This paper presents an analysis of interview data and field notes from participant observation collected during a four‐month period to discover different work‐related cultural assumptions between Chinese and American co‐workers in a multicultural organization. The paper also addresses how those different cultural assumptions which guide the ways Chinese and American workers conceptualize their jobs and job behaviors lead to conflict as the employees go about their daily business. The contrasting cultural assumptions discussed in the paper are (1) Chinese and American views of the role of manager and the practice of “managing,” (2) Chinese and American conceptualizations of good service, and (3) Chinese and American perspectives of compensation. Finally, the paper discusses some theoretical and methodological implications of the current study and its research method for future studies of cultural and conflict in multicultural contexts.