Question:
Discuss About The Building An Effective Global Business Team?
In order to coordinate and integrate acquaintance from different divisions of organisations, global teams are increasingly engaged in multinational firms. The enhancement in efficiency through coordination along with scope of introducing innovation is increased which is why global teams are maintained in big firms (Rebecca Heller, 2010). To adapt different cultures and resources across the globe, global teams are formed that enhances organisations performance by aiming to acquire experts irrespective of place and location. While managing them from one centre point also reduces cost of travelling and saves time of managements. Global teams can be defined as performing global tasks that are acknowledged by organisations and create team members as a team to perform tasks (Mickels, 2013). The teams are accounting for making decisions or implementing any new idea that are significant to the firm’s global strategy. The global teams normally communicate through digital means and utilises technological communication systems which helps them to unite with each other in spite of having geographical barriers. To gain competitive advantage, global companies have to adopt a coordinated global team to connect critical resources and data those are extended across several geographical places. In order to assist organisations to operate and integrate global teams in dispersed areas, many organisational mechanisms are developed and are available in today’s world (Boyraz, 2014).
Figure: Challenges faced by organisations
Source: (Economist Intelligence Unit Limited, 2017)
To exploit global economies and to enhance the scope for maximising transmits of information, it becomes difficult for managers to manage them virtually and in restricted area of performance. The company that masters the global management rules the industry. Over the past few years, many researchers have identified various challenges faced by organisations, as shown in the figure above, while managing global teams and many mechanisms have also failed to overcome those challenges which restrict them to manage global teams effectively (Wederspahn, 2011). This research paper will identify those challenges as well as several failed mechanisms used for managing global teams while providing with appropriate examples. This report will also discuss the need for global team management along with providing various scopes for its implementation.
The objective behind managing global teams can be various depending on the requirement and presence of organisation and challenges while managing them are also consistent. Many companies try to reach customers in different countries and to do business with them, companies requires building teams present in those areas in order to gain knowledge about marketing present there. Hence they appoint employees who gains proficiency in those regions to form a globalised team. With international diversity and bringing different cultures and perspectives together, organisational strategic goal of global emergence is fulfilled. To gain competitive advantage is very necessary in order to sustain the market and to enlarge business diversely is important for organisations to develop expansion in growth oriented way. Along with it multicultural teams in global organisation is more elastic and has lesser amount of prejudice which enables to appreciate diverse cultures (Hubbard, 2016). There are few challenges here faced by the companies like communications become difficult as different countries follow dissimilar languages and to understand each other virtually becomes complex. Miscommunications are created that can trigger considerable problems and generation of conflicts. Although employees in big companies are trained according to the requirements and are selected on the basis of fundamental situations, still to handle all the circumstances becomes convoluted. For example, a manager who has immigrated recently can lack knowledge of reallocation and adjustment troubles employees may have. Whereas if a local manager is appointed, that person may effectively manage the workplace and also assist the core team members gain knowledge about their local areas. Thus culturally assorted team allocation can face different types of issues precisely (Nelay, 2015).
To work with team members in a diversified group system, the members become more sanguine about their company. Study made by some author’s states that employees of global teams possess positive feeling about their organisation than identical groups (Cityholic Media, 2016). If diverse employees are merited or appointed it makes a feeling of unbiased nature of company among employees as they could see promotions and recruitments based on merits rather than race or ethnicity. By introducing globalised team in the company, the work atmosphere also becomes enriching and motivating as each one gets to gain knowledge about different cultures and new methods (Randall, 2017). Challenge that seems promising here is that not everybody in organisation are satisfied with diversified culture and if by possibility a culture oriented group gains high merits, they may make false assumptions about partisan of their culture. Thus becomes challenging for the management to make a balance between all cultures so that a sense of partiality is not developed.
The leaders in global organisations are expected to be fair and employees looks for prime leaders who can manage each chain with prominence. In global teams the leaders are generally from remote areas and since the employees are unaware of their taste and preferences, anxiety intensities are high on score and team members look out for ways in which they could please their leader. The employees or members in different location become keen listener and eager to gain information about the thoughts and requirements of their leader. This also makes the employees’ become honest when any mistake is made as they get worried about their impression in front of the leader. Thus global team leaders possess important responsibility to keep intact the team of organisation with their wit and expertise (Patel, 2017). The only challenge observed in this area is that although global leaders are classified superiorly, sometimes the excess demand from employees to diverse the knowledge becomes resistant for them to follow. They may also start to ignore their leader by making excuse of language and knowledge barrier. Thus the leader’s part becomes crucial in delegating works only after acquiring knowledge about the newly diversified area and people working in those regions. The leaders can also be picked by the management according to the leader’s credibility on the work and its ability to perform the work while maintaining comprehensive distance.
