Chapter 8

Managing Multicultural Teams and International Partnerships

Multiple-Choice Questions

1. Which of the following is a typical team found in most all organizations?
   1. Work teams that manufacture products on an ongoing basis
   2. Cross-functional teams that have an ongoing function for manufacturing
   3. Work teams that shape work rules and set strategic direction
   4. Virtual management teams
2. Cultural differences can dramatically complicate the effectiveness of multicultural teams. Which of the following is not a cultural difference among team members that causes problems in teams?
   1. How accepting they are of power distance
   2. More creative problem solving
   3. Level of motivation to avoid uncertainty
   4. How much context matters in their communication
3. Which of the following most accurately describes the differences between individualistic and collectivistic cultures regarding group goals?
   1. Collectivists draw sharper boundaries between their own in-groups and out-groups than do most individualists
   2. For many collectivists, groups are the same whether they be family or work groups
   3. People who embrace individualistic values tend to use different yardsticks when dealing with in-groups and out-groups
   4. Group goals tend to be more important than individual goals in individualistic societies
4. Multicultural team members may have different views about how much analysis needs to be done before decisions are made, and as a result:
   1. Some members make decisions quickly, but are extremely patient when others want to take more time
   2. Individualistic Americans tend to be quick decision makers, but they focus more on effectiveness and group cohesiveness
   3. Collectivistic Japanese and Koreans tend to be willing to spend more time making decisions to solicit input from all team members, thereby preserving solidarity and cohesiveness
   4. Individualistic Americans tend to be quick decision makers, but they focus more on efficiency and getting the job done
5. Members from different cultures may have attitudes about status that lead to divergent expectations about how team members should be treated. For example, a Korean team member’s deference toward higher status members may be interpreted by Australians on the team as signaling:
   1. Lack of confidence
   2. Decisiveness
   3. Competence
   4. Egotism
6. Typical negative consequences to the common team problem of different views about hierarchy include:
   1. Frustration, conflict, and inability to be effective
   2. Anger and lost credibility
   3. Miscommunication
   4. Mistrust, uncertainty, and conflict
7. Adaptation involves modifying the attitudes, processes, and practices found in a team without disturbing the makeup of the members or altering the assignment being tackled. The major advantage of this approach is:
   1. It is quickly accomplished
   2. It does not require savvy team members who are highly motivated
   3. It is something that the team can do on its own in many cases
   4. It is easy to do
8. Which of the following are approaches that can be used for solving problems in multicultural teams?
   1. Adaptation and management intervention
   2. Structural and management intervention
   3. Exit, adaptation, and management intervention
   4. Adaptation, exit, structural, and management intervention
9. Structural intervention with multicultural teams is recommended in which of the following circumstances?
   1. There are logical ways to subdivide the team’s work
   2. There are no cliques on the team
   3. Tension does not already exist
   4. The team is too small to break into smaller subgroups
10. Which of the following statements accurately describes the phenomenon known as “social loafing”?
    1. Social loafing is just an American phenomenon
    2. The type of group seems to impact when social loafing occurs, particularly among collectivists
    3. Managers must be careful when introducing group-based incentives with teams in both collective and individualistic cultures to avoid social loafing
    4. The type of group does not seem to impact when social loafing occurs, particularly among collectivists
11. What must executives from headquarters do to have fair processes for creating international strategy?
    1. Make significant efforts to familiarize themselves with foreign operations
    2. Ensure two-way communication while strategy is being developed
    3. Be consistent across foreign subsidiaries in making decisions
    4. All of the above
12. What are the typical stages in international development?
    1. Export, Sales Subsidiary, International Division, and Multinational
    2. Global, Transnational, Export, and Sales Subsidiary
    3. Export, Sales Subsidiary, International Division, Multinational, Global or Transnational, Alliances, Partners, and Consortia
    4. Alliances and Consortia, Export, Sales Subsidiary, International Division, and Multinational
13. Which of the following issues management needs to consider when thinking about an international partnership is correctly matched with its description?
    1. Issue: How to best structure a partnership; Description: Select partners that maximize benefits and minimize risks
    2. Issue: Recognize partnership limits; Description: Partnerships can have organizational constraints, lead to strategic gridlock, and create dependence
    3. Issue: Whether a partnership makes sense in the first place; Description: Create a structure that provides incentives for success (contract or equity based)
    4. Issue: Deciding which international firm to partner with; Description: Identifying when, where, and why to form partnerships
14. Multinational partnerships can end for many reasons. Which of the following is most likely to have cultural roots?
    1. Partnering firms run into financial trouble
    2. Firms find better partners that will bring in more business and greater revenue
    3. Managers of the partnering firms are unable to bridge their differences about how to run the partnership and how to interact with each other
    4. Management decides to pursue new strategic directions
15. Which of the following accurately describes a joint venture?
    1. They are set up as a single legal entity
    2. They are always set up to be split equally
    3. They are partnerships in which one company owns the other
    4. They are partnerships involving shared ownership
16. The sequence of steps for creating a joint venture is listed in the correct order in which of the following?
    1. Evaluate the rationale, choose the best partner, negotiate terms, and implement the joint venture
    2. Evaluate the rationale, negotiate terms, choose the best partner, and implement the joint venture
    3. Negotiate terms, evaluate the rationale, choose the best partner, and implement the joint venture
    4. Negotiate terms, choose the best partner, evaluate the rationale, and implement the joint venture
17. How do the alliance types such as production, R&D, financial, and marketing differ from joint ventures?
    1. More formal
    2. Narrower in scope
    3. Make market entry more difficult
    4. Likely legally independent of partnering firms
18. The specific areas in which culturally driven barriers can hinder multicultural teams are:
    1. Conflicting decision-making norms, different views about hierarchy, and explicit versus implicit communication styles
    2. Explicit versus implicit communication styles and language fluency problems
    3. Common decision-making norms, common views about hierarchy, and explicit versus implicit communication styles
    4. Explicit versus implicit communication styles, language fluency problems, and different views about hierarchy and conflicting decision-making norms

