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    15.chinese Management Style of SOEs

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    emargentino
    The document summarizes key aspects of modern Chinese corporate culture and management style. It notes that Chinese enterprises have parallel administrative and CCP leadership systems, called the "two carriages" system. Chinese enterprises also function like small societies by providing employees extensive benefits and seeing managers as parental figures. Management remains influenced by Confucian values like collective achievement, distrust within hierarchies, and importance of relationships. Decision-making power is centralized, with managers collecting information themselves and employees expected to obey directives. However, this 1990s-era style is evolving as enterprises reform and management depends more on capacity than position.

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    15.chinese Management Style of SOEs

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    emargentino
    168 views19 pages
    The document summarizes key aspects of modern Chinese corporate culture and management style. It notes that Chinese enterprises have parallel administrative and CCP leadership systems, called the "two carriages" system. Chinese enterprises also function like small societies by providing employees extensive benefits and seeing managers as parental figures. Management remains influenced by Confucian values like collective achievement, distrust within hierarchies, and importance of relationships. Decision-making power is centralized, with managers collecting information themselves and employees expected to obey directives. However, this 1990s-era style is evolving as enterprises reform and management depends more on capacity than position.

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    15.Chinese Management Style of SOEs

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    The document summarizes key aspects of modern Chinese corporate culture and management style. It notes that Chinese enterprises have parallel administrative and CCP leadership systems, called the "two carriages" system. Chinese enterprises also function like small societies by providing employees extensive benefits and seeing managers as parental figures. Management remains influenced by Confucian values like collective achievement, distrust within hierarchies, and importance of relationships. Decision-making power is centralized, with managers collecting information themselves and employees expected to obey directives. However, this 1990s-era style is evolving as enterprises reform and management depends more on capacity than position.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    168 views19 pages

    15.chinese Management Style of SOEs

    Uploaded by

    emargentino
    The document summarizes key aspects of modern Chinese corporate culture and management style. It notes that Chinese enterprises have parallel administrative and CCP leadership systems, called the "two carriages" system. Chinese enterprises also function like small societies by providing employees extensive benefits and seeing managers as parental figures. Management remains influenced by Confucian values like collective achievement, distrust within hierarchies, and importance of relationships. Decision-making power is centralized, with managers collecting information themselves and employees expected to obey directives. However, this 1990s-era style is evolving as enterprises reform and management depends more on capacity than position.

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    of 19

    Chinesemanagementstyle

    Modern ChineseCorporateCulture underguidanceof LanQiu Presentedby WangZelong

    OrganizationalStructure Two Carriages


    Thegreatestdifferenceinorganizationalstructure betweenmostChineseenterpriseandWestern companiesisthatthereareparallelmanagement systemsinaChineseenterprise. 1,administrativesystem 2,leadershipstructurebasedaroundCCP(Chinese CommunistParty) SothissystemisalwaysreferredasTwoCarriages

    OrganizationalStructure Two Carriages


    Mainresponsibilityofthelattersystem (leadershipstructurebasedaroundCCP)is personnelassignment. Becauseofthedifficultiesassociatedwith operatingtheparallelsystem,differencesof opinionoftenarisebetweenthetwo managementsystems.

    OrganizationalFunctions Asmall society


    a) ThefunctionofaSOE:alargefamily. MostenterprisesinChinanotonlyprovidetheir employeewithworkingopportunitiesand salaries,butmustalsoofferafullarrayof materialnecessities,includingmedicalinsurance, housing,childcare,schoolingandentertainment. Itplaysanextensiveroleinboththe professionalandprivatelivesoftheiremployees.

    OrganizationalFunctions Asmall society


    a) ThefunctionofaSOE:alargefamily. SotheOrganizationalFunctionsofChinese enterprisearelikethoseofasmallsociety. ThereforeaSOEmanagersworkisvery complex.

    OrganizationalFunctions Asmall society


    b) Thefunctionofamanagermustbelikeaparent. Astheenterpriseisregardedasalargefamily, thegeneralmanagerisnaturallyassumedasa parent. Actually,managersarerespectedastheheadof familybytheemployees.Inreturn,managers musttakecareofemployees.

