Ecom201 – final - first term 2021-2022 Question 1 There is a continuous increase in virtual management and geographically dispersed teams. One reason for the increase is: © Non-Geographical diversity. O Stagnant time to market © No pressure from the global marketplace and economy O Financial considerations Building a successful global team requires: O Telling team members to solve their own conflicts O Letting team members decide what they will contribute to the team on their own O Recognizing and understanding key cultural differences between team members O Dictating exactly what team members will do Question 4 Which of the following statements is true about the technical projects' defect-tracking process? O It is the responsibility of the IT staff only in the virtual team and they must understand how the defect-management system works O Everyone on the virtual team must have access to the defect-management system O The process does not require the definition of enhancements O It is not possible to determine how to reopen a resolved or closed defect if it appears not to be fixed Question 5 Ali conducted a meeting that was a formal presentation. He did not include status reports. What do you think Ali's situation is? O Ali is right because not all formal presentations should include status reports O Ali has to include status reports in all presentations including the formal ones O Ali will face trouble with his supervisor O None of the above Question 6 Which kind of companies tend to be less political than corporations? O Big Companies O Professional Companies © Unorganized Companies O Small entrepreneurial companies 1|Page Ecom201 – final - first term 2021-2022 Question 7 Asking the senior management for help has the following advantages, except: O To better handle situations that have not arisen before. O To get their involvement or approval O To make the virtual manager feel the shortage of management skill capability O To help the virtual manager deal with a tough decision Question 8 Which one of the following statements better describe a team leader? O Inspire others by controlling them O Push others where s/he want them to go O Direct others by walking ahead O None of the above Question 9 One of the following statements is not true when it comes to discovering commonalities for virtual teamwork? O Managers must help team members find commonalities and help them share these commonalities. O With virtual teams, a manager should not strive to find commonalities among team members, which might put pressure on them. O Most team members will not share commonalities, but they will develop commonalities over time. O During meetings, have team members share something about themselves. Question 10 Adam had a fight with his client. In the heat of the situation, Adam sent an email. Later, he denied sending that email. Why do you think his dishonesty would not help him? © Because all companies can view all emails sent from company account at any time O Because he was mad and sent an irritated email O Because he did not use his personal email for communication O Because he did not want to get in trouble Question 11 Internal catastrophic events include one of the following: O Natural disaster O Hardware or network failure O Client or event issues O Strikes Question 12 The perfect act when a company face a catastrophic event is.... O To keep calm and do not make any rash decisions O To make fast decisions to contain the problem O To delay communication until evidence is clear O To solve the situation alone among team members 2|Page Ecom201 – final - first term 2021-2022 Question 13 When deciding which virtual tools are required, the following option should be clearly defined and documented except: O Team work processes O Team work procedures O Team work holidays O Team work functions . Question 14 Team leaders should avoid this technique in managing their teams: O Ethical consideration O Micromanaging O Inspiration O Setting high expectations Question 15 A domestic alternative to offshoring, where the work is outsourced to rural, underdeveloped parts of Saudi Arabia, is called: O Rural sourcing O Local sourcing O Farm sourcing O Indie sourcing One of the disadvantages of mediating a phone conference is: O You cannot see facial expressions or read body language to help judge how either party is reacting or thinking. O It is sometimes easier to be honest when you don't have to look someone in the eye. O Shy people sometimes feel more comfortable talking on the phone than in person. O The impersonal nature of the phone can make it easier to say things you might feel embarrassed about saying in person. Question 17 The keys to successful time management are: O Avoiding unnecessary meetings and long emails O Staying focused and avoiding distractions O Establishing set times for phone calls and scheduling appointments for the end of the day O Ending meetings on time and avoiding office conversations Question 18 3|Page Ecom201 – final - first term 2021-2022 Recognizing a potential conflict situation includes all of the following except: O Agreement O Unhappiness O Disrespectful communication O Dismissing other ideas Question 19 One of the high benefits of virtual management tools is that it allows team members to: O Identify cultural differences O Increase project budgets O Share virtual workspaces O Expanding the number of employees Question 20 One of these items is not considered a unique characteristic of a dynamic team: O Personalities O Business cultural backgrounds O Learning styles O Affection Question 21 The company politics means influencing others to.. O Perform different tasks © Align to the same goals © Coercing others to do menial tasks O Confuse others about guidelines Question 22 Dana faced a situation where she had to deliver sad news to her virtual team. What would be the most appropriate way to communicate such news? O Writing an email O Writing a short message O Meeting virtually O Recording a voice message on WhatsApp Question 23 Creating your virtual team from an internal pool of employees has these advantages, except: O The hiring process is much quicker and expensive O The hiring process is less stressful O The process will not let you go through so many resumes O Team members are already familiar 4|Page Ecom201 – final - first term 2021-2022 A professional leader should practice what s/he preaches and be true to his/her-self and to the team. This is operating value known as: © Commitment © Accountability O Integrity O None of the above . Question 25 How can managers reward their team members? O Getting the team together at least once per quarter or review cycle to celebrate achievements. O Celebrating and rewarding achievements when the project is done. O Save the budget on not celebrating and start a new project. O Celebrating every weekend with the team members. Question 26 Which of the following is not a people management skill? © Setting goals O Setting personal objectives O Evaluating performance O Agendas and minutes The communication ...... should define the process for formal and informal communications. O Analysis O Design O Plan O Implementation " is the process used to manage any changes to projects or teams that will affect the successful outcome of a project, job, or contract. O Change system O Change management O Change control O Change style When it comes to risk management, you should O Evaluate and re-evaluate the risk one time only © Evaluate and re-evaluate the risk on a continual basis O Evaluate the risk after the catastrophic event only © All answers are right 5|Page Ecom201 – final - first term 2021-2022 Question 30 In terms of team member interactions in a virtual environment, which one of these statements is true? O Having a process to communicate why a team member is not attending meetings. O Letting team members become isolated so they can work on their own free time. © Having little interaction as to not bother each other. O Being part of the team should not be considered as a job as both tasks get overwhelming as time passes. Case: The Procter & Gamble company is an American multinational consumer goods corporation. P&G defines organized processes and procedures to manage its affairs with many parties including clients and partners, and even among employees in various locations. Which of the following statements is true about P&G? O Everyone in the P& G virtual team has a different way of doing the tasks without procedures O The P& G process documents can be distributed by emails according to regions and branches O It is important to evaluate and update P&G processes as necessary for every location O P& G Processes must remain constant Question 32 Case: Company X has to deal with constant conflicts of interest. The upper management realise that those conflicts are an inevitable fact organisational life and are not in themselves a sign of wrongdoing. If conflicts of interest are not managed, they can affect staff morale, work and community confidence in the organization. In addition, they can undermine confidence in the leadership. Which one of the listed reasons you think made that type of conflict arises? O Because of personality clashes or misunderstandings among Company X employees O Because of partial agreements on some matters among Company X employees O Because of cultural communication style among Company X employees O Because of respected code of conduct among Company X employees Question 33 Case: Aramco is one of the largest petroleum and natural gas companies in the world. The company have several locations other than Saudi Arabia such as Singapore, Baku, London, New Delhi, and New York. This multinational work process enabled Aramco to define all types of processes and procedures to communicate (in its various forms) between employees of all branches. Aramco virtual team members must be given access to the written process documentation and the appropriate tools, so they are ...... O Able to change the rules according to their diverse cultures O Able to use process effectively regardless their location O Able to oppose the manager in other branches or locations O Able to disseminate it to the public Question 34 6|Page Ecom201 – final - first term 2021-2022 Case: Ahmad works in a company that is based on Saudi Arabia. The company also has offices in Oman and UAE. The company spent time finding out which collaborative tools are best suited to their needs. Team members use various communication tools that makes it comfortable and more effective to get things done. The phone is used for formal and informal communication between team members. Example of communication tools used are instant messaging, SMS, video and phone conferencing. Therefore, IM and SMS are communication tools that have the following features except: O They are not suitable to communicate between more than two locations O They have quick send and respond time O They are helpful informal tools for the virtual team O They can be received through smart phones, laptops, and other digital devices Question 35 Case: A marketing agency uses a virtual management software program for overall virtual management. This tool allows the users to interact daily. They share files, calendars, and online discussion areas. This program enabled team members to interact and communi effectively without being in the same geographical location. The agency has backup management software, and they use it if any prol occur. One of the features of virtual teams having a centralized document is that: O Team members can share different versions of the documents through email O Shared documents cannot be edited and must be archived O Team members cannot comment on each other's work to avoid bias O Team members manage and have access to the same sets of files Question 36 Case: You are an IT manager in a company. The company is planning to open a new office in Doha (Qatar). As a manager, you are striving to find the appropriate vendor for outsourcing information systems in order to save cost and enhance the core competencies and cost-efficiency. You will invite your assistants for brainstorming. Your team will discuss every point to find the solutions. Therefore, which one of these factors helps your team to decide when to outsource? O Outsourcing with disregard of core competencies O Considering high maintenance