Sino-German Intercultural Management: Self-Organization, Communication and Conflict Resolution in a Digital Age (SpringerBriefs in Business) 3030387623, 9783030387624
This book presents the findings of a comparative study on office work culture in Germany and China. Focusing on behaviou
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English Pages 79 [75] Year 2020
Acknowledgements
About This Book
Instructions for the Use of This book
Contents
About the Author
List of Figures
List of Tables
1 Seeking Added Value in the Digital Business World
1.1 Digital Economy with New Working Rules and Challenges
1.1.1 Shift of Position of Human Workers
1.1.2 An Open System Without Borders
1.1.3 Changing Working Concept
1.1.4 The Double Role of Being a System Builder and Part of the System
1.1.5 The Individual as a Global Player and Local Hero
1.2 The Mindset Challenge—Digital Transformation Requires Intercultural Rethinking
References
2 Intercultural Management as a Powerful Business Tool
2.1 Culture as a Supplement to International Management Competence
2.2 The Process of Intercultural Awareness
2.2.1 Mindfulness
2.2.2 Perception of Foreignness
2.2.3 Broadening of Perspective
2.2.4 Implementation
2.3 Intercultural Skills Pave the Way to Intelligent Communication
2.4 The Way to Perfect Intercultural Expertise
2.4.1 Discovering Common Ground and Discrepancies with Your Foreign Partners
2.4.2 Setting up Your Own ToolBox
References
3 Action Research—An International Comparison of Country-Specific Work Methods in Germany and China
3.1 Starting Point
3.2 Objective
3.3 Methods and Presentation
3.4 Study Result
3.4.1 Organization
3.4.2 Business Procedure
3.4.3 Communication
3.4.4 Conflicts
3.5 Application of Study Results in Practice
3.6 Open Points for Solutions in the Future
References
4 Tools and Exercises
4.1 Reporting
4.2 Relationship Management
4.3 Meetings: How to Get Individual Opinions
References
Bibliography
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SPRINGER BRIEFS IN BUSINESS
Joanne Huang
Sino-German Intercultural Management Self-Organization, Communication and Conflict Resolution in a Digital Age 123
SpringerBriefs in Business
SpringerBriefs present concise summaries of cutting-edge research and practical applications across a wide spectrum of fields. Featuring compact volumes of 50 to 125 pages, the series covers a range of content from professional to academic. Typical topics might include: • A timely report of state-of-the art analytical techniques • A bridge between new research results, as published in journal articles, and a contextual literature review • A snapshot of a hot or emerging topic • An in-depth case study or clinical example • A presentation of core concepts that students must understand in order to make independent contributions SpringerBriefs in Business showcase emerging theory, empirical research, and practical application in management, finance, entrepreneurship, marketing, operations research, and related fields, from a global author community. Briefs are characterized by fast, global electronic dissemination, standard publishing contracts, standardized manuscript preparation and formatting guidelines, and expedited production schedules.
More information about this series at http://www.springer.com/series/8860
Joanne Huang
Sino-German Intercultural Management Self-Organization, Communication and Conflict Resolution in a Digital Age
123
Joanne Huang Huang+Jaumann Wirtschaftsbüro Augsburg, Bavaria, Germany
ISSN 2191-5482 ISSN 2191-5490 (electronic) SpringerBriefs in Business ISBN 978-3-030-38762-4 ISBN 978-3-030-38763-1 (eBook) https://doi.org/10.1007/978-3-030-38763-1 © The Author(s), under exclusive license to Springer Nature Switzerland AG 2020 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
Acknowledgements
My heartfelt thanks go to Mr. Walter Hammer for his generous support and to all experts who joined the studies.
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About This Book
Nowadays our work reality is crossing borders and takes place on two levels: the real and the virtual platform. One big challenge of our business activities is the improvement of a productive outcome by the entire value chain. The present industrial and digital age unites three main elements: persons, machines and digits with the expectation of a smooth cooperation. Considering the demanding requirements of the digital transformation of the global business world one has to explore additional success factors to meet the urgent needs of a new world economy. Country-specific work cultures and business practices are influencing elements that have been identified as hidden stumbling blocks popping up unexpectedly during a project and causing additional expenses. Exactly here lies the potential for the optimization of international project management. The content of this book is aimed at all companies and experts operating on an international level. Its motivation is the promotion of a successful international cooperation between different enterprises. The essential function of intercultural management is to bridge the differences between countries. For this purpose, we conducted a field research to define the common ground and the differences between foreign business partners. Germany and China were selected for a comparison. The focus of the study is the increase of efficiency based on the knowledge of culture-related mind-sets and country-specific work methods when conducting business. A comparison of different thinking patterns and ways of behaviour in various countries reveals different concepts of order. The purpose of this book is furthermore to show ways how to develop innovative tools and models for a different work structure and organization with results applicable in enterprises as well as by experts. At the same time, you will discover various convergence points to establish a harmonious cooperation. Therefore, this book places great emphasis on practical application and provides numerous case studies with exercises for self-training. Moreover, it promotes acquiring the ability of dealing with strangeness and differences by respect, openness and reciprocity.
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About This Book
Instructions for the Use of This book The book is divided in the following four chapters, each with a different topic. There is no need to start with the first chapter. Each one can be read independently, hence you can choose, which chapter you want to read first. Chapter 1 outlines the working conditions of the current business world combined with the accompanying rules and handling requirements which have to be redefined in a new environment. It helps to discover possible interfaces that can be used to create further added value for an advantageous competitive position. Chapter 2 describes the model of intercultural awareness with the different steps and techniques to refine the own level of consciousness. The objective is to heighten the sensitivity for other cultures and the perceptiveness in a strange environment. Chapter 3 presents the results of the research. The comparison of countryspecific work practices such as work methods, work rhythm, priorities, communication patterns as well as practical suggestions will help to improve the efficiency. Chapter 4 is the tutorial part of this book. It presents different case studies with intercultural tools and exercises for your personal practice. It will boost intercultural skills, especially your “gut feeling”.
Contents
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1 Seeking Added Value in the Digital Business World . . . . . . . 1.1 Digital Economy with New Working Rules and Challenges 1.1.1 Shift of Position of Human Workers . . . . . . . . . . . 1.1.2 An Open System Without Borders . . . . . . . . . . . . . 1.1.3 Changing Working Concept . . . . . . . . . . . . . . . . . . 1.1.4 The Double Role of Being a System Builder and Part of the System . . . . . . . . . . . . . . . . . . . . . 1.1.5 The Individual as a Global Player and Local Hero . 1.2 The Mindset Challenge—Digital Transformation Requires Intercultural Rethinking . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Intercultural Management as a Powerful Business Tool . . . 2.1 Culture as a Supplement to International Management Competence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2 The Process of Intercultural Awareness . . . . . . . . . . . . . 2.2.1 Mindfulness . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2.2 Perception of Foreignness . . . . . . . . . . . . . . . . . 2.2.3 Broadening of Perspective . . . . . . . . . . . . . . . . . 2.2.4 Implementation . . . . . . . . . . . . . . . . . . . . . . . . . 2.3 Intercultural Skills Pave the Way to Intelligent Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4 The Way to Perfect Intercultural Expertise . . . . . . . . . . 2.4.1 Discovering Common Ground and Discrepancies with Your Foreign Partners . . . . . . . . . . . . . . . . 2.4.2 Setting up Your Own ToolBox . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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3 Action Research—An International Comparison of Country-Specific Work Methods in Germany and 3.1 Starting Point . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2 Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3 Methods and Presentation . . . . . . . . . . . . . . . . . . 3.4 Study Result . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4.1 Organization . . . . . . . . . . . . . . . . . . . . . . 3.4.2 Business Procedure . . . . . . . . . . . . . . . . . 3.4.3 Communication . . . . . . . . . . . . . . . . . . . . 3.4.4 Conflicts . . . . . . . . . . . . . . . . . . . . . . . . . 3.5 Application of Study Results in Practice . . . . . . . 3.6 Open Points for Solutions in the Future . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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4 Tools and Exercises . . . . . . . . . . . . . . . . . . . . 4.1 Reporting . . . . . . . . . . . . . . . . . . . . . . . . 4.2 Relationship Management . . . . . . . . . . . . . 4.3 Meetings: How to Get Individual Opinions References . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
About the Author
Joanne Huang is Taiwanese and a native speaker of Mandarin and Cantonese. She is a project consultant, coordinator for German and Chinese enterprises, intercultural trainer and coach as well as co-owner of the economic consultancy Huang+Jaumann in Augsburg, Germany. After her graduation as bachelor of business administration she was employed in the IT-sector in Taiwan and came to Germany in 1992. In Augsburg, she completed her studies as a qualified economist and became a free-lance economist in 2001. Since 2003 she is conducting workshops throughout Germany. As a writer and author she regularly publishes essays about the Chinese mentality and the behaviour patterns in the business world. Due to her work she is cooperating on a daily basis with people from different cultural backgrounds. Her main topic is the possibility of a harmonious cooperation between diverse cultures in the industry. Treating culture as know-how turns it into a tangible concept for everybody and hence it will contribute to the entrepreneurial value added. Joanne Huang investigates conflicts occurring in projects between European and Asian business partners to understand behavioural patterns and to discover possible interfaces between both cultures. She develops approaches and methods e.g. the addition of a “culture compartment” to the “tool box” for international projects. Her objective is to treat culture as a tool so that it turns into a tangible and applicable approach for everybody.
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List of Figures
Fig. 1.1 Fig. 2.1 Fig. 2.2 Fig. 2.3 Fig. 2.4 Fig. Fig. Fig. Fig.
2.5 2.6 2.7 3.1
Fig. 3.2 Fig. 3.3 Fig. 3.4 Fig. 3.5 Fig. 3.6 Fig. 4.1 Fig. 4.2
Position shift of people in the digital world of work factors. Source Joanne Huang . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Three business factors with reciprocal influence. Source Joanne Huang . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Process of intercultural awareness. Source Joanne Huang . . . Secret message from the teapot. Source Joanne Huang . . . . . Wall decoration at a Taiwanese temple. Source Joanne Huang . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Asian lady with mouthguard. Source pixabay.com . . . . . . . . Pleasure of sharing food. Source Joanne Huang . . . . . . . . . . Drinking culture in Asia. Source pixalbay.com . . . . . . . . . . . General conditions of organizational environments. Source Joanne Huang . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Business execution. Source Joanne Huang. . . . . . . . . . . . . . . Different work rhythms. Source Joanne Huang . . . . . . . . . . . Country-Specific communication patterns. Source Joanne Huang . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conflict management. Source Joanne Huang . . . . . . . . . . . . . Bridging the communication difference between Germans and Chinese. Source Joanne Huang . . . . . . . . . . . . . . . . . . . . Optimizing intercultural management skills and expanding the toolbox. Source Joanne Huang . . . . . . . . . . . . . . . . . . . . Relationship barometer. Source Joanne Huang . . . . . . . . . . .
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List of Tables
Table Table Table Table
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Natural perception of human beings . . . . . . . . . . . . . . . . . . Environmental conditions of international projects . . . . . . . Identification of possible areas of conflict in the business . . Content of cultural know-how . . . . . . . . . . . . . . . . . . . . . .
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Chapter 1
Seeking Added Value in the Digital Business World
Abstract Digitalization changes the form of business enormously as well as our working conditions. The business world is becoming a huge framework consisting of humans, machines and digits where we have the double role of system builders and at the same time being part of the framework. During the dynamic phases of change, we have to adapt to the new environment and create added value in order to survive in the challenging competition of the business world. Where are our chances in this new work environment to match machines and digits? How can we develop even more advantages? In this chapter, we analyse the working conditions in this new age and focus especially on promoting the intercultural potential of persons in the global challenge. The ability to maintain good cooperation between partners is most certainly a big advantage. Taking into consideration the cultural factors, it enables us not only to achieve higher productivity of companies but also to uphold the work-life balance in a time of encompassing effects on global business. Keywords Intercultural management · Digital transformation · Added value · Human resources · International project management · Systemic · Agile · Industry 4.0 · Cultural factor · Work-life balance It is tough work to successfully conduct business. Although we enter the digital economy, the survival rules of the business jungle stay unchanged—never stop looking for added value and creating further advantages over other competitors. Over the centuries, the development of the market economy has established numerous theories and countless researches took place. Many useful models and factors were created and established based upon this solid foundation on how to conduct business in a better way and at the same time achieve higher productivity. In our age and time, people are smarter because they learnt a great deal from former generations and therefore benefit from a huge amount of expertise and experiences. But that is not the end of it. The market keeps changing, and we have no choice but to continue to look for even more possibilities to maintain a competitive edge. Where are the areas for improvement? Where can we create more added values and unique advantages? The various elements such as better techniques, improved products, better supply chain management and more competitive prices are all essential to maintain or to ensure a competitive position on the market. What else could be © The Author(s), under exclusive license to Springer Nature Switzerland AG 2020 J. Huang, Sino-German Intercultural Management, SpringerBriefs in Business, https://doi.org/10.1007/978-3-030-38763-1_1
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optimized? In order to find answers to this difficult question, it is useful to examine our existing working conditions to get a clear view of the current situation.
