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The business cultural differences between China and America
The business cultural differences between China and America
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Doing Business in the Chinese Business Culture
Doing business in China is on many levels similar to conducting business in many western countries. However, the importance of understanding the local business culture and practices are imperative to ensure success, for your business there. The following points deserve special attention:
Dealing with Bureaucracy and Cultivating Relationships
Dealing with bureaucracies and cultivating relationships on many levels, will ensure business success in China. This is the only way, because doing business in China as a foreign entity, this organization will be the minority partner (Darin, 2010). Difficulties that may arise consist of the Chinese bureaucracy. According to Darin (2010), it is a homogeneous culture with many subdivisions within the culture, some delegation does exist but nothing passes through with out approval and oversight of the central government/authority therefore, more and more decisions are being delegated to provincial and municipal authorities. Still in its initial developmental stages, the Chinese legal and regulatory environment is made up of the vague laws and regulations which increase the scope for inconsistent explanations and decisions are made by local bureaucrats. In time, one might expect a more transparent, predictable and mature framework as China’s involvement in the world economy intensifies and as it understands its commitment to the World Trade Organization. Cultivating and maintaining a strong and healthy relationship with government authorities/entities, as they will become very helpful in assisting you with navigating through the regulatory jungle and the local import and export markets.
A Changing Marketplace
The true risk of do...
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...es of the business market and the product should also be evident in the contracts between nations.
Works Cited
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Mathis, R. L., & Jackson, J. H. (2010). Human resource management (13th ed.). Mason, OH: Thomas/South-western
Doing business in China is highly based on the development of good personal relationships over time. They consider relationships more important than tasks. The emphasis here is that they are doing business with people rather than companies so personal contact and loyalty are important. There is a huge importance placed on sincerity above all other qualities. Their communication style tends to be very indirect. It is not uncommon for them to say “yes” to acknowledge they are listening to you but it may not mean the same as it does in other cultures. Chinese have a hard time saying no and the organizational structure is hugely bureaucratic so things are unlikely to happen fast. Their teams are groups of specialists working under a leader who may not be a specialist but will have links to the head of the company. Their structure is vertical so consensus from the team on decisions is common so expect the process to be slow. Chinese are punctual, cancellation or lateness may be seen as insulting unless good reasons are provided. They are quit...
... Additionally, the hurdles imposed by the government agencies will impact the cost of sourcing from China adversely and will have a negative impact on the profitability for the company.
According to Hill (2007) the ethnocentric staffing policy is now on the wane in most international businesses because an ethnocentric staffing policy limits advancement opportunities for host country nationals, and an ethnocentric policy can lead to cultural myopia. The polycentric or local approach centers on recruitment of host country nationals (HCNs; i.e. individuals within the country) to manage the subsidiary. However, Hill (2007) recognized two advantages to the polycentric approach: (1) the firm is less likely to suffer from cultural myopia, ...
Introduction In the reading "A first time expatriate's experience in a joint venture in China" we have come to understand the nature and structure of the joint venture between the U.S.A. and China and the role that James Randolf played in strengthening and maintaining the international partnership. Controls Inc. was a subsidiary of the parent company Filtration Inc. and so was shielded from any outside competition. When Controls Inc. was given the charter to pursue its own business, they realized the need for being cost effective as a result of which they started an operation in Singapore with the name Controls Asia-Pacific with the prime objective to have a presence in the region and to study and evaluate any possibility of a joint venture. James has been an employee of Controls Inc. for the past 23 years with experience in managerial positions of about 15 years.
In today's global business environment, managing diversity in human resources has become a very important and crucial issue. Human resources management has a lot to deal with managing workers/employees from different countries and nationalities. Managing multinational human resources becomes an issue not only in the multinational corporations, having their offices or plants in different countries, but also in the domestic companies, with domestic workforce becoming more and more diverse each day. Creating an HR that has the ability to recruit and select the right people and the ability to effectively socialize and train employees will allow multinational companies to excel in all business aspects.
In an effort to gain a working understanding of the Human Resources field, I chose to interview the Director of Human Resources for an organization in Miami, Florida. What I learned goes far beyond any classroom or textbook instruction. It is clear; the field of Human Resources will never be static, as society, technology, and legal environments change, so will the field of Human Resources.
Byars, L. L. (1997). Human Resource Management. Chicago, IL: The McGraw-Hill Companies, Inc. Mills, D. Q. (1994).
The level of experience an employee possesses aid in the productivity of an organization. Additionally, diversity in terms of culture, ethnicity, religion, gender, etc., also contribute to the productivity levels of an organization (Pope, 2012). Part of this diversity increasing in organizations is due to immigrants who go to a different country specifically to explore other employment options (de Castro, A. B., Gee, G. C., Takeuchi, D. T., 2008). This aids in the development of a multicultural organization.
Knouse, S. B. (2005). The Future of Human Resource Management: 64 Leaders Explore the Critical HR Issues of Today and Tomorrow. 58(4), 1089-1092.
...e located and the human resource management to effectively manage the global workforce diversity. Furthermore, management practices across nations should be more focused in terms of enhancing expatriates’ experience with cross-cultural training. It is also highlighted that executives of international firms must efficiently devise the best strategies and plans to increase the business positive performance and for controlling resources of their foreign subsidiaries. As a consequence, global managers play a very important role in the development and success of multinational corporations in the current competitive international market since there are numerous issues that they have to deal with in the operating process. If the enterprises could overcome the management challenges, they would gain great opportunities in the global economy and achieve favorable outcomes.
High turnover rate of expatriate: expatriate managers are frustrated with the performance and practices of local employees. And they do not have enough international experience and cross-cultural communication and sensitivity training.
Business ethics can be defined as ethical or unethical behaviors by employees in the context of their jobs (Ebert, R., & Griffin, R. 2011). Business ethics explains why people make the decisions that they do concerning their job. An individual’s opinion on what is ethical or unethical behavior usually differs depending on their beliefs or social norms, otherwise known as culture. Culture, which is just the beliefs and behaviors of a particular group, is extremely important to business ethics (Storti, C. 2011). Culture helps define different business ethics not only internationally but in any organization. I chose this topic because I am fascinated by Sociology, and enjoy delving into the reason why people do the things they do. Business ethics
In the past few decades, the world has experienced heightened globalisation. During this period, organisations have prioritised setting up leaders capable of dealing with the ever-increasing involvedness of running their global operations. Overseeing global talent along with career paths is consequently a decisive challenge in lots of multinational organisations. Individuals as well as organisations perceive International assignments as a constructive way of developing global occupational competencies (Brewster & Suutari, 2005).