Benefits and Challenges of Culturally Diversified Global Virtual Teams (GVTs)

This research report outlines the benefits, challenges, and management strategies for culturally diversified global virtual teams (GVTs) in an Australian organization. It covers the definition, characteristics, benefits, and problems of GVTs, with a focus on communication issues, cultural differences, and lack of idea acceptance. The report provides management solutions for these problems.

Running head: RESEARCH REPORT ON GVT
Student Name: ……………………..
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Course: 7011CAL
Assignment Task: Research Report
Report Title: Global Virtual Teams or GVTs
Due date: …………………………
Length: 2784 words
Tutor: ……………………………

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RESEARCH REPORT ON GVT
Table of Contents
EXECUTIVE SUMMARY........................................................................................................3
1. INTRODUCTION................................................................................................................5
2. DEFINITION AND CHARACTERISTICS OF GVT..............................................................6
2.1 definitions of global virtual teams..................................................................................6
2.2 characteristics of the global virtual team.......................................................................6
 culturally diversified..................................................................................................6
 utilization of technology to communicate..................................................................7
 temporary or geographical dispersion......................................................................7
3. BENEFITS OF CULTURALLY DIVERSIFICATION IN GVT...............................................7
3.1 greater availability of talents.........................................................................................7
3.2 technology oriented......................................................................................................8
3.3 encouraging different languages..................................................................................8
3.4 high productivity............................................................................................................8
4. PROBLEMS CAUSED BY CULTURAL DIVERSIFICATION IN GVT..................................9
4.1 communication.............................................................................................................9
4.2 cultural or ethnic differences.......................................................................................10
4.3 lack of idea acceptance..............................................................................................11
4.4 e-leadership................................................................................................................ 11
5. MANAGEMENT SOLUTIONS FOR IDENTIFIED PROBLEMS IN GVT...........................11
5.1 solution for communication.........................................................................................12
5.2 solution for cultural or ethnic differences....................................................................13
5.3 solution for the lack of idea acceptance......................................................................13

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5.4 solution for the e-leadership.......................................................................................13
6. CONCLUSION................................................................................................................. 14
References........................................................................................................................... 15

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EXECUTIVE SUMMARY
The major objective of this report is understanding the entire concept of Global Virtual Team
or GVT in a specific Australian organization that has decided to involve such teams within
the business. These kinds of virtual teams are usually described as being culturally
diversified, electronically communicating and globally distributed working groups. The
members of the virtual teams are responsible for communicating properly amongst the team
members and thus these teams are extremely effective for executing project. The
communication of this specific global virtual team is done with various communication
technologies, such as video or audio conferencing services, fax, telephones and electronic
mails. The most efficient as well as effective applications of technology, which are extremely
helpful for these teams are VoIP or voice over the internet protocol. There are three distinct
characteristics of GVTs, which are technology, geographical dispersion and cultural
diversification. These characteristics are highly required for making a specific GVT
successful. The most significant benefits of this global virtual team are allowing to be
technology oriented, encouraging several languages throughout the world, providing high
productivity and having better availability of talents. Although, global virtual team provides
such noteworthy and significant benefits, there are few major issues that arise due to the
factor of cultural diversification within such team. The first issue here is communication, in
which trust, communication styles and linguistic barriers are the main problems. The team
achievements are ceased due to these problems. The next subsequent issue due to the
presence of cultural diversity in the global virtual teams is ethnic as well as cultural
differences. Team members could not easily accept other members from different cultural
backgrounds or values and thus conflicts take place, which are often difficult to manage. Due
to the cultural diversity, the two other issues are e-leadership as well as lack of accepting
ideas. All of these above-provided issues or problems of cultural diversification can be
properly solved with certain management strategies such as inclusion of technology, proper
trainings, regular follow up and meetings. This particular report has outlined the major

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benefits, challenges and their respective management strategies for this global virtual team
in the Australian organization.

