders, or gender persuasions, which may also be characterised as a form or culture.

    There may be different cultural aspects of life found in different geographic areas or ethnic

    groups residing within a single nation. Urban dwellers very often behave differently from, and

    have different expectations than, inhabitants of rural or agricultural communities. Even within a

    single city residents of different areas may have different behavioural or cultural patterns.

    It is an apparent fact that there is a great need in understanding cultural differences in the

    workplace. Being that most societies are factually multicultural, and many organizations and

    individuals pool their resources to break geographic and cultural limits. Culture has actually

    been studied in more ways than one. A short synopsis might likely include: It is far more than

    art, it certainly adds to our framework, more commonly known as everyday life. Cultures, values,attitudes and behaviours are characteristics in a society that ultimately and unfortunately

    reflects our actions towards others despite how subtle.

    Cultural norms are a major issue with its interpersonal relationships as well as interpersonal

    relationships, along with its inner mechanics going on within the business. Now it is important to

    take personal notice of your own reactions, preferences and feelings. Cultural Dimensions is a

    good starting point, granted that you have read up on, studied real-life scenarios and try not to

    overdo it. An appropriate place to begin by evaluating your approach and be aware of any

    decisions and the supporting materials based on the general consensus considering their

    reaction to you and your ideas.

    Just make them feel comfortable in their being included as part of their very first day on the job.

    A nice addition to their first day would be displaying an appropriate coffee mug, an office

    welcome card and a potted plant that is in theme with their culture.

    Most importantly, we all need to learn cultural sensitivity on a daily basis. Please, add value to

    the differences of all cultures and vow to yourself that they shall be honoured. Always respect

    all things that make each of us a respectable human being.

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    In each of these aspects the differences from one such culture to another may affect their

    manner of negotiation, style of attire, diet and cuisine, degree of formality and conduct in

    interpersonal relations, manner of communication, corporate responsibilities and powers,

    respect for law and legal systems applied, role of and respect for government and its

    officialdom, attitude towards corruption, towards contractual obligations, borrowing, lending and

    other financial matters, importance of family, ways of building relationships of trust, view of

    conflicts of interest, values, concept of time, approach to truth, and many other matters.

    The bottom line is communication. What we say and do, how we dress and act are all means of

    communicating not only our own culture, but also our understanding of and respect for that of

    others, and will affect how we are understood and how seriously we are taken. In order to

    ensure we give the message we wish and are respected, we must first understand what our

    behaviour communicates to others and also what theirs is communicating to us and how these

    communications reflect their political, ethnic and other cultural history and environment.

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    Every time we enter a country or other environment different from our own, if we have any

    sensitivity at all we immediately begin to notice some of the characteristic differences in

    behaviour of the inhabitants of such new environment. Normally the first we notice are those

    that hit our senses: sounds (language, accent, intensity, music), sights (style, formality and

    colour of attire and decor, architecture, and natural attributes), or smells (food, tobacco,

    hygiene, burning incense or oils). Let us have a look at some of the more important aspects of

    these cultural differences of which we need to be aware, and perhaps even do some advance

    study on, if we hope to be successful in achieving either amicable or enforceable adjudicated

    resolution of disputes in a cross-cultural situation.

    A. Attire

    The first thing that is noticed is ones attire, which often reflects the general attitudes of formality

    or class of the society, and may indicate religious or moral beliefs as well. While it is perfectly

    acceptable in Australia to wear shorts and casual shoes, even flip flops, often even in business

    meetings, and certainly while travelling, Asians often find it offensive even to sit on an airplane

    next to a noisy Aussie showing hairy legs, let alone discuss business with such a person. There

    is an age-old standard of respectable business garb and while some cultures have relaxed

    these expectations, it is always safer to dress conservatively; at least until you have tested the

    waters and understood what is de rigueur and what is not. Even formal or official national dress

    may not always be appropriate. Acceptable attire for formal occasions in the West normallyconsists of a black suit, white shirt and tie, if not a tuxedo and white tie. In Indonesia a long-

    sleeved, colourful batik shirt is acceptable no matter how formal the occasion, and in the

    Philippines an embroidered Barong, pineapple-fibre, shirt serves the same purpose. But it is

    unlikely that a diplomat from either of these countries would wear batik or barong to a black tie

    dinner in London, as Asians normally take the trouble to learn what is acceptable and what is

    not.

