Culture And Business In China And Uk Management Essay

One phenomenon that we may state is the most dominant in the universe today is the globalisation, which has had far making impacts on our lives. One aspect of globalisation is the international trade and investing i.e. exports, imports, transnational and multinational houses, foreign direct investing, regional and economic confederations etc which means the interaction of diverse people with different civilizations, faiths and beliefs is most common in work topographic points. The directors, excessively, have to cover with multiple cultural and cultural groups. It is of import to acknowledge and appreciate that people from different civilizations differ enormously in their personalities, perceptual experiences, traffics, outlooks etc and therefore must be treated consequently.

Culture and concern forms are ever interrelated. Man tends to make an environment at his work topographic point that is nighest to the ambiance in which he had grown up all his life. Equally far as working at local and national degrees is concerned, it faces no job due to the invasion of any foreign civilization. However, whenever an international organisation starts working in a foreign state, it becomes the premier concern whether to follow its ain national cultural values, or the values of the host state, or the 1s that are neutrally and internationally acceptable.

When we talk about cultural diverseness in the concern context, China and U.K may be one of the most diverse you can acquire. “ The jobs involved are considered exponentially greater when there are significant institutional differences and ‘cultural distance ‘ between the host state and a transnational house ‘s parent state, as is assumed to be the instance for Western houses runing in mainland China ” ( Gamble,2006 ) .


Particularly in a state with complex civilizations and traditions in the concern society as China where the workers consider it immoral to divert from their ain roots, the job grows worse. It is said that the Chinese organisational civilization is deeply rooted in the province civilization. “ If you want to win in making concern in China, you have to cognize the Chinese civilization. ” ( Zhou-Sivunen, 2005 ) . Therefore, all the international houses puting in China have to do certain that their working environment and human resource direction values conform to the national civilization closely. This is the basic ground why UKStore ‘s successful execution of the international HRM values in China and their meeting with people ‘s immediate and willing credence has caused surprise among the international concern circles. To understand the basic schemes that this concatenation shop had used every bit good as the grounds for their credence from the local staff, it would be better to distinguish the organisational civilization of UKStore to that of China ‘s ain local endeavors.

UKSTORE ‘S Organizational Culture:

Other than the fact that civilization and organisation is closely related to China, the UKStore had introduced the international civilization successfully. It is said that the company had started in 1999 and it had hired two exiles to function it as adjunct shop director and shop directors, neither of whom had any cognition of the state and its concern civilization. Yet they were successful in carry throughing their responsibilities, and so in the ulterior twelvemonth, local staff was hired to widen the concatenation. From so, the organisation is entering uninterrupted success in the concern sector, having specifically a work environment where work force feels willing to work. The critics feel astonish at the fact that the local staff of this organisation experience so much safe and secure in this occupation that most of the workers have expressed their desire to go on functioning the organisation on long-terms contrary to their local five-year planning. The main characteristics of the organisational civilization of this concatenation store make it different from other local houses are as follows:

The organisation has set up certain office direction techniques that allow an easy entree to the directors of the peculiar section. This is unlike the local Chinese houses where 1 has to acquire permission to run into the caput of the section. The directors of each section are set in the unfastened topographic point offices where anybody can make easy. This creates a trust-your-boss ambiance that makes it rather different from the local organisations.

One of the greatest differences between the organisational civilization of UKStore and that of China ‘s state-owned companies is that UKStore has introduced level organisational construction in its organisation. Though there are people working in assorted classs ensuing in the high quality of some over others, there is non such superior-inferior ambiance prevalent here. There is a harmonious relationship between the workers and with their higher-ups. They trust each other and give regard. This leads to such a productive and constructive working environment that is rather different from that of the local Chinese houses ‘ organisational civilization where a solid hierarchy system is followed.

The level organisational construction is farther emphasized by the usage of individual position unvarying across the organisation. There is no differentiation of position between the workers as all wear the same frocks of the same coloring material. This minimizes the distance between the workers even more. This pattern is non applicable to other local Chinese houses where every class of workers has a separate coloring material of uniform to do him distinctive among the batch.

