Week 15: Virtual Teams

For last class we talked about something which is getting stronger with globalization, which is virtual teams, although it can be develop within teams from a same country it is common for it to be developed in multicultural teams that are formed by people of different locations.

It’s been said that people need to personally interact with each other in order to develop strong bonds, but internet has proved them wrong, nowadays you find people that even fall in love through internet and only meet when they’re getting marry, so if it works for love in must certainly work for business.

So there where two main knowledge I gained this week, the first one is to understand why a virtual team exists, and it turns out there are many reasons for it, the most common one is that people who live in different locations can work together, but there are also some virtual teams that exist because of the lack of time people have to meet, may be because they’re traveling all the time or because they have a busy schedule, and finally some virtual teams are created in order to have an extended domain of a market or a knowledge.

The second thing I learned is that there are four factors for virtual teams to be successful, the first one is having a common goal clear for everyone in the team, if you don’t know where you’re going you may as well get lost, the second one is to create trust, although it is harder to create trust virtually a strategy in order to get to know the people behind the screen must be develop, the third is to have a coordinated work and communication process, lack of communication is the main source of misunderstanding in teams, so there must be a  define set of communication rules in order to share information successfully, and the fourth one is to preparing cultural and technical training, this is so teams can work in the same page and can understand where the others are coming from.

Knowing about virtual teams is very relevant today because it is one of the working styles of the future. As globalization increases and companies expand, executives travel much more adn have less time, therefore, forming virtual teams are a good choice in order to overcome distance and time barriers. Also, I think it is an excellent way of taking adavantage of technological development and promoting intercultural exchange.

Research Question: What are the best ways to motivate millennials?

Millennials are the generation between 18 and 35, there a big part of the actual workforce of the world and by 2020 will almost have of the workforce of the world, they represent a challenge for today’s companies since they have different motivations sources than passed generations. Many times companies encounter with the problem of having great employees that resign fast looking for motivation elsewhere. Last week I attend a conference on teamwork at the university, and the lecturer proposed the following recommendations in order to get millennials motivated:

• Explain what the company is, where they’re projecting themselves and what they want to achieve.
• Give opportunity to be part of community service, they believe in being part of a better world so they want to work hard to get it.
• Develop in between positions, for them is really important to move forward and faster, so it is important to have positions they can escalate to.
• Keep up the feedback, they like to know how their work is perceived and how they can improve it.
• Offer more flexibility, they like to own their time and be autonomous, so it is really important to offer different kind of conditions to do their job. 
• Provide educational and professional development, since they want to keep getting better.
• Give them time for personal projects, they need independence and have a desire to fulfill their personal expectations as well as their professional goals.

Week 14: Motivating Across Cultures

This week we talked about motivation, as we had already approached what successful teams act like, we had to go to the source of all mankind success, which is indeed motivation.

Motivation is what encourages someone to fulfill some goal or task, that I already knew, but I also found out about some curious stuff, like motivations changes according to the type of culture someone belongs to, so for example if you are in an individualistic culture you will often find that one person will attribute the achievements to themselves, while in collective cultures people recognize the achievement as product of a group effort and attribute the team’s failures to themselves, also, in individualistic cultures people work harder when they have to do a job by themselves so the recognition is for them, but when they work in teams they work less harder since they would have to share recognition with all his teammates. On the contrary, collective cultures work harder when they’re in teams and actually like to share achievements. What was most impressive, was the fact that not only because you’re part of an individualistic culture means your pattern behaviors are individualistic, many times you can develop collective skills, and that is a prove of how diverse human beings are.

The second thing I learned is that just like taste of music, sources of motivation change according to the culture, so in many countries money is the main motivator, I bet that’s the case of Colombia, many times you find people bored in a working position because of their salaries, while in other countries, like Japan, harmony is the main motivator, as Japan is a country where conditions and environments are more important than anything else, and finally you find countries like Germany, where what matters is how interesting the job is, doesn’t matter that much the money or your teammates, but how much you can get out of your job and how challenging it is.

Reserach Question: What are the best companies to work in the world?

It’s been a while since companies like Google are at the top of the list of the best companies to work at, looking deeper inside into those companies I found out they have some common characteristics like they all encourage people to study and get into social work, also it gives employees the opportunity to create their own schedule and decide where they work, likewise they have quite horizontal teams, meaning everyone has a defined role  and have autonomy to do it and lastly they work in spaces specially build to offer diverse environments where employees can go to do their job or have a break.

