Difference between China's Management Style and the Western Style - Essay Example

Difference between the China’s management style and the Western style Contents Contents 2 Introduction 3 Main unique features of Chinese Management 4Comparison of Private Chinese and Western Management Practice by using specific Chinese and Western firms 8 Evaluation of the Chinese firms being competitive 10 Type of management practices is more competitive and better– Chinese or Western, using appropriate principles and theory. 13 Conclusion 15 References 17 Introduction Amongst in all the countries across the world there are economic trades that is taking place. The managerial styles are responsible for the control and planning of the projects as well as allocating and directing the work of company’s subordinates. In the economic globalization process there have been various multinational enterprises that have been coming up but there still exist a difference between the enterprises in terms of the different cultures and different practices in the technological development. China has been communicating and performing various transactions with the other countries. It is even observed that China tries and blends it own managerial styles with those of the Western management styles. For an international company whose main aim is to transfer its product lines to all the parts of the world it would communicate with the local cultures and customs so that it can acquire quickly the market share of the targeted market segment. In this case it becomes very much important to convert the managerial skills into such a form that is suitable for the target market. Such differences even exist between the management skills of China in comparison to that of the Western countries. China in comparison to the West differs in terms of values and cultures and such a difference is observed in the management styles of the two areas. It is even proved that the Chinese are more prone towards setting firm structure for the discipline and even subjecting the employees to strict punishment if they fail to perform their work appropriately. It is a common believe in the Chinese firms that an external control can only improve on the performance level of the employees. On the contrary the western management style focus more on the trust building and the work is distributed amongst the employees. The Chinese management style is regarded as more of a parental style in comparison to the Western management style that is a democratic style. In the Western firms the top management acts more as a resourceful democrat and initiates more of a two way communication where the employees are given equal opportunity to contribute their valuable inputs in the decision making. On the contrary the management style in China is such that the leaders in the firms act as a benevolent father. The leaders supervises or manages its employees, takes care about the personal welfare of the employees and builds in relationships, and even forms a well defined structure governed by discipline. The management styles in the West and China are totally different as their goals and objectives are different and are influenced more by the cultures and values of the people. Both the management styles have its competitive advantages. Main unique features of Chinese Management There exist many unique features in the Chinese management. In a Chinese enterprise there exists a parallel management system. It is often termed as a two carriage system in terms of the administrative system and the leadership structure that is based on the structure of the Chinese Communist Party. In this two carriage system the main objective of the leadership structure is towards personnel assignment. There exist a lot of difficulties in terms of parallel management system as there results opinion differences between the two management systems (Aswathappa, 2013, pp. 56-57). The management style that is followed in the Chinese enterprise is more of a parental structure in which the employees are not only subjected to disciplinary structure but also they are considered a very essential part of the big family or the enterprise. The parental figure is the most common leadership style that is adopted by the Chinese firms. They not only provide various working opportunities to the employees but also provide them a full array of necessities in the form of childcare, medical insurance, schooling, entertainment, housing etc. The management style of China is so designed that proper care is not only taken about the professional lives of the employees but even equal opportunities is given to their personal lives (Beer, Spector, Lawrence, Quinn Mills and Walton, 1984, pp. 77-79). Often the Chinese organizational functions are compared to that of small society. The Chinese enterprises are assumed to be a large family and the general manager takes the role of a parent. The employees in the Chinese organizations considers their leaders to be the head of the family and they look upon their leaders in terms of work or other necessities and this makes the leader take role of taking the good care of their employees (Boxall and Purcell, 2003, pp. 101-102). The unique feature of the China’s management is that the management acts as ‘good parent’ taking very good care of their entire family or the enterprise. This in turn helps the enterprise to become more efficient and cohesive. If the manager does not take good care of their employees than there would be failure of the manager no matter how much profit margins is gained by the company. Thus the Chinese management style is such that the main focus is on the welfare benefits and secured materials for the employees (Fombrun, Tichy and Devanna, 1984, pp. 65-66). The salary structure that is followed in the Chinese firms is also unique where it is divided into four major parts – basic salary, bonus, seniority salary and subsidy. The subsidy that is offered by the management to the employee’s comprises of house rental, child education, medical insurance, transportation, food, clothing etc. Confucian values form the basis of the management of China (Kurtz, 2011, pp. 75-77). These values are obtained in the form of family socialization where the values of one generation is passed on to the next. Chinese managers are more focused on collective or group orientation. The management is not at all focused towards their personal achievement but is more concerned about the accomplishment of the common goals or objectives (Greer, 1995, pp. 121-123). The achievement of the employees is even regarded as success of the entire organization or the group. However the management only encourages friendly competition amongst the employees and discourages any kind of conflict or rivalry within the firm. The impersonal achievement orientation of the Chinese firms is very much different from that of the Western firms where more focus