With the emergence of globalization, the business models have been completely transformed. A growing number of businesses are operating globally giving rise to diverse multicultural teams. Nevertheless, cultural differences have undermined the efficiency and decision-making of the international project teams as there is more cultural diversity in the teams than ever before. Hence, it has become imperative for the organizations to take cultural diversity into consideration. Prominent cultural studies postulate that having diverse teams in the organizations can have both challenges and opportunities, yet it lacks emphasis of cultural understanding in project management. Moreover, digitization of business operations have moved organizations towards more specialized roles instead of traditional roles. Therefore, this study highlights the importance of team dynamics, their cultural backgrounds, values, and beliefs. It also emphasizes project team development to adopt increased empathetic attitude and emotional intelligence. The research has employed qualitative data retrieved from questionnaires and interviews. A project group development model is proposed aimed at avoiding conflicts arising due to lack of cultural understanding .The findings show that multicultural project groups will experience conflicts caused by cultural differences. Therefore, cultural understanding is vital for group members before they start working together as a group. In addition, cultural training, effective communication, teambuilding exercises and well-defined project goals are important determinants in avoiding team conflicts. Furthermore, project management methodologies should also address cultural aspects of project groups in addition to technical details as present studies lack any cultural advice.

Keywords: Cross-Cultural Management; Teambuilding; Project Management; Conflicts; Multicultural Team

https://doi.org/10.56249/ijbr.03.01.42