Strategies required by organisations to manage global teams prepare managers to make future predictions. The roles are delegated to global managing leaders according to the work required making systematic process to fulfil the goal of the company. For this integrated approach, it is required by the management to gain intellect through skill and experience to provide colleagues with support and developmental practises. Failing it can also give fallback of the organisation and the goal of gaining competitive advantage through globalisation may prove adverse. Thus organisations must implement enhanced technologies to make regular communications with their team members to make interconnectivity easy and continuous. The sensible management along with business growth strategy can implement their plan by involving talent collected from different parts of the world and utilise their knowledge of managing as their culture may possess superior knowledge (Marcos, 2014).
One major objective to study about challenges in managing global teams is to find out legal and cross cultural challenge that are faced by organisations. To work with many countries, organisations are bound to follow many legal and governmental regulations for which lots or paper work is required. It is a time consuming process and involves engaging outer people into company’s internal affairs (Rebecca Heller, 2010). For example, a company that exports materials to many countries and requires setting its subsidiaries in those exporting countries may require to present the organisational structure and information’s to the government and legal lawyers of other countries. The structure or the code which is followed in one country may differ from other countries. Thus chances of getting business rejection due to dissimilar way of proceeding are possible at any course of the business. Also sharing information’s with other country member may prove dangerous as people will always try to support their home country and may keep the individual responsibility secondary. Tendency of sharing internal information’s with other competitors are also possible which is one big challenge for today’s management. Thus company’s requires treading cautiously while appointing members in their globalised networking branches. The company must appoint people only after getting sufficient knowledge about them and their intellect. To share information’s with other team members must also be made after severe consideration so that if any leakage is faced, it does not harm the base of the organisation (Randall, 2017).
Figure: Challenges faced by organisations while managing global teams
Source: (Economist Intelligence Unit Limited, 2017)
Miscommunication Challenge
The scope of this research paper reflects to gain awareness behind the challenges faced after implementing globalisation in the company. This paper will make research by applying different situations and the problems leaders face in their global management. To be successful in the global economy and gain brand recognition, companies are getting more relied upon geologically dispersed workforce. The managers who lead global teams have to face several challenges and to create successful work groups becomes difficult when other people working in the some space belong to different cultures (Marcos, 2014). Miscommunication and misunderstandings creates deterioration in routine works while generating distrust for the company. Emotional disconnections are immensely observed in global teams as compared to the workplace where social distance is short. Members working in workplace of same country feel close and congenial and thus results in good team work. To align work with co workers becomes difficult who are geographically separated and managements have to struggle to build up an effective interaction. Therefore, mitigating social distance becomes prime challenge for management of global companies.
While managing global teams, the structural aspects influencing social distance are number of sites where team members are working and locations of their workplace. Along with it number of members who needs to be managed is also important to be considered. Power of the team leader plays an important role here. For example if a company is situated in Australia and its other branches at United States and Germany, there may be a sense that stronger country may have more power. The imbalance related here might bring negativity as individuals in larger group may feel antipathy toward the minority group (Gupta, 2001). The superior holders may feel that the latter may contribute less than their share of work and on the other hand minority groups may consider that majority group is commanding through the voice and power they have. Often a feeling of imbalance makes work and cultural in-groups and out-groups in organisation. The leader can overcome this challenge by encouraging sensitivity to differences and look ways to connect the groups to form a unity (McTeague, 2014). For example if a person who is leading a corporation in a country with different culture, the person can make arrangements in the company for cultural programmes and events. In the events, the moral principles and ethics that can build a good impression on employees can be represented and shown in attractive ways. Also the company may introduce different ways in day to day workings that brings sense of their cultural acceptance of present employees among other co workers (Roper, 2015). The regular encouragement among employees must be made by reminding them the core purpose of the business and direct energy toward organisational and corporate unit goals. The leader can also highlight periodically about how everyone’s effort fits into the organisation’s overall strategy towards advancement in its market position. For example, a global leader may organise a weekly conference in which merits are given to the employees according to their work performance and by reviewing their work, the employees may get enthusiastic to earn more merits. The merits may also comprise a category in which group coordination and collectives is reviewed to enhance workers level of collective focus. Enhancement of work interest in teams can also help in surpassing the competitors (Champion, 2015).
