The Impact of Business Culture Issues. January 2018 Sarah Kutulakos, Executive Director & COO

Transcription

1 The Impact of Business Culture Issues January 2018 Sarah Kutulakos, Executive Director & COO

2 Doing business in China: Cultural differences Impact within your company Impact on your business Context Confucian Concepts Gifts relationships Reputational impact

3 Culture in Context China is high-context Less explicit communication More internalized understandings of what is communicated Complex web of relationships Long term relationships Strong boundaries of groups Knowledge is situational, relational. Personal face-to-face relationships rule, often around a central person with authority. Canada is low-context Play by the rules Accessible, public knowledge. Sequencing, separation--of time, of space, of activities, of relationships More, shorter-term interpersonal connections Knowledge is more often transferable Task-centered, with division of responsibilities Source:

4 Low vs High-Context Culture Expressing opinion Source: Yang Liu East Meets West Expressing feelings Source: Yang Liu East Meets West

5 Ethical Basis of Chinese Culture: Confucian concepts Hexie (harmony) Qianxu (humility) Mianzi (face) Guanxi (personal relationships) Renqing (kindness, humanity)

6 Renqing - Kindness, humanity Trait of demonstrating care for other people rooted in family Willingness to exert oneself on behalf of others, inconvenience oneself This is moral underpinning of guanxi System based on expectation that once you have received such consideration you will return the favour Not to return a favour demonstrates a lack of character, a lack of renqing 6

7 Guanxi Personal relationships Guanxi - web of individual relationships in which friends do favours for one another. Based on range of common associations and interests (family, school, university, former jobs) Relationships need to be continuously refreshed and developed - major difference with Western concepts Relationships are personal rather than institutional When a contact leaves a supplier/customer, your relationship with the firm evaporates until you develop from scratch relationship with successor 7

8 Relationships Contacts and connections Source: Yang Liu East Meets West Manifests itself in: Interview messages Language

9 Mianzi Face Face stands for one s place in society; esteem in which one is held by others Chinese in general are highly conscious of maintaining the attributes appropriate to their position Employees can be expected to jealously guard and promote the face of superiors Always act in the calm, thoughtful, dignified manner consistent with your seniority 9

10 Qianxu humility Chinese regard humility as a key virtue Humility prompts that Chinese deny or scoff at compliments rather than accept them Do not take these denials at face value - repeat the compliment, several times if need be Over-confidence or boastfulness in talking about one s company or oneself is considered brash In interviews, it can be difficult to get Chinese to present their successes and achievements When there is nothing particular to be said, Chinese value silence rather than empty talk 10

11 Related to Humility Sense of Self Source: Yang Liu East Meets West Manifests itself in: Interview messages Language

12 Hierarchy The boss Source: Yang Liu East Meets West

13 Different Working Styles Lifestyle: independent vs. dependent Source: Yang Liu East Meets West Manifests itself in: Office styles Group outings Travel habits

14 Gift Giving Organizational/company gift Modest value Should be a photo-op prop Examples: Photo atlas of Canada Framed collection of Canadian stamps, especially Chinese zodiac themed Signed visual art piece Canadian hockey jersey Signed hockey stick (symbolizing hockey stick growth ) Watch out for colors