    B. Manner of Address

    Australians and to a lesser extent Americans tend to address everyone on a first name basis

    even upon first meeting them, or even on the telephone or in emails where they have not yet

    met. But in many other cultures, including most European ones, this is considered extremely

    bad form insulting or demeaning, such familiarity not affording any semblance of respect. It

    could be fatal to mediation if an Australian mediator were to commence the mediation referring

    to Asian and European parties by their first names at the outset. This practice could evolve over

    time if the mediation is progressing in an amicable and cooperative atmosphere and a sense of

    familiarity is created all around. But to start the ball rolling by calling Count Heinrich von Richter-

    Mulhausen Hans orTan Sri Dato Dr. H Mohammad Ibrahim bin Dato H. Samsuddin Sam

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    could easily be taken as insulting and destroy the opportunity to gain the trust and cooperation

    so necessary for a mediator to succeed. Italians use the third person, and the French the

    second person plural, when addressing superiors or anyone they do not know well, and

    improper use of the second person singular can be taken as an insult. There are at least three

    distinct levels of both Javanese and Balinese languages, the use of which depends upon the

    relative social status of the person speaking and the person being addressed. In some cultures,

    such as American or Philippine, former ambassadors, or presidents, are referred to by such

    titles long after their term of office has expired, sometimes for the remainder of their lives. In

    others, to continue to use such term may be considered an insult to their successors or a sign of

    ignorance of the current situation. In some European and Asian cultures, a long chain of titles

    before ones name is a show of respect. In other cultures such use is considered an affectation.

    And such titles may have different significance in different countries. For example Esq. in the

    UK denotes landed gentry. In the United States it refers to anyone in legal practice, to the great

    bemusement of the British.

    C. Communications/Body Language

    Some cultures eschew either negative or positive responses. The Japanese are extremely

    reticent to say no, as are most Indonesian cultures, such as the Javanese. Any expression of

    negativeness is considered bad form. The Javanese in fact will never admit to any negative

    opinion nor give negative criticism, a disparaging comment being considered a face destroyinginsult. Other cultures, such as some eastern European ones, avoid positive or enthusiastic

    reactions and invariably will give a negative response, decline or criticise, at least in the first

    instance. Nodding ones head is a classic example of an easily misunderstood gesture. In most

    of the West it is common to indicate assent by nodding ones head up and down, or even

    uttering umhmm or similar. This will mean nothing in some other cultures, and in some it may

    even indicate the negative. In Turkey, Iran, Bulgaria and some Melanesian islands nodding the

    head up (in Melanesia usually accompanied by a slight tsk sound) means a definite NO. In

    much of Asia nodding, sometimes accompanied by yes, normally means: I understand whatyou are saying, go on. . ., but is often misinterpreted by westerners to indicate agreement,

    usually of each specific point nodded at. This misunderstanding has on occasion been known to

    cause considerable disappointment to western businessmen. Another easily confused gesture

    is the mostly western custom of twirling the forefinger in front of ones ear to indicate that

    someone is insane or unbalanced. But in certain cultures, such as that of Argentina, that

    gesture is common sign language meaning telephonecall for you. One can easily imagine the

    result of misuse of this gesture in the wrong circumstances. Even waving ones hand can have

    different significance or impact in different cultures. While Americans might wave their hand,

    palm out, sideways to say goodbye, in much of Europe such a gesture indicates a negative

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    answer, while to say goodbye they might wave their hand up and down with the palm down. But

    that latter gesture in Indonesia means come here, while in the West come here would be

    indicated by a similar gesture but with the palm facing in or just beckoning with the forefinger,

    which latter gesture would be found demeaning and thus highly offensive in Indonesia and

    some other parts of Asia. Likewise pointing ones finger at someone is often taken as an

    aggressive act. It is much more polite to point with ones whole outstretched arm and hand.

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    Hofstedes Map Analysis findings, there are only seven (7) countries in the Geert Hofstede

    research that have Individualism (IDV) as their highest Dimension: USA (91), Australia (90),

    United Kingdom (89), Netherlands and Canada (80), and Italy (76).

    The high Individualism (IDV) ranking for the United States indicates a society with a moreindividualistic attitude and relatively loose bonds with others. The populace is more self-reliant

    and looks out for themselves and their close family members.

    The next highest Hofstede Dimension is Masculinity (MAS) with a ranking of 62, compared with

    a world average of 50. This indicates the country experiences a higher degree of gender

    differentiation of roles. The male dominates a significant portion of the society and power

    structure. This situation generates a female population that becomes more assertive and

    competitive, with women shifting toward the male role model and away from their female role.

