Managing Cultural Conflicts among Virtual Teams in Nigeria

In the context of employee resistance being found as ethical, Nigeria is considered because new systems hamper their culture.

Change Management
1

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
1. CRITICALLY ANALZING THE DRIVING AND RESTRAINING FORCES FOR
CHANGE IN SOLONI OIL............................................................................................................3
2. EVALUATION OF Kotter’s eight steps to transforming organizations to manage the
transition to virtual teams.................................................................................................................5
3. EXPLAINING RESISTANCE TO CHANGE AND THE REASONS WHY THE NIGERIAN
TEAM ARE RESISTING CHANGE.............................................................................................8
4. NIGERIAN TEAM’S RESISTANCE TO CHANGE BE VIEWED AS ETHICAL.................9
5. EXPLAIN ING WHY THE ORGANIZATIONAL CULTURE MAY NEGATIVELY
INFLUENCE THE CHANGE TO VIRTUAL TEAMS..............................................................10
CONCLUSION..............................................................................................................................11
REFERENCE.................................................................................................................................12
2

INTRODUCTION
Change management is considered as most important part of business management. This
is because it influences organization to restructure business operations as per the current market
trends. Therefore, management has to formulate several strategies to incorporate changes within
business entity (Sommer and ed. al., 2006). This approach has found very effective in order to
resolve different issues and management problems that have been incurred due to change
business environment and various other factors.
The present study is going to discuss various factors associated with the change
management with the reference to case of Soloni Oil is a Gas and Oil Exploration Company
which is listed on the London AiM Market. The present study is determined various forces that
influence company towards change. It also discusses various factors and resistance of employees
towards the change.
1. CRITICALLY ANALZING THE DRIVING AND RESTRAINING
FORCES FOR CHANGE IN SOLONI OIL
As per the given, there are several factors evaluated that are influencing and restraining
forces the management of Soloni Oil towards the changes. In this process, several issues are
addressed as the case that play important role in change management process. In this context,
some most important motivators are evaluated below that influence change with in Soloni Oil:
SWOT analysis
Element of SWOT Description
Strength  Efficient business expansion strategies
 High quality products
 Committed of environment safety
 High financial growth
 Application of latest technologies
Weakness  Lack of coordination among teams
 Conflict of interest among staff
 Ambiguous corporate communications affected marketing
Opportunities  Business expansion in Nigeria
3

 Increase in demand of fuel
Threats  Government regulations
 High Competition
 Environmental laws
 Economic instability
 Business expansion: As per the case, it is evaluated that the management of Soloni Oil
is expanding business into two different geographical areas– with projects in the North-
West Territories of Canada and Saudi Arabia. As per the requirement of two new project,
the management of organization has to implement several changes within business
system and decision making process along with project development activities (Caldwell
and Linden, 2006). All these practices will help management for scheduling of different
activities and business operations as per the distinct requirement of the project. In this
regard, it has been analysed that every organization has to consider different positive and
negative aspects while managing different business operations associated with business
expansion. Therefore, management has to implement significant changes in different
functions of organization as per the requirement of new project through which top
authorities are able to control distinct negative aspects associated with the projects such
as risk of finance, lack of coordination, improper communication etc. By considering
these factors, the management of Soloni Oil is able to generate good returns and
influences the performance of the projects with an positive manner (Beiman, 2006). In
this process, organization can implement the changes in the process of finance
management, operation management etc. Stakeholder management: By considering the given case, it has examined that Soloni
Oil is is small organization so as company has to aware of the values of its shareholder
and potential new staff. In this context, it has been analysed that the success of an
organization is greatly depending on its stakeholder management approach. Therefore,
the management of Soloni Oil requires to manage significant changes in business
operations that would influence productivity of company so as shareholders are able to
4

