Chinesemanagementstyle

Modern ChineseCorporateCulture underguidanceof LanQiu Presentedby WangZelong

OrganizationalStructure Two Carriages

Thegreatestdifferenceinorganizationalstructure betweenmostChineseenterpriseandWestern companiesisthatthereareparallelmanagement systemsinaChineseenterprise. 1,administrativesystem 2,leadershipstructurebasedaroundCCP(Chinese CommunistParty) SothissystemisalwaysreferredasTwoCarriages

OrganizationalStructure Two Carriages

Mainresponsibilityofthelattersystem (leadershipstructurebasedaroundCCP)is personnelassignment. Becauseofthedifficultiesassociatedwith operatingtheparallelsystem,differencesof opinionoftenarisebetweenthetwo managementsystems.

OrganizationalFunctions Asmall society

a) ThefunctionofaSOE:alargefamily. MostenterprisesinChinanotonlyprovidetheir employeewithworkingopportunitiesand salaries,butmustalsoofferafullarrayof materialnecessities,includingmedicalinsurance, housing,childcare,schoolingandentertainment. Itplaysanextensiveroleinboththe professionalandprivatelivesoftheiremployees.

OrganizationalFunctions Asmall society

a) ThefunctionofaSOE:alargefamily. SotheOrganizationalFunctionsofChinese enterprisearelikethoseofasmallsociety. ThereforeaSOEmanagersworkisvery complex.

OrganizationalFunctions Asmall society

b) Thefunctionofamanagermustbelikeaparent. Astheenterpriseisregardedasalargefamily, thegeneralmanagerisnaturallyassumedasa parent. Actually,managersarerespectedastheheadof familybytheemployees.Inreturn,managers musttakecareofemployees.

OrganizationalFunctions Asmall society

b) Thefunctionofamanagermustbelikeaparent. 1,goodparent:whotakesgoodcareoftheir family>theenterprisewillbecohesiveand efficient. 2,otherwise,themanagerfailsnomatterhow profitabletheircompanyis Sothecriterionofagoodmanageristhatwhether heorshecansecurebasicmaterialandwelfare benefitsforemployees.

OrganizationalFunctions Asmall society

c) ThesalarysystemofSOEemployees 1,Employeesarepaidmonthly. 2,Salariesareconsistof4parts:abasicsalary, senioritysalary,bonusandsubsidy. subsidy:housingrental,medicalcare,non staplefoodstuffs,newspapersandbooks, transportation,evenclothingandfoodstuffs.

CorporateValues Confucian influencestillverystrong

ManagementinChinaisstilldeeplyinfluenced byConfucianvalues,passeddownfromone generationtothenextthroughfamily socialization.

CorporateValues Confucian influencestillverystrong

a) Managementsimpersonalachievement orientation. Chinesemanagersinsistongroupor collectiveorientation.Anyachievementis claimedonbehalfofthegroupand organization.Onlyfriendlycompetitionis encouraged.

CorporateValues Confucian influencestillverystrong

a) Managementsimpersonalachievement orientation. Itisdifferentfromwesterncompanieswhich arecharacterizedbyaspiritofself actualizingcompetition. Managersthinkthatindividualsshouldwork inharmonywithmajorityandkeepthe competitiontoadegreethatisacceptable bythemajority.

CorporateValues Confucian influencestillverystrong

b) Distrustwithinorganizations. Inmanyenterprises,managerscannottrust subordinates,partlyasaresultofhierarchical value. Justliketherelationshipbetweenparentsand children,childrenshouldrelyontheirparents andparentsdonotthinkthattheirchildrenare matureenoughtotakeresponsibilities.

CorporateValues Confucian influencestillverystrong

c)Cooperationbasedonobedience Itislikeatopdownsystem.Thesubordinates areexpectedtoyieldtothemanagersandfully complywiththeirinstructions.Themanagers areaccustomedwiththiskindofhierarchy, althoughinChinaitisreferredascooperation.

CorporateValues Confucian influencestillverystrong

d)Theimportanceofrelationshipsandharmony. Guanxi Chinesemanagersplaceahighvalue oninformalrelationshipwithinanorganisation. Inordertomaintainasteadyworkplace atmosphere,themanagerhavetoconcentrate ontheestablishingthenonworkrelationships.

TheLeadershipStyleofChinese Organizations
a) Formal participationsystems. TheWorkersCongressesareusuallypermitted toparticipateindecisionsrelatedtoworking conditions,notstrategicpolicy.

TheLeadershipStyleofChinese Organizations
b)Theroleofmiddlemanagersinthedecision makingprocess Chinesemiddlemanagersusuallycarryoutthe managersinstructionsobediently.

TheLeadershipStyleofChinese Organizations
c)Collectinginformationandmakingfinal decisions Becausemanagersdonotfullytrusttheir employees,theyprefercollectinginformation themselvesratherthanfromcolleaguesor subordinates.

TheLeadershipStyleofChinese Organizations
d) Responsibilityfortheimplementationof decisions. Chinesemanagersbelievethattheresponsibility forimplementationofdecisionsshouldnotbe takenindividually.

 ThoseabovearethecharacteristicsofChinese enterprise.However,itshouldbeawarethat thosearethephenomenonin1990s. Nowadaysmostofmiddleandsmallenterprises arereformedandthereisnomoreParty LeadershipSystemwithinthem.Andalsothe styleofmanagementisdeveloping.Managers powernowdependsontheircapacityto perform,andalsoonhowtheyapplytheir professionalknowledgeratherthanontheir authorizedpositionalone.