Human resource management is essential especially in the current business environment characterized by increased competition for top talents. However, it has become a major challenge to human resource managers especially those operating in cross cultural settings. China and the United States for example have formed business relationships that have led cross border investments. Cultural differences and business etiquette differences are the major issues facing the United States companies being established in China (Tian, 2007).
Critical human resource and cross cultural issues that would determine the success of our company in China
Most of the human resource issues that this company needs to address are embedded on the different business cultures that exists between the United States and China. Culture is a great determinant of the success or failure of a business. Culture is a broad term which encompasses the way people communicate either verbally or through signs and gestures, dressing code, gender roles and the value of directness. Though common gestures may be used, their interpretation differs across different countries depending on the language used which may in turn affect how a business fairs in a foreign country (Kelley, Kelley Shenkar, 1993).
America and China have different cultures which can affect negatively the success of our company if they are misinterpreted. One of the cultural differences lies in the communication style of these two countries. In our culture, business people prefer to communicate using direct language and they are not afraid to say what they believe or feel. As such, they are bound to express their feelings about an issue even when others do not agree with them. They are also emotionally expressive choosing to express their disappointment andor disapproval.
In meetings, Americans tend to talk more and express their views using direct language. Meetings are usually characterized by arguing until a solution is reached. In China, direct communication is not encouraged as this is seen as a sign of being rude or disrespectful. Chinese tend to use indirect communication and they are not emotional expressive. When angered or unhappy about a decision, Chinese tend to keep quite rather than confronting a person in presence of other people which is unlike for the Americans. Unlike the Americans, Chinese meetings are peaceful and calm and people always compromise to reach a decision. While direct language is accepted in America and has a positive impact in the success of a business, this would have a negative impact on our business if it is practiced in China since Chinese people would translate direct communication as disrespect or rudeness. China has a golden rule of silence as a sign of respect. This is a major human resource issue that if not handled carefully, our business will perform poorly in China (Tian, 2007).
Another human resource implication lies in the usage of hand gestures by American and Chinese people. In America for example, the joining of the index finger with the thumb making a sign of O is interpreted to mean fine or OK. However, this same gesture in China is interpreted as money. The greeting styles across these two regions also differ greatly. Americans shake hands with a heavy grip and the handshake lasts for several seconds or even a minute. Also, they prefer kissing and hugging as a form of greetings. On the contrary, Chinese bow a bit while greeting each other. While handshakes are used, which is rare, the grip is light and the handshake brief. Greetings in form of kissing and hugging are also not acceptable as this is considered to be disrespectful. These are vital points to note as human resource team as wrong interpretation is almost inevitable. Touching gestures are also not appreciated in Chinese culture unlike in American culture. In China, affection is not displayed openly unlike in American culture. Pointing at a person using a finger is considered as an insult in China while in America it may be considered as beckoning or calling a person (Kwintessential Ltd, n. d).
Guanxi is another very important aspect of Chinese business etiquette that we must fully understand as it has major implications on human resource. Guanxi is a Chinese term for relationships. In China, close relationships are highly regarded and they determine the success or failure of an entity. Guanxi also entails exchanging of favors between businesses and business persons as a way of showing friendship. As such, to Chinese people, giving a gift in exchange for one to be awarded a contract is common and acceptable. This in American culture would be termed as bribery thus highly condemned. Guanxi also highly influences the hiring and recruitment criteria. This process is highly influenced by the relationships that exist between individuals with those very close to business associates being given the priority during the recruitment process. Chinese people are also very proud of their language and culture and this has an impact on how they receive foreign investors. Foreigners who seem to be interested in knowing the language and culture of Chinese people are received well than those who insist on maintaining their foreign cultures (Legacee Management Systems Inc, 2009).
Recommendations
For our company to be successful in Chinese business world, we need to address the above issues. While it is essential to send some of our business men to China, it is also vital to hire locally so as to integrate the Chinese culture in the business and make Chinese people feel part and parcel of our company. The company should send just a few managers to China to oversee the smooth running of the company. For lower level managerial posts as well as the functional departments, the company should hire local Chinese people. Anything Chinese in nature is highly appreciated in this country. As such, our company should try as much as possible to make the company resemble or meet the expectations of the Chinese people. Bringing in people from America to totally manage and run our company would only make our company more foreign in China. It is vital to hire local talents in our company (Kelley, Kelley Shenkar, 1993).
To attract and develop talents of American managers who are to be sent to manage our company in China, a thorough training on business culture and etiquette of Chinese people as well as some of the critical Chinese phrases or terms that will make them to be accepted in China should be offered. Chinese people understand that foreigners need not to know their language in full but they are enthusiastic on foreigners who can speak a few phrases of their language as this is viewed as a genuine interest on the culture of the people. American managers chosen to lead the company in China should be taught how to appreciate the culture of Chinese people. To attract top talent of local Chinese people, our company should approach some of the most respectable businessmen in China to act as a guide during the hiring process for the new company. This way, business relationships or guanxi would be cultivated for our company. Locally hired employees from china should also be enlightened on the different business etiquette of Americans and the differences in interpretation of non verbal signs so as to reduce conflict within the company and enhance diversity management practices (Tian, 2007).