is on the self actualization. The Chinese management style encourages that employees should work in a harmony and there should be only that much of competition that is accepted by the majority of the employees. Such a management style often results into distrust within the organizations where the subordinates are not trusted by their leaders. It is very similar to that of a parent children relationship where the parents think that the children are not that matured enough to take more responsibility and the children always rely on their parents (Holbeche, 1999, pp. 92-93). The management of the Chinese firms is such that it facilitates more of a top down approach. There is an effective cooperation in the Chinese firms as there exist more of obedience. The employees in these firms work on the basis of the instructions given by their managers and do not put in their innovative ideas in the work process. This kind of hierarchical structure is valued by the management of China though in their opinion it is more of cooperation rather than a strict hierarchical form. The most unique feature of the Chinese management style is more on the harmony and relationships (Iqbal, 2011, pp. 117-119). The management style of China is more linked towards an informal relationship between the employees and the leaders within an organization. However in order to have a steady work environment it is very much important that the management style of China should be more focused on a non work relationship. The leadership style of the China’s organization is focused on the formal participation systems. The atmosphere that is concerned with the China’s management is a formal structure or rather an autocratic structure where the employees are not encouraged to form a part of the decision making and they only need to obey the instructions as stated by their leaders (Wong, 2000, pp. 116-119). However the workers in the Chinese firms can take effective participation in the decision making related to working conditions but they are not allowed to form a part of any strategic decision making. The major role of the middle managers in the Chinese firms is to follow efficiently the instructions of its managers (Kerr and Slocum, 1987, pp. 124-125). The management structure of the organization is such that there is no trust that the managers possess over its subordinates and so they collect information themselves and make the final decisions. The management style that the Chinese firms follow is that the managers have the opinion that the decision making responsibility should not be taken by individuals but it is the responsibility of only the leaders (Carron, 1984, p. 48). However the management in China is taking effective measures to change the authorized position advantage into more of professional knowledge. The most important advantage of the unique feature of the Chinese management is that it facilitates to take very quick results and carrying out missions that are very critical. It even helps in avoiding the conflict situation that results due to incorporating the employees to give their innovative ideas in the strategic decision making. The leaders take the decisions on the strategy making so that there is no delay in the decision making and loosing on some of the opportunities that is important for the firm (Legge, 1995, pp. 95-96). The direction and the control lies with the top management and the employees are there to execute the task given by them. Such an approach is very much beneficial in terms of time which would else be required in brain storming and negotiating. Hence the most important feature of the China’s management is that they are focused on effectively managing the employee base and making them performs efficiently and the management do not only take care of the professional life but also take care of thee personal life of the employees (Kezar, 2001, p. 84). The employees feel much more attached with the management and this makes them increase their work performance. Discipline and management of the employees makes the management style of China very much unique from that of managerial skills in the Western firms. Comparison of Private Chinese and Western Management Practice by using specific Chinese and Western firms Knowledge, insights and skills is the combination of intercultural management that are necessary for dealing adequately with national and regional cultures and differences. Several management levels within and between organisations are the differences between cultural. There are lots of similarities and differences between the managers all over the world. Similarities can be explained in terms of cultural variables. The factors are considered the most important influencing variables. The studies of cultural synergetic emphasize creating universally. The synergetic studies help the cross-cultural interaction and the positive uses of similarities and differences in creating both universal and in cultural management pattern (French, Rayner, Rees and Rumbles, 2011, pp. 26-29). The objective of synergetic study is to create trans-cultural structure and the processes which are used in Bangladesh foe maintaining an appropriate level of cultural. This study is to make understand a different set of question based on different set of assumptions. To make successful a theoretical framework for understanding the behaviour of the people in the organisation in that particular region, the mangers should effectively use the research of the cross-cultural management. This is necessary to of this study and to make understand the areas where further research is needed. Culture is a social behaviour that people use to interpret and generate experiences. This includes values, creates attitudes, and influences behaviour (Pettinger, 2010, p. 51). Culture also distinguishes one human group to form another, it also refer to any group it can be family, classroom, work unit, nation-state, or religion. Including management societal culture influences all the human activity, From time to time people modify their personal values, attitudes, beliefs and behaviours on respect what they adopt form the local pattern. Culture can also referred to the learned terms based on attitude, values and beliefs of a group of people. As people may belong to diverse groups they have different culture for example it can be based on gender, nationality, religion, ethnicity, work organisation and many more. The comparing of results with objectives and adjusting actions and plans which are needed is the process of measuring and correcting performance (Burns, 2012, p. 74). There are many differences to show all sorts of defining ways in which it have some outlining of some keys aspects in which the cultural diversity has been shown to impact the management organisational approaches which are central to the process of managing the business (Wilson, 2010, pp. 35-38). In