Teamwork and Chinese Culture - Research Paper Example

? Culture inserts his/her s Department’s Table of Contents Executive Summary……………………………………………………………………………….3 Executive Summary Marked differences exist between the Chinese and Western culture which can impact our operations in China. At the very least the Chinese culture is high context in nature which means that emphasis is laid on the underlying meaning rather than explicit meaning. This means that gestures and non-verbal language is given great importance which may result in room for misinterpretation. Consequently, we shall be required to hire a language and cultural interpreter for dealing with Chinese in addition to engaging in selective hiring of expats based on their past international experience particularly with the Chinese. Furthermore, ethical aspects of the Chinese culture may be weak leaving scope for bribery and gift-giving at various levels of business operations. Additionally, team work may be difficult to achieve with the Chinese who do not possess any concept of teams in their culture. However, binding based on understanding of the Chinese language could prove to be a successful strategy in developing strong cross-cultural teams involving Chinese. Finally, the company may have o consider the conflict of home country versus subsidiary strategy based on different cultures prevailing in the two countries. It is recommended that Primark engages in cross-cultural training and engages in selective hiring on expats so that the need for repatriation is minimized. 1. Introduction National culture is stated as having a profound effect on the strategy adopted by organizations. Furthermore, the formulation of strategy for our subsidiary in China at our headquarters in U.K could entail the risk of having one national culture dominate over the other when it comes to strategy formulation. A stark difference between the national culture of China and U.K based on Hofstede’s dimensions is also apparent. 2. Chinese culture and HR Policy The Chinese culture is marked by hierarchical ties based on status, paternalistic leadership and emphasis on trust building amongst relationships (Guanxi) which is contrary to the Western notion of formal planning, more objective business dealings and a participative style of management. It is important to understand the key dimensions of masculinity, power distance beliefs, uncertainty avoidance and long term orientation laid down by Hofstede identifies that highlight the differences between the Eastern(including Chinese) and Western (including U.K) national culture(Hofstede, n.d.). The Chinese societies possess high power distance beliefs, collectivism, long term orientation and conformity. Therefore, it is not uncommon for the Chinese to derive satisfaction from collective gains rather than personal achievements. Furthermore, the Chinese people tend to avoid conflict in an attempt to “save face” and appreciate harmony and cohesion. On the other hand, Western societies such as U.K tend to be more work-centric and highly individualistic with low power-distance beliefs(Edfelt, 2010). Clearly, we run the risk of engaging in what is known as an ethnocentric approach. Sending expatriates from the parent country (in this case, U.K) to assume top managerial positions in the foreign country (China) would be part of our HR policy. However, it is necessary that there is sufficient coordination between these expatriate bosses and the local intermediate managers in China. Research also suggests that prior international experience provides valuable work-related and non-work related information for cross-cultural interaction, particularly if that experience has been with a culture similar to the current one(Selmer, 2001). 3. Socialization and business dealings At this stage, hiring of expatriate managers based on their past experience of dealing in cross-national assignments/projects (particularly projects with China) would be necessary as these managers would then draw from their prior experiences and training to deal effectively with their Chinese counterparts. This is even more important in the case of China since the culture demands social gatherings and entertainment to build trust amongst members. These gatherings are followed by light discussions whereby there is little work-related discussion. Therefore, doing business in China requires the development of long-term and lasting relationships which cannot be built overnight. For Primark to succeed in China, it would have to send those personnel in China which have familiarity with its people and business community. One of the best ways of doing so is engaging in organizational socialization tactics which would involve strengthening interpersonal ties between expatriates and locals to reduce the element of surprise and break any false myths or false preconceived assumptions about the opposite culture(Selmer, 2001). Research also suggests how interacting with foreign members in a social setting allow expatriates to become knowledgeable about appropriate behavior in the new culture(Goodall et al., 2006) . Therefore, Primark would organize such gatherings at the beginning of the new venture in China to ensure that trust-building is enhanced. This is particularly important for Chinese who observe the principle of Guanxi or a web of personal ties that are quintessential to elicit work from Chinese(Li et al., 2000). Although the U.K culture values legal contracts, this is not so in China whereby Guanxi is given precedence over such contracts. 