    The United States was included in the group of countries that had the Long Term Orientation

    (LTO) Dimension added. The LTO is the lowest Dimension for the US at 29, compared to the

    world average of 45. This low LTO ranking is indicative of the societies' belief in meeting its

    obligations and tends to reflect an appreciation for cultural traditions.

    The next lowest ranking Dimension for the United States is Power Distance (PDI) at 40,

    compared to the world Average of 55. This is indicative of a greater equality between societal

    levels, including government, organizations, and even within families. This orientation reinforces

    a cooperative interaction across power levels and creates a more stable cultural environment.

    The last Geert Hofstede Dimension for the US is Uncertainty Avoidance (UAI), with a ranking of

    46, compared to the world average of 64. A low ranking in the Uncertainty Avoidance

    Dimension is indicative of a society that has fewer rules and does not attempt to control all

    outcomes and results. It also has a greater level of tolerance for a variety of ideas, thoughts,

    and beliefs. More Geert Hofstede Details

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    United States of America

    The Geert Hofstede analysis for the United States is very similar to other World Countries that

    have their heritage founded in Europe with strong ties to the British Isles (see Great Britain,

    Canada, Australia, and New Zealand). Individualism ranks highest and is a significant factor in

    the life of U.S. Americans. The low ranking of Long-term Orientation reflects a freedom in the

    culture from long-term traditional commitments, which allows greater flexibility and the freedom

    to react quickly to new opportunities.

    Religion in the United States of America

    In analyzing Predominantly Christian countries, the primary correlation between religion and the

    Geert Hofstede Dimensions is a high Individualism (IDV) ranking. This indicates that

    predominantly Christian countries have a strong belief in individuality, with individual rights

    being paramount within the society. Individuals in these countries may tend to form a largernumber of looser relationships. (See accompanying Article)

    The predominant religion in the United States is Christian at 56%, and when added to Catholic

    practitioners (28%), the total practice of Christianity within the US is 84%. (We have defined a

    predominantly Christian country as over 50% of the population practicing some form of

    Christianity, other than Catholicism. See the accompanying article)

    Appearance

    Business suit and tie are appropriate in all major cities. Wear dark coloured business

    suits in classic colours of gray and navy. For an important formal meeting, choose a

    white dress shirt, for less formal a light blue shirt will still give you a conservative

    appearance.

    Women should wear a suit or dress with jacket in major cities. Wearing classic clothing

    and classic colours of navy, gray, ivory, and white will ensure you give a confident and

    conservative appearance.

    Rural areas and areas with extremely warm summers have more informal wardroberequirements.

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    Women may wear a business dress, or skirt and blouse, in rural areas.

    Men may conduct business without wearing a jacket and/or tie in rural areas.

    The formality of a meeting, even in rural areas, may dictate a sports jacket and tie for

    men. The same formality will require a woman to wear a dress, possibly with a jacket.

    Casual clothing is appropriate when not attending a work related meeting/dinner.

    Building a casual wardrobe using classic lines and colors (navy, gray, camel, ivory and

    white) will give you a look that is stylish and professional even when you are relaxing.

    Clothing, whether formal or casual, should be clean and neat in appearance.

    Men may generally wear jeans or khaki pants with a shirt for casual attire.

    Women may wear comfortably fitting slacks with a casual shirt. Wearing jeans or shorts,

    even in a casual setting, may be inappropriate for the city. It is better to err on the

    conservative side if you are not sure.

    Behaviour

    Business conversation may take place during meals. However, many times you will find

    more social conversation taking place during the actual meal.

    Business meetings may be arranged as breakfast meetings, luncheon meetings, or

    dinner meetings depending on time schedules and necessity. Generally a dinner, even

    though for business purposes, is treated as a social meal and a time to build rapport.

    Gift giving is discouraged or limited by many US companies. A gracious written note is

    always appropriate and acceptable.

    If you do give a gift, it should not appear to be a bribe.

    An invitation for a meal or a modest gift is usually acceptable.

    If you are someplace with a line or queue, go to the end and wait your turn.

    Do not use or chew on a toothpick in public.

    Many public places and private homes do not allow smoking. In some areas laws have

    been passed to prevent smoking in public places.

