China Myth

Case Study
MGT 87500 Organizational Development and Design
California Southern University
Khaldoun Obaidat
Presented To:
Dr. Stephanie Hoon
March, 2015

China Myths, China Facts Case Study
Culture is the characteristics and knowledge of a particular group of people, defined by everything from language, religion, cuisine, social habits, music and arts (Zimmermann, 2015). According to Hofstede (1980), cultures can be compared and classified on the basis of five different dimensions that affect behavior, organization practices, and social practices such as marriages, funerals, and religious ceremonies: Individualism – collectivism, Power distance, Uncertainty avoidance ,Masculinity – femininity and Short term – long term orientation.
The biggest challenge of global business is Cultural Barriers according to Van Thompson (Editor at Houston chronicle) “Different cultures have different values, and sometimes these differences can be stark. Gender, for example, could prove problematic in countries where women are not given equal rights to men.. Some cultures don 't take contracts as seriously as others, and many cultures view the group as more important than the individual. It 's important to learn the cultural intricacies of the places you do business.
In china myth case study, we counter three issues. First: Collectivism Vs, Individualism. Second: Long-term deliberation Vs. Real-time reaction. Third: Risk Aversion vs. Risk Tolerance. The biggest challenge for U.S corporate when they run a global business is cultural barriers because different cultures have different values, and sometimes these differences can be harsh. East and West Cultures can be divided into two categories: collectivist and individualist. Collectivist cultures such as Korea and China stress family and work group goals over individual goals or desires. Individualist cultures, such as United States of America and Europe, stress on personal success in spite of the expense of work group goals, resulting in a stiff competition.. Collectivism and individualism deeply pervade cultures. In the U.S and Europe, everything reflects the deeply embedded individualism. While, in China everything reflect collectivism,
The speed of decision-making and execution in China is extraordinary compared with the USA and West Europe. In Chinese culture decision making take longer, time than USA. In the article, “Cultural Differences in Decision Styles” by Brittany Goss writes: “Different cultures utilize different decision styles, there are many different ways in which individuals come to a decision, but there are also differences in decision styles between cultures. Companies, managerial systems and governments make decisions differently in different cultures. It is significant to value and respect these cultural differences in decision styles in order to foster positive cross-cultural communication”. In USA, we manage on debate and discussion between opposing parties that leads to democratic decision making. In addition, we have a tendency to employ a hierarchy, whereby anyone in top a management position can override the team decision or make a decision without consulting work team.While, the Chinese management model normally seek out to maintain social order through a harmony within management hierarchy arrangement. Chinese managers lean to be more hierarchical in their decision-making processes. They do not ask lower level workers for their opinions or ideas, upper management make the decisions themselves. The power distance between upper management and workers is notably bigger in China than U.S managerial systems.
In Chinese business model they are risk aversion, they have a lot of confidence, and we are very comfortable with taking risk. While in U.S and Western Europe their business model are risk tolerance they like to debate the plan, print it out, debate it again, and analysis it. In the article, “Influence of Chinese Culture on Decision Making Styles & Processes” by Natalie Smith writes: China is home to many skilled businesspersons and politicians. To the uninitiated, Chinese decision making can seem mysterious, or even, for some Westerners who rely on scientific thinking, erroneous. However, decision making in China has logic of its own, and this logic is based on several factors. These factors include the Chinese preference for ‘inductive reasoning’, and to look at the big picture when making decisions. Inductive reasoning starts with general observations and uses these observations to form a conclusion. On the other hand, Western thinking is based on ‘deductive reasoning’, in which a hypothesis or idea is proposed and then evidence is gathered and a decision is made based off the evidence. Neither way is correct or incorrect; the two styles of reasoning are just different.

Solutions
Western or American companies must realize that it they cannot take the same business model and simply apply it to China business model. They must to be flexible and adjust to business model.
In order to be successful, International businesspersons must be able to accommodate different decision-making models.
Intercultural training may need. The intercultural training is helpful for preparing businesspersons to work in another or different culture around the globe.
Meditation techniques .
Understand Chinese culture, ethics, values, etiquette and protocol.
Build the right relationships with Chinese partners before start doing business.
Understand Chinese leadership style.
Open hearts and mind for other culture and understand the importance of culture in global business.
Understand how to deal with high context culture.
Patience is key; American must be prepared to spend more time negoationg when making deals.
Educate American companies that Chinese are risk taker .

