The Culture Shock of Conducting Business with the Chinese, written by Moe Skinner

How to Effectively Communicate in Business with the Chinese

     Working abroad can benefit one's career on numerous levels, but with the rewards also follows a great amount of understanding and adapting within that culture. I have researched information pertaining to the Chinese cultural differences in business practices in order to communicate effectively with potential Chinese business partners.

    

 Dutch social psychologist, and author of several publications on global culture, Gerard Hofstede designed a model to measure an individual country's tolerances, behaviors, and expectations in the work place.

        

(GERARD HOFSTEDE)

https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&es_th=1&ie=UTF-8#safe=off&q=hofstede

PHOTO FROM WEBSITE

    

  I will focus on two topics; power distance and uncertainty avoidance in China, and use measurements provided by Hofstede's model. I will define each topic, give brief examples of work place scenarios, and compare statistics between the United States and China.    

                                   Let's first define power distance:

 The degree in which a society recognizes and accepts that power is divided unequally.           

     Another words, how well do people concede and adapt to working for the hierarchy? Do they follow strict guide lines where creativity or self-expression is virtually mute? Or, are they free to propel their careers in to infinity with imagination & experimentation? The higher the PDI level, the less room for personal vision in the work place.

FLAGS FROM ACROSS THE WORLD

 Many cultures differ, and before you attempt to pursue a career in a foreign land you should first gain an overall view of the customs, behaviors; including verbal and non-verbal, and expectations of said country. 

Let's look at a graph that measures the Power Distance between the U.S. & China

    

    When we examine China's PDI rating of over 80, we can expect that rank is extremely important. Respect towards superiors in the work place is demanded.

   Unlike China, the U.S. has a PDI rating of just above 40.This number reflects a contrast to the working environment conditions Americans have grown a custom to. Employers and managers are often challenged by a worker's drive & performance.  

                                                   

                          In America, Respect is Earned and not Given!

     According to Dr. Matthew Earnhardt, author of; The Successful Expatriate Leader in China, in high PDI working environments, like China, the hierarchy demand respect as well as loyalty.

                                    

                          You can read Earnhardt's article on line @:

                            http://gbr.pepperdine.edu/2010/08/the-successful-expatriate-leader-in-china/

                                                         (PHOTO FROM WEBSITE)

     In China, there is a clear line that distinguishes superiors from the common worker. At the same time, the Chinese practice a tradition known as "Guanxi".

               http://www.worldlearnerchinese.com/content/what-guanxi

 This means by default of Chinese culture, the Chinese develop relationships and rationalize business decisions based on exchanging favors and connections that benefit all parties involved. The tradition also allows the blue-collar worker or subordinate employee to call upon superiors for assistance and the brass is expected to aid workers that rank beneath them.

             Chinese supervisors and managers ride a double edge sword. 

 BOSSES MUST                

1.  ESTABLISH SUPREMACY                                           
2.  MAINTAIN RESPECT FROM LOWER RANKS             
3.  HAVE THE ANSWERS/ JUST ANSWERING WITH AN "I DON'T KNOW" LOSES RESPECT IN THE WORKPLACE

   < simultaneously > 

BOSSES MUST 

1. BUILD RELATIONSHIPS
2. SUBSCRIBE TO THE THEORY OF HELPING THE WORKER FOR THE COMPANY'S BENEFIT

Jasonkim29, blogger, on wordpress.com wrote about customs in Chinese business gatherings. 

For example, it is customary to seek out someone of higher rank and greet them first.

                                                                      (PHOTO FROM WEBSITE)

                                    http://jasonkim29.wordpress.com/2012/10/09/power-distance-and-uncertainty-avoidance-in-china-2/

 If a meal is served, one must wait to eat until the hierarchy has begun to eat. 

  Now that we have a little insight about the traditions in power distance in the work place operations, let's take a look at uncertainty avoidance in both countries and give a definition and brief examples.  

 

HEADS OR TAILS

                  UNCERTAINTY AVOIDANCE: 

The extent in which people in a community feel uncomfortable or threatened with risky or questionable situations and the steps they take to avoid them. 

In cultures with high numbers in UAI, the population is apprehensive about the future. Their stress levels are higher, and change is abnormal. Due to these conditions, these cultures have strict rules for interacting socially. The Chinese government has stringent legislation to curb unacceptable social conduct. The Chinese are notorious for public executions. 

 The Chinese prefer to build relationships with companies they trust. 

                        

              Loyalty is a must!     Risk Taking is unacceptable!

                   

  One must prove competency as well as express devotion in the Chinese workplace before trust can start to build. Showing interest in building a bond with a Chinese business associate, will help establish a friendship, and will help to ensure future positive business ventures together.

Earnhardt described an uncomfortable work situation involving Heather, an expatriate HR manager for a U.S. company. She reported to her superior, Mr. Liu, a Chinese manager.  

Liu had qualities that exhibited high uncertainty avoidance. Liu would not give up control on projects because he didn't know Heather and didn't believe in her. In his eyes, placing Heather in control would have jeopardized the company. 

Heather didn't understand the cultural differences and didn't know the proper way to address the situation. She contacted headquarters and asked for their assistance in clarifying to Liu her duties and role in the work place. 

The hostile work place was created because of Heather's ignorance of the Chinese cultural traditions and beliefs abroad. Heather could have avoided the conflict by first researching Chinese cultures using Hofstede's models. With that information gained, Heather could have approached Liu in a way that would have been more beneficial to both.

On the flip side, in places where the UAI number is lower, people have a tendency to live a more passive lifestyle. Cultures easily adapt to change and risks are acceptable and often encouraged. In this culture competition is a given, standing out in good merit in beneficial, and, opposition to one's superiors is accepted.

In America, one can advance quite quickly in the work place. Several factors can come in play for this to happen, but none of them compare to the Chinese outline for advancement.

On the closing note, Jasonkim29 stresses the point of never visiting your Chinese partners empty handed. To impress your foreign colleagues, greet them with gifts such as wine and even cigarettes.