    Communications

    Offer a firm handshake, lasting 3-5 seconds, upon greeting and leaving. Maintain good

    eye contact during your handshake. If you are meeting several people at once, maintain

    eye contact with the person you are shaking hands with, until you are moving on the

    next person.

    Good eye contact during business and social conversations shows interest, sincerity and

    confidence.

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    Good friends may briefly embrace, although the larger the city, usually the more formal

    the behaviour.

    Introductions include one's title if appropriate, or Mr., Ms, Mrs. and the full name.

    Business cards are generally exchanged during introductions. However, they may be

    exchanged when one party is leaving.

    A smile is a sign of friendliness, and in rural areas you may be greeted with a "hello"

    rather than a handshake.

    Ask permission to smoke before lighting a cigarette or cigar. Due to health concerns, you

    may or may not be given permission.

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    France

    Introduction

    France has a population of approximately 58 million people and is the largest West European

    country, approximately 4/5 the size of Texas. France does not have an official religion, but the

    majority of French citizens are Roman Catholic. France is home to approximately 4.5 million

    foreigners, many of whom are from other European countries or former Communist countries.

    Education is of great importance to the French. This is demonstrated by the fact that the

    educational system is almost free of charge from the primary school through the Ph.D. level, for

    French citizens.

    Religion in France

    In a country that has over 50% of its population practicing the Catholic religion, we found the

    primary correlating Hofstede Dimension to be Uncertainty Avoidance (UAI). There were only 2

    countries out of 23 that did not follow this correlation, they were Ireland and the Philippines.

    (See accompanying Article)

    Appearance

    The French are very conscientious of their appearance.

    Dress conservative and invest in well-tailored clothing.

    Patterned fabrics and dark colors are most acceptable, but avoid bright colors.

    French businessmen do not loosen their ties or take off their jackets in the office.

    Women should also dress conservatively. Avoiding bright or gaudy colors is

    recommended.

    Women should also avoid any glitzy or overpowering objects, such as flashy jewelry.

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    Behaviour

    Punctuality is treated very casually in France.

    France is a highly stratified society, with strong definition and competition between

    classes. The French handshake is brief, and is accompanied by a short span of eye contact.

    Always shake hands when meeting someone, as well as when leaving. French

    handshakes are not as firm as in the United States.

    The French have a great respect for privacy. Knock and wait before entering into a

    room. Additionally, do not "drop in" unannounced. Always give notice before your

    arrival.

    Business can be conducted during any meal, but lunch is best.

    Avoid drinking hard liquor before meals or smoking cigars between courses. The French

    believe this permeates the taste buds, compromising the taste of the meal.

    Gift giving is left to the foreigners discretion.

    Good gifts to present include books or music, as they demonstrate interest in intellectual

    pursuits.

    Communications

    French is the official language in France.

    If you do not speak French, it is very important that you apologize for your lack of

    knowledge.

    Most individuals in business speak English.

    The French have a great appreciation for the art of conversation.

    The French frequently interrupt each other, as the argument is a form of entertainment.

    The French often complain that North Americans lecture rather than converse.

    Be sensitive to the volume of your voice. Americans are known to offend everyone in a

    restaurant, meeting, or on the street with their loud voices and braying laughter.

    Eye contact is frequent and intense, and can often be intimidating to North Americans.

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    South Africa

    South Africa has a population of approximately 40 million people. Three-quarters of its

    population is black (African) and approximately 15% is white (European). The rest is a mixture

    of white, Malayan and blacks whose ancestors were of Asian descent. There are six major

    ethnic groups in South Africa: Afrikaner, Coloured/Cape Malay, Bantu, English, Chinese and

    Indian. There are 11 official languages in South Africa. Most South Africans speak English and

    Afrikaans, which is derived from their Dutch heritage.

    South Africa is considered the industrial giant of Africa. It is a substantial resource for minerals

    including gold, silver, copper and diamonds.

    The Geert Hofstede analysis for South Africa illustrates their emphasis on Individualism. SouthAfricans ranked extremely high in all categories of the Hofstede model. However, there is no

    ranking for Long-term Orientation. Being the Individualist that the South Africans are, they may

    shy away from Long-term relationships.

    Religion in South Africa

    We have defined a predominantly Christian country as over 50% of the population practicing

    some form of Christianity, other than Catholicism. In this group, the primary correlation between

    religion and the Geert Hofstede Dimensions is a high Individualism (IDV) ranking. (See the

    accompanying article)

    Appearance

    South Africans of Urban cultures generally wear western dress.

