AM Lecture 3

International Management > Asian Management > Converging management? > Chinese management > Weaknesses > Guanxi > Guanxi guanxi everywhere... > More on CFBs > Ding & Akhtar's Matrix > Transfer abroad > Organisational culture change

Organisational culture change

Hoon-Halbauer (1999) suggests that when Sino-Foreign joint ventures are set up, the Chinese see three classes of change:

1. Structural - organisational/management/pay
2. Behavioural - skills/knowledge/leadership
3. Technological - machinery/co-ordination/integration

There are different standards in each company, so they need to make a plan to ensure the joint venture is successful.

Outcomes of change

A study of Beijing Jeep & Shanghai VW demonstrates some outcomes of organisational culture change in China:

• Anxiety
• Tension
• Resistance - people walked out

There were also 4 ambiguities -

1. Environmental - how people were to be placed in the hierarchy in China in comparison with in the US. There were also questions on whether it was ok to do certain things and who to ask for permission or help etc.
2. Structural
3. Cultural - there was some difficulty accepting the idea of giving orders to people older than yourself
4. Role

Cultures need to understand each other and this is relatively easy to do, as long as it's done correctly. It has worked in many cases, demonstrating the high adaptive ability of both Chinese and UK managers.