expression and self-fulfillment of their members• Participants confirm, criticize, develop, and find resources for, or to help complete, the development of an innovation• Typical in start-ups• Creates an environment where participants thrive on an intense, emotional commitmentto the nature of work• Changes are fast and spontaneous• Motivation remains highly intrinsic and intense• Leadership is achieved and not gained by positionMulticulturalism and Diversity – Adler’s 4 Phases• The success of a MNE is determined by its ability to manage multiculturalism and diversity which today are encountered domestically and internationally• American professor Nancy Adler suggests a 4 Phase “international evolution” which MNE’s go through in their development➢Phase I - Domestic corporations ➢Phase II - International corporations ➢Phase III - Multinational corporations ➢Phase IV - Global corporations➢Domestic firms: cultural diversity does not affect firm’s organizational culture nor its interaction with the outside (customer, etc.) only domestic multi- culturalism is in play➢International firms: exporting & producing abroad, use of home country management, diversity focus is from the inside outward➢Multinational firms: personnel from all over the world, less attention to the outside, focus on managing diversity inside the firm➢Global corporations: internal & external, everyone needs to develop cross- cultural skills to work effectively with employees, customers, suppliers, etc.
Homogeneous groups:members have similar backgrounds and generally perceive, interpret and evaluate events in similar ways Token groups:all members but one has the same background.Bicultural groups:two or more members represent each of two distinct cultures. Multicultural groups:composed of individuals form three or more different ethnic backgrounds. Potential Problems of Diversity• Erroneous perceptions caused by preconceived stereotypes• Inaccurate biases• Inaccurate communication or miscommunication• Result of using unclear words, manner in which situations are interpreted, and differences in perceptions of timeAdvantages of diversity • Enhances creativity, leads to better decisions, and results in more effective and productive performance• Helps generate more and better ideas• Prevents groupthink• Social conformity and pressures on individual members of a group to conform and reach consensus• Enhances relationships with customersMulticultural Group (Team) Effectiveness• Focus of attention must be determined by the stage of team development• Entry stage - Focus on building trust and developing team cohesion• Work stage - Focus is directed toward describing and analyzing the problem or taskthat has been assigned• Action stage - Focus shifts to decision making and implementationBuilding trust Swift trust/ passable trust Knowledge: direct knowledge/ reflected knowledge