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Presentation on the topic
on discipline: "Intercultural and business communications in a
foreign language"
PECULIARITIES OF THE CHINESE
STYLE OF LEADERSHIP AND
MANAGEMENT
Completed by 1st year students of the Master's program of the
2nd group
Faculty of Finance, directions of training Financial Analysis
Russian Economic University named after G.V. Plekhanov
• Grigoryants S.
• Adabir D.
• Tyranskaia E.
• Zhumabayeva M.
CHINA
• The Chinese business system has been evolving since
the initiation of the economic reforms by Deng
Xiaoping in 1978
• The urban industrial sector, under the command
economy, was dominated by state enterprises, and
funded by the central government
• Greater autonomy has been granted to state enterprise
managers as an incentive for improving performance.
• The government policy since the 1990s has been to
create conglomerates or multinationals from major
state enterprises
• The changing nature of the business systems is evident
in the evolving nature of corporate governance, which
is a hybrid of Western and Chinese values and norms
Page 2
REFORM OF SOES
•
Industrial reform:
Organizational efficiency and effectiveness
 competitiveness
•
Accountability:
Make state enterprises directors and
managers more accountable, and more
domestically and globally competitive
•
Encouragement of Foreign Trade
and Investment
BUSINESS ETIQUETTE.
• The western habit of shaking hands
• Hugging and kissing as a way of greeting or
goodbye is absolutely not acceptable.
• It is considered impolite to show something
to the finger
• Only close friends can call a Chinese by
name
• An indispensable part of negotiations - gifts
• It is customary in China to refuse a gift two or
three times before accepting it.
• If you donate several of the same items, there
must be an even number, but not four.
• A watch is the only gift to avoid (also sharp
objects, alcoholic drinks, foreign currency
and coins)
CHINA’S SOCIALIST MARKET ECONOMY
(CAVEATS)
Social
Inequality
Labor
Shortage
High tech,
Scientific
Management
Labor
registration
Technical
manpower
State initiative
in corporate
governance
Wage increase
Skilled
management
Technological
infusion
through FDI
Environmental
Degradation
THE BASIS OF THE CHINESE
MANAGEMENT MODEL
• The Chinese mentality leaves an imprint on the
attitude of employees to responsibilities and
relationships in the company
• Strict discipline, respect for superiors, lack of
familiarity between superiors and subordinates
• More compact management staff
• Independence and self-sufficiency of employees
• Strict division of labor
THE DEVICE OF A TYPICAL LARGE CHINESE
COMPANY
• structure similar to American or European
• main type - implementing companies
• small management staff
•
•
Foxconn - Executing company, assembles iPhones, manufactures
devices for Huawei and Lenovo
Out of 1.2 million employees, only 1000 managers
A CHINESE APPROACH TO
MANAGEMENT
• China’s business leaders manage people very
differently.
• China’s business leaders are controlling companies
from the top.
• Chinese companies produce more in-house and pay
employees less than their Western counterparts, so
Chinese enterprises can afford to employ more people.
• Developing products quickly.
• Building relationships with government and other
institutions is critical in China.
5 KEY CHARACTERISTICS OF CHINESE
MANAGEMENT IN THE WORKPLACE
Authoritarian
Humanistic
Guanxi
dependent
Slower paced
Distance of
power
10 CHARACTERISTICS OF MODERN
CHINESE MANAGEMENT MODEL:
Dynamism
Adapting
Reciprocity
Coherence
Flexibility
Spirituality
Complexity
Discipline
Naturalness
Long-term
development of
the enterprise
MANAGEMENT IN CHINESE:
PRINCIPLES OF MANAGEMENT
12
Correction of
names
Foresight
Personal
responsibility
Cyclicality
Moral
Nepotism
Harmony
Hierarchy and
rituals
Justification of
awards and
punishments
Indirect impact
Individual
approach
Point impact on
the situation
LEADERSHIP IN MAINLAND CHINA
CHINESE LEADERSHIP MODELS
Aim
Method
Findings
Implications
CHINESE LEADERSHIP: 5 CRITICAL
DIFFERENCES WITH THE WEST
The concept of
“face”
Communication
styles
Time to make
decisions
The notion of
“guanxi”
The Confucian
concept of
harmony
CHINA'S MODERN APPROACH IN EXAMPLE
• The key to success - a combination of approaches
(for example Alibaba)
• Jack Ma abandoned a strictly vertical structure
• Divided the company into functional groups
consisting of mini-teams (copied the structure of
Google, Facebook)
• Declares the conservative Chinese model is not
suitable for modern times
• Baidu, Tencent, Huawei, Xiaomi also began
restructuring
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