Business Studies, asked by Vikuu5289, 10 months ago

Cultural differences between uk and china business

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Answered by priyanshu805140
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Hofstedes dimensions of cultural variability identified five dimensions of culture labelled Masculinity vs. feminity, Uncertainty Avoidance, Individualism vs. collectivism (ID), Power Distance (PD) and Long-term versus Short-term. In terms of masculinity (the emphasis placed on success) and uncertainty avoidance (level of comfort when faced with risk and uncertainty) there is little to choose between the two countries. However, in the other dimensions there are substantial differences. When it comes to individualism Hofstede (1991) found that when ranking countries in order of a score for individualism (the degree to which people take care of themselves) that many eastern Asian countries, such as China (individualism score of 20), were likely to have a low score. This is in contrast to western society and cultures which have high individualism scores, with the UK having one of the world’s highest at 89. As a result of China’s collectivistic culture Chinese project managers will primarily associate their work identity with the company on the other hand UK managers will primarily associate their work identity with them self. Another effect of this cultural difference is that Chinese project managers place more importance on relationships whereas in the UK more emphasis is placed on independence and control resulting in a reluctance to cooperate. Power distance is the extent to which a culture accepts that power in organisations is distributed unequally. The power distance is typically much greater in China than in UK- suggesting that British negotiators must pay careful attention to the organizational hierarchy of their Chinese partners, and appreciate that their Chinese counterparts will be very sensitive to hierarchical issues. In addition in Chinese culture with large PD the ideal leader would be a benevolent autocrat, whereas the ideal leader in UK culture with small PD would be a resourceful democrat.

According to Casse, 1981, Cross- cultural negotiations are negotiations where the negotiating parties belong to different cultures and do not share the same ways of thinking, feeling and behaving. For some cultures the primary goal of negotiations is to reach a deal and sign contract, while other cultures view it as the establishment of a long-term relationship between the parties, which will eventually lead to a contract. In China, the creation of interpersonal relations takes priority over a commercial transaction. The negotiation process is generally more complex because it encompasses unconscious forces of the different cultural norms that may undermine effective communication (Chen,1995). Blackmann 1997, observed why negotiations in china carry difficulties among western business people and he summarized as follows; there is cross-cultural complications which encompass the interpretation of behaviour, language and cultural expectations; The surrounding environment which influences the business norms. This includes the stage of economic development, power and influences centres, the level of bureaucracy and government policies. Finally, there is the methods and manner by which the Chinese conduct the negotiations and assumptions. Understanding this features can help European negotiators discover the reasons why the Chinese behave the way they do, and goes some way towards unveiling their homocentric character ( Goh,1996).

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Answered by sweetgirl100
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