cross cultural insights china

7/29/2019 Cross Cultural Insights China

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MANAGEMENT INSIGHTS

IN CHINA

Cross-Cultural Management


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Agenda

Introduction

Methodology

Facts & History

Cultural Analysis

1. Culture

2. Business

3. Social Interactions

4. Young vs. Old

5. Emic insights

Conclusion & Recommended Readings


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Introducing China

Russel Peters: Chinese vs. Indian


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Your opinion!

What associations come to mind when you think of

China?


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Methodology

Interviews:

Prof. Dr. Barbara KrugSpecial field of research: ChineseEconomy

Dr. Mark GreevenCoordinator of MSc. Chinese Economy &Business

Mr. Tuhong TranFinancial Assistant of China SouthernAirlines

Mr. Ziqian MaoExecutive Sales Representative ChinaSouthern Airlines

Surveys

Academic Articles


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Facts

Total size: 9,596,961 square kilometers 4th largest country in

the world

Population: 1,336,718,015 #1 worldwide

Capital: Beijing

Religion: Officially atheist, however most people are Taoists &

Buddhists, small percentages of Christians & Muslims

Language: Official language is Mandarin, but there are many

dialects

Government Type: Communist state (since 1949)

Economy: 2010 GDP of 9.872 trillion with a growth rate of

10.3% #3 and #8 in the world, respectively


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Chinas Income Disparity


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History

Prehistory: One of the earliest centers of human civilization

Ancient&Imperial history: different kingdoms and dynasties

until 1911 (Qing Dynasty)Modern:

1912-1949 Republic of China

1949-present Peoples Republic of China, Mao Zedong

(CPC), Socialist State, a Democratic Dictatorship


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Culture

Framework

Cultural-

specific

behavior


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Cultural Framework

Collectivism (Conformity)

High Uncertainty Avoidance (Prudance, Conservative)

Large Power Distance (Hierarchy, Authority)

Unity of Masculinity & Feminity (Ying&Yang,

Moderation)

Long term orientation (Continuity)

Being primarly good, past oriented, harmony with nature(fatalism), importance of human relationships (core

values, paternalism)


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Cultural Specific Behavior

Greetings with a handshake and a slight bow

call the person by its first name

accept business card with two hands, as a sign of respect

Proxemics touching is viewed as uncommon

keep minimal eye contact; this can be interpreted as hostile, aggressive orintrusive

Kinesics

uncommon to show emotions wearing a green hat signifies that their wife or sister is a prostitute

Punctualitypunctuality is important and early arrival is appreciated


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Business

Motivation

Teamwork

Leadership

style

Organizational

design


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Motivation

Extrinsic motivation:

Monetary reward: important motivator for younger Chinese

employees

Non-monetary rewards: emphasis on combination of social and work

life (e.g. Dinners, New Years invitations, Living Quarters)

Intrinsic motivation:

Pride: importance of saving face

Family: important value for the Chinese


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Teamwork

Not common in domestic Chinese businesses, therefore

efficiency problems can arise in MNEs

due to social grouping dynamics

Rooted in the Confucian values Social hierarchy

Upward deference to leaders

However, collectivistic values, relationship building and

harmony could facilitate team work


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Leadership style

Ancient style

Commanding the employees

Decision making powerParent- child relationship

Task-Focused and Intellectual leadership styles


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Organizational Design

State intervention: the Communist Party Especially in state owned enterprises (SOE)

Less in private owned enterprises:

more influence of Western style: empowerment

Majority of the firms

Top down approach

Importance of hierarchical order

Non-democratic

Tightly controlled: strict rules and compliance

No empowerment


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Social Interactions


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Social Interactions

Based on a patriarchal model

Results in loyalty and filial piety

High- context culture Importance of family and other close relationships

Indirect communication

Relationships are harder to build but are more meaningful

Polychronic approach of time in personal life


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Social Interactions cont.

Guanxi as a relationship model

Confidence of society in a persons integrity and reputation

Fear of loosing face

Influence of State

Predominance of collectivistic values

Strong influence on education


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Young vs. Old


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The Generation Gap

The younger generation of Chinese managers show moreindividualistic tendencies due to exposure to neweconomic/social forces

Think highly of themselves and strive for money andrecognition

Shift from an egalitarian to a goal-achievement value system

Crossvergence of Western and Chinese attitudes

Engage in job-hopping in search of fast promotions and newskills no loyalty, high turnover

Solution: Create a working environment that enablesestablishment of long-term relationships (emphasizeemotional investment)


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Emic Insights

Business

examples:

1. Acer

2. China

Southern

Airline


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1. Acer - Stan Shih

Chairman emeritus of the Acer Group

Founded the company in 1976, he helped his company

grow from a small start-up to a billion-dollar brand

despite disadvantageous conditionsMain concept: believes in the goodness of every human

being (Theory Y)

Tried to integrate the strengths of both Western and

Eastern management approaches Eastern Values of Seniority and mentor-mentee relationship

Western values of decentralization and empowerment


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Acer cont.

His trust approach allows him to invest in his employees

and thus enable them to fully realize their capabilities

Retention is achieved by creating a business family and

emphasizing on a shared mission Corporate clan culture instead of bureaucracy as the instrument of

corporate governance

Failure not a shame, but an opportunity to learn

Leading by example: fully retired and determined hissuccessor by achievement, not ascription, which is not a

common Eastern approach


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2. China Southern Airlines

Differences between locals and Chinese employees

Division of Employees

Perspectives on Career Possibilities

Impressions on Reward Systems

Hierarchical levels

Centralization

Inflexibility to Change


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Recommended readings

Cross-cultural training and expatriate adjustment inChina: Western joint venture managers (Selmer, 2005)

Doing Business in China: A Framework for Cross-

Cultural Understanding (Osland, 2007)

cross cultural insights china

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