COLLECTIVISM VS.

INDIVIDUALISM

China has long been a family-run country. It has also been, and still is, primarily a rural nation. These two institutions, the family and the farm, are the core of China. Both the family and a rural environment are collectivist in nature. They depend on working together and aiming for harmony.

When Mao Ze Dong came into power, he reinforced the collectivist view by eliminating landowners and individualists and sending nearly everyone to work in collectivist communes. Thus, China has been more collectivist than individualist in both its ancient and modern history.

To be fair, there are many leaders in China today who believe that the days of collectivism in China will soon be gone. There are several reasons for this. One is that the one-child-policy, especially in the cities, has left us with many younger citizens who have been raised to believe that they hold a special place in the world. For sure, this kind of upbringing leads to individualism over collectivism

In business however, there are still many examples of collectivist thinking. A famous case was at Lenovo when the Chinese and American partners began to work together. Generally, the Chinese looked towards the team as the reason for the companys success. The Americans however, were trying to identify individual high performers. While I believe these differences eventually got worked out, the starting point was quite different for the two cultures.

In general, the Chinese are a collective society with a need for group affiliation, whether to their family, school, work group, or country. In order to maintain a sense of harmony, they will act with decorum at all times and will not do anything to cause someone else public embarrassment. They are willing to subjugate their own feelings for the good of the group. The focus on the team over the individual is an important difference from the West. A lesson to HR is to make sure that the focus is on the team as well as on specific

individuals. Westerners also need to be reminded to give credit to the team rather than to themselves, as many Chinese claim Westerners are quick to do. This is often observed by the use of silence in very structured meetings. If someone disagrees with what another person says, rather than disagree publicly, the person will remain quiet. This gives face to the other person, while speaking up would make both parties lose face. The fundamental issue addressed by this dimension is the degree of interdependence a society maintains among its members. The fundamental issue addressed by this dimension is the degree is the degree of interdependence a society maintains among its members. At a score of 20 China is highly collectivist culture where people act in the interest of the group and not necessarily of themselves. In-group considerations affect hiring and promotions with closer in-groups (such as family) are getting preferential treatment. Employee commitment to the organization (but not necessarily to the people in the organization) is low. Whereas relationships with colleagues are cooperative for in-groups they are cold or even hostile to out- groups. Personal relationships prevail over task and company.

POWER DISTANCE

The dimension deals with the fact that all individuals in societies are not equal it expresses that attitude of the culture towards these inequalities amongst us. Power distance is defined as the extent to which the less powerful members of institutions and organizations within a country except and accept that power is distributed unequally.

At 80 China sits in the higher rankings of PDI- i.e. a society that believes that inequalities amongst people are acceptable. The subordinate- superior relationship tends to be polarized and there is no defense against power abuse by superiors. Individuals are influenced by formal authority and sanctions are in general optimistic about peoples capacity for leadership initiative. People should not have aspirations beyond their rank.

China ranks high in power distance scale The modern Chinese language does not have different sets of tones to use depending on the social status of the speaker and receiver that Japanese and Korean do. However, social status is still a central theme to Chinese society; most Chinese refer to each other by their title and last name. Close friends may drop the title and substitute by their age difference .

The high power distance nature of the Chinese culture is also reflected by the frequent use of spokespersons or models in Chinese marketing to promote ownership appeal of a particular product. The perceived success and influence of a celebrity has tremendous effect on the Chinese audience. Organizations that target the older generations will often display pictures of company founders and leaders to appeal to this social value as well.

The modern Chinese language does not have different sets of tones to use depending on the social status of the speaker and receiver that Japanese and Korean do. However, social status is still a central theme to Chinese society: most Chinese refer to each other by their title and last name, such as manager Li. Close friends may drop the title and substitute by their age difference. Such as old Li.

Chinese are taught to totally respect hierarchy. As responsibility is granted to employees only at higher ranks, one often finds that almost all responsibility lies with the superior. Subordinates have practically no decision making

