Effect of Culture on Team Performance and Project Success - Thesis Example

Chapter Introduction 0 Background of the Study Project implementation is a complex and dynamic process involving series of decision-making, monitoring, plane changes, planning, and continuous communication among all those involve in the execution of the project (Al-Mashwari et al. 2003;Nah and Delgado 2006). For the realization of projects substantial funds, human resources, scarce physical resources, and other sources that are crucial in the completion of the project are utilized(Nwachukwo, Ibeawuchi, and Okolo 2010). As such, execution of the project brings with it hope and success that redounds to financial stability of the company. Schwalbe (2004) claims that almost nearly $ 10 trillion of the world’s total domestic budget are allotted to various projects. These factors highlight the significant role of projects in global economy. On the other hand, the reality of project failure is constantly in the offing, thus making it as one of the primary risks projects have to contend. The risk of failure in projects is crucial in all companies, but it is doubly critical in projects carried out in developing countries. Since, projects undertaken in developing countries do not only deal with socio-political, economic, and environmental concerns, but it directly affects human development, poverty reduction, and social transformation (Crawford and Bryce 2003; Diallo and Thullier 2004, 2005; Khang and Moe 2008). As such, the demand for the success of projects in developing countries does not only signify financial stability, but it also stands for an improved quality of life. In effect, developing countries stand to benefit from the successful execution of projects undertaken in their respective countries but concerns pertaining to delays in timely delivery, non-adherence to budget, scope, and quality are encountered as cultural differences in the management of the project become one of the barriers. Thus, hindering a successful execution of the project. Culture has been widely studied, but scholars continue to disagree pertinent its universal definition. Nonetheless, there is an agreement that culture is a collective phenomenon that is learned and not inherent among human beings. It affords a way of understanding and interpreting the phenomenological world (Hofstede, Hofstede, and Minkov 2010). Recognising the increasing importance of culture in the era of globalization, Herberg and Kramer (1992) conducted a study regarding cultural effects in the factors affecting the conduct of business. They have observed that every country establishes its own approach and way of doing business based on its history, politics, and culture. For instance, Americans come to negotiation panel without any made decisions and that they are more than willing to strike the balance in the negotiation table (Herberg and Kramer 1992). On the other hand, the Chinese comes to the negotiation table with decision already made and an increased probability of the decision being unaltered (Herberg and Kramer 1992). In this example, it can be inferred that negotiation technique, which is crucial in business and projects, may vary from one country to another as each country has its own distinct approach to business resulting from its culture, history, and politics (Herberg and Kramer 1992). This difference is also observable in decision-making, communication, leadership, trust, relationships, and time (Herberg and Kramer 1992) In this regard, it can be impugned that the impact of national culture to projects in particular and to business environment in general influence the success or failure of project execution. This becomes more poignant in globalization wherein economic boundaries existing among countries are reduced or even removed paving for multinational and transnational companies (Balakrishnan 2003; Stiglitz 2009). As such, the influence national culture in corporate culture, communication, knowledge management, cooperation, decision-making, and values becomes more apparent (Carton 2003; Hofstede 1996; Hooker 2008). Hofstede et al (2010) assert, “The basic values of a multinational business organization are determined by the nationality and personality of its founder(s) and later significant leaders. Multinationals with a dominant home culture have a clearer set of basic values and therefore are easier to run than international organizations that lack such a common frame of reference. In multinational business organizations the values and beliefs of the home culture are taken for granted and serve as a frame of reference” (p. 402). From this perspective, understanding the impact of national/societal culture as pivotal in project execution may shed light on its effect and influence to the success or failure of project execution. As such, this research holds that project management in developing countries should take a closer look on the impact of culture in project implementation undertaken since it is one of the determinative factors influencing success, failure, or abandonment of projects in developing countries. 1.1. Research Questions Recognizing the significant contributions of projects in uplifting the quality of life of people in developing countries, the primary question the research intends to address is the question “does culture play a significant role in the success, failure, or abandonment of projects in developing countries?” In order to clarify further this question, the research will also be answering the following sub-questions. 1. What is culture? 2. What are the factors contributing to the increasing role of culture in project implementation? 3. How does culture influence project implementation in developing countries? 