Cross cultural management with poland doing business with china

Assignment subject

This assignment proposes to look into: “ Cross-cultural direction. Poland ( host state ) making concern with China ( 2nd state ) . ” A instance survey of possibilities of dialogue between Energomontaz-Poludnie SA, a Poland-based company specialized in assembly, modernisation and fix of machines and installing for public-service corporation and industrial power workss and Chinese based Dongfang Electric Corporation ( DEC ) .

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Purposes and Aims

The purpose of the research is to detect if Poland can go a successful spouse for Chinese company. This probe should function directors and investors as a usher on how to get the better of transverse cultural barriers and successfully negotiate. The nucleus inquiry answered will be whether Poland and China can happen a common land in communicating.

First, 5D Model analysis of Poland vs. China made by professor Geert Hofstede will be discusses to compare the similarities and differences in civilizations. This will supply us with a theoretical model proposing what way the industry should be heading.

Second, this paper will exemplify how cultural similarities and differences may impact the partnership between these states in the hereafter. Furthermore I will concentrate on how Polish directors should move and act in order to derive the Chinese trust and which cultural characteristics and characteristic may assist in constructing the partnership.

This assignment will therefore bring forth decisions turn outing a hypothesis that Polish companies fulfills the standards and are able to go Chinese spouses.

Justification: intent of survey

Nowadays China is the biggest Polish economic spouse in Asia. But every bit good since 5 old ages Poland is their largest market spouse and gate into The European Union ( Ministerstwo Gospodarki, 2010 ) . That is manner Chinese authorities encourages domestic companies to take part in the building of the Polish substructure ( MinisterstwoGospodarki, 2008 ) . Furthermore in 2010 on 3 November, China and Poland signed a declaration on economic cooperation which confirmed their good dealingss. Their bilateral trade in 2010 was expected to transcend 13 billion Euros ( Ministerstwo Gospodarki, 2010 ) . Poland is now regarded as a Eden state for the power industry investors because of large slowdowns behind in footings of engineering and investing. ( www.Polishmarket.com, 2010 ) . That is manner it would be indispensable for China and Poland to collaborate in this field. This paper will assist to demo the possible manner of cooperation on the illustration of Energomontaz Poludnie Sa, Polish company coming to negociate concern trades and partnerships with Dongfang Electric Corporation limited international – Chinese company. They will necessitate a clear apprehension of the whole image of cultural background differences and similarities. They can non handle this dialogue as a larning experience they need to come already prepared in order to make non lose possible strong concern spouse.

The 5D Model of Professor Geer Hosfstede

In order to compare two civilizations of Poland and China it is deserving to look at the 5D Model prepared by Geer Hosfstede. His findings are focus on 5 different dimensions: power distance index, individuality, maleness, uncertainness turning away index, long term orientation. ( see appendix 1 )

Figure 1: The 5D Model of Professor Geert Hosfstede ( Hosfestede, 2009 )

This is a general conceptual model but it may assist directors to understand how, on mean, people from different states position and work out basic jobs. Furthermore this theoretical account helps us to acknowledge that Polish and Chinese civilization differentiate chiefly in 3 points: individuality, uncertainness turning away and long term orientation. Both states are highly similar in maleness index and there is merely little difference in power distance.

Power Distance Index

First we would discourse the small differences coming from Power Distance Index. Most likely both states have high degree of power distance coming from the past Communist political orientation and cultural heritage. In that instance both companies would hold no job with governments. Decision devising will be more willing to come from chief director and can non be discuses and questioned on public. In China Confucianism teaches them that people are non equal. To this twenty-four hours, people in China are defined by their function in society and part to it, Status is influenced by relationships and these are attached to implicit responsibilities and duties. Peoples are viewed as relation-oriented existences, regulated by central relationships that dictate an person ‘s duty – renging- toward other people ( Dana, 2007 ) Power distance can be every bit good easy observed in utilizing rubrics. In Poland and China until you become good friends and/or they let you cognize the moniker or in instance of China “ Western name ” it is needed to name people by their rubrics. It is the manner of demoing position, regard and acknowledgment ( Boye Lafayette De Mente, 1994 ) .

