A brief Comparision of Western and Chinese Management

Wed, 07 Nov 2007 16:09:06 GMT

LEARNING MAKES IT BETTER

A brief difference between Western and Chinese Management

Expatriate sometimes gets frustrated working in China. You might have heard these: ‘everything takes a longer time’; ‘they just don’t get it’; and most people ends up saying ’ this is China.’

There is no intention that this article will get involved in debates like which culture is more advanced.

Let’s start with no opinion, take them as fact, look at them just as differences, and see if we can get an answer from there.

Internal Management

In a western company, these are common business approach: A business starts with a business plan. And Departments make their plan. And there is a regular report system.

‘When it comes to operating a business we requires of each department within to submit a budget and operating plan and proposal with milestone and pert charts. Middle and lower managers are required to submit their budgets for wage increase, new hires and new equipment both disposable and capital, and if they have several project within their department they must submit a time schedule on each project along with cost of items needed to complete and also their present inventory such as a fifo report. These are submitted monthly’

‘What keeps a company afloat is knowing exactly what is needed to make a correct decision on whether to continue the project on level one basis or inject a secondary project. Also they must know the delivery time and critical parts.’

‘Our managers are required to make decisions and report incidents that are delaying the project and offer a solution(s)’

A German business man said.

We admit that all these are not common to Chinese businesses. Most Chinese businesses are more based on experience; either you own experience or other people’s experiences, and business sense.

Dealing with Customers or Buyers

A Western company might initially submit a proposal. Request a meeting to determine the parameters of the business.

‘We bring our points of interest to the table discuss them and then alter if needed. And most times everything is in the original proposal.

If dealing with an international commodity we will stick strictly to international rules and guidelines.’

Chinese company also request meetings or visits, and dinner are always necessary. Westerners do not understand this – why do they waste time on dinner table.

To Chinese, we take it for grunted that you need to appreciate people for what they do or might do for you. And dinner is a media to deliver this message – your appreciation and your understanding of this common sense. And more important, we believe in a more relaxed surrounding, it is easier for you and the party to become friends. Friendship brings trust. Business is based on trust.

Personnel Issue

‘We never have an abundance of people such as Chinese companies. One person several duties, where in a Chinese company, you have several people doing the same job and both doing nothing.’

It does exist in some Chinese companies, yet I wouldn’t say that only exist in Chinese business. Fact is that we also see this in other countries, especially in government. And with more and more companies are private companies in China, this becomes less and less of a case.

Employment & Wages & Encouragement

‘We have many outings during the year such as company parties BBQs, ski trips etc to keep employees understanding that we as managers care about their welfare’

We have one rule that I see doesn't exist very much in china - our customers come first and we treat them as family this extends all they way down to service people janitors and kitchen help etc. Yes and more than that we give them a pat on the back telling them they are important to the company and are doing a good job. We try to work with everyone with respect.’

If you ask a Chinese what companies they prefer to work at: Chinese, Japanese, Korean, European, and North American? Survey shows that North American and European are the preferred choice.

Why? The reason might be: generally speaking higher salary, good training and promotion system, and friendly working environment (e.g. respect and equal).

So it says that yes Chinese businesses also have a long way to get there.

As to wages, there is a thing that Chinese companies offer to employees that we don’t see in Western companies: wages when there is a traditional holiday, e.g. Spring Festival, also dormitory.

In a society that money are important, that also influence people’s decision of whom to work for.

Training & Promotion:

‘We do quarterly reports on personnel offering advice on their performance. Promotions are based on performance not on who you know. We quantify and qualify all employees from work ethics to interactive behavioral manners.’

That’s true. However, it is also quite common in Chinese companies. I would say the above comment is somehow out of date. Who you know does matter, which also matters in Western companies. Employment and promotion base on value you add to the business, it is becoming a common sense in China.

Team work

‘The main issue in most all western companies is teamwork, talk to other managers for advice and help on issues you are not familiar with. And most upper management will mingle with the employees.

If you say in Chinese companies, managers don’t communicate or do not assist each other, it may not true. If you say Chinese business lack of well organized meetings and regular communication, that may be true.

In case of office politics, however, Western employee might still work with each other to guarantee the job done. Chinese employees, maybe the personal interest comes first.

Corruption

‘Plus managers are corrupt by taking cuts off the top of contract and being paid under the table. In the US it is against the law to accept a gift from a customer. It is considered a bribe and must be reported on your income tax return, but it is part of doing business in china. a major part If the monies were distributed amongst all then I can understand but it is only in the upper management anyway it is there and a conflict with western companies’

It is more of a law issue than a management issue.

Ending 1:

The comments of Chinese business by expatriate we select here may sound all negative. We have to face the pain that we still have a long way to go to be well organized.

At the same time, a fact is that Chinese learns from other. And Western business seem just be happy with what they know.

To reach the top, you start by learning what others do, and how they do it. Then you practice and create. Establish you own way/style.

Considering how much we learnt within a short 20 years, we should be optimistic on what we will reach one day.

Ending 2:

From these differences, you might see that doing business with Chinese, trust with people always comes first. While for a Western company, everything is more following regulations/standard. Western concept though, though you respect human rights, but human elements doesn’t exist in business. As you say ‘Business is businesses. And for Chinese, we say ‘to do business, you learn to be a human first’

The end………………

In case I forget...: Work Note

A brief Comparision of Western and Chinese Management