    Dress well in public, it will be expected by your South African host.

    African women wear a sari.

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    Behaviour

    Gift giving is not the norm in business.

    Do not present gifts with the left hand.

    Use either both hands or the right hand when giving and presenting gifts.

    Gifts will be opened upon receipt.

    Business meetings can be held over lunch or dinner in a good restaurant.

    Meals at the home of a white South African will include a barbecue by the pool called a

    braaivleis (Afrikaans for roasted meat) or braai.

    Communications

    The handshake is the most common greeting. There are a variety of handshakes between

    ethnic groups.

    Use titles and surnames to address people.

    Appointments should be made starting at 9 a.m.

    Do not rush deals. South Africans are very casual in their business dealings.

    Business cards have no formal exchange protocol.

    South Africans prefer a "win-win" situation.

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    The pressures of increased foreign competition can lead a company to expand its business into

    global environments. Companies need to respond rapidly to many global project opportunities,

    and build-up project team members coming from different countries for successful project

    outcomes. There are increasing uses of global joint ventures to satisfy their project clients. The

    joint ventures entering global environments take advantage of projects that are larger than what

    the contractor would normally undertake, with a view to share the project risk. While offering

    opportunities, globalization also poses significant challenges for project managers especially

    when different cultures are involved as a team.

    Multicultural project teams have their culture as a set of shared values and beliefs. Beliefs are

    peoples perceptions of how things are done in their countries. They are reported as practices

    in a particular culture. Values are peoples perceptions about the way things should be done.

    They are their preferred practices. Regarding to beliefs and values, it is a significant issue to

    know and understand on cultural practices and peoples beliefs. For example, U.S. is

    individualistic, while Korean is more collectivist oriented. U.S. prefers to reward individual

    initiative in economic system, while Korea prefers to reward for working together rather than

    individual in the system. Furthermore, U.S. prefers an individualistic system, while the Korean is

    likely to prefer a collective system. With the perspective view of values and beliefs, Table 1

    shows five elements that create the cultural differences upon project team performance.

    Marquardt et al. stated that these factors put into place to promote a way of thinking that

    embraces and accepts project team members who come from different countries with different

    cultures. These include respecting peoples choices and practices regarding their religion,

    education, economics, politics, and language. It means that all cultures should be respected

    and nobody is more important than anyone else.

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    Table 1. Identified elements of cultural differences [10]

    Religion

    Most influential factor in cultural thinking, living, and

    doing. Determining whether a people see them as

    basically good or evil.\Defining what is truly importantin life.

    Describing how one should eat, dress, related to

    others and work.

    Education

    A societys means of transmitting the

    knowledge, skills, and attitudes necessary to live in

    that society.

    Class structures from open to closed.

    Economics

    Activities concerned with the production and

    distribution.

    Societies (e.g. free-market and capitalistic,

    centrally planned and government-controlled, or a

    mixture of the two).

    Politics

    Encompassing structures and activities related

    to the allocation and use of power as well as the

    regulation of access to resources and opportunities.

    Language

    Words and structures available in a language,

    which influence a speakers values, beliefs,

    relationships and concepts.

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    Cultural differences upon team performance

    Traditionally, project teams are derived from a team of individuals who are drawn from a variety

    of functional disciplines within the organization. Besides, the members of these teams tend to

    be from the same country with its own organizational and work culture. However, global project

    teams comprise of multicultural team members from different countries, each of which

    possesses a different culture. For example, functional membership and geographical

    membership coincide, that is, the technical members of the team may be from the United

    States, while all the marketing members may be from Britain and manufacturing members may

    be from France. In the circumstances of geographical distribution, global project teams interact

    and collaborate through increasingly sophisticated information and communication technologies

    such as intranets, web meetings, videoconferencing, teleconferencing, instant messaging,

    application sharing, and email.

    In year 2007, a master degree research project in the form of survey was conducted by the

    authors from the project participants with the aim to understand the impacts of cultural

    difference upon global team performance. In the survey, 30 sets of questionnaires were sent

    out. Out of 27 completed questionnaires, it is interesting to see that 18 respondents identified

    cultural difference as the most significant factor affecting the team performance. Though the

    sample was small, it did provide an indication if this factor was to be ignored, the project

    managers and the stakeholders could end up with project failure and or suffer undue conflicts.

    Figure 1 below illustrates the identified issues affecting the team performance.

