China’s Cultural Differences and Leadership

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Table of Contents

Introduction
Expectations of Chinese Workers for their Leaders
Qualities, Characteristics, and Behaviors of Successful Chinese Managers
Business/Cultural Norms that shape Chinese Managerial Behavior
The difference in Management Style between America and China
Conclusion
References

Introduction

Business leadership skills are largely influenced by culture because a leader often reflects the people he or she is leading. While personal leadership traits are important in shaping leadership skills, a favorable culture is equally important. A counterproductive culture affects a leader’s ability to get things done. This assignment will demonstrate how cultural differences that are founded on geographic locality can affect leadership skills. The paper will be written from the perspective of a manager of a company’s branch that is located in the Midwest United States. The company plans to transfer the manager to head an overseas division in China. Before embarking on this mission, it will be important to understand what Chinese workers expect of a leader. This awareness is important because it influences an individual’s leadership effectiveness.

While the manager has successfully guided workers in the Midwest branch for five years, it would be erroneous to assume that his or her experience with Chinese employees will be a mere reflection of the Midwest. This paper will illustrate the cultural expectations of Chinese workers by taking into account what they consider successful leadership traits in their managers. In addition, the paper will examine cultural norms that shape managerial behavior and then describe how the manager’s American managerial style differs from Chinese expectations.

Expectations of Chinese Workers for their Leaders

American business leaders have experienced stiff opposition from Chinese workers because they fail to relate to the existing leadership culture in the country. Paine (2010) observes that expatriate managers to China often lack the repertoire of skills required to work in the country. One of the important traits that executives who wish to work in China must master is the ability to relate to workers at a personal level (Feldman, 2014). Paine (2010) asserts that workers in China value a personable approach, for instance, when the executive displays a caring attitude. Chinese workers appreciate when managers show interest in their personal lives, as opposed to maintaining a strictly official attitude. Such an attitude is often repulsive to the Chinese workforce, especially if the leader is a foreigner (Feldman, 2014). Therefore, businesses often engage in community help programs such as improving infrastructure around where the industry is located. Such programs may promote employees’ responsiveness toward the goals of the company (Yang, 2016).

Yang (2016) argues that Chinese workers are more predisposed to obeying people in higher authority compared to employees in the West. This attitude is shaped by the Confucian approach to leadership where people expect the leader to be authoritative. Rau, Liu, Juzek, and Nowacki (2013) reveal that leadership in China assumes the “high power distance” approach, which requires managers to maintain a proper distance from their employees while building a sustainable relationship. This situation is different from the low power distance of the West (Rau et al., 2013). Unequal distribution of power in China is taken positively as the gateway to influencing subordinates. Hence, employees in China will be responsive and motivated by a leader who appears powerful (Rau et al., 2013).

Qualities, Characteristics, and Behaviors of Successful Chinese Managers

Successful Chinese managers demonstrate exceptional skills in social responsibility (Yang, 2016).They conduct business in a manner that is responsive to the needs of the surrounding community. In addition, they strive to improve the environment. Rau et al. (2013) assert that CEOs deliberately refuse to engage in unfair business practices sometimes if they are perceived to be detrimental to the industry and society. Rau et al.’s (2013) illustration may be seen as a sharp contrast to the profit-oriented culture of businesses in the West. It is usual for Chinese companies to limit their profits voluntarily for the benefit of the society and the industry in which they operate.

Community responsiveness is highly valued in the Chinese environment. Businesses are judged according to their efforts to promote social welfare. Paine (2010) observes that cooperating with the government is essential if a leader is to succeed in the Chinese environment. Successful Chinese managers understand this fact. Therefore, they strive to work hand in hand with the government. Aligning the company’s strategic plan with the country’s goals is seen as a behavior that promotes business success in the Chinese environment (Feldman, 2014). Despite the opening up of the Chinese market, the government still largely controls how business is conducted in the private sector.