4. Repatriation Repatriation is common with expatriates giving up because of their inability to adapt to foreign cultures. The resulting cultural shock may occur when individuals from Western culture move into Chinese culture. This may be costly as significant investment is made into sending expats in a foreign land. Primark shall engage in pre-departure cross-cultural training covering the relationship between expatriate and host country nationals. If new employees are being sent as expatriates, it is necessary for them to engage in information exchange with older employees. Such information typically includes lessons learnt from concluded operations during the predecessor’s project. 5. Ethics and Chinese culture The fact that Primark shall be conducting operations in a foreign land-China gives way to the need to abide by global ethics. In order to develop long lasting ties, the exchange of expensive gifts is considered customary in Chinese culture. This may be considered unethical for Primark since the company’s code of conduct does not allow for gift-giving in return for favors. Whereas companies such as Motorola have been flexible to apply the gift-giving concept, Primark would enforce its home country ethical values in China (Buller et al., 2000). Most importantly, however, considering the low cost of labor in China and various child labor litigations on MNCs conducting business in China in the past, it would be critical to ensure sound working conditions and wages for Chinese labor. Therefore, an international code of ethics would apply to all workshops working for Primark in China. It is important to note that different ethical scenarios would warrant different approaches. For instance, it may be in the best interests of Primark to not send female delegates for negotiation with the Chinese as the latter do not engage in eye contact with females and discourage their speaking during men’s meetings. This is exactly what Burns and McCallister did when faced with similar situation(Buller et al., 2000). On the other hand, “forcing” may be best suited to situations such as stopping the development of counterfeit products in countries as adopted by Calvin Klein (Buller et al., 2000). Primark would be required to impose its ethical laws on Chinese operations to avoid practices such as bribery which is acceptable in China. On the other hand, this may not be a viable strategy in the long-run as it would be destructive to Primark’s relationship with Chinese as it would interfere with China’s decision making. Creating effective cross-cultural teams for new venture 6. Teamwork and Chinese culture Perhaps one of the fundamental issues involved in the development of cross-cultural teams pertains to the attitudes amongst Chinese regarding cross-functional work. Owing to high uncertainty avoidance (as per Hofstede’s dimensions), the Chinese tend to stick to the confines on their own department. Hence, cross-functional efforts are rare. Nevertheless, the Chinese culture ranks high in collectivism which means the collective gains of the team are given priority over individual gains and performance. However, the development of cross-cultural teams would entail various challenges. One of the most basic impediments is that the Chinese do not know how to work with others and do not engage in teamwork (Goodall et al., 2006). This would require treating the team like a family while at the same time emphasizing the need to take right decisions for the company (Goodall et al., 2006). Language may be a barrier with the strong British accent of our workers being incomprehensible to the nonnative English speakers in China, thereby reducing team cohesion. Here, the difference between high-context cultures and low-context cultures must be noted. The former includes cultures such as that of the Chinese whereby non-verbal communication, and not verbal communication, is the basis of meaning in conversations (Bovee et al., 2008). Low-context cultures, such as the culture of U.K, on the other hand, tend to adopt more direct communication styles with less ‘hidden meaning’. Knowing the unspoken language in China has been defined as a “trump card” for foreign expats(Goodall et al., 2006). However, research also shows that expatriate’s initiative to learn Chinese language is perceived by Chinese as a reflection of their commitment to work with Chinese(Goodall et al., 2006). Therefore, Primark’s executives in China may be required to learn basic level of Mandarin or Chinese spoken language. Furthermore, multi-cultural teams by design tend to have a flat structure with less hierarchy-driven communication . This may contradict Chinese members who are used to working under hierarchical systems which may be misfit under such decentralized multi-cultural teams. 