power. That means in a business context which requires cooperation between teams or even departments that issues have to be escalated very early. In case a Chinese employee feels that a request for information or a council require a lot of time or effort, it could be the case that these requests would be completely ignored as they come from an outsider. In case cooperation with a Chinese person is needed, the matter should always be communicated with his superior. Resulting from this high importance of hierarchical status, it becomes often more important for a Chinese person to know a person is before his opinion can be considered. This could mean a challenge in knowledge focus activities when the involved parties have unequal ranks. This goes especially for Chinese employees with high ranks when working together with other employees with lower ranks. In this situation, it would likely to be difficult for the higher ranked employee to accept intellectual guidance from the lower ranked employee or sharing a decision making process with him. For most companies which are to be successful in China, negotiations need to be handled by the highest ranking members of their business organization. The rank structure is clearly delineated between management and subordinates, and disagreement with management is frowned upon. A leaders decision-making style varies based on several external factors that determine the amount of power distance in an organization. They include: organizational structure, culture, external threats, and relationships with subordinates, and the degree of formality of the situation. Chinese managers demand unquestionable respect and loyalty, and rank structure is formalized and clearly delineated between employees and management. Chinese managers are expected to operate within clearly defined lines establishing their authority, while at the same time building a rapport with workers wherein workers can ask, and expect to receive, favors. This principle allows managers to help those in weaker positions by offering support. Managers operating in China must establish clear managerial power, while concurrently developing relationships that allow subordinates to request and receive assistance when the need arises. This cultural dimension describes the steepness of hierarchy and the degree of equality of wealth and power distribution within a society. Considering the teachings of Confucius, compassion for others is not enough but a system of hierarchical relationships is needed

on which the rituals which compose behavior are based. No wonder then, that "China possesses the highest power distance among all Asian nations" (Zinzius, 2004). Interestingly, Reisach et al. (1977) state that the steep hierarchy is a direct result from the collectivistic nature. That is why Chinese are drilled from childhood on to accept harsh authority without questioning. Parents, teachers and superiors are idols to who one needs to listen and imitate. That leads to a learning culture which does not encourage independent thinking or assuming responsibility at an early stage but rather builds its entire education on a top-down knowledge transfer process. Not contradicting a superior is especially true when others are present.

NON -VERBAL COMMUNICATION The Chinese' Non-verbal communication speaks volumes. Chinas influenced by Confucius' philosophical thinking. So Chinese people are more reserved or at least the nonverbal communications are comparatively less expressive. Greetings gesture. 1. When you meet your professor, you should lower your head and bend slig htly to show respect. The same posture is also used when a young man is g reeting an old man. 2. And shaking hands is a way of greetings. It is not used between people of r adically different status, but between socially equal people, friends or busi nessman, or often nods of the head or slight bow which is also sufficient. 3. But hugging and kissing when greeting are uncommon in China.

Touching Gestures.
1.

Generally speaking, Chinese are not a touchoriented society (especially true for visitors). So avoid touching or any pro longed form of body contact if you are just strangers.

2.

But with respect to the touch behaviors showing intimacy, it may come as a complete surprise for foreigners to see that Chinese girls havesuch close physical contact with their friends of the same sex. Actually, in China its quite common for girls and even young women to walk along arm in arm.

3.

4.

Holding hands is not so usual, but rather common for girls inprimary scho ol or under.

5.

And personal space is much less in China. The Chinese will stand much c loser than Westerners.

Eye Contact.
1.

When walking in public places, direct eye contact and staring is un common in the larger cities, especially in those areas accustomed to foreign visitors.

2.

However, in smaller communities, visitors may be the subject of m uch curiosity and therefore you may notice some stares.

Beckoning Gestures. 1. To beckon someone, the palm faces downward and the fingers are moved in a scratching motion. Avoid use the index finger, which can be considered rude.

Nonverbal Gestures.
1.

One is posture which is really important, so don't slouch or put your feet o n desks or chairs.

2.

The other is silence, which is perfectly acceptable and customary. Silence (Listening) is a sign of politeness and of contemplation. During conversati ons, be especially careful about interrupting.

DOs
1.

The social culture of China does permit people to stand close to each other while talking. The reason for doing this is to show politeness, trust, and willing to fit in. If you feel that you being treated overfriendly by a Chinese person, then dont hesitate to yell Boo meaning No directly to that person.

2.

3.

The natives show more affection to their same gender

DONTS 2. Even though people stand close to each other, it does not mean that you can touch the opposite sex. 3. Couple do not show public affection to each other, but this is tradition and may change over time.

4. Do not use too much of hand gestures when talking. 5. Dont show emotion when you are angry or mad. In Chinese tradition, only lower class people cannot control their emotions. 6. Dont ever touch a persons head (including childrens) on any occasion. This is the most disrespectful gesture that you can do to an Asian person.

Frowning while someone is speaking is interpreted as a sign of disagreement. Therefore, most Chinese maintain an impassive expression when speaking

Since the Chinese strive for harmony and are group dependent, they rely on facial expression, tone of voice and posture to tell them what someone feels.

