cross cultural management & management of multinational companies

7/31/2019 Cross Cultural Management & Management of Multinational Companies

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CHINESE STYLE OF

MANAGEMENT

SUBMITTED BY:

NIKITA GUPTA

SECTION F

2ND SEMESTER

MBA IB

A1802011407


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Chinese business contacts are mostly referrals; essentially a business

relationship is struck based on another business associate

recommendation.

However, it is common today for cold calls and direct contacts, given the

availability of the internet and the competitive nature of Chinese

businesses. You may source from the internet, trade fairs, catalogues and

brochures, advertisements and approach the Chinese companies directly

through a call or email.

Address a person using his or her family name only, such as Mr. Chen.

Avoid using someone's given name unless you have known him or her for a

long period of time. Formality is a sign of respect, and it is advisable to

clarify how you will address someone very early in a relationship,

generally during your first meeting.

Business interactions between men and women are reserved. After an

initial handshake, avoid body contact such as hugging or kissing on the

cheek.


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Chinese business relationship inevitably becomes asocial relationship after a while. Unlike Westernbusiness relationship which remains professional andperhaps, aloof, even after a long time, Chinesebusiness relationship becomes a social one.

The more you share your personal life, includingfamily, hobbies, political views, aspirations, thecloser you are in your business relationship.

Sometimes, a lot of time is spent discussing mattersoutside of business, but then a lot of time, the otherparty is also making up his mind about your dealbased on how much he sees your personalrelationship with him.


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The greatest difference in organizational

structure between most Chinese enterprise

and Western companies is that there are

parallel management systems in a Chineseenterprise.

1, administrative system

2,leadership structure based around

CCP(Chinese Communist Party)So this system is always referred as Two

Carriages


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Main responsibility of the latter system

(leadership structure based around CCP) is

personnel assignment.

Because of the difficulties associated with

operating the parallel system, differences of

opinion often arise between the two

management systems.


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The function of a SOE: a large family.

Most enterprises in China not only provide their

employee with working opportunities and

salaries, but must also offer a full array ofmaterial necessities, including medical insurance,

housing, childcare, schooling and entertainment.

It plays an extensive role in both the

professional and private lives of their employees.


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The function of a SOE: a large family. So

the Organizational Functions of Chinese

enterprise are like those of a small society.

Therefore a SOE managers work is verycomplex.


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b) The function of a manager must be like a

parent. As the enterprise is regarded as a

large family, the general manager is

naturally assumed as a parent.

Actually, managers are respected as the head

of family by the employees. In return,

managers must take care of employees.


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a) Formal participation systems.

The Workers Congresses are usually permitted

to participate in decisions related to working

conditions, not strategic policy.

b) The role of middle managers in the decision

making process Chinese middle managersusually carry out the managers instructions

obediently.


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c) Collecting information and making final

Decisions Because managers do not fully trust

their employees, they prefer collecting

information themselves rather than fromcolleagues or subordinates.

d) Responsibility for the implementation of

decisions. Chinese managers believe that theresponsibility for implementation of

decisions should not be taken individually


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A specific type of group where an emphasis is

put on some level of member interdependence

and on achievement of common goals

All teams are groups

Some groups are just people assembled

together

Teams have task interdependence whereas

some groups do not (e.g., group ofemployees enjoying lunch together)


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It is important to carry plenty of business cards; if possibleget a translated, bi-lingual version

Use both hands when presenting business cards and ensurethat the writing on the card is facing the recipient

Cards should be received with both hands and placed onthe table in front of you - to immediately put the card inyour pocket or bag is considered rude

When you receive someones card, spend a few secondsreading it. This not only helps you to remember name butalso show a sign of respect for the other person

Do NOT write on someone elses business card


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Conservative suits for men with subtle

colors are the norm.

Women should avoid high heels and short

sleeved blouses. The Chinese frown onwomen who display too much.

Subtle, neutral colors should be worn by

both men and women.

Casual dress should be conservative as well. Men and women can wear jeans. However,

jeans are not acceptable for business

meetings.


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