assess good worth of their investment (Reusch, 2006). Apart from that management has
to manage several changes in rewards and wages system by considering the expectations
of client. Therefore, it can be stated that management has to consider value of
shareholders and employees. Safety of environment: In modern era, safety of environment is being addressed as a
most critical issue by every organization. This element influences company for
minimizing CO2 emission etc. Soloni Oil is an oil and gas of company and management
is committed for implementation of significant change in business operations and supply
chain management that would play important role for ensuring safety of environment by
minimizing CO2 emission (Govender and Kruger, 2009). This factor influences
management for application of advance technology during production and supply chain
management. In this regard, it has been evaluated that high-tech tool production tools and
tactics assist management for reduction in carbon emission. In addition to that company
can reduce CO2 emission by using green devices of clean energy.
 Team management: With reference to present case, it is evaluated that Soloni Oil has
developed various virtual teams for handling different operations of company and
different overseas projects. As per the given case, it is examined that company is facing
significant issues during team management process while handling different project
(Successfully Transitioning to a Virtual Organization: Challenges, Impact and
Technology, 2010). This thing creates negative impact on efficiency of teams such as lack
of proper communication, lack of coordination, improper understanding among team
member etc. All these factors influence management for handling of different crucial
tasks associated with oil and gas industry for attainment of business objectives.
2. EVALUATION OF KOTTER’S EIGHT STEPS TO TRANSFORMING
ORGANIZATIONS TO MANAGE THE TRANSITION TO VIRTUAL
TEAMS
As per the per given case, it is addressed that management of Soloni Oil has developed
various virtual teams for managing different business operations and expansion in Nigeria. But,
team members who are working virtual teams are facing significant issues for establishment of
5

timely conversation and communication with the other team member with an appropriate
manner. It also hampers coordination among various projects and overseas business expansion
plans of company (Ramazani, Allahyari and Bali, 2011). In the process, Kotter’s eight steps has
been found very effective for managing the changes in business system as per the transition to
virtual teams. The evaluation of eight stages of Kotter’s model is carried out below:
(Source: The 8 Steps of Successful Change Management, 2014)
 Established a sense of urgency: It is first stage of change management system in which
management examines situation, crisis, potential crisis and opportunities that influences
change. In the context of present case, this section helps managers of Soloni Oil in
evaluation of current efficiency of virtual team and issues which are faced by team
(Malek and Yazdanifard, 2011). As per the case, it has evaluated that management and
different team members of virtual teams are facing problems related to communication
and scheduling of meetings so as management is not able to communicate new plan to
different team members. In this context, it has been evaluated the managers of UK and
6

Nigerian teams are not establishing appropriate coordination as per the requirement of
virtual teams. Therefore, management has to implement an appropriate system through
which management is able to enhance efficiency of team members working in different
departments.
 Form a powerful coalition: This section of Kotter's eight step change management helps
managers of Soloni Oil in formulation of a group of some individuals that has appropriate
power and authorities for managing change. For transition of virtual teams, a group can
be formulated with an combination of different individuals that include technical
individuals, management top officials, expert of team management etc. for resolving
different issues associated with virtual teams. In this process, leadership skills of
managers play important role for establishment of appropriate coordination among
different team member. In this process, skills of manager such as communication skills
and assessment of perception of others have played important role to influence behaviour
of others. Leadership skills assists manager for establishment of appropriate work
environment within business as per the requirement of change.
 Creating a vision: This section has found very effective during change management
process. In this context, it is evaluated that formulation of an appropriate vision has found
very effective to direct changes (Das and Pande, 2014). On the basis of this, the
management of Soloni Oil is able to determine the objectives and goals for transition of
virtual team such as quick communication, proper coordination among different team
member and proper understanding about aims and objectives.
 Communicating vision: It is the forth stage of change management process that supports
managers of oil company in order to communicate new vision and strategies related to
organizational transformation process among different individuals associated with
different teams and who are directly affecting from change (Youssef, 2013). Therefore,
this section plays most crucial role in business decision making process based on
organisation transformation as per the current market trends. As per case, it is evaluated
that managers of different teams are not supporting each other that leads significant
issues in business management within Soloni Oil. Apart from that it is evaluated that
communication skills of leaders or managers helps organisation for conveying of
7