4. How does project management address cultural issues in developing countries? These research questions provide the focus and limitation of the study. In this sense, it establishes the framework that directs the research. In this regard, through the questions the goal of the research becomes clear, and that is, to be able to get a clearer perspective of the connection of culture to project implementation in developing countries. Hypothesis 1: Cultural issues are some of the major causes of project failure in developing countries. Hypothesis 2: Culturally diverse teams out perform non-diverse teams. Hypothesis 3: Cultural inclination affects individual’s performance during the project implementation process. Hypothesis 4: Project owners/sponsors are more responsible for project failure than project managers. Hypothesis 5: Issue of corruption is not significant and not a major cause of abandoned projects. 1.2. Aims of the Research The research aims to know and apprehend the connection and relation between culture and project implementation in developing countries. As such, the study endeavors to attain a clearer perspective of culture within the context of developing countries and project management. This aim is significant as there various ways of approaching the concept of culture and by specifically looking at it from the field of project management in the context of developing countries. Likewise, the research seeks to identify the factors contributing to the increased role of culture in project execution. This is pivotal, as it will aid in understanding how and why culture is now deemed as critical in project and project management, especially in developing countries. Finally, this research intends to explore the connection between culture and project management in lieu of project execution (or non-execution in terms of abandonment) in developing countries. This aims seeks to delve deeper and as such, establish the parameter in which the relation between culture and project management in developing countries may be better understood. 1.3. Significance of the Study It is important to note organizations, people in organizations, and theories pertinent to project management and culture varies. However, the intertwined connection among culture, people, and society is undeniable. From this perspective, this study is significant because it aids in clarifying the connection between culture and project management in developing countries. This can assists in attaining better understanding of projects undertaken in developing countries. As Hofstede (2005) claims, “Shared perceptions of daily practices should be considered the core of an organization’s culture. Employees’ values differed more according to their gender, age, and education (and, of course, their nationality) than according to their membership in the organization, per se. . . . The values of founders and key leaders undoubtedly shape organizational cultures, but the way these cultures affect ordinary members is through shared practices” (p. 286). Moreover, majority of management studies center on the United States, Europe, and some Asian countries and yet, there is a universal assumption of the findings and its applications (Adler 1991; Blunt and Jones 1992; Harvey 1997). In this sense, this research may add to the minimal literatures dealing with project management in Africa in particular and developing countries in general. 1.4. Definition of Terms The following terms used in this study will be understood and used after the given working definition. Culture - is the ‘collective programming of the mind which distinguishes the members of one category of people from another’; and is composed of many elements which may be classified into four categories: symbols, heroes, rituals, and values” (Hofstede 1994 p. 12). Management - “Management is getting things done through other people” (Hofstede 1994, p. 12). National Culture - is a “phenomenon that one learns early in life through the social cultural environments of family, neighborhoods, generations, social class, religion, gender, and school. This nationalistic culture determines the identity of a human group through symbols, heroes, rituals, and values the same way as personality determines the identity of an individual. National culture is rooted in values and organizational culture is derived from practices” (Borkovich 2012, p 325). 1.5. Structure of the Dissertation The research will be divided into five chapters. Chapter 1 is the introduction wherein the background of the study, the research questions, aims of the research, significance of the study, definition of terms and the structure of the dissertation. This chapter serves as the guide as to what can be expected from the entire dissertation. Chapter 2 is the literature review. It will deal with the conceptual analysis of the important concepts crucial in clarifying the issues of the research. The discussion and elucidation in this chapter are drawn from existing scholarly works pertinent to the topic of the research. Meanwhile, Chapter 3 deals with the research methodology adopted in the conduct of the study. In this chapter, the justification and rationale behind the choice of methodology will be provided. Chapter 4 is the findings and discussion chapter. This will zero-in on the gathered data and its analysis. Finally, Chapter 5 is the conclusion and recommendation chapter. It is the final chapter of the dissertation. Figure 1 Structure of Dissertation In the following chapter, the literature review will be given. Chapter 2 Literature Review 2.0 Introduction Globalization and rapid developments in computer and information technology have created a smaller world, a flat world not only in the global business environment, but also in the interactions between culture and identity among and between nations (Bhagwati 2004; Bhawuk 2009; Coates 2004; Suarez-Orozco and Qin-Hilliard 2004). This establishes bridges that allows for the encounter of different cultures and values, “It has made isolated places and impoverished people eager for modernity’s allurements. Almost everyone everywhere wants all the things they have heard about, seen, or experienced via the new technologies” (Levitt, 1983, p. 92). This reality enriches the human condition, but at the same time, it highlights the truism of differences and pluralism as common attribute of the modern