Groups & Teams Overview
Decision-making and problem-solving are more dynamic and thrive in a diverse team environment. Diverse perspectives enhance the understanding of the problem and the quality of the solution. Yet, working in diverse teams can be challenging, given different identities, cultures, beliefs, and experiences. In this chapter, we will discuss the effects of team diversity on group decision-making and problem-solving, identify best practices and challenges for working in and with multicultural teams, and dig deeper into divergent cultural characteristics that teams may need to navigate.
Does Team Diversity Enhance Decision Making and Problem-Solving?
In the Harvard Business Review article “Why Diverse Teams are Smarter,” David Rock and Heidi Grant (2016) write that increasing workplace diversity is a good business decision. A 2015 McKinsey report on 366 public companies found that those in the top quartile for ethnic and racial diversity in management were 35% more likely to have financial returns above their industry mean, and those in the top quartile for gender diversity were 15% more likely to have returns above the industry mean. Similarly, in a global analysis conducted by Credit Suisse, organizations with at least one female board member yielded a higher return on equity and higher net income growth than those without women on the board.
Additional research on diversity has shown that diverse teams are better at decision-making and problem-solving because they tend to focus more on facts, per the Rock and Grant article. A study published in the Journal of Personality and Social Psychology showed that people from diverse backgrounds “might alter the behavior of a group’s social majority in ways that lead to improved and more accurate group thinking.” In the study, the diverse panels raised more facts related to the case than the homogeneous panels and made fewer factual errors while discussing available evidence. Another study in the article showed that diverse teams are “more likely to reexamine facts and remain objective constantly. They may also encourage greater scrutiny of each member’s actions, keeping their joint cognitive resources sharp and vigilant. By breaking up workforce homogeneity, you can allow your employees to become more aware of their own potential biases—entrenched ways of thinking that can otherwise blind them to key information and even lead them to make errors in decision-making processes.” In other words, the team is susceptible to groupthink when people are among homogeneous and like-minded (non-diverse) teammates. It may be reticent to think about opposing viewpoints since all team members are in alignment. In a more diverse team with various backgrounds and experiences, opposing viewpoints are more likely to emerge, and the team members feel obligated to research and address the questions raised. Again, this enables a richer discussion, more in-depth fact-finding, and exploration of opposing ideas and viewpoints to solve problems.
Diversity in teams also leads to more significant innovation. A Boston Consulting Group (BCG) article entitled “The Mix That Matters: Innovation through Diversity” explains a study in which they sought to understand the relationship between diversity in managers (all management levels) and innovation (Lorenzo et al., 2017). The key findings of this study show that:
- The positive relationship between management diversity and innovation is statistically significant—and thus, companies with higher levels of diversity derive more revenue from new products and services.
- The innovation boost isn’t limited to a single type of diversity. The presence of managers who are either female or are from other countries, industries, or companies can cause an increase in innovation.
- Management diversity seems to have a particularly positive effect on innovation at complex companies with multiple product lines or that operate in multiple industry segments.
- To reach its potential, gender diversity needs to go beyond tokenism. In the study, innovation performance only increased significantly when the workforce included more than 20% of women in management positions. A high percentage of female employees doesn’t increase innovation when only a few women are managers.
- At companies with diverse management teams, openness to contributions from lower-level workers and an environment where employees feel free to speak their minds are crucial to fostering innovation.
When you consider the impact that diverse teams have on decision-making and problem-solving—through the discussion and incorporation of new perspectives, ideas, and data—it is no wonder that the BCG study shows more significant innovation. Team leaders must reflect upon these findings during the early stages of team selection to reap the benefits of having diverse voices and backgrounds.
Challenges and Best Practices for Working with Multicultural Teams
Over the last decades, globalization has increased and workplaces have felt the impact of working within multicultural teams. There are some key recommended practices that for those leading multicultural teams so that they can parlay the diversity into an advantage and not be derailed by it.
People may assume that communication is the primary element derailing multicultural teams, as participants may have different languages and communication styles. In the Harvard Business Review article “Managing Multicultural Teams,” Brett et al. (2006) outline four vital cultural differences that can cause destructive conflicts in a team.