west European countries quality is given more emphasis, the CEOs are having more international experience than other regions in this area. So the standards are more likely to be internationally standardised, we can take examples from the automobiles companies and as well from the sports ware companies (Jackson, Schuler and Werner, 2011, pp. 93-95). The automobiles companies can be Maybach, BMW and Rolls Royce who has meet the global standards and the sportswear organizations are like Nike, Puma and Adidas also launched the standards of the merchandise according to international level. The structure of the companies and the corporate governance are also meeting the international standards as well they have also established a high standard (Armstrong and Stephens, 2005, pp.182-184). Because of the high standards the company acquire more sustainability than the organisation in all other regions. The eastern country’s organisation is coming up now days; the international standards are more likely to meet. The Hong Kong, Singapore, Thailand and Malaysia are moving the market and it is necessary to meet the international standards for the eastern countries. Another step of controlling process is measuring the performance; the measurement of performance is constant, ongoing activity for most of the organisations. The European private equity firms found it difficult, to compound the misery, European corporate have been sitting on heap of cash, this have led to buyout firms and the advisors are to look further afield and explore it largely (Beardwell and Claydon, 2010, p. 262). Over some years ago, UK private equity firm sold out Lion capital at 60% of stake in cereal maker to Chinese conglomerate Bright food and it valued the company at £1.2 billion. Asian buyers have played a significant role in private equity exists. For the Japanese the domestic growth is low, and there include an ageing population whereas for the Chinese there is no such problem and it is about to find the western companies so that they can import to satisfy their domestic growth (Guest, 2007, p. 336). Managers in china should pay more attention to the staff and colleagues than the managers in any other forms of cultural. The challenges for multinational companies in china are intensified because the generation born was 1980s and began to take on managerial responsibility. China should keep capable staff so as from becoming detached, demotivated, and reluctant to share important information from the interaction with the customers as well as suppliers who are towards the goal in a spirit of communal respect there is commitment that makes it even more important to select the leaders (Marchington and Wilkinson, 2008, pp. 79-81). Evaluation of the Chinese firms being competitive The Chinese firms comprises of very strict rules and regulations. The country is the largest economy and it is quite obvious that the Chinese firms would desire for expanding into the global markets. The Chinese companies do not focus much on the type of benefits they are offering. The strategy that is adopted by the Chinese companies is of a ‘me-too’ strategy. They do not believe in doing something very much unique but they work like the other enterprises and utilize their capability to establish a significant market position so that they can promote their products and services to specific economic sectors and obtain maximum profits (Hajdini, 2010, pp. 42-43). The major competitive advantage that the Chinese firm has is in terms of availability of cheap labour and the technological expertise that is possessed by the firms. Even the employees follow their leaders and try to enhance their performance level as per the guidance given by their leaders (Leopold, Harris and Watson, 2005, pp. 74-75). The major advantage that the firm holds is in terms of obedient employees and less of rivalry in the companies in the form of very strong competition. On the contrary the management structure is so firm that it results into more of exploitation of the workers in order to reduce the overall cost of the operations and perform in a more competitive way. Competitive advantage can only be achieved by a firm in terms of the quality of the products and services they are offering or the workforce they are possessing (Kay, 1993, pp. 103-104). It has been stated that the human resource forms the major competitive advantage because if the workers are productive than they would deliver the best of performance and that would ultimately be beneficial for the firm in term of high profit margins and revenue generation. In this case the major advantage that the Chinese firms have is that of parental and disciplined organizational structure. The disciplined structure helps in providing a formal and more organized format of the business operations. The employees are very much cautious in the Chinese firms that if they do not perform up to the mark or fail to obey the instructions of their leaders than they would be subjected to punishments (Kochan and Barocci, 1985, pp. 65-66). There is a procedure of encouragement of the employees in regards to being a part of the group and even discouraged by the management on initiating fierce competition that would disrupt the harmony of the organization and result into conflict. The firms obtain the competitive advantages in the form of low labour and the innovation practices (Lundy and Cowling, 1996, pp. 142-143). Chinese firms has also achieved the advantages in terms of following an autocratic style but these practices were suitable for the initial years but now the scenario is changing and to obtain a competitive advantage it has become very much important that the companies focus more on involving the employees towards strategic decision making. This autocratic approach of the Chinese firms provides the major competitive advantage in the form of following a direct line of control from top to bottom. This allows the management to have the overall control of the business operations and identify the loopholes that needs to be immediately improved so as to facilitate higher performance level (Paauwe, 2004, pp. 115-116). The manufacturing firms in China possess the major competitive advantage in the form of availability of cheap labour and even the best of technological practices so as to deliver the best of final products to the customers at the cheapest price. The employees under the Chinese management have a very low turnover rate this is simple because the management takes good care of not only the professional lives of the employees but offers subsidy to its employees on various material necessities. The fatherly role of the leaders helps to achieve respect from its employees and even try to allocate specific tasks to its subordinates depending on their capabilities. The effort by the leaders in the China firms is always focused on developing harmony in the working environment