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University of Limerick Limerick, Ireland June 29, 2012

Competent Chinese Cats. Framing Research. on the. Institutional Effects. Central Organization Department. of the. on. and. Chinese Executives. Chinese Performance Management. University of Limerick Limerick, Ireland June 29, 2012. IFSAM 11 th World Congress

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University of Limerick Limerick, Ireland June 29, 2012

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  1. Competent Chinese Cats Framing Research on the Institutional Effects Central Organization Department of the on and Chinese Executives ChinesePerformanceManagement University of Limerick Limerick, Ireland June 29, 2012 IFSAM 11th World Congress Management Re-imagined

  2. Competent Chinese Cats Allen D. Engle, Sr. Professor of Management Eastern Kentucky University Richmond, Kentucky USA University of Limerick Limerick, Ireland June 29, 2012 IFSAM 11th World Congress Management Re-imagined

  3. Competent Chinese Cats v “It doesn’t matter if it is a white cat or a black cat, a cat that catches mice is a good cat.” Deng Xiaoping - 1962

  4. Overview • Chinese society values complex competencies culturalfunctionalproduct

  5. Overview • Chinese society values complex competencies • The COD’s role in accepting implicitperformance management processes is unknown. culturalfunctionalproduct

  6. Overview • Chinese society values complex competencies • The COD’s role in accepting implicitperformance management processes is unknown. • How widespread is the impact of COD on “private sector” MNE performance management processes in China? culturalfunctionalproduct

  7. Complex Competencies Competencies as Strategically Linked Engle, Mendenhall, Powers and Stedham (2001) • Cultural Competencies • Functional Competencies • Product Competencies

  8. Complex Competencies It is difficult to measure • Courage • Curiosity • Compassion Instead, we measure these competencies:

  9. Complex Competencies Cultural

  10. Complex Competencies Cultural Functional

  11. Complex Competencies Cultural Product Functional

  12. Complex Competencies But … Cultural

  13. Chinese Cultural Competencies Cultural Chinese cultural competence has 3 parts:

  14. Chinese Cultural Competencies • Traditional Confucian Values “Ti” – substance or essence

  15. Chinese Cultural Competencies • Traditional Confucian Values “Ti” – substance or essence • Chinese Marxist Values

  16. Chinese Cultural Competencies • Traditional Confucian Values “Ti” – substance or essence • Chinese Marxist Values • AdministrativeorEntrepreneurial Values ¥

  17. Functional Competencies • Understanding modern business functions: • Marketing • Production • Distribution • HRM • “Yong” – function or utility • Self-strengthening effortsof the 19th century duringthe ill-fated “TonzhiRestoration” Functional

  18. Product Competencies • Understanding productson a micro level • Understanding productson a more macro level(industry) Product

  19. Conflicting Competencies? Conflict • Within the 3 cultural competencies: Entrepreneurial Marxists? • Between cultural and functional competencies • Between cultural and product competencies • Between functional and product competencies

  20. Implicit Performance Management Systems Global Performance Management Systems Engle, Dowling & Festing (2006) Inputs Process Outputs GloballyStandardized LocallyCustomized Person Job Production

  21. Implicit Performance Management Systems

  22. Implicit Performance Management • In November of 2004 the top executives ofChina Mobile,China Unicom, andChina Telecom were unexpectedly reshuffled • Two firms were listed on overseas exchanges • One firm was preparing to sell shares offshore Political competencies at the expense of entrepreneurial or product competencies?

  23. Emerging Explicitness? • More public annual review of party personnel • Professional merit and moral integrity • Professional achievements • Acceptance by the masses • Regional gross domestic product

  24. Emerging Explicitness? New Appraisal Forms Include Old Imperial Confucian Cultural Competencies As Criteria • “De” - Morality • “Neng” - Capability • “Qing” - Diligence • “Ji” - Achievement • “Lian” – Uncorrupt The ultimate goal: A cadre of “Rencai” talented people

  25. Institutionalism in China? • Very little information on the COD even though it was founded in 1921 • Even less information on potential institutional effects (Festing, 2006) of COD activities on wider executive assessment processes in China

  26. How Far-reaching is COD Institutionalism? If the CPC is “The Epicenter,” How far out do the activities of the COD go to: • State owned enterprises in critical industries • State owned enterprises in other industries • Collectives – “red hat” firms • Private firms – “Siying” or “Minying” • International joint ventures • MNEs doing business in China

  27. Dual Systems? Cooke (2008) distinguishes between: • Enterprise Workers • Government Officials and Civil Servants Which system applies to Chinese executives?

  28. Institutionalism Abroad • What impact (if any) does the institutional context of the COD have for the very many Chinese-based outward foreign direct investment assignments going on today? • Is there an exported Chinese executive culture?

  29. Convergence - Divergence • Do Western-based MNEs make adjustments in executive performance management systems going into China? • Do Chinese-based MNEs make adjustments in executive performance management systems going around the world?

  30. Conclusions Interesting issues, but problems remain: • Assessing knowledgeable actors • Verbalizing competencies • Research designs to measure the institutional effects of the CODs practices Finding the cats if they don’t want to be found

  31. Why Bother? • COD activities are a critical aspect of China’s efforts to balance economic development and political stability. • Understanding unfamiliar, complex, person or process-based performance management systems may assist MNEs in dealing with increasing geographic and cultural distance.

  32. Why Bother? • Institutional effects on HRM practices may consist of • “Harder” elements:Legislation • “Softer” elements:Traditional governance practices, preferences and schemas • Some GPM systems may be characterized byimplicit, person, or process based models,rather than theexplicit, objective outcome-basedmodelsprescribed by U.S. experts

  33. Thank You for Your Attention Questions? Comments? Allen.Engle@eku.edu www.people.eku.edu/englea Presentation by Ron Yoder University of Limerick Limerick, Ireland June 29, 2012 IFSAM 11th World Congress Management Re-imagined

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