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1. INTRODUCTION
GVT or global virtual team could be stated as a group of individuals, who are
eventually working as a team from different geographic location and is relying on
communication technologies. These GVTs can communicate with the help of several
communication technologies such as video conferences, audio conferences, fax and emails
(Pinjani & Palvia, 2013). These global virtual teams are responsible for engaging and
delivering the projects with no physical interactions amongst one another. The most
significant characteristic of this GVT is that all the project works are done with the help of
technology. The technological applications play the most important role in this type of team
and hence technological importance is enhanced in this scenario (Klitmøller & Lauring,
2013).
This research report will be outlining a brief discussion on cultural diversification with
the characteristics, benefits, challenges and their management strategies for a global virtual
team. A specific organization in Australia has taken the decision to consider the
establishment of several teams that are situated in several countries throughout the world.
For the purpose of this establishment of GVTs, the senior executives of the organization
wants to research about the various issues or problems that can occur from the employment
of the culturally diversified team members within the project. This report will focus on three
major characteristics of GVT with relevant information. Moreover, the advantages of the
culturally diversified teams with their problems will also be provided in the report. The final
part of this research report will provide various management strategies for reducing those
problems.

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2. DEFINITION AND CHARACTERISTICS OF GVT
2.1 definitions of global virtual teams
“Global Virtual Teams (GVTs) are groups that are (a) identified by their organizations
and group members as being a team; (b) are responsible for making and implementing
decisions important to the organization’s strategy; (c) use technology-supported
communication more than face-to-face communication; and (d) work and live in different
countries” (Pinjani & Palvia, 2013, p. 1).
According to Pinjani and Palvia (2013), the GVT is the virtual team, which is
acknowledged by the team members and even their organization for being a single team
having similar goal and objective. The GVTs implement their decisions, which are
advantageous both the organization as well as its strategy. This type of team utilize
technology supporting communications like video or audio conferences, phone calls, emails,
fax and many others. The global virtual teams usually do not communicate as the face-to-
face teams and these are culturally diversified.
2.2 characteristics of the global virtual team
The global virtual team is extremely popular in the entire world because of its
flexibility (Erez et al., 2013). There are several important characteristics of GVTs. The most
significant and important features or characteristics of the global virtual teams are given
below:
 culturally diversified
According to Morgan, Paucar-Caceres and Wright (2014), the first and the foremost
characteristic of the global virtual team is that the members of this team are culturally
diversified. The cultural diversity is the significant quality of the different or diversified
countries and is different with the mono culture (Lilian, 2014). Another advantage of global
virtual team is that globalization is incremented. Moreover the best talent is procured by this

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presence of GVTs. Since, the team members are from dispersed locations, it is much easier
to find out the best talent from these teams (Magnusson, Schuster & Taras, 2014).
 utilization of technology to communicate
The next significant characteristic of a global virtual team is that for the reason of
geographical dispersion, technology is the only way of communication. The team members
take help of several technology oriented communication such as faxes, video and audio
conferences, emails or any other similar technology (Derven, 2016).
 temporary or geographical dispersion
Another noteworthy characteristic of the global virtual team is that it is dispersed
geographically; that refers to the fact that team members are from different geographical
locations.
3. BENEFITS OF CULTURALLY DIVERSIFICATION IN GVT
There are some of the major and the most significant benefits of the culturally
diversification in the global virtual teams (Derven, 2016). The various benefits of culturally
diversification in the global virtual team are given below:
3.1 greater availability of talents
According to Carter et al., (2015), the first and the foremost benefit of this type of
team is that there is a greater availability of talents. Since, the virtual teams have their team
members from all over the world, there is a pool of talents present within these teams.
Hence, the recruitment of these teams is done from everywhere. There is a high potential
that the productivity of these teams would be better since, only the best talents are procured
here eventually (Iorio & Taylor, 2014).

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3.2 technology oriented
The second benefit of the cultural diversified global virtual teams is that these teams
are completely technology oriented. As the communications of these global virtual teams are
done with advanced technologies, these are absolutely technology oriented (Hosseini &
Chileshe, 2013). Without the utilization of technology, it is not possible to communicate with
the rest of the team members. The regular video or audio conferences, phone calls,
electronic mails, faxes and many others are eventually utilized by them for completing the
daily meetings and assignments (Shachaf, 2008).
3.3 encouraging different languages
Taras et al., (2013), state that since, the team members are from different locations,
a cultural diversification takes place and thus there is a pool of various different languages.
Although, there are certain issues with the linguistic barrier, the global virtual teams
encourage different languages. This type of encouragement is extremely important for the
virtual teams, since the team members, who are not comfortable with the utilized language,
might feel left out from the team (Killingsworth, Xue & Liu, 2016). With the proper
encouragement, help and technology use, that particular member would be able to restrict
such issues in a better manner.
3.4 high productivity
The fourth important benefit of the cultural diversification in these global virtual teams
is the higher productivity. The team members, who are comfortable for working from home,
could eventually increment the overall productivity of the team (Iorio & Taylor, 2014).
Moreover, since the regular travelling and office distractions are eliminated, there is higher
scalability as well as flexibility within the team (Hosseini et al., 2015). This in turn increases
the total productivity of these teams subsequently and the team performs even better.

