Leadership Style in China

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Hello students welcome to EPG party Allah I am dr.Tunde Sharma professor Department of
Commerce Kurukshetra University Kurukshetra

Today we are going to discuss the topic leadership styles in China

students after completing this module You will be able to understand the concept of leadership
style in context of China
Introduction
China a market a few companies can afford to ignore
Introduction
Students as you are aware China has emerged as an economic superpower of the 21st century
and any firm Aspiring to become a great firm needs to do business with China With its history
extending to over a couple of millenniums China is a very interesting place to do business
It's a great society with several interwoven aspects and compassing its philosophy
Governance living and also the style of managing the business

Chinese culture is really very unique from the rest of the world and has an interesting blend of
the values nurtured over centuries with the assimilation of modern thoughts and technologies
Every country of the world does business with China and almost every company has Direct or
covert inputs into its business which come from China

In order to understand the management style in China Students. It's really very important to
understand the Chinese society
as Management style of any society are a reflection of the manner in which the members of
the society conduct The relationships and the communication within the firms as a reflection
of the culture of the society also China is an interesting case of how a single-party rule nation
can assimilate Such a high degree of economic liberalism and attain a very high economic
growth within a few years
students china has allowed the traditional cultural values Confucian values and the present-
day modernity to blend and develop into a unique symbiotic mix of inputs that facilitate the
business in the subcontinent
In order to understand the Chinese management styles It is really very important that first we
understand the Chinese culture and the Chinese values

Students let's start with Confucianism

Confucianism also known as error ism is a traditional philosophy which governs the way of
life in China the ideas emanated from the thoughts of a Chinese philosopher Confucius Who
lived around 551 to 479 BC and who gave the principles of good good life
Confucianism is a unique blend of values for the individual the family and family and the
individual With regards to the ordinary activities of human life Especially the human
relationships as a manifestation of the sacred focusing on the practical order There are three
basic ethical concepts and practices in Confucianism
First is the Ren Ren means monovalent or humaneness
The second concept is the li Li is the ritual norm of how a person should act in the everyday
life
And the third is the zi the ability to see what is right and fair in one's behaviour
It's these values that form the basis of five basic relationships in any society Particularly in the
context of China as an individual stands simultaneously in different relationships with a
different people
According to Confucianism there are five basic relationships in a society
First is the relationship between the ruler and the ruled
Second is the relationship between the father to son
third is the relationship between husband to wife
fourth is the relation between elder brother and the younger brother and
The fifth is the relation between two equals that is to friends these basically chips and tail
the prescriptive value for each of them and the Chinese society has imbibed and Reflected in
its conduct as well Chinese people exhibit certain unique characteristics in terms of their
personal attitude, they're very calm Fatalistic frugal people they are stable calm patient and
conservative in their outlook They value education and simplicity Despite having power and
wealth in terms of their attitude to work. They are really very hardworking pragmatic
persistent and resilient Students they're flexible and balanced, and they always avoid the
extremes This makes them an ideal human where to work in any organization unlike their
Western counterparts Who are guided more by rationality and utility Chinese people are
abstract? systemic and relational in relational in Terms of the relationships with each other
there is the very high sense of obligations It's really very important that the five basic
relationships Which were explained about you will find that in first four there is a relationship
between a superior and a subordinate Implying that both need to have a sense of obligation
towards each other in order to maintain the power balance between them ethical behaviour
Demands that the inequalities in these relationships must be respected
empathy and affection form the basis of these relationships Mostly Chinese people are
peaceful gentle polite hospitable friendly and reserved in terms of relationships with the
groups Chinese are loyal to their family Particularly the blood relations, but there is a weaker
relationship with the bigger units Generally we'll find Chinese people are apolitical thus the
order or the senior person Would automatically receive the respect from a younger person
which extrapolates into the organization's as well
So students with this background this Confucian approach Influences the relationships within
the organizations as well Unlike the Western approach to relationships based on Authority and
responsibility alone In addition to this it's really important that we discuss another concept the
concept of GU, noxee Boo, noxee which refers to the basic dynamic personal network of
influence which is a central idea of the Chinese?
society the personal relationships have a profound effect on the management and leadership
styles in China as People will trust only when they know someone unlike the Western style
which is highly task oriented Students let us now understand the features of leadership style in
Chinese companies
Let's know the leadership style the leadership style adopted by the leaders is
Directive leadership style they give the directions to do the actions to their subordinates
Group leader the leader act as head of the group or the committee. He is a decision-maker a
result-oriented Chinese leadership style is more result oriented by achievement of specific
goals and objectives means more respect to the the relationship management the leaders
believe in making Relations with the members once the people have belief in their leader.
They follow him willingly and passionately
communication the communication in China is generally top-down
Harmony the emphasis is on making the organizational harmony The focus is to avoid the
confrontations the leaders Generally resolve the conflicts amongst the team members and try
to maintain the harmony within the organization
Coaching and development for successful leadership and for attracting high quality talent
management in the organization's Mentoring coaching and development are important tools In
the hands of leaders to attract and retain the talent and the organizations China has emerged as
the world's second largest economy in terms of its GDP and growth rate On the average the
annual GDP growth rate in China cross 10% and surpassed Japan in 2010 to become the
second largest economy in the world after us with these developments The growth of Chinese
business continued to expand and the Chinese companies have established their offices Of
operations around the world in the global presence The companies have to integrate both
Chinese and Western perceptions into management practices including the leadership styles