world. It is, at the same time, a source of conflict “as more organizations are crossing national borders, differences in nationality are increasingly a source of conflicts and contradictions. . . . Discussion positions can be [easily] predicted from the actors’ nationalities. . . . Many of them will be related to the unconsciously different paradigms in our minds which we have all inherited because of the country in which we are born and raised” (Hofstede 1996, p.535). Thus, the actuality of social transformation has becomes more apparent than ever before (Thomas 1998). The encounters between values redefine interactions and restructure frames of reference. In this condition, projects in developing countries spearheaded by managers from developed countries become a critical incident (Thomas 1988) wherein cultural standards meet and clash. This scenario openly presents the dilemma highlighted by the problem of the research – cultural differences existing among members in the project may have an impact in the outcome or execution of the project. In order to clarify this supposition, the literature review will tackle three important concepts and these are culture, project management, and the connection between culture and project management in developing countries. This is significant, as it will try to clarify the concepts individually and in relation with one another in the context of project in developing countries. The literature review will be divided into six (6) sections. The first section is the introduction wherein the aim and topics to be discussed in the literature review is given. The structure of the chapter is also provided in this section. The second section deals with the concept of culture. This is essential as there are many connotations attached to the concept and the conceptual clarification will assist not only in clarifying the notion, but also, in limiting its definition. The third section will deal with the notion of project and project management. This section is necessary, as it will provide the parameters wherein the notion of project and project management are understood. The fourth section will focus on the factors that contribute on the more pronounced relationship among culture, projects, and project management. Meanwhile, the fifth segment will deal with the influence of culture to project execution and the last part of the chapter will focus on the observed gaps in the literature. At the end of the chapter, a summary of the discussion will be given to wrap up the discourse. 2.1. Culture: A Brief Exploration Culture permeates all human interaction (Hofsted and Hofstede 2005). This is a truism long acknowledge as part of the human condition by scholars from varying fields (e.g. Geertz, 1992; Gladwell 2008;Hall 1989; Hofstede 1994, 1996;Hofstede et al 2010; Trompeenars 1994; Trompeenars and Hampden-Turner 2010). Hofstede (1996) claims, Organizations are to some extent culture-bound . . . organization theories are also culture bound. . . .Yet the influence of the nationality of the author is extremely evident. . . . Give me a new theory and I will tell you the nationality of its author. If you think of it, how could nationality not be reflected in organization theories? . . . How could their ideas have escaped the national influence? . . . Culture is at the root of institutional arrangements . . . the thinking of theorists is affected by the kind of family they grew up in, the kind of school they went to, the kind of authorities and legal system they are accustomed to. The causality between institutions and culture is circular; they cannot be separated. (p. 531) In other words, culture is like a “software of the mind… collective phenomenon, because it is at least partly shared with people who live or lived within the same social environment which is where it was learned” (Hofstede et al 2010, p. 5-6). However, what is culture? This section will attempt to look into the notion of culture. The discourse will be drawn from the work of Hofstede and Trompeenars. This ceiling is set to limit the discussion and make it manageable. Since, discourse pertaining to culture is wide in scope and extensive in range. Hofstede and Tompenaars’ works have been selected because their works have directly tackled culture, business environment, and organization. As such, their works are significant as the relationship between culture and project management is clarified and ascertained. 2.1.1. Culture: Hofstede’s Discourse The generic conception of culture is that it I s attributed to symbols, meanings, values, sayings, language, views, and shared practices (Brokovich 2012). In effect, culture is the lens in which worldviews and phenomenological approach in understanding and knowing the world is attained. It is the frame in which frame in which phenomenon are given sense and meanings (Hall 1989), thus, it is something that people have and yet it is something that happens when it is encountered (Agar 1994). Hofstede’s contribution to the discourse on culture is monumental as he strongly asserts the direct correlation between culture and management. Hofstede (1994) claims that culture is the “collective programming of the mind which distinguishes the members of one category of people from another’; and is composed of many elements which may be classified into four categories: symbols, heroes, rituals, and values” (Hofstede 1994 p. 12), while, management is “getting things done through people (Hofstede 1994, p 12). As such, understanding the background, the frames of reference of employees and team members will allow managers to predict present and future behaviors of the team (Hofstede 1994). Hence, understanding the relationship among culture, employees, management, and organization proffers a unique measure of ensuring quality performance, since; it recognizes that culture “controls behavior in deep and persisting ways” (Hall 1990, p. 25). Hi! This is the first part of the draft. I will be sending the second part on Tuesday. I will still edit this. Thank you! Regards. Writer Read More