References

Great Place to Work. (2014). 2014 FORTUNE’s 100 Best Companies to Work for. Retrieved from: http://www.greatplacetowork.com/best-companies/100-best-companies-to-work-for

Tkaczyk, C. (2014). 10 Great Workplaces for Millennials. Retrieved from: http://fortune.com/2014/05/15/10-great-workplaces-for-millennials/

Week 13: Forming, Storming, Norming, Performing, Adjourning

This week we took a look building multicultural teams and how to manage them in an effective way. I am not going to talk about two points, but only about the most important one (and which I found very useful for my future professional life): Bruce Tuckman’s five-stage model.

It was developed in 1965 as methodology to reach high-performance multicultural teams. In the beginning, the model consisted on four stages: forming, storming, norming and performing; and later, the fifth stage, adjourning, was added to the others. This model has proved to be applicable since ample evidence has been found about the existence of the stages.

First stage is forming. It is the first contact among the members of the team; everyone has its own expectations and attitudes toward the team. It is time to get to know each other and share those expectations. Once a good and comfortable atmosphere has been developed, it is time to define roles and goals.

Second stage is storming. This is a highly critical stage in which norms and standards are set. Commonly, this is when members start to disagree and question how the team will work, because in a multicultural team each person has a different working style. Mediation and respect are the keys to overcome this stage.

Third stage is norming. A collectivistic orientation starts to emerge as members interact and know more about each other. People continue socializing, therefore giving positive feedback about the work done. Differences turn into agreements and strengths.

Fourth stage is performing. The team is now articulated; everyone knows its functions and duties and complies with them, developing specialized skills. Frictions and differences are mitigated, and performance improves.  

Last stage is adjourning. Work has come to an end, goals were achieved. It is time for the team to disintegrate; however, up to this point close relationships might have been formed making it not easier to say goodbye. Developing long-lasting professional relations is fundamental for future teamwork opportunities.

Whenever we are working in teams, especially in multicultural teams, identifying or propitiating these stages can be very effective to quickly articulate the group and achieve the proposed objectives. I consider forming and storming the most critical stages, because in these stages bases are built and the future of the team is at stake as the common saying states: “Since breakfast you know how dinner will be”.

Research Question: What strategies to manage multicultural teams do exist?

When working in cross-cultural environments, setting the basic standards under which teamwork will be guided is fundamental to grant a good working environment. For example, as simple as defining a common language or channel of communication can make the difference between failure and success. According to Brett, Behfar and Kern (2006) most successful multicultural teams’ managers apply four strategies when dealing with cultural challehenges:

1. Adaptation: acknowledging the existence of cultural gaps and designing strategies to avoid misunderstandings. Team members must learn to coexist with those cultural differences.
2. Structural intervention: organizing the team strategically by forming sub-groups based on common shared values and customs.
3. Managerial intervention: setting up rigorous standards aimed at avoiding conflicts and defining mechanisms of resolution.
4. Exit: remove members not able to adapt to the multicultural environment when previous strategies have failed.

The least managerial intervention is desired. The two last strategies are last-resort measures, then, managers must propend for achieving the implementation of the two first strategies. The ideal is the team can overcome cultural differences within a environment free of strong regulatory frameworks.

References

Brett, Behfar and Kern (2006). Managing Challenges in Multicultural Teams. Retrieved from: http://web.merage.uci.edu/~kbehfar/papers/managing.pdf

Week 12: Ethics in Business

This week we approached a very controversial topic: business ethics. And when talking and debating about it (without never coming to a conclusion), it is inevitable to mention the dichotomy of Relativism vs. Universalism. For this reason, this was the most relevant point debated in class.

Universalism refers to the existence of a universal and general criterion under which actions are judged and evaluated.  It means everybody should act according to same standards no matter what your religion, nationality, race or gender is. On the other side, relativism argues standards are adapted to the conditions and characteristics of every society. Therefore, judging people’s actions in other regions or countries would be a mistake and might be a sign of ethnocentrism. However, I think this is an endless debate and one has to make up his own mind about it.

The second point I found relevant was the different types of briberies. I got kind of amazed that something that is not correct, or even illegal, has a classification. The three types of briberies seen in class are [1]:

• Whitemail Bribes: Intended to induce someone (usually a government official) to do or omit doing something in violation of his lawful duty, or to exercise his (or her) discretion in favor of the payer’s request for a contract, concession, or privilege on some basis other than merit. They usually are universally condemned.
• Lubrication Bribes (gratuities): Facilitate, expedite or speed up government approvals to which the company would be legally entitled. Its acceptability is greater than whitemail bribes.
• Extortion: A government official seeking payment for an action or omission to which the company would be legally entitled.

The way I see it, knowing which countries accept which kind of bribes can be very useful when doing business abroad, because you know if you can use them and/or if you can expect to receive them. I think it is also an issue of tactics, if you choose not to do it in a country where it is not perceived as bad and your competitor does it, then you are in disadvantage.