rate O Having an expenditure savings idea O Avoiding the risks entirely and set up local virtual offices Case: Conflict is a phenomenon of negative emotional feelings and reactions between parties with different opinions, ideas and views. Conflict in an organization is almost unavoidable. Conflict might happen between an employer and an employee when there is dissatisfaction or disagreement between them towards a particular work situation. The employee sometimes does not have a mutual understanding with his/her employer regarding specific issues until the end. Which of the following is not a characteristic of conflict? O Perceived interference for outside parties O Expressed struggle O Perceived incompatible goals O Independent work Question 38 7|Page Ecom201 – final - first term 2021-2022 Case: Mumzworld is an online store that sells different products such as childcare equipments and toys. Christine manages various Mumzworld teams who work in different cities. Christine needs to improve her technical skills as well as her decision-making skills. Which of the following would be considered a technical skill that would help Christine manage her team virtually? O Communicate with her team daily O Communicate with her team weekly O Communicate with her team bi-weekly O Communicate with her team several times a week Question 39 Case: Khalid is a virtual worker who keeps hectic schedules that arise out of his educational requirements, office work, job duties, or household chores. To avoid feeling stressed or pressured due to work, he is required to implement some time management skills effectively. Therefore, one example of good time management for Khalid would be: O To assign himself as his colleague's time supervisor © To be accountable for his time management O To avoid working on shared tasks virtually O To spend more than enough time reading emails to accomplish his tasks Question 40 Case: During COVID 19, and due to the previous manager inability to lead, Vera Company promoted David as a new manager of a virtual team to work on a marketing campaign. After a while, he noticed that his team performance was not adequate. As this is a new situation for him, what would be the best advice that you can give him: O To let the team works without constant feedback O To manage the performance at the beginning and end O To let the members express their goals in writing O To give a team time to adjust to the new situation It is important to understand what are, why they exist and how they manifest themselves in a virtual environment. O Personal politics O House politics O Group politics O Office politics 8|Page STAT201-Assignment-1 True/ False Questions 1. In a quantitative analysis model of profit, expenses can be represented as the sum of fixed and variable costs. Profit Revenue E/Pen÷ Answer: TRUE Fixed cost Variable Cost 2. The quantitative analysis model express profits through the relationship among unit price, fixed costs, and variable costs. Answer: TRUE 3. If a company has total annual profit of SR 20000 and the expenses are SR 15000 then the total revenue of the company is equal to 23000. Profit Revenue Expenses 15,000 Answer: FALSE 20,000--1 23,000 4. Models that do not involve risk or chance are deterministic models. Answer: TRUE 5. Minimax decision rule is used to find the alternative that minimizes the minimum payoff. Maximize Answer: FALSE 6. In Criterion of Realism (Hurwicz) method, a value 1 for D (Coefficient of Realisim) is perfectly optimistic, while a value of zero is perfectly pessimistic. Answer: TRUE 7. When using the EMV as a decision criterion, the best decision is the alternative with the minimum EMV value. - mas Answer: FALSE 8. The decision theory processes of maximizing expected monetary value (EMV) and minimizing expected opportunity loss (EOL) should lead us to choose the same alternatives. Answer: TRUE 9. If for any marketing strategy, expected value for perfect information (EVPI)=3000 and EVwPI=4000, then the maximum EMV must be 500. Evp5=EvwP5 EMV 4100° 500 Answer: FALSE H , ooo 3, ooo 10. Demand for a particular type of battery fluctuates from one week to the next. A study of the last six weeks provides the following demands (in dozens): 4, 5, 5, 6, 8, 10. Forecast demand for the next week using a three-week moving average is 9. F-No ✗ Answer: FALSE 2413 = ← " 11. For the set of forecast errors -4, -6, 0, +6, +4; MAD is 2. ⇐ →* Answer: FALSE 12. Assume that you have tried three different forecasting models. For the first, the MAD = 2.5, for the second, the MAD = 5.5, and for the third, the MAD = 4.7. We can then say that model first is preferable to models second and third. Answer: TRUE ✗ 13. Exponential smoothing cannot be used for data with a trend. Answer: FALSE = - + - , - ÷* - - , ÷ ; § & - D- - ⇐ ¥-4 - § MULTIPLE CHOICE QUESTIONS GXP 1. The profit equation for any company is given as follows: Profit = 150𝑋 − 800 − 100𝑋 to V/s Profit = 𝑠𝑋 − 𝑓 − 𝑣𝑋 If company sells 10 units, then the total expenses of the company is? a. 1500 b. 1800 c. 1900 d. 1300 = 1,800 - 2. The profit equation for any company is given as follows: Profit = 250𝑋 − 1200 − 180𝑋 V/s Profit = 𝑠𝑋 − 𝑓 − 𝑣𝑋 If company sells 20 units, then the total profit of the company will be? a. b. c. d. 200 300 500 400 HI y ? 48,800 -1200-180×2 250×20 5 > ooo = - 1200 3,600 - Zoo 3. In a Production Company, the materials and labor cost for making a product is $100 and the fixed cost per week is $1000. The selling price for each product is $200. How many products must be sold by the company per week to breakeven point? a. 10 BFF = b. 20 Figprice variable cost c. 15 • d. None of the above €←eE- = -¥→ I . 4. A measurable quantity that is subject to change, and cannot be controlled is known as a(n) a. Dependent variable. b. Algorithm. c. Model Parameter. d. independent Variable. slide 5. The following is a payoff table giving profits for various situations. States of Nature Alternatives A B C Alternative 1 100 130 120 Alternative 2 70 90 100 Alternative 3 80 105 110 Do Nothing 0 0 0 I What decision would an optimist make? a. Alternative 1 ** Maxim " b. Alternative 2 c. Alternative 3 d. Do Nothing 6. The following payoff table provides profits based on various possible decision alternatives and various levels of demand with probabilities of different demands: States of Nature Demand Alternatives Low Medium High Alternative A 90 110 120 Alternative B 60 80 90 67 ✗ = 40 0-4-1 70 ✗ 0.3 -1 100 Xo -3 ✗ Alternative C Probability 0.4 0.3 0.3 - What will be the Expected Monetary Value (EMV) for the Alternative C? - a. b. c. d. 56 52 67 110 7. The following is an opportunity loss table. States of Nature Alternatives A B C 90 Alternative 1 0 O 90 0 Alternative 2 0 100 0 25 To Alternative 3 10 40 100 Do Nothing 200 150 250 . Ibi I 82s -100 What decision should be made based on the minimax regret criterion? a. Alternative 1 b. Alternative 2 c. Alternative 3 d. Do Nothing 8. The following is an opportunity-loss table. States of Nature Alternatives A B C Alternative 1 90 0 130 Alternative 2 140 70 180 50 0 ✗ Alternative 3 0 Do Nothing 200 150 250 011.03 = -15-0110.5×0×0.2 01-25+0 2s The probabilities for the states of nature A, B, and C are 0.3, 0.5, and 0.2, respectively, then = - - - . calculated expected opportunity loss for Alternative 3 will be? a. 36 b. 52 c. 25 d. 28 9. A manager is deciding whether or not to build a small facility. Demand is uncertain and can be either at a high or low level. If the manager chooses a small facility and demand is low, the payoff is -$40. If the manager chooses a small facility and demand is high, the payoff is $70. On the other hand, if the manager chooses a large facility and demand is low, the payoff is -$30, but if demand is high, the payoff is $60. Develop the decision table and find the Maximax value? a. 60 $60 $40 b. 70 c. -30 $-30 d. -40 $70 .d☒ - 10. Sales for cars at showroom over a 3-month period were forecasted as follows: 25, 30, and 22. The actual results over the 3-month period were as follows: 35, 22 and 31. What was the MAD of the 3-month forecast? Forecasted MAD Actual a. 10 " 1101 2s s b. 12 3s = c. 8 181 30 22 d. 9 22 31 191 - - §¥ - - - - % / 11. Monthly sales of a company for the period January – May has been as follows: MONTH January February March April May INCOME 800 900 1000 I ✗ 1300 2X 1600 = sa €+3560 3 cucumber of weight ) -_€) Using a 2-month weighted moving average with weights of 2 for May and 1 for April, forecast for June’s sales is: a. b. c. d. 1600 1250 1450 1500 4,500 3- = I >Soo 12. Given the following data of Blackboard Collaborate complains of instructors of SEU from the last two years: e- !d q! gig & ? ' Quarter 1 2 Year 1 100 85 + ← Year 2 120 12 12 95 # ? g;•***%¥4 Bby! n% * * ' ;÷&É ④ 90 1- zag .µji9 ,& ' ④ 3 4 = it • ° 105 80 + + 115 100 12 12 go 2oz 1- What is the average seasonal index for quarter 3? a. 0.8 b. 0.9 c. 1.5 d. None of the above Correct Answer: 1.2 13. Number of customers arriving at a 5-star restaurant on different days of the week is given in the following table: Number of Day Customers arriving Sunday 15 Monday 18 Tuesday 16 Wednesday 19 Assuming that an initial forecast for Wednesday was 22, then forecast for Thursday using exponential smoothing with an alpha = 0.5 is: a. 18.5 b. 19.5 22 c. 20.5 d. 17.5 Actual -_ alphas I ? go; 9? t if " you go.it i ' | = F. + 0.5 alpha iii. (Y asua - " -2 scho.SI :& ¥ Fe ) Academy ol Management Executive, 2002, Vol. 16, No. 3 Five challenges to virtual team success: Lessons from Sabre, Inc. Bradley L Kiikman, Benson Rosen, Ciistina B. Gibson, Paul E. Tesluk, and Simon O. McPheison Executive Summary Advances in communications and information technology create new opportunities for organizations to build and manage virtual teams. Such teams are composed of employees with unique skills, located at a distance from each other, who must collaborate to accomplish important organizational tasks. Based on a comprehensive set of interviews with a subset of team members, team leaders, general managers, and executives on 65 virtual teams at Sabre, Inc.—an innovative organization in the travel industry—we identify five challenges that organizations can expect to encounter in establishing, maintaining, and supporting virtual teams, e.g., building trust, cohesion, and team identity, and overcoming isolation among virtual team members. Both leaders and members of virtual teams face particular difficulties in selecting team members who have the balance of technical and interpersonal skills and abilities required to work virtually and in evaluating the performance of individuals and teams working in virtual space. Examination of Sabre's strategies for coping with each challenge should be instructive to other organizations using or considering virtual (earns. Off the coast of Mexico, a team of five people struggles to stay afloat on a raft they assembled on shore. Waves crash around them, their raft begins to tip over, and two members fall into the sea. A third member helps the submerged members back onto the raft. Finally, the raft is righted and the team paddles furiously onward. While this might sound like a scene from a reality TV show, these events are actually part of teambuilding at Sabre, Inc. for its virtual teams. The crashing waves symbolize unanticipated and rapid change, the construction of the raft from everyday materials demonstrates creativity and resourcefulness, and the entire exercise shows that you either sink or swim as a team. Just one year earlier, virtual team members at Sabre had spent three days in face-to-face team-building activities designed to launch a division-wide virtual teams initiative. This raft exercise reinforced the knowledge and skills learned in earlier teambuilding. We examine the challenges of building and managing virtual teams and present five important lessons learned from Sabre's experience. Virtual Teams: Origins and Trends While work teams were used in the U.S. as early as the 1960s, the widespread use of teams and quality circles began in the Total Quality Management movement of the 1980s. In the late 1980s and early 1990s, many companies implemented self-managing or empowered work teams. To cut bureaucracy, reduce cycle time, and improve service, line-level employees took on decision-making and problemsolving responsibilities traditionally reserved for management. By the mid-1990s, increasing numbers of companies such as Goodyear, Motorola, Texas Instruments, and General Electric had begun exporting the team concept to their foreign affiliates in Asia, Europe, and Latin America to integrate global human resource practices.' Now, due to communication technology improvements and continued globalization, virtual teams have increased rapidly worldwide. Virtual teams are groups of people who work interdependently with shared purpose across space, time, and organization boundaries using technology to communicate and collaborate.