Chapter Fifteen
International Projects
15–1
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15–2
Where We Are Now
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Project Management 6e.
15–2
Learning Objectives
Describe environmental factors that affect project management in different countries
Identify factors that typically are considered in selecting a foreign location for a project
Understand cross-cultural issues that impact working on international projects
Describe culture shock and strategies for coping with it
Understand how organizations select and prepare people to work on international projects
15–3
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Chapter Outline
15-1Environmental Factors
15-2Project Site Selection
15-3Cross-Cultural Considerations: A Closer Look
15-4Selection and Training for International
Projects
15–4
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15–5
International Projects
Issues in Managing International Projects
Environmental factors affecting projects
Global expansion considerations
Challenges of working in foreign cultures
Selection and training of overseas managers
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Project Management 6e.
15–5
15–6
International Assignments
Positives
Increased income
Increased responsibilities
Career opportunities
Foreign travel
New lifetime friends
Negatives
Absence from home and friends, and family
Personal risks
Missed career opportunities
Difficulties with foreign language, culture, and laws
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Project Management 6e.
15–6
15–7
FIGURE 15.1
Environmental Factors Affecting International Projects
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Project Management 6e.
15–7
15–8
Environmental Factors
Legal/Political
Political stability
National and local laws and regulations
Federal, state and local bureaucracies
Government interference or support
Government corruption
Security
International terrorism
National and local security
Local crime and kidnapping
Risk management
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Project Management 6e.
15–8
15–9
Environmental Factors (cont’d)
Geography
Climate and seasonal differences
Natural geographical obstacles
Economic
Gross domestic product (GDP)
Protectionist strategies and policies
Balance of payments
Local labor force: supply, educational and skill levels
Currency convertibility and exchange rates
Inflation rates
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Project Management 6e.
15–9
15–10
Environmental Factors (cont’d)
Infrastructure
Telecommunication networks
Transportation systems
Power distribution grids
Unique local technologies
Educational systems
Culture
Customs and social standards
Values and philosophies
Language
Multicultural environments
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Project Management 6e.
15–10
15–11
Assessment Matrix Project Site Selection
FIGURE 15.2
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Project Management 6e.
15–11
15–12
Evaluation Matrix Breakdown for Infrastructure
FIGURE 15.3
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Project Management 6e.
15–12
15–13
Cross-Cultural Considerations: A Closer Look
Culture
A system of shared norms, beliefs, values, and customs that bind people together, creating shared meaning and a unique identity.
Cultural Differences:
Geographic regions
Ethnic or religious groups
Language
Economic
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Project Management 6e.
15–13
15–14
Cross-Cultural Considerations… (cont’d)
Ethnocentric Perspective
The tendency to believe that one’s cultural values and ways of doing things are superior to all others
Wanting to conduct business only on your terms and stereotyping other countries
Ignoring the “people factor” in other cultures by putting work ahead of building relationships
Adjustments Required:
Relativity of time and punctuality
Culture-related ethical differences
Personal and professional relationships
Attitudes toward work and life
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Project Management 6e.
15–14
15–15
Cross-Cultural Considerations (cont’d)
Working inMexico
Working inSaudi Arabia
Working inFrance
Working inChina
Working in the United States
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Project Management 6e.
15–15
15–16
Cross-Cultural Orientations
Relation to Nature
How people relate to the natural world around them and to the supernatural
Time Orientation
The culture focus on the past, present, or future.
Activity Orientation
How to live: “being” or living in the moment, doing, or controlling
Basic Nature of People
Whether people viewed as good, evil, or some mix of these two
Relationships among People
The degree of responsibility one has for others
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Project Management 6e.
15–16
15–17
Kluckhohn-Strodtbeck’s Cross-Cultural Framework
FIGURE 15.4
Note: The line indicates where the United States tends to fall along these issues.
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Project Management 6e.
15–17
15–18
The Hofstede Cultural Dimensions Framework
Individualism versus Collectivism
Identifies whether a culture holds individuals or the group responsible for each member’s welfare.
Power Distance
Describes degree to which a culture accepts status and power differences among its members.
Uncertainty Avoidance
Identifies a culture’s willingness to accept uncertainty and ambiguity about the future.
Masculinity-Femininity
Describes the degree to which the culture emphasizes competitive and achievement-oriented behavior or displays concerns for relationships.
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Project Management 6e.
15–18
15–19
Sample Country Clusters on Hofstede’s Dimensions of Individualism-Collectivism and Power Distance
FIGURE 15.5
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Project Management 6e.
15–19
15–20
Working in Different Cultures
Relying on Local Intermediaries
Translators
Social connections
Expeditors
Cultural advisors and guides
Culture Shock
The natural psychological disorientation that most people suffer when they move into a different culture.
A breakdown in a person’s selective perception and effective interpretation system induced by foreign stimuli and the inability to function effectively in a strange land
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Project Management 6e.
15–20
15–21
Culture Shock Cycle
FIGURE 15.6
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Project Management 6e.
15–21
15–22
Working in Different Cultures (cont’d)
Coping with Culture Shock
Engage in regular physical exercise programs, practice meditation and relaxation exercises, and keep a journal
Create “stability zones” that closely re-creates home
Modify expectations and behavior
Redefine priorities and develop realistic expectations
Focus on most important tasks and relish small accomplishments
Use project work as a bridge until adjusted to the new environment
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Project Management 6e.
15–22
15–23
Selection and Training for International Projects
Selection Factors
Work experience with cultures other than one’s own
Previous overseas travel
Good physical and emotional health
Knowledge of a host nation’s language
Recent immigration background or heritage
Ability to adapt and function in the new culture
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Project Management 6e.
15–23
15–24
Selection and Training for International Projects (cont’d)
Areas for Training to Increase Understanding of a Foreign Culture:
Religion
Dress codes
Education system
Holidays—national and religious
Daily eating patterns
Family life
Business protocols
Social etiquette
Equal opportunity
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Project Management 6e.
15–24
15–25
Selection and Training for International Projects (cont’d)
Learning Approaches to Cultural Fluency
The “information-giving” approach—the learning of information or skills from a lecture-type orientation
The “affective approach”—the learning of information/skills that raise the affective responses on the part of the trainee and result in cultural insights
The “behavioral/experiential” approach—a variant of the affective approach technique that provides the trainee with realistic simulations or scenarios
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Project Management 6e.
15–25
15–26
Relationship between Length and Rigor of Training and Cultural Fluency Required
FIGURE 15.7
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Project Management 6e.
15–26
15–27
Key Terms
Cross-cultural orientations
Culture
Culture shock
Infrastructure
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Project Management 6e.
15–27