this in turn makes the employees be highly satisfied with the working environment and yield the best of results. The productive employees and continuous support from the management facilitates the growth of the Chinese firms and makes it a competitive advantage in order to sustain in a globalized economy (Bratton and Gold, 2012, pp. 269-271). The one way communication facilitates in an increased performance level of the employees by effectively following the instructions and even incorporating the workers into any kind of major decision taking related to their working conditions. The satisfied employees make the Chinese firm be competitive and secure growth and even continuously opt for new approaches to improve upon the practices. Type of management practices is more competitive and better– Chinese or Western, using appropriate principles and theory. Conflicts management are the various processes which covers the requirement of stopping and preventing over the conflicts and the parties involved are reached at the durable peaceful settlement of their own differences. Culture are defined in this paper, may be a significant role to influences in any conflicts which are being closely associated with the notion if identity. Despite if any importance of a person’s individual identity. It is a commonly used group which regards the phenomenon. At every level of an organisation there should be teamwork and leadership required for the success of that particular organisation (Snell and Bohlander, 2012, p. 118). Leadership and teamwork is always critical to the organisation, but it has invented much new significance in this recent years. The management has large established enterprises to create a range of multi challenges for the general manager. These issues are distinct, they are very much intertwined, the management has lots of emerging enterprises such as small, new, entrepreneurial organisations which create a range multi challenges for the organisation or for the first generation. Establishing an emerging organisation to its unique business model or value proportion which is often the overriding preoccupation, but in a new, small organisation, the managers are needed to understand the development of the internal workings of a firm. Those can be the knowledge of how it can be assess and create a strategy, and how can it take in to account for ever increasing globalisation while the issues are distinct in nature and are very intertwined (Wilton, 2013, pp. 227-230). The courses stress that the life of organisational is built around a complex interplay of social sciences. After the study it should know how to develop and implement organisational designs and human resources system that can achieve the competitive advantages throughout the management people. As the next part of the course provide stress and deep, persistent cross national differences in the economics, political, sociology, psychology and the political economy. The course has its three parts in which it deals with the fundamental issues of strategy, examining issues and about the long and short- term competitive position of enterprises. It is unique since there are no classrooms meetings, all meetings are to be done in the professor’s office in small groups of 4-6; the students’ teams are work with all the facilities from the faculties and the host managers to construct the innovative solutions for the real- time issues. The nature of the solutions are integrative and cross-functional, the course can encourages creative thinking and uses cutting edge ideas like the game theory, measuring changes to brand equity, and non market cap equity. The emphasis is placed on teaching students how to frame unstructured business so as to convince others for the course. This course is mainly focused on the competitive strategy of the firm and examines the issues to the central so as to long and short-term competitive position. This set up an analytical framework of the study which enables the students to explain the performance differences among firms and provide a structure to the studied part. Conclusion China has been communicating and performing various transactions with other countries. China tries to blends its own managerial styles with those of the western management styles. China differs with the west in terms of values and cultures. Chinese management is regarded as parental style whereas Western management is a democratic style. Management style in the West and China are totally different as their goals and objectives are different and are influenced more by the cultures and values of the people. In Chinese enterprises there exists a parallel management system. It is often termed as a two carriage system. The unique features of the china’s management is that the management acts as good parent’s taking very good care of their entire family or the enterprise. Salary structure that is followed in Chinese firms is also unique it is divided in 4 major parts-basic salary, bonus, seniority salary and subsidy. Chinese firms comprises of very strict rules and regulations. Knowledge and skills is the combination of inter cultural adequately with national and regional cultures and differences, for Japanese the domestic growth is low, there include ageing population whereas for the Chinese these is so such problem. China should keep competent staff so as from becoming detached, demotivated to share important information from the interaction with the customers and the suppliers who are towards the goal in a spirit of mutual respect. Chinese companies adopt a strategy of a me-too strategy, they do not believe in doing something very much unique but work likes others and utilises their capabilities to establish a significant market position and promote their product and services to specific economic sectors and obtain maximum profits. Major advantages of Chinese firm are the availability of cheap labour and the technological expertise that is possessed by the firms. Major advantages the Chinese firms have are that of parental and disciplined organisational structure. Chinese firms do not perform up to the mark or fail to obey the instruction of the leaders which results in punishments. Chinese firms follow a direct line of control firm top to bottom; employees under Chinese management have a very low turnover rate that is simple because management takes good care. Chinese firms make it competitive advantages in order to sustain in a globalised economy. In Chinese firms the management life is built under around complex interplay of social forces. The purpose of this course is to provide a framework for doing the analysing the impact of these social forces for the individuals at the organisation. The concept which is covered in this paper will help to understand the Chinese’s firm and how it is different from the western management. 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