^ Virtual team mem67 Academy of Management Executive bers may be located across a country or across the world, rarely meet face-to-face, and include members from different cultures.^ Many virtual teams are cross-functional and emphasize solving customer problems or generating new work processes.'' Virtual work allows organizations to combine the best expertise regardless of geographic location.^ Due to employee travel restrictions resulting from the 2001-2002 recession and the events of September 11, 2001, virtual teaming will likely increase exponentially. This increase will parallel that of telecommuters, or employees who work from remote locations and communicate electronically.^ Two out ot three Fortune 500 companies currently employ telecommuters.' The United States Labor Department reported that 19 million people worked from home online or from another location in 2001,^ and the GartnerGroup estimated that by 2002 over 100 million people worldwide will be working outside traditional offices.^ While many organizations have embraced virtual teaming, little is known, beyond anecdotal evidence and conventional wisdom, about what makes virtual teams work or even how they differ from face-to-face teams. Virtual teaming -will likely increase exponentially. Anthony Townsend and colleagues (August 1998) first discussed in detail the concept of virtual teams for The Executive.^^ The authors defined virtual teams, specified why they have become popular, discussed communication technologies, and provided preliminary guidelines for building virtual teams. More recently in The Executive (August 2000), Wayne Cascio examined virtual workplaces more generally, discussing the disadvantages of virtual teaming and methods for training team members and leaders." Building on and extending this work, we examined specific challenges encountered by virtual team leaders and members. Much of the previous virtual-teams research emanated from anecdotal evidence or case studies.'^ We comprehensively studied a large number of cross-functional virtual teams in a high-technology company to challenge the prevailing conventional wisdom regarding virtual teams. To extract important lessons, we drew on our experiences with 65 cross-functional virtual teams at Sabre. Sabre, Inc: Business at Internet Speed In 1960, Sabre began as the computerized reservation system of American Airlines and is the inventor of August electronic commerce for the travel industry. In March 2000, Sabre spun off from AMR (the parent company of American Airlines) and became 100 percent publicly traded. Headquartered in Dallas/Fort Worth, the company currently employs over 6,000 employees in 45 countries. Sabre processes over 400 million travel bookings annually (40 percent of the world's travel reservations) and is used by over 60,000 travel agents in 114 countries. Sabre also owns Travelocity.com, the world's leading online business-to-customer travel site; and it owns GetThere, the world's leading supplier of Web-based business-to-business travel reservation systems. Sabre's competitors include: Galileo (owned by Cendant Corporation), Worldspan (owned by Delta, Northwest, and TWA), and Amadeus (majority owned by Air France, Iberia, and Lufthansa). Major competitors oi Sabre's Travelocity.com include Expedia.com and Orbitz.com. Our research focused on executives, vice presidents, and virtual team leaders and members in Sabre's North American Sales and Service, Operations, and Financial Services Division. Sabre's 65 virtual teams are cross-functional, based in the U.S. and Canada, and often span several states or provinces. With over 500 members, they average about eight members per team. Virtual team members are located in both field and employee home offices and in the company's Texas headquarters. On each team, account executives sell reservation systems, field service technicians install systems, training representatives teach travel agents how to use the systems, installation operations coordinators schedule installation and training appointments, account management specialists handle customer billing and collection, and customer service representatives field inquiries throughout the process. Clearly, Sabre's virtual teams are highly interdependent. To coordinate activities, members communicate using e-mail, telephone, video conferencing, and Web-based conferencing. Sabre switched from functionally based work teams to market-based, cross-functional virtual teams in 1999 to integrate different functions to improve customer responsiveness. Functional silos were limiting Sabre's ability to satisfy customers. For instance, from 1996 to 1998, Sabre's North American customer satisfaction ratings fell from a 79 percent satisfaction rate to 68 percent, while competitor ratings remained unchanged. The purpose of virtual teams was to strengthen customer focus to increase productivity, market share, and profitability. Cross-functional virtual teams represent a specific, albeit common, type of virtual team. Indeed, there are many types of virtual teams, each presenting unique management challenges. For ex- 2002 Kirkman, Rosen. Gibson. Tesluk, and JVlcPherson ample, global virtual teams must overcome cultural and communication barriers.'^ Virtual teams assigned to accomplish specific projects often have high start-up costs. Some research on crossfunctional teams has shown that as teams become more cross-functional, both positive team processes (e.g., information sharing, team task and strategy agreement, and flexibility) and outcomes such as unit performance decrease.''' The challenge for Sabre was to recognize obstacles confronting teams that are both cross-functional and virtual. Lessons learned from Sabre should apply to cross-functional virtual teams and other virtual teams that create synergies based on the speciai expertise of members in distant locations. Functional silos were limiting Sabre's ability to satisfy customers. The Dimensions of Virtuality Sabre's virtual teams are only moderately, and not completely, virtual. A virtual relationship is one that is primarily conducted using technology, but virtual teams vary in the degree to which this is the case.^^ In fact, degree of virtuality is a complex multidimensional construct.'^ One dimension of virtuality is the proportion of time that team members work face-toface compared to virtually. A second dimension is the proportion of team members at any one location. Along this dimension, the highest degree of virtuality would be when all members work at distant locations. A third dimension is the proportion of time members devote to a virtual team compared to time spent on other duties. In some instances, individuals may work only a few hours a month on a virtual team project, while devoting most of their time to activities unrelated to virtual work. Sabre's virtual teams meet face-to-iace only once a year. While about 15 percent of the members work at the same location, most teammates work at distant locations. Virtual team activity is the primary focus of each member. Accordingly, our findings could apply to other cross-functional virtual teams. Five Challenges of Virtual Teams From our interviews with over 75 executives, team leaders, and team members, we uncovered some surprising insights about meeting the challenges of managing and working in virtual teams (we summarize our interview methodology in the Appendix). For each of the five challenges, we first present the conventional wisdom (i.e., what consultants and researchers are saying), we then highlight Sabre's in- 69 novative responses, and finally we extract the lessons learned from Sabre that should help other organizations using virtual teams. Table 1 presents a summary of conventional wisdom, virtual team challenges, and lessons learned. Challenge 1: Building Trust Within Virtual Teams Conventional wisdom: Most consultants and researchers agree that building trust is the greatest challenge in creating successful virtual teams and organizations.'^ Trust has been called the glue of the global workplace.'^ As Charles Handy, author of "Trust and the Virtual Organization," stated. Most of our organizations tend to be arranged on the assumption that people cannot be trusted or relied upon, even in tiny matters.... It is unwise to trust people whom you do not know well, whom you have not observed in action over time, and who are not committed to the same goals Trust needs touch ... high tech has to be balanced by high touch to build hightrust organizations. Paradoxically, the more virtual an organization becomes, the more its people need to meet in In Wayne Cascio's Executive article on working virtually, he stated, "Lack of trust can undermine every other precaution taken to ensure successful virtual work arrangements."20 Furthermore, Sirkka larvenpaa and her colleagues have stated, "In virtual organizations, trust requires constant face-to-face interaction—the very activity the virtual form eliminates."^' The conclusion from conventional wisdom is that trust is very difficult to build and requires frequent face-to-face interaction. Thus, a specific challenge for virtual teams, compared to face-to-face teams, is the difficulty of building trust between team members who rarely, or never, see each other. Our findings at Sabre, however, question this conventional thinking. Consider the following interview quotes about trust; When you are working with people you never see, you can develop trust, but you must respond to that person. Follow through. If you tell them you are going to get back to a customer, get back to them. (Dallas/Fort Worth team member) I think trusting someone in a virtual team is linked directly to their work ethic. It is task first. The trust has been built through the task-based relationship that has evolved. (Account executive) August Academy of Management Executive 70 Table 1 Conventional Wisdom, Virtual Team Challenges, and Lessons Learned from Sabre Conventional Wisdom Lessons Learned from Sabre Virtual Teana Challenge Establishing trust based on Building trust in virtual teams is periormance consistency rather extremely difficult, given the limited than social bonds. face-to-face interaction. Rapid responses lo virtual teammates ioster trust. Establishing norms around communication patterns is key. Team leaders play important roles in reinforcing timeliness and consistency of team interaction. Levels of trust based on performance compensate ior lack oi social interaction. Virtual teams will struggle with creating synergy. Overcoming group-process losses associated with virtual teams. Extensive training in virtual teamwork helps overcome process loss. Training in virtual team leadership, conflict management, and meetings management is particularly valuable for overcoming process loss. Adaptation of decision-making software facilitates problem solving and decision-making. Virtual team members experience isolation and detachment. Creating a virtual environment of inclusiveness and involvement. • Consider individual differences in preferences for working virtually when selecting virtual team members. • Give virtual team members a realistic preview oi the potential for feeling detached. • Team leaders play a critical role in maintaining continuous contact with remotely situated virtual team members. • Redesign job assignments to provide virtual team members with occasional face-to-face customer contact to reduce isolation. • Convene iace-to-iace meetings for virtual team members at company-sponsored conferences. Because of the need to communicate Identifying virtual team members who have a healthy balance of via information technology, technical and interpersonal selection of virtual team members skills. overemphasizes technical skills and underemphasizes