To eliminate social distance, the team members must have a tendency to interact and understand the feelings of fellow members which may comprise work or personal matters. Since geographically dispersed teams do not face each other’s regularly, they may lack mutual understanding (McCafferly, 2016). Global leaders must make sure that they build a system of deliberate meetings either verbally or virtually so that team members get connected with their leaders and can inform their leader about any unforeseen problem without hesitation. The challenge faced by leaders is to balance their participation to make sure their inclusion in the teams and not commandment. Sometimes the leaders are needed to get directive in nature so that any false notion among employees is eliminated but other times the leading managements have to make sociable relation with the employees (Zynczak, 2012). Since team members belongs to different cultures they may lack fluency in language and this problem must be anticipated by the management and if they are supportive in nature, the employees in global divisions may feel comfortable to work with their team leaders. While adapting a new culture, the global team leaders have to make assumptions regarding the changed behaviour and pattern of the society for which the leader might require stepping back, listening, watching the team members and then after manage according to their behaviour. Team leader might ask questions that could resolve their problem and anticipate any challenge or need of supplementary resources. This process may also help global leader understand the member’s insight about how they feel as regards to accomplishing the job (Roper, 2015).
Technological and connectivity challenge is still faced by the company’s while managing global teams although technology has seemed to developed immensely in today’s world. The mode of connectivity and communicating must be considered carefully by the management as any hindrance in it can increase social distance among team members (Rebecca Heller, 2010). Nowadays videoconferencing has enabled rich communication among organisation’s and people through which both emotional and contextual information could be perceived. E- Mailing is also very fine mode of communicating digitally which also ensures recording of data. To select appropriate technology to manage teams is an important decision that requires to be taken in a thought-out manner which could fulfil the requirements of connecting with all global members with ease. For instant conversations, digital communicators prove to be the best along with engaging social Medias where parties situated worldwide can be approached. To present physically in other country’s departments, the leaders might require travelling or appointing any local person to handle the situation on company’s behalf. Therefore to choose between the modes of connection i.e. instant or time taking, becomes challenging for global leaders (Gupta, 2001). For example, if a team covers multiple time zones and requires communicating during inconvenient times of the day, telephoning or video conferencing might not prove beneficial. During a day time communication can be made but at night hours, not every members might be present. Thus appointing a permanent and local team leader would prove to be a good idea. On the other hand if delicate information and confidential information needs to be shared, team leaders might need to make distant travelling. Instant technologies are valuable in managing teams but before persuading it the opportunities and affects must be acknowledged by organisations to get efficient and uninterrupted interpersonal dynamics.
Figure: Major challenges recognised in global team management
Source: (Architexa , 2017)
In literature, the challenges relating global team management have been reviewed by many authors who point out major challenges that are faced by a globalised company in their long run. Cultural barrier brings in miscommunication and affects inter connectivity among team members and builds gap between working criteria and ultimate goal of the company (CultureWizard, 2016). The members of different countries may possess different work habits and dressing style that makes a possibility of in acceptance in organisations. The challenge regarding cultural difference has been considered greatly by researcher’s that suggests finding preventive methods to overcome this challenge as it has affected many companies severely in recent survey’s made by them (CultureWizard, 2016). Team leaders require global business skill development as it is demanded immensely for gaining competitive advantage and superior branding. While making global teams in international countries, it becomes difficult for the managing team as they may not understand the importance of new ventures goal initially. To build well-built formation, the base requires being strong and operating in foreign country might prove more challenging in initial stages of formation where new countries culture and governmental rules are unknown (Anthony C. Klotz, 2013). The base company or the company’s headquarters are responsible for managing other subsidiaries. The challenge here seen is in making their decisions for foreign based subsidiaries as solution to their problem might seem easy from distant country than applying it on their subsidiaries. Thus different policies and management structures are required to be followed by managements so that none of their global teams face difficulties in facing them. Another challenge that manager’s faces are to make each team member participate equally in fulfilling company’s goal. Since geographical barrier is persistent, to digitally convey with them can become formal and lack a sense of belonging sometimes (Cornell University , 2010).