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4. PROBLEMS CAUSED BY CULTURAL DIVERSIFICATION IN GVT
Although, the above-stated factors clearly state that there are several important and
significant benefits of the cultural diversification in the global virtual teams, there are few
problems present as well, which make these teams often suffer through various issues
(Purvanova, 2014). These several problems or challenges for cultural diversity in the global
virtual team are given below:
4.1 communication
The most significant problem for the cultural diversity in GVT is communication (Crisp
& Jarvenpaa, 2013). As the team members are geographically dispersed, communication
can be stated as only method of connecting with each other. Three distinct issues are
present for communication in cultural diversified teams that are lack of trust, language
barriers and communication styles.
4.1.1 lack of trust: This is major challenge of communication for cultural
diversification in a global virtualized team. The virtual working subsequently creates mistrust
within the team members (Hosseini et al., 2013). The team members of the global virtual
team rarely work at similar time and hence could not see one another for getting any
response. Moreover, they do not even get immediate responses. Less productivity is the first
demerit of this particular issue. If the team members of team leaders are not trusting their
fellow members, continuous monitoring of the tasks and progress is required. The excess
interaction within the members or leaders are also disturbing for the team members as they
could not work independently. Klitmøller and Lauring (2013) state that, moreover,
accountability is completely diluted for lack of trust and the reinforcement of ability also
occurs in a culturally diversified GVT. Hence, the expectations of team are not clarified and
the members suffer eventually.
4.1.2 linguistic barriers: Although, the cultural diversifications in the global virtualized
teams encourages different languages, often a linguistic barrier creates a major issue for this

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team. The team member, who is not comfortable with the utilized language, might feel left
out from the team (Gibson et al., 2014). This would also affect the productivity of the team,
since one of the members will not be able to perform better. Moreover, this member will be
unable to share the views or ideas with his fellow team members; thus the specific
organization might be losing some efficient or effective ideas for the GVT. These types of
barriers are also responsible for coordination and communication breakdown within team
members. Work culture difference is the next disadvantage of such teams.
4.1.3 communication styles: This is the third issue of communication for culturally
diversified global virtual teams. Several styles of communication are present like passive
style, aggressive style, passive aggressive style and finally assertive style (Purvanova,
2014). Passive style of communication is considered as one of the weakest style since the
members are unable to express their views with others and hence communication gaps and
misunderstandings take place. Aggressive communication subsequently focuses on the
clarity of expression of words or ideas. These types of communicators make the respective
passive communicators often dominated by the aggression. Passive aggressive
communicators could eventually express their views or ideas; however could not confront
any situation (Iorio & Taylor, 2014). They could not express their words since they are
unable to show body languages. Assertive communicators can effortlessly express their
feelings and views and also look for the expressions of other team members. Hence, these
various styles of communication are responsible for bringing major misunderstandings within
a culturally diversified GVT.
4.2 cultural or ethnic differences
According to Pinjani and Palvia (2013), these issues are also common for cultural
diversification in a global virtual team. I has been observed that some team members are not
happy with few individuals, having a separate ethnicity. The religious as well as cultural
backgrounds are often kept as top priority. The subsequent prejudice or even discrimination
increases and hence these problems are welcomed. Team interactions are hampered for

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these issues and teams face conflicts. Moreover, another reason of ethnic differences is
power distance.
4.3 lack of idea acceptance
Another important and significant issue of cultural diversity in the global virtual teams
is lack of acceptance of ideas. If the team members will not accept ideas of team members
due to the diversified culture, conflicts arise eventually (Cogliser et al., 2013). Hence, team
coordination is affected majorly and collaboration is also affected. As these members lack
from proper training, they cannot accept the ideas easily.
4.4 e-leadership
This is the fourth significant issue for cultural diversity in global virtual teams. E-
leaders have the ability of adapting several styles of leadership according to their cultural
backgrounds. Gilson et al. (2015) state that, they are extremely motivating as well as
advanced in comparison to the others; however few issues are present. For the changes in
cultural and company structures, e-leaders could not control their team efficiently.
Furthermore, for the dependency of communication, e-leaders cannot check for the
progress.
5. MANAGEMENT SOLUTIONS FOR IDENTIFIED PROBLEMS IN GVT
Management strategies are the significant techniques, which are to be utilized for
directing as well as controlling the organization for the proper achievement of the respective
set of objectives or goals (Purvanova, 2014). These strategies majorly involve the various
strategies of leadership, business execution and administration. The management strategies
are the management techniques that are used for solving any type of issue present in the
organizational management. The respective organizations could eventually create a clear

