global virtual teams, gvts
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Global Virtual Teams fueled by Globalization of Multi-National Corporations need to communicateTRANSCRIPT
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Harvey, Michael; Novicevic, Milorad M.; Garrison, Garry // Global virtual teams: A human
resource capital architecture // International Journal of Human Resource Management, 2005,
16(9), p1583-1599 // ISSN: 0958-5192
Globalization has organically introduced Global Virtual Teams (GVTs) and made them
an essential part of any rapidly expanding international companies. GVTs, which are groups of
people working together even though they are geographically separated, have the potential to be
catalysts in effectively utilizing a company’s human resources (HR). Even though GTVs show
great promise, problems associated with an interconnected global work force are amplified and
new issues have arisen which include difficulty working with individuals from differing cultures,
decreased ability for members to build social/cultural capital within a team, difficultly to asses
performance, and GVTs cannot convey informal rules or norms which in turn would lead to an
increase in misunderstandings and confusion.
GVTs value-creating competencies can be broken down into: self-related competencies,
team context-related competencies, and vision-related competencies. These competencies, if
bundled together effectively, will foster a sustainable competitive advantage over the firm’s
global rivals. Another determining factor in how to efficiently use an organizations competencies
would be the balance between the development of a firm knowledge base and the knowledge
shared by collaborating GVT members, or the management of corporate HR architecture. Human
capital needs to be invested in, trained, highly adaptable to change, and most importantly and
perhaps the most difficult task, it needs to be measured in order to add value to an organization’s
GVT. Using a six-stepped approach, human capital becomes both a strategic tool and can
“directly influence dynamic capabilities.” The next critical capital is social capital, built around
associability and trust, which is loosely defined as the social relations employed to facilitate and
achieve certain goals. Having trust in another’s reliability and ethical integrity and the ability to
associate individual level goals with collective goals are the most important dimensions of social
capital. Even though social capital is conceptualized for the collective, it can enhance individual,
team, and firm level social capital. Political capital, broken down into reputational and
representative capital, is not the social grease of a firm but rather the ability of GVT members to
developed political skills throughout the global project. There are six key leadership behaviors of
GVT members that influence the building of political capital: social approximation, level/type of
interaction, scope and reach, dispersion of knowledge, durability, and degree of formality.
Although the pursuit of political capital can reduce the level of conflict and confusion among the
members of a GVT, it can also be limited in its effectiveness due to the short longevity of most
GVTs. Building political capital or skill among its GVT counterparts goes back to trust which is
strengthen the longer a relationship is fostered. Another problem that could arise when
developing a political capital strategy, especially true when merging regional operations, is the
delusion of control and a rather limited, complex hierarchy.
Each previously mentioned capital involves to some degree the final critical capital, cross
cultural capital. Cultural intelligence and cross cultural competence involves three key
dimensions which include, cognitive, motivational, and behavioral dimension. Utilizing these
facets is vital to receiving, gathering, and interpreting cross cultural information which in turn
can be used to develop and maintain cultural competence for the GVT. It is obvious that an
organization’s ability to expand its operations beyond its cultural boundaries is directly related to
how strong their cross cultural capital is within its GVTs.
In order to maintain and develop capital within a GVT, a six pronged approach has been
used successful to increase efficient use of human resources. The very first step is to formalize
the assessment process and to institutionalize it, which requires establishing the cost of the
collection process, determining who will conduct the assessment, and finally to standardize or
institutionalize guidelines of the assessment itself. The second step is to establish a monitoring
assessment team, one that is reflective of the number, diversity, and the amount of intangible
assets of the GVT, but more importantly membership should be driven by the skill set and
experience of potential assessment team members. The next step is to develop a non-imitable,
durable, appropriable, substitutable, and superior set of measurements for monitoring GVT
capital. Even though there are numerous metrics and methods in measuring GVT capital, two
metrics are more commonly used: economics value added and market value added. The fourth
step revolves around developing contingency strategies for protecting GVT capital. Effective
capital security plans protect against the sometimes inevitable depletion of capital stock and are
comprised of four elements which need to be simultaneously utilized in order to protect the
intangible core of capital in a GVT. Once a proactive strategy for developing capital stock of
GVT is implemented the final step in the capital assessment process is to monitor and account
for capital in the GVT over time. During this step capital becomes a team asset and is bundled
together with similar capitals in order to improve the GVT capabilities and performance.
In order for global firms to stay relevant in today’s hyper-competitive market an
organization needs to embrace, invest in and implement global virtual teams as incubators of
innovations. GVTs are increasingly used as strategic tools in developing and maintaining a
competitive edge for a global organizations. GVTs are made more efficient by reconfigured
human resource capital architecture to meet the demands of GVTs, a continuous assessment and
reassessment program, and enhanced competences of its intellectual capital.