Another important behavior of successful Chinese managers is the ability to work in a complex business environment while maintaining clear priorities (Cheng, Yip, &Yeung, 2012). Chinese managers often have to operate in an increasingly complex environment involving multiparty negotiations, as well as varying demands from the local and national government. Additionally, China as a country is often torn between its communist and capitalist inclinations.

Therefore, the unpredictable environment calls for a degree of flexibility on the part of business leaders. However, Cheng et al. (2012) observe that too much flexibility in business may mean compromising the output every time, thus leading to low business achievement. Successful business leaders in the Chinese environment combine flexibility with the ability to turn down opportunities that do not add value to their business. They are able to define clear strategic, operational, ethical, and personal priorities, which they observe (Cheng et al., 2012).

Successful Chinese managers recognize the need for continuous self-improvement. They avoid complacency, instead of working to hone their leadership skills at all times (Susanto & Susanto, 2013). This competency is built on the ability to examine one’s traits, particularly observing aspects of personal behavior that need improvement. The Chinese business environment is highly dynamic and complex. This situation challenges leaders to engage in continuous efforts to gain skills that match the evolving environment. Leaders who engage in self-improvement exercises often ask for feedback and advice regarding both business results and personal behavior (Susanto & Susanto, 2013). Additionally, these leaders organize teams for conducting self-reflection. They embark on implementing changes based on the outcomes of the self-reflection. In addition, being able to control one’s moods and emotions is considered a successful leadership trait in the Chinese business environment.

Business/Cultural Norms that shape Chinese Managerial Behavior

As observed earlier, the Chinese business environment is the result of many factors that are constantly in play. One of these key factors is the Confucian idea of leadership, which has dominated most of China’s history (Rau et al., 2013). Nie (2016) asserts that leaders who demonstrate superhero characteristics are often selected for promotion, reflecting the hands-on leadership approach that is common in China. Nie (2016) further argues that most Chinese businesses lack the mechanism for delegation of tasks, a situation that encourages this hands-on leadership approach. Henning (2013) reveals how Chinese culture is influenced by a combination of Taoism, Buddhism, and Confucianism, as well as western and communist values. The result of all these factors is an environment that requires business leaders to possess hands-on skills.

Björkstén and Hägglund (2010) reveal that the public image or “face” is highly valued in China. ‘Giving face’ is an important force that shapes managerial behavior in China. This attitude arises from the Confucian belief that society should work toward creating harmony (Irwin, 2012). If a person is made to ‘appear good’ in a social setup, it is a show of mutual respect between the two parties. For instance, a leader can give a face to the subordinate through listening and responding in a positive manner (Irwin, 2012). Conversely, losing face occurs where one party, usually the leader, shows insensitivity toward a subordinate.

Publicly admonishing an employee in the Chinese environment is considered inappropriate. As a result, Chinese workers expect their leaders to be compromising and respectful. Western leaders often encounter opposition when they attempt to correct Chinese workers in the presence of colleagues. Leaders in the Chinese environment quickly learn the importance of giving a face to others. Irwin (2012) asserts that the Chinese language contains numerous phrases that relate to feelings associated with losing face. Therefore, it is not surprising that successful Chinese leaders have perfected the art of interacting with workers at a personal level.

Uncertainty avoidance is another factor that shapes managerial behavior in China. Uncertainty evasion is the tendency of society to circumvent uncomfortable or unpredictable situations. In the business arrangement, uncertainty avoidance may be illustrated where the top management fails to pursue a project because its outcomes are not predictable (Irwin, 2012). Chinese culture encourages this concept of uncertainty evasion. The result of this attitude is that leaders control the situation and hence less likely to delegate duties to junior employees.