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vision by proper development of proper longer term oriented strategies. Thus, the necessary
procedures and resource allocation are easier for the achievement of these goals. These
teams often face several issues associated to cultural diversification (Taras et al. 2013). The
management solutions or strategies for the above mentioned problems within the global
virtual teams are as follows:
5.1 solution for communication
Communication is the most significant and important problem for the cultural
diversification within the global virtual teams. The most relevant management strategies to
resolve these issues are as follows:
5.1.1 arrangement of face-to-face meeting: According to Klitmøller, Schneider and
Jonsen (2015), this is the most effective and efficient managerial strategy for removing the
communication issues. Since, when any particular team member does not comprise of any
scope for face to face communication with the other team members; there is a high chance
that the communication gap might take place (Cogliser et al., 2013). The best method to
mitigate these issues of lack of face-to-face communications is by the proper arrangement of
the face to face meeting. The arrangement of the monthly or weekly video and audio
conferences for each and every team member would be quite effective in these cases
(Shachaf, 2008). Body languages are extremely important to reduce these types of
misunderstanding or communication gaps.
5.1.2 utilization of technology: The next strategy for the reduction of communication
issues within the culturally diversified GVTs would be the perfect usage of technologies. The
technology is responsible for the maintenance of connection and also fostering of the
relationships between team members (Zaugg & Davies, 2013). Social interactions are also
needed for the improvement of the collaboration as well as coordination. Furthermore, team
members can know one another with these technologies and miscommunications or
communication gaps would be easily removed.

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5.2 solution for cultural or ethnic differences
The most effective method of reducing the cultural or ethnic differences is by the
arrangement of cultural awareness programs. These programs would help the specified
team members in providing deep level of attribute. Proper trainings are also required to
encourage social relationships or variance acceptances with attributes.
5.3 solution for the lack of idea acceptance
The next issue that is being identified in the global virtual team is the lack of idea
acceptance between members of a team. The most effective methodology to solve these
types of problems is by the maintenance of clarity within ideas (Hoch & Kozlowski, 2014). If
the team member is completely proper and clear with his or her idea, it is evident that his or
her team members would be listening to him or her. Another effective strategy to solve this
type of issue is role clarity. The respective team leader should arrange for meetings and all
members should be allowed to represent their views and ideas. This would encourage that
individual and the remaining team members would listen to him without raising any issue.
The next effective management strategy in this issue is the involvement of reward or
recognition (Gibson et al., 2014). This particular strategy would help both the audience as
well as the speaker to participate in such meetings and they would feel motivated.
5.4 solution for the e-leadership
The various issues that are associated to the e-leadership can be easily resolved by
bringing changes within the processes. An e-leader has the responsibility of properly
outlining the various guidelines for his team. The positive or immediate feedbacks from the
respective e leader are extremely important for this type of teams. The efficient or effective
team leader should always provide an immediate feedback for all the issues that had been
raised and should also be absolutely clarified with his responsibility. Proper motivational
push is also needed to solve such problems.

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6. CONCLUSION
Therefore, conclusion can be drawn that GVTs are the significant group of people,
who eventually work altogether from various geographic locations in the entire world. These
specific teams are always dependent on the ICT. Each and every member of this globalized
virtual team has the same goal and thus these goals are significantly attained by following
the team activities or projects. Since, the members are dispersed and distributed throughout
the world, regular communication is extremely important for them. It is not possible to a part
of this team, without proper communication. This is even considered as the fastest mode of
communication. Phone calls are also effective for these teams; however, due to the
differences in time zones, it often becomes a major issue to call another team member.
Various new and innovative ideas are being explored with the help of such teams and hence
a major success is being achieved. These virtual teams often undergo cultural diversity
issues and hence the team loses its positive attitude. The above report has clearly outlined
the brief discussion on cultural diversification of GVTs. The several details regarding the
problems like cultural differences, e-leadership and few more. However, significant
management strategies or solutions are also explained in the report for eradicating the
issues.

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