university of limerick limerick, ireland june 29, 2012 framing research institutional effectson the...
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University of LimerickLimerick, Ireland
June 29, 2012
FramingResearch Institutional Effectson the
Central Organization Departmentof theon
ChineseExecutives
ChinesePerformanceManagement
and
IFSAM 11th World CongressManagement Re-imagined
Competent Chinese Cats
University of LimerickLimerick, Ireland
June 29, 2012
Allen D. Engle, Sr.Professor of ManagementEastern Kentucky UniversityRichmond, KentuckyUSA
IFSAM 11th World CongressManagement Re-imagined
Competent Chinese Cats
“It doesn’t matter if it is a white cat or a black cat, a cat that catches mice is a good cat.”
Deng Xiaoping - 1962
v
Competent Chinese Cats
• Chinese society values complex competencies
• The COD’s role in accepting implicitperformance management processes is unknown.
Overview
culturalfunctional
product
• Chinese society values complex competencies
• The COD’s role in accepting implicitperformance management processes is unknown.
• How widespread is the impact of COD on “private sector” MNE performance management processes in China?
Overview
culturalfunctional
product
Competencies as Strategically LinkedEngle, Mendenhall, Powers and Stedham (2001)
• Cultural Competencies• Functional Competencies• Product Competencies
Complex Competencies
It is difficult to measure1. Courage2. Curiosity3. Compassion
Complex Competencies
Instead, we measure these competencies:
• Traditional Confucian Values “Ti” – substance or essence• Chinese Marxist Values
Chinese Cultural Competencies
• Traditional Confucian Values “Ti” – substance or essence• Chinese Marxist Values• Administrative
orEntrepreneurial Values
Chinese Cultural Competencies
¥
• Understanding modern business functions: Marketing Production Distribution HRM
• “Yong” – function or utility
• Self-strengthening effortsof the 19th century duringthe ill-fated “Tonzhi Restoration”
Functional Competencies
Functional
• Understanding productson a micro level
• Understanding productson a more macro level(industry)
Product Competencies
Prod
uct
Conflict
Conflicting Competencies?
• Within the 3 cultural competencies: Entrepreneurial Marxists?
• Between cultural and functional competencies
• Between cultural and product competencies
• Between functional and product competencies
Global Performance Management SystemsEngle, Dowling & Festing (2006)
Implicit Performance Management Systems
Inputs Process Outputs
Person Job Production
Glo
bally
Stan
dard
ized
Loca
llyCu
stom
ized
• In November of 2004 the top executives ofChina Mobile,China Unicom, andChina Telecom were unexpectedly reshuffled
• Two firms were listed on overseas exchanges• One firm was preparing to sell shares offshore
Political competencies at the expense of entrepreneurial or product competencies?
Implicit Performance Management
• More public annual review of party personnel
• Professional merit and moral integrity• Professional achievements• Acceptance by the masses
• Regional gross domestic product
Emerging Explicitness?
Emerging Explicitness?
New Appraisal Forms Include Old Imperial Confucian Cultural Competencies As Criteria
The ultimate goal:A cadre of “Rencai” talented people
• “De” - Morality• “Neng” - Capability• “Qing” - Diligence
• “Ji” - Achievement• “Lian” – Uncorrupt
• Very little information on the COD even though it was founded in 1921
• Even less information on potential institutional effects (Festing, 2006) of COD activities on wider executive assessment processes in China
Institutionalism in China?
If the CPC is “The Epicenter,”How far out do the activities of the COD go to:
• State owned enterprises in critical industries• State owned enterprises in other industries• Collectives – “red hat” firms• Private firms – “Siying” or “Minying”• International joint ventures• MNEs doing business in China
How Far-reaching isCOD Institutionalism?
Cooke (2008) distinguishes between:
• Enterprise Workers
• Government Officials and Civil Servants
Which system applies to Chinese executives?
Dual Systems?
• What impact (if any) does the institutional context of the COD have for the very many Chinese-based outward foreign direct investment assignments going on today?
• Is there an exported Chinese executive culture?
Institutionalism Abroad
• Do Western-based MNEs make adjustments in executive performance management systems going into China?
• Do Chinese-based MNEs make adjustments in executive performance management systems going around the world?
Convergence - Divergence
Interesting issues, but problems remain:
• Assessing knowledgeable actors• Verbalizing competencies• Research designs to measure the institutional
effects of the CODs practices
Finding the cats if they don’t want to be found
Conclusions
• COD activities are a critical aspect of China’s efforts to balance economic development and political stability.
• Understanding unfamiliar, complex, person or process-based performance management systems may assist MNEs in dealing with increasing geographic and cultural distance.
Why Bother?
• Institutional effects on HRM practices may consist of– “Harder” elements:
Legislation– “Softer” elements:
Traditional governance practices, preferences and schemas
• Some GPM systems may be characterized byimplicit, person, or process based models,rather than theexplicit, objective outcome-based modelsprescribed by U.S. experts
Why Bother?
Thank You for Your Attention
University of LimerickLimerick, Ireland
June 29, 2012
IFSAM 11th World CongressManagement Re-imagined
Presentation by Ron Yoder
Questions?Comments?
Allen.Engle@eku.eduwww.people.eku.edu/englea
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