Doing international business demands that managers develop a good comprehension of the implications of culture on the performance of their businesses. For example, managers should always understand that works culturally in one nation may not work in other regions. Most importantly, it should be noted that globalization has altered the way that businesses engage clients and the communities in which they operate. The effects of culture on the operations of firms around the world imply that managers who do not have multicultural competence would definitely struggle with their attempts to realize optimal result. China has been studied for some time now, especially concerning its corporate culture. This paper contributes to the volume of literature on the nation’s culture and its interaction with business. Precisely, the essay reports in the things that foreign managers should be aware of concerning the Chinese corporate landscape, what they should research, the expectations of employees about their leaders, and the cultural and business norms that should be considered. The author finds a range of ideas in relation to the scope of the paper, but they note particularly that foreign managers should focus on the implications of business etiquette if they have to realize success.
Things that Managers should be Aware of in the Chinese Corporate Landscape
One of the most significant issues in international business management is the implications of social etiquette and business culture. In the context of China, it is important noting that the concept of ‘face’ is a primary aspect. According to Chung (2011), face refers to a mixture of self-esteem, social role, and public perception that has the ability to help in the construction or to destroy meaningful relationships. Foreign managers may give their face through honoring invitations, attending meetings, as well as depicting sensitivity to Chinese culture. Contrarily, managers may lose their face when they insult others publicly, turn down invitations, or when they behave inappropriately, such as when they fail to control their temper. In the Chinese contexts, gifts should be approached with caution since they are perceived as unprofessional in the official context. It is also notable that outsiders may also impress with their understanding of the local norms, their acknowledgement of hierarchy, offering gifts, using designations when addressing others,—such as when they deal with state representatives—and appreciating meals. The depiction of the levels of awareness about the cultural nuances is an illustration of sincere interest and respect.
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As much as business managers should be aware of the contributions of etiquette and corporate culture, Chinese business persons show considerable levels of respect for cultural differences, and they do not anticipate foreigners to customize to their norms fully. According to Gallo (2011), Chinese people are pragmatic, which means that they are always willing to transact with others provided they have what is needed for business. The primary idea in the interaction is the need for the managers to develop a feeling of mutual respect with associates.
What the Managers Should Research and the Strategies to Apply
The implications of business and social etiquette indicate that managers should research several issues. For instance, it is important for the managers to research about the procedures and ways of exchanging greetings. Another significant issue that managers should research is the art of conversation, especially the meanings of some phrases, words, and gestures. The art of conversation Business meetings and meals also have significance in the development of face. Precisely, managers should study the dress code, the implications of time, business cards, the use of professional titles, the meaning of color, presents, and other aspects of meetings. In Chinese settings, managers should also understand the meanings of numbers, which is why they should study their significance. Conducting a cultural anthropological study, such as an ethnographic research, would be one of the most suitable methods of researching the implications of culture on business practices in China.
What the Employees Expect from their Leaders
A study conducted by the Harvard Business Review on over thirty large private corporations for five years found important insights into the scope of corporate management in China. The study revealed that most of the companies depict trading mentalities that value high asset turnover and proper timing over perfection, which is a Confucian principle for simple organizational layouts ( Hout & Michael, 2014 ). Accordingly, everyone within the company is expected to report to the top, have deep fear that stemmed from China’s past economic instability and too much debt, and possess skills of dealing with different levels of the state. The firms are further defined by their high aspiration and openness to trying different techniques and practices of management. Because of the different approach to management, employees expect their leaders to exhibit a set of skills that would endear them to the culture of the nation.
Despite several years of experience operating in China, most companies continue struggling with the identification and selection of executives who would be effective in dealing with employees. Consequently, comprehending what employees expect from their managers in the workplace is critical for the development of amicable working relationships. One of the most fundamental ideas for consideration is that Chinese workers expect their managers to be aware of the influence of the political environment on their businesses (Wolff, 2008). In elaborating the identified idea, the cited author reports that being effective in the Chinese business atmosphere implies the realization that everything surrounding business is political. The employees expect that their executives to grasp the social and political trends, which would in positioning their strategies as well as communications within such landscape. One of the most suitable examples is that the managers should reframe their corporate social responsibility strategies to ensure the promotion of the harmonious society since it is a government priority (Wang, 2014).
Still in line with the idea of political harmony, employees anticipate their managers to develop nonmarket business strategies alongside the usually market strategies. While developing the nonmarket strategies, managers should consider plans that would help in the construction of networks that intersect with customers, suppliers, business partners, and other stakeholders within the public domain. Consequently, the employees expect that their managers become intuitive, receptive to learning from their Chinese partners, which would cause them to start thinking and behaving differently—in ways that would communicate their commitment to supporting the political environment of the country.