    The impacts of cultural differences upon team performance

    When global team is engaged in a project environment, conflict is detrimental to performance.

    Miscommunication across cultural lines is usually the most important cause of cross-cultural

    problems in multinational projects. Respondents were asked the major sources of conflicts

    affecting the team performance in a global project environment. The results indicated that team

    performance has been affected due to the differences in:

    1. Problem-solving technique,

    2. Decision-making process,

    3. Communication methods, and

    4. Level of trusting each other.

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    The following are the suggested effective ways from the respondents to reduce the

    impacts due to cultural differences:

    Impacts on team performance due to

    cultural differences

    Effective ways to maximize team performance

    Problem-solving technique Communication Management Matrix

    Monitoring project participants

    Decision-making process Gathering information

    Discussion & negotiation

    Communication methods Finding out cultural differences

    Level of trusting each other Clear roles & responsibilities

    Proactive measures to build trust

    Project Management is the application of knowledge, skills, tools, and techniques to project

    activities to meet project requirements. As a measure of good project management, it is

    important for the project manager to set the strategic direction such as the Plan-Do-Check-Act

    cycle.

    Strategic planning

    Strategic planning is formulated with specific goals for multicultural team performances on time

    and within budget. The planning process is vital to communicate with global project teams and

    keep them informed of those aspects of the project, which are important to them. It is the

    responsibility of the project manager to convey information to the appropriate individuals or

    groups at the right time according to a prearranged strategy. Project managers need to

    establish a regular rhythm of communication, and work with the team to create shared operating

    agreements for key activities (e.g. coordinating, communicating, decision making, handling

    conflict, information sharing, reporting) [7]. When establishing strategic planning, the project

    managers can use planning tools like Communication Management Matrix, Work Breakdown

    Structure (WBS) and Gantt Chart. The Communication Management Matrix is communication

    management plan to manage communication through multinational team performances. WBS

    helps multicultural team performance to define clear roles and responsibilities for diversity

    project teams. Important outcome is a project structure that will facilitate the kinds of resource

    allocation, staffing and delegation, and related command and control needs of a project.

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    Performing

    Performances of multicultural project teams are highly dependent on trust. Developing trust in

    multicultural teams is efficient to save a lot of time and trouble by being able to rely on

    someones word. Face-to-face contact is a key to developing trust and this is initiated by a

    formal team building sessions with a facilitator to agree to the relationship and define the rules

    as to how the team is going to work. Informal contact is also mentioned (e.g. sitting down over

    lunch to break barriers). Knowing each other is reported to lead to higher efficiency, and

    problems are easier to solve if they know each other [13]. Using an e-mail network speeds up

    communication and makes it much easier to share, edit and review large amounts of

    information. Eventually virtual reality will allow people to work at a distance simultaneously [5].

    McDonough et al. [11] found that the greater use of video-conferencing is significantly and

    negatively associated with performance. It does not facilitate quick response by the team to

    problems nor the fast identification of solutions. It is also expensive and may not translate into

    immediate benefits for team performance.

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    The impacts relate directly to communication and human resource management.

    Communication on performance of multicultural team is an essential precondition of effective

    management. Human resource management is the strategic and coherent approach to the

    management of multicultural team's most valued assets. All kinds of conflicts are inevitable,

    when multi-cultural team members are engaged in a project. The sources of conflicts are a

    consequence of different approaches due to cultural beliefs and way of doing tasks.

    Figure 2 and Table 2 illustrate the cultural impacts identified by the participants and showing the

    risk degree of likelihood upon project performance.

    Figure 2: The risk degree of cultural impacts

    Impacts of

    cultural differences

    Respondent

    s

    Extreme High Medium Low

    Problem-solving technique 14 0 8 6 0

    Decision-making process 14 0 8 6 0

    Communication methods 12 0 7 6 0

    Level of trusting each other 11 0 3 8 0

    Problem-solving technique

    The key impact is the problem-solving approach used in different countries. Although there is no

    absolute "right way" to approach technical problems, issues are likely to arise when team

    members with different cultural backgrounds work together to resolve them. For examples,

    French members of global teams in a study preferred to thoroughly analyze the entire problem

    and potential approaches for solving the problem prior to taking any action. Unite States (U.S)

    members, on the other hand, preferred a trial and error approach where they quickly focused in

    on one potential solution, which looked like it might work and then tried it out. In this way, the

    cultural contexts of different team members created different demands for information. For the

    U.S team members, having the specific information to analyse just one option immediately

    available was important in enabling them to work in their preferred mode. For the French team

    members, having a larger amount of detailed information in a more structured format were the

    key to permit them to engage in the type of problem-solving behaviour that they preferred.