The organisation has promoted an organisational civilization with day-to-day storewide forenoon briefing Sessionss. These Sessionss are held by the directors of the peculiar sections who keep the workers cognizant of the ends that they have to obtain every bit good as the challenges that they may hold to confront. Furthermore, the workers are besides taken into assurance sing the newer merchandises that the shop launches or the newer engineering it hires. In this manner, the workers are made to experience themselves as of import and worthy portion of the organisation. The local Chinese organisations do non keep any such Sessionss that lead to the communicating spread between the officers and the workers.

UKStore has established its reputation for giving an ear to the sentiments and suggestions of the lower staff. During the day-to-day forenoon Sessionss and briefings, the workers are made free to portion their appraisals every bit good as opinions of the freshly introduced or regular class of work. The local Chinese state-owned organisations do non let the lower laborers to give words to their sentiments.

UKStore has besides introduced the construct of the out-of-work leisure activities in which all the staff has to take part including officers and workers, both local and exile. Everyone participates in such merriment activities that are particularly popular among the single and immature staff. At one manus such activities allow workers to cognize each others, these allow the exiles to unify with the local workers without any vacillation.

The candor between the workers is maintained by the debut of the first name civilization within the organisation. Unlike local Chinese shops, the workers at UKStore are asked to name each other by their Christian names. This farther minimizes the feel of ill will that workers normally face while reaching their higher-ups.

This organisation has hired a really low figure of workers and hence, they are to make more work. However, this has been compensated with higher rewards and other installations that make the work profitable and attractive to the workers and they do non desire to go forth their occupations. Chinese organisations offer less work force per unit area with lower wages.

Furthermore, the company has non allowed any kind of favoritism to come in the manner of person ‘s advancement and publicity. The personal abilities and public presentations of the workers are regarded as the exclusive factors upon which their publicity, rise in salary and the proviso of other installations are dependent. On the other manus, the workers at the local houses frequently complain against the unfair favoritism to impede their publicity and growing.

UKStore besides arranges developing plans to supply the on the job persons with better chances to turn and develop. They are provided with interesting inducements that make them all the more interested to function the company.

Unanimity of direction has besides minimized the menace of brotherhood force influences upon the development of the company. This makes the organisation grow without any unreasonable demands from the labour brotherhoods. However, the local Chinese houses ever face the brotherhood strikes that consequence in doing loss to the organisation.


The national civilizations of states govern the personal civilization of the employees, which in bend affect the organisational civilization as a whole. ”there are strong cultural factors which limit the acceptance of many characteristics of HRM in China ‘ .

China being a Communist regulation is a collectivized society. The Chinese frequently view themselves as interdependent or collectivism-oriented, i.e. , accent on society instead than on single. ( Tian, 2007,56 ) Chinese references begin from bigger topographic points to little topographic points while western references are merely the antonym.

Family names come foremost. The Bolshevism is a manifest to the committedness to households and dealingss. This translates into the hiring processes of the administrations as largely members of the household are hired and favoritism and nepotism govern the procedure. The Chinese employees are, nevertheless, more loyal and committed to the organisations. This is besides apparent in the fact that they respect their traditions and there is a opposition to alter in organisational civilizations which Gamble calls the ‘inertia ‘ as the conformity becomes deep rooted in the heads and actions of the employees. Once it becomes an built-in portion of a individual ‘s head set, they become hard to change/alter. Guanxi is besides an of import factor for constructing relationships and gift giving in concerns is encouraged. UK, on the other manus, is a more individualistic society nationally, and hence organisations value clip and individualism of employees, with the focal point being on extrinsic factors. Lesser committedness to civilizations and an credence to alter indicate that UK houses are larning and unfastened civilizations, which respond to the volatile markets by flexibly originating and implementing the alterations.

China ‘s national civilization of high power distance is apparent in Chinese SOEs where the organisations have a centralised construction with strong hierarchies and single behavior is guided by the authorization and regard. This means non merely a centralised organisational civilization, but besides clearly defined functions and the fact that determination devising is retained at the top. The stringency in conformity to the undertakings and processs do non allow the organisations be flexible. There is small employee development due to the purely regimented construction. It does non let employees room to develop their accomplishments beyond a well defined undertaking. The wagess in compensations in China are normally based on functions and appellations, nevertheless this is now altering bit by bit to public presentation related pays.In contrast, UK organisations are flatter, with a greater accent on coaction and squad work. The persons are involved in determination devising, and the occupation designs are flexible and enriched.