Individuality

Polish and Chinese individuality index is wholly different and it can extremely act upon the motive system inside the company. It is of import to recognize that Polish and Chinese workers will anticipate different sorts of wagess for their high public presentation. Polish people will be more willing to derive economic and stuff awards based on their single accomplishment while Chinese prefer to hold corporate duty so they would instead experience uncomfortable and intimidated if the wagess would be given to persons. Poland emphasizes competition, utility and ability and China give attending to societal moralss morality and spirit. ( Jiazheng, 2006 )

Maleness

Taking into history maleness index of both states it will bespeak that this societies can be characterized by stuff success and advancement. They can be motivated by understanding for the strong leaders, emphasis on equity, and deriving accomplishment. This states are expected to be decisive and self-asserting. They live in order to work

Uncertainty Avoidance Index

This index can state us that Polish workers may be more emotional in their work and can seek to take control over some events, seek to be advanced and do fast determinations while Chinese who believe more in destiny- fatalism coming from Confucius doctrine would be more brooding and wo n’t show their emotions and thoughts in haste. So for Polish people developing the ability to be patient and tolerant can surprisingly rush up dialogues. ( Dana, 2007 )

Long Term Orientation

The biggest difference in this index is coming from the Guanxi ( see appendix 2 ) being. Therefore this states need to set much more attempt to understand each other and get the better of this barrier, which can be a mile rock in many dialogues stairss. Polish companies need to seek constructing relationships with Chinese. They should get down sharing experience, gifts and favours and seek to make merely long term concern alternatively of individual trades. Consequently it will construct trust and certainty between them. But of import thing to retrieve is that Guanxi does non reassign. When your guanxi individual will be moved or travel off, so does the relationship. Guanxi relationship is with individual at the organisation and non the organisation itself. ( Chan, 2011 )

Case survey

As we can see globalisation may hold given rise to a planetary small town, but has non produced a homogenous universe civilization. Alternatively, there are still assortment of belief systems and sets of imposts. This is of import because civilization shapes managerial premises. While that which goes on around the dialogue tabular array is of import, everything that sounds a trade is every bit influential- spoken or mute ( Dana, 2007 ) Our personal reading based on our cultural frame may take us to incorrect decisions. That is manner Energomontaz Poludnie SA to supply effectual dialogue with Chinese Dongfang Electric Corporation must further cultural sensitiveness and credence of new ways of making things within the organisation. Management should for illustration develop institute internal instruction plans ( Czinkota, Ronkainen, Moffett, Marinova, & A ; Marinov, 2009 ) . These two mentioned parties are willing to run into and discourse a new concern venture. Energomontaz would wish to convert Dongfang to go its spouse non merely in operational degree but besides on the capital degree. That will assist them to develop faster and win new undertakings to recognize and Dongfang can derive a new platform entree to Polish and European energetic markets. At this phase companies try to acquire together and they do non hold any specific proposals as for the construction of the trade. It seems that all options are unfastened, including bulk interest for the Chinese investor. First Polish company is traveling to China to show themselves and if the visit will travel good they should afterwards before subscribing contract invite Chinese representatives to Poland to demo the company and to host them heartily. To the Chinese, there are three distinguishable phases in set uping concern dealingss: the societal facet, the negotiations and relationships taking to the sign language of a contract and so truly acquiring down to the spring and take of the working relationships after the contract is signed.

Social facet: meetings & A ; salutations behavior

First feeling made during a meeting is highly of import, Polish directors will necessitate to be cognizant to make the handshaking decently ( in Poland merely one right manus ) . In China traditional handshaking is to cup one ‘s ain custodies ( left over right ) , chest high, and lift them somewhat while bowing for every salutation it is needed to stand up. ( Boye Lafayette De Mente, 1994 ) After the shingle concern card should be exchanged by utilizing both custodies. Business card should be confronting the receiving system and they should non hold ruddy ink on them as it is proposing in Chinese civilization the terminal of relationship. When you will have the concern card do non set it straight into your pocket but read it to demo regard ( Seligman, 1999 ) . In instance of visual aspect there should non be a batch of jobs as specially Polish business peoples are modesty and good educated with propernesss manners ( Kissel, 2000 ) ( Boye Lafayette De Mente, 1994 ) .

Second measure would be readying for feasts, dinners and visits which for Chinese are non merely run intoing but already a trade points and the manner to cognize you better. Casual conversation is compulsory before any serious concern is done at the meeting. Refusing to take part will be seen as contemptuous moreover allowing them ever to do the agreements will reenforce the impression that you are playing on their place tribunal. During these meeting it will be more likely that Chinese co-workers will be inquiring Polish representatives personal inquiries like, how many childs they have etc. that will demo that they want to cognize how stable and trusty Polish company can be as a spouse and Polish representatives should inquire Chinese similar inquiries – every bit good about their programs for growing, enlargement and client relationships to make non bury about concern issues. ( Seligman, 1999 )