Training is the most critical way that can help in solving the cross cultural differences that exist between Americans and Chinese working for our company. Both American and Chinese employees in our company need to be trained on diversity and its various aspects so as to ensure harmony exists in our company. Training in cultural differences is essential in helping employees appreciate one another despite their cultural differences (Tian, 2007).
Critical human resource and cross cultural issues that would determine the success of our company in China
Most of the human resource issues that this company needs to address are embedded on the different business cultures that exists between the United States and China. Culture is a great determinant of the success or failure of a business. Culture is a broad term which encompasses the way people communicate either verbally or through signs and gestures, dressing code, gender roles and the value of directness. Though common gestures may be used, their interpretation differs across different countries depending on the language used which may in turn affect how a business fairs in a foreign country (Kelley, Kelley Shenkar, 1993).
America and China have different cultures which can affect negatively the success of our company if they are misinterpreted. One of the cultural differences lies in the communication style of these two countries. In our culture, business people prefer to communicate using direct language and they are not afraid to say what they believe or feel. As such, they are bound to express their feelings about an issue even when others do not agree with them. They are also emotionally expressive choosing to express their disappointment andor disapproval.
In meetings, Americans tend to talk more and express their views using direct language. Meetings are usually characterized by arguing until a solution is reached. In China, direct communication is not encouraged as this is seen as a sign of being rude or disrespectful. Chinese tend to use indirect communication and they are not emotional expressive. When angered or unhappy about a decision, Chinese tend to keep quite rather than confronting a person in presence of other people which is unlike for the Americans. Unlike the Americans, Chinese meetings are peaceful and calm and people always compromise to reach a decision. While direct language is accepted in America and has a positive impact in the success of a business, this would have a negative impact on our business if it is practiced in China since Chinese people would translate direct communication as disrespect or rudeness. China has a golden rule of silence as a sign of respect. This is a major human resource issue that if not handled carefully, our business will perform poorly in China (Tian, 2007).
Another human resource implication lies in the usage of hand gestures by American and Chinese people. In America for example, the joining of the index finger with the thumb making a sign of O is interpreted to mean fine or OK. However, this same gesture in China is interpreted as money. The greeting styles across these two regions also differ greatly. Americans shake hands with a heavy grip and the handshake lasts for several seconds or even a minute. Also, they prefer kissing and hugging as a form of greetings. On the contrary, Chinese bow a bit while greeting each other. While handshakes are used, which is rare, the grip is light and the handshake brief. Greetings in form of kissing and hugging are also not acceptable as this is considered to be disrespectful. These are vital points to note as human resource team as wrong interpretation is almost inevitable. Touching gestures are also not appreciated in Chinese culture unlike in American culture. In China, affection is not displayed openly unlike in American culture. Pointing at a person using a finger is considered as an insult in China while in America it may be considered as beckoning or calling a person (Kwintessential Ltd, n. d).
Guanxi is another very important aspect of Chinese business etiquette that we must fully understand as it has major implications on human resource. Guanxi is a Chinese term for relationships. In China, close relationships are highly regarded and they determine the success or failure of an entity. Guanxi also entails exchanging of favors between businesses and business persons as a way of showing friendship. As such, to Chinese people, giving a gift in exchange for one to be awarded a contract is common and acceptable. This in American culture would be termed as bribery thus highly condemned. Guanxi also highly influences the hiring and recruitment criteria. This process is highly influenced by the relationships that exist between individuals with those very close to business associates being given the priority during the recruitment process. Chinese people are also very proud of their language and culture and this has an impact on how they receive foreign investors. Foreigners who seem to be interested in knowing the language and culture of Chinese people are received well than those who insist on maintaining their foreign cultures (Legacee Management Systems Inc, 2009).
Recommendations
For our company to be successful in Chinese business world, we need to address the above issues. While it is essential to send some of our business men to China, it is also vital to hire locally so as to integrate the Chinese culture in the business and make Chinese people feel part and parcel of our company. The company should send just a few managers to China to oversee the smooth running of the company. For lower level managerial posts as well as the functional departments, the company should hire local Chinese people. Anything Chinese in nature is highly appreciated in this country. As such, our company should try as much as possible to make the company resemble or meet the expectations of the Chinese people. Bringing in people from America to totally manage and run our company would only make our company more foreign in China. It is vital to hire local talents in our company (Kelley, Kelley Shenkar, 1993).
To attract and develop talents of American managers who are to be sent to manage our company in China, a thorough training on business culture and etiquette of Chinese people as well as some of the critical Chinese phrases or terms that will make them to be accepted in China should be offered. Chinese people understand that foreigners need not to know their language in full but they are enthusiastic on foreigners who can speak a few phrases of their language as this is viewed as a genuine interest on the culture of the people. American managers chosen to lead the company in China should be taught how to appreciate the culture of Chinese people. To attract top talent of local Chinese people, our company should approach some of the most respectable businessmen in China to act as a guide during the hiring process for the new company. This way, business relationships or guanxi would be cultivated for our company. Locally hired employees from china should also be enlightened on the different business etiquette of Americans and the differences in interpretation of non verbal signs so as to reduce conflict within the company and enhance diversity management practices (Tian, 2007).
Training is the most critical way that can help in solving the cross cultural differences that exist between Americans and Chinese working for our company. Both American and Chinese employees in our company need to be trained on diversity and its various aspects so as to ensure harmony exists in our company. Training in cultural differences is essential in helping employees appreciate one another despite their cultural differences (Tian, 2007).
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