7. Subsidiary vs. Parent country Research suggests that structural interventions, which involve conscious reorganization to reduce friction amongst members, are particularly useful when subgroups are part of the team (such as members of national subsidiary vs. headquarters)(Misra, 2012). While adaptation shall remain best suited to deal with problems arising in our multi-cultural teams, structural intervention shall remain a dominant strategy. Exit, or leaving the team, would be the last resort. Furthermore, Primark shall follow the framework for high-performing multi-cultural teams. This would involve developing a team charter whereby the team’s agenda is clearly defined in terms of one or more objectives. Furthermore, because of the struggle for corporate resources amongst members of the Chinese subsidiary, it would be prudent to explain the agenda in terms of Primark’s position relative to its competitors rather than charting the agenda in terms of subsidiary vs. parent company goals. Next, team members must be chosen to represent the cross-cultural team. Because of the mismanagement involved in handling large teams, core teams with fewer than 10 members are suitable (Govindarajan & Gupta, 2001). Members may be added as and when necessary. Furthermore, to bring both personnel at par, executive development programs shall be offered in order to develop social capital amongst cross-cultural individuals (Govindarajan & Gupta, 2001). While literature has favored the use of virtual teams, it is critical that the initial meetings across cultures occur face-to-face(Govindarajan & Gupta, 2001). Gradually, however, virtual teams shall be developed to facilitate interaction. Frankness may be particular issue when it comes to dealing with the Chinese as they tend to avoid disagreements and would even smile during times of disagreement. This can lead to miscommunication with British employees who may warrant clear answers during communication. To this end, Primark shall appoint cultural interpreters whose role shall be to act as bridge between both cultures, thereby avoiding confusion and conflict between them (Goodall et al., 2006). This strategy has been used by renowned companies such as Nokia and Kodak(Goodall et al., 2006). 8. Conclusion To conclude, working with Chinese would require major adjustments in terms of ethics, development of cross-cultural teams, expatriate managers as well as dealing with national vs. subsidiary interests. However, our company shall be able to counter most of these challenges by using cross-cultural pre-departure training as well as use of cultural interpreters to ensure that no miscommunication takes place. It is also recommended that the hiring process particularly takes into account prior experience of working with Chinese as a requirement for inducting expatriate managers. Finally, the framework for developing successful multi-cultural teams shall be useful in reducing team conflict and ensuring cohesion. References Bovee, C.L., Thill, J.V. & Chaturvedi, M., 2008. Business Communication Today. New Delhi: Dorley Kindersley Pvt. Limited. Buller, P.F., Kohls, J.J. & Anderson, K.S., 2000. When Ethics Collide:Managing Conflicts Across Cultures. Organizational Dynamics, 28(4), pp.52-66. Edfelt, R.B., 2010. Global Comparative Management: A Functional Approach. California: Sage Publications. Goodall, K., Li, N. & Warner, M., 2006. Expatriate managers in China: the influence of Chinese culture on cross-cultural management. Journal of General Management, 32(2), pp.57-76. Govindarajan, V. & Gupta, A.K., 2001. Building an Effective Global Business Team. MIT Sloan Management Review, 42(4), pp.63-71. Hofstede, G., n.d. Dimensions: Geert Hofstede. [Online] Available at: HYPERLINK "http://geert-hofstede.com/dimensions.html" http://geert-hofstede.com/dimensions.html . Li, J.T., Tsui, A.S. & Weldon, E., 2000. Management and Organizations in the Chinese context. New York: Macmillan. Misra, V., 2012. Management of Cross Cultural Teams: Problems and Effective Management of Cross-Cultural Teams. [Web] [Accessed 09 December 2013]. Nisbett, R., 2003. The geography of thought: How Asians and Westerners think differently—and why. London: Nicholas Brealey. Selmer, J., 2001. Antecedents of expatriate/local relationships: pre-knowledge vs socialization tactics. International Journal Of Human Resource Management, 12(6), pp.916-25. Read More