1.1 Digital Economy with New Working Rules and Challenges The prospective model of our business world is global digital networking from resource procurement to customer service. The main objective is the effective cooperation between all production and distribution stations, regardless of their location. Therefore, a new working environment is created where machines, programs and people will cooperate smoothly (Industry 4.0). At this moment in time, it is hard to foresee how the digital revolution will eventually affect our lives. But one thing is certain: nowadays the digital transformation is omnipresent, and we already have been digitalized since long time without really being aware of it. The telephone service is a perfect example. For some time now, we make calls to the customer hotline of banks, insurance companies, airlines and other institutions, and the first thing we hear is the voice of a robot. When visiting a company, you probably sign up at the reception monitor before you proceed to the gate. More and more news we read online is written by robot journalists. When driving a car, the Global Positioning System (GPS) shows us the way to our destination. In daily life, we communicate with friends mainly through social media. Our participation in the digital world is much more intense than we might think. When it comes to the digital revolution, there is no end in sight; the next industrial phase with artificial intelligence (AI) is already on the move and approaching fast. The problem with digital transformation lies in the fact that we focus entirely on the build-up of a perfect framework and take great pains over machines and programs but unfortunately we spend little time on the key factor—human workers. During the transformation process, employees and project teams often do not receive sufficient personal support. They are urged instead to adjust without assistance to the digital environment to meet job requirements and to work more productively. This is tough, no doubt about it, and we will have to struggle through. But here is also a chance we can use to our advantage. We need to pay more attention to the work factor to create new added value for ourselves as well as for the enterprise. It is worth to make the effort to review our situation as human resources in the new digital economy. In that way, we will be able to constantly realign ourselves and find our balance in a time of change.
1.1 Digital Economy with New Working Rules and Challenges
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Fig. 1.1 Position shift of people in the digital world of work factors. Source Joanne Huang
1.1.1 Shift of Position of Human Workers The transformation from industrialization to digitalization is simultaneously accompanied by a restructuring of the working conditions. As a result, we can observe a power shift within the factors of manufacturing. Previously, human beings were at the centre of the working world. In the digitized production environment, the value chains have been redefined, and people are equivalent to plants, programs and processes. Due to this redefinition, the human factor slips from the centre into a secondary position; see Fig. 1.1. We have to face the fact that nowadays our role is different from the past. The relation between humans and other manufacturing factors has changed drastically, and the same happened with the relation between dependence and independence in regard to people. Companies as well as employees need to rethink and make the appropriate adjustments.
1.1.2 An Open System Without Borders The world of digitization is actually a huge “system” uniting the three main elements: digits, machines and humans. Inside this big framework, there is a “social system” with very blurry borders (systemic theory). We have to do excellent work not only with real machines and virtual programs but also when cooperating with people at their workplace wherever the real or virtual stations maybe. Our working place is turning into an open system that is anonymous and diverse. Consequently, the social working society in the global industry of the future has the following features (Huang 2017): • high technical expertise • geographical distance to the partner
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• low social commitment • high social tension.
1.1.3 Changing Working Concept Quite obviously, a conventional working concept in this new environment is no longer effective and somehow even an obstacle. Projects are constantly getting more complex; project teams with partners from all over the world often exist only virtually. The work places to meet colleagues, partners or customers are usually the monitor screen or the phone. A personal meeting seems to be unnecessary. With the help of communication technology, a conference can take place anywhere at any time. As a result, also a dress code is no longer important. A meeting can, for example, take place right before the partner goes to bed wearing already his pyjamas. It can also happen that during a conversation your little kid is sitting next to you. Technology gave us more freedom to perform certain tasks. On the downside, however, we are constantly involved in our work. A separation between work and private life is becoming increasingly difficult. In fact, a lot of the digitized working environment is still new to us. Hence, it is understandable that in this time of upheaval insecurity prevails. We have to undergo a process of reorientation to adapt properly. A constructive attitude would imply to actively deal with changes and thereby find the right balance. Apart from professionalism and self-discipline in digital transactions, social competence did by no means loses its importance. Furthermore, it is a fact that the skill of intercultural management as an additional qualification comes into play. Never forget that despite all the hardware and software, we still work with people on a project. The business world of the future urgently requests special excellence. Professional job skills alone will not be sufficient, and a high degree of attention and flexibility of action in terms of the market and personal dynamics will be required. A new common working culture is urgently needed to meet the demands of the future. Politicians and companies have to prepare their employees for these demands and train them accordingly.
1.1.4 The Double Role of Being a System Builder and Part of the System In this new world order, we as the human factor have lost our absolute position. Nevertheless, we are still the only ones to assume the liability of all manufacturing and selling activities and have to take responsibility for the business outcome. Whether we like it or not, we are in a quite paradoxical position: we have the double role of being system builders on the one hand and on the other hand being part of the system.
1.1 Digital Economy with New Working Rules and Challenges
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Table 1.1 Natural perception of human beings
Source Joanne Huang
This also reflects our special position in the new workplaces of the future consisting of humans, machines and digits. Furthermore, we are facing the main challenge of reducing human errors. Frankly, the reduction in human errors might be more difficult than to create a perfect machine. Let us be realistic: human beings are not perfect. It is a law of nature and perhaps this serves as an advantage to survive when competing against machines and programs. We have reached the present status due to our natural abilities such as curiosity, ideas, creativity and critical thinking, and these abilities give us pleasure. It also makes perfect sense to continue to optimize our own competence for the sake of cooperating with others. This might be the best added value we can create for ourselves. The special challenge lies in the nature of human beings. We are able to easily recognize problems when work partners and incidents are in front of our eyes. The problem of a virtual workplace is that we are only able to see ourselves in the system— the foreign partners remain invisible. We are very well aware of our own situation but not so much of the condition of our partners in another country. Therefore, we should not be surprised if foreign partners have difficulties in recognizing our problems; see Table 1.1. The cooperation of global experts needs improvement.
1.1.5 The Individual as a Global Player and Local Hero By performing international projects, we find ourselves in a strange situation. We work isolated in an office and focus on subtasks we are in charge of. At the same time, we virtually communicate almost daily with partners in other countries without being really interested in knowing who they are. In international projects, it might be more appropriate to call the different parties a work group instead of a team. The members of a project team do not necessarily need to be friends but most of us know far too little about others and sometimes we even work against each other because we have different interests or goals. Most certainly, higher productivity will never be achieved if each member of the project team concentrates on completing his own
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tasks only but nevertheless expects others to complete their tasks on schedule without ever considering the emotional side of the job. Even in the digital age, teamwork is absolutely indispensable. We have to be aware that our playing field actually consists of two platforms with different conditions. At work, we constantly move between these two platforms without realizing it. Many intercultural conflicts, results of serious misunderstandings and misinterpretations, have their roots right there. The first platform is the local natural environment where we grew up and live (original culture). As human beings, we absorbed specific mentalities and judgements of our homeland during childhood and our school years. We adopt the traditional ways of life, certain points of view, morality, ways of thinking and rules of behaviour of previous generations and take them for granted. They form the unique culture of a country. They become part of our nature, and we consider them absolutely normal, just like the air we breathe or the water we drink. The environment takes care of our acculturation process, and we unconsciously assume that more or less all people around the world think and act in the same way. The second platform is the global virtual environment where we work (adapted culture). All processes of commerce and production are structured by theories and clear rules. In order to ensure a worldwide uniformity, various regional or international management certificates for different industrial areas such as International Organization for Standardization (ISOs), Restriction of Hazardous Substances Directive (RoHS), Conformité Européenne (CE), Underwriters Laboratories (UL) and others were put in place. Everybody can acquire this knowledge through education in colleges, universities and training schools. This is the common ground we share with our foreign partners. Table 1.2 shows the global and local working environments which directly and indirectly affect the team performance. We are all small local heroes playing on a big global stage. Even if we do our best, there are many things that might obstruct global teamwork. One example is the lack of knowledge of a country-specific culture which could cause serious conflicts in a team. Here lies the opportunity to make improvements without any huge efforts Table 1.2 Environmental conditions of international projects
Source Joanne Huang
1.1 Digital Economy with New Working Rules and Challenges
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and create advantages. More knowledge puts us ahead in the competition. In the following chapters, you will learn more about the ways to achieve this knowledge in practice.
1.2 The Mindset Challenge—Digital Transformation Requires Intercultural Rethinking The integration of the systemic concept and agile methods in the industry has led to the wide spread understanding to pay more attention to the environment. Even better, it motivates engineers and technicians to step out of their technical comfort zone, pay attention to the market dynamics and perform their work in view of the entire system. However, something is still missing linking local business cultures. Every single working station of engineers is very powerful indeed. But experience shows that as soon as stations from all over the world come together, productivity as a whole decreases. Analyses show that the reasons are not technical inconsistencies, but mainly personal and communicative factors (Balzer and Wilhelms 2005, pp. 51–68, 200). Diversity is great, but we need to bridge the cultural disparities. Globalization and digitalization are inseparable and cannot be stopped. There is no other way but to empower ourselves to remove the existing barriers. We have to find a way to connect all those isolated working stations and moreover activate in a casual way the best team performance possible. Country-specific factors are hidden stumbling blocks and divide partners due to wrong expectations or misunderstandings. However, this requires all the more an intercultural rethinking process. The best way to further smooth cooperation of specialists of all nations involved is trying to understand others. Our first step includes reaching the point to accept strangeness and otherness. Are our minds ready for this challenge? How big is the gap between the specific mindset of the staff in different countries and continents? The cultural factor plays an important role, and being familiar with this factor helps to build a productive balance between countries and continents. Being knowledgeable about partners from other countries puts you in a position to better understand their expectations and ways of thinking.
References Balzer D, Wilhelms G (ed) (2005) Projektmanagement im Fokus – Standpunkte, Sichtweisen, Schwerpunkt. Ziel Verlag, Augsburg pp 51–68, p 200 Huang J (2017) Die Auswirkung der Digitalisierung auf unser Arbeitsleben und ihre Herausforderung. https://www.gpm-blog.de/die-auswirkung-der-digitalisierung-auf-unserarbeitsleben-und-ihre-herausforderung/. Accessed 04 May 2019
Chapter 2
Intercultural Management as a Powerful Business Tool
Abstract Culture represents the new added value in the digital business age. Every country has a different mindset. Knowledge about the thinking and behaviour patterns of staff members from other cultures helps to create a constructive communication flow and to perfect the virtual teamwork. Intercultural management starts with the management of knowledge. Culture is know-how, and with conscious efforts it can be significantly advanced. The skill of intercultural expertise enables you to create communication channels with foreign business partners and to establish a trustful and sustainable partnership. The process to achieve intercultural awareness contains four major steps: mindfulness, perception, perspective and action. For each step, you will find exercises with an image analysis. They provide a better understanding how to perceive occurrences in foreign countries. The main goal is the self-organized learning process and the improvement of the personal ability to deal with strangeness. Each example provides information about a specific cultural background and a customized pattern of local work practices. Keywords Intercultural awareness · Mindfulness · Perception · Perspective · Business etiquette · Agile concept · Relationship management · Local work practices · Intercultural communication Intercultural management is committed to manage cultural knowledge, and its tools focus on the improvement of (business) relationships. We are not talking about personal skills only, but it should be applied in the management of international operations as well to further a smooth cooperation. Intercultural management can be widely adopted as a helpful instrument for team building, corporate communication, conflict resolution, negotiation, customer and supply chain management and in other areas. Although it cannot eliminate the differences between countries, it can lessen the emotional distance between business partners and create the willingness to cooperate. This spark of goodwill is the key to success and leads to dialogues. An international project is never a one-man show as one person alone can rarely master a critical situation. Be the one who brings people together and motivates them to work hand in hand as a group. The first small step of one single person could prove to be a giant leap for the entire team and rescue the business.
© The Author(s), under exclusive license to Springer Nature Switzerland AG 2020 J. Huang, Sino-German Intercultural Management, SpringerBriefs in Business, https://doi.org/10.1007/978-3-030-38763-1_2
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2.1 Culture as a Supplement to International Management Competence Culture is an economic factor and completes the toolbox of international management competence. Each country has its own business culture with specific concepts on how to perform transactions. This knowledge is important and very difficult to obtain and conceive. The technique to handle cultural concepts is to treat them as know-how (Huang 2016, p. 3), in that way they are much easier to understand. Culture, and as a part of it the business culture, contains the values, moral concepts, the concept of order and the code of conduct of a nation. Each nation has different views about what is right or wrong. Somebody who has all this information about a specific country will be in a position to know quite well how to manage certain business situations appropriately. Cultural know-how is the capital for individuals as well as for companies to make a significant contribution to business success. During a business operation, three parts of an international transaction should be taken into consideration and closely observed. There are the professional subjects (business), personal reasons (people) and cultural sensitivities (culture); see Fig. 2.1 (cf. Huang et al. 2015, p. 20). All three have a direct impact on business development and its outcome during a transaction. Furthermore, these three factors reciprocally interact. A business dialogue could go wrong because of a cultural misunderstanding which could then turn into personal resistance. This interaction within the system is the reason why in many cases of conflict it is so difficult to identify the real problem. When we are confronted with conflict or dispute, we should always keep in mind that not all business conflicts have necessarily business-related reasons. We have to watch very carefully what is happening and focus not only on the overt situation but also on the goings-on in the background. It could simply be a technical issue. It could also be that rectification is delayed because of personal interests you are not aware of. Another reason could be the personality of a participant. Some people take offence Fig. 2.1 Three business factors with reciprocal influence. Source Joanne Huang
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Table 2.1 Identification of possible areas of conflict in the business
Source Joanne Huang
quicker than others. The reason could also lie in the specific sensitivity of a nation involved. Talking openly during a meeting about a mistake could, for example, be understood as a personal attack. If the exact reasons for a business conflict cannot be identified, it is strongly recommended clarifying as best you can what triggered the problem instead of trying to solve it without knowing what really took place. Talk with your partners and try to understand their considerations, you might find a better and more sustainable option for all parties involved. The model “business-people-culture” shows possible areas of conflict during business cooperation; see Table 2.1. Check all three areas to identify the possible reasons for a dispute and look at the situation from different angles. Could it be an organizational problem? Is it just a professional confrontation? Could a personal dispute be the reason why somebody refuses to cooperate? Is it simply a cultural misunderstanding? After identifying the related reasons, it will be easier to find the right solutions.
