CHINESE STYLE OF MANAGEMENT

SUBMITTED BY: NIKITA GUPTA

SECTION F
2ND SEMESTER MBA IB A1802011407

Chinese business contacts are mostly referrals; essentially a business relationship is struck based on another business associate recommendation.
However, it is common today for cold calls and direct contacts, given the availability of the internet and the competitive nature of Chinese businesses. You may source from the internet, trade fairs, catalogues and brochures, advertisements and approach the Chinese companies directly through a call or email. Address a person using his or her family name only, such as Mr. Chen. Avoid using someone's given name unless you have known him or her for a long period of time. Formality is a sign of respect, and it is advisable to clarify how you will address someone very early in a relationship, generally during your first meeting. Business interactions between men and women are reserved. After an initial handshake, avoid body contact such as hugging or kissing on the cheek.

Chinese business relationship inevitably becomes a social relationship after a while. Unlike Western business relationship which remains professional and perhaps, aloof, even after a long time, Chinese business relationship becomes a social one.
The more you share your personal life, including family, hobbies, political views, aspirations, the closer you are in your business relationship. Sometimes, a lot of time is spent discussing matters outside of business, but then a lot of time, the other party is also making up his mind about your deal based on how much he sees your personal relationship with him.

 The

greatest difference in organizational structure between most Chinese enterprise and Western companies is that there are parallel management systems in a Chinese enterprise. 1, administrative system 2,leadership structure based around CCP(Chinese Communist Party) So this system is always referred as Two Carriages

 Main

responsibility of the latter system (leadership structure based around CCP) is personnel assignment. Because of the difficulties associated with operating the parallel system, differences of opinion often arise between the two management systems.

The function of a SOE: a large family. Most enterprises in China not only provide their employee with working opportunities and salaries, but must also offer a full array of material necessities, including medical insurance, housing, childcare, schooling and entertainment. It plays an extensive role in both the professional and private lives of their employees.

 The

function of a SOE: a large family. So the Organizational Functions of Chinese enterprise are like those of a small society. Therefore a SOE managers work is very complex.

 b)

The function of a manager must be like a parent. As the enterprise is regarded as a large family, the general manager is naturally assumed as a parent.

Actually, managers are respected as the head of family by the employees. In return, managers must take care of employees.

a) Formal participation systems. The Workers Congresses are usually permitted to participate in decisions related to working conditions, not strategic policy.
b) The role of middle managers in the decision making process Chinese middle managers usually carry out the managers instructions obediently.

c) Collecting information and making final Decisions Because managers do not fully trust their employees, they prefer collecting information themselves rather than from colleagues or subordinates.
d) Responsibility for the implementation of decisions. Chinese managers believe that the responsibility for implementation of decisions should not be taken individually

A specific type of group where an emphasis is put on some level of member interdependence and on achievement of common goals

All teams are groups Some groups are just people assembled together Teams have task interdependence whereas some groups do not (e.g., group of employees enjoying lunch together)

It is important to carry plenty of business cards; if possible get a translated, bi-lingual version
Use both hands when presenting business cards and ensure that the writing on the card is facing the recipient Cards should be received with both hands and placed on the table in front of you - to immediately put the card in your pocket or bag is considered rude When you receive someones card, spend a few seconds reading it. This not only helps you to remember name but also show a sign of respect for the other person Do NOT write on someone elses business card

Conservative suits for men with subtle colors are the norm. Women should avoid high heels and short sleeved blouses. The Chinese frown on women who display too much. Subtle, neutral colors should be worn by both men and women. Casual dress should be conservative as well. Men and women can wear jeans. However, jeans are not acceptable for business meetings.