It is considered disrespectful to stare into another person's eyes. In crowded situations the Chinese avoid eye contact to give themselves privacy.

GUANXI Relationships or connections Minimizing difficulties and frustrations. It is a complicated field. A special feature of doing business in China will be that Guangxi (relationship) in China will have to include relationship with the government body, investors, partners and even relationship with your own staff, so when doing business in China, it is important for foreign investors to learn to coordinate with the China government, especially establishing good relationship with government bodies dealing with foreign trade and economic cooperation. Governmental procedures for foreign investors in establishing investments in China is extremely complicated, thus if one is unfamiliar of the procedures, one will delay his/her business opportunities. Therefore it is important for one to be familiar with the investment procedures before carrying out his/her investment in China. A safer and more appropriate way will be to seek help from local organizations familiar in the same field of business or consultant firms who are able to provide professional advice and assistance. Willpower and patience may be essential for an investor to be successful, however it is necessary for one to require help from professional bodies to ensure that success will be achieved. Chinese emphasize very much on courtesy and face-saving. This has to do very much with Chinas traditional culture, and courtesy can be seen in every aspect in the business world. Being courteous to government official, cooperative partner and staff is thus essential. Senior president of Chinas Siemens Company has rated courtesy as the top importance while summarizing his Chinas experiences. Besides displaying courtesy on general commercial affairs, respecting traditional customs and practices is also vital. Chinese people are very hospitable, but their self-esteem is very strong and they pay very much attention on how other people view them and their attitude towards them. This phenomenon can be seen greatly in Northern China, which is associated with face-saving. While doing business with the counterpart or partner, it is essential to give face or respect to the partner or the other party, so that in this way strong cooperation can be

fostered and the business will be able to grow and last. Many foreign corporations have strict requirements on their staff in their home country, however in China, this management method may backfire. Past experiences have shown that this kind of strict management method may not be suitable for the Chineses gentle personalities. Employees morale will be affected and they may lose the willingness and motivation to work in the company. Thus handling organizational relationship in China context is a necessary skill for foreign investors to acquire in order to handle interpersonal problems in the Chinese way. It is important for foreign investors to be flexible in their management and be sensitive to Chinas culture in order to devise an ideal management system best suited for their companies organizational culture.

MIANZI

Mianzi, or the idea of saving face: "We can all relate to the embarrassment we feel when our flaws or failures are publicly exposed, but the Chinese (along with many other eastern nations) have a super-sensitive radar for this."

She relayed a story about an American executive who publicly criticized a Chinese sales manager in front of his peers, and after that meeting, the guy never returned to work. It's an extreme case of Mianzi, but it captures just how differently Americans and East Asian countries do business.

Ultimately, at the heart of Mianzi is fear and that's a powerful emotion that will drive people do irrational things, like quit a well-paying job over a personal embarrassment.

Personal pride and basis of an individuals reputation and social status Saving face, losing face and giving face are vital for successful business

KEQI Ke=guest, and qi=behavior The term "Ke Qi " literally means"the act of guest" or "act of courtesy". Thoughtful, courteous and refined behavior

PART 1 WORKING IN CHINA (pre-departure) Organizations venturing into business with China, will need to consider the aspects of Chinese business culture and etiquette in order to fully succeed Working practices in China 1. When doing business in China, being on time is essential 2. Establishing a proper introduction with your counterparts is vital before entering into business Structure and hierarchy in Chinese companies 1. Strict observation of rank where the individual is subordinate to the organization. 2. Enter the meeting room in hierarchical order 3. Senior members generally lead the negotiations and will direct the discussion Working relationships in China 1. Long-term relationships are considered more valuable then hurried transactions 2. The warm, hospitable character of your counterpart does not necessarily equal a positive outcome. Trust, based on a beneficial relationship is more important 3. The collectivism way of thinking is still important in Chinese business today and will influence many negotiations.

PART 2DOING BUSINESS IN CHINA Business practices in China 1. Present your business card with both hands and with the Chinese side facing up 2. When accepting your colleagues card study is carefully before placing it on the table, never in the back pocket, as this is extremely disrespectful. 3. During negotiations, humbleness and patience is the key to success. The Chinese sense of time means that they use it knowingly and there is always enough. 4. In most cases, initial meetings may be more of a social opportunity as oppose to a negotiation discussion. 5. An important element before commencing a business meeting in China is to engage in casual talk. Be prepared, as this may include quite personal questions

Chinese business etiquette (Dont and Dos) 1. Maintain eye contact as avoiding is considered untrustworthy. 2. Address them with a title and last name. use Mr or Madam if not sure 3. Wait for Chinese counterpart to initiate formal greetings. 4. Handshakes are the most popular gesture 5. DONT assume that a nod is a sign of agreement (simply listening!) 6. DONT show excessive emotion whilst conducting business, as it may seem unfriendly 7. Instead of saying no, answer maybe or Ill think about it.