interpersonal and teamwork skills. Use behavioral interviewing techniques and simulations as part of the selection process. Use panels of current virtual team members io help recruit and select new team members and ensure the appropriate balance of technical and interpersonal skills. The panel approach has the additional benefit oi building support and facilitating socialization oi the newly selected virtual team member. Establishing the appropriate quantitative and qualitative data ior accurate assessment oi virtual team members. • Use oi a comprehensive "balanced scorecard" approach provides valuable quantitative data on team performance. • Monitor group communication archives to assess subjective iactors, including idea generation, leadership, and problem-solving skills. • Use team-member peer reviews to assess contributions to team eiiectiveness. • Use "richer" communication media, including video conferencing, for performance evaluation feedback. • Identify on-line training and development resources to address virtual team members' knowledge, skills, and abilities in need oi further improvement. Assessment and development of virtual team members is very limited in the virtual team environment. Developing creative approaches for providing feedback, coaching, and support ior virtual team members. You gain the trust in people when they deliver what they promise, when all are contributing to the same idea and goal. I think that on a virtual team you start trusting each other when you start meeting those results and everybody has their role within the team and knows what their responsibility is and takes ownership to achieve results. (Canadian team member) We concluded that trust can be built virtually and does not require face-to-face interaction. The key 2002 Kirkman. Rosen, Gibson. Tesluk. and McPherson issue is the type of trust developed. For example, in face-to-face teams, members trust their teammates after spending time with them, sharing meals, discussing personal matters, or socializing outside work. People trust others when important information they share stays confidential. Researchers call this type of trust benevolent or interpersonal trust.^^ In contrast, we found that trust in virtual teams grows through team member reliability, consistency, and responsiveness when dealing with teammates and customers, or what is known as ability-based or task-based trust.^^ Lessons learned: One lesson learned is that building trust requires rapid responses to electronic communications from team members, reliable performance, and consistent follow-through. Unlike faceto-face teams, where trust develops based on social bonds formed by informal chats around the water cooler, impromptu meetings, or after-work gatherings, virtual team members establish trust based on predictable performance.^-'' Accordingly, team leaders should coach virtual team members to avoid long lags in responding, unilateral priority shifts, and failure to follow up on commitments.^^ A team charter that explicitly identifies important types of team member behaviors (e.g., responding to all e-mails from team members within 24 hours) is a complementary strategy that leaders may use to develop trust among virtual team members. These actions will build strong team norms about types of behavior that foster Unlike face-to-iace teams, where trust develops based on social bonds formed by informal chats around the water cooler, impromptu meetings, or afterwork gatherings, virtual team members establish trust based on predictable performance. Upon first glance, the challenge of building trust may seem typical for any team or organization. However, building trust is a unique challenge for virtual teams because managers cannot rely on past methods of trust-building based on social interaction, face-to-face meetings, and direct observations of fellow team member commitment. Working virtually magnifies and exacerbates trust issues confronting almost all teams. The need for a proactive approach to identifying and facilitating trust based on speed, consistency, and responsiveness of virtual team members is the first important lesson learned from Sabre. 71 Challenge 2: Maximizing Process Gains and Minimizing Process Losses on Virtual Teams Conventional wisdom: Many researchers and consultants believe that the group-process gains (positive synergy) produced in face-to-face teams are more difficult to obtain in virtual teams and that process losses (negative synergy) are more likely.^^ Cascio stated, "The major disadvantages of virtual teams are ... [that] the synergies that often accompany face-to-face communication [are \os\]."^^ In discussing telecommuting, Nancy Kurland and Dianne Bailey said, "Managers may find it difficult to create team synergy and to overcome the absence of informal, interactive learning."^^ Beverly Geber stated that in order to convince executives to incur the expense of getting virtual team members face-to-face, "It's best to use the synergy ploy. Remind executives that often a company's best ideas are bom out of chance encounters in a hallway or around a water cooler. Letting virtual team members get together sometimes for extended water cooler discussions improves the chances for serendipity. "^^ Steve Alexander quotes a manager as saying, "I think virtual teams are less productive in the sense that you're missing out on those corridor talks between the sales and the technical people that sometimes bring about very good results ... it's not as perfect as having everyone sit in the same building."^' This conventional wisdom suggests that generating synergy (and avoiding process losses) is difficult in virtual teams because members rarely interact face-to-face. Thus, another challenge specific to virtual, but not face-to-face, teams is creating synergy without daily physical encounters. In response to this challenge. Sabre invested in teambuilding as part of its virtual team launch. Pre-launch classroom activities included developing team mission statements and core values to help members set objectives, clarify roles, build personal relationships, develop team norms, and establish group identity. Sabre also encourages virtual team members to assemble once or twice yearly. While pre-launch teambuilding and scheduled face-to-face meetings cannot fully compensate for the lack of daily informal interaction, these interventions do help team members establish a common set of goals, expectations, and operating principles. To further instill shared purposes and goals, every team must complete a business plan outlining its annual goals and objectives. One team member commented, "Virtual teams need to understand much more so than co-located teams what goal they are working towards because you are working in such different areas and, in our case, in different countries. It plays a much stronger role if you know 72 Academy of Management Executive what your ultimate target is going to be. Everyone is working toward the same thing." To help teams run effective virtual meetings, brainstorm solutions, resolve conflicts, and take action. Sabre relies on continuous virtual team training. Each team completes a series of CD-ROM training modules developed by the Hillsboro, Oregon consulting firm The Belgard Group. Nicknamed Tour de Teams by Sabre, the 15 training modules contain exercises and scenarios such as developing a team charter, managing a team meeting, resolving conflicts, and selecting new team members. One team member commented, "When we complete the team training modules, we have a conference call and go over all of the points. We take them very seriously. So when we have virtual meetings, we now have tools to help us stay on track and communicate effectively." Sabre's experience also shows that working virtually can reduce team process losses associated with stereotyping, personality conflicts, power, politics, and cliques commonly experienced by face-to-face teams. Diversity research shows that visual cues such as race/ethnicity and gender can decrease team integration and performance in highly diverse teams.^2 Virtual team members may be unaffected by potentially divisive demographic differences when there is minimal face-to-face contact. And, while the research is still relatively new, some researchers have found that electronic collaboration generates more minority participation, which might increase overall integration and level of attachment of minority members.33 Other studies show that electronic group decision support systems help virtual teams make higher quality decisions than face-to-face Sabre's experience also shows that working virtually can reduce team process losses associated with stereotyping, personality conflicts, power, politics, and cliques commonly experienced by face-to-face teams. Lessons learned: A critical priority for virtual team leaders is helping their virtual teams maximize process gains and minimize process losses. Sabre's well-trained virtual teams overcome process losses. Sabre's training begins with teambuilding and continues with efforts to help virtual teams create charters and mission statements, clarify goals, and develop operating norms. Sabre sustains virtual team effectiveness with an ongoing virtual training program to build new skills in meetings management, problem solving, decision- August making, and other team processes. Sabre's comprehensive training efforts allow virtual teams to create synergy by bridging barriers of time and space and collaborating effectively. Moreover, stereotyping, gossip, politics, and conflict are often minimized in virtual teams like Sabre's. Challenge 3: Overcoming Feelings of Isolation and Detachment Associated With Virtual Teamwork Conventional wisdom: Regarding isolation in virtual teams, Cascio stated, "The major disadvantages of virtual teams are the lack of physical interaction—with its associated verbal and nonverbal cues," and "Some level of social interaction with supervisors and coworkers is essential in almost all jobs. Without it, workers feel isolated and out of the loop."^^ Charles Handy has stated, "The loneliness of the long-distance executive is well documented. Few are going to be eager advocates of virtuality when it really means that work is what you do, not where you go."^^ Telecommuting researchers Kurland and Bailey stated, "Probably the most commonly expressed challenge of telecommuting is overcoming the isolation caused by the separation of the telecommuter from the social network of the traditional work space."^' In a separate article, Kurland and Terry Egan said, "Employees' primary reluctance about telecommuting rests on concerns about isolation," and "Employees comment that they miss the informal interaction they garner by being in the presence of colleagues and friends."3s Finally, Paula Caproni warned, "Many researchers and practitioners are concerned that high-quality relationships may be particularly difficult to achieve in teams in which team members are geographically dispersed."^^ This conventional wisdom suggests that virtual team members will be less productive and satisfied than people working face-to-face due to feelings of isolation and detachment. Thus, a specific challenge for virtual team leaders that does not confront face-to-face team leaders is overcoming member feelings of isolation. Researchers have long held that people are motivated and satisfied at work, in part, as a result of interactions with coworkers."*" Colleagues share stories and pictures, have lunch or take breaks together, and celebrate promotions or the birth of children. In faceto-face teams, these activities occur naturally and frequently and build esprit de corps. Team leaders use team-building activities like ropes courses, bowling nights, or barbeques to solidify team co- 2002 Kirkman. Rosen. Gibson. Tesluk. and McPherson hesion and spirit. In virtual teams, most of these possibilities are lost. Indeed, some virtual team members have reported feelings of alienation.