Management Skills and Business Culture in China

Introduction to Management and China's Economic Rise

To some extent, management can be defined as the harmonization of science, art, practice, and implementation. Management takes into account both knowledge and skills. On one hand, the knowledge aspect of management can be learned. On the other hand, the skills aspect of management encompasses the internalization and transfer of management knowledge, which requires not only time resources but also continuous practice. Skills employed by managers are connected to organizational efficiency and have a significant influence on performance (Ping et al., 2012). In everyday practical life, managers ought to emphasize the role of management skills in advancing the performance of organizations and businesses. Research has indicated that a lack of management skills is one of the major reasons that lead small and medium-sized companies into bankruptcy. Therefore, organizations ought to focus on and strengthen their management skills (Ping et al., 2012).

From time immemorial, the Chinese have had different principles in their social order, which have made their style of management completely dissimilar compared to that of the Western world. This paper concentrates on examining China and places particular emphasis on management skills within the country. China was specifically chosen owing to its distinctive style of organizational and business management, which differs markedly from that of the Western world. The paper encompasses a literature review of different management aspects in China and considers the similarities and differences identified.

About China and Its Management Context

At the start of the 21st century, a new economic revolution is underway. China, once one of the paramount trading nations in the world, has emerged from stagnation and is now the fastest-growing economy globally (Institute of Leadership & Management, 2012). Over the past two to three decades, China's economy has rapidly grown and developed. According to the World Bank, China is on course to become the largest economy in the world. As a result, China has attracted global attention across many dimensions, including the management of companies operating within the nation (Chunsheng, 2014). In recent years, considerable emphasis has been placed on comparing the different kinds of management observed in the United States versus those in China.

China might seem an unlikely source of renewed management thinking and philosophy. Its state-owned organizations are, on the whole, constrained giants experimenting with management practices initiated in the Western world. Moreover, China has yet to develop a world-class corporation comparable to GE or Samsung, and many of its businesspeople are better known for building wealth than for pioneering management concepts. However, despite these factors, China offers more management lessons today than most other nations (Hout and Michael, 2014).

The best private corporations in China have not yet produced revolutionary new management methods in the way that Toyota and other Japanese corporations did five decades ago with practices such as total quality management, continuous improvement, and just-in-time systems (Hout and Michael, 2014). Instead, Chinese corporations are currently teaching organizations contemporary essentials, including receptiveness, creativity, flexibility, and speed. These capabilities provide a vital competitive edge. For instance, statistics indicate that China's companies generate approximately fourteen percent higher returns on average (Hout and Michael, 2014).

Management Skills in China

A great deal of contemporary management theory has been developed in Western societies and is not always relevant to Asian economies. Nonetheless, management skills may be an exception. Skills employed by managers relate to enterprise effectiveness and have a substantial influence on management and organizational performance (Analoui, 2000). According to Ping et al. (2012), irrespective of the level of management, one of the most significant management skills in China is technical skill, followed by human skill, and finally conceptual skill. The advancement of a manager from the general workforce to a management position may be the result of effective accomplishment of basic work, for which technical skills are essential. Without this skill, managers cannot perform several tasks effectively (Clem and Mujtaba, 2010).

Technical skill may also be connected to responses from managers themselves, since individuals are culturally motivated to become proficient in every aspect of their jobs and are expected to be specialists. In the research by Ping et al. (2012), the survey emphasized small and mid-sized enterprises, which tend to lack established management capability and skills. The majority of business managers in this context are focused on the affairs of the business and on particular technical issues. The distinctive philosophy of guanxi — the connections among members of a group — also ensures that managers concentrate on developing relational connections. Therefore, human skill occupies an important position among management skills. Furthermore, the Chinese belief that a capable scholar can grow into an official, and the selection methods that follow from this, may also help explain why the conceptual skills of senior managers are not always highly developed (Ping et al., 2012).

Among the most highly prioritized management skills in China are knowledge, wisdom, learning, and the assumption of accountability. Wisdom is regarded as particularly significant in Chinese culture. For instance, the Shanghai World Expo highlighted important management skills such as continuous self-improvement and harmonious engagement with diversity. This differs from the United States, where conceptions of wisdom tend to focus on content rather than practice. Team-working skills are another area of great significance in China, which is unsurprising given the country's long historical emphasis on collective values (Institute of Leadership & Management, 2012).

According to the Institute of Leadership & Management (2012), the perception of Chinese management continues to be rooted in the past — specifically, the view that China's economic and managerial strengths lie in low costs, long working hours, and tough management practices. However, research by the Institute of Leadership & Management (2012) indicates that China is developing a distinct and highly effective management culture: one that is sophisticated, competitive, pioneering, and motivated, driven by the management skills present within its corporations.

With respect to management skills, top leaders and executives in China are well known for controlling corporations from the top. However, what is less recognized is how much these managers also decentralize authority, enabling them to respond rapidly to market shifts and generate new business lines. One key management skill in China is the ability to constantly adapt to change. This includes staying current not only with market developments but also with the differences in development across China's provinces and the influence of local officials (Hout and Michael, 2014).

Another important management skill observed in China is an emphasis on autonomy and accountability. Given the significant regional differences across the country, Chinese managers often develop structures that grant business departments near-complete autonomy. A notable example is Midea, ranked second in the home appliances manufacturing industry, which produces a wide range of products from water heaters and air conditioners to microwaves. Each product line functions as an autonomous business rather than being integrated into a matrix organizational structure. Every manager is responsible for a major product line and is expected to exercise autonomy and accountability skills accordingly (Hout and Michael, 2014).

References

Analoui, F., Labbaf, H., and Noorbakhsh, F. (2000). Identification of clusters of managerial skills for increased effectiveness: the case of the steel industry in Iran. International Journal of Training and Development, 4(3), 217–234.

Bai, X., Enderwick, P. (2003). Economic transition and management skills: The case of China. Business Education and Emerging Market Economies: Trends and Prospects Conference.

Boyatzis, R. E. (1982). The Competent Manager. John Wiley & Sons, New York, NY.

Chunsheng, Z. (2014). What will happen when China becomes the largest economy in the world? CKGSB Knowledge.

Clem, A. H., and Mujtaba, B. G. (2010). Infusing value: Application of historical management concepts at a modern organization. Journal of Management and Marketing Research, 4(1), 135–1.

Hout, T., Michael, D. (2014). A Chinese approach to management. Harvard Business Review.

Institute of Leadership & Management. (2012). China vs. the World: The Global Management Challenge.

Mujtaba, B. G. (2010). Workforce Diversity Management: Challenges, Competencies and Strategies (2nd ed.). ILEAD Academy Publications, Florida, USA.

Ping, H., Mujtaba, B. G., Jieqiong, C. (2012). Management skills' structure in Chinese small and medium-sized enterprises. Society for the Advancement of Management, 77(1).

Shi Jintao, Wang Ii. (2004). Factor analysis of management skill and an empirical study of its effects on company performance. Journal of Industrial Engineering and Engineering Management, 18(1), 76–80.