Analysis: Culture Difference to Human Resource Management in USA and China
Differences in management culture will influence organization performance. With the above six dimensions of cultural difference, we can find that there are similarities and differences value between United States and China. Even Asian and western countries, there is might have similarities occurs. Koontz and O’Donnell (1968) classify the five function of management which is planning, organizing, staffing, coordinating and controlling. This paper is using these five functions differences to elaborate the practices of HRM of both country and comparing the result.
Planning
Planning is the process of situation analysis, establishing goals and strategies that allow organization to run smoothly. As mentioned that China is focusing on long-term orientation (LTO) which they are
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Management required to build close and sustainable organization network within the company. Interpersonal relationship building is greater importance than monetary performance in short-term. If organization still stick on organization culture but not national culture, it is hard to success in HRM, especially in China. Employee is an important asset to company, when employees build up relationship with company, they are loyal to their job. This can achieve to employees’ retention. Shi(2010) points out that the turnover in China business is relatively high. Thus, organization should adopt to Chinese culture of “GuanXi” importance and build up the aspiration on long-term goals.
For United States, the practices of HRM is different from China. As the national culture is short-term orientation, which means they are need for achievement and self-determination. American business mainly measure company performance with a quarterly basis which is a short period in business, so it affects people are willing for quick result in working
Planning: The process of anticipating future events and conditions and determining the best way to achieve organizational objectives. Marketing Planning:
Planning is the process of setting goals and creating a plan for meeting those goals. The benefits of planning as seen by the research evidence is firstly, it provides a team with a direction for future actions. For example, in my team we did not have a direction on how to proceed thorough each stage, if it was better to move up or down, which made our team members losing interest. Furthermore, planning helps when there is a problem, because if we had a plan we can proactively address problems and their impact on the project or goal is reduced. For instance, a problem in our Everest simulation was when of our team members health was critical or if someone wanted to complete an individual goal, we spent a lot of time discussing on what to do
“Organizational Management and Leadership” defines planning as “the development of goals, which leads to the development of an overall strategy for achieving those goals. Planning can be performed at all levels of an organization. Supervisors are planning when a weekly work schedule is put together for hourly staff. Top executives are planning when they define the mission statement of the company and determine how the organization can maintain its competitive advantage.”
It also forms part of good business ethics and is good practice to keep people up to date at all times when things change or need to be changed. Failing to do so can result in other peoples work plans being out of sync.
It is hypothesized that cultural differences in behaviour will mean differences in HRM practices within different cultures but those within the same cultural cluster will be similar whereas those in different clusters will be dissimilar. Employees and managers from different cultures take decisions in different ways – the processes, behaviours and values are not the same. People have different value orientations as a result of individual psychology, life-stage and generation and assumptions about behaviour determined by cultures are linked to a variety of organisational behaviours.
Planning is the foundation of all the functions of management upon which the other three areas should be built. During planning, management must evaluate the company’s current situation and then developing strategies to achieve these goals, this is called strategic planning.
Planning is defined as choosing a goal and developing a strategy to attain that goal.
This has highlighted a crucial issue for international companies to be aware of the cross-cultural implications in the conception, design and implementation of the various market entry strategies for the Chinese markets, especially when considering the Human Resources Management strategies since Corporate Strategy will in turn determine the Human Resource (HR) strategy to be deployed.
Mismanaging cultural differences can render otherwise successful managers and organisations ineffective when working across cultures. As stated byOsland (1990, p. 4) ``The single greatest barrier to business success is the one erected by culture''. Hofstede (1983) defines culture as "the mental programming of the mind which distinguishes the members of one human group from another" (Hofstede 1983 p. 25). Through the comparison of Chinese culture and Australian culture using Hofstedes five cross-cultural dimensions: power distance, uncertainty avoidance, masculinity, individualism, and long-term orientation an insightful view into the differences and similarities of the cultures can be obtained (Chong & Park 2003). Human Resource Management
With the unstoppable trend of globalisation, it becomes extremely significant for international businesses to have a thorough understanding of different cultures. Hofstede (1980, pp. 21-23) defines culture as ‘the collective programming of the mind distinguishing the members of one group or category of people from another’. This essay examines Hofstede’s cultural framework and suggests that Hofstede’s cultural framework is an outstanding and authoritative tool to analyze culture differences. In this essay, cultural frameworks will be discussed firstly, following by a discussion of my cultural scores and background. Finally, recommendations on cross-cultural management between China and Australia will be provided.
The culture of China, in terms of management inside of a company is described as each person has a very clear role and that helps organization to keep things in order. Unlike Serbia and Montenegro where it has a culture of employees expecting employer to give them detailed directions and no questions are expected. Generally managers in China use autocratic leadership style. However they will not embarrass or punish employee publicly or in front of the colleagues. Another important factor is the hierarchy of Chinese culture. Even though the actual control is at the top of line management there may be informal interaction between staffs or managers and staffs (Kwintessential.co.uk,
Planning provides a guideline for the members of an organisation to carry out their tasks according to the set objectives. The absence of planning can create ambiguity within the organisation.
Planning is a process of establishing a mission with clear goals as a means to achieve them. Good planning requires special skills and perspectives allowing decision-makers to understand the challenges they are facing and apply the most effective solution to a problem. In order to achieve success, one must plan accordingly. Planning can be short term or long term. Short term plans are done on daily basis and are easier to achieve than long term plans. Long term plans are also known as strategic plans and are used to achieve a long range vision or mission of a company. In both methods of planning, short term and long term, is necessary to achieve top notch results. Like in any other process, there are both benefits and pitfalls to a
Scott, Bishop and Chen (2003) researched how well Chinese employees perform under western management principles and practices. They stated that the traditional Chinese culture might have conflicting influences on the success of programs that involve employees. They examined components that underlie participative management efforts in the U.S., which include the nature of the tasks individuals perform in Guangzhou, China. According to their results, perceived group support and
The Chinese system can still be classified as bureaucratic and rigid. In order for employees to join foreign companies their personal files need to be released by their current work units or employers, which causes hindrance and leads to wastage of time and resources. Joint ventures between foreign enterprises and SOE’s are overstaffed and leads to opportunity cost of having better and more skilled employees. Foreign organizations usually overspend on their HR and training budget because training and development is a powerful motivator for employees in China. Using connections or networks in order to land a job for