My organization has decided to outsource customer service to the Country of China as part of the company’s decision to cut back on operational costs. I have been selected to travel to China to train the new employees about operational procedures. I understand as an American my cultural values differ from that of Chinese culture, and I do not want to give a bad first impression by inadvertently offending the employees and the management of the Chinese-based office. If I am going to be successful in my mission, I understand that I am going to have to study and know how to implement Chinese culture prior to my trip. There are several factors I must understand before going to China:
1. The significance of Guanxi.
Guanxi actually means ‘courting’, and is a gadget of social networks and influential relationships that facilitate commercial enterprise and different dealings. When one has successfully built guanxi with some other, he can be quick to do a favor and act on another’s behalf. Crucially, this is arrangement is give and take, meaning that both parties can assume such favors. This frequently-misunderstood concept is vital in Chinese business tradition, and evidently it takes time for the parties construct guanxi. Now not surprisingly, the procedure for Chinese enterprise people to believe a foreigner and broaden guanxi can frequently take up to at least one-2 years.
2. The significance of Mianzi (face).
In Chinese language commercial enterprise way of life, it’s far
In addition, by understanding the culture and societal trends of China, it will be easier to create the most effective marketing strategy and IMC programs for this country. Also, understanding the elements of the business environment of China, such as ethical standards, management styles, formality, and other factors are essential before entering a foreign market.
Chinese Business Etiquette: A guide to protocol, manners, and culture in the people republic of China by Scott D. Seligman is a book explaining different situations that gives an insight about that complexities faced by the Westerners doing business and travelling to China. “Good manners is generally just good common sense anyways.” (Seligman 1998) This was written in his introduction where in he stated that situations, attitudes and practices are timeless. This being said, this book was written almost 17 years ago in which an issue of advancement and adaptation can be raised since it evolves and develops rapidly. In addition, the question, is this book being the most suitable for Canadians to learn about Chinese etiquette? The answer was simply answered 17 years ago as well. Regardless of the time when it was written and published, the book conveys what a westerner or any other culture can encounter in China or in any country with Chinese cultural background. Furthermore, Seligman started by telling the audience of the book of what to expect and continued with personal experience and situations that an individual in different situations can possibly encounter. He also included tips and recap from what the chapter is about. In addition, having a good insight it is very evident that the author integrated himself into the book. These two chapters evolved around business situations from Chinese learning Western technological advancement to having business relationships and the
Cultural Issues/Differences – China has a very old and complex culture. Traditions vary between towns, cities and country areas.
For example, employee loyalty can be described and improved by reciprocating favors. Developing business relationships are expected to take more time in the Chinese culture as opposed to how they are developed in the united States. In the U.S., businesses and clients typically meet in a formal setting and focus on the business requirements and solutions whereas, in China, first, second and even third meetings might be in informal settings where business is not expected to even be discussed.
Cultural values are the core principles and ideals upon which societies exist. Those values reflect several parts of a community, including customs, traditions, rituals, and religious beliefs among others. Cultural values are passed along from one generation to another and define the way of our everyday life. With the increase in globalization, it is important to understand cross-cultural values, and as parents or educators who are involved in the process of raising the next generation to understand some cross-cultural values and guide the children to appreciate the diverse environment that surrounds them in class, in playgrounds, or even in families.
The following examines the nation of China and its trade relations with the world, particularly the United States. The focus is primarily on China’s culture and how it impacts business dealings with other countries. Areas examined include: Religion, Management Philosophy, and Business Etiquette. Also discussed is China’s growing status as a world super power and how that has impacted the global business landscape. Likewise, various trading partners are examined and the effects of doing business with China, specifically for the United States. Points of concern for the United States are things such as the
This process has more significance in most countries except the Unites States. The approach in the U.S. is to get down to business straight away without wasting too much time on people. This is in stark contrast to the process in China where the focus is on building “Guanxi”, that is, the intricate and omnipresent network of personal relations. The U.S. approach can be a huge problem when doing business with China. The American efficiency interferes with the patient development of a mutually trusting relationship – the very basis of an Asian business agreement. This is what happened in the case study. Mr. Smith had done his research and was aware about the Chinese business methodology, but he did not think it was important to implement it. He was well advised by Mr. Tang. Mr. Tang, even though pointed out the significant features of the “American” and the “Chinese” way of doing business, did not stress enough to make Mr. Smith understand its significance. Mr. Tang also jeopardized his relationship with Mrs. Ming whom he had known for many years by not disclosing that the supplier was not a direct supplier.