^' Consider these comments from Sabre team members: We get left off a lot of things because there are meetings we can't go to for cost reasons. We miss out on those opportunities to get together and bond as a group, and that is tough sometimes. And you do feel like stepchildren sometimes. (Dallas/Fort Worth team member) I find that by working at home, my work is my home and I miss that interaction. I don't have as many people to network with on issues or successes. Sometimes I can't reach anyone by phone and it's frustrating. When you work in an office, you just look over their cube and there they are. (Account executive) As much as we want to go and run the world from our bedrooms, in our slippers, we are humans, we have to be touched, seen, and heard. (Account executive) Sabre counteracts feelings of virtual team member isolation first by recognizing individual needs for social interaction or lack of it. While individuals with strong social needs may find virtual teamwork difficult, others desire independent, virtual work. Some Sabre employees welcome minimal social interaction and reductions in gossip, politics, and minor disruptions that often accompany face-to-face work. Others tout the advantages of working from home including reduced travel time, proximity to young children, and flexibility. In selection interviews. Sabre questions candidates on their suitability for virtual teamwork. Sabre uses realistic job previews^^ ^Q counter team-member isolation, which allows candidates to select out of isolating positions. Some virtual team members interact with customers, partially satisfying social needs. Sabre also gives employees options for working from home or an office where they have opportunities to interact with other Sabre employees who may, or may not, be virtual teammates. While individuals with strong social needs may find virtual teamwork difficult, others desire independent, virtual work. 73 Sabre's team-building and training sessions help overcome team-member isolation. Most consultants and researchers believe initial face-to-face meetings are critical for all team members to build personal relationships with teammates.'*^ Annual company meetings and occasional special events provide additional opportunities for face-to-face meetings. General managers frequently communicate with individual team members to reduce feelings of isolation. Since regular face-to-face interaction is not feasible, managers communicate with routine phone calls or e-mails to keep isolated team members in the loop. One Canadian manager encourages the most isolated team members to build networks of contacts within the company and to stay in close communication with headquarters. Other general managers have established mentor-protege relationships giving isolated team members a sense of inclusion. As one manager noted, "I work constantly to counteract the out-of-sight, out-of-mind problems with virtual team members. My goal is to keep everyone fully involved." Lessons ieained; General managers admitted that it took some time to recognize how to deal with virtual team member isolation. Initially, these managers interpreted minimal communication as a signal that all was well. Over time, however, managers recognized that some virtual team members needed more frequent and some almost daily communication. Sabre's experience with isolated virtual team members is that feelings of detachment and alienation, while possible, can be overcome with careful attention to social needs. Psychological testing identifies members with strong social needs, realistic job previews shape expectations of prospective employees, increased client contact and teambuilding meet social needs, and virtual team leaders proactively reach out to farflung team members. While isolation can hamper team functioning. Sabre uses a variety of techniques to minimize potential problems. Challenge 4: Balancing Technical and Interpersonal Skills Among Virtual Team Members Conventional wisdom: Since face-to-face interaction is minimal, some managers assume that interpersonal skills for virtual team members are less important than for face-to-face teams. For example, Beverly Geber suggests that managers should "select people who are comfortable sharing information and working with computers."'''* Anthony Townsend and colleagues note, "What is different about the virtual team is the amount of technical training that is required to empower the 74 Academy of Management Executive team member to function in the virtual environment. Training to maintain technical proficiency will be an important component of any virtual team member's continuing education program."'*^ A manager in Martha Haywood's book Managing Virtual Teams: Piactical Techniques for High-Technology Managers stated, "I don't care about this guy's feelings. I want to know when he's going to call me back."''^ Such sentiments illustrate the lack of emphasis on interpersonal relations. "/ don'f care about this guy's feelings, I want to know when he's going to call me back." Conventional wisdom assumes that virtual team members should be selected almost exclusively for their technical skills. After climbing a steep learning curve. Sabre's experience has been quite different. A divisional vice president captured the importance of striking a balance between technical and interpersonal skills by stating, "In our hiring in the past, we were guided by the level of technical skill, but now we are more sensitive to the level of interpersonal skills an individual brings to the equation, because this is a very key element in how these teams interact. We are more sensitive to a well-rounded person. If the work ethic is there and their ability to work with others is there, we can train them to be very effective at their jobs." We asked team leaders and members to discuss ideal virtual team member skills. An overwhelming majority mentioned ability to communicate as most important. A close second was desire to support a team and teamwork in general. Team members also listed flexibility and adaptability in playing many different team roles. Other members discussed the importance of giving and receiving feedback. Others mentioned a sense of humor. One Canadian team member commented, "Technical job skills are important, but I tend to look at their ability to be part of a team, how they adjust to working with others, and their people skills." Managers often mentioned working independently, being a self-starter, thinking outside of the box, and taking initiative. Task-relevant skills were low on their lists. One manager commented, "It is not what the job is about. We can teach them the job. It is the right personality and the ability to get along with other team members. I don't care if they know twenty different kinds of software or not. I am more interested in how that person is going to fit into that team." A significant challenge for virtual team leaders is recruiting, selecting, and retaining team members August who have a good balance of technical and interpersonal skills. Clearly, virtual team members must have financial, marketing, or technology skills to carry out specific tasks. Moreover, all employees must be well versed in using the communications technology necessary to coordinate the efforts of a cross-functional virtual team. However, Sabre's experience suggests that virtual team members must also possess excellent interpersonal skills. In response to challenges of recruiting and selecting virtual team members with the right balance of technical and interpersonal skills, managers at Sabre have adjusted their selection procedures. Many use behavioral interviewing and scenario-based questions to assess communication and teamwork skills. For example, a Canadian manager presents this situation: "I will say, 'You haven't seen me for a month. You have been flying around the Northwest Territories. You are out of touch. How are you going to stay connected to us?'" A second approach to selecting virtual team members is panel interviews. Using teleconferences, prospective future virtual teammates interview job candidates, and virtual team members assess interpersonal skills and team fit. A secondary benefit is the extra effort teammates make to welcome and socialize candidates they have selected. In future years, managers may develop a variety of simulations to aid virtual team candidate assessment. Lessons learned: At Sabre, clearly the selection of virtual team members involves assessments of both task and interpersonal skills. Contrary to conventional wisdom, just because team members seldom interact face-to-face does not mean interpersonal skills will be less important than task-relevant skills. Indeed, interpersonal skills may be more important as team members attempt to communicate effectively without relying on traditional non-verbal cues. Challenge 5: Assessment and Recognition of Virtual Team Performance Conventional wisdom: Again, Charles Handy put it best when he asked, "How do you manage people whom you do not see?" and "We will ... have to get accustomed to working with and managing those whom we do not see That is harder than it sounds."^' Kurland and Bailey stated, "A major challenge for managers is their inability to physically observe their employees' performance. They question, 'How do you measure productivity, build trust, and manage people who are physically out of sight?' If a manager can't see her subordinates in action, then she can't note where the employee is struggling and where he is strong... monitoring and measuring 2002 Kirkman. Rosen, Gibson. Tesluk. and McPherson [employeel performance remain problematic and a source of concern."''s Cascio said, "By far the biggest challenge is performance management."^^ How do you measure productivity, build trust, and manage people who are physically out of sight? Conventional wisdom suggests that it is extraordinarily difficult for virtual team leaders to assess member performance and ensure fairness for members they rarely see. At Sabre, however, virtual team evaluations and rewards are a priority. Accordingly, Sabre developed a comprehensive, multi-tiered assessment process. First, Sabre developed a balanced scorecard^o for each team. At the organizational level, balanced scorecards typically elevate non-financial measures such as employee or customer satisfaction to the level of importance typically held by financial measures such as stock price or return on equity. At the team level, Sabre's balanced scorecard consists of: • Growth (share of the market); • Profitability (costs versus revenue generated for each travel booking); • Process improvement (cycle time, or the time required to order and install customer hardware); and • Customer satisfaction (assessed with survey data collected from actual customers). Sabre makes extraordinary efforts to monitor each team's customer satisfaction including setting annual customer service goals. Managers collect survey data quarterly from each team's external customers. Sabre posts team customer service scores on its intranet. Members know exactly where their team stands relative to other teams. Closely monitoring client satisfaction helps Sabre create intense customer service focus. Moreover, virtual team leaders have an external, albeit subjective, basis for evaluating and rewarding virtual teams. One developmental need for virtual teaming at Sabre is allowing more team-member input in setting customer service goals. Presently, management still controls this decision-making aspect. Another important element of the balanced scorecard is process improvement (i.e., cycle time) or the extent to which team members reduce the time from the placement of an order to the installation of, and training on, a reservation system. Process improvement is an objective measure of team learning at Sabre. Thus, Sabre's teams are 75 responsible for both day-to-day work and continuous improvement of their processes and cycle time. Managers also assess individual team member performance. Sabre tracks objective individual performance measures such as number of installations, development of new business, number of individuals trained to use a system, accuracy of financial contracts, and customer retention. Because these measures are objective and quantifiable, evaluations are much less susceptible to stereotyping, favoritism, or other contaminating perceptual biases. Ironically, virtual team member evaluations may be more accurate than evaluations of face-to-face team members.^' Biases induced by demographic differences such as race, gender, and age can lower both individual performance ratings''^ and team ratings.