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- tropicalSource: Former et al, 2010; Miller, 2010
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
3.8Germany
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.