Justification
Western and American companies must realize that it they cannot take the same business model and simply apply it to China business model. They must to be flexible and adjust to business model. Due to these differences, many business practices in China do not always conform to accept international standards. Without a presence and close supervision in China, it will be difficult for any company to ensure its agents and employees (Sullivan & Goh, 2010) are advancing its best interests. In order to be successful, International businesspersons must be able to be flexible and accommodate different decision-making models. It is essential to understand and respect for cultural differences when working with different cultures. American businesspersons must learn from the decision-making styles of other cultures, as result this will allow them to try new approaches. Moreover, understand different decision-making style patterns can help to expect how they will react to diverse situations.
Intercultural training is useful for preparing people to work in another culture. Training is the transfer of skills for a specific purpose. Intercultural training is training intended to transfer skills to people who are, or will be, working with people from different cultural backgrounds than their own. Participants in intercultural training include businesspersons working in a country other than their country of origin, or those working closely with people from other cultures. Members may also include the families of businesspeople who are living outside their home country as well as students studying abroad (Deal, 2002). Intercultural training is designed to transfer skills that were developed through the complicated process of socialization through which people gain their culture (ways of thinking, perceiving, and communicating). Thus, for intercultural training to be effective, it must also give its participants a body of knowledge, which forms the basis for the new skills they will be learning. Intercultural training has been referred to as "the mindset which informs the skill-set" (Bennett, 1996).
Mediation may need. American culture and Chinese culture hold severely different views of themselves and their suitable relationships to others. Therefore, their approaches to conflict resolution lean to diverge in equally dramatic ways. An effective mediators are aware of the cultural assumptions upon which their mediation models are based and attempt to adjust the models in order to prevent contrasting individualist and collectivist paradigms from becoming obstacles to agreement ( Wright, 2000).Every mediation has a exceptional personality influenced by the cultural perspectives of its participants. Differentiations in viewpoints may impede an agreement if the participants ' views diverge on such fundamental issues as individual autonomy and group interdependence. In case a problems based on individual rights or strong group identification, arise in mediation, a mediator 's awareness of individualist and collectivist paradigms can help surmount such cultural barriers to an agreement (Wright, 2000).
To deal successfully with Chinese businesses demands an appreciation of the culture of China, in both the social and business settings. At the very least, the American businessperson should attempt to understand and respect the Chinese business model. The Chinese are a proud nation. Several business deals not succeed at the outset due to fundamental misunderstandings (Wang, 2010). The hardest portion of understanding Chinese people is to understand their ethics, values, etiquette and protocol. China may seem to be in a hurry, the Chinese businessperson is not. if you are prepared to understand and respect the business culture of China, you have a realistic chance of genuine success. However, if you are prepared to embrace the culture more fully, those chances increase manyfold. An open mind will open negotiations, but open-heart will open doors (Wang, 2010).
Building the right relationships with Chinese partners before doing business , patienceis the key to success. Good relationship is probably the most vital single benefit of any successful business strategy in China. . American business people will need time to build up a relationship with the potential partner. In Chinese culture a good relationship will make all the difference in guarantee the future business will be successful. building the right relationships with Chinese partner will reduce the risks, frustrations and disappointments that are unavoidably possible in any business. Therefore, it strongly recommended for foreign investors for doing business in China is to set up a joint venture with a Chinese partner. As result, many of the cultural difficulty can be triumph over with minimum frustration.
Patience is key; American must be prepared to spend more time negating when making deals It takes time and effort to build such a relationship and sell the deal. When dealing with potential partners to sell a deal , the Chinese business man will not be rushed into an agreement because China is expanding rapidly, and they got a lot growth opportunity. However, if American businessperson tried to rush a business his offer may denied.
Understand Chinese leadership style. chinese leadership style executes both transactional and transformational leadership styles, but they prefer to utilize transformational leadership. in contrast, collectivistic non-leaders preferred transactional leadership style. American business leaders must adjust to different cultuers rapidly and work with Chinese partners and employees (House, HangesJavidan, Dorfman, & Gupta 2001). We cannot think that a successful American manager in his country will be successful in another country.
Understand how to deal with high context culture. Interactions between high and low context peoples could be a problem. .Chinese can find American to be abusively blunt. While, American can find Chinese secretive, devious and bafflingly unforthcoming with information American investors must understand how to deal with high context culture. Chinese is a very high context culture, which the communicators assume a great deal of commonality of information and observations, so that less is spelled-out clearly and much more is implicit or communicated in indirect ways. While, Americans as low context culture is one in which things are fully spelled-out. Things made explicit, and there is considerable dependence on what is actually said.
American companies should understand that Chinese are risk taker because they live in network work society and they are willing to help each other when the situation comes up. For American and Western investors it better to partnership with local investors. We could all learn something from such unified effort and tolerance for risk about achieving our own entrepreneurial goals—if we are willing to put up with the consequences. Americans must be courageous and patient to succeed in Chinese business environment.
Understand Chinese culture, themes, ethics, values, etiquette and protocol. Open hearts and mind for other culture and understand the importance of culture in global business. Chinese nation have their own culture themes which have a substantial impact on how that culture does business ( Hummel, 2012). Chinese cultural themes are rooted in folk belief and Confucian values, including filial piety, thrift, endurance, and trustworthiness. These values are deeply engrained in the Chinese psyche. The Confucian value of endurance has a profound impact on the business process. In addition, it extremely important to understand that, the Chinese give to not losing ‘face’ in front of a group. Never will the Chinese make someone in their group look stupid or ignorant (Hummel, 2012). Moreover, in Chinese cultures, communication is very slight and indirect. While, the style of American communication can easily create serious offense, despite the best of intentions. In article at profit magazine writer Denise Pirrotti Hummel said” The term “no,” for example, is rarely used in deference to more indirect methods of communicating and an American may hear the Chinese cue for the word “no” including the phrases “maybe,” “we shall see” and “we shall study it,” without ever realizing that these phrases are the Chinese equivalent of no.” Failure to understand these cues and communication failure that can jeopardize the business objective. Failure to understand simple but subtle issues in communication may also cause American investors to lose business

