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?
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