- Direct versus indirect communication is also known as high-context vs. low-context communication. Some cultures are very direct and explicit in their communication, while others are more indirect and ask questions rather than pointing out our problems. This difference can cause conflict because, at the extreme, some may consider the direct style offensive. In contrast, the indirect style may be perceived as unproductive and passive-aggressive in team interactions.
- Multicultural teams may face trouble with accents and fluency. When team members don’t speak the same language, there may be one language that dominates the group interaction—and those who don’t speak it may feel left out. The primary language speakers may feel that those members don’t contribute as much or are less competent.
- Differing attitudes toward hierarchy. Some cultures respect the hierarchy and treat team members based on that hierarchy. Other cultures are more egalitarian and don’t observe hierarchical differences to the same degree. This may lead to clashes if some people feel they are being disrespected and not treated according to their status.
- Conflicting decision-making norms. Different cultures make decisions differently; some will apply much analysis and preparation beforehand. Those cultures that make decisions more quickly (and need just enough information to make a decision) may be frustrated with the slow response and relatively longer thought process.
These cultural differences are good examples of how everyday team activities (decision-making, communication, interaction among team members) may become points of contention for a multicultural team if there isn’t adequate understanding of everyone’s culture. The authors propose several potential interventions to try if these conflicts arise.
- A straightforward intervention is an adaptation, which is working with or around differences. This is best used when team members are willing to acknowledge the cultural differences and learn how to work with them.
- Structural intervention, or reorganizing to reduce friction on the team. This technique is best used if unproductive subgroups or cliques within the team need to be moved around.
- Managerial intervention is the technique of making decisions by management without team involvement. This technique should be used sparingly, as it shows that the team needs guidance and can’t move forward without management involved.
- Finally, exit is an intervention of last resort and is the voluntary or involuntary removal of a team member. If the differences and challenges have proven so great that an individual on the team can no longer work with the team productively, then removing the team member in question may be necessary.
Developing Cultural Intelligence
Some people seem to be innately aware of and able to work with cultural differences in teams and their organizations. These individuals might be said to have cultural intelligence. Cultural intelligence is a competency and skill that enables individuals to function effectively in cross-cultural environments. It develops as people become more aware of the influence of culture and more capable of adapting their behavior to the norms of other cultures. In the IESE Insight article entitled “Cultural Competence: Why It Matters and How You Can Acquire It,” Lee and Liao (2015) assert that “multicultural leaders may relate better to team members from different cultures and resolve conflicts more easily. Their multiple talents can also be used in international negotiations.” Multicultural leaders don’t have a lot of “baggage” from any one culture and are sometimes perceived as being culturally neutral. They are very good at handling diversity, which gives them a significant advantage in their relationships with teammates.
In order to help people become better team members in an increasingly multicultural world, the authors recommend a few best practices for honing cross-cultural skills. The first is to “broaden your mind”—expand your cultural channels (travel, movies, books) and surround yourself with people from other cultures. This helps raise your awareness of the cultural differences and norms you may encounter. Another best practice is ” developing your cross-cultural skills through practice” and experiential learning. You may have the opportunity to work or travel abroad—but if you don’t, getting to know some of your company’s cross-cultural colleagues or foreign visitors will help you practice your skills. Serving on a cross-cultural project team and getting to know and bond with your global colleagues is an excellent way to develop skills.
Once you have a sense of the different cultures and have started to work towards developing your cross-cultural skills, another good practice is to “boost your cultural metacognition” and monitor your behavior in multicultural situations. When you are in a situation in which you are interacting with multicultural individuals, you should test yourself and be aware of how you act and feel. Observe both your positive and negative interactions with people and learn from them. Developing “cognitive complexity” is the final best practice for boosting multicultural skills. This is the most advanced, requiring viewing situations from multiple cultural frameworks. To see things from another perspective, you must have a strong sense of emotional intelligence, empathy, and sympathy and be willing to communicate honestly.