APPOINTMENT Being late for an appointment is considered a serious insult in Chinese business culture. 1. Usually, 5 minutes earlier is acceptable; 2. Say sorry if you are late and explain the reasons, such as traffic jam, sudden or unexpected events Business and government hours are 9:00 a.m. to 5:00 p.m., Monday through Friday, a five-day work week 1. Do avoid plans to visit government offices on Friday afternoon, because this is sometimes reserved for 'political studying' of the officials. 2. Political studying in university is often on Wednesday afternoon. 3. Most Chinese workers take a break between 12:00 p.m.- 2:00 p.m. Practically everything "shuts down" during this period, including elevator and phone services.

BUSINESS DRESS Chinese people pay much attention to their suit. As China is a very traditional oriental nation, it attaches much importance on etiquettes. Chinese business culture, conservative suits and ties in subdued colours are the norm. Bright colours of any kind are considered inappropriate. Men should wear suits and ties to formal events; tuxedoes are not a part of Chinese business culture. Women should wear conservative suits or dresses; a blouse or other kind of top should have a high neckline. Because of the emphasis on conservative, modest, dress in Chinese business culture, flat shoes or very low heels are the main footwear options for women. High heels are acceptable only at a formal reception hosted by a foreign diplomat. Jeans are acceptable casual wear for both men and women. Mid-aged woman like to wear cheong-sam or skirt; man usually wear a suit. Indecent dress can make your dignity lost. Compared with senior people, youngsters would like to dress themselves semi-formally even when they are on the banquet. Fortunately, the seniors are always very kind to forgive the juniors. In Chinese business culture, conservative suits and ties in subdued colors are the norm. Bright colors of any kind are considered inappropriate. Women should wear conservative suits or dresses; a blouse or other kind of top should have a high neckline. Stick with subdued, neutral, colors such as beige and brown. Because of the emphasis on conservative, modest, dress in Chinese business culture, flat shoes or very low heels are the main footwear options for women. This is true especially if you are relatively much taller than your hosts. Men should wear suits and ties to formal events; tuxedoes are not a part of Chinese business culture. Before your visit, prepare yourself by studying aspects of Chinese culture, history, and geography. Your hosts will appreciate your initiative.

Negative replies are considered impolite. 1. 'no', 'maybe', 'I'll think about itavioded 2. the Chinese will do the same.

3. When your Chinese counterparts 'No big problem' or 'The problem is not serious, they usually mean 'There are still problems.' You may be asked intrusive questions concerning your age, income, and marital status. 1. If you don't want to reveal this information, remain polite and give an unspecific answer. 2. Don't express irritation with the questioner, since 'losing face' has such negative implications in this culture. 3. Do not ask your Chinese hosts about their family directly but you can ask 'How old is your child?', 'How long have you been in the work force?' or 'Where is your child studying?' as a means of determining their marital status and age. In Chinese culture, the question Have you eaten? or Where have you been? is the equivalent to How are you? in North America; 1. It's just a superficial inquiry that does not require a literal-minded, detailed answer. Simply answer, 'yes', even if you haven't actually eaten or simply smile and say 'thank you.'

MEETINGS

In accordance with Chinese business protocol, people are expected to enter the meeting room in hierarchical order.

For example, the Chinese will assume that the first foreigner to enter the room is head of the delegation.

Since there is such a strong emphasis on hierarchy in Chinese business culture, ensure that you bring a senior member of your organization to lead the negotiations on your behalf. The Chinese will do the same.

Only the senior members of your group are expected to lead the discussion. Interruptions of any kind from subordinates are considered shocking by the Chinese.

In Chinese business culture, humility is a virtue. Exaggerated claims are regarded with suspicion and, in most instances, will be investigated.

Dont boast and exaggerate any personal or business information The Chinese will not directly say no to you. Instead, ambivalent answers such as perhaps, I'm not sure, I'll think about it, or We'll see usually mean no.

Indirect refusal Wait for our discussion and it sometimes means no answer The Chinese tend to extend negotiations well beyond the official deadline to gain advantage. On the final day of your visit, they even may try to renegotiate everything.