True or False Questions

1. Almost all organizations have work teams that manufacture products on an ongoing basis and work teams that shape work rules and set strategic direction.
2. Group goals tend to be more important than individual goals in individualistic societies.
3. An example of a multinational partnership ending for culturally based reasons would be when managers of the partnering firms are unable to bridge their differences about how to run the partnership and how to interact with each other.
4. Cultural differences can dramatically complicate the effectiveness of multicultural teams and often result in less creative problem solving.
5. The typical sequence of stages companies go through in international development is Export, Sales Subsidiary, International Division, and finally Multinational.
6. Multinational partnerships may end because the partnering firms run into financial trouble or the firms find better partners that will bring in more business and greater revenue.
7. Collectivistic Japanese and Koreans on multicultural teams tend to be willing to spend more time making decisions to solicit input from all team members, thereby preserving solidarity and cohesiveness.
8. Structural intervention with multicultural teams is recommended when there are logical ways to subdivide the team’s work.
9. On a multicultural team, a Korean team member’s deference toward higher status members may be interpreted by Australians on the team as signaling decisiveness and competence.
10. Adaptation involves modifying the attitudes, processes, and practices found in a team without disturbing the makeup of the members or altering the assignment being tackled.
11. Explicit versus implicit communication styles, language fluency problems, and different views about hierarchy are all ways in which culturally driven barriers can hinder multicultural teams.
12. A joint venture is a partnership involving shared ownership that is not set up as a single legal entity.
13. Production, research and development, financial, and marketing alliances differ from joint ventures in that they are more formal and make market entry more difficult.
14. When thinking about an international partnership, management needs to consider whether a partnership makes sense in the first place by identifying when, where, and why to form a partnership.
15. The sequence of steps for creating a joint venture are to choose the best partner, evaluate the rationale, negotiate terms, and then implement and manage the joint venture.

Short-Answer Questions

1. What are the four specific areas in which culturally driven barriers can hinder multicultural teams?
2. List three typical negative consequences for the common team problem of multicultural teams with different views about hierarchy.
3. Describe the differences between how multicultural team members from individualistic and collectivistic cultures perceive group goals.
4. List two typical types of teams found in most organizations and the primary purpose of each.
5. Explain the difference between explicit communication styles for team members from low-context cultures and implicit communication styles for team members from high-context cultures.
6. Explain the difference between the management approach of adaptation and structural intervention. When might be the best situation to use each?
7. Explain the difference between the management approach of management intervention and exit. When might be the best situation to use each?
8. Define “social loafing” and explain the importance of research into this phenomenon for international managers.
9. List all of the typical stages in international development in order and briefly describe any three of the stages.
10. What are the common acquisition challenges for multinational partners and how do they compare to joint venture challenges?

Essay Questions

1. Identify two of the four common problems managers face when working with multicultural teams and discuss the typical negative consequences for each problem, a possible management approach for each, and when best to use the approach identified.
2. Discuss the different stages that companies may pass through as they develop internationally. Provide at least three examples of firms that have progressed through all the stages.
3. Describe two different types of international alliances that may exist between firms and discuss major management and cultural headaches associated with each type.