Promotions and assessments in Chinese SOEs are entirely dependent on senior status and connexions. There is no weight age given to the accomplishments and abilities of the employees, nor is their public presentation of any importance. Therefore, the administration cultures promote doing connexions instead than operative efficiency which would profit the administration themselves finally. The Chinese civilization is in itself a barrier to an efficient public presentation based administration.

The UK based national civilization is free from such cultural patterns and hence, offer a free and more unfastened work environment.

China is a society is male oriented, with adult females non given regard every bit much as in the western societies. Besides, penchant is given to a male kid over female. This is true foe Chinese concerns every bit good, and male group leaders, foremans etc are by and large preferred. United kingdom on the other manus, is an equal chance employer, and the hiring is based on the accomplishments of the employees, instead than the gender.

The committedness to Chinese traditional values of Bolshevism, power distance and regard of authorization in China means wage, working conditions and chances of preparation and publicities in UK shops are higher than the Chinese SOEs. Besides, the Chinese civilization of sing relationships and group coherence has translated into the reluctance of following a direct attack to making concern and dependance on intermediary or being introduced to the party of concern. Guanxi/personal connexion plays a critical function in acquiring things accomplished in Chinese civilization and gift giving is a norm while making concern. However, such Acts of the Apostless are considered a payoff in civilizations such as that of UK.

Since the national civilization of China is really strong, it influences the civilizations of the SOEs in China. Although, Bolshevism instils interpersonal relationships among coworkers, this is marred with the competitions due to favoritism. UK, as a state, is a low context civilization, and civilization does non encroach upon the organisational civilizations. The administrations built their ain construction, design and civilization which means they are more harmonious, flexible and easy to work in. The power distance in Chinese civilizations besides mean that single work on their ain undertakings and there is lesser disposition to squad work. The power distance and hierarchies besides translate into clearly demarcated spheres in the Chinese civilization as a Chinese employee relates, “ In my old occupation it was, ‘I ‘m a leader, you ‘re a worker ‘ , it was a really clear divide ” .

The leaders/supervisors in UK shops are much more accessible, and the employee-boss dealingss tend to be friendly and affable as an employee by and large regard UK directors to be more polite and easy to work with. The work dealingss are more equal, and there is no divide between the higher-ups and the sub-ordinates. Employees besides feel that distance between leaders and workers is minimum in UK houses and there is intimacy and bonding with the co-workers.

To reason, it may be said that while national civilizations doubtless ”generate sensitivities towards certain behavioural forms ” ( Child & A ; MarkoA?czy, 1993, p. 622 ) , it is apparent that alterations to structural and organisational characteristics can hold an impact on seemingly deep-seated cultural values ( Gamble, 2006 ) . Therefore although the national civilization remains an of import hindrance to the development of a pure organisational civilization, the civilizations continue to germinate and determine harmonizing to the demands. Although inactiveness may be keeping up the gait of the alteration, but finally alterations do do themselves felt, both in national and organisational civilizations. There is a changeless redefining of the civilizations as organisations face a passage to a globalized economic system, with a diversified work force and with the fluctuating norms and beliefs. China is bit by bit switching from its traditional ways to more modern-day values, which are a consequence from the more unfastened, western civilization influence due to globalisation. . China is undergoing social alterations as the population is acquiring more educated from foreign schools, and as local establishments are following more modern-day educational course of study. Besides, other strong national civilizations in the universe are non inactive and go on to germinate with the transition of clip. Therefore, the organisational civilizations might every bit good reign is supreme in times to come with credence in more transnational patterns. The strong multinational and multinational houses do impact the concern patterns of the local houses, when their patterns are known to be better, more seasoned and more successful. Besides, the go oning development of planetary economic systems means that national civilizations have to follow in order to be making good in this epoch of volatility.