In the Harvard Business Review article “Cultural Intelligence,” Earley and Mosakowski (2004) describe three sources of cultural intelligence that teams should consider if they are serious about becoming more adept in their cross-cultural skills and understanding. These sources, very simply, are head, body, and heart. One first learns about foreign cultures’ beliefs, customs, and taboos via the head. Training programs are based on providing this type of overview information—which is helpful but isn’t experiential. This is the cognitive component of cultural intelligence. The second source, the body, involves more commitment and experimentation with the new culture. This physical component (demeanor, eye contact, posture, accent) shows a deeper understanding of the new culture and its physical manifestations. The final source, the heart, deals with a person’s confidence in their ability to adapt to and deal well with cultures outside of their own. The heart speaks to one’s emotional commitment and motivation to understand the new culture.
The authors have created a quick assessment to diagnose cultural intelligence based on these cognitive, physical, and emotional/motivational measures (i.e., head, body, heart). Please refer to the table below for a short diagnostic to assess your cultural intelligence.
Assessing Your Cultural Intelligence |
|
|---|---|
| Generally, scoring below 3 in any of the three measures signals an area requiring improvement. Averaging over four displays strength in cultural intelligence. | |
| Adapted from “Cultural Intelligence,” Earley and Mosakowski, Harvard Business Review, October 2004 (Credit: OpenStax/CC BY-NC-SA 4.0) |
|
| Give your responses using a 1 to 5 scale where one means that you strongly disagree and five means that you strongly agree with the statement. | |
| Before interacting with people from a new culture, I wonder what I hope to achieve. | |
| If I encounter something unexpected while working in a new culture, I use that experience to build new ways to approach other cultures in the future. | |
| I plan on how I will relate to people from different cultures before meeting with them. | |
| When I enter a new cultural situation, I can immediately sense whether things are going well or wrong. | |
| Add your total from the four questions above. | |
| Divide the total by 4. This is your Cognitive Cultural Quotient. | |
| I quickly change my body language (posture or facial expression) to suit people from different cultures. | |
| I can alter my expressions when a cultural encounter requires it. | |
| I can modify my speech style by changing the accent or pitch of my voice to suit people from different cultures. | |
| I can easily change how I act when a cross-cultural encounter requires it. | |
| Add your total from the four questions above. | |
| Divide the total by 4. This is your Cognitive Physical Quotient. | |
| I have confidence in my ability to deal well with people from different cultures than mine. | |
| I am sure that I can befriend people of different cultural backgrounds than mine. | |
| I can adapt to the lifestyle of a different culture with relative ease. | |
| I am confident in dealing with an unfamiliar cultural situation or encounter. | |
| Add your total from the four questions above. | |
| Divide the total by 4. This is your Emotional/Motivational Cognitive Quotient. |
Cultural intelligence is an extension of emotional intelligence. An individual must be aware and understand the new culture to adapt to the style, pace, language, nonverbal communication, etc., and work together successfully with the new culture. A multicultural team can only succeed if its members take the time to understand each other and ensure everyone feels included. Multiculturalism and cultural intelligence are increasingly essential traits in the business world today. By following best practices and avoiding the challenges and pitfalls that derail a multicultural team, a team can find great success and personal fulfillment beyond the boundaries of the project or work engagement.
Digging in Deeper: Divergent Cultural Dimensions
Let’s dig in deeper by examining several points of divergence across cultures and consider how these dimensions might play out in organizations and in groups or teams.
Low-Power versus High-Power Distance
How comfortable are you with critiquing your boss’s decisions? If you are from a low-power distance culture, your answer might be “No problem.” In low-power distance cultures, according to Dutch researcher Geert Hofstede, people relate to one another more as equals and less as a reflection of dominant or subordinate roles, regardless of their formal roles as employees and managers.
In a high-power distance culture, you would probably be less likely to challenge the decision, provide an alternative, or give input. Suppose you work with people from a high-power distance culture. In that case, you may need extra care to elicit feedback and involve them in the discussion because their cultural framework may preclude their participation. They may have learned that less powerful people must accept decisions without comment, even if they have a concern or know there is a significant problem. You may lose valuable information if you are sensitive to cultural orientation and power distance.