2.2 The Process of Intercultural Awareness Experience has shown that cultural mishaps do occur quite often in daily business life without anybody noticing what happened. You might put your foot in it when dealing with your partner and probably not even realize your own blunder. Intercultural affronts are normal and unintentional misfortunes. People normally do not take these unfortunate incidents too seriously and show some understanding in the light of cultural differences. A few mishaps are forgivable, but in case they accumulate they could amount to a rather serious conflict that cannot be easily excused. Never leave your business success to the chance that your partner is a generous soul who bears with you no matter what. There is no shame in not being familiar with another culture. It is, however, apparently a big disadvantage if the blunderer is not making any efforts to do better. Intercultural competence is your added value, not only for yourself, but also for the corporate proceedings. In the international business world, we all move in an
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Fig. 2.2 Process of intercultural awareness. Source Joanne Huang
unfamiliar environment. The knowledge base of each one of us is more or less deficient. Mistakes are forgivable as long as we learn our lessons. Intercultural awareness is indeed the path to wisdom and also a lifelong learning process. Nevertheless, it is painful to learn by your own mistakes. It is preferable to use an easier way by learning the know-how in advance and gradually optimizing your competence through daily business proceedings. The process of intercultural awareness can be implemented anywhere and at any time. There are four steps to take: mindfulness, perception of foreignness, widening of your own perspective and finally taking action; see Fig. 2.2. Do not wait for a sudden big epiphany, but rather appreciate minor insights into daily business life which slowly enable you to move forward. After some time, you will have accumulated an enormous amount of knowledge and there you are: you became a master without having experienced a lot of stress.
2.2.1 Mindfulness Intercultural awareness is mainly mental work. First of all, you have to be very attentive. You can train yourself to enhance your ability of receptivity. Culture is omnipresent in our daily life. Open your mind and use your natural senses to receive all incoming messages. These messages or signs can actually be found everywhere; we are just not aware of them. Since we are used to recognizing familiar things, we are overwhelmed by the unfamiliar environment of another country and therefore unable to notice signs, even if they occur right in front of our eyes. This type of mental blindness can be reduced by training. We have to open our rigid mindset and move away from existing patterns, only then we will be able to receive the “vibes” and information surrounding us. Observation is a wonderful method to train the eye. Things to be observed are essentially small gestures, facial expressions and behaviour that for foreigners might not make sense but carry great weight for locals. Take a step back and have a look at your surroundings. When you have seen things in foreign countries that you do not understand they could be part of the local culture. Observation is a simple and smart way of training. It can be discreetly performed in all sorts of situations, and you can keep your thoughts to yourself.
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Practice makes perfect. As soon as you know where to look and how to comprehend a message, you will be able to understand the sense behind it. In the following paragraph, there is a little story describing a situation that happened in Asia. Read through it and take a good look at the picture. Take a few minutes and try to judge the situation. What kind of situation could it be? What type of message could be implied? Have you already seen this or something similar during your last visit to Asia? The subsequent explanation reveals a local custom and the way how natives are used to handle it. Case Study 1: Breakfast at a Tea House in Hong Kong Situation You are in Hong Kong on a business trip, and on Sunday your partner Andrew invites you to have breakfast with him. After he has picked you up at the hotel, he drives downtown to a restaurant located at the riverside. It is a traditional Dim Sum Tea House serving local dumpling dishes. It is a beautiful Sunday morning, and the restaurant is crowded and very noisy. The waiters are extremely busy and actually running to be able to serve all the guests in the huge hall.
Fig. 2.3 Secret message from the teapot. Source Joanne Huang
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Luckily, you find a table at the window. You enjoy the delicious food as well as the pleasant conversation with Andrew. Very soon the tea is finished. You are just wondering how to call one of the waiters and order a next pot of tea, when you observe Andrew slightly opening the lid of the teapot; see Fig. 2.3. Within a very short time, a waiter with a water kettle appears at your table and pours hot water into the pot. Explanation Andrew has in fact sent a silent message to the waiters. In the restaurant, the slightly opened lid of the teapot as shown in Fig. 2.3 is a code for: “The pot is empty and the guests require more hot water”. In Hong Kong, it is normal that guests order just one pot of tea for one table. As soon as the tea is finished, the restaurant provides hot water for a refill free of charge. This can be repeated many times until the tea leaves have finally lost their flavour. Do not try to order tea for yourself only, when you visit a tea house together with other persons. This is simply not on. Only in case of a very large group when one pot of tea is obviously not enough, one can place an order for two separate teapots. If you prefer to have a beer or a soft drink, feel free to let your companions know and ask whether they would like to join you. Be aware of regional differences. The signal of the special positioning of the lid on the pot is only valid for Guangdong in Southern China and Hong Kong where Dim Sum Tea Houses are very popular. In other places, you have to order in person.
2.2.2 Perception of Foreignness Perception is the ability to notice something by seeing, hearing and smelling or through other signals. It represents a particular way of understanding or thinking about the information provided (Macmillan dictionary 2019). The stimulation of perception in foreign countries requires primarily an open mind because the function of human perception is very limited due to our own cultural background. From small, we grew up in our native country with a concept of unique values and memories. Without being aware of it, we see the world from a specific perspective, the same as our parents and forefathers. Culture has become our “second skin” and that is, of course, a nice thing. Adapting to new things does not mean to throw our own culture away. It is exactly the opposite. For an ongoing evolution, we need culture as a foundation for any further development. But we will not go very far if we cling to conventional thinking patterns which give us security, but keep us from discovering new options. Nowadays, our living environment is continuously growing,
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geographically as well as digitally. It is therefore extremely important to broaden our minds to seize new chances. The correct interpretation of any information perceived is the key to a positive outcome later on. It is a crucial moment to follow the right track or take a wrong turn. It all depends on your choice what you want to believe. Great danger lies in the existing concept of judgements originating from your native country. The assessment of social and business occurrences requires numerous data consisting of social, psychological, historical, cultural, political and business-related aspects to interpret a certain behaviour or situation. Therefore, it is hardly possible to understand the real meaning of an occurrence in another culture from the position of your own cultural background. For a correct interpretation, you need more information. It is wise to stay open-minded and thereby avoid possible prejudices. It might be difficult to do so, but it will most certainly be worth it. Each time you put your initial judgement aside, you show respect to others and to their culture, which in turn will certainly be appreciated. Avoiding hasty interpretations will prevent you from actions you might regret later such as making imprudent comments or acting thoughtlessly. In case you encounter a very strange situation or witness things that make you feel very uncomfortable or even angry, try nevertheless not to jump to conclusions. Take mentally one step back and give it some time to sink in. What you see might not have the meaning you think it has. Give yourself and others a chance to clarify the matter. Case Study 2: Swastika or Something Else? Situation Your business partner Jason in Tainan, Southern Taiwan, wants to show you the city during your stay. You appreciate his friendly invitation very much and want to take this opportunity to establish the good relationship with him. The city has an ancient history and a lot of beautiful historic buildings. A few hours later, you both have a rest at one of the temples located in the midst of an old tree population. In the vicinity of this park, quite unexpectedly, you discover a swastika sign on a wall that was obviously built some years ago; see Fig. 2.4. To your surprise, Jason does not seem to recognize this symbol. Although the discovery makes you feel uncomfortable, you still try to keep up the pleasant mood, and you ponder if your assumption might be wrong. But there are five symbols on the wall and two of them, one in the top right corner and the other at the bottom on the left, are clearly swastikas. Are the locals not aware of the meaning of this symbol? Have they been put there wilfully to make a hidden
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statement? You would very much like to ask Jason, but on the other hand you really do not want to offend your friendly partner.
Fig. 2.4 Wall decoration at a Taiwanese temple. Source Joanne Huang
Explanation The Taiwanese know the sign very well. The point is that in Asia it has another meaning than in the Western world where the swastika represents the Nazi regime and triggers negative associations. In Asia on the other hand, people recognize in this image the Buddhist sun wheel which comes from India and exists since thousands of years. Hitler shamelessly abused the holy sign for his evil purposes. The Buddhist sun wheel is associated with luck and protection, and you will encounter it frequently in Asia. Asians are aware of the swastika sign of the Nazi regime, but they honestly do not perceive it as such a seriously evil symbol as Western countries do. You might, for example, even discover bars in India and South Korea named Hitler. Some years ago, a company in Taiwan promoted a quality heater from Germany with a big poster of Hitler’s salute. A video advertising a product from South Korea shows a model in the uniform of the French army, and the background music sounds like German military during an airstrike. We might deduct that Asian people are sadly lacking any sensitivity
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towards their Western partners. A weak excuse was offered to Europe which is simply too far away for them to realize the significance of their faux pas. Be that as it may, but the topic per se is not off-limits. Taiwanese are actually quite open-minded when it comes to different points of view. In our previous example, you should feel free to talk to Jason. Do it in a calm and relaxed way and avoid any prejudiced comments. Consider your partner’s feelings and show respect during the conversation. With this attitude, you can discuss all kinds of topics with Jason who in return will express his opinions without restraints.
2.2.3 Broadening of Perspective Each country has unique points of view about the ways of (working) life and social order. These convictions represent the ideals of the majority of citizens. This means that society accepts certain handling procedures, behaviour and beliefs as a result of collective approval. One could compare it to a special cultural contact lens. Each lens has its own unique colour and shape and differs from nation to nation; the respective citizens view the world through this lens. As a consequence, we form the perception of our reality from a certain perspective. In the age of the global digital economy, we therefore have to face the big challenge to deal with different perspectives. Actually, it is not a challenge of choice but a major condition for the sustained survival in the global village. The concept of a flexible customer service promotes a change of perspective to create an increased added value for the clients. This principle is essential and should be applied to other forms of business cooperation with partners, suppliers and subsidiaries as well. It helps enormously to understand the positions and considerations of foreign partners and is the beginning of real teamwork. At the end of the day, the best impact is a broadening of our own perspective, a lifelong benefit for all personal development and professional advancement. Case Study 3: Asian Lady with Mouthguard Situation On a recent business trip to Japan and Taiwan, you observed that many people wear mouthguards in public; see Fig. 2.5. You know as a reassuring fact that there is no epidemic in this part of the Asian continent. However, it is rather
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strange to see those masked people moving about, not only in streets and subways, but also in offices, restaurants and supermarkets. Is it just some weird fashion? Are they maybe sick? How to explain this phenomenon?
Fig. 2.5 Asian lady with mouthguard. Source pixabay.com
Explanation The mouthguard started to be popular in Japan, Taiwan and Hong Kong in 2003 after the outbreak of the respiratory disease severe acute respiratory syndrome (SARS) with thousands of fatalities worldwide. After the disease was conquered, East Asians were accustomed to the mouthguard when having a cold or being sick. People wear it in order not to infect others. Hence, the mask turned into a tool of non-verbal communication with the message: “I’m sick” or “I don’t feel well. Please stay away from me”. On the other hand, if somebody wants to avoid a possible infection by others, he or she also wears a mouthguard. It is, by the way, very useful in daily life, for example against particulate matter during days of heavy smog pollution or in winter to keep the face warm. Later on, people applied it for additional reasons. The mask is sending a message with social content and acts as a symbol for somebody’s state of mind. In case one feels the need to be alone during spare time, the mask signals that one does not want to communicate. Another possible reason could be that a lady is not wearing any make-up, so she prefers to hide her face behind the
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mask. In the digital age, people found a new function for the mask. During the protests in Hong Kong 2019, the demonstrators put on the masks against digital monitoring and face detection. However, feel free to wear a mouthguard yourself if you feel you like it. Just remember to take it off before you enter a bank. Otherwise, you could be mistaken for a bank robber, and the security will bear down on you. Europeans usually find the use of a mouthguard very strange indeed. In Europe, people would try to find other solutions to solve the same problems or situations. From the perspective of Asians, however, the mouthguard is an easy and efficient way to protect one’s health. All other functions discovered are just “added values”.
2.2.4 Implementation The final step to achieve intercultural awareness is putting it into practice. It is not enough to just collect business-related knowledge because it will remain theoretical knowledge only. You have to make your own experiences and test your skills, so that you are able to convert them into practical know-how when handling different situations. As soon as you integrate this know-how in your toolkit, you have a real advantage at work. Do not worry about possible mistakes. It is perfectly alright to make mistakes. It is just like driving a car. Even with a hundred hours of theory, you cannot claim that you are able to drive. You have to get in the car, start the engine and be on the road; only then you will truly experience what driving really entails. With regular practice, you will not only develop your own driving style but also the confidence to handle different situations independently and appropriately. By the way, it is strongly recommended that at first you practise in situations you can control. This is much better than to suddenly and at the drop of a hat confront an unfamiliar situation. During such a planned practice “session”, you are on safe ground. You clearly know what you are doing and you can control any development. In case you realize that something is going wrong or is getting out of control, you can stop immediately. Make sure to choose the right moment for this type of exercise. Gradually you will collect a constantly increasing amount of valuable experiences. The best thing about this method is that you are simultaneously creating your own “handbook”, which is a priceless achievement.
