Organizations in China:
- Very hierarchical.
- Emphasis is placed on harmonious relationships.
- All employees know their proper places in the social hierarchy.
- Establishing trust and social bonds are important.
- Managers are expected to make decisions on behalf of their groups and take a paternalistic approach with their employees.
- There are clear divisions between workers and managers – each belonging to their respective groups.
- Communication between managers and employees is restricted.
- Employees rarely raise issues or disagree with managers.
- Employees are on a need-to-know basis - flow of job-related information is limited.
- Employees are encouraged to be modest in all aspects of their work.
- Conflict between parties is resolved via mediation and compromise.
- “Face” is important – saving, maintaining, and giving.
Cultural Snapshot
Chinese business culture is largely influenced by Confucianism.
- The Confucian concept of Guanxi (關係), loosely translated as “relation”, is the building of networks and relationships. Guanxi reflects the values of solidarity, loyalty, modesty, and courtesy.
- Distinct levels of hierarchy are followed closely in organizations. A vertical structure ensures that roles are maintained, and that decision making comes from the top.
- People are also careful to save ‘face’ in order to protect individual reputations, influence, and dignity.
- As a final reflection, although Confucianism is still an influencing factor in Chinese business culture, organizations are needing to change or adapt many elements of Confucianism as a response to global business practices.
Organizations in India:
- Very hierarchical.
- People have distinct roles within the organization - maintaining them helps to keep order.
- Senior members are the decision makers.
- Managers do not consult employees on decisions – they may perceive this as the manager lacking experience or expertise.
- Managers take a paternalistic approach with employees – concerns may carry over beyond the workplace.
- Relationships are valued, and important to nurture.
- Change and risk are not avoided, but rather, taken in stride.
- Timelines and deadlines are taken seriously, but may be deprioritized in favor of relationships.
Organizations in Indonesia:
- A strict hierarchy exists – managers are expected to be more directive.
- Employees have distinct roles (and adhere closely to those roles).
- Employees show a great deal of respect to managers.
- Managers are expected to check employees’ work, and to take responsibility for results.
- Employees expect clear and detailed instructions, and advice on how tasks need to be performed.
- Trust between employees and managers is important.
- Managers sometimes extend concern for employees beyond the workplace.
- Deadlines need to be reinforced.
- Harmony is preferred to conflict.
- Employee communication may be indirect and highly contextual.
- Working in a group and contributing as a team is desirable.
Organizations in Japan:
- A hierarchy exists, but both bottom-up and top-down approaches exist.
- Lifetime employment (shushin koyo) and seniority grading (nenko joretsu) maintain social aspects of the workplace.
- Punctuality is emphasized.
- There is a focus on long-term company success.
- Group harmony is valued, and conflict is avoided.
- Work and social life are interconnected.
- Managers are open to innovation and improvement.
- Employees are future and goal oriented.
- Employees foster ongoing relationships.
- Patience is important – fast decisions may not be trusted.
- Saving and maintaining ‘face’ are important.
- Communication at all levels is indirect, and highly context based.
- Decision making is participatory and group oriented but is often done more informally than in traditional meeting situations.
Cultural Snapshot
In a typical Japanese organization, the ringi (禀議) system is used to build consensus on major decisions. A ringi document is circulated among managers who then agree by stamping the document with their individual seals. Once the decision is made, meetings may be called as a formality (and to reinforce consensus).
- The quality of decision making is claimed to be high, due to the high level of participation.
- The system is said to maintain high morale and cohesion of the organization’s members.
- Decision making is shared, which reduces risk for individuals.
- It has implied meaning and objectives, and significance to the members.
- It is a time-consuming process which is more about group support than making better decisions.
Self-reflection/discussion:
- What would you think or how would you react if you were in a meeting, and prepared to give input on some of the agenda items, only to find out it is simply a formality, and that many of the decisions have already been made by the management team?