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CHINESE STYLE OF
MANAGEMENT
SUBMITTED BY:
NIKITA GUPTA
SECTION F
2ND SEMESTER
MBA IB
A1802011407
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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.
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Chinese business relationship inevitably becomes asocial relationship after a while. Unlike Westernbusiness relationship which remains professional andperhaps, aloof, even after a long time, Chinesebusiness relationship becomes a social one.
The more you share your personal life, includingfamily, hobbies, political views, aspirations, thecloser you are in your business relationship.
Sometimes, a lot of time is spent discussing mattersoutside of business, but then a lot of time, the otherparty is also making up his mind about your dealbased on how much he sees your personalrelationship with him.
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The greatest difference in organizational
structure between most Chinese enterprise
and Western companies is that there are
parallel management systems in a Chineseenterprise.
1, administrative system
2,leadership structure based around
CCP(Chinese Communist Party)So this system is always referred as Two
Carriages
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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.
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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 ofmaterial necessities, including medical insurance,
housing, childcare, schooling and entertainment.
It plays an extensive role in both the
professional and private lives of their employees.
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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 verycomplex.
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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.
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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 managersusually carry out the managers instructions
obediently.
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c) Collecting information and making final
Decisions Because managers do not fully trust
their employees, they prefer collecting
information themselves rather than fromcolleagues or subordinates.
d) Responsibility for the implementation of
decisions. Chinese managers believe that theresponsibility for implementation of
decisions should not be taken individually
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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 ofemployees enjoying lunch together)
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It is important to carry plenty of business cards; if possibleget a translated, bi-lingual version
Use both hands when presenting business cards and ensurethat the writing on the card is facing the recipient
Cards should be received with both hands and placed onthe table in front of you - to immediately put the card inyour pocket or bag is considered rude
When you receive someones card, spend a few secondsreading it. This not only helps you to remember name butalso show a sign of respect for the other person
Do NOT write on someone elses business card
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Conservative suits for men with subtle
colors are the norm.
Women should avoid high heels and short
sleeved blouses. The Chinese frown onwomen 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.
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.