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Learning by doing: The self-training process of intercultural competence can be accomplished step by step as shown below. i. Choose a scenario or a topic. ii. Wait for the right time, circumstances and persons involved Do not be hasty when taking action. Make sure to create a safe environment for everybody involved. Surely you do not want your actions to cause any problematic situations or hurt feelings during the test. Hence, be patient and wait for the right moment. iii. Observe carefully what is happening and take notes. iv. Put yourself in the position of the others and ask yourself what you would do in their place. v. Conduct the dialogue with the persons involved very carefully and check if you correctly understand their considerations. vi. Review what happened and as well as the consequences. vii. You will learn your lesson by reviewing your actions.
Case Study 4: Sharing the Food Situation You are sitting in a restaurant in Germany next to a table with four Chinese tourists. You observe that each one of them orders a main course. After the food is served, they ask for four additional empty plates. Then, they place all the main courses in the middle of the table and share them; see Fig. 2.6. You know from experience that during a meal the Chinese custom demands to share the food with everybody else at the table. Each time you were in a restaurant in China and had a meal together with local colleagues, you never got a dish for yourself only. This is totally fine with you, actually you enjoyed sitting at a round table together with your colleagues. The Chinese staff may be quite serious at work, but rather easy-going when eating together. You and your Chinese colleagues used to talk, make jokes and laugh during these meals, frequently discussed business and exchanged opinions and ideas. You liked this type of atmosphere in China a lot and as well as being part of the group. However, you find it quite interesting that the Chinese keep up the custom of sharing the food during their visit to Europe. What might be the reason?
2.2 The Process of Intercultural Awareness
Could it be group pressure? Is it perhaps difficult for Chinese tourists to adapt to another culture?
Fig. 2.6 Pleasure of sharing food. Source Joanne Huang
Explanation Chinese simply love to eat. For them, it is a great pleasure. The Chinese kitchen creates such a wide variety of dishes with diverse flavours and aromas that you can enjoy a lot of these flavours when eating together. Furthermore, eating and drinking have a very important social function to bring people together. Sharing food is an excellent way to create a pleasant atmosphere and a general feeling of harmony. It is also a fact that many Chinese do not like to adapt to foreign customs when it comes to the way of eating. When they visit other countries, they certainly like to try local food. However, it is not easy for them to change certain habits. Sharing food is a good example. Even when they happen to dine in Western restaurants, they still offer their own food to their companions. Nobody at a dining table insists on having an own course, and this would be considered as antisocial behaviour.
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This collective habit is deeply rooted in the Chinese mentality. When they travel abroad in a group, it makes them feel better psychologically to share the food with their companions, and therefore, they invite them to try all the dishes served. Exercise Next time when you receive a delegation from China and want to welcome them properly, the best way is to invite them for a meal. As the host, you should recommend local specialities and order the dishes for your guests. Please ask for additional empty plates for each group member so that the food can be shared and at the same time you practise the Asian way of creating a harmonious atmosphere. Remember to reserve a bigger table than restaurants usually provide for a certain amount of people, and you will surely need the space. Food is a welcome topic, and your Chinese guests are interested in everything they are going to eat. Talk with them about the dishes, the drinks and other related topics. This will keep up a good mood during the entire meal.
2.3 Intercultural Skills Pave the Way to Intelligent Communication In the digital “village”, all people live together without the necessity to meet in person. In one project, you might work together with Germans, French and Japanese; another might involve Americans, Chinese and Swedes. The ability to appropriately deal with people from other countries and work together as a team is a definite advantage in this kind of job. Intercultural competence is turning into an essential part of the work qualification. It heightens the sense of empathy, reduces the risk of avoidable trouble and improves the quality of business relationships. Using intercultural tools in business proceedings can facilitate the communication with foreign partners and smoothen the execution of transactions. Intercultural skills, of course, do not provide solutions for every single critical business occurrence, but they certainly present a medium that leads to possible solutions. The magic concept here is a simple and effective method called reciprocity. Courtesy evokes politeness, kindness causes benevolence, and good will paves the way to a dialogue. Bravely face the challenge and pursue your objective with a positive attitude. There are many approaches how to go about it. Building up intercultural competence will be your greatest and cheapest investment in your own personality. Once you have obtained this skill, you will profit from it for life.
2.3 Intercultural Skills Pave the Way to Intelligent Communication
Case Study 5: Drinking Culture in Asia Situation Your business partner Jong in South Korea invites you for dinner to a classy restaurant with excellent food. You enjoy the meal and have a pleasant talk with Jong, a kind and attentive host. During the meal, he recommends trying the local liquor. You observe that Jong ensures that your shot glass is always full. Each time he fills up your glass with schnapps, he holds the carafe with both hands; see Fig. 2.7, and his body bends slightly forward.
Fig. 2.7 Drinking culture in Asia. Source pixalbay.com
How do you interpret this behaviour? Is Jong sending you a message through the drinking ritual? Please draw your own conclusions before you continue reading. Explanation An invitation for a meal and drink is not only part of the business in Asia, but also a crucial moment to build up or enhance the partner relationship. There
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are many ways to impart an intention or to communicate without words. The invitation to a classy restaurant, for example, means: “You are an important person”. Taking care that the glass of the guest is always full shows friendliness. If the president of a partner company takes care of your drinks and your food himself, he is signalling: “You are a special guest”. The body language also shows how serious the partner is. Watch carefully how he holds the carafe when pouring schnapps into your shot glass and how he holds his own glass when raising it to you. In East Asia, people are used to showing respect through body language. Using both hands for example is a sign of politeness. The same goes for handing over a document to another person. It is the right way to deal with customers, chiefs and sometimes even with colleagues of the same rank. Using one hand only is reserved for the staff and employees of lower ranks. In case you have a great relationship with your Asian partner and he feels rather close to you, the time has come to proceed to a more informal level. Jong will then dare to raise his glass to you with one hand only. Your option You can use the same gestures to show Jong respect and gratitude for his invitation. Pay attention to his shot glass and when you see that the level drops take the carafe with both hands and fill it up. Watch carefully how Jong is treating you. In that way, you get to know his attitude towards you and can treat him in the same way. This is a wonderful training in non-verbal communication. In our example, Jong will then know very well that you received his message and are giving him the feedback: “Thank you very much, it is my pleasure as well”.
2.4 The Way to Perfect Intercultural Expertise Compared to the past, people nowadays have a higher cross-cultural sensitivity, and intercultural management has even become a subject in schools. However, you have to acquire the practical part of the expertise in the field. A lot of people complain that their work schedule is already overloaded with all types of tasks. The promotion of further skills requires additional time and being too busy is a main obstacle for the advancement of intercultural expertise. Therefore, you need a system to organize it. Intercultural management is know-how management with practical application. The main goal is to firstly reduce the deficit of cultural knowledge. This poses a challenge, no doubt, but one that can be mastered to reduce the gap between partners, at least up to a certain point. Paying attention to both areas shown below will certainly improve your expertise.
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2.4.1 Discovering Common Ground and Discrepancies with Your Foreign Partners Cultural know-how is divided in two parts of knowledge: mentality (how people think) and behaviour (how they act and perform); see Table 2.2. The first part is the cultural inheritance of the mentality, such as the mindset and cultural values. The second part is the personal behaviour and attitude such as local customs, working methods and business etiquette to name just a few. Knowing the field, you are operating in is a major advantage in business. It is also essential to know whether you and your partner share the same views and opinions. What else could endanger your partnership? There are lots of possibilities that could destroy the business connection and a good relationship. There are also many ways to further intercultural understanding between you and your foreign partner. The better you know your partner, the easier you can come to the point and communicate in the right way. It is therefore extremely important to be aware of existing common grounds and discrepancies and to move carefully. Thus, you are able to judge a situation correctly and at the same time keep an eye on the entire system, so that you know exactly what is really happening. This enables you to find the best options to deal with it. Otherwise, it would be like stepping into an unknown field, wasting a lot of energy and resources and, at worst, aggravating the conflict. A direct comparison of country-specific business cultures is an extremely effective way to get the necessary information about you and your partner. In Chap. 3, you find a research presenting the results of a comparison between German and Chinese work methods. The outcome of the comparison is a blueprint showing the culturespecific ways of thinking patterns and work performance in the German and Chinese industry. The research and its results help to discover your personal potential so that you will find a way to bridge the differences in your business. Table 2.2 Content of cultural know-how
Source Joanne Huang
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2.4.2 Setting up Your Own ToolBox Knowledge alone is not enough to further cultural competence. Theories are only helpful and powerful when applied at work. The daily business life is dynamic and full of surprises. Your past experiences can help you to avoid possible mistakes and to predict what might happen, although you can never be absolutely certain. There are different conditions and, in most cases, different team members for each project. You have to watch the development carefully every time and react appropriately according to the situation. Empirical practice is the best way to perfect your abilities and to train your instinct which is always a reliable tool in real life. Chapter 4 presents selected tools on how to apply intercultural knowledge and methods at work.
References Huang J (2016) Optimierung des globalen Projektmanagements. Springer Gabler, Wiesbaden, pp 1–4 Huang J (ed), Kolitsch H-J, Chung A (2015) Unternehmensführung und Projektmanagement in China. Symposion, Düsseldorf, p 20 Macmillan dictionary (2019) Perception. https://www.macmillandictionary.com. Accessed 25 Apr 2019
Chapter 3
Action Research—An International Comparison of Country-Specific Work Methods in Germany and China
Abstract The road to success of international projects is not always smooth. What could be the stumbling blocks in international transactions? How to ensure a better coordination and cooperation between the parent company and its branches abroad? Which factors have to be taken into account when stimulating international team spirit? In 2018, a comparative study of the office work culture was conducted in Germany and China. The key topic of this research project was the identification of culture-related and therefore self-evident ways of each country, in other words, the people’s guidelines when handling transactions. All participants in this study came from industry sectors that cooperate on an international level. The focus of this survey is on country-specific work concepts and behaviour patterns in both countries during everyday business. The field study documents business practices, cultural traits and the personal perceptions of the staff in both offices. The results obtained will help to pave the way to a perfect global teamwork. Keywords Business culture · Etiquette · China · Germany · Work methods · Empirical research · Behaviour patterns · Business practices · Hierarchy · Liberalism
3.1 Starting Point The age of digitalization has begun and puts increased pressure on the global market. International customers have higher expectations with regard to good service that should be faster than ever. Projects become more complex and project teams with partners from around the globe consist frequently of virtual teams only. Enterprises are relentlessly striving for higher productivity and effectiveness. Digital transformation of the manufacturing industry in the enterprises themselves is still in the stage of evolution. Hence, an internal cohesion of a global supply chain is required to master this challenge. Success can only be achieved by a functioning collaboration between all branches and participants around the globe. Country-specific work cultures and business practices are known to be influencing factors in this chal-
© The Author(s), under exclusive license to Springer Nature Switzerland AG 2020 J. Huang, Sino-German Intercultural Management, SpringerBriefs in Business, https://doi.org/10.1007/978-3-030-38763-1_3
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lenge (Huang 2016a). A self-assessment of global entrepreneurial cooperation will be useful to optimize the conditions of digital transformation.
3.2 Objective The objective of this study is an increased efficiency based on the knowledge of culture-related mindsets and country-specific work methods in the business process (“cultural technology”, cf. Wikipedia). Being knowledgeable about colleagues from other countries puts you in a position to better understand their expectations and ways of thinking (cf. Alfred Schütz 1932, pp. 4–7). This field research was conducted in spring/summer 2018 at German and Chinese companies. Industry experts were interviewed. This report specifically compares general German work methods with Chinese practices. The focus of the survey was mainly placed on four fields: (1) (2) (3) (4)
Organization Business procedure Communication Conflicts.
The respective data were collected and analysed in order to compare different thinking patterns and ways of behaviour. The focus is mainly on the different concepts of order (Max Weber’s “interpretative sociology”, cf. Rechertz 2016, pp. 8–9) and special regulations in German and Chinese workplaces. This paper shows the different perceptions as well as any “unwritten” knowledge which is always part of a work environment (Teuscher’s “cultural sense”, cf. Konrad 2015). It will be useful for the identification of additional potential to establish a harmonious cooperation.
3.3 Methods and Presentation The methods used for the field research were observation and interviews (Mayring 2015, p. 50, pp. 72–81). A scale from 0 to 10 was applied as a tool in order to identify local expectations and values as accurately as possible. 0 represents the preservation of values, submission to authority and avoidance of conflicts. 10 represents a liberal mindset, independence and a straightforward attitude. Other definitions for certain criteria will be explained in this paper as they come. The results on both sides, the German industry and the Chinese enterprise, are presented in the same graphics. The more the shapes resemble each other and the closer they appear together, the higher is the similarity of the framework or patterns of the Germans and Chinese associates. The greater the distance between the shapes, the bigger is the difference of the development process between them.
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3.4 Study Result 3.4.1 Organization The focus in this section lies on the influence of organizational conditions that have on the behaviour of the employees. The workplace as a living space represents the characteristics of the social system in an enterprise. Sufficient regulations such as company rules and handbooks are provided for the staff inside an organization to adjust and become part of the work team and perform the respective jobs accordingly. The conduct rules, which establish how to behave and act correctly at the workplace, are the final result of the management structure and the expectations of the society where the company is located. The result of the organizational comparison is shown in Fig. 3.1. We take a closer look at the following seven points: • • • • •
Organizational structure as a chart (1) and during a transaction (2) Function and authority (3) Decision-making by the management (4) and during project execution (5) Roles of the parties involved (6) Liberalism versus hierarchy (7).