Individualistic versus Collectivist Cultures
People in individualistic cultures value individual freedom and personal independence, and cultures consistently have stories to reflect their values. You may recall the story of Superman or John McLean in the Diehard series and note how one person overcomes all obstacles. Through personal ingenuity, despite challenges, one person rises successfully to conquer or vanquish those obstacles. Sometimes there is an assist, as in basketball or football, where another person lends a hand, but still, the story repeats itself repeatedly, reflecting the cultural viewpoint.
When Hofstede explored the concepts of individualism and collectivism across diverse cultures (Hofstede, 1982, 2001, 2005), he found that in individualistic cultures like the United States, people perceived their world primarily from their viewpoint. They perceived themselves as empowered individuals, capable of making their own decisions and impacting their own lives.
Cultural viewpoint is not an either/or dichotomy but rather a continuum or range. You may belong to some communities that express individualistic cultural values. In contrast, others focus on a collective viewpoint. Collectivist cultures (Hofstede, 1982), including many in Asia and South America, focus on the needs of the nation, community, family, or group of workers. Ownership and private property is one way to examine this difference. In some cultures, the property is almost exclusively private, while others tend toward community ownership. The collectively owned resource returns benefit to the community. Water, for example, has long been viewed as a community resource, much like air. However, that has changed as businesses and organizations have purchased water rights and gained control over resources. Public lands, such as parks, are often considered public, and individual exploitation is restricted. Copper, a metal with various industrial applications, is collectively owned in Chile, with profits deposited in the general government fund. While public and private initiatives exist, the cultural viewpoint is our topic. How does someone raised in a culture that emphasizes the community interact with someone raised in a primarily individualistic culture? How could tensions be expressed, and how might this point of divergence influence interactions?
Masculine versus Feminine Orientation
There was a time when many cultures and religions valued a female figurehead, and with the rise of Western cultures, we have observed a shift toward a masculine ideal. Each carries a set of cultural expectations and norms for gender behavior and gender roles across life, including business.
Hofstede describes the masculine-feminine dichotomy not in terms of whether men or women hold power in a given culture but rather the extent to which that culture values certain traits that may be considered masculine or feminine. Thus, “the assertive pole has been called ‘masculine’ and the modest, caring pole ‘feminine.’ The women in feminine countries have the same modest, caring values as the men; in the masculine countries, they are somewhat assertive and competitive, but not as much as the men, so these countries show a gap between men’s values and women’s values” (Hofstede, 2009).
We can observe this difference in where people gather, how they interact, and how they dress. We can see it during business negotiations, where it may make an important difference in the organizations’ success. Cultural expectations precede the interaction, so someone who doesn’t match those expectations may experience tension. Business in the United States has a masculine orientation—assertiveness and competition are highly valued. In other cultures like Sweden, business values are more attuned to modesty (lack of self-promotion) and taking care of society’s weaker members. This range of differences is one aspect of intercultural communication that requires significant attention when the business communicator enters a new environment.
Uncertainty-Accepting Cultures versus Uncertainty-Rejecting Cultures
When we meet each other for the first time, we often use what we have learned to understand our current context. We also do this to reduce our uncertainty. Some cultures, such as the United States and Britain, are highly tolerant of uncertainty, while others go to great lengths to reduce the element of surprise. Cultures in the Arab world, for example, are high in uncertainty avoidance; they tend to be resistant to change and reluctant to take risks. Whereas a U.S. business negotiator might enthusiastically agree to try a new procedure, the Egyptian counterpart would likely refuse to get involved until all the details are worked out.
Short-Term versus Long-Term Orientation
Do you want your reward right now, or can you dedicate yourself to a long-term goal? You may work in a culture whose people value immediate results and grow impatient when those results do not materialize. Geert Hofstede discusses this relationship of time orientation to culture as a “time horizon,” underscoring the individual’s perspective within a cultural context. Many countries in Asia, influenced by the teachings of Confucius, value a long-term orientation, whereas other countries, including the United States, have a more short-term approach to life and results. Native American cultures are known for holding a long-term orientation, as illustrated by the proverb attributed to the Iroquois that decisions require contemplation of their impact seven generations removed.
If you work within a culture with a short-term orientation, you may need to emphasize the reciprocation of greetings, gifts, and rewards. For example, your host will appreciate your promptness if you send a thank-you note the morning after being treated to a business dinner. While there may be respect for tradition, there is also an emphasis on personal representation and honor, a reflection of identity and integrity. A short-term-oriented culture also values Personal stability and consistency, contributing to an overall sense of predictability and familiarity.
