The Chinese Corporate Culture: why is “guanxi” so important?
Corporate culture plays a critical role in shaping the work environment, decision-making, and overall success of any organisation. In the first case study, “Recruiting for a multinational enterprise in China”, we have seen many differences between western culture and the Chinese in terms of organisational values, communication styles, and leadership expectations. Therefore, in this article we will focus on the Chinese corporate culture, we will talk especially about “guanxi” ( 关系 ), illustrating Chapter 4 in the book: “Understanding cross-cultural management”. Power: hierarchy The hierarchical structure of Chinese society, as well as company, age, position or title, determines how people are treated differently when they meet unexpectedly. In China, individuals are expected to obey the organisation. In business meetings, people will enter the meeting room according to their rank, and senior managers will usually be able to lead any negotiations or discussions. In addition, Chinese...