Fig. 3.1 General conditions of organizational environments. Source Joanne Huang
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(1) and (2) Organizational structure In general, it can be observed that German and Chinese enterprises have different concepts on how to structure their organizations. This also determines the way they work. Usually, the Germans work process-oriented and coordinate horizontally. The Chinese on the other hand are used to function-oriented work and communicate vertically. The organizational chart (1) shows that German and Chinese companies are both hierarchically structured (function-oriented, 0 on the scale), when it comes to the operative handling (2) the study that presents, however, different procedures in both countries. In Germany, the staff respects the rank, but it can indeed act freely and perform the job as it thinks would be best (5 on the scale). The different departments coordinate and communicate with each other directly also skipping departments during business execution (horizontal, process-oriented) if necessary, while Chinese associates, in general, tend to stick to hierarchically structured channels (verticaloriented, 3 on the scale). However, subtle distinctions between Chinese companies were observed. During the study, it became apparent that European-based companies and small Chinese-run enterprises with strong Western orientation act more liberally (5 on the scale). All the other Chinese associates are used to follow strictly hierarchically structured channels (1 on the scale). This indicates different leadership concepts in Chinese industries. It shows that the more similar German and Chinese partners handle structures and rules, the more soundly their in-house business procedures can be synchronized and the connection will be well channelled. On the other hand, the bigger the difference, the easier the development of a possible conflict area during real-time cooperation. Actually, the most frequent complaint reported by Germans is the amount of time spent on discussions and decision-making on the Asian side, even when dealing with less important subjects. (3) Function and authority German employees report that the assigned level of authority is adequate to perform the allocated tasks. They are fully responsible for the accomplishment of their assignments (10 on the scale). Chinese associates on the other hand report an inequality between the assigned responsibility and the allocated tasks (4.5 on the scale). The pattern of authority allocation in China is an upside-down pyramid. The numerous workforces in the low ranks have not much freedom to handle matters. After the manager made a decision about the goals, they simply take care of the implementation in a timely manner. Managers in higher positions, on the other hand, such as directors of certain sections, product managers or project managers have a wide range of power. Actually, the definition of authority and functions in Chinese industries is quite vague. This fact has its roots in the past, when people paid no attention whatsoever to such things. The associates just followed instructions without questioning them, no matter what a superior ordered them to do. As soon as there was trouble, the superior had to promptly fix the problem, and there was no need for the employees to take action.
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Nowadays, managers of the old school in China still do not want that their employees undertake any action on their own or directly communicate with other colleagues. Instead, all matters have to be reported to the superiors. This type of superior is personally in charge of the team coordination, other departments and companies. These so-called independent kingdoms have total power of control in China’s industries. The biggest fear of these managers is the loss of control. They believe that they could become redundant, if subordinates are allowed to work autonomously. One owner of a medium-sized company would like that employees take a more proactive approach to work. Most of them, however, refuse to take own responsibility. In case something goes wrong, they remain passive so that they can argue, that they “just did what the boss told us to do”. The boss has to control the work results of his employees on a daily basis to ensure that no latent mistakes were made. Due to this type of management, costs are extremely high. The Chinese personnel seems to pay more attention to the satisfaction of the entire group and is very careful to act within the range of the assigned authority in contrast to the German staff which places a higher focus on the application of own individual skills. In order to successfully complete a task, the Germans use any assigned authority to the limit. The mutual expectations of managers and staff in both branches are described below. German companies Expectations of the staff with regard to the superior: the superior should have the professional competence to make the right business decisions. In that way, the staff will take him seriously. It is equally important that the superior gives clear instructions or explicitly phrases his expectations. That done he should give the staff free rein and trust them to self-consistently carry out the tasks. In case of a conflict, no matter whether it is a business or personal problem, he should take the time to support his employees to solve the problem. The boss should respect them and acknowledge their contribution. Expectations of the manager with regard to the staff: a competent staff should have a positive attitude and should also be willing to cooperate with others. It is also expected that the staff shows respect for the superior. Good teamwork is important because a successful project can only be accomplished by the cooperation of all team members. Mutual trust in a team is essential. Chinese companies The leading manager should always keep the main goal in mind and give clear instructions. Then he should give the staff room to execute the project. In case of a conflict or a difficulty, the leader should be able to back up and support the staff during any encounter with the top management and external partners. Staff in the production line would like to earn more money. Young people in the cities value a good work environment. Other than the salary, they expect a career with a promising future. Older persons expect to be granted more freehand.
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Expectations of the manager with regard to the staff: delegation shows trust in somebody’s competence and the belief that he or she is able to properly execute the given task. A competent staff should not only have a positive attitude but also be dynamic when working. Furthermore, the staff should consist of good team members and be able to cooperate with others. Employees should have a distinct sense of duty and the ability to concentrate on their tasks. If an employee does not properly fulfil his or her task, it will have an impact on the next phase of the production line. (4) and (5) Decision-making The focus here lies on two areas of decision-making. With regard to management matters (4) Germans and Chinese act differently. In China exists a simple “top-down principle” (1.3 on the scale). In Germany, we observe a self-governed work culture in the hierarchical structure (5 on the scale). At the beginning of a job, functions, duties and authorities are clearly defined. The staff knows exactly what to do. In the German industry, any “authorization to sign” is of great importance. The assignment of responsibility or authority (delegation) also empowers any subordinate in the lower ranks of the management. The channel of decision-making during the project execution (5) in Germany is from the bottom to the top (10 on the scale). All participants confirm that, when it comes to strictly technical issues, the communication will take place directly between the engineers. The team discusses and finds the best way to run a project. In China, we observe huge differences between the companies. A part of the interviewed person’s report, that they are given free rein to perform projects, just like the Germans. Others report that they have to stick to the existing hierarchy at all times (1 on the scale). The industrial structure nowadays is characterized by an extremely intensive interconnection of collaborative supply chain and expertise. Sometimes, managers do not even know exactly the blueprint of a R&D project or how to operate a machine. Engineers and skilled workers are the experts in the area of operation. At this point, there is no difference between the West and the East. (6) Roles of the parties involved In this section, the five social relations of the Chinese philosopher Confucius are applied to evaluate the interpersonal relationships at the workplace as well as the common behaviour of the associates. These ancient Chinese relation categories consist of (a) “chief vs. subordinate”, (b) “master vs. apprentice”, (c) “man vs. woman”, (d) “senior vs. junior” and (e) “friend vs. friend”. The fifth relation (e) describes good collegial relations (cf. Huang 2016b, pp. 41–49). German companies Two types of interpersonal relations can be observed: (a) “chief vs. subordinate” and (e) “relations between colleagues”. Germans are used to work in a very focused and factual way, but they highly appreciate a good working climate. In general, it is expected to show respect for the colleagues at the workplace.
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In the German industry, you may indeed find a relation between master and apprentice (b) during the vocational training and dual education system. This relation ends after the training is over, they became colleagues during the educational process; hence, age and seniority (d) do not matter. Chinese companies In the Chinese industry, there are four forms of relations between employees: (a) “chief vs. subordinate”, (b) “master vs. apprentice”, (d) “senior vs. junior” and (e) “friend vs. friend” (relations between colleagues). The first relation (a) is a very formal relation and most important for internal discipline. Anyhow, the other three relations influence not only decision-making, troubleshooting or even daily collaboration but all business stages. The interpersonal relations in the social order in China “master vs. apprentice” and “senior vs. junior” with its own rules of behaviour cannot be found in any handbook for employees. We are talking here about unwritten rules. A “master– apprentices relation” (b) is normally established during the training program for new employees. Freshmen who just finished school do not have the necessary skills and qualifications to operate machinery or to run engineering projects. Therefore, the executive management has to provide specific professional trainings right at the beginning of their employment and allocate skilled employees as advisors. This “senior–junior relation” (d) which is specific for Asia represents mutual respect between colleagues, where a senior colleague is involved who may get a bit more attention due to his experience, age and the time, and he is already working for the company. This status can provide a certain level of protection for older colleagues, in case they make a mistake, but not for too long. The colleagues who are employed at the same time and took the training program together might maintain a better contact with each other. Even if later on they work in different departments or have different functions, it is still easier for them to communicate with each other than with other staff members. We could say that a “collegial relation” (e) is easier to maintain when two persons have the same rank. In China, a good working climate is also appreciated. A highly undesirable situation is a grumpy superior and a staff only working half-heartedly. Chinese associates value a good team spirit and expect a friendly atmosphere in the team during an operation where hierarchy is not important. Colleagues or the project team spend time after work to go out for a meal or have a few drinks together to improve good personal relationships, just like in a big family. Nevertheless, the superior is still expected to distinctly show authority if necessary. Peer pressure is apparently higher in Chinese than in German workplaces. However, this should not be seen as a disadvantage or just an imposed solidarity. The staff in China is obviously willing to spend more time together to get to know the colleagues, also those from other departments. They stated, that such personal connections support good communication and a better coordination in business. The third relation (c) “man vs. woman” has no significance in German and Chinese industries. The career chances for male and female employees in both countries are
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considered as equal. Nobody thinks that he or she has disadvantages because of the gender. However, one owner of a small export manufacturing firm in Southern China prefers to promote female sales employees, because they tend to stay on a more permanent basis and do not change jobs as often as their male colleagues. (7) Liberalism versus hierarchy A high divergence can be observed between the two branches when it comes to hierarchically structured regulations versus a liberal work performance. In Germany exists a high level of self-regulation (it ranked between 5 and 8.5 on the scale for high liberalism, the average value was 7.2). This working attitude of high self-discipline can be traced back to the German education system. During high school and university, German students are required to study autonomously contrary to Asian students. Many German students start to work or gather practical experience before they finish their education. A well-organized dual system provides students of engineering and technology not only with solid knowledge of theories and operational skills, but also with an appropriate mindset towards work. Chinese management on the other hand hardly allows their employees to work on their own. The mechanism of self-regulation of any Chinese staff is quite weak. Liberalism with a “laissez-faire” attitude could lead to anarchy (3.8 on the scale for limited autonomy in the private sector). The state-owned enterprises are known for their patriarchal management (2 on the scale). Even if Chinese employees work independently, which happens now and then, they still tend to keep up an intense reporting process at all times. Fact is that Chinese leaders have a strong need for information, e.g. about the work performance of the staff during a project, the level of progress achieved or potential problems they should pay attention to. Summary When comparing the size of both social office environments (the area for Germany outlined in blue and the one for China in red), we can easily see that there is less room for independent action in China than in Germany due to cultural influence. The overall impression is that the Chinese have limited freedom of action on the background of social adjustment according to the Confucian values. Nevertheless, the Chinese staff expresses the importance of having a certain amount of independence when performing a task. Managers on the other hand emphasize their “right of information”, which means to be informed at every stage about the status of the project. The staff in Germany has a high level of freedom to execute a project. During project execution, the employees are expected to make their own assessment of the existing facts and decide accordingly. The employees have a high level of selfresponsibility but ask other colleagues with appropriate competence for support, if they think that their own skills are not satisfactory to successfully finalize the task at hand.
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When dealing with a Chinese company, it is absolutely necessary to pay attention to the hierarchy. Behind the “stage”; however, it could be easy going and liberal. Anyhow, differences do exist between Chinese companies. The leadership style and handling procedure of state-owned enterprises are clearly stricter, and there are more “red tapes” than in the private sector. Even so, it is quite easy to distinguish Chinese-run companies from Western-run businesses. In Western-run companies, the management style is a mixture of traditional Chinese and Western leadership. More space is granted to individuals. It is strongly recommended not to generalize the firms you are dealing with. It is more important to understand their respective background and to carefully observe the company itself as well as the behaviour of its staff. This information will help you to act and to deal with Chinese colleagues and partners appropriately.
3.4.2 Business Procedure Let us have a look now at local work methods when handling business. The data collected show how well the business units are organized as well as any existing differences in business procedures between both offices which might obstruct an effective cross-border collaboration; see Fig. 3.2. We chose six areas for a closer examination:
Fig. 3.2 Business execution. Source Joanne Huang
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• • • • • •
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Comprehensive approach versus spontaneous reactions (1) Rules and regulations (2) Work rhythm (3) Quality requirements (4) Documentation (5) Priorities (6).