Dubé, Line; Paré, Guy. // Global Virtual Teams // Communications of the ACM, 2001, 44(12),
p71-73 // SSN: 0001-0782
A study revolving around global virtual team leaders from businesses diverse in sizes and
industry all seemed to have the same challenges, recommendations, and all saw the same benefits
from their use of GVTs. Different and at times conflicting cultural norms lead to an array of
issues from management style clashes to cultural bias but most concluded that with pre-project
cultural training and education some of this avoidable cross cultural problems would be solved.
Communication barriers resulting in a loss of vital ideas and information, but could be curved by
introducing structured communication sessions, the implementation of technology to check
grammar and spelling, and use of basic foreign language training. Different levels of IT
proficiency, lack of technology training, and incompatible, unreliable, or unavailable technology
was another major issue weighing down the efficiency of their GVTs. After the daunting task of
selecting the right media for each task, GVT leaders are faced with the inherent downfalls of
telecommunication, which include the lack of physical interaction, nonverbal cues, and
synergies. Implication of an effect GVTs require the creation of a reliable electronic workplace.
Goodbody, Jenny // Critical Success Factors for Global Virtual Teams // Strategic
Communication Management, 2005, 9(2), p18-21 // ISSN: 1363-9064
Written from the experiences of BOC group’s global change manger, there are three
factors that determine the success of VGTs: team formation, trust and collaboration, and team
communication. The first stage, and most important to the health of a GVT, includes carefully
positioning and clearing defining who the GVT leader, or sponsor, should be. After individual
ownership of the collective goals is set and measured, it is important to recruit members of the
team with different functional backgrounds. As is true with any initial meeting, first impressions
are everything which holds especially true to the vitally important kick off meeting meant to
jump start the relationships between the GVT members. BOC group’s manager highlights the
most important cultural influences that a GVT should be made aware of, which includes:
individualism vs. collectivism, power distance, uncertainty avoidance, and task/relationship
orientation. One should also re-evaluate previous co-located team members in order to asses if
they will be of any value to the new GVT. The final step in the first factor is to build a team
identity, which will help with associating a brand with key goals and objectives of various
GVTs. When trying to foster trust and collaboration, the second factor in the success of a GVT, it
is important to ensure consistency. Formal teleconferences, a stricter schedule and hard deadlines
are meant to combat the lack of oversight and management of a GVT, but also help with
encouraging collaboration among its members. As with any manager it is extremely important to
communicate success to its members and be aware of individual efforts in the form of
celebrating achievements. The final factor is team communication, which arguably is the most
important part of a successful VGT. Be proactive about sharing information for the next
conference call by preparing 6-10 bullet point overviews, select the appropriate technology in
relation to what needs to be communicated, and finally effectively facilitate team meetings, are
all ways to increase the GVT’s commination.
My Comments
This topic seems to have been written exclusively for myself. I hold two jobs where I am
in continuous participation within a global virtual team. Given that most of what was said I can
agree with I would like to add a couple more things. In regards to technological issues that where
stated in “Global Virtual Teams,” ten years has since passed and I think those are no longer
applicable to what one would consider a GVT in today’s business landscape. Furthermore, in
today’s global market employees that do not have technological knowhow are extremely rare. If
one has to be told how to organize your email or how to organize a CRM program, you might not
have a job in the future. Most issues presented by Line Dube and Guy Pare are solved by
technologies that have come out in the last 15 years. If I cannot speak a client’s language, I have
software that will translate it for me, if I have to use software I am unfamiliar with Youtube
undoubtedly has a tutorial for me, and if one mode of media fails me I have dozens of other
backups. Just as an example, I have split screens showing a live stream of my office in Sao Paulo
and a direct google hangout button for each of my partners from Austin, Tx to Cape Town, South
Africa. I cannot stress how important Goodbody’s categories are for effective GVTs. Without
realizing that I was following her guidelines I have managed to follow them down to the smallest
details, like the kick off meeting in which we have an initial live streamed launch event built
around a more causal vibe with music. The only addition I would have to insert would be the
value of improved technologies. We utilize a festival management software which embodies
many of Goodbody’s key categories like ensuring consistency or encouraging collaboration by
being able to give tasks to others, complete other’s tasks in order to gain more trust, and even
allows for smaller celebrations when key goals are met in the form of a competitive point
system. Interesting enough, our teams are tasked to write out 3-6 bullet point pre-conference call
notes in order to steer the videoconference in the right direction and to make sure we are utilizing
our time wisely. What we have done to combat time differences, listed as an issue with GVTs, is
to assign off hours to certain directors or purchasers, where employees have the option of
working at certain times that would coincide with our offices in Brazil or Singapore.