message with an appropriate manner to team leaders of different teams. Efficient
communication skills supports top authorities to motivate other individuals towards the
changes.
 Empowering actions: In this section, the management of organization tires to remove
obstacles to the change and influences change in systems and structures that work against
the vision. In the case of Soloni Oil, the management is able enhance communication
among virtual team by establishing proper schedule of activities among term members. In
addition to that application of high tech communication tools such as skype, online media
etc. to remove obstacles (Das and Pande, 2014). In this process, leadership skills plays
important role to boost up the morale of staff with the help of different communication
approaches towards change. In this process, management is able to apply both formal and
informal communication tactics to influence other individuals.
 Create short term wins: This section helps administration of Soloni Oil for carrying out
systematic planning for visible performance improvements and recognizing and
rewarding those individuals who are participating in change management process (Al-
Jaradat and et.al., 2013). This approach assists managers for influencing motivation level
of staff toward the improvement in efficiency of virtual teams.
 Consolidating improvements and producing still more changes: By considering this
section, the authority of Soloni Oil increases the participation of employees during
change management process. It also supports managers in handling of crucial tasks such
as hiring of new staff and technologies as per the requirement of organisational
transformation process. In this section, skills of managers related to assessment of
knowledge and expertise of other people provide significant assistance for selection of
best individuals through which management is able to generate positive returns with
change management team.
 Institutionalising new approaches: It is last stage of change management process in
which management of Soloni Oil is able to establish link between new behaviour and
corporate successes and also considers different tactics for leadership as per the
requirement of new system such as virtual teams (Todnem, 2005).
8

3. EXPLAINING RESISTANCE TO CHANGE AND THE REASONS WHY
THE NIGERIAN TEAM ARE RESISTING CHANGE
Resistance to change is defined as the act of opposing or struggling with modifications or
transformations with information that leads significant impact on work practices along with job
roles and responsibilities of an individual within an organization. In the context, there has been
several factors evaluated that encourage employee to resist for change. It includes change in job
roles and responsibilities, lack of skills that are required for new system, change in work culture,
change in job position, etc. All these factors are playing importance role to influence employees
in order to avoid changes. As per the present case, some important reasons are explained below:
1. Misunderstanding about the need for change is considered as most important factor that
influences resistance of change among Nigerian team of Soloni Oil (Witcher and Chau,
2010). This is because it staff do not understand the need for change than organization
has to face resistance of workers.
2. Fear of the unknown is identified as a most common reasons for resistance. In similar
way, Nigerian team could resist for new system due to fear of unknown. This situation
could be occurred when an organization is applying change with the help of Kotter's
model but management can resolve this issue through proper conversation with differnent
team members.
3. Lack of competence is also considered as most important factor that influences resistance
to change in organizations (Sommer and ed. al., 2006). This is because employees do not
have skills, knowledge etc. to manage different aspects of change.
4. Low trust is also termed as most significant element that influences employees of Soloni
Oil in order to resist against new things. Furthermore, it is evaluated that management has
to build trust between different individuals in order to assess active support towards the
change.
5. Lack of involvement of Nigerian team of Soloni Oil is also considered as important
aspect of change management process which is playing important role in decision making
process (Change Management Making organization change happen effectively, 2013). If
people are allowed to be part of the change then company is less resistance. Therefore, it
9

