How can western managers be successful in doing business with China

1. How can western managers be successful in doing business with China Yanyan Chang April 29, 2009

2. Empirical research at three global companies to study cultural impact on business results Ascom Novartis Schindler

3. Empirical research focusing on key areas of intercultural HRM: Recruitment, training and retention Recruitment in a challenging and competitive market Training and development – a must have and a dilemma Job satisfaction, motivation and retention Role of expatriates

4. Recruitment: Employers compete for qualified personnel while graduates fight for jobs Recruitment in a challenging and competitive market Emerging markets including China are producing a surplus of young talent comparing to the developed world; however, candidates for engineering and general-management positions exhibit wide variations in suitability: Poor English skills, qualifications, cultural issues, etc* The imbalance between business opportunities in China and qualified executives to manage them: recruiting talent a bigger challenge ahead of regulatory concerns, bureaucracy, or the infringement of intellectual-property rights**

5. Balanced and well planned training and development a key success factor Training and career development a key decision factor for candidates when choosing employers Continuous training and development needed to ensure sustainable business growth Certain trainings add market value of employees and provide more potential external opportunities

6. Pay and career opportunities are key to motivation and job satisfaction Pay is one of the most important motivation factors Motivation factors: pay considered No.1 engagement factor ahead of career opportunities, work process; salaries increase by 8% in China, 3% in Hong Kong in 05; ‘tier 2’ cities see even greater salary hikes (12% in Nanjing)* Personal behaviour, character of managers also strongly influence motivation of employees Efforts aimed at the retention of the employees (New Year Family Party, Company picnic, Company newspaper, etc)

7. Role of expatriates: Chinese employees more critical about qualification and contribution of expatriates Hard facts, e.g., qualification, skills of expatriates and contribution to business results are more valued than soft skills Intercultural management competence Expatriates with Chinese cultural background: advantages and disadvantages

8. Practical recommendations Recruitment: Do HR marketing, university marketing / internship programs, image care to attract potential candidates Training and development: Ensure fit between business needs and individual aspirations Ensure balanced interest of employer and employee (“Do the job better” or “Do a better job”) through good plan Make good choice of candidates based on multi criteria (professional qualifications, development potential, reliability /commitment / loyalty) Expatriate support and selection: Strong professional qualification / skills Personality characteristics; age and family adaptability Policy consistency and leadership solidarity

9. Some personal learning on cultural differences Difference in values: Duty / responsibility Difference in way of communication: High context / words allow different interpretation