Culture and the Problems of Chinese Management

Abstract

This article analyzes the relationship between problems of management in the People's Republic of China and Chinese culture. Five problem areas are outlined: (i) organizational structure; (ii) management skills and succession, (iii) Party/management relations; (iv) operational; and (v) motivation and labour discipline. Chinese culture is seen to have four main features affecting organizations: (a) respect for age and hierarchy; (b) group orientation; (c) face; (d) the importance of relationships. It is argued that these can reinforce management problems arising from a planned economy, as well as undermining the legitimacy of formal organization. In the future, it is likely that moves towards Western management methods may not have the desired effects as a result of cultural influences.

Interpersonal affect and host country national support of expatriates

“…In other words, people in collectivistic societies rely, in general, upon their in-group members (i.e., other Chinese HCNs) in exchange for absolute devotion to them, while interaction with outgroup members (i.e., expatriates from India or USA) is to be minimized. Here, collectivism is manifested through a deep sense of liking for those who belong to the same social environment (Lockett, 1988) and share the same values, and these values, in turn, guide HCNs' behavior towards expatriates (Varma, Pichler & Budhwar, 2011b). …”

Upward Influence to Overcome Hierarchical Authority Expectations: A New Approach for Stakeholder Management

“…Lockett [27] identified four features in Chinese culture that are associated with its organizations: (1) respect for hierarchy; (2) face; (3) the importance of relationship; and (4) group orientation. In this case, respect for hierarchy makes a clear distinction between the Division and the CM.…”

M&A Due Diligence in China—Institutional Framework, Corporate Practice and Empirical Evidence

“…The different set-up in China can either be explained by traditional, mostly Confucian values (e.g. collectivism, saving face, concept of hierarchy, relevance of seniority, meaning of personal and less abstract relations) [92] or by a more recent political ideology that intends to satisfy the needs of a planned economy rather than managerial economics. Thus, a post-merger re-organization does not necessarily improve the situation.…”