^^ Contamination of evaluations by perceptual biases is less likely when team leaders have extensive objective data. In addition to objective measures, general managers track subtle virtual team member behavior such as taking leadership roles during virtual team meetings, suggesting internal quality improvement strategies, coaching new team members off-line, and other intangible actions that enhance team effectiveness. General managers monitor electronic discussions, team e-mails, and other team activities. Managers often have more accurate records of individual contributions to virtual teams than they do from informal observations of face-to-face teams. They also supplement their own evaluations with peer evaluations. Using modified 360-degree performance evaluations, general managers collect peer and even customer input electronically. General managers also provide timely feedback and resolve performance problems quickly. Some managers emphasize choosing appropriate communications media to deliver constructive feedback. They recommend using two-way communication channels such as teleconferences so feedback delivery can be followed immediately by interactive problem-solving or counseling sessions. Communicating constructive feedback from a distance forces managers to do more research, collect and analyze all of the relevant facts, and carefully craft messages. Knowing that their ability to resolve misunderstandings is constrained, managers emphasize careful preparation. Moreover, managers identify ahead of time resources that teams can tap in responding to problems. Other managers hold regularly scheduled monthly virtual meetings with each team member. One manager said, "It has to be a two-way street. They have to feel comfortable being honest and straightforward with me even with the bad stuff. I find that communicating electronically overcomes some of the interpersonal 76 Academy of Management Executive issues that might have made me hold back in the past." Communicating constructive feedback from a distance forces managers to do more research, collect and analyze all of the relevant facts, and carefully craft messages* Knowing that their ability to resolve misunderstandings is constrained, managers emphasize careful preparation. Lessons learned: Sabre has built a comprehensive performance review system. The balanced scorecard provides an excellent approach for measuring team effectiveness. Sabre assesses individual contributions to team effectiveness by monitoring electronic communications and systematically collecting data from peers and direct reports using 360-degree assessments. Performance data provide a solid foundation for recognizing and rewarding team and individual performance, developing new training programs to assist virtual teams, and identifying individual team members who can benefit from off-line mentoring and coaching. Managers have developed effective techniques to deliver feedback. As one manager stated, "Most everyone's work is measured in the results they produce and through statistics, and it can all be pulled out systematically for each individual." In the virtual workplace, team members can be judged more on what they actually do rather than on what they appear to be doing. Continuous Improvement at Sabre While we have focused on positive aspects of Sabre's virtual teams, some lessons were learned only after trial and error. For example, managers said that recognizing the sense of isolation among virtual team members took time. Similarly, some general managers reported initial reluctance to provide strong negative feedback virtually, preferring face-to-face meetings. Our research identified a variety of other problems associated with managing and supporting virtual teams at Sabre. General managers still struggle with finding effective strategies for empowering virtual teams. Human Resources continues to fine-tune the content and delivery of virtual team training. Lastly, Sabre still struggles with the appropriate mix of rewards for individual contributions and team performance. While we have emphasized Sabre's positive lessons learned, these lessons were learned after August false starts, stumbles, and reassessments. Moreover, new problems require continuous fine-tuning. Working with similar organizations, we found that this ongoing process of adaptation and adjustment is crucial to maximize virtual team effectiveness. Permanent, inflexible programs or policies such as a rigid structure or one-shot training do not provide adequate support for collaboration such as virtual teaming, in which members themselves are expected to grapple with uncertainty, innovate, and remain flexible. One key to promoting ongoing adaptation at Sabre is communities of practice^" (or what Sabre calls Centers for Excellence) where virtual team members in the North American division and beyond (including Sabre employees in Latin America, Europe, and Asia) share best practices. The Centers for Excellence, started in 2001 in the areas of sales, technology, training, and operations, are designed to provide innovative process solutions from Sabre's global operations. An excellent example is Sabre's 24/7 Learning Cafe. Developed by the technology Center for Excellence, the Cafe is an on-line training scheduler that allows Sabre employees worldwide to schedule and access virtual training modules such as "Coaching and Developing Others" and "New Product Training." More recently, the operations Center for Excellence developed a standardized product-demonstration tool that allows account executives, regardless of their experience level or location, to provide consistent demonstrations to customers of state-of-the-art reservation systems. The Centers for Excellence allow learning to occur within and across Sabre's virtual teams despite the conventional wisdom that process improvements occur in serendipitous face-to-face encounters in traditional work settings. The ability to establish and re-establish equilibrium between changing needs and requirements is a critical competency for organizations utilizing virtual teams. Have Virtual Teams Improved Sabre's BottomLine Results? Most of the interviewees at Sabre agreed that the transition from traditional, functional, face-to-face teams to cross-functional, virtual teams improved customer service. Regarding objective measures, after Sabre introduced cross-functional virtual teams, customer satisfaction ratings improved each year from a low of 68 percent in 1997 to 85 percent in 2000. In addition. North American market share increased from 43 percent in 1997 to 50 percent in 2000. Also during this period. Sabre's number of travel bookings increased significantly each year. While we cannot attribute all of these improvements solely to Sabre's Kirkman. Rosen. Gibson. Tesluk. and McPherson 2002 implementation of virtual teams, clearly customers have responded positively to the changes at Sabre, which include using virtual teams. However, benefits such as improved customer service are only half of the equation needed to assess virtual teaming effectiveness. In determining any return on investment, managers must also assess costs of implementing organizational designs. A central issue for virtual teams is the difficulty of assigning monetary values to costs that are not easily quantified.^^ These may include opportunity costs associated with internal resources devoted to the team. Several researchers have suggested calculating costs of team-member time and support-person time based on average salary and time spent with virtual teams.^s Data regarding costs and benefits of virtual teaming can then be used to compare different virtual efforts using the same metric. The goal of such an analysis is determining if a virtual team's charter is consistent with a company's bottom-line objectives. Given the substantial resources necessary to support virtual teams, these are important questions to address in designing virtual teams and setting them up for success. A central issue for virtual teams is the difficulty of assigning monetary values to costs that are not easily quantified. Virtual Teams: The Way Business Is Evolving Using Sabre's experiences, we have highlighted five critical challenges that organizations face when implementing and using virtual teams. As organizations expand globally, the need to tap the talents, experience, and special skills of employees working in distant locations will increase. Most corporate executives predict that technology-mediated communication and virtual teaming will increasingly replace physical travel. However, creating and supporting virtual teams is a very difficult assignment. Identifying challenges ahead and learning from the Sabre experience represent a good place to start. In the words of one Sabre executive, "I think that virtual teams is inevitably the way business is evolving. We are working hard to get ahead of the curve." Appendix Summary of Methodology Used to Study Virtual Teams at Sabre We selected Sabre's North American Sales and Service, Operations, and Financial Services Division based on its extensive use 77 of virtual teams. Our work with other organizations using virtual teams suggests that Sabre's use is representative and comparable to that ol the typical organization. From Sabre's 65 cross-functional virtual teams, members of a representative subset of 18 teams (i.e., varying by division, region, size of customer, and country) were selected to participate in face-to-face interviews. From those 18 teams, a representative subset of 58 team members (34 percent of the total of 169 members) was interviewed based on variance in job function, demographics, and organizational tenure. We also interviewed the 11 team leaders of these 18 teams (some team leaders led more than one team), six divisional vice presidents who supervised the team leaders, and the executive vice president oi the North American Division (for a total of 76 interviews). No team members or leaders declined to be interviewed. Separate interview protocols were developed for each of the three organizational levels, and all interviewees within each level were asked identical questions. Each of the researchers (i.e., the first four coauthors of this paper) interviewed a roughly equal number of team members and leaders. The researchers had no prior relationship with Sabre or any virtual team members before the two entities entered into a research partnership. The researchers traveled from New York to California and from Quebec to British Columbia to meet virtual team members and leaders. Each interview lasted for one hour. The interviews were tape recorded and in some cases videotape recorded. Full transcriptions of each interview were prepared. All of the researchers participated in the divisional and executive vice president interviews via conierence call. The interviewees were told that Sabre and the researchers had formed a partnership to examine the key drivers of, and significant obstacles to. virtual team effectiveness. All respondents were assured that their interview and survey responses were the property af the researchers and that only summary data would be returned to Sabre. Thus, their responses were confidential. Total time to conduct and analyze the interviews was six months. Sample virtual team member interview questions included: • Describe the main differences between the teams you have worked on before in this company and your current virtual team. • Describe the special challenges you have encountered working virtually. • If you were involved in the hiring of a new member of your virtual team, what characteristics would you look for? • What specific behaviors has your team leader (general manager) demonstrated that particularly help the functioning of your virtual team? Regarding data analysis, all researchers read each interview transcript and created their own categories and themes. Each researcher then collected representative comments under each category. The researchers then met face-to-face to compare the categories. Discrepancies were resolved, and the researchers agreed upon a consensus set of categories. Representative comments were then collated by category. This process allowed us to retain only those themes that were represented by a large number of respondent comments. Endnotes ' Far more information about global work team implementation, see Kirkman, B. L., Gibson, C. B., & Shapiro, D. L. 2001. "Exporting" teams: Enhancing the implementation and effectiveness of work teams in global affiliates. Organizafionai Dynamics. 