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    Decision-making process

    Decision-making process is one of the key impacts of cultural differences upon team

    performance. It is the preference for the way in which decisions were made in different

    countries. Japanese team members prefer consensus driven decision making with significant

    amounts of time taken in getting all concerned parties to the decision to agree. Obtaining

    agreement requires transmitting large amounts of information, which is often quite complex,

    across a large set of people. U.S. team members, on the other hand, prefer to follow an

    independent route where decisions do not need to be agreed with the entire group and in some

    cases are not even known to the whole group. While decisions are made more quickly, they are

    being based on less information, which has been reviewed by fewer people [11]. Miroshnik [12]

    indicated the big difference between Japanese and Russian people in the decision-making.

    Japanese never say no, it is very impolite in their opinion, but it does not mean that they

    agree, so they will say, yes, we are absolutely disagreeing. For Russians, however, if a

    partner says yes, it is time to celebrate the success. On the other hand, Appelbaum e t al. [1]

    found that Japanese managers in the U.S tend to interact among themselves and make

    decisions with consultation of head office in Japan rather than with the local management.

    Communication methods (Language difference)

    In terms of communication methods, language can be a powerful tool to exclude or include

    certain group members, and therefore language barriers can affect the sharing of information

    among project team members. Brett [3] indicated that improper use of language could lead to

    misunderstanding. English is the working language in global project team, but not all project

    team members are fluent in using English for communication. For example, a French team

    member addressing a U.S. team member saying I demandwas perceived as rude until both

    members realized that the French member was using a direct but erroneous translation of a

    perfectly polite way of saying I am asking. In this case, language also can be a source of

    frustration and anger.

    Level of trusting each other

    The level of trust in multicultural team is one of the significant factors affecting the team

    performance. Trust has been identified as one of the determinants used to achieve a better

    relationship between project participants because it can improve the communication flow for

    team members thereby making it easier to understand each others objectives. Moreover, a high

    level of trust has been demonstrated to contribute to the success of a project. Trust and control

    mechanisms are not mutually exclusive and must be balanced and motivated by project

    manager.

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    Conclusion

    Cultural difference is very common in team-building of global projects. When cultural differences

    are recognized, valued and used to the organisations advantage, then greater synergies can

    result for managing projects. Different approaches in multicultural performances consist of four

    identified key impacts: differences in problem-solving technique, decision-making process,

    communication methods, and level of trusting each other. These can be managed by the

    suggested method of Strategic Multicultural Project Management As project become more

    complex in nature, there is a driving force that project managers should maximise the ability of

    the multicultural team and utilize their skills effectively for the benefits of the project outcome.

    Project managers need sensitive group management skills and understand the cultural

    differences in advance and the need to recognise their impacts upon team performance.

    Cross-cultural training organizations can also shorten the learning curve by delivering training to

    project managers in a timely and targeted fashion. The necessary cross-cultural information

    should be shared with all team members involved in international ventures, rather than being

    limited to those who have already had experience with them. Cross-cultural training

    organizations are experts in the area of cross-cultural relationships and can provide training on

    many topics including cultural difference so that project managers can provide proactive

    measures during the team building processes.

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    References:

    http://encyclopedia.jrank.org/articles/pages/6654/Leadership-Competencies-for-

    Managing-Global-Virtual-Teams.html

    http://www.businessballs.com/ethical_management_leadership.htm

    http://www.cyborlink.com/besite/us.htm

    http://encyclopedia.jrank.org/articles/pages/6654/Leadership-Competencies-for-Managing-Global-Virtual-Teams.htmlhttp://encyclopedia.jrank.org/articles/pages/6654/Leadership-Competencies-for-Managing-Global-Virtual-Teams.htmlhttp://www.businessballs.com/ethical_management_leadership.htmhttp://www.cyborlink.com/besite/us.htmhttp://www.cyborlink.com/besite/us.htmhttp://www.businessballs.com/ethical_management_leadership.htmhttp://encyclopedia.jrank.org/articles/pages/6654/Leadership-Competencies-for-Managing-Global-Virtual-Teams.htmlhttp://encyclopedia.jrank.org/articles/pages/6654/Leadership-Competencies-for-Managing-Global-Virtual-Teams.html