HR Strategy: Factors Influencing Culturally Diverse Team Performance

This essay critically discusses four key factors influencing the performance of culturally diverse teams within a multinational corporation, aligning with the organization's overall HR strategy. These factors include societal influences (cultural standards, subculture, and social identity), organizational factors (culture, structure, policies, compensation, training, and performance management), cultural intelligence of employees (understanding and adapting to different cultures), and leadership/management styles. The analysis draws upon research literature and practical examples, such as Nissan-Renault merger, Google's supportive culture, and IBM's diversity initiatives, to demonstrate the impact of each factor on team effectiveness and organizational success. The essay concludes by emphasizing the importance of effective cross-cultural management in fostering collaboration, reducing conflicts, and enhancing productivity within diverse teams.

Running head: ANALYSIS OF CROSS-CULTURAL MANAGEMENT
ANALYSIS OF CROSS-CULTURAL MANAGEMENT
Name of the Student
Name of the University
Author Note

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1.Introduction
a. The statistical data of the organizations in the US state that the inclusion of
minority in the workplace has increased from 18% to 37% from the year 1980. The inclusion
of women in the workplace is not given importance by 40% of people. The levels of
promotion for women is low by 30% as compared to men. 67% of the total job seekers in the
country agree that the diverse or multicultural workforce is more important (Stutes, 2018).
b. The main point of discussion in the essay is related to the effectivity of the
multicultural teams in an organization. The four major factors that affect the culturally
diverse employees of the organizations will also be analysed in the essay (Mockaitis, Rose &
Zettinig, 2012). Culturally diverse teams are those which consist of employees who belong to
different backgrounds and cultures. The ways by which these teams can be managed in the
organization will be critically analysed in the essay. The four major factors that will be
critically analysed in the essay are, societal factors, organizational factors, cultural
intelligence, management.
2. 1st factor: Societal influences
a. According to, Du Plessis, (2011), the first factor that influences the performance of
multicultural teams in an organization are the societal factors. The societal factors consist of
the cultural standards, the subculture and the social identity. The national culture is mainly
related to the culture of the countries from where the employees in a particular team belong.
The subculture and the social identity is related to the religion, race, age or the locality of the
employees.
b. As argued by, Jacobson et al. (2014), the cultural standards are further related to the
perceptions and the thoughts of the various employees who belong to a particular team. The

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societal factors can act as major barriers or challenges for the achievement of effectiveness of
a team. The diversity related to the social backgrounds of the employees can cause many
issues in multicultural teams of the global organizations. For example, the cultural differences
had created huge issues after the merger of Nissan and Renault. The cultures belonging to
two different countries had caused problems in the work process of the employees.
c. Conclusion
The discussion can be concluded by stating that the research based on the positive
effects of societal factors on the multicultural teams is stronger as compared to the negative
effects.
2. 2nd factor: Organizational factors
a. As discussed by, Jacobson, K.L. et al. (2014), the second factor that can affect the
performance of the multicultural teams is related to the organizational factors. The
organizational culture and the structure of the organization affects the performance of the
multicultural teams. The policies and the procedures that are formulated by the organization
affect the ways by which the multicultural teams are managed. The structure of the
organization determines the way by which the teams are formed and they are managed.
b. As argued by, Mockaitis, Rose & Zettinig, (2012), the other major factors related to
the organization which affect the multicultural teams are, the compensation system, the
system related to training and development and the performance management system. The
system of performance management or rewards that us developed by the organizations affect
the performance of the multicultural teams. The structure of the organizations which are
developed to promote teamwork can have positive effects on the multicultural teams. This
helps in promoting teamwork among the employees who belong to different cultures and

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different countries. As argued by, Leung & Wang, (2015), the values and the attitudes of the
employees or members of the team affect the performance of cross-cultural teams. The
cultural differences between the members of the team can pose major challenges towards
performance of the employees. The multicultural teams are quite common in all the global
organizations and this further helps the companies in collecting diverse ideas and opinions
from the various types of employees. The attitudes and the values of the employees or the
members of the multicultural teams affects their behaviour and performance. The personal
values of the employees affect the relationship that they share with the others in the
multicultural teams. The interaction of the members of the team within themselves and with
the leaders of the organization is based on the culture or working environment that is
developed in the organization. For example – organizational structure of Google supports the
ideas and the opinions that are provided by the multicultural or diverse employees. The
culture of the organization is supportive of the diverse nature of employees and their different
opinions.
c. Conclusion
The organizational factors have shown positive effects on the multicultural teams of
the different organizations has been detected in the researches and the example that has been
discussed above.
2. 3rd factor: Cultural intelligence of the employees
a. As discussed by, Mateev & Del Villar, (2014), the third factor that affects the
performance of the multicultural teams is the cultural intelligence of the employees. The
cultural intelligence can be defined as the ability of the individuals to be flexible and skilled
related to the understanding that they have about a culture. The pervasiveness of the
multicultural teams in the various organizations is increasing steadily. The companies need to