Research Question: What institutions do people consider as the most corrupt?

To answer this question I resorted to Transparency International’s 2013 annual report [2]. Out of 107 countries surveyed, 51 perceive political parties to be among the institutions most affected by corruption (countries shown below), 20 countries chose the judiciary institutions and 36 elected police as the winner. Colombia belongs to the group blaming political parties as the most corrupt, but it is also one of the few countries (7 in total) who also said the parliament and legislature to be one of the most corrupt institutions.  

                                                                            

Source: http://www.transparency.org/gcb2013/results

References

[1] Prof. Heiko Schmidt – Intercultural Management. Class slides.

[2] Transparency International (2013). Global Corruption Barometer 2013. Retrieved from: http://www.transparency.org/gcb2013/report

Week 11: Confucian and Southern Asia

The cultural cluster presented this week was Confucian and Southern Asia. In my case, I have always found Asia as a very intriguing region, being culture the main reason. Furthermore, the increasing importance of China in world’s economy and its expansion throughout the world have turned Asian cultures into very popular in western countries and people getting interested in learning more about them, especially if we are told that no matter if you have the most innovative product, knowing their culture in deep is critical if you really want to do business with Asians. The two more important aspects about these clusters’ culture for me were:

In first place, I corroborated that Japan and China, as high-context countries, place a high importance on relationships. Relationships they establish are based on trust. They do not deal with anyone who are not trustworthy; in fact, when doing business with Chinese, in the first meeting you shouldn´t be surprised if they invite you to a karaoke or to their homes. Rejecting the offer can be a show of disrespect. We as westerners may think “I took this long trip to do business, not to play a karaoke”, but for them building a close relationship is the starting point.

The second aspect I found important is Chaebol model in South Korea. It is a structure of conglomerates composed of companies from different economic sectors. The collaboration and strategic alliances formed among them allow the Chaebol to report high growth, diversify their business, mitigate risks and promote innovation. This economic model is the reflection of teamwork and collectivism characteristic of Asian countries. In fact, similar business structures are found in Japan, named Zaibatsu and Keiretsu.

Knowing, understanding and analyzing these concepts is a good advantage to negotiate with Asians. Actually, here in Colombia we find many small and big entrepreneurs wanting to do business with Chinese; however, they think this is the same as how they do business in Panamá. Therefore, I think it would be very important entrepreneurs can have access to training on Chinese culture since, unfortunately, in our country little importance is given to culture when doing business.   

Research Question: What is the impact of guanxi when doing business with China?

Guanxi, a concept which has no translation in English, makes reference to the importance of building relationships in China. As a matter of fact, its growing importance not applies for interpersonal but also to business relationships. According to Sullivan and Goh (2011), a Chinese company will feel more comfortable doing business with a company which they have a strong guanxi  because they believe it will make it far easier for them to trust their business counterpart. Establishing guanxi is not only important with customers, but also suppliers, partners and even the government, to the extent that when having problems and facing legal obstacles, the stronger your guanxi is, the easier you can overcome those difficulties.

Reference

Sullivan, M. & Goh, A. (2011). The Most Misunderstood Business Concept In China. Business Insider. Retrieved from: The Most Misunderstood Business Concept In China

Week 10: Arab Cultures and Sub-Saharan Africa

Last class we had the presentation on Arab cultures and Sub-Saharan Africa. I liked it very much because I just know few things about these regions, so I learned a lot. I got quite interested in the values promoted in their cultural systems and how they can be applied to business environment. The two most relevant points, for me, in the presentation were the Ubuntu, and Islamic Banking.  

Ubuntu is a philosophy and ethical principles prevalent in Southern Africa. The term is derived from the expression: “umuntu, nigumuntu, nagamuntu“, that means a person exists because of others. I have already heard about it, and it seems interesting to me because it evidences the collectiveness implicit in these people’s minds, as defined by the Liberian activist Leyma Gbowee: “I am because we are”. Therefore, the existence of the individual makes sense because it coexists with others; I see this principle as the confirmation of Aristotle’s famous quote “Man is by nature a social animal”. Even though, it is one of the most beautiful cultural values I’ve seen so far, many others argue this has become an obstacle for Africa’s development. We held a debate in class about this issue, but in the end is not easy to come up with a final answer.

The second point was about Islamic Banking. I had already read a couple of times in the Bible about the charging of interest as usury but I did not know it was actually applied today. Many people defending banks argue that interest is banks’ gains so it is completely right to charge it. However, the huge growth Islamic banking system has experienced, is defying savage capitalism. And going deeper, all this is based in a principle of ethical investment and risk-sharing.