Long-term orientation is often marked by persistence, thrift, frugality, and order to relationships based on age and status. A sense of shame for the family and community is also observed across generations. What an individual does reflects on the family and is carried by immediate and extended family members.
Time Orientation
Edward T. Hall and Mildred Reed Hall (1987) state that monochronic time-oriented cultures consider one thing at a time, whereas polychronic time-oriented cultures schedule many things at one time, and time is considered more fluid. In monochromatic times, interruptions are to be avoided, and everything has its specific time. Even the multitasker from a monochromatic culture will, for example, recognize the value of work first before play or personal time. The United States, Germany, and Switzerland are often noted as countries that value a monochromatic time orientation.
Polychromatic time looks a little more complicated, with business and family mixing with dinner and dancing. Greece, Italy, Chile, and Saudi Arabia are countries where one can observe this perception of time; business meetings may be scheduled at a fixed time, but when they begin may be another story. Also, note that the dinner invitation for 8 p.m. may be more like 9 p.m. If you were to show up on time, you might be the first person to arrive and find that the hosts are not quite ready to receive you.
When in doubt, always ask before the event; many people from polychromatic cultures will be used to foreigners’ tendency to be punctual, even compulsive, about respecting established event times. The skilled business communicator knows this difference and takes steps to anticipate it—the value of time in different cultures.
References
- Brett, J., Behfar, K., Kern, M. (2006, November). Managing multicultural teams. Harvard Business Review. https://hbr.org/2006/11/managing-multicultural-teams
- Dodd, C. (1998). Dynamics of intercultural communication (5th ed.). New York, NY: Harper & Row.
- Earley, P.C., & Mosakowski, E. (2004, October). Cultural intelligence. Harvard Business Review. https://hbr.org/2004/10/cultural-intelligence
- Hall, M. R., & Hall, E. T. (1987). Hidden differences: Doing business with the Japanese. New York, NY: Doubleday.
- Hofstede, G. (1982). Culture’s consequences (2nd ed.). Newbury Park, CA: Sage.
- Hofstede, G. (2001). Culture’s consequences: Comparing values, behaviors, institutions, and organizations across nations (2nd ed.). Thousand Oaks, CA: Sage.
- Hofstede, G. (2005). Cultures and organizations: Software of the mind (2nd ed.). New York, NY: McGraw-Hill.
- Lee, Y-T., & Liao, Y. (2015). Cultural competence: Why it matters and how you can acquire it. IESE Insight. https://www.ieseinsight.com/doc.aspx?id=1733&ar=20
- Lorenzo, R., Yoigt, N., Schetelig, K., Zawadzki, A., Welpe, I., & Brosi, P. (2017). The mix that matters: Innovation through diversity. Boston Consulting Group. https://www.bcg.com/publications/2017/people-organization-leadership-talent-innovation-through-diversity-mix-that-matters.aspx
- Rock, D., & Grant, H. (2016, November 4). Why diverse teams are smarter. Harvard Business Review. https://hbr.org/2016/11/why-diverse-teams-are-smarter
Author & Attribution
This remix comes from Dr. Jasmine Linabary at Emporia State University. This chapter is also available in her Small Group Communication: Forming and Sustaining Teams book.
The sections “How Does Team Diversity Enhance Decision Making and Problem-Solving?” and “Challenges and Best Practices for Working with Multicultural Teams” are adapted from Black, J.S., & Bright, D.S. (2019). Organizational behavior. OpenStax. https://openstax.org/books/organizational-behavior/. Access the full chapter for free here. The content is available under a Creative Commons Attribution License 4.0 license.
The section “Digging in Deeper: Divergent Cultural Dimensions” is adapted from “Divergent Cultural Characteristics” in Business Communication for Success from the University of Minnesota. The book was adapted from a work produced and distributed under a Creative Commons license (CC BY-NC-SA) by a publisher who has requested that they and the original author not receive attribution. This work is made available under a Creative Commons Attribution-NonCommercial-ShareAlike license.