can be stated that lack of participation of workers in decisions making process creates
problems. Therefore, the Kotter's change model has provided extra attention on
communication of vision and empowering of action. This is because lack of involvement
of Nigerian team has created problems for management during the change management
process. Therefore, employees have not support during application of new system within
organization.
6. Poor communication with different team members about the change has influenced
resistance of change among Nigerian team of Soloni Oil about new approaches. It
includes improper discussion requirement of change, impact of new system and benefits
for team members (Sommer and ed. al., 2006). As per the Kotter's change process, poor
communication is considered as most important cause in which top authorities are not
disclosing appropriate information about change that hampers the process organization
transformation within oil and gas company.
7. Benefits and rewards are also playing important role in change management process. This
is because when the benefits and rewards related with change are not seen as adequate for
the trouble involved than management has to face resistance of change (Caldwell and
Linden, 2006). Therefore, the management of Soloni Oil has to face resistance of staff
member working in different normal and virtual team in all over the world.
In addition to that, Schlesinger has determined that development of leadership
competencies has played important role to influence others towards the contemporary challenges
of change and their adaptation within organizations (Schlesinger, 2015). In addition to that it has
been evaluated that application of different appropriate theories, knowledge as well as tools
enables managers to lead the Soloni Oil through successful change initiatives as per the
requirement of current market trends.
10

(Source: Ron Koller, 2015)
4. NIGERIAN TEAM’S RESISTANCE TO CHANGE BE VIEWED AS
ETHICAL
As per the given case, there are several factors addressed that view the Nigerian team’s
resistance to change is ethical. In this regard, some important factors are evaluated below: Reduction in communication with top management: By considering the information
provided in case, it is evaluated that the company has made significant changes in the
process of team management in Nigeria. The managers of Soloni Oil has formulated
various virtual teams which are managed by key technical managers in the UK. This
thing reduces personal interaction of Nigerian team’s with the top managers so as
management have not disclose all the information about change in business operations
(Beiman, 2006). In this situation, Nigerian team’s resistance to change is being
considered as ethical. This is because Nigerian team members are facing issues while
handling different task due to lack of personal interaction with top managers. Smallest and least productive team: In the context of present case, it is examined that
Nigerian team is identified as smallest team and Soloni Oil. In addition to that productive
of team is also not good. Therefore, new business system or activities could hamper the
11

performance and productivity of current team (Reusch, 2006). In the situation, resistance
of Nigerian team’s can be considered as ethical. This is because the team Nigeria does
not possess such capabilities which are essential to adopt changes and new business
system. Poor understanding of Nigerian culture: As per case, organization has formulated
several virtual team which are managed through UK. In addition to that management of
oil company has developed various plans in order to influence efficiency of overall firm
(Govender and Kruger, 2009). In this process, Soloni Oil company has formulated
change plan without considering traditions and culture of Nigeria than management
would address conflicts of culture among teams members while handling different tasks
in Nigeria. In the context, employee resistance will be found as ethical. This is because
new system hampers their culture.
Application of the Utilitarian ethical theory
This theory has found very effective during the change management process due to it has an
ability to predict the consequences of an action. In the context of change management process,
this ethical theory has found very effective to assess such factors that influence team members in
order to resist for change (Malek and Yazdanifard, 2011). In the present case, if team member of
Soloni Oil company predicts negative outcomes of change and company would face significant
losses then resistance of employees will be considered as ethical. This point system provides a
logical and rationale argument for each decision of management.
If I am working as team member of Nigerian team then I will be considered the resistance
of other team member is ethical. This is because the top authorities of company in UK have not
considered Nigerian culture while making different strategic plans and changes.
5. EXPLAIN ING WHY THE ORGANIZATIONAL CULTURE MAY
NEGATIVELY INFLUENCE THE CHANGE TO VIRTUAL TEAMS
The detail assessment of the case of Soloni Oil determines several factors of
organizational culture that could lead negative impact of organizational change to virtual teams.
In this process, lack of supportive culture has been identified as most element that leads
negatively influence the change. In this context, Deal and Kennedy's Cultural Model has
12

