Note: Sample below may appear distorted but all corresponding word document files contain proper formattingExcerpt from Essay:
State Domination and Financial Markets
The Chinese government has characterized its involvement in economic development as "serving rather than supervising the private economy" since 2008 (Xinhua, 2009). With this shift in focus a number of changes to Chinese management can be expected. The paternalistic approach will remain, as it is part of Chinese culture, but there will be further Western influences, particularly with respect to the desire outcomes of management behavior.
In their efforts to serve business, the Chinese government will inevitably work harder to attract foreign investment and to allow business to set the terms by which they can seek investors. This will shift the desired outcomes of management behavior towards those sought by a wider range of investors, both domestic and foreign. Asia Aluminum provides an example of this, as foreign investor outcry over the bond scandal forced the company to consider other options. Management at that point realized the influence that the foreign investor community had over its operations -- the outcry had caused the municipal government that backed the bond buyback offer to withdraw its support (Santini, 2009). Management is now faced with more difficult decisions including a total restructuring of the company, which had been operating unprofitably. This shows how Chinese management and corporate governance has been changed by the increase in foreign listing as Western governance standards were implemented against the wishes of the Chinese company's management. As more Chinese companies are free to seek international investing, they too will find themselves faced with adherence to both Western and Chinese standards of governance and management.
As state domination in many sectors of the Chinese economy lessens, Beijing still maintains strong influence over the yuan, which is on a managed float system. There is little impetus at present for a move towards a free float, but with government involvement in private economic enterprise lessening, that trend will eventually be applied to the currency as well. The implications for Chinese companies of such a move would be dramatic. They would then be forced to compete even more intensely on the basis of efficiency and quality, having lost the competitive advantage their exchange rate currently gives them.
As China continues with its economic reforms, there is a continuous impact on management and on corporate governance. In some ways private enterprise -- particularly those firms that are partially privatized, such as the 2/3 firms -- operates with shareholders as surrogates for the role that the government once played. Yet the fully private companies are developing an entirely new style of management. Upcoming reforms promise to bring the fully private companies into the same realm and subject to the same laws as the partially-private firms. This will change the dynamic of managers who have until now been motivated almost entirely by the need to generate retained earnings. Thus, management in China is being pulled in different directions by the needs of government, private enterprise and foreign investors. Ultimately, management and governance in China will settle on a system that is very much a socialist market system with Chinese characteristics.
Gang, Fan. (2005). China is a Private Sector Economy. Business Week. Retrieved June 8, 2009 from http://www.businessweek.com/magazine/content/05_34/b3948478.htm
Zhu, Cherrie Jiuhua. (2005). Human Resource Management in China. Retrieved June 8, 2009 from http://books.google.com/books?id=mOBwfLzp7boC&pg=PA1&lpg=PA1&dq=china+management+economic+reform&source=bl&ots=NRJMQ-pIY-&sig=rIgeR5smWqFufALsTdK5P8AHZxY&hl=en&ei=uHktSuLtHo6fsgb2m6meDA&sa=X&oi=book_result&ct=result&resnum=10
Green, Stephen. (2003). 'Two-thirds privatization': How China's listed companies are -- finally -- privatizing. Royal Institute of International Affairs. Retrieved June 8, 2009 from http://se1.isn.ch/serviceengine/FileContent?serviceID=ISN&fileid=0C55BCE1-85E3-F567-3F79-E6B47296364E&lng=en
Foley, John & Beales, Richard. (2009). A Hard Lesson for Foreign Investors in China. New York Times. Retrieved June 8, 2009 from http://www.nytimes.com/2009/03/02/business/worldbusiness/02iht-views03.1.20523651.html
Tsui, Anne S., Hui Wang, Katherine Xin, Lihua Zhang, P.P. Fu. (2004) Variation of Leadership Styles Among Chinese CEO's. Organizational Dynamics, Vol. 33, No. 1, pgs. 5-20,