The difference in Management Style between America and China

The American leadership style follows the culture of individuality and autonomy. Individual goals are viewed more importantly relative to collective responsibility (Fu, Lao, Strohl, & Szalay, 2013). Individuality is believed to encourage individuals to be goal-driven or ambitious. The individuality of the West bears a sharp contrast to the collectivism of China. According to Rau et al. (2013), Chinese managers evaluate their actions based on how they are viewed by other people. For instance, decisions are viewed based on how they are likely to affect family, friends, and colleagues (Fu et al., 2013). Therefore, the ‘greater good’ is valued above personal gain in China. The difference in attitude often results in conflict between western businesses and the Chinese hosts. While American businesses are profit driven, Chinese culture calls for high community responsiveness. Thus, leaders who have worked in the West for a long time are likely to face opposition because of their inherent attitude of striving for business success.

The Chinese consider the American mode of communication to be rather upfront. The straightforwardness can hurt the feelings of the Chinese people (Irwin, 2012). For instance, while an American manager is used to admonishing employees publicly when they make mistakes, this correctional approach will most likely be viewed negatively in China. As stated earlier, the Chinese value ‘face’ and would appreciate being admonished privately. In addition, while disagreeing freely is a show of leadership strength in the West, the same is viewed as disrespectful in China (Björkstén & Hägglund, 2010). The Chinese usually just nod when they are in disagreement with one’s opinion instead of expressly voicing their dissent (Irwin, 2012). In addition, while self-promotion is tolerated in America, it is frowned upon in Chinese culture.

American leadership style encourages profit-centrism. Leadership success is evaluated based on one’s ability to drive the business to success. In contrast, economic relationships in China follow strong social networks or Guanxi. The difference in leadership approaches (high and low power distance) often proves challenging to managers from the West since they are used to collaborating with their employees in solving problems. In China, employees expect the leader to direct them on the way forward. They do not particularly value being consulted. To be successful in the Chinese environment, the American manager must learn how Guanxi works. For instance, Confucianism makes it possible for a junior employee to call upon his or her superior for favors (Yang, 2016). The superior individual must respond positively. At the same time, the superior must maintain his or her power distance from the employee.

Conclusion

Leadership skills in America and China differ considerably. While profitability is highly valued and recognized as the measure of success, Chinese businesses are evaluated based on their ability to influence the surrounding environment positively. Leadership also follows the high power distance approach, as opposed to the low distance approach of the West. Guanxi for its part encourages the building of social networks, as opposed to personal development. “Face” is yet another unique concept that shapes leadership behavior in China. It sets it apart from the western leadership approach. Therefore, American leaders who wish to succeed in the Chinese environment must engage in efforts to learn the Chinese culture.

References

Alvesson, M. (2012). Understanding organizational culture. Los Angeles, London: Sage.

Björkstén, J., & Hägglund, A. (2010). How to manage a successful business in China. Singapore: World Scientific.

Cheng, T., Yip, F., & Yeung, A. (2012). Supply risk management via guanxi in the Chinese business context: the buyer’s perspective. International Journal of Production Economics, 139(1), 3-13.

Feldman, S. P. (2014). Trouble in the middle: American–Chinese business relations, culture, conflict, and ethics”. International Journal of Organizational Innovation, 7(1), 6-14.

Fu, L., Lao, P. S., Strohl, J. B., & Szalay, L. B. (2013). American and Chinese perceptions and belief systems: A People’s Republic of China-Taiwanese comparison. Berlin, Germany: Springer Science & Business Media.

Henning, A. (2013). The ethical background of business in China. London, UK: Palgrave Macmillan.

Irwin, J. (2012). Doing business in China: An overview of ethical aspects. Web.

Nie, D. (2016). Culture matters: The leader-follower relationship in the Chinese organizational context. Web.

Paine, L. S. (2010).The globe: The China rules. Web.

Rau, P., Liu, J., Juzek, C., & Nowacki, C. R. (2013). Fostering job satisfaction and motivation through power distance: A study of German expatriates’ leadership in China. Global Business and Management Research, 5(4), 161-170.

Susanto, A. B., & Susanto, P. (2013). The dragon network: Inside stories of the most successful Chinese family businesses. Hoboken, NJ: John Wiley & Sons.

Yang, C. L. (2016). Chinese philosophy, values, and culture. New York, NY: Springer.

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