determined that corporate culture is determined as one of the key drivers for the organizational
success or failure. Therefore, A good, well-aligned culture has played important role to
influence of efficiency of employees within team. In this regard, the evaluation of case has
found that Uk and Nigerian teams are not establishing virtual meetings regularly (Ramazani,
Allahyari and Bali, 2011). This is because team members are not timely participating in virtual
meetings and some member are not attending these meetings. For example: As per the case, Ben
Smith, Senior Project Engineer and his colleague wants to discuss new project with Nigerian
team but member of this have not participated during virtual meetings. All these elements lead
delay in conversation. This kind of unsupported culture will create significant issues during
change management process and company would face negative outcomes from transformation
process (Malek and Yazdanifard, 2011). In addition to that Deal and Kennedy's Cultural Model
has determined several factors such as history of organization, values and beliefs, market
environment, etc. has considered most important factor for establishment of appropriate work
culture. In addition to that it is evaluated that different team of Soloni Oil are not supporting
each other during strategy formulation process that creates significant issues while
implementation of changes in business system.
As per case, it has been found some conflict of interest among team members working in
different teams. Therefore, some team member have not participated in virtual and acting as
barrier in organisational change (Das and Pande, 2014). This behaviour and attitude of
employees leads negative impact on work culture within business entity so as they have not
provided their active participation in change management process.
CONCLUSION
On the basis of above assessment, it can be concluded that every organization has to
update their functions and operations as per change in business environment that assist managers
for improving efficiency and productivity of organization. This report has found that Kotter’s
eight steps has provided significant assistance for application of change within business entity.
This investigation has addressed that success of organisational transformation is greatly
influenced by work culture of particular firm.
13

REFERENCE
Books and Journals
Al-Jaradat, O., and et.al., 2013. Impact of change management on the performance of employees
in university libraries in Jordan. European Journal of Business and Management. 5(2),
pp.169-178.
Beiman, I., 2006. Using the balanced scorecard methodology to execute China strategy. Journal
of cost management, 20(4). p.9.
Caldwell, F and Linden, A., 2006. PKN and Social Networks Change Knowledge Managemen.
Retrieved March, 10.
Das, K.K. and Pande, S.P., 2014. The Study of the Impact of Industrial Relations on Quality of
Work Life of the Work Force in the Public Sector Manufacturing Industries (PSUs).
Vishwakarma Business Review. 4(1). pp.87-92.
Govender, U. and Kruger, J., 2009. A resource allocation model to support efficient air quality
management in South Africa. OriON. 25(1). pp.53-68.
Malek, R. and Yazdanifard, R., 2011. Overview of Change Management and Its Implementation.
International Journal of Operational Management, Marketing and Services. 1(1). p.99.
Ramazani, M., Allahyari, A. and Bali, H.H., 2011. The Importance of Impact in Organizational
Changes on Management Accounting Change. Global Journal of Management and
Business Research. pp. 11(11).
Reusch, P.J., 2006. SIMULATION METHODS A ND EDUCATIONAL GAMES FOR
PROJECT MANAGEME NT.
Sommer, R. and ed. al., 2006. Public sector enterprise resource planning: issues in change
management. Edward Elgar Publishing.
Todnem, R., 2005. Organisational change management: A critical review. Journal of Change
Management. 5 (4). pp.369-380.
Witcher, B. and Chau, V.S., 2010. Strategic Management: Principles and Practice. Cengage
Learning EMEA.
Youssef, M.A., 2013. Management Control System Style and Management Accounting
Techniques Adoption. Journal of Accounting & Marketing.
14

Schlesinger, A. L., 2015. What Great Service Leaders Know and Do: Creating Breakthroughs in
Service Firms. Oakland, CA: Berrett-Koehler Publishers.
Online
Change Management Making organization change happen effectively. 2013. [Online]. Available
through: <http://www.mindtools.com/pages/article/newPPM_87.htm>. [Accessed on 9th
December 2015].
Successfully Transitioning to a Virtual Organization: Challenges, Impact and Technology. 2010.
[Pdf]. Available through: <http://www.global-dynamics.com/uploads/images/2010%201st
%20quarter%20SHRM%20%20Research%20Quarterly%20-%20Successfully
%20Transitioning%20to%20a%20Virtual%20Organization%20-%20Challenges,
%20Impact%20and%20Technology.pdf>. [Accessed on 14th December 2015].
15