    OrganizationalFunctions Asmall society


    b) Thefunctionofamanagermustbelikeaparent. 1,goodparent:whotakesgoodcareoftheir family>theenterprisewillbecohesiveand efficient. 2,otherwise,themanagerfailsnomatterhow profitabletheircompanyis Sothecriterionofagoodmanageristhatwhether heorshecansecurebasicmaterialandwelfare benefitsforemployees.

    OrganizationalFunctions Asmall society


    c) ThesalarysystemofSOEemployees 1,Employeesarepaidmonthly. 2,Salariesareconsistof4parts:abasicsalary, senioritysalary,bonusandsubsidy. subsidy:housingrental,medicalcare,non staplefoodstuffs,newspapersandbooks, transportation,evenclothingandfoodstuffs.

    CorporateValues Confucian influencestillverystrong


    ManagementinChinaisstilldeeplyinfluenced byConfucianvalues,passeddownfromone generationtothenextthroughfamily socialization.

    CorporateValues Confucian influencestillverystrong


    a) Managementsimpersonalachievement orientation. Chinesemanagersinsistongroupor collectiveorientation.Anyachievementis claimedonbehalfofthegroupand organization.Onlyfriendlycompetitionis encouraged.

    CorporateValues Confucian influencestillverystrong


    a) Managementsimpersonalachievement orientation. Itisdifferentfromwesterncompanieswhich arecharacterizedbyaspiritofself actualizingcompetition. Managersthinkthatindividualsshouldwork inharmonywithmajorityandkeepthe competitiontoadegreethatisacceptable bythemajority.

    CorporateValues Confucian influencestillverystrong


    b) Distrustwithinorganizations. Inmanyenterprises,managerscannottrust subordinates,partlyasaresultofhierarchical value. Justliketherelationshipbetweenparentsand children,childrenshouldrelyontheirparents andparentsdonotthinkthattheirchildrenare matureenoughtotakeresponsibilities.

    CorporateValues Confucian influencestillverystrong


    c)Cooperationbasedonobedience Itislikeatopdownsystem.Thesubordinates areexpectedtoyieldtothemanagersandfully complywiththeirinstructions.Themanagers areaccustomedwiththiskindofhierarchy, althoughinChinaitisreferredascooperation.

    CorporateValues Confucian influencestillverystrong


    d)Theimportanceofrelationshipsandharmony. Guanxi Chinesemanagersplaceahighvalue oninformalrelationshipwithinanorganisation. Inordertomaintainasteadyworkplace atmosphere,themanagerhavetoconcentrate ontheestablishingthenonworkrelationships.

    TheLeadershipStyleofChinese Organizations
    a) Formal participationsystems. TheWorkersCongressesareusuallypermitted toparticipateindecisionsrelatedtoworking conditions,notstrategicpolicy.

    TheLeadershipStyleofChinese Organizations
    b)Theroleofmiddlemanagersinthedecision makingprocess Chinesemiddlemanagersusuallycarryoutthe managersinstructionsobediently.

    TheLeadershipStyleofChinese Organizations
    c)Collectinginformationandmakingfinal decisions Becausemanagersdonotfullytrusttheir employees,theyprefercollectinginformation themselvesratherthanfromcolleaguesor subordinates.

    TheLeadershipStyleofChinese Organizations
    d) Responsibilityfortheimplementationof decisions. Chinesemanagersbelievethattheresponsibility forimplementationofdecisionsshouldnotbe takenindividually.

    ThoseabovearethecharacteristicsofChinese enterprise.However,itshouldbeawarethat thosearethephenomenonin1990s. Nowadaysmostofmiddleandsmallenterprises arereformedandthereisnomoreParty LeadershipSystemwithinthem.Andalsothe styleofmanagementisdeveloping.Managers powernowdependsontheircapacityto perform,andalsoonhowtheyapplytheir professionalknowledgeratherthanontheir authorizedpositionalone.

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