China

106
Country starter pack
Business practicalities in China
Approach to change
China can be hidebound by traditions, with workers’
intercultural competence and readiness for change low.
Chinese culture’s conservatism means that change can
often be seen as a threat to society. Effective management
in China means understanding this and taking into account
that change will take longer to implement than in their
home country or even other countries in the region. It is
important to deploy carefully any change management
strategy to ensure smooth transitions.
Communication in the workplace
Business in China is more formal than in many Western
countries and to ensure successful cross-cultural
management businesses need to be alert to strict
protocols that must be observed. Chinese people
adhere to a strict chain of command, which comes with
expectations on both sides. In order to keep others
from losing face, communication is often non-verbal, so
you must closely watch the facial expressions and body
language of people while conducting business. Younger
employees, in particular, tend to thrive on more proactive
communication with their managers; however, they can
still respond in non-verbal ways when trying to save face.
Remember that Chinese are non-confrontational and
personal relationships are crucial to conducting business.
Relationships are based on mutual respect and trust. It
takes time to develop a comfortable working relationship
and patience is a necessary cross-cultural virtue. The first
meeting with a Chinese team may often take place over
lunch or drinks as a means of allowing Chinese colleagues
an opportunity for getting to know their boss. On such an
occasion, business will not be discussed.
The role of a manager
Cross-cultural communication will be more effective
when working in China if managers keep in mind that each
person has a very distinct role within the organisation,
and maintaining that role helps keep order. In China,
as in other hierarchical societies, managers may take a
somewhat paternalistic attitude towards their employees.
Younger workers, though, tend to expect a lot more of
expatriate managers and thrive on building a relationship
with them, which can seem slightly confronting to expats.
Employees show respect and deference to their managers
and, in return, managers know their subordinates’
personal situations and offer advice and guidance
wherever it is needed. In more entrepreneurial companies,
this may be changing.
Approach to time and priorities
Deadlines and timescales are fluid in China. Patience
is therefore crucial for successful intercultural
management. Essentially a relationship-driven culture,
taking the time to get to know someone will always
take precedence over timelines. Foreign businesses
should resist any temptation to rush the relationshipbuilding
process or they risk jeopardising any future
business dealings. When working with the Chinese, it
is advisable to reinforce the importance of the agreedupon
deadlines and how that may affect the rest of the
organisation or the team. However, it is not unusual for a
manager in China to avoid confrontation over a deadline
in order to maintain a positive relationship within the
team. Globalisation and increasing cultural interaction
mean that some Chinese managers may have a greater
appreciation of the need to enforce timescales, with
agreed deadlines more likely to be met as a result.
Decision-making
Many older Chinese companies still adhere to a rigid
hierarchy, although this is starting to change in many
multinationals and entrepreneurial companies, and
those that do business with foreigners on a regular basis.
Younger managers in China, in particular, prefer to be
kept informed of decisions that will impact the group and
to be involved in decision-making processes, whereas in
the past, top-down management was enforced and only
senior executives were involved.
Boss or team player?
Because of hierarchical structures in China, it is
important that a manager maintains their role as ‘boss’
and engenders the necessary respect from within the
team. When the manager needs to work collectively
with their team, however, then it is important that the
need to work collectively is stated and that the team
is encouraged to operate openly in a non-threatening
environment. Should an individual make contributions
that are seen as not helpful or necessary, then the
manager will need to address this sensitively. It is essential
that the individual does not feel shamed in front of their
colleagues and that the rest of the group feel able to
continue participating and offering contributions. Expat
managers should also encourage social interaction in and
out of the workplace. This is a key requisite in China’s
collectivist culture where the importance of being part of
a collective or team is valued highly by employees.