Cultural Profile and Management Strategies

CHINA
Aimen Alam
Ahad Baryar
Mahnoor Furqan
Saba Mahmood
 Role of History

● Under the control of state: highly centralised, formalised and standardized

● State decided number of employees, sources of recruitment, payscales, jobs
for life
● Low ranges, broad compensation

Effects:
● Enterprise autonomy, market oriented and merit based
● Employment contracts, performance and skill based, etc
● Competition and incentive
● Recruitment and Performance Appraisals
 Role of History and PEST Factors

Political :

● Communist Party

Economic:

● GDP growth rate 6.9%

● Evolved from a centrally planned economy to a socialist market economic system
● Rapid growth of private businesses and joint ventures are adding forces for change in
the SOEs and public sector
 Role of History and PEST Factors
Social:

● Egalitarianism
● Confucian values- emphasizes the presence of hierarchy within interpersonal
relationships
● seniority culture in the distribution of bonuses and other material incentives
● collectivist.

Technological

● Increasing RD level and innovation

● Spillover effect of the FDI
● E-commerce market
 Cultural Profile
Parameter Value=1 Value=5 Score

Time-focus monochronic polychronic 5

Time orientation past future 4

Space private public 4

Power equality hierarchy 4

Structure individualism collectivism 4

Competition co-operative competitive 2

Communication low context high context 5

Action being doing 2

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 Management Strategies for China

➢ Planning:
-top down planning high power distance
-future oriented goals long term oriented
-ambitious masculine society
-team oriented cooperative

➢ Organising:
-thorough understanding Confucianism
-relationship building collectivist
-hierarchical values power distance
 Management Strategies for China

➢ Staffing:
-fair recruitment and selection merit based
-decentralised and job specific information enterprise autonomy

➢ Leading:
-group oriented collectivist
-strong hierarchy power distance

➢ Controlling:
-No flexibility in authority power distance
-Performance appraisals mix of hard and soft measures
-Individual and team goals collectivist and cooperative