Project Management

Chapter 23 : Management of International Projects

Impact of Business Environment on International Projects

Challenges in International Projects

Political Disturbances
Economic Instability
Sudden Changes in Tax Laws
Time Consuming Government Procedures
Cultural Barriers
Patent Laws
Improper Pre-Analysis
Dispute Settlements

Impact of the Socioeconomic Environment on International Projects

Impact of Legal Environment on International Projects

Impact of Technological Environment on International Projects

Impact of Cultural Diversity on Projects

Office Timings and Punctuality
Business Entertaining and Food Negotiations

Multicultural Communication

Manager and Employee Relationship
Language
Technology

Managerial Behavior in International Projects

Chapter Summary

Globalization can be viewed from various perspectives. The word globalization has both negative and positive connotations. According to Ruud Lubbers, globalization is a process of minimizing the significance of geographical distance in developing and maintaining international economic, political and socio-cultural relations. But according the critics, globalization is the drive towards a worldwide economic system that is dominated by the supranational corporate trade and banking institutions, which are not accountable to the democracy of the nations or their governments.

Globalization has a significant impact on the way projects are managed. There are three basic models of project management based on project management styles, namely the European Model, the North American Model and the Japanese Model.

Technological revolutions like the Internet, satellite communications and cellular telephony form the backbone for organizations to make their presence felt globally. This has resulted in organizations continuously exploring opportunities to set up units in foreign countries, thus giving rise to international project management.

Understanding the culture of a country is a major driving factor in the success of an international project. Before rushing into a project involving a different culture, the project manager should spend some time exploring the customs and beliefs of that culture. Each and every country in this world has its own cultural background that influences the business environment. Culture is the result of the interaction between the human beings and the environment. Culture is passed down from one generation to another with the help of the family and schools. Defining culture is no simple task, because it involves many complex sub-topics. The sub-topics need to be defined first in order to get a complete picture of culture and its possible implications on the business environment namely, material culture, customs and rituals, language, education, religion, beliefs, values and attitudes, social organizations and the political systems.

Negotiation is a process of exchanging ideas with one another to arrive at a consensus on a particular issue. Negotiations play an important role in the business environment, more so in the international business.

The challenges in international projects may take the form of political disturbances, economic turbulence, quick changes in tax laws, time consuming government procedures, cultural barriers, patent laws, improper pre-analysis or dispute settlements. Apart from all these, the discipline of international project management is influenced by the socioeconomic, legal and technological environment of a country. The behavioral pattern of managers in different geographical locations is also different, because of their cultural backgrounds. These behavioral patterns also have a significant impact on the outcome of a project.

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