Sometimes, in the first few days, no actual results will be achieved, but in the last one or two days, Chinese counterpart may push you to reach a negotiation.

Be patient, show little emotion, and calmly accept that delays will occur. Moreover, do not mention deadlines.

At the end of a meeting, you are expected to leave before your Chinese counterparts. When setting up a Chinese business meeting, it is important to send as much information to your Chinese counterparts in advance. Including details about the topics to be discussed and background information on your company ensures that the people you want to meet will actually attend the meeting.However, preparing in advance will not get you confirmation of the actual meetings day and time. It is not uncommon to wait anxiously to the last minute for confirmation. The Chinese prefer waiting until a few days before or even the day of the meeting to confirm the time and place.

Arrival at a Chinese Business Meeting: 1. Be on time. Arriving late is considered rude. If you do arrive late, apologizing for your tardiness is a must. 2. If you are hosting the meeting, it is proper etiquette to send a representative to meet the meetings participants outside the building or in the lobby and personally escort them to the meeting room. The host should be waiting in the meeting room to greet all meeting attendants. 3. The senior-most guest should enter the meeting room first. While entrance by rank is a must during high level government meetings, it is becoming less formal for regular business meetings.

Chinese Business Meeting Seating Arrangements: 1. After handshakes and the exchange of business cards, guests take their seats. The seating is typically arranged by rank. The host should escort the seniormost guest to his or her seat as well as any VIP guests. 2. The place of honor is to the hosts right on a sofa or in chairs that are opposite the rooms doors. If the meeting is held around a large conference table, then

the guest of honor is seated directly opposite the host. Other high ranking guests sit in the same general area while the remainder of the guests can choose their seats from among the remaining chairs. 3. If the meeting is held around a large conference table, all the Chinese delegation may opt to sit on one side of the table and foreigners on the other. This is especially true for formal meetings and negotiations. The principal delegates are seated in the meeting with lower ranking attendees placed at either end of the table. Discussing Business at a Chinese Business Meeting: 1. Meetings usually begin with small talk to help both sides feel more comfortable. After a few moments of small talk, there is a short welcoming speech from the host followed by discussion of the meetings topic. 2. During any conversation, the Chinese will often nod their heads or make affirmative utterances. These are signals that they are listening to what is being said and understand what is being said. These are not agreements to what is being said. 3. Do not interrupt during the meeting. Chinese meetings are highly structured and interjecting beyond a quick remark is considered rude. Also, dont put anyone on the spot by asking them to provide information they seem unwilling to give or challenge a person directly. Doing so will lead them to become embarrassed and lose face.

ENTERTAINING Wait to be seated, as there is a seating etiquette based on hierarchy in Chinese business culture. Generally, the seat in the middle of the table, facing the door, is reserved for the host. The most senior guest of honor sits directly to the left. Everyone else is seated in descending order of status. The most senior member sits in the center seat. Follow this seating pattern if you are hosting a banquet or a meal in your residence, whether for business or purely social reasons. The host is the first person at the table allowed to begin eating by declaring the first toast. Then, the rest of the company can proceed with the meal. If you are the host, take the first piece of the most valued food and put it on your guest of honors plate after the first toast. This will signify that eating can proceed and is considered a friendly gesture. Business is not discussed during the meal. It is not uncommon for a host to order enough food for ten people at a table of five. He or she loses face if there are not plenty of left-overs at the end of a meal. Rice, considered by many Chinese to be filler, is generally not served until the end of a meal. So, if you want to eat rice with your meal be sure to ask the waitress [or 'shou jie'] to serve it early, particularly if the food is spicy. During a meal, as many as 7-12 courses can be served, so try not to eat too much at once. The best policy is to lightly sample each dish. Leaving a 'clean plate' is perceived to mean that you were not given enough food--a terrible insult. On the other hand, leaving a food offering untouched will also give offense; even if you find a dish unappealing, try a small portion for the sake of politeness.

UNCERTAINTY AVOIDANCE Uncertainty avoidance is the degree to which members in a society feel uncomfortable with ambiguous situations and take steps to avoid them. Uncertainty avoidance occurs at various levels of an organization. For example, senior management may refuse to pursue a project with uncertain outcomes. Uncertainty avoidance has many implications for leadership characteristics and leadership traits such as habitual, formal, cautious, and orderly is perceived as an outstanding form of leadership in some countries while a negative form in others. In China, a country with high uncertainty avoidance, managers are more controlling, less approachable, and less likely to delegate to subordinates than their low-avoidance counterparts. In other words, managers in China do not place as much trust in their employees as managers in other countries.

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