Leadership in China is a characteristic of both Japanese and American practices the leadership
style used in China is generally directive the relationship between the leader and the
subordinate follow the parent-child relationship as a transactional analysis items The leader is
the head of the group or the community the orders of the leader are expected to be obeyed by
the subordinates leadership in Chinese companies is Also guided by the common values and
harmony as believed in the Japanese leadership style rather than confrontation as in the
American leadership However communication is top-down as is done in many American
companies
To find leaders is a challenging task for the Chinese companies due to increasing cultural
factors For long time the leadership style of Chinese companies was based on mutual respect
and togetherness amongst the individuals in Order to meet the global competition new
Chinese leaders acquired leadership qualities that can meet cross-cultural Chinese leadership
style is based on collectiveness rather than individualism People prefer to become a part of the
group rather than being individuals Individualism is ranked low in the Chinese companies as
compared to other countries as is found in many studies communism Confucianism
colonialism and capitalism are the four C's Adopted by the Chinese culture Chinese leader
very much focus on getting results and managing the relationships also They tend to be
hierarchically superior in authority the Chinese leaders expect good. Loyalty and obedience
among their team members although the leaders have the overall responsibility and the leaders
get the feedback informally and avoid open discussions and maintain the group harmony
However students China is rapidly adopting itself to the changing trends the researchers have
found that Western leadership styles are
changing with the growing focus on more humanistic elements of leadership the worldwide
Increasing focus on the human rights which is incorporated into the Chinese traditional values
as well further Chinese leadership emphasizes more on the individual contribution of the
employees towards achieving the economic results with the changing trends the Chinese
leaders are integrating the Western leadership approaches due to education in the foreign
countries and multinational companies operating in China The main focus is on adopting
more scientific approaches Regarding the management that is efficiency standardization and
automation of the processes and elimination of the vestiges

the integration will help Chinese businesses to gain from the increased focus on the
innovation and efficiency on the Other hand the main benefit to the Western businesses will
be from the improved employee relationships ancient Chinese philosophy is absolutely rooted
with the traditional Chinese leadership practices which are more influenced by the traditional
Chinese incorruptibility sense of shame and morality etc with an ultimate focus on improving
the performance of employees via personal development Chinese business environment turns
the expectations of the leaders towards fulfilling the ethical considerations over and above the
achievement of the profit other fundamentals of Chinese leadership principles include
assuming the role of inspirational character leading by example in terms of promoting quality
and simple living and harmony with nature and others
according to a study published in Harvard Business Review in 2014 Chinese management
practices are characterized by three major leadership styles That is leadership style with
simple organizational structure leadership style with localized value prepositions and
Leadership style when the products are to be developed at a quick rate These are discussed
here in leadership styles with a simple organizational structure
Chinese leaders are notorious for controlling the companies from top What is less well known
about them is how much they decentralize it? Helps them to respond to the market chips and
swiftly growing business structure Chinese business environment It is characterized by a
constant rate of adaptation which requires on the part of leaders Not just to keep pace with the
markets But also the differences that are to be faced in the development process of each area
and the power of local officials However these differences are witness to be blunt in nature.
That's why the Chinese companies Construct the business structures that give business units
nearly total autonomy as in the case of media China's second largest home appliance maker
Media is characterized by its various product lines Which operate as independent businesses
rather than as part of? Larger matrix organizations and each independent business unit has a
leader Responsible for its activity thus the focuses put more and more on fixing autonomy and
accountability
Chinese enterprises Can afford to employ more and more people as if produces more in-
house and pay employees less than their counterparts? Further a country characterized by little
or no access to more or less business infrastructure is Left with only single option to grow that
is to ensure the growth of manpower exists within the country
moreover Chinese leadership initiators they rely more on the direct reports to the possible
extent these leaders consider the concept of decentralization and flat structures to the possible
extreme companies in China operate in two main frames According to Chinese initiators, they
usually appoint two managers each one is self-directed and responsible for one timeframe and
thus completely effectively for the scarce resources It can be said that Chinese leaders prefer
direct conflict over a more complex one and a cooperative management structure

