General informationGuangzhou -CHINA

Official Language Cantonese

Population 5,162,000

Government Communistic

Currency Yuan

Religion Multi-religious:Buddhism, Taoism, Islam, Catholicism, Protestantism, Confucianism

Time zone GMT/UTC + 08:00 hour

Climate Sub- tropical

Hofstede: culture is the “software of the

mind”

CROSS-CULTURAL ANALYSIS

Source: Hofstede, 2011

THEORISTS’ OBSERVATIONS

Hofstede

Source: French, 2010; Hofstede, 2011; Kohun et al, 2007, Luthans and Doh, 2009.

THEORISTS’ OBSERVATIONS

Germany China

Hofstede

Small Power Distance

Large Power Distance

Individualist

Collectivist

High Uncertainty Avoidance

Medium-term

Orientation

Long-term

Orientation

Source: Eurochambres Academy, 2011; French, 2010; Hofstede, 2011; Kohun et al, 2007, Luthans and Doh, 2009.

Low Uncertainty Avoidance

Trompenaars

Germany ChinaUniversalism ParticularismIndividualistic Communitarian

Specific DiffuseAchievement AscriptionSequential SynchronicInternalistic Exernalistic

Neutral Affective

Edward Hall

Need personal space Work/live closelyLow-context

communicationHigh-context

communicationNo groups In-groups and out-

groupsMonochronic PolychronicTask Oriented Relationship Oriented

Germany China

Source: Broda, 2011: Forbes, 2011; Geng, 2010; Hutchings, 2004; Gesteland, 2005.Hutchings et al, 2004; International Business Culture; 2011 Luthans, F., and Doh, J., 2009; Medlock Method, 2011

Humane Orientation

Institutional collectivism

Assertiveness0

1

2

3

4

5

6

7

3.23.8

4.74.44.8

3.8 Germany

China

Main differences identified by GLOBE PROJECT

Source: Busch et al, 2011 p.16; House et al, 1999; Javidan et al 2006 & 2009;

Business Practice Differences

GERMANY

CHINA

Efficiency, rules & procedures

Relationships: guan xi

Contract TrustPunctuality expected Relaxed about time

Gift giving not expected

Gift giving can win contracts

Hierarchy: respect for position

Hierarchy: respect for elders

Individuals working within team

Teamwork

Low level corruption Still high levels of corruption

Few rituals Many rituals, e.g. Business cards

Problems: tackled directly

Problems: avoided, ”face saving”

Source: Gibson, 2010; Kwintessential, 2011; Lau, 2007; Selmer, 2005; Wang, 2011

Female managers

GERMANY CHINA

Glass ceiling: societal influence

Glass ceiling: female modesty

Wide pay gap Narrow pay gap

Weak childcare support Strong family childcare support

Women behave like men Women behave like women

Constant need to prove herself

Easier once gains trust

Source: Gunkel et al, 2007; Krieg, 2006

TOP 10 COPING STRATEGIES1. Have patience.

2. Do not under estimate the importance of “Guan xi” - use group members to introduce yourself to others.

3. Show modest behaviour and respect to elders - “saving face” is considered more important than the truth.

4. Ask senior management to make announcements to groups.

5. Enthuse how the overall group can benefit from change.

6. Do not single members out, group harmony is key.7. Be explicit with your instructions and check

understanding.8. Anticipate others are likely to invade your space.9. Do not take offence if colleagues seek decisions from

malesSource: Bing 2010; Burke, ; Castle, 2008; Chen and Partington, 2003; Dereksy, 2011; Hodgetts et al, 2006; Kwintessential, 2011; Sartor, 2007; WorldBusinessCulture.com, 2011.