Conclusion
Based on the analysis made on the above report, the global team managers who want to improve their global team effectiveness needs concentrating challenges relating communication barriers, knowledge sharing across geological contexts, managing cultural difference, organising time schedules and attentiveness. To manage global teams becomes critical job of managements, and managers play a key role in assisting and training global team members to develop communication practices that promote a sagacity of alleged proximity, trust and identification. The difference in perception about their team leader’s and management’s effectiveness is the major threat that company’s face and to make other co members believe in them is biggest challenge (Cornell University , 2010). Culture based challenge requires leaders to implement skills and develop intellect in order to manage cultural diversity and create global mindset while selecting team members. Many authors suggest making teams in a culturally distributed manner that could provide more homogeneous kind of work and enhance company’s performance through divergent thinking. Innovations are introduced in operations from throughout the world and thus different perceptions are brought together in global teams. In literature, debates concerning the impacts of diversified organisations on team performance are been consistent (Marcos, 2014). Many organisations seem to perform profoundly in global markets as compared to the organisations working in restricted area. Those global companies sets an example of efficient management and proves that if a company’s strategic formulation are made after gaining thoughtful consideration, can prove beneficial for the firm. The above report gives evidence of literature showing the challenges that organisations faces in globalising their operation and to overcome those challenges, researchers have made studies that can assist the global companies while making global strategies.
References
Anthony C. Klotz, K.M.H.B.H.B.a.L.W.B., 2013. New Venture Teams: A Review of the Literature and Roadmap for Future Research. [Online] Available at: https://www.hmieleski.com/Publications/Klotz_Hmieleski_Bradley_Busenitz_JOM_2014.pdf [Accessed 15 Septmber 2017].
Architexa , 2017. Challenge of Distributed Teams and Outsourced Development. [Online] Available at: https://www.architexa.com/learn-more/distributed-teams [Accessed 15 September 2017].
Boyraz, J.L.G.a.M., 2014. International HRM’s Role in Managing Global Teams. [Online] Available at: https://jenngibbs.net/wp-content/uploads/2014/09/Managing-Global-Teams-IHRM-Chapter_Gibbs-Boyraz_Revised-Final.pdf [Accessed 15 September 2017].
Champion, D., 2015. The Leadership Behaviors That Make or Break a Global Team. [Online] Available at: https://hbr.org/2015/06/the-leadership-behaviors-that-make-or-break-a-global-team [Accessed 15 September 2017].
Cityholic Media, 2016. Advantages of Working in a Global Team. [Online] Available at: https://medium.com/@Cityholic/advantages-of-working-in-a-global-team-780d5d10f277 [Accessed 15 September 2017].
Cornell University , 2010. Unlocking the Promise of Global Teams: Trends and Challenges. [Online] Available at: https://cahrs.ilr.cornell.edu/Spectrum/detail.aspx?id=10027 [Accessed 15 September 2017].
CultureWizard, 2016. VIRTUAL TEAMS SURVEY REPORT – 2016. [Online] Available at: https://cdn.culturewizard.com/PDF/Trends_in_VT_Report_4-17-2016.pdf [Accessed 15 September 2017].
Economist Intelligence Unit Limited, 2017. Challenges for human resource management and global business strategy. [Online] Available at: https://futurehrtrends.eiu.com/report-2014/challenges-human-resource-management/ [Accessed 15 September 2017].
Gupta, V.G.a.A.K., 2001. Building an Effective Global Business Team. [Online] Available at: https://sloanreview.mit.edu/article/building-an-effective-global-business-team/ [Accessed 15 September 2017].
Hubbard, M., 2016. Developing a Global Management Cadre. [Online] Available at: https://slideplayer.com/slide/7960489/ [Accessed 15 September 2017].
Marcos, 2014. Managing global teams. [Online] Available at: https://www.slideserve.com/marcos/managing-global-teams [Accessed 15 September 2017].
McCafferly, D., 2016. Top Challenges of Managing a Virtual Team. [Online] Available at: https://www.cioinsight.com/it-management/careers/slideshows/top-challenges-of-managing-a-virtual-team.html [Accessed 15 September 2017].
McTeague, C.Z.a.L., 2014. Global Leadership and Global Teams. [Online] Available at: https://www.imd.org/globalassets/publications/insightsimd/docs/37—global-leadership-and-global-teams.pdf [Accessed 15 September 2017].
Mickels, B., 2013. Ten Best Practices For Successful Global Teams. [Online] Available at: https://www.worldwideteams.com/GlobalTeams_BestPractices.pdf [Accessed 15 September 2017].
Nelay, T., 2015. Global Teams That Work. [Online] Available at: https://hbr.org/2015/10/global-teams-that-work [Accessed 15 September 2017].
Patel, R., 2017. 7 Key Takeaways In Building A Global Team. [Online] Available at: https://www.entrepreneur.com/article/285324 [Accessed 15 September 2017].
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