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

Running head: RESEARCH REPORT ON GVT
Student Name: ..........................
Student ID: .......................
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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RESEARCH REPORT ON GVT
5.4 solution for the e-leadership.........................................................................................13
6. CONCLUSION...................................................................................................................14
References.............................................................................................................................15

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RESEARCH REPORT ON GVT
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