30(1): 12-29. ^ Lipnack, J., & Stamps, J. 2000. Virtual teams: People working 78 Academy of Management Executive across boundaries with technology. 2"'^ ed. New York: Wiley. See also, Duarte, D. L., & Snyder, N. T. 2001. Mastering virtual teams. 2"'' ed. San Francisco: Jossey-Bass. ^ Maznevski, M. L, & Chudoba, K. M. 2000. Bridging space over time: Global virtual-team dynamics and effectiveness. Organization Science, 11(5): 473-492; and Montoya-Weiss, M. M., Massey, A. P., 8f Song, M. 2001. Getting it together: Temporal coordination and conflict management in global virtual teams. Academy of Management /ournai, 44(6): 1251-1262, for issues involving virtual teams composed of members from different countries. '' Chase, N. 1999. Learning to lead a virtual team. Qualify, 38(9): 76.; and Geber, B. 1995. Virtual teams. Training, 32(4): 36-40; and Bell, B. S.. & Kozlowski. S. W. J. 2002. A typology oi virtual teams: Implications for effective leadership. Group & Organization Management, 27(1): 14-49. ^ Gibson, C. B., & Cohen. S. G., forthcoming. VirtuaJ teams that work: Creating the conditions for virtual team effectiveness. San Francisco: Jossey-Bass. ^ See Cooper, R. C. 1997. Telecommuting: The good, the bad, and the particulars. Supemsfon, 57(2): 10-12; McCune, J. C. 1998. Telecommuting revisited. Management Review, 87(2): 10-16; and Pearlson, K. E., 8f Saunders, C. S. 2001. There's no place like home: Managing telecommuting paradoxes. The Academy of Management Executive. 15(2): 117-128, for more infonnation on telecommuting. ' Cascio, W. F. 2000. Managing a virtual workplace. The Academy of Management Executive. 14(3): 81-90; Kurland, N. B., & Bailey, D. E. 1999. Telework: The advantages and challenges af working here, there, anywhere, and anytime. Organization a] Dynamics. 28(2): 53-67; and Kurland, N. B., & Egan, T. D. 1999. Telecommuting: Justice and control in the virtual organization. Organization Science, 10(4): 500-513. ^ Pearlson & Saunders, op. cit. ^ Elkins, T. 2000. Virtual teams: Connect and collaborate. HE Solutions. 32(4): 26-32. '" Townsend, A. M., DeMarie, S. M., & Hendrickson, A. R. 1998. Virtual teams: Technology and the workplace of the future. The Academy of Management Executive. 12(3): 17-29. " Cascio, op. cit. '^ Maznevski & Chudoba, op. cit. '^ Boudreau, M. C. Loch, K. D., Robey, D., & Straud, D. 1998. Going global: Using information technology to advance the competitiveness of the virtual transnational organization. The Academy of Management Executive. 12(4): 120-128; and Maznevski & Chudoba, op. cit. ^* Bunderson, ]. S., & Sutcliffe, K. M., in press. Comparing alternative conceptualizations of functional diversity in management teams: Process and performance effects. Academy oi Management journal: Dougherty, D. 1992. Interpretive barriers to successful product innovation in large firms. Organization Science. 3(2): 179202; Lovelace, K., Shapiro, D. L., & Weingart, L. R. 2001. Maximizing cross-functional new product teams' innovativeness and constraint adherence: A conilict communication perspective. Academy of Management Journal, 44(4): 779-793; Ancona, D. G., & Caldwell, D. F. 1992. Demography and design: Predictors of new product team performance. Organization Science, 3(3): 321-341; and Parker, G. M. 1994. Cross-Zunctionai teams: Working with allies, enemies, and other strangers. San Francisco: Jossey-Bass. '^ Maznevski & Chudoba, op. cit. '^ Gibson & Cohen, op. cit. " See, far example, Coutu, D, 1998. Trust in virtual teams. Harvard Business fleview, 76(3): 20-21; Jarvenpaa, S., & Leidner, D. 1999. Communication and trust in global virtual teams. Organization Science. 10(6): 791-815; Jarvenpaa, S. L., Knoll, K., & Leidner. D. E. 1998. Is anybody out there? Antecedents of trust in global virtual teams. Journal of Management Information Systems, 14(4): 29-64; Platt, L. 1999. Virtual teaming: Where is August everyone? Journal of Quality & Participafian, September/ October: 41-43.; Cascio, op. cit.; and Townsend, op. cit. '^ O'Hara-Devereaux, M., & Johansen, B. 1994. Global work: Bridging distance, cuJture, and time. San Francisco: JosseyBass; Hart, P., & Saunders, C. 1997. Power and trust: Critical factors in the adoption and use of electronic data interface. Organization Science, 8(1): 23-42; and Sheppard. B. H., & Sherman, D. M. 1998. The grammars of trust: A model and general implications. Academy of Management fieview, 23(3): 422-437. '^ Handy, C. 1995. Trust and the virtual organization. Harvard Business Review. 73(9): 40-48. ^° Cascio, op. cit., 83. ^' Jarvenpaa, et al.. op. cit., 30. ^^ For a more complete discussion of trust, see Mayer, R. C. Davis, J. H., & Schaorman. F. D. 1995. An integrative model of organizational trust. Academy of Management Review. 20(3): 709-734. For a discussion about the impact of trust on cooperation and teamwork, see Jones. G. R., & George, J. M. 1998. The experience and evolution of trust: Implications ior cooperation and teamwork. Academy of Management Review. 23(3): 531-546. ^^ Mayer, et al., op. cit. ^^ Geber, op. cit.. 39. ^^ Gibson, C. B., & Manuel, J.. forthcoming. Building trust: Effective multicultural communication processes in virtual teams. In C. B. Gibson & S. G. Cohen (Eds.), VirtuaJ teams that work: Creating the conditions for virtual team effectiveness. San Francisco: Jossey-Bass. ^^ For more on creating team charters and other team-development tools and interventions, see Fisher. K., Rayner. S., & Belgard. W. 1995. Tips for teams. New York: McGraw-Hill. ^' The nation of process gains and losses is explained in more detail in J. R. Hackman's work. See Hackman, J. H. 1987. The design of effective work teams. In J. W. Lorsch (Ed.), Handbook of organizational behavior. Englewood Cliffs. NJ: PrenticeHall: 315-345: and Hackman, ]. R. (Ed.). 1990. Groups that work (and those that don't). San Francisco: Jossey-Bass. ^^ Cascio, op. cit., 84. ^^ Kurland & Bailey, op. cit., 59. ^° Geber. op. cit., 39. ^' Alexander, S. 2000. Virtual teams going global. Infowoild, 22(46): 55-56. ^^ Ancona & Caldweil, op. cit. See also, Lichtenstein, R.. Alexander, J. A.. Jinnett, K.. & Ullman, E. 1997. Embedded intergroup relations in interdisciplinary teams: Effects on perceptions of level of team integration. Journal of Applied Behavioral Science. 33(4): 413-434; and Timmerman, T. A. 2000. Racial diversity, age diversity, interdependence, and team performance. Smaii Group fiesearch, 31(5): 592-606. 3^ McLeod. P.. Baron, R., Marti. M., & Yoon, K. 1997. The eyes have it: Minority influence in face-to-face and computer-mediated group discussion. Journal of Applied Psychology. 82(5): 706-718. =^Gallupe. R. B.. Bastianutti, L. & Cooper. W. H. 1991. Unblocking brainstorms. 7ournaJ of Applied Psychology. 76(1): 137142. See also, Lam, S. S. K.. & Shaubroeck, J. 2000. Improving group decisions by better pooling information: A comparative advantage of group decision support systems. Journal of Applied Psychology. 85(4): 565-573. ^^ Cascio. op. cit., 82, 84. ^^ Handy, op. cit.. 4. ^•^ Kurland 8E Bailey, op. cit., 61. 3^ Kurland & Egan. op. cit., 502. ^^See Caproni. P. J. 2001. The practical coach: Management skills lor everyday life. Upper Saddle River. NJ: Prentice-Hall (see specifically Chapter 8. entitled "Diverse teams and virtual teams: Managing differences and distances": 247-287). *" Emery, F. E. 1959. Characteristics of sociotechnicai systems. London: Tavistock. 2002 Kirkman. Rosen. Gibson. Tesluk. and McPherson •" Geber. op. cit., 36; and Cascio. op. cit., 82. ^^ Philips. J. M. 1998. Effects of realistic job previews on multiple organizational outcomes: A meta-analysis. Academy of Management Journal. 41(6): 673-690. •*^ Joinson, C. 2002. Managing virtual teams. HffMagazine. 47(6): 69-73. ^'' Geber. op. cit.. 40. ^^ Townsend. et al., op. cit., 26. ••^ HaywQod. M. 1998. Managing virtuai teams." Practical techniques for high-technology managers. Boston: Artech House. ^'Handy, op. cit., 3, 4. ^^ Kuiland & Bailey, op. cit., 59. ••^ Cascio, ap. cit.. 87. ^"For more information on the balanced scorecard. see: Kaplan, R. S.. & Norton, D. P. 1996. Using the balanced scorecard as a strategic management system. Harvard Business Review. 74(1): 75-85. ^' Alexander, op. cit. ^^ See, for example, Kraiger. K., & Ford, J. K. 1985. A metaanalysis of rater race effects in performance ratings. Journal of Applied Psychology. 70(1): 56-65. See also, Pulakos, E. D.. Oppler, S. H., White, L. A., & Borman, W. C. 1989. Examination of race and sex effects on performance ratings. Journal of Applied Psychology. 74(5): 770-780. ^^ Baugh. S. G., Graen. G. B. 1997. Effects of team gender and racial composition on perceptions of team performance in cross-functional teams. Group & Organization Management. 79 22(3): 368-383. See also, Kirkman, B. L., Tesluk, P. E.. & Rosen, B., in press. The impact of demographic heterogeneity and team leader-team member demographic fit on team empowerment and effectiveness. Group & Organization Management. ^*' Brown, J. S., & Duguid, P. 1991. Organizational learning and communities of practice: Toward a unified view of working, learning, and innovation. Organization Science. 2(1): 40-57. " See Levenson, A,, & Cohen, S. G., forthcoming. Meeting the periormance challenge: Calculating ROI for virtual teams. In C. B. Gibson & S. G. Cohen (Eds.), VirtuaJ teams that work: Creating the conditions for virtuai team e//ectiveness. San Francisco: Jossey-Bass; and Levenson, A., iorthcoming. ROI and strategy for teams and collaborative work systems. In M. Beyerlein, C. McGee, G. Klein. L. Broedling, & J. Nemiro (Eds.). The collaborative work systems Held book. San Francisco: JosseyBass/Pfeiffer, for more information about assessing the costs and benefits of virtual teaming. ^^ Levenson and Cohen, op. cit. Simon McPherson is a project manager for Sabre Inc. He implemented and developed high-performance work teams for Sabre's Sales & Service. Installations, and Financial Services work groups. In addition to implementing virtual teams, he oversaw the breakdown of three distinct silo departments into a single customer-centric department and the collocation of over 200 customer support personnel. Contact: simon. mcpherson@sabre.com. Bradley Kirkman is associate professor oi organizational behavior in the DuPree College of Management at the Georgia Institute of Technology. He received his Ph.D. in organizational behavior from the University of North Carolina at Chapel Hill. His research interests include work-team effectiveness, cross-cultural management, organizational justice, and organizational change. Contact: brad.J:irJrman@ mgt.galech.edu. Benson Rosen is Hanes Professor oi Management in the Kenan-Flagler Business School at the University of North Carolina at Chapel Hill. He received his Ph.D. in social and industrial psychology from Wayne State University. His research interests include team development, career management, and international ethics. He is an Academy of Management Executive editorial board member. Contact: ben r03en@unc.edu. Cristina Gibson holds a joint position as associate professor at the Center for Effective Organizations and the Marshall School of Business at the University of Southern Caliiornia. She received her Ph.D. in organizational behavior iram the University of California-Irvine. Her research interests include team effectiveness and international management. She is an Academy of Management Journal editorial board member. Contact: cgibson@inarshaii. usc.edu. Paul Tesluk is assistant proiessor of management and organization at the Robert H. Smith Schaol of Business. University of Maryland. He received his Ph.D. in industrial/organizational psychology from Pennsylvania State University. His research interests include knowledge management in teams, organizational innovation, and management/leadership development from work experience. Contact: ptesiuJc@ rhsmith.umd.edu. Saudi Electronic University College of Administrative and Financial Sciences E-commerce Department Student Name: Student ID: Course Title: Introduction to EManagement Course Code: ECOM 201 Academic Year/ Semester: 2021/2022- CRN: 2nd Semester Instructor Name: Student Grade: Grade Level: Individual Seminars In this assignment you need to do the following: 1. Select an article from the Saudi Digital Library related to the course content a. You can refer to the course syllabus for help. 2. Read the article and understand the key points 3. Write a summary of the article (250-300 words) a. Use your own words. Do not copy and paste from the article. b. Your summary must be a stand-alone piece of work c. Be clear and up to the point. d. State the main points of the article. e. Discuss how they are related to the local Saudi virtual management styles and procedures. 