Chinese culture is truly one of the great civilization our world has come across. It boasts a vast geographic expanse, over 4000 years of written history, as well as a rich and profound traditional society. Many aspects of Chinese civilization can be traced back many centuries. It is so diverse and unique, yet harmoniously blended, and presents itself a priceless benefit to the world.
Moreover, according to Adsit D. et al. (1997) the culture may affect the behavior of individual managers and subordinates as they interact with others. When you deal with one Chinese for business you end up dealing with the whole family. The reason for this is that the family comes first and business comes second. All of the business of China are family directed, family financed and family accountable. If the U.S. did business with them, their business is transaction based and China is relationship based. Chinese business people will not overtly show their disagreement or displeasure. The U.S is strictly business and China is more family oriented and like to get to know you first before they settle down to do business. The Chinese are totally controlled by a small group and it will be very hard for them to let go of their reigns in order for innovation to take place and this is why they are at the top of long term orientation list. They have the culture for it and their leaders take control in order to stay in
Your post was really thoughtful, and well explained. I have the same perspective as you do towards Barton use of the three principles, and decision to hire May Ying. Barton was not a culturally competent communicator because he lagged on the knowledge he had towards May Ying’s Chinese culture. Barton did not know why she was responding the way she was to his questions. Barton, as you mentioned, could had developed cross cultural skills in order to be able to communicate with May Ying, and adapt her behaviors. Especially understand her values, so he can get a better understanding on why she isn't giving much eye contact and responding vaguely to the interview questions. Moreover, I believe May Ying could’ve gained knowledge on the Chinese
Australia has always leaned heavily on China as a key trade partner China being the fastest growing nation creating the need for raw materials. A key investor Australia remaining as Chinas preferred investment Candidate. As well as a labour market offering cheap labour to Australian businesses, large commodities buyer and limited taxation and an average of 50% cheaper materials. Creating a heavy reliance on China showing that ultimately Australian businesses would not be able to survive leading to catastrophic events such as recession.
Chinese workers believe that close personal relationships are imperative to effective communication. American companies don’t share the same views and some organizations have even related this to workplace fraternization, which can result in disciplinary action. Since we don’t believe that these relationships are necessary, or even appropriate, we don’t form them and this could affect a bi-national workplace and possibly even carry over to business dealings outside of the company. The Chinese believe that, when conducting business with other people, a relationship must first be formed to gain the trust of business partners.
Another value that is very important in Chinese culture is trust. Trust lies at the heart of successful long-term intercultural business relationships. Therefore, Oldtown employee must be prepared in gaining the Chinese Manager in China trust to deal with business. In China, the cross-cultural business relationships, trust plays an indispensable role since partners from different cultures don’t always have the same values or assumptions about how business works. When trust is developed, partners can navigate difficult issues over time by fostering a candid exchange of ideas, issues and agendas. Developing trust can significantly reduce what Westerners often complain of in their dealings with Chinese counterparts: unpredictable behavior and a lack of transparency. As a Chinese executive at Google put it, “In China, your success depends on how well a person trusts you.”
The Chinese Communist government has complete power over the legislation, economic and cultural institutions. While western economies have governments that promote transparency for doing business, China’s Communist Party’s rules and regulations have made transparency difficult (Jayaraman, 2009). Large manufacturing companies can come under various and random regulations and bureaucracies, and the Chinese promotes a form of social networking called guanxiwang, where guanxi is the relationship between the individual and the entities of the network (Jayaraman, 2009). With the heavy amount of corruption and the lack of transparency the guanxiwang or the social network with connections with people from the communist party can help western businesses avoid red tape and bureaucracy.
This paper aims to explore the cultural barriers that GM encounters while doing business in China especially in terms of language and Asian mind difference. As a matter of fact, we cannot examine all the cultural barriers due to the scope of the paper. On the other hand, some differences emerging from different thinking behavior between US and China are exemplified in the second part of the paper. In the first part, the company information and the SWOT analysis of GM are given before going further with the Asian operations of the company.