When we compare the patterns in the image, as a whole we can see that the operating procedures in both offices are quite similar. However, we found differences especially in the areas of handling documents. (1) Comprehensive approach versus spontaneous reactions A Chinese staff in general is used to work in progressive stages. Germans on the other hand prefer to work using a comprehensive approach. The same phenomena were observed during the survey. Both sides have indeed a different understanding of how to handle project procedures. German companies A German staff usually prefers to perfectly prepare in advance and to complete the project plan before the start of a project (7.8 on the scale). Germans like to work step by step according to a plan. Chinese companies Chinese associates prefer to manage projects according to schedule. They make a plan, but do not strictly adhere to it (5.6 on the scale). After defining the project goal and scope, they prefer to leave space for the period of implementation and not to finalize too many details. This enables them to react quickly and appropriately in order to push a project forward when an unexpected situation occurs. (2) Rules and regulations In this section, we tried to find out how the staff in both countries is dealing with regulations in work situations. German companies 70% of everyday business is carried out based on regulations. When it comes to project work, the percentage drops to 50% or even 40%. What happens is that the employees in case they fall behind schedule just speed up and rush about which leads to stress symptoms. Chinese companies 81% of the business can be carried out by following the rules. The Chinese staff is used to work according to the handbook. Comparing the obtained information above, this result is very interesting, since Germans are usually known to adhere to rules, whereas Asians conduct business
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matters with more flexibility. How to interpret these results? It could be that on the German side they deal with a higher amount of customer-specific orders in small quantities in comparison with China, where it is a smooth-running mass production. Another contradictory situation can be observed in China. On the one hand, they are able to quickly modify the rules to adapt to an unexpected situation. On the other hand, the willingness to accept new procedures or matters by the staff is rather low. The reason is the fear of making a mistake. Furthermore, the Chinese may be able to easily perfect an already existing product, but they have great problems with the development of a totally new one. It is difficult for them to imagine how a new product or gadget should or could look like, since they have never seen it before. The same goes for new work procedures. If the Chinese cannot imagine the outcome, they prefer to leave it alone. (3) Work rhythm Four work patterns (Fig. 3.3) were applied to measure the local work rhythm. The results show similar patterns when performing a project, in Germany as well as in the China. Most participants are of the opinion that picture (C) represents the pace of their daily routine at work and (B) their pace when handling mature products. Pace (D) scares German employees, whereas for Chinese employees it simply represents project work with major difficulties. At the beginning of a project, the work is fast, and then the pace slows down. In case the staff encounters a problem at a later stage, the focus shifts to the challenge of
Fig. 3.3 Different work rhythms. Source Joanne Huang
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finding a solution. Afterwards, the team needs some time to recollect and find back to its former pace. The speed of dealing with customer complaints in Europe and Asia seems to be different. In case of a complaint, for instance about broken components, Chinese customers expect immediate solutions to keep the production line running. In order to solve the problem, they will put great pressure on the supplier. Chinese staff is used to present solutions within 1 or 2 days. The German understanding of handling these types of complaints is a quick response within a reasonable time frame. It could take a while to identify the problem and to find out whose responsibility it is. This process takes the German staff twice as long as their Chinese colleagues. (4) Quality requirements The quality understanding by the staff has no doubt a huge influence on maintaining product quality standards. German companies A high-quality standard (8 on the scale) for German products is expected. 5 on the scale represents the quality standard considered sufficient for a single customer. Chinese companies 7 on the scale is expected. Anyhow, some Chinese managers admit that they are also satisfied when the quality just reaches between 4 or 5 on the scale. There is also a lower expectation for a new product, because it is simply more difficult for the employees to figure out what exactly they are dealing with. (5) Documentation A huge difference between German and Chinese companies was observed when handling documentation. All German participants place great value on recording and storing documents accurately (10 on the scale). In Chinese companies, however, documentation is not considered a “real” job which requires time and a great deal of attention (3.7 on the scale). The German approach is therefore in contrast to the attitude towards documentation in Chinese industries, where it is seen as an obstacle. It is hard for the Chinese to understand why they should spend time on a job already finished. Documentation will only be conducted under pressure by foreign partners and buyers who want it. Anyhow, the person in charge is used to record those data he or she considers relevant but not all information the form requires will be documented. As a consequence, the documentation is considered insufficient by the German colleagues, and they return it, for example to the Shanghai office. Both parties are pondering about the lack of understanding concerning the form and feel frustrated by the ensuing time-consuming toing and froing.
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(6) Priorities (cost, deadlines and quality) “Costs, deadlines and quality” are the three most important criteria for the evaluation of a project result. If it is impossible to equally meet all three requirements and a decision has to be made between “costs, deadline and quality”, how is the staff dealing with it? Germany All study participants put the highest priority on quality. The second most important issue is either costs or deadlines; this depends on the situation, and therefore, the same order cannot always be strictly applied. In the automobile industry, for example, deadlines have the highest priority at all times. The majority puts “costs” in third place. In general, Germans are willing to spend more time and money to ensure the product quality. Chinese companies All three factors seem to be treated with equal importance. The priorities vary according to the company and the actual situation. Some Chinese managers are willing to spend more money to keep the deadline or to match technical requirements. Some are ready to postpone the deadline if it could save money. Summary The collected data show that the cultural characteristics of German companies are in general nearly homogeneous. On the other hand, the data of Chinese companies are widespread in the following areas: (1) “comprehensive approach vs. spontaneous reactions”, (5) “quality requirement” and (6) “priorities”. This discovery reveals the significant fact that different Chinese companies can also have a different development approach. Foreign businessmen should pay attention to get to know the work style of their Chinese partners. Dealing with regional specifics is one of the big challenges when conducting international business, especially if the local requirements or branch rules differ from the policy of the others. A different understanding of timing and procedures for instance could cause frustration on both sides. A typical example is the short-term demand of a new product by a customer. An estimate and the following development might take one or two years or even longer. When the time comes and the Germans are ready to provide the product, local competitors in Asia have already delivered the goods long ago, though perhaps at a lower quality. Another challenge is unreasonable demands of local customers in China. Once they want something they mean it in the sense of “immediately”. Otherwise, they just put high pressure on the supplier. How to find a compromise by solving those “urgent” demands but at the same time providing a high-quality service? It is easy for any headquarter in Europe and the States to state that it just cannot be done in that way, but the colleagues on-site have to live with those customers and therefore might become extremely frustrated. Even though this type of doing business might not
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meet the company’s product and service policy, it is definitely important to uphold the communication flow with the local staff to come to a mutual understanding. On the other hand, Chinese companies should keep in mind, that German customers are ready to accept longer delivery periods, if quality and service can be guaranteed. The Germans do appreciate prompt reactions of their Chinese partners in urgent cases, but hasty handling with unsure outcome is just not convincing and causes doubts on the German side. Basically, Germans prefer to know the true facts, even if this means bad news. Depending on the real facts, the partners might then be able to evaluate further options together and deal with the situation appropriately. Of course, it is a time-consuming process. But once a consensus is reached, it will serve as a good handling orientation for all employees. There might not exist a solution which satisfies the demands of all parties involved but an open and fair communication channel will motivate and encourage the local staff because they feel that somebody is listening to what they have to say and therefore they can accept the outcome much easier.
3.4.3 Communication During this field research, we found out that there is an intense desire of the staff in both branches to have good mutual work relations. All team members also make great efforts to achieve such relations. Nevertheless, it can be observed that the crossborder coordination is not fully satisfactory. What makes internal communication and coordination so difficult despite the good work in the areas of organization and business procedure? Let us take a closer look at the communication patterns of Germans and Chinese at the workplace; see Fig. 3.4. • • • • • •
Direct versus indirect communication (1) Formal versus informal communication (2) Exchange of information (3) Open discussion about different opinions (4) Paying attention to hierarchy (5) Objectivity-oriented versus status-oriented (6).
(1) Direct versus indirect communication The Chinese are in general known to have a restrained way of expressing themselves. Germans have a reputation to communicate in a straightforward and prosaic way. This study revealed an interesting fact. German companies The employees behave differently according to the topic at hand. If they are dealing with technical questions and business affairs, they talk to each other in a very open way and also expect straight answers (7.3 on the scale). When it comes to company
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Fig. 3.4 Country-Specific communication patterns. Source Joanne Huang
policy, they prefer to take time to consider the following discussion carefully: how, with whom and about which topics. A very interesting German trait can be observed as well: although they are used to openly express their opinion, Germans prefer to do it in an indirect way—they communicate via emails. Telephone conversations will solely take place if a mutual understanding cannot be achieved by emails. Germans only meet in person if there is no other way to clarify a matter. The reason for this impersonal way of communication is the fact that Germans prefer to concentrate on the work. Incoming phone calls and personal visits without an appointment are seen as interruptions of the workflow. Chinese companies Different communication styles are observed. 50% of the Chinese participants with location in Beijing and Shanghai emphasizes the importance of conversational skills (4 on the scale). The Chinese staff is used to cautiously talk to each other about factual work or company issues (3 on the scale). Rank and seniority of another person and the existing relation influence the way how and when they communicate. There are different reasons for this cautious approach. Firstly, there is always the fear of saying the wrong thing. Secondly, if a situation is unclear, they prefer to keep quiet. Finally, talking straightforward could easily cause displeasure to someone else, a fact, which you might become aware of. Therefore, the Chinese choose their words very carefully to protect themselves.
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A good communication and a consensus can be achieved in paying attention if your counterpart is feeling comfortable when talking to you. This is considered polite behaviour which shows respect and appreciation. When talking about business and personally exchanging opinions, the Chinese prefer to have phone conversations. In case, a call proves to be insufficient to clarify a situation, and they jump up and pay a personal visit to their counterpart if this person is not too far away. Any agreement will then be summarized in a brief email. Communication taking place by emails only is considered as highly impersonal. Manufacturers in Guangdong/Southern China report an open and direct communication in business (between 7 and 10 on the scale). The owners stated that it is important in business matters to make clear statements, no matter if goals or customers’ requirements can be achieved or not. In China, all personal efforts to try to maintain a friendly relation and solve problems between colleagues and partners are very much appreciated. (2) Formal versus informal communication The purpose of business meetings is to clarify situations, come to an agreement and in the best case find a solution for an existing problem. An effective communication ends with results. What kind of atmosphere during a business meeting makes the staff feel comfortable? German companies In 85% of meetings, Germans are used to officially discuss business which means that all issues will be put forward and talked over by all participants. This type of meeting could take quite sometime as every small and big issue need to be discussed and finalized. Chinese companies The Chinese staff also appreciates very much official meetings as occasions to communicate and to find common decisions. But at the same time, they admit that meetings are often just a formality with mandatory attendance (3.1 on the scale). A group consensus will mostly be reached outside the meetings. The subtle difference in contrast to the German staff is “small talk”. Chinese employees like to have some small talk before the official start of a meeting. The reason is to settle unimportant issues upfront so that later on nobody has to spend too much time on irrelevant details. Therefore, the Chinese staff usually tries to talk to each other in person and reach a common agreement before everybody sits down for the official meeting. (3) Exchange of information Here exists definitely a big discrepancy between the German and Chinese staff. Germans show great willingness that all information is kept transparent and shared (9.9 on the scale) which means that information will automatically be passed on. Chinese staff reaches 4.2 on the scale; because in most cases, it is necessary to personally ask the person in charge to get an answer.
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(4) Open discussion about different opinions No matter where you are, dealing with different opinions always requires a bit of diplomacy and soft skills. The crucial point is rather the way of discussing disagreements and the location where such discussions best take place. German companies During 85% of business talk, the staff is used to have an open round-table discussion. Here one can witness the “game” of verbal attacks typical for the German industry. Of course, this is not a real fight, but there are absolute openness and honesty, arguing and defending one’s own opinions. By this process of debate, the participants get together, and in most of the cases, a common decision will be reached. This way of “open talk” can be quite brutal and uncomfortable for foreign partners. Chinese companies In China, the staff behaves differently. 50% discusses openly only if it is absolutely necessary (5 on the scale). They prefer by far to discuss such issues in a private conversation because this is the situation people feel comfortable with and are willing to speak their mind. This approach also helps to understand any hidden background. The other 50% of the participants will openly discuss and express an opinion; subsequently, a superior will make a decision (9 on the scale). (5) Paying attention to hierarchy How does the rank of a person influence the results of a business discussion? Is it important to pay attention to the hierarchy when dealing with different opinions? German companies It depends on the subject and the company. When discussing project work the staff sees no reason why it should pay attention to any rank (1 or even 0 on the scale). Each staff member is an expert when it comes to professional issues and knows exactly what to do. But they do pay attention to hierarchy as soon as another department is involved or whenever a non-technical subject is addressed. The average rate of this topic is 6 on the scale. Chinese companies In general, the staff will pay attention to the hierarchy at all times (between 6 and 8 on the scale). This is a long-standing tradition which should better not be ignored. (6) Objectivity-oriented versus status-oriented In a case of differing opinions about the way how to conduct business, would the staff just obey the instructions of the superior without trying to express their own opinion (0), would they rather try to reach a common consensus (5) or would they start a debate where each team member defends its own position (10)?
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German companies Communication is a process to get together. There is a lot of discussion, but no dispute. The main goal of a discussion is to get an overview of the situation and to find the best solution. It is not helpful to stubbornly insist on an individual position. However, every team member has the right to state a personal opinion. If no consensus can be reached, the board makes a final decision and all parties have to follow. 5.9 on the scale represents the wish for a consensus by discussion. Chinese companies The staff respects the ranks but will not blindly obey instructions. They will, however, try to talk to each other in the hope to find a consensus (4.7 on the scale). There is absolutely no wish for a debate to reach this goal. Summary Figure 3.4 about communication patterns shows that there is not much difference between the Germans and the Chinese. Only (2) “Formal and informal communication” and (3) “Exchange of information” show apparently big gaps. Both nations have the same experience that it is not easy to communicate with each other. Communication remains the biggest challenge in international cooperation. A reasonable explanation would be that this study shows the typical communication patterns during encounters with fellow-countrymen. However, we have to consider a situation of a cultural clash. Indeed, as soon as people from one culture meet those from another culture, they behave differently. In the Chinese culture, the correct way to treat a stranger is absolute politeness; openness or truth is not called for. The German society on the other hand emphasizes the need for honesty. In China, the participants of business discussions get easily and unconsciously side-tracked from the facts at hand due to hierarchy and interpersonal relations. The cultural background has a great influence in this area. An inherent self-control mechanism drives Chinese employees to behave defensively. They might want to speak out, but on the other hand, they do not want to step on anybody’s toes. The Germans have learnt from small how to express their own opinion. Their social value of “being honest” encourages them to stand up to what they think is right. Germans cannot endure an uncertain situation or a vague answer for too long. They prefer to be told the truth, even if this truth might be inconvenient. All efforts are made just to get a clear overview of the entire situation and to continue the progress of a project.