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understand that it is compulsory for them to work in a multicultural environment. The
organizations therefore need to analyse the effects of the diverse cultures on the processes
and the performances of teams and the conditions in which these teams can perform better.
b. As argued by, Means, Mackenzie Davey, Dewe, (2015), the diversity in the
workplace results in variety of ideas which further lead to the high quality of problem
solving. The cultural intelligence of the various multicultural teams in the organizations help
the employees to feel more comfortable while they are working with the other members of
the team. The higher cultural intelligence of the team members will increase the ability of the
team members to accept the various differences in culture. The demographic diversity in the
multicultural teams affect the performance of the members in an adverse manner. Cultural
intelligence or CQ mainly refers to the knowledge related to the norms, values and the
practices in various cultures which include the social, legal and the economic systems. The
individuals in the organizations or the members of the team who have high CQ or cultural
intelligence who have high CQ can easily analyse the differences and the similarities that are
related to the various cultures. Motivational CQ is related to the ability of the individuals to
initiate, then maintain and further sustain the learning related to the different functional
behaviours in diverse situations. The individuals with higher motivational CQ can cope better
in the multicultural organizations. The concept of cultural intelligence therefore has a huge
impact on the performance of the various teams that are a part of the organizations. The
cultural intelligence that is possessed by the team members is beneficial for the successful
operations of the organizations (Mockaitis, Rose & Zettinig, 2012). The multicultural teams
which have high aggregate of CQ will have better climate for the diversity in organizations.
The multicultural teams benefit from the motivational CQ of the employees. The employees
are therefore attracted towards the new experiences related to cultures and they are confident
about overcoming the difficulties that can come in their way. For example – Google can be

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provided as the best example of multicultural organization. The employees have extensive
knowledge about the effects of multicultural workforce and their cultural intelligence is quite
high.
c. Conclusion
The discussion of the third factor can be concluded by stating that the cultural
intelligence of the employees affects the performance of the multicultural teams in a positive
manner. The researches and the practical example has also depicted the same.
2. 4th factor: Management of leadership
a. As discussed by, Du Plessis, (2011), the fourth factor that affects the performance
of the multicultural teams is the management or the leadership of the specific organization.
The leadership style that is followed in the organizations also has an effect on the
performance and management of the multicultural teams. The leaders or the managers of the
organization affect the performance of the teams that they lead. The style of leadership
affects the ways by which the members of a multicultural team perform or interact with each
other or with the leaders. The leaders who work in a collaborative manner with the members
of the team are more likely to improve the performance in the multicultural organizations.
These leaders are able to interact with diverse members of the teams and manage them in an
effective manner. The fast-moving and the globalised environment in the organizations have
led to the formation of many diverse teams.
b. As argued by, Mockaitis, Rose & Zettinig, (2012), the members of these teams
belong to different cultures or even different geographical locations. The main objective of
the leaders or the managers of these organizations is to manage the teams in such a manner so
that their productivity can increase, which in turn will increase the revenues of the

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organizations. The leaders who are unable to interact with the employees in an effective
manner fail to manage these teams. The conflicts between these teams increase and further
the employees belonging to the multicultural teams are not able to work with each other in a
collaborative manner. The influence of the leadership on the effectiveness of the various
organizations depends on the four major sets of team effectiveness which are, motivational,
cognitive, coordination and affective. The leaders are therefore responsible to diagnose the
problems, come up with suitable solutions and further put the solutions into action (Mateev &
Del Villar, 2014). A famous example of a successful multicultural organization is IBM. The
diversity of the employees of IBM is depicted in the increase in the number of female
executives by 370% from the year 1995 to the year 2004. The increase in the minority
executives in the organization by 233% is also another major factor that is related to the
diversity of the organization.
c. Conclusion
The discussion related to the fourth factor can be concluded by stating that the
leadership of the organization affects the performance of multicultural teams in a positive
manner.
Conclusion
The essay can be concluded by stating that the various organizations need to manage
their multicultural teams in an effective manner so that the conflicts can be reduced and
productivity can be increased. The most important factor that affects the performance of the
multicultural teams is the leadership and the management of the organization. The process of
cross cultural management therefore affects the productivity of the employees and the
collaborative culture of the organizations. The organizations are therefore recommended to

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organise and manage their multicultural teams in an effective manner so that there are no
issues in the operations of the various organizations.

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References
Du Plessis, Y. (2011) ‘Exploring teamwork paradoxes challenging 21st-century cross-cultural
conflict management in multicultural organizational context’, Cross-Cultural
Management, 12(1), 49-71.
Jacobson, K.L. et al. (2014) ‘Workplace bullying across cultures: A research agenda’.
International Journal of Cross-Cultural Management, 14(1), 47-65
Leung, K. & Wang, J. (2015) ‘Social processes and team creativity in multicultural teams: A
socio-technical framework’, Journal of Organizational Behaviour, 36, 1008-1025.
Mateev, A. V. & Del Villar, P. E. (2014) ‘Assessing intercultural competence of the Filipino
and American managers’, GSTF Journal of Business Review (GBR), 3(3), 46-51.
Means, A. Mackenzie Davey, K., Dewe, P. (2015) ‘Cultural difference on the table: Food and
drink and their role in multicultural team performance’, International Journal of Cross
Cultural Management, 15(3), 305-328.
Mockaitis, A. I., Rose, E.L. & Zettinig, P. (2012) ‘The power of individual cultural values in
global virtual teams’, International Journal of Cross-Cultural Management, 2(1), 193-
210.
Stutes, B. (2018). The state of US workplace diversity in 14 statistics - ArchPoint
Group. ArchPoint Group. Retrieved 26 April 2018, from
http://archpointgroup.com/the-state-of-us-workplace-diversity-in-14-statistics/