Cultural Management

Group 1

K50- CLC QTKD- FTUTrần Tuấn Anh

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Contents

Introduction

Training for Manager

Case Study

Conclusion

Introduction

1. Company• Home country: the USA• 7 years reputation• High-quality hardware products fulfilling orders on time ** Factory in China: producing small items and

assembling (Mr. Yan Wong, 45 years old, is the director)

Introduction

2. SituationIn the third quarter of year, company revealed some

problems in management in China.

To be replaced

Introduction

• David will come to China for 2 years

=> Expatriate

• He is trained during 3 months before departure.

Criteria for Managers

1. Adaptability to Cultural Change •Ability to integrate with different people, cultures, politics, religion, and ethics, to make flexibility in managing operations.•Mr. David needs -being comfortable with work challenges-adjusting to new living conditions-learning how to interact well with Chinese nationals outside of work-feeling reasonably happy and being able to enjoy day-to-day activities


2. Physical and Emotional Health To adopt climate, cuisine, timeline of work

3. Age, Experience, and Education The age of 33 with 5-year experience as a produce manager

4. Language Training


5. Motivation -desire to work abroad, sense of mission-motivators : wage, promotion, opportunity to improve economic status.

6. Leadership Ability Specific characteristics: maturity, emotional stability, good communication skill, independence, creativity… Mr. David should-start to learn the language, customs -attend training sessions provided by the company-confer with colleagues

Objectives of Training

After this training program, our company has great expectations that Mr. David can:

• deal with life pressure which varies from country to country.

• reach the mutual understanding between manager and employees.

Objectives of Training

• cross out the differences in emotional distance towards subordinate relationship

• manage the interact fruitfully with candidates.

Model of Development1. Overall Objective

Increasing effectiveness of expatriate and repatriated executives

2. Problem RecognitionInternal relations- Employee recruitment:

+/ Nepotism and over-hiring

+/ Rapidly rising wages for market for

skilled manual and white-collar

employees -

Model of Development2. Problem Recognition

Internal relations- Reward system: a wide wage disparity between semiskilled and skilled workers>> the negative effect on workers’ interpersonal relations

- Work performanceLocal managers: management risk-averse and are often unwilling to innovateWorkers give little emphasis to the quality of output

- Labor relations- Unions in China are less adversarial than in the West

Model of Development

External relationsWiden network by going to conferences and key industry functions>>challenging due to culture and language barriers

Family relations- indicated the inability of the spouse/family to adjust to the location’s cultural environment - lack the infrastructure such as adequate medical services, housing,schools

2. Problem Recognition


Headquarters relations- limited from sharing owing to intellectual property- Headquarter makes final decision for big problem

Relations with home government- USA expats’ confidentiality and safety

Relations with host government- the immigration documents - to take photographs of their furniture and belongings as proof of ownership in the event they are lost or stolen- cut through red tape and avoid unnecessary - bureaucracy- tax free for income not from China

2. Problem Recognition

Model of Development3. Development Objectives

Review terms and conditions of assignment

Increase cultural awareness

Increase knowledge of the host country

Impart working knowledge of the foreign language

Increase conflict management skills

Minimize re-entry problems

4. Assessment of Development Needs

Model of Development5. Development Method

Knowledge about cultural, political, economic, business, legal, and social factors of the host country

Awareness of the needs and expectations of the different parties interested in international operation

Awareness of the problems of family relations in the host country

Model of Development6. Intermediate Result

Predeparture training Orientation Area study Language instruction Cross-cultural group

Behavioral simulation

Case method

Postarrival training Orientation & training Intergroup problem solving

Re-entry training


Desired Result

How much development?

Development MethodRe-entry training

Desired ResultEffectiveness of the repatriated executives

Cross-Cultural Training


Climate in China•a great diversity of climates •located entirely in the northern hemisphere •The northeast: hot and dry summers and cold winters•The north and central region: continual rainfall, hot summers and cold winters•The southeast region: substantial rainfall, with semi-tropical summers and cool winters•Central, southern and western China: flooding and seismic activity.

1. Environmental Briefings


Geography of China

•Located in Southeast Asia along the coastline of the Pacific Ocean. China is a very diverse land including deserts, mountains and fertile river basins.

•Difference in time zones of two countries: on average, China is 16:0 hours ahead of USA.

•Example: when it is 1:00 am (midnight) in Washington DC USA, it is 5:00 pm in Beijing China (same calendar day)

1. Environmental Briefings


America China

Manufacturing average income

$2928 1169 yuans

Tuition fee The average application fee calculated based overall USA is 38.44 USD

+ Application fee of different major for different degree in every university varies from 90 USD to 150 USD, normally not in excess of 200 USD+ Average tuition fee ranges from3300 USD (around20,000 RMB) to 9900 USD (around 60,000RMB) per year.

Income, housing, school in China1. Environmental Briefings


Income, housing, school in China (cont’d1. Environmental Briefings

America China

Average living cost Estimated living cost in USA would be 8,000-10,000RMB (around 1300 USD-1650 USD) per year

Living cost in metropolitan areas like Beijing, Shanghai, Guangzhou would be 4500-5000RMB/month (around 740 USD-830 USD/ month); Other cities would be around 1500-3500RMB/month (around 250 USD-580 USD/ month).

Real estateprices

18,549 yuan per square meter in 2010


Familiarize the individual with cultural institutions and value systems of the host country

IndividualismPower

DistanceUncertainty Avoidance

MasculinityLong-Term Orientation

United States

91 40 46 62 29

China 20 80 32 66 118

2. Culture Orientation


Programmed learning techniques designed to expose members of one culture to some of the basic concepts, attitudes, role perceptions, customs, and values of another culture

3. Cultural Assimilators


Employee behavior and expectations:•Low individualism scores are largely explained by Guanxi, the embodiment of the Chinese culture in both business and nationality. Loosely translated it •The collective nature of the Chinese culture is seen in other areas of behavior and expectations.



Management style

•Two countries differed on all factors of managerial performance except for planning and decision making•Leaders are not used to listening to subordinates or adopting team’s perspective



Staff behavior

•Subordinates are afraid of saying “NO” to their superiors•Subordinates are depending on the superiors•People value long term success and set backs are allowed in the process of developing



Communication system•In Chinese subsidiary company, any problem and urgency has to be reported to the superiors in order to make solution and get contact with relative department, which can be regarded as a formal communication system.•Chinese staffs are not willing to extend their relationship outside the group where they belong to. Therefore a feasible way of organize people from different groups is to use formal communication systems



• By videos4. Sensitivity training

Case Study1. Case study

In company regulation, workers must works for full 8 hours/ day with 6 days/ week from Monday to Saturday. If anyone violates this rule for at least 5 days/ month without permission, he/ she shall be fired. Suppose that in the Assembling Workshop, Mr. David discovered a fraud in working hours. Team leader in the Workshop, who has worked for a long period of time and is older than David 6 years, often go to work very late and even absence for some days. Because he is old and he usually conceal for workers’ mistakes no one complain or report about his violation. They are afraid of being retaliated.

Questions:• What issues does David face with in this case?• What should David do to deal with those problems?

Case Study

2. Suggestion1.Issues David are facing• Power distance• Perception about ages in working• Unfairness in the factory2.Solutions• Talking privately with Mr. Wong• Find out workers’ opinions• Get vote to choose another team leader

Conclusion

• This situation is designed to elucidate the barriers of cross cultural communication in multinational firms.

• Through the training program, this case is provided to managers to help them having a picture about what barriers culture brings to the cross-cultural management.

Conclusion

• => Managers should take their times and learn the differences of the communication and the culture.

Business

Cultural Management