 Knowing these rooted cultural values is very important in my opinion because this is how you really identify the essence of a culture. But also they are very useful tools when interacting with people from these regions because you can kind of anticipate their behavior and be prepared regarding the way they perceive things. All this can really make a difference between success and failure if trying to establish a relationship with a person or a company in those countries.

Research Question: Has Ubuntu proved to be successful when implemented as a management style?

One of the most successful cases in the implementation of Ubuntu culture is the African Bank Miners Credit, which since 1993 provides access to financing and financial services to South African miners. In 2003, the company decided to start work in the Investors in People (IPP) recognition, as Tom Mile, the National Manager, says: “Some of our people lacked sufficient formal education and we felt that if we spoke about Investors in People, it might be quite difficult for some of them to understand. This swayed our decision to implement Investors in People, using the uBuntu philosophy. Irrespective of which ethnic group they belonged to, we knew all South Africans understood the concept of uBuntu, and they would therefore, be able to identify with the concept very easily”. The company’s management identified five key business areas: growth, security, equality, social responsibility and safety in the workplace. All of the work and strategy was communicated to every person in the organization through the use of music, stories and sharing sessions where Ubuntu measure was promoted. The commitment achieved from the entire organization led them to finally obtain the IPP recognition.

Reference

Mangaliso, M. (2003). "Building Competitive Advantage fro Ubuntu".  Academy of Management Executive, 15(3), 23-33. Retrieved from EBSCOhost.

Bedoya, J., Chaverra, S. & Bustamante, L. (2014) Case Study Analysis. Retrieved from: https://es.scribd.com/doc/219150807/Case-Study-O-C

Week 9: Germanic and Eastern Europe

In this week’s class the teacher shared with us the cases from two multinational companies which faced problems, misunderstandings and obstacles arising from cultural differences. Their experiences were the two most relevant topics of the class for me, because real-life cases proofs the critical role culture plays in business. Then, I am going to sum up the most interesting points I found in each company’s experience.

1. Daimler-Chrysler merger took place in 1998. Between the American Chrysler  Corporation and the German Daimler-Benz. After the merger, DC was one of the biggest automotive company in the world. However, during the merger both companies gave priority to business issues and did not pay much attention to the cultural issues; in fact, projects of corporate culture and management styles were not incorporated within the negotiation and management of the merger. Both of them were ignoring the fact that they came from different countries and they were trying to merge two different corporate cultures; two different ways of doing business; in the end, this translated into a poorer performance of the firm. From this experience, we can learn that synergies in a merger not only emerge from the economic resources and expertise of its members, but also from the cultural values and practices employees have. That is why every dimension of the business should be incorporated in the implementation process and establishing appropriate channels of communication that allow intercultural exchange between both companies. 
2. By 1997 Walmart had set up a store in Germany to take advantage of the highly-profitable retail market of the European country. However, by 2006 this strong multinational was leaving German territory. The reason was clear: German did not embrace Walmart’s philosophy as other countries had done. Practices such as chanting “Walmart, Walmart, Walmart!” every morning, feigned smiling at every customer (Germans are not comfortable with smiling at a stranger), spying on co-workers to report misconducts and not listening to employee’s feedback were not well-seen by Germans.

These two cases provide us with valuable learning about the management of culture in an international context and how to integrate it with the financial and strategic management of every business. I would dare to say that if you do not manage culture appropriately, you are not only discarding a source of synergies and new opportunities, but also creating a big obstacle. Therefore, there should be a stronger commitment from multinationals to properly deal with cultural differences.

Research Question: What stereotypes on German culture are actually true and describe real values adopted in their behavior?

Nick Schäferhoff in his post “9 German Stereotypes That Are Straight Up True” share with us some very popular beliefs about German culture which may be true.

First: Germans are direct. Sometimes rude and characterized but being not much diplomatic as they want to get to the point; they are characterized by being very goal-oriented. Second: Germans love structure and organization. There are several laws regulating different aspects of life and Germans obey them; however, this can lead to certain degree of inflexibility. Third: Germans are punctual. In fact, it is considered a virtue. (I imagine we Colombians are not their preferred counterparts jaja). Fourth: Germans love soccer. It is not only popular, but they are really good at it. Fifth: Germans are well-insurance. You can secure almost anything, they like feel protected. Sixth: Germans are distant. Their personal space is definitely wider than in other cultures. Seventh: Germans love beer. Eighth: Germans know how to bake bread. Baking has a long-standing tradition in the country and bread is part of traditional German cuisine. Ninth: Germans love sausage. Meat in general is a mainstay of German cuisine.

References

Schäferhoff, N. (n.d.). 9 German Stereotypes That Are Straight Up True. Retrieved from: http://www.fluentu.com/german/blog/german-stereotypes/