Yi, Zhong. (2006). The Shareholders' Rights -- Revision and Explanation on China Law Article 4. China Business Law. Retrieved June 8, 2009 from http://www.lawcase.org/archives/node/66
No author. (2009). Chinese enterprises are 70% private. Chinaview.cn/Xinhua. Retrieved June 8, 2009 from http://news.xinhuanet.com/english/2009-04/21/content_11228390.htm
Gregory, Neil & Tenev, Stoyan. (1999). The Financing of Private Enterprise in China. Finance & Development. Retrieved June 8, 2009 from http://www.imf.org/external/pubs/ft/fandd/2001/03/gregory.htm
Santini, Laura. (2009). Asia Aluminum Pulls Buyback. Wall Street Journal. Retrieved June 9, 2009 from http://online.wsj.com/article/SB123720641518940621.html
Green, Stephen. (2006). How Long is the Dragon's Claw? HSBC. Retrieved June 9, 2009 from http://www.hsbc.com/1/PA_1_1_S5/content/assets/news/061009_soas_stephen_green.pdf[continue]
"China Management As China's Economy" (2009, June 08) Retrieved October 27, 2016, from http://www.paperdue.com/essay/china-management-as-economy-21296
"China Management As China's Economy" 08 June 2009. Web.27 October. 2016. <http://www.paperdue.com/essay/china-management-as-economy-21296>
"China Management As China's Economy", 08 June 2009, Accessed.27 October. 2016, http://www.paperdue.com/essay/china-management-as-economy-21296
Management Wal-Mart's challenges in the Global market Wal-Mart as the world's leading retailer has been spreading very fast extending its power across the world market. This began with the nine countries in South America, Asia, and Europe. This expansion is likely to extend even in the near future. As the company attempts at penetrating the hypermarket culture in different countries, it has encountered a battery of severe problems in the process of
The most recent trajectory for China's economy has been notable for its absence of emphasis on heavy industry. Mao's original plans focused on heavy industry the major driver of Chinese economic growth. Deng, too, had wanted to build out China's capacity in steel and heavy manufacturing industries. In recent years, service industries and light manufacturing have taken a more prominent role in the Chinese economy. The sense is that during
China's Economy And Foreign Policy There have been radical changes in the internal political and economic scenario of China during the last two decades. (Lampton, 2001) The growing economic stability and control has increased the status of china to a great extent among its trading counterparts. Further, it has become obligatory on the part of the Chinese Government to make it certain that the economic development to restructure the political discipline
Aside these impacts however, more salient effects are observable, such as a necessity to change internal practices of business. A relevant example in this sense is given by Wal-Mart, in its quality of America's largest retailer, which decided, unlike within the U.S., to allow Chinese employees to unionize (Dessler, 2006). The official approach of the Chinese leaders was that of implementing reforms which further capitalize on the low cost labor
In addition, outsourcing is seen as one way of freeing HR professionals within the client organization from more mundane and time-consuming tasks so as to better concentrate on core competencies and provide a more consultative and strategic role (Cooke 186). Although the growth of HR outsourcing business has been dramatically facilitated by the introduction of innovations in information and communication technologies (ICT) throughout China in recent years, many companies also
Outsourcing Its Impact The effects of outsourcing in today's economy Effects on People Being an expatriate Breaking the language barrier Culture Shock Outsourcing and people dynamics: Impact on company Effects on Economy Capital flows Impact on technology Global management and outsourcing The effects of outsourcing in today's economy Outsourcing has become an increasingly popular business strategy for transnational organizations. Many of the U.S. corporations started outsourcing their manufacturing operations since late 1980s. This was due to the potential advantages, both from an
Travelling and Tourism contributes to U.S. Economy How travelling and tourism contribute to U.S. economy Annotation Websites United States Department of Commerce Commerce Department Data Show U.S. Travel and Tourism Exports Contributed $87.1 Billion to U.S. Economy in First Six Months of 2013 The official website of the U.S. Department of Commerce takes keen interest in finding who enters the country for the purpose of traveling and tourism and what is the impact of traveling on