Managing Multicultural Teams

Genesis of Multicultural Teams

•Existence of multicultural interactions•History of multicultural teams•Globalization and opening up of

economies•Competitiveness •Race to offer products at best prices•High expectations from the customers

Why is the topic important?

•Increased diversity in the workforce•Differing cultural sensitiveness•Cultural superiority/inferiority complexes•Effects on productivity and efficiency•Exponential increase in the cost of

deliverables•Projects or deal survival

Challenges faced by multicultural teams •Direct vs. Indirect communication•Trouble with accents and fluency•Differing attitudes towards hierarchy and

authority•Conflicting norms for decision making

Challenge 1:Direct vs. Indirect communications•Western cultures: Meaning is direct and

explicit•Other cultures: Meaning is embedded in

the way the message is presented•Difficulty for westerners to come to terms

with the subtleties of indirect communication

•Cross-cultural inconsistencies leading to reduced information sharing, interpersonal conflicts, or both

•Jane is an American manager leading a U.S.-Japan customer data system

•On discovering flaws in the design, she sends an e-mail to her American boss and Japanese team members

•Pleases the boss but embarrasses her Japanese colleagues

•Jane gets isolated from the team

Scenario 1

Challenge 2:Trouble with accents and fluency•Perception of status or competence linked

to command over language, fluency and accent

•Difficulty for the teams to recognize and utilize technical expertise of non-native speakers

•Motivation of non-native employees affected

•Increased frustration and anxiousness culminating in interpersonal conflicts

Scenario 2

•Mike is an American member of a US-Japanese team assessing the expansion of a US retail chain in Japan

•Ignores Japanese consultant’s feedback•Considers the consultant unintelligent

based on his lack of fluency in English

Challenge 3:Differing attitudes towards hierarchy and authority•Decision making practices different

across cultures. Eg.-US managers Vs UK managers

•Restriction of the information flow by managers from other cultures

•Understanding the bigger picture•Generating mutual respect for other

party’s decision making process

Scenario 3

•Carlos is a manager of Mexican heritage working for an I-Bank

•As per Mexican culture, he keeps his queries open ended

•His American teammates think he doesn’t know anything

Challenge 4:Conflicting norms for decision making

•Cultural perspective influences the time taken before making a decision

•Other influences include the breadth and depth of analysis done before making a decision

•Managers from US and Europe generally take quick decisions

•A way to resolve such conflict is by making minor concessions on both sides

Scenario 4

•An American company is negotiating the purchase of Korean products

•The first day of negotiation ends with 3 points being discussed

•On the second day the American side starts with point 4 but Korean team wants to re-discuss points 1-3

Strategies

The four basic strategies to deal with these challenges are:

•Adaptation•Structural intervention•Managerial intervention•Exit

Strategy 1: Adaptation

•Adaptation works when team members are willing to acknowledge and name their cultural differences

•Team assumes responsibility to figure out how to work with them

•Moreover team members participate in solving the problem themselves and learn from it

•Often the best possible approach, as it involves less managerial time

Complicating factors

•Team members should be exceptionally aware

•Negotiating common approach takes time

Strategy 2: Structural intervention•Team is subdivided to mix cultures or

expertise•Tasks can be subdivided•Can be extremely effective when

subgroups demarcate team or members are defensive and are prone to cling to negative stereotypes

Complicating factors

•Care should be exercised in redistribution or it might result in reinforcement of the preexisting differences

•Subgroup solutions have to fit back together

Strategy 3: Managerial intervention•Higher up manager sets the ground rules

when the situation approaches a stalemate

•Such intervention is very effective when set early in the life of the team

Complicating factors

•Team becomes overly dependent on the manager

•Team members may be sidelined or become resistant

•Late intervention may provide only temporary relief

Strategy 4: Exit

•Arises when the teams are permanent •An unsalvageable situation develops due

to high strung emotions between team members, souring interpersonal relations

•Used as last resort strategy

Complicating factors

•Talent and training cost is lost

Conclusions•Multicultural teams a reality irrespective

of geography today•Best way is to behave with maturity &

evolve mechanisms to avoid conflict•Structural intervention should be done

very carefully, as there is a danger of deepening divides and unwanted groupism

•Farsightedness required from the manager; intervention, if required, should be should be done at the earliest

Critique• Challenges not directly attributable to

cultural differences, but to the behaviours which stem out of the differences

• “Context” being a better operational word than “Culture”

• Political antagonism may also be an important factor. Eg. – Indian & Pakistani cultures being similar, but deep divides exist

• Self fulfilling prophecy: A manager’s broad knowledge of cultures may result in preconceived notions of individual behaviour, which may then stimulate it

Critique(contd.)

•Danger of incompetence being attributed to cultural differences

•National background just one of many variables

•Issue of the culture to which the manager belongs

Q & A