Employees in Chinese companies always anticipate that their managers pay more individual attention to colleagues and staff. While this idea is common to most other cultures around the world, it is more expressed in China (Chen, 2001). For instance, some of the managers in the nation report that they have been forced to do their reports and emails in the evening since they commit most of their day time talking to employees and meeting external corporate stakeholders. It would mean that employees expect their managers to comprehend that leadership is a contract sport in China. Senior managers mostly succumb to time pressures, which causes them to appoint the wrong candidates in charge of their businesses.
One example is that of a European retailer that chose a manager to be head of its operations in China since he had had an excellent record at home despite lacking experience outside Europe in addition to being a poor listener. Since Chinese employees and clients expect corporate leaders to develop friendly connections with them, the manager realized shaky relationships with its partners. Resultantly, many employees resigned since they were seeking a manager and employer who would be in tandem with their demands and expectations. The complication was that the employees thought that the manager did not care about their ideas and observations, that the manager expected the staff only to follow directives, and that they did not care about the type of feedback that they gave. The manager was replaced after sometime, but the company closed its operations within eighteen months because of the damage that they had suffered during the manager’s reign. The example given in this case indicates that managers who do not understand cultural implications on the performance of organizations may struggle.
Employees in the Chinese context expect their managers to structure their organization simply. Corporate leaders in the country are notorious in their control of companies from the top. Nevertheless, the managers are also known for their high levels of decentralization that assists them in responding to shifts in the market dynamics alongside the addition of new business lines (Chung, 2011). The need for companies to adapt to situations in China is constant, and the employees anticipate that their managers would keep pace with both the market and variations in the creation of each of the provinces in country and the power of local officials. The statement pays more tribute to the fact that politics plays a significant role in shaping corporate strategies. The fact that the differences could be stark suggests that Chinese firms strive to create structures that would give their firms total autonomy, which further drives employee notification.
Workers in the Chinese context, as mentioned, expect that their managers consider a great deal of decentralization and flat structures. For instance, one of the dominant home appliance makers in the country, Haier, has thousands of minicompanies, and each of them report to the chairman (De Mente, 2013). The cited study indicates that the company does not have pure cost centers, and that each of the finance department is independent, which ensures that it offers advisory and financial services at a fee. As opposed to the notion held by western firms that having multiple lines protects them from many risks, including uneven standards of products or practices of hiring, while enabling large scale efficiencies and learning benefits, a significant proportion of the Chinese CEOs eschew the thought (Gallo, 2011). Consequently, the managers chase top line growth regardless of the costs associated the process, and they believe in the development of structures that would enable them to realize their objectives. The employees, therefore, would always tend to use speed and improvisation that would be coupled with low costs that are underpinned by economies of large scale operations.
Furthermore, employees in the Chinese context would always anticipate their managers to make decisions in ad hoc manners and that they become micromanagers. The managers would always want to look for entrepreneurial employees that would always be prepared for the rough-and-tumble, and who would always to be top-of-the-class recruits (Wang, 2014). Furthermore, the employees that the managers seek would be those who gravitate towards state-managed corporations. The employees would often expect that their managers operate in two time frames, which entails working within the present business model while at the same time preparing to grow the size of their firms in the near future. While managers in the US and Europe would always work using the same approach, those in China focus on the strategy through the appointment of two managers where each one of them would deal with one time frame, and they would work autonomously. The managers should then have preference for direct conflict as well as more complex and cooperative structures of management that entail all their reports, but which would work out of their sight.
Workers in the Chinese context would always anticipate their managers to be innovative, which would lead their companies into producing new products at a fast rate, using the extant technologies and to ramp up large scale productions (Wolff, 2008). The idea of producing new products at a fast rate could be an explanation to why China has emerged to dominate the market in some industries, such as the silicon-based solar panels and others. It is reported that the capacity of Chinese companies to produce new products at a fast rate has roots in the heritage of the nation. Most of the companies in the nation start by producing goods that they do not design, which means that they always learn how to prototype swiftly to meet the demands of the buyers as well as to adapt product designs to utilize different raw materials in the event that the original ones are unavailable or too expensive. In addition, the managers should always be good at modifying equipment to ensure that the firms make different products while keeping the costs as low as possible.
