AM Lecture 2

Cultural context

Fang and Hall argue that this traditional form of management is Confucian based, which it itself founded on harmony, hierarchy, and humanness. Respect for the hierarchy is two-dimensional and extremely important In addition, relationships are built between the enterprise and the State and within the enterprise.

Hofstede defined the Chinese culture in terms of:

• Power Distance - Chinese culture has high power distance, meaning that there are vast inequalities of power and wealth. In societies such as these, there is more likely to be a strict caste system that does not allow upward mobility of its citizens
• Uncertainty Avoidance - in China, they have have high uncertainty avoidance, implying their low tolerance to uncertainty and ambiguity. This creates a rule-orientated society that institutes laws, rules, regulations, and controls in order to reduce the amount of uncertainty and change
• Individualism - China is quite collectivist, scoring low on the individualist scale. This indicates close ties between individuals and that the culture reinforces extended families and collectives where everyone takes responsibility for fellow members of their group.

These results are the opposite for what's needed to change an organisation, meaning that motivation to change is weak.

Chinese management and tradition

Sinoelectronics - Case study

Other studies and remarks on Chinese management

Conclusions