HR challenge: Aligning technology best practices to global management strategy
In the last 20 years, new communication technology, such as email, mobile phones and web and videoconferencing has not only facilitated closer contact with clients in distant lands, it has allowed multinational companies to form cross-border teams, where colleagues can communicate with each other constantly, despite not being located in the same place. In short, technology has enabled the international expansion that companies seek.
Saving on business travel and relocation costs for individual workers have been other major benefits. Virtual teams also significantly enlarge the pool of available knowledge. Individual team members can offer extensive experience with different markets and an understanding of geographically disparate customer demands and sensitivities. An overwhelming majority (83 percent) of executives in a 2014 Economist Intelligence Unit report agreed that a diverse workforce improves their company’s ability to capture and retain a diverse client base.82
Culturally diverse virtual teams also stimulate innovation and creativity. Groupthink—decision-making within a group, characterized by uncritical conformity—is more likely within a team composed of people from the same background.
Technology’s evolving role in redefining what work means will require firms to come up with new and innovative strategies to manage their increasingly mobile workforce. These strategies will need to help mobile workers remain engaged and connected to the wider organization they serve. An improved ICT infrastructure and increased usage in developing nations will certainly continue to expand the availability of local talent for recruiters and HR managers. However, challenges will persist, as many potential labor-market participants will lack access or adequate technological literacy. HR departments within major global firms will need to engage with local governments, universities, community colleges and vocational schools to offer ongoing training for all existing and new employees as technologies change.
With companies now engaging with a flexible and mobile workforce, performance measures will have to be revamped. Once managers prioritize outcomes, and not just productivity or process, new evaluation models will be necessary. HR will also need to assess the most effective methods for managing and communicating with teleworkers, particularly across borders.
HR challenge: Managing the risks of a global operation
Despite their clear benefits and growing importance, managing remote, cross-border teams presents management challenges that the corporate world is still learning to tackle. A 2009 Economist Intelligence Unit executive survey reported that one-third of virtual teams are thought to be badly managed.83
There are some obvious practical obstacles in running a virtual team. For example, all the members must feel comfortable using all the various communication technologies. Time differences can also complicate organization and co-ordination.
Human interaction may be less smooth without face-to-face communication. Natural social bonds are more difficult to develop when people only meet virtually. This makes building an environment of trust and cooperation more problematic, resulting in regular misunderstandings. When disagreements do arise, the less frequent contact makes them harder to resolve.