Differences in management culture can have a big impact on employee and company performance.

Often
having a good understanding of what these differences entail and how they can influence your work, can go a
long way in helping you overcome many of the obstacles that impede you from performing at your highest
potential. The United States and China have become closer trading partners in the last decades, making it
quite common for  people from both countries to work together on a regular basis. Last January, when
president Hu of China met with US President Obama, Hu said the following in his speech:

“We both agreed to further push forward the positive cooperative and comprehensive
China-U.S. relationship and commit to work together to build a China-U.S.
cooperative partnership based on mutual respect and mutual benefit, so as to better
benefit people in our own countries and the world over”
There are, however, many differences in the way the Americans and the Chinese do business. Especially the
management culture has a large impact on the overall way of doing business within organisations. We will
focus today on what we believe to be the three main differences in management culture between the United
States and China. These differences are based on the following three factors:

 Responsibility and Accountability

 Perception of Time
 Individualism vs. Collectivism
Responsibility and Accountability
The way that responsibilities within an organisation are delegated or given to its employees changes the way
that employees behave within their organisation and how the organisation performs. The way employees are
given responsibilities or not also affects accountability within an organisation. This affects the mentality of the
employees  in both the United States and China.  In the United States employees are given tasks which come
with clear and designated responsibilities. Employees are then held accountable for their performance
regarding the tasks assigned to them. In China, employees are given far less individual responsibility in the
workplace, which means that they are often not individually accountable for a specific task or project, but are
rather judged as part of a team or group.
Perception of Time
Doing business in the United States is to the point, and often occurs at a much quicker pace than in China.
Apart from being on time, which is absolutely vital in China, it is also important to build relationships with
people before doing business. This often prolongs the time spent in discussing business and making decisions.
This can be quite frustrating to an American, who would much rather get the deal done, and move on to the
next thing. Furthermore, in China they focus on long-term commitments for which the Chinese expect long-
term rewards, whereas in the US it’s very much the opposite. Americans expect short-term rewards for their
work. Additionally, when doing business with the Chinese, you must take into account the importance that the
Chinese give to not losing ‘face’ in front of a group. Never will the Chinese make someone in their group look
stupid or ignorant. This makes their conversational style very indirect, and you often can’t tell by their words
what they are thinking. This can make business discussions take a lot longer than Americans are used to.
Americans are far less occupied with the thought of whether they might make someone lose face or not, and
more with trying to close the deal. Punctuality is extremely important in China. To the Chinese, being late is
extremely rude, and a sign of disrespect. Although Americans value punctuality as well, they will take a more
flexible attitude towards it.
Collectivism vs. Individualism
Although we have always qualified the Chinese society as one in which collectivism is preferred over
individualism, things are changing in the 21st century. Probably due to the fact that the Chinese market has
opened up significantly in the past decades, Chinese managers have taken over some traits from their Western
counterparts.  Studies have shown that some Chinese managers now have internalised some ‘Western’ values
such as individualism, alongside more traditional values such as loyalty and responsibility. However, social
obligations to a higher authority and to the family are still deemed very important in China, even more
important than rules directed at protecting the individual. This collectivist culture still influences the
management culture in China in a big way. In The United States organisations have a far more individualistic
culture, which emphasises individual tasks, goals, and performance. For Americans, achievements and success
are deemed far more important than seniority, or any type of social standing or class. Doing something extra
or using your creativity to tackle problems is something which still sets Americans apart from the Chinese.
ELM Team