4. Upload it to the assignment link on Black Board a. Use this template 5. Deliver a brief presentation (5-10m) on the article. a. Do this in class. b. Be open to questions from the audience c. It should be done during weeks 6 & 7 Guidelines for the assignment: ▪ Make sure to include the cover page with all information required. One mark will be deducted if there is no cover page ▪ This is an individual assignment. ▪ Use font Times New Roman, 12 font sizes ▪ Use 1.5 line spacing with adjust to all paragraphs (alignment). ▪ Use the footer function to insert page number. ▪ Ensure that you follow the APA style in your project and references. ▪ The minimum number of required references is 1. ▪ Your report length should be between 300 to 350 words in total. ▪ You must check the spelling and grammar mistakes before submitting the assignment. ▪ Up to 20% of the total grade will be deducted for providing a poor structure of assignment. Structure includes these elements paper style, free of spelling and grammar mistakes, referencing and word count. ▪ Assignment must be in Word format only NO PDF ▪ Your file should be saved as Word doc [Your Name] [CRN] ECOM201 - Assignment 1.doc [Example]: Answer: Article name: Author(s): Journal: Year: Link: Article Summary (250-300 words): Reference (APA): Academy ol Management Executive, 2002, Vol. 16, No. 3 Five challenges to virtual team success: Lessons from Sabre, Inc. Bradley L Kiikman, Benson Rosen, Ciistina B. Gibson, Paul E. Tesluk, and Simon O. McPheison Executive Summary Advances in communications and information technology create new opportunities for organizations to build and manage virtual teams. Such teams are composed of employees with unique skills, located at a distance from each other, who must collaborate to accomplish important organizational tasks. Based on a comprehensive set of interviews with a subset of team members, team leaders, general managers, and executives on 65 virtual teams at Sabre, Inc.—an innovative organization in the travel industry—we identify five challenges that organizations can expect to encounter in establishing, maintaining, and supporting virtual teams, e.g., building trust, cohesion, and team identity, and overcoming isolation among virtual team members. Both leaders and members of virtual teams face particular difficulties in selecting team members who have the balance of technical and interpersonal skills and abilities required to work virtually and in evaluating the performance of individuals and teams working in virtual space. Examination of Sabre's strategies for coping with each challenge should be instructive to other organizations using or considering virtual (earns. Off the coast of Mexico, a team of five people struggles to stay afloat on a raft they assembled on shore. Waves crash around them, their raft begins to tip over, and two members fall into the sea. A third member helps the submerged members back onto the raft. Finally, the raft is righted and the team paddles furiously onward. While this might sound like a scene from a reality TV show, these events are actually part of teambuilding at Sabre, Inc. for its virtual teams. The crashing waves symbolize unanticipated and rapid change, the construction of the raft from everyday materials demonstrates creativity and resourcefulness, and the entire exercise shows that you either sink or swim as a team. Just one year earlier, virtual team members at Sabre had spent three days in face-to-face team-building activities designed to launch a division-wide virtual teams initiative. This raft exercise reinforced the knowledge and skills learned in earlier teambuilding. We examine the challenges of building and managing virtual teams and present five important lessons learned from Sabre's experience. Virtual Teams: Origins and Trends While work teams were used in the U.S. as early as the 1960s, the widespread use of teams and quality circles began in the Total Quality Management movement of the 1980s. In the late 1980s and early 1990s, many companies implemented self-managing or empowered work teams. To cut bureaucracy, reduce cycle time, and improve service, line-level employees took on decision-making and problemsolving responsibilities traditionally reserved for management. By the mid-1990s, increasing numbers of companies such as Goodyear, Motorola, Texas Instruments, and General Electric had begun exporting the team concept to their foreign affiliates in Asia, Europe, and Latin America to integrate global human resource practices.' Now, due to communication technology improvements and continued globalization, virtual teams have increased rapidly worldwide. Virtual teams are groups of people who work interdependently with shared purpose across space, time, and organization boundaries using technology to communicate and collaborate.^ Virtual team mem67 Academy of Management Executive bers may be located across a country or across the world, rarely meet face-to-face, and include members from different cultures.^ Many virtual teams are cross-functional and emphasize solving customer problems or generating new work processes.'' Virtual work allows organizations to combine the best expertise regardless of geographic location.^ Due to employee travel restrictions resulting from the 2001-2002 recession and the events of September 11, 2001, virtual teaming will likely increase exponentially. This increase will parallel that of telecommuters, or employees who work from remote locations and communicate electronically.^ Two out ot three Fortune 500 companies currently employ telecommuters.' The United States Labor Department reported that 19 million people worked from home online or from another location in 2001,^ and the GartnerGroup estimated that by 2002 over 100 million people worldwide will be working outside traditional offices.^ While many organizations have embraced virtual teaming, little is known, beyond anecdotal evidence and conventional wisdom, about what makes virtual teams work or even how they differ from face-to-face teams. Virtual teaming -will likely increase exponentially. Anthony Townsend and colleagues (August 1998) first discussed in detail the concept of virtual teams for The Executive.^^ The authors defined virtual teams, specified why they have become popular, discussed communication technologies, and provided preliminary guidelines for building virtual teams. More recently in The Executive (August 2000), Wayne Cascio examined virtual workplaces more generally, discussing the disadvantages of virtual teaming and methods for training team members and leaders." Building on and extending this work, we examined specific challenges encountered by virtual team leaders and members. Much of the previous virtual-teams research emanated from anecdotal evidence or case studies.'^ We comprehensively studied a large number of cross-functional virtual teams in a high-technology company to challenge the prevailing conventional wisdom regarding virtual teams. To extract important lessons, we drew on our experiences with 65 cross-functional virtual teams at Sabre. Sabre, Inc: Business at Internet Speed In 1960, Sabre began as the computerized reservation system of American Airlines and is the inventor of August electronic commerce for the travel industry. In March 2000, Sabre spun off from AMR (the parent company of American Airlines) and became 100 percent publicly traded. Headquartered in Dallas/Fort Worth, the company currently employs over 6,000 employees in 45 countries. Sabre processes over 400 million travel bookings annually (40 percent of the world's travel reservations) and is used by over 60,000 travel agents in 114 countries. Sabre also owns Travelocity.com, the world's leading online business-to-customer travel site; and it owns GetThere, the world's leading supplier of Web-based business-to-business travel reservation systems. Sabre's competitors include: Galileo (owned by Cendant Corporation), Worldspan (owned by Delta, Northwest, and TWA), and Amadeus (majority owned by Air France, Iberia, and Lufthansa). Major competitors oi Sabre's Travelocity.com include Expedia.com and Orbitz.com. Our research focused on executives, vice presidents, and virtual team leaders and members in Sabre's North American Sales and Service, Operations, and Financial Services Division. Sabre's 65 virtual teams are cross-functional, based in the U.S. and Canada, and often span several states or provinces. With over 500 members, they average about eight members per team. Virtual team members are located in both field and employee home offices and in the company's Texas headquarters. On each team, account executives sell reservation systems, field service technicians install systems, training representatives teach travel agents how to use the systems, installation operations coordinators schedule installation and training appointments, account management specialists handle customer billing and collection, and customer service representatives field inquiries throughout the process. Clearly, Sabre's virtual teams are highly interdependent. To coordinate activities, members communicate using e-mail, telephone, video conferencing, and Web-based conferencing. Sabre switched from functionally based work teams to market-based, cross-functional virtual teams in 1999 to integrate different functions to improve customer responsiveness. Functional silos were limiting Sabre's ability to satisfy customers. For instance, from 1996 to 1998, Sabre's North American customer satisfaction ratings fell from a 79 percent satisfaction rate to 68 percent, while competitor ratings remained unchanged. The purpose of virtual teams was to strengthen customer focus to increase productivity, market share, and profitability. Cross-functional virtual teams represent a specific, albeit common, type of virtual team. Indeed, there are many types of virtual teams, each presenting unique management challenges. For ex- 2002 Kirkman, Rosen. Gibson. Tesluk, and JVlcPherson ample, global virtual teams must overcome cultural and communication barriers.'^ Virtual teams assigned to accomplish specific projects often have high start-up costs. Some research on crossfunctional teams has shown that as teams become more cross-functional, both positive team processes (e.g., information sharing, team task and strategy agreement, and flexibility) and outcomes such as unit performance decrease.''' The challenge for Sabre was to recognize obstacles confronting teams that are both cross-functional and virtual. Lessons learned from Sabre should apply to cross-functional virtual teams and other virtual teams that create synergies based on the speciai expertise of members in distant locations. Functional silos were limiting Sabre's ability to satisfy customers. The Dimensions of Virtuality Sabre's virtual teams are only moderately, and not completely, virtual. A virtual relationship is one that is primarily conducted using technology, but virtual teams vary in the degree to which this is the case.^^ In fact, degree of virtuality is a complex multidimensional construct.'^ One dimension of virtuality is the proportion of time that team members work face-toface compared to virtually. A second dimension is the proportion of team members at any one location. Along this dimension, the highest degree of virtuality would be when all members work at distant locations. A third dimension is the proportion of time members devote to a virtual team compared to time spent on other duties. In some instances, individuals may work only a few hours a month on a virtual team project, while devoting most of their time to activities unrelated to virtual work. Sabre's virtual teams meet face-to-iace only once a year. While about 15 percent of the members work at the sam...
Purchase answer to see full attachment