Leadership style with localized value propositions Most of China is still at the developing
stage, which means that it is characterized by inexperienced customers over capitalized
companies no proper branding and Unique local business customs and traditions etc. What is
quality?
Simply quality reflects the local needs its best Example is sani the top construction company
in China it Demonstrates how different is the assignment of adapting to the local customers
and government than others a? Calamity seeing its equipment offerings for the local leasing
companies Enables them to compete on their preferential access Not under ability further it
helps to keep their capital commitments Down by having the option of demand financing
further it has also used the very local distribution systems t considers, how managers who
know more people at various places? Ensure a quick and a reliable way to go to the market

Third is the leadership style when the products are to be developed at a very quick rate the
rate at which Chinese companies develop new products for its existing technologies and By
upgrading its large-scale production is very high and it's also quite impressive It's crucial
Reason that Chinese have come to dominate the global market The ability of the manufacturer
to launch new and latest offerings is by the product of heritage Companies like media ones
young and good, baby Started out manufacturing those Goods that they didn't design they
cultured themselves about how to deal Swiftly to meet the buyers demand for speedy
improvement To adapt designs that requires other alternative material instead of the original
materials That might be too expensive or unavailable at that particular period of time To
transform equipment so that different products could be produced with the same equipment
and above all keep the costs down without compromising on the quality aspect

Students Now let's try to see how globalization has impacted the Chinese leadership style
globalization and competitive environment has changed the operational environment of the
world as well the developed countries are expanding their businesses globally Developing
countries are also trying to expand their markets international in order to become successful at
the international Effective global leadership is really very important for the multinational
companies global leaders easily learned and adapt according to the cross-cultural differences
working environments political parties effective communication before entering the new
markets Western countries have already developed a well Internationally as compared to
many Asian countries Amongst the Asian countries Chinese economy has emerged as a fastest
growing economy in the world Many of the multinational companies have entered China to
locate new markets and supplies global leaders were taught to have multicultural leadership
skills to lead their organizations and to operate in China The leaders are taught to respect the
traditional Chinese values

Chinese leadership challenges Students as you know China has adopted one-child policy it
has always faced workforce shortage at all the employment levels Including the senior
positions the labor turnover rate is also very high in China's working environment Chinese
employees are free to change their jobs hence their involvement and participation With their
working environment is low Most of the top and executed positions are not open or available
for local leaders also most of the multinational companies Prefer to employ expatriates instead
of promoting the local talent the local leaders Generally claim about the slow training and
coaching programs for them to meet the expectations and needs of the organization the next
challenge for global leaders is the education system in China Chinese education system
focuses on memorization and recitation rather than problem-solving or strategic thinking
another challenge for the global leaders is the philosophies Confucianism and Taoism are
followed by the Chinese culture the goals values and expectations of the two philosophies are
quite different from the of the Western countries the global leaders easily handle and manage
these differences due to the rapidly growing economy and Various cultural and political
differences the leaders are changing and adapting their leadership skills in the host countries
Confucianism was the most important cultural and business philosophy within China Which
existed for over 2,000 years the philosophy had its great impact on the mindset of the Chinese
people the Confucian philosophy focuses on having a harmonious working environment
within the workplace and having good social relationships along with the excellent business
operations to Be successful in Chinese environment global leaders initially multinational
companies used to employ expatriate leaders in the Chinese offices However due to lack of
awareness of the cultural differences in China They shifted their preference to develop their
own local talent and provided them training to become effective leaders

so students Now I would like to summarize of what we have learnt as We all know leadership
is the most effective method of motivating people in the organization And it's through
effective leadership that the managers guide and influence the action of the employees
Leaders help a group to achieve the goals through maximum utilization of the capabilities and
there are different which are adopted by the managers to take control over the employees and
decision making process as We have already learned in the subsequent modules as well the
major categories of leadership style can be divided into democratic and Lissa's fair in different
countries leaders adopt themselves according to these requirements of the differences in the
culture a lot of difference in the leadership style of China US and Japanese leaders can be
found on the basis of various dimensions As far as employees are concerned Decision-making
process corporate social responsibility approaches are concerned Chinese leadership follows
the Japanese leadership while on the basis of communication work efficiency the Chinese
leadership follows the American leadership style Chinese companies can learn a few things
from the Americans However the Americans also need to learn certain things from the
Chinese as well in the global presence the companies have to integrate Chinese and the
Western perceptions into management practices including the leadership styles
Thank you

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