Another of import issue during meetings and feasts is arrangement facet. In Poland normally the most of import 2 people are sitting at the top of the tabular array alternatively in China ( see appendix 3 ) the chief invitee is seated at the principal host ‘s right on a couch or in chairs opposite the door. Other High-level invitees are seated in the immediate locality, as are translators. ( Seligman, 1999 )

Finally, sing etiquette of gift giving and having it is the Chinese manner to worsen gifts, invitations and other offerings two or three times, even when they want to accept. It is seen as a affair of etiquette. Due to Polish similar attitude connected with modestness it will be easier for them so the other alien to cognize how far to travel in reiterating offerings, and how far to travel in worsening offers made to them ( Boye Lafayette De Mente, 1994 ) . The biggest difference in gift giving between Poland and China is the manner to open it and value. In Poland it is seen ill-mannered if you do non open the gift instantly but in China it is ill-mannered to make that as you will be looking as aggressive and avaricious. Polish directors need to be cognizant to make non do their Chinese co-workers into problem by offering them anti-communist stuffs like foreign films, magazines etc. and should retrieve that pecuniary value indicate the importance of relationship.

Relationships

Main differences between Polish and Chinese civilization durable relationships is that Polish people are more willing to still maintain it on more “ professional intimacy ” alternatively blending concern and private life. Polish are easy giving person their trust but every bit good like in China concern is based on common regard and honestness. Both states treat these signifiers of relationships and all contracts truly earnestly – that can be coming from their difficult historic background, so happening a common land would be possible. They understand that it is indispensable to demo dependable image and do others to experience safe making concern with them. In order to forestall all the misinterpretations all the treatments and contracts should be clear and translated into Polish, English and Chinese. In both states dialogues wo n’t be progressed towards claiming value or accomplishing substantial ends if misinterpretations have non been clarified and trust established. ( Flader, 2006 )

Negotiation & A ; subscribing contracts

For Polish company, before get downing dialogue it would be recommended that negotiants will read Sun Tzu ‘s “ Art of War ” as all the Chinese are strongly influenced by its ides of dialogue and schemes. ( Hupert, 2008 ) . Main points mentioned in Sun Tzu ‘s Art of War are:

Using friendly relationship to derive grants

Playing off competitior

Geting the other side to demo their cards

Using advocates to pattern their ain accomplishments

Taking advantage of aliens ‘ investing or fright or failure

Using your ain words against you

Flattery

Delaying dialogue until last minute

Inflating monetary values and concealing the existent underside

Using translators ( Li, 2003 )

During the dialogue is every bit good worth to understand Lao Tsu construct ( see appendix 4 ) , the inspiration for Taoism which express moral Chinese values and act upon their dialogue manner ( more concerned about the manner of making concern, procedure itself than the terminal of it ) . But sing aliens Polish business communities need to be cognizant that Chinese dialogue is linked to both guerilla warfare and psychological warfare- work stoppage, retreat ; work stoppage, retreat ; confound the “ enemy ” , acquire them off guard, weaken their will, do them to experience guilty for opposing you, do a “ concluding offer ” that is well below what they know is acceptable. Often Chinese directors were already trained in cross-examining and intimidating oppositions ( Boye Lafayette De Mente, 1994 ) . In traffics with state-owned or state-related concerns like Dongfang, authorities is still the “ unseeable manus ” which helps and manipulates the dialogue procedure. They offer political considerations and nuances the forces that guide directors ‘ behaviour ( but subsequently if the contract is signed they will assist both sides ) . That is manner Polish representatives can non fell easy intimidated and need to be prepared for thrust aheading – which is non their cultural strength.

The other cultural difference which can act upon perceptual experience of making concern and discussing contracts is difference in the Chinese pictographic linguistic communication and Polish Roman letters. Chinese at an early phase of their life are able to memorise 1000s of pictural characters instead than sequences of letters this developed two ways of thought. Chinese expression more at the large image and Polish people are more focussed and happen it easier to look at inside informations. ( Harvard Business Review, 2003. )

Finally, if the contract will be up to subscribe, Energomontaz must to do certain that the signature on Chinese sight will come from a senior Dongfang functionary with existent authorization. Furthermore it is indispensable that this senior functionary will remain in his place over Energomontaz contractual period or at least boulder clay they become good established venture. The ground behind that is that in China, the subscribing individual holds ultimate duties for the understanding, whether it is a private-owned or publicly-listed company this is of import difference as in Poland signer is by and large subscribing for the organisation non for individual. ( Strategic Negotiation Institute, 2009 )

Bibliography:

Boye Lafayette De Mente. ( 1994 ) . Chinese Etiquette & A ; Ethical motives in Business. Chicago