While striving to attain the levels of success that is inherent of most of the companies in the country, managers would always be expected to solve problems alongside managing people. One would expect little influence of western management theories on Chinese managers, which is misleading. The managers, for example, would be expected to apply alien theories in their management of operations and tough issues within their organizations. However, the management of people would always demand the application of the Chinese tradition and culture (Schlevogt, 2002). Employee behavior in the country is influenced by two factors, which are the distal and proximal factors. The proximal factors include the adopted styles of leadership, structure of the organization, and the goals of the companies. The proximal factors imply that employees would always anticipate their managers to set direction for the organization, which is common with western ideologies in corporate management. Contrarily, in the Chinese context, distal factors constitute Chinese culture and tradition. It would be wrong to suggest or to perceive that Chinese culture has a direct influence on the manner in which employees behave in the workplace. The idea in the argument is that Chinese tradition and culture shapes the styles of leadership and the accompanying practices. The employees would always anticipate their leaders to strive for interpersonal harmony, which has been emphasized in preceding sections.
It would be important to elaborate on the significance of harmony in Chinese firms. The notion may be taken to mean that managers would always be striving to attain harmony at the management and leadership levels as well as among the employees. While the idea is a traditional practice—harmony was sought at the management and employee levels in the past—the practice has since moved. Precisely, it is thought by modern managers that when the conventional idea of harmony would deter productivity and performance, which is why contemporary managers do not emphasize harmony among the employees as they do at the management levels.
The Business and Cultural Norms for Consideration
Although it has been mentioned in this paper, it is important for foreign managers to understand the Chinese business and cultural norms. The business and cultural norms for consideration may be grouped into four categories, which are the business mentality, greetings and conversations, business meetings and meals, and the significance of numbers. Concerning the category of the business mentality of Chinese firms, it should be understood that Chinese people anticipate associates to be prepared for deals, which means that foreign managers should always have as much information about their companies or products as possible if they are to impress. Furthermore, a new manager should always comprehend the value of small talk in the Chinese setting because it is a custom before major events, including meetings, in the country. Still on the category of business mentality, it should be considered that Chinese people prefer the creation of strong relationships with associates before they close a business deal, which means that foreign managers would have to meet with them severally before they finalize their business deals (Chen, 2001). Because of the value of relationships, it should be understood that Chinese associates appear to prolong negotiations beyond the agreed deadline before they make their decisions because they wish to gain some advantage. It should also be understood the working hours run from 8: 00 am to 5:00 pm with lunch breaks running from 12: 00 noon to 2:00 pm (De Mente, 2013). Furthermore, the cited literature indicates that it is best for people to schedule appointments with Chinese associates between April and June and between and October.
Concerning business meetings and meals, it is imperative noting that Chinese people enter meetings in a hierarchical order, which means that the first persons to enter the rooms are the heads of the delegation. Official dress code is also highly observed—conservative suits are the most preferred while bright colors are always inadequate. Foreign delegations are expected to leave the room before their Chinese counterparts at the end of the meetings. During the meetings, delegations address each other using their titles and exchange business cards. The cards are given using two hands, and the color in which they are printed has significant implications on their perception. Foreign managers are advised not to bring gifts with them into the meetings since it may be considered bribery (Schlevogt, 2002). During meals, foreign managers and delegations should wait until they are seated, and they should seat in a hierarchical manner. Meal times are not also appropriate for discussions on business deals. One should not turn out an invitation to meals or drinks because they are good for relationship building.
On greetings and conversations, it is important to note that handshakes are common. However, one should wait for advances from their Chinese counterparts before they exchange greetings. The greetings should be exchanged using people’s titles in addition to their last names. During conversations, Chinese people would always appreciate if foreign agents used some words from Chinese, which explains the importance of comprehending their meanings. As much as the political climate influences the way corporations formulate their policies, it is not healthy for a foreign agent to engage Chinese counterparts on political topics. Additionally, it is prudent to use appropriate body gestures and movements, which also includes maintaining the right body posture during conversations.
Lastly, one should always understand that numbers have significance in Chinese culture, and that an appropriate use would contribute to the creation of face. For instance, number eight is perceived as luckiest number in the culture of the country, and its use during the discussions would represent good will (Kermeliotis, 2011). Furthermore, number six is viewed as a blessing, and it could be taken to mean progress and smoothness while four is a taboo because of its implications of death. Seventy-three means funeral while eighty-four indicates having accidents.
Conclusion
Cultural competency is among the most important aspects of international management. For instance, for a manager to be successful in foreign culture, they should have the skills of handling people according to the cultural implications. The fact that some managers around the world fail in foreign cultures could be an explanation as to why they should adopt culturally sensitive management skills. Companies seeking to expand their activities to China, for example, would need to be synonymous with the cultural and business etiquette norms that have been found to define the corporate policy landscape. The business and social etiquette, as this paper has reported, place several expectations on the roles of managers from the employees. The most significant expectation of the employees about their managers is that they should formulate policies that obey the social hierarchy as well as those that enhance feelings of harmony among the employees and the community.
References
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