3.4.4 Conflicts No one likes failure. In a cross-cultural cooperation, it is another difficult challenge how to appropriately deal with conflicts and mistakes. This, let us call it “culture how to deal with mistakes” differs from country to country. Germans in general show an
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Fig. 3.5 Conflict management. Source Joanne Huang
open attitude when dealing with failures. The Chinese behave in a passive way. Let us take a closer look (Fig. 3.5): • • • • •
Constructive dealing with mistakes (1) Openly admitting own mistakes (2) Open criticism (3) Losing face (4) Fact-oriented versus relation-oriented (5).
(1) Constructive dealing with mistakes German companies In the German business world of the past, there was indeed a “culture of fear”. Nowadays, there is a common consensus to directly deal with mistakes. The modern forms of management and leadership confront errors true to the motto: “we can learn a lot from mistakes”. This open-minded attitude (8.3 on the scale), however, is at times accompanied by harsh treatment. Not only the nature of a mistake is discussed openly but the “guilty” person is also put in the spotlight. The intention to discover the “truth” might sound great but at times one gets the feeling that a scapegoat has to be found, no matter what. Chinese companies “Nobody is perfect”. This wisdom is known in China as well. However, China is not really a culture which openly deals with mistakes. If the parties involved do not
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know each other, one side might try to find evidence that the mistake was caused by the other party. An internal mistake is dealt with discreetly (1 on the scale). Talking openly about failure and naming a culprit is considered a public punishment for the “offender” which puts everybody in an awkward and difficult position. Relations suffer as well and hence the Chinese prefer to handle such matters in private. In this way, the “guilty” individual gets a second chance to make up for his or her blunder. (2) Openly admitting own mistakes German companies In case, a German employee is aware of a mistake and its reason, he or she will openly admit it (10 on the scale). Of course, the consequences have to be taken into consideration. Furthermore, nobody wants to stand out in a negative way. It is a very bad idea to look for excuses when a mistake occurred. It would just make things worse and really damage the reputation of the culprit. This does not mean that Germans never have a problem admitting a mistake openly, and that they are immediately straightforward about it at all times. That again depends on personality, experience and the way the employees deal with each other. Chinese companies In China, an open excuse for own mistakes is a very rare event (3 on the scale). You will seldom hear a sentence such as “I am sorry. I made a mistake”. That would mean that one is “losing face” which results in a refusal of any further cooperation. Usually, the Chinese apologize indirectly. Some might even admit failure in private only. (3) Open criticism It is difficult to criticize partners. Of course, an error must not continue and has to be corrected, but at the same time, the person in charge should not be discouraged. Let us have a look at the different methods in each country. German companies If the person responsible for the mistake cannot be identified, the failure will nevertheless be put in the spotlight. The respective discussion could be aggressive, straightforward and also loud. In case, an internal mistake took place one will think about how to express it before discussing it, but the following talk will still be very open and sometimes even harsh (10 on the scale). A mistake means the interruption of the project plan and schedule. Germans basically just want to get rid of or rectify a mistake as soon as possible so that the project can go on.
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Chinese companies If a mistake occurs, the Chinese will first try to talk to the colleague in private (3.8 on the scale). During the conversation, the nature of the mistake or the identity of the culprit will probably be identified, and he or she gets a chance to fix the error, if possible. (4) Losing face German companies For most Germans, the issue of losing or gaining “face” has no place in business (2.7 on the scale). On the other hand, it is a big issue if the good reputation of a person’s skills is at stake. An employee who thinks that his or her professional reputation is damaged will try his or her best to regain everybody’s respect. Chinese companies In China, the issue of losing face is a personal perception and can have a serious effect on the work (7 on the scale). It is all about social communication. The closer and better the interpersonal relations, the lower the possibility that somebody feels that he is losing face. (5) Fact-oriented versus relation-oriented What is more important in business: work (10 on the scale) or personal relations (0 on the scale)? We can see in the image that both parties have different attitudes. German companies The employees declare that they do have the strong wish to find out the truth, but that it actually is not very important to scrutinize all the reasons for a conflict (7.3 on the scale). The main point is finding a solution to keep the project moving. Team spirit is particularly important at this point so that all team members make a common effort and take collective action. A huge effort in team communication is required to reach this goal. Chinese companies In a well-organized company, Chinese employees work hard in a disciplined manner, but they appreciate very much a harmonious working climate. This motivates them to undertake more personal communication efforts in conflict situations (4.4 on the scale). The staff of both countries explain that it is actually less important to dig out all the reasons for a conflict. The principle of a Chinese company owner is to try to find out the truth and to reach a compromise. The main point is finding a solution to keep the project moving. Team spirit is particularly important at this point so that all team members make a common effort and take collective action. A huge effort in team communication is required to reach this goal.
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Summary In German companies in case of a mistake, there hardly exists punishment as such. In most cases, a superior will have a very serious talk with the culprit and firmly demand improvement. In China, employees often expect some sort of punishment with certain consequences. They will worry about those consequences they might have to face and the social reputation they might lose. Those fears are the reason for their unwillingness to open up.
3.5 Application of Study Results in Practice We take the topic “formal vs. informal communication” (Fig. 3.6) in Sect. 3.4.3 as an example to show how to apply the information obtained to improve the business conventions in international negotiations. In 85% of all meetings, the Germans are used to officially discuss business, and this applies to 31% of the Chinese only. During cooperation, both parties have to move and meet somewhere in the middle to bridge this big gap. However, it is hardly realistic to expect the others to make the first move. Be the one to take this step. The key to the move is timing, which means you should know when to start the talk. The recommended technique to approach the partner: For Germans: Send the agenda and a brief summary of the proposal to the Chinese participants some days before the formal meeting. One or two days later you call your Chinese contact person to answer questions and also note down the subjects directly concerning the Chinese. In this way, the Chinese partners have enough time in advance to inform themselves about the topic and to have an internal discussion. After the meeting, it is recommended to hold a debriefing on demand. For Chinese: You want to have an effective meeting without losing time with odds and ends. Just ask your German partner to have a preliminary talk for preparation purposes. In that way, you are able to clarify any uncertainties in advance to ensure, as far as possible, a fluent meeting process. Usually, Germans will adapt, they just have to be aware of what you need to know. Talk to them in a straightforward way. All Fig. 3.6 Bridging the communication difference between Germans and Chinese. Source Joanne Huang
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topics on the agenda should be dealt with consecutively during the formal meeting. In case, a result cannot be reached for one of the topics it is recommended to write it down and exchange information by email later. Conclusion: Meeting minutes with a timetable should be recorded and sent to both parties. Attention: In case, it is difficult to reach an agreement about a topic try not to get stuck. If plan A does not work, look for plan B. Ask the partner under which conditions he would be willing to move ahead. List the acceptable conditions from your side. Both parties get time to think about how to proceed. Use then informal conversation methods such as phone calls between you and your partner only to exchange opinions and to find a solution.
3.6 Open Points for Solutions in the Future Multinational corporations are facing the big challenge of digitalization to synchronize offices and facilities around the world. The agile principle can be applied not only in the area of software development but also in global management. It means that each subsidiary will be like a hub in the entire system. A functional system requires robust subsidiaries/stations. Two pillars, transparency and flexibility on one side and cohesion with autonomy on the other side, form the basis of a good enterprise. One can clearly observe great efforts by many German companies to build up a homogenous workplace for their global staff, especially when it comes to organization and business procedure. Differences due to cultural influences in communication still have to be overcome and the conflict management needs improvement. Furthermore, some special demands of the regional market may not have been considered because of the company policy. How to support local staff to clarify situations without undergoing a long internal inspection process? Could a standard operation procedure help to handle special individual requirements, so that the local staff can follow the procedure step by step? Cultural needs for interpersonal relations should get more attention. In a digital workplace, humans disappear behind computers, but they should never become invisible. How to improve cross-national communication for a mutual and better understanding? Audio conference calls are of course fulfilling a business function, but they just cannot satisfy the social requirements of the local staff in other continents. Global team building requires conventional tools but also personal meetings. This could be one of the most effective ways for an improved motivation and increased productivity.
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References Huang J (2016a) Optimierung des globalen Projektmanagements. Springer Gabler, Wiesbaden, pp 1–4 Huang J (2016b) China besser verstehen: Interkulturelle Annäherung, warum Chinesen anders denken und handeln. Huang + Jaumann, Augsburg Konrad K (2015) Mündliche und schriftliche Befragung. Verl, Empirische, Landau Mayring P (2015) Qualitative Inhaltsanalyse. Beltz Verlag, Weinheim Reichertz J (2016) Qualitative und interpretative Sozialforschung. Springer Verlag, Wiesbaden, pp 8–9 Schütz A (1932) Der sinnhafte Aufbau der sozialen Welt – eine Einleitung in die verstehende Soziologie. Springer Verlag, Wien, pp 4–7 Wikipedia, cultural technology. https://www.wikipedia.de. Accessed 13 Mar 2017
Chapter 4
Tools and Exercises
Abstract The input of knowledge is of great importance when acquiring the competence of intercultural management. Real skills, however, can only be appropriated by practical experience. This tutorial section shows three case studies of day-to-day business with situations that happened during a transaction. At the same time, they provide a profound insight into the respective mentality. The selected topics, such as team leadership, relationship management, communication and local work practices, expand the intercultural expertise as a whole. This is a well-constructed learning session combining background stories, possible options for action, handling techniques and, last but not least, examples for self-training. It particularly promotes the ability of self-organization and self-reflexion. The primary purpose is to create a proper toolbox suitable for your individual personality and your own style. The case studies teach you how to analyse situations and find possible solutions on your own. You learn how to apply the lessons learned in your own workplace for the benefit of your own success. Keywords Intercultural tools · Relationship management · Global team leadership · Agile work method · Exercise · Business etiquette “Learning by doing” is the golden rule that requires practice, self-reflexion and the development of ideas. By exercising, you convert theoretical knowledge into practical experience. This chapter demonstrates with the help of selected case studies how to act or react appropriately in certain business situations. The main objective is the fine-tuning of personal skills and the expansion of the existing management toolkit. Intercultural management functions are a supplement of business competence and an active interface in the support of all kinds of business activities (Huang 2016a, b, p. 6). The toolkit of intercultural management contains four main areas: team leadership, relationship management, communication and local work practices (Fig. 4.1). For enhancing your personal intercultural expertise, you will find three case studies to train yourself. These exercises will help you to discover your fortes as well as the traits which could prove critical and therefore deserve more attention.
© The Author(s), under exclusive license to Springer Nature Switzerland AG 2020 J. Huang, Sino-German Intercultural Management, SpringerBriefs in Business, https://doi.org/10.1007/978-3-030-38763-1_4
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Fig. 4.1 Optimizing intercultural management skills and expanding the toolbox. Source Joanne Huang
The case studies represent business situations which really happened. Just pretend to be the protagonist in each case and think about ways how the case could be relevant in your own work environment. The background information describes the main concerns and the normal ways of thinking and operating in the Asian business world. You will also find some useful options on how to act as a foreigner in each situation. The operational techniques demonstrate in detail how to take action in practice. Finally, there are two exercises for you to practice in real life.
4.1 Reporting Situation Reporting is an important tool for executives, general managers and project leaders to control the current business, projects and, if necessary, steer them in the right direction. In the hierarchically structured enterprises of Asia, reporting is a process practised more frequently than in Europe. In extreme cases such as in China, many managers consider it imperative to be updated about the project status on a daily basis and to meticulously control the work of their employees. Companies in countries such as Japan, South Korea and Taiwan are in general better organized, and therefore, the control process is less adamant. Nevertheless, regular reporting is a common practice in daily business. This type of reporting is unusual for European managers and employees. Many see it as an obstacle and some sort of restriction.