Summary
When going global the challenges the American company must face are new and unusual. Difficulties and obstacles such as culture, the company never featured before are becoming critical in the today business. Different culture can pressure the business in many ways. American investors must be able to handle these difficulties in a way that is satisfying other partners. In china myth case study, we counter three issues. First: Collectivism Vs, Individualism. Second: Long-term deliberation Vs. Real-time reaction. Third: Risk Aversion Vs. Risk Tolerance. Western and American companies must realize that it they cannot take the same business model and simply apply it to China business model. Building the right relationships with Chinese partners before doing business just be patience. Good relationship is probably the most vital single benefit of any successful business strategy in China. American companies should understand that Chinese are risk, taker. Moreover, they must understand Chinese culture, themes, ethics, values, etiquette and protocol. Additionally, they must to be flexible and adjust to business model. Due to these differences, many business practices in China do not always conform to accept international standards.

Case Study Questions
Has this presentation challenged any assumptions you had about China and the Chinese people? Explain.
No. I grow up in Asia and I am very familiar with Chinese culture.
Using your best cultural intelligence, how would you adjust your behavior on a business trip to China?
Answer: for effective business it’s really important understand impact of an individual 's cultural background on their behavior is and I must have the flexibility and ability to engage successfully in any environment or social setting
What cultural adjustments will Chinese managers need to make if they want to effectively manage Americans in the rapidly growing number of Chinese-owned businesses in the United States? The Chinese business people should make the effort to understand and respect the American approach to business. Moreover, they must have the flexibility and ability to dapt to American business model. They must understand that American indiviluast culture is: promotes individual goals, initiative and achievement. Individual rights are seen as being the most important, rules attempt to ensure self-importance and individualism, relying or being dependent on others is frequently seen as shameful and People are encouraged to do things on their own; to rely on themselves opposite of Chinese culture.
Based on what you just learned in this chapter, are you more or less interested in getting a foreign assignment some day? Explain.
Yes I will very interested because it a big Challenge and I like to challenge myself and others. I am so eager to learn about other cultures around the world.

References
Bennett, J. (1996). Unpublished interview, Summer Institute for Intercultural Communication (SIIC), Forest Grove, OR, July 12, 1996.
Deal, C. D. (2002, March). Application of the concepts of individualism and collectivism to intercultural training. Paper presented at the annual meeting.
Deari, H., Lopez, P., & Viktoria, K. (2008). Effects of cultural differences in international business and price neg otiations (Master Thesis). Vaxjo University.
Hofstede, G. (1980). Culture 's consequences. Beverly Hills, Calif.: Sage Publications.
Hofstede, G. H. (1997). Cultures and organizations: Software of the mind. New York: McGraw-Hill.
House, J., Hanges, J., Javidan, M., Dorfman, W., & Gupta, V. (2004). Culture, leadership, and organizations:The GLOBE study of 62 societies. Journal of Cross-Cultural Psychology, 36(5), 628-630.
Houston Chronicle,. (2015). What Issues Arise When Doing Business Globally?. Retrieved from http://smallbusiness.chron.com/issues-arise-doing-business-globally-56877.htm
Hummel, D. (2012). Understanding the Importance of Culture in Global Business. Profit Magazine, (2).
LiveScience.com,. (2015). What is Culture? | Definition of Culture. Retrieved 9 March 2015, from http://www.livescience.com/21478-what-is-culture-definition-of-culture.html
Matthew, S., & Goh, A. (2010). The 5 Biggest Challenges Businesses Face When They Expand To China. Business Insider. Retrieved 9 March 2015, from http://www.businessinsider.com/the-five-biggest-practical-challenges-for-foreign-smes-in-the-chinese-market-2010-12 psychology Wiki,. (2015). Collectivist and individualist cultures. Psychology Wiki. Retrieved 9 March 2015, from http://psychology.wikia.com/wiki/Collectivist_and_individualist_cultures
Ravasi, D.; Schultz, M. (2006). "Responding to organizational identity threats: Exploring the role of organizational culture". Academy of Management Journal 49 (3): 433–458.
Wright, W. (2000). Cultural Issues in Mediation: Individualist and Collectivist Paradigms. Mediate.com. Retrieved 11 March 2015, from http://www.mediate.com/articles/wright.cfm

References: Bennett, J. (1996). Unpublished interview, Summer Institute for Intercultural Communication (SIIC), Forest Grove, OR, July 12, 1996. Deal, C. D. (2002, March). Application of the concepts of individualism and collectivism to intercultural training. Paper presented at the annual meeting. Deari, H., Lopez, P., & Viktoria, K. (2008). Effects of cultural differences in international business and price neg otiations (Master Thesis). Vaxjo University. Hofstede, G. (1980). Culture 's consequences. Beverly Hills, Calif.: Sage Publications. Hofstede, G. H. (1997). Cultures and organizations: Software of the mind. New York: McGraw-Hill. House, J., Hanges, J., Javidan, M., Dorfman, W., & Gupta, V. (2004). Culture, leadership, and organizations:The GLOBE study of 62 societies. Journal of Cross-Cultural Psychology, 36(5), 628-630. Houston Chronicle,. (2015). What Issues Arise When Doing Business Globally?. Retrieved from http://smallbusiness.chron.com/issues-arise-doing-business-globally-56877.htm Hummel, D LiveScience.com,. (2015). What is Culture? | Definition of Culture. Retrieved 9 March 2015, from http://www.livescience.com/21478-what-is-culture-definition-of-culture.html Matthew, S., & Goh, A psychology Wiki,. (2015). Collectivist and individualist cultures. Psychology Wiki. Retrieved 9 March 2015, from http://psychology.wikia.com/wiki/Collectivist_and_individualist_cultures Ravasi, D.; Schultz, M Wright, W. (2000). Cultural Issues in Mediation: Individualist and Collectivist Paradigms. Mediate.com. Retrieved 11 March 2015, from http://www.mediate.com/articles/wright.cfm