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Objective Set-up of mutual understanding and orientation in regard to a project. Background In Asia, the main purpose of this management style is the motivation of the work team to operate in a unified way. The general framework of the project could quickly change; hence, Asians are accustomed to regularly update each project phase and, if need be, adjust the project work accordingly. Asian business managers keep the objective firmly in mind, although they do not strictly adhere to a rigid work plan but rather adjust to the actual situation. The main purpose is to reach the goal. It is irrelevant how to get there. How to operate—your options For the management Asian employees are certainly able to work independently; but at the same time, they are used to an authoritarian leadership. It is important for them to know if they act in accordance with the company’s wishes and to have the manager’s approval. They want the feedback of their superior every step of the way, only then they will purposefully adhere to a given plan. On the other hand, the boss is regularly updated during each project phase and is therefore able to keep things firmly under control. Do not underestimate the importance of this culture-related need and allow your employees to regularly update you when it comes to the current business situation, for example by reporting and through the mailing list. In case, you do not agree with a certain procedure, find out the exact reasons for the way the procedure was handled. Then you explain how it could be done otherwise and better. As a result, your staff gets to know your expectations which, in turn, serve as a guideline for future procedures. On the other hand, if a job was well done give your feedback accordingly and do not be stingy with praise. The extent of control and the amount of instructions mainly depends on the different personalities of your employees. Employees who tend to be passive often refuse to take responsibility and follow only instructions given by superiors. Therefore, you should explain to them your orders repeatedly and in detail. Active staff members with a more independent personality on the other hand would like to have more free space. Thus, take more time in the beginning and work with them intensively; as a result, you can “relax” later on. For employed managers and project members: Do not wait until the end of the project, on the contrary, regularly report to your superior regarding the status of a project, even if it is not explicitly required. Consider reporting as a way to build up a team and to establish with your superior a cooperation based on trust according to the motto: “assist your superior to gain control of the team”. By active reporting, you support him to get a better overview of the business
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development. This in turn helps him to show to his own superior that he has a firm grip on the business procedures. Your efforts to keep him updated will be appreciated because it shows that the project is in good hands. In case of a problem or the need of support later on, your superior will firmly back you up and come to your defence, because you gave him the necessary information beforehand. Reporting is the way to personally involve your superior and at the same time put him in a position that he, as well, has to take responsibility. Of course, you do not have to accept everything a superior tells you to do. Negotiations are, by all means, possible, also in Asia, especially when it comes to professional topics. Let us assume, you are a product developer and hence not your superior but you are the expert. If it comes to a matter of different opinions, make your case in a calm and factual way and bring in your professional opinion. Always watch your tone of voice, never speak loudly or aggressively. In case, your superior, for whatever reasons, rejects your suggestion or decides; otherwise, ask for the reasons so that you are able to understand his motives and way of reasoning. In that way, you create a sustainable pattern of cooperation. Technique (1) Form All managers are very busy people. To take off the pressure, keep your reporting brief and to the point, according to the principles of a PowerPoint presentation. (2) Style List the topics with important content in your report so that reading through the list does not take long. Talk briefly about the current status of each topic, and the next step to take. (3) To whom do you address the report? Unless told otherwise you should address the report to your direct superior. In doing so, pay attention to the hierarchy at all times. Skipping a rank is unusual and should normally be avoided. However, if so required by the top manager, nevertheless inform your direct superior about this instruction. (4) Timing A weekly report is quite sufficient. The appropriate time to report is during a routine meeting which in general takes place on Mondays. Employees of different ranks in the hierarchy report to their boss, who in turn reports to his superiors and thus the report passes through all levels of the hierarchy. Seen that due to the time difference, a workday in Asia starts much earlier than in Europe you would be well advised to hand in your report on Friday already. In that way, your boss is able to pass on the report to his own superiors in a timely manner. Reporting takes place more frequently during ongoing spotlight projects whenever the project is progressing or a phase could not be accomplished according to plan.
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Additional information Practise active reporting, and consider it a method of communication with your superiors as well as with your colleagues. In case, your superior has trust in you the frequency of reporting will decrease. No feedback means that everything is fine. If you want to be sure or feel a bit insecure, talk to your boss or your colleagues about the respective topic immediately. Exercise 1. Think about the mode and timing of your reporting when dealing with your superior and put it into practice. 2. After reporting two or three times, kindly ask for his feedback so that you know if everything is in order or if something should be added.
4.2 Relationship Management Situation You were appointed the new product director of an international company and want to get an overview of the Chinese industries. You fly to Hong Kong and South China to visit the affiliated company and the customers. A number of visits to fairs and companies have already been arranged for you. On top of that, your colleague in Hong Kong offers to show you the city after work hours. Your schedule is very demanding, and you want to focus entirely on your job; therefore, you politely decline the offer. Objective Team building and creating a positive business climate. Background The workplace in Asia is considered the second most important social environment right after the family. Great value is set upon a balanced relationship between two key factors: “work” and “human beings”. The social aspect might somehow even be slightly more significant than the professional part of life. The reason is perfectly obvious: work is executed by people. Even though the position of humans has shifted in this age of automation and digitization, it did not cease to exist. A primeval need of every Asian is the appreciation of his or her place in the collective. This feeling of belonging satisfies the urge for social and emotional security which in turn represents an important motivation for the team spirit. Individuals do not “disappear”, and they feel at ease in a group instead. The downside of this fact
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is the challenge to bring together not only the interests of the group but the different individual interests as well. At this point, a good relationship management is of utmost importance to be able to find an acceptable compromise for everybody. Relationship management in this context means simply positive business contacts. The duty of each group member to try and get along well with the other group members is part of the concept to create a sense of togetherness in a group and between individuals. Social competence is just as important in the Asian business world as in private life. In every Asian society exist pearls of wisdom still valid up to now which are diligently observed by all citizens. The elders in China like to quote the following phrase: “先做人再做事” (Translation: Before you start working you should learn the appropriate way how to treat your fellow human beings.). The Hong Kong business world puts the emphasis on the following phrase: “好來好往” (Translation: Be polite to me and I will be polite to you). The Japanese have the golden rule: “The bird flies away peacefully” (Interpretation: After the meeting, no matter if the result is satisfactory or not, one should always take care to create a positive mood before everybody leaves.). As a foreigner, it would be unwise to ignore those “golden rules”. Experience has shown that a strictly factual work relationship is not the way to a sustainable integration of Asian partners. Your options for action (a) All human beings have the same social needs Do not solely plan how to best execute your job. Early on you should be pondering carefully how to include your teammates especially if the partners are in different locations. In such cases, it is even more important that you all get along well. A successful cooperation does not spring to life out of nowhere. On the contrary, enough stumbling blocks exist due to cultural misunderstandings and misinterpretations which could damage a good partnership. (b) Focus on the solutions instead of the problem Whenever a project is delayed (again), do not immediately apply pressure to yourself, the team members or your partner. Ask yourself first, what you could possibly have overlooked and then talk to your partner about the delay. Motivate all parties involved to constructively work together and find solutions. A solution-focused approach is positive and can be contagious. (c) How to conquer your weaker self For Europeans, it can be a challenge always being in a collective. At some point, you might feel the overwhelming desire to spend some time alone. It is certainly not easy to smile all the time even if you feel the urge to bang your fist on the table. However, it is an unpleasant fact, that such behaviour could trigger an escalation of the situation with even bigger consequences. Do not give vent to your feelings. Look at it that way: You might be able to change a few things but hardly an entire culture.
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Your common sense should tell you not to beat your head against a wall because you will only get hurt. Whenever you yearn for peace and quiet, just retire without comment but with a smile. Cultivating a transnational partnership is comparable with relatives: you should treat them with care. (d) Your partner is not your opponent Cooperate actively with your contact partner. When there is a situation or a problem, try to understand his point of view. Strive to support him when he is performing a task. He will surely do his best and find solutions for all your assignments. In that way, you will be able to purposefully advance the project. (e) Impress your partner with your potential Show your partner your ability to adjust and learn. Your efforts will be worthwhile. Be patient and persistent. As soon as your partner gets the impression that your efforts are serious you will have a loyal ally. Technique (1) Give attention Small gestures with a big impact: we will show you how to gather bonus points at work without any major efforts. During everyday business: i.
Greetings: Start your mails, phone calls or conference calls with: “Good day”! or “Hello, how are you”? or similar phrases. Such common pleasantries are very welcome, no matter where. ii. Small talk: When doing business abroad you should do the same as in Germany when you talk to your colleagues in the break room: have a chat with your foreign colleagues. It does not have to be an elaborate conversation; it is also nice to have just a little chitchat. iii. Praise: Show appreciation whenever your partner performed a job well or put a lot of effort into finalizing a task despite difficult circumstances. Praise his personal commitment. For special occasions: i. Extend compliments of the season for important holidays in the country of your partner such as Christmas and the respective New Year’s celebrations. ii. Say thank you: If your colleague did you a favour or accommodated you in some way at work, thank him briefly. (2) Joint activities Basically, it is quite easy to practise relationship management. Just be friendly and invest some of your time. The key concept is to create possibilities to personally get to know each other and find a mutual approach concerning ideas and intentions. This can be achieved best during a personal meeting.
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If you are in Asia on-site or your partner comes to Germany try, many appointments notwithstanding, to spend some time with him. For example: • • • • • • • •
Invite him for a cup of coffee Show him the town Strengthen private contacts after work (go for a meal, drinks or to a pub) Have a pleasant conversation Offer him a little present, something typical of your country Do some sport together Make his stay in Germany more pleasant Simply be friendly.
Your behaviour should be natural. Do not force yourself to do something you do not like. Choose the methods you would like to apply and try them out. You can read more about relationship management with the Chinese in the book “China besser verstehen” (Huang 2016a, b). Exercise (Evaluation of the relationship quality) Step 1: Evaluate yourself the quality of your current relationship between you and your partner. Apply the relationship barometer (Huang et al. 2015, p. 162), see Fig. 4.2, with values from 0 to 10 (0 signifies very bad and 10 very good). Which value would you assign to your relationship? Step 2: Reflect briefly upon the reasons for a good or less good relationship. How do possible tensions manifest themselves? Who is affected as well? (Improvement of the relationship quality) Step 3: Ideas—Think about what you could do for the barometer to show a better value. Step 4: Plan—Work out some specific options for action. Evaluate the results after applying the SMART method. The application of the solutions should be specific (S) measurable (M) achievable (A) by those concerned, relevant (R) and time bound (T). Step 5: Test—Apply the planned method in a timely manner. Step 6: Check—Evaluate the result, analyse your own behaviour as well as the subsequent events. Try to optimize the methods, if necessary, and give it another try (cf. Gehr et al. 2018, pp. 30–33).
4.3 Meetings: How to Get Individual Opinions Situation As the managing director of a Chinese branch, you hold a strategy discussion with all department managers. During the meeting, you highlight first the market conditions
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Fig. 4.2 Relationship barometer. Source Joanne Huang
and the position of the company. As a next step, you present the objective and your own ideas how to achieve it. After that, you announce an open discussion with all managers freely voicing their opinions. Some have questions about the strategies, others add individual opinions. During the discussion, you notice a middle-aged manager sitting at the table not moving and being very quiet. You get the impression that he might not have understood what you were trying to say. You perceive his attitude as very unsettling. Objective Effective communication in a meeting. Background Children in Asian societies are not encouraged to openly voice an individual opinion. In school, pupils are very rarely asked to form an own point of view. This educational approach has profound effects as later on in work life, this attitude remains the same: to speak up, only when somebody asks a direct question. The silence in a meeting can be interpreted in different ways: it is important to carefully observe the actual situation to be able to draw the right conclusions. You should also closely watch the body language. In general, there are three probable reasons for somebody to remain silent. (a) The participant is not prepared to voice his point of view and/or did not form an own opinion yet. He will normally ask for details of the proposed strategy and try to clarify ambiguities. If he considers it a good idea, he will show clear signs of approval. (b) His rank is not high enough In this case, a participant will rather be quiet and pay attention to what higher ranking persons have to say. He is present and uses the time to listen very carefully.
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(c) The ideas presented do not convince the participant, or he might even oppose them Cultural tradition dictates that openly contradicting a higher ranking person is uncalled-for. However, the participant does not want to agree either; hence, he prefers to keep quiet. If asked he will try to express his concerns very cautiously, avoid eye contact or drop his gaze. The initial situation mentioned above suggests a high probability of option (c). Your options of action We are dealing with a highly unusual situation for Germans. In Germany, it is common practice to speak up if you have something to say in regard to a certain topic. The cultural behaviour described above requires patience if you want the manager to express himself. It is perfectly fine in Asia for employees to abstain from expressing own opinions. However, it is also perfectly fine for a superior to give the order that everybody should voice an opinion. In case, an employee has expressed an opposing view, he might be hesitant to elaborate. If this is the case, you should not insist. For many Asians, it is simply an unpleasant situation to openly and directly contradict somebody else. They prefer to clarify certain points in private. Choose a suitable day and make an appointment with the respective employee to have a personal conversation. Technique At first, let the other managers talk. Then you tell the quiet participant to speak up. Let him know that you are interested in his opinion. It could be that he needs some time to sort his thoughts or to find the right words. Have patience and wait, and in case, it takes too long ask him if he might prefer to express his views later. In that way, you are able to avoid a possible loss of face by the employee. Strongly emphasize during the meeting that you expect all colleagues to express themselves. Repeat this request from time to time. For your own training, let each of them speak up alternately. After a few exercises, your colleagues will get to know your expectations—that everybody should openly express his or her opinion and that you wish to have a constructive mutual exchange. This method enables you to build up a “culture of open meetings” in your company. The key concept is to avoid putting pressure on your colleague and offer him a possibility of retreat. At the same time, however, you should make it clear that you want to know his opinion. Additional information Please keep in mind that Asians frequently use the “soft method” to express an opposing view such as: “I’m not sure this is such a good idea” or “We should think about it some more”. This type of phrasing indicates for Asians an unmistakable rejection. Asians hardly use the preferred German phrases such as “This is not a
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good idea”, “No, this won’t work” or “I’m against it” and if they do so, it will be in the company of trusted persons only. Exercise 1. You are the highest-ranking member of a discussion group; therefore, the moderation is automatically up to you. Apply the approach described in the paragraph “technique”. 2. You are not the highest-ranking member in the group; hence, you politely ask a senior member and or a higher ranking person for his opinion. It might be that this person does not wish to express an opinion. In that case, try again after the meeting and find a more personal setting.
References Gehr S, Huang J, Boxheimer M, Armatowski S (2018) Systemische Werkzeuge für erfolgreiche Projekte. Springer publishing house, Wiesbaden Huang J (2016a) Optimierung des globalen Projektmanagements. Springer Gabler, Wiesbaden, pp 5–7 Huang J (2016b) China besser verstehen: Interkulturelle Annäherung, warum Chinesen anders denken und handeln. Huang + Jaumann, Augsburg Huang J (ed), Kolitsch H-J, Chung A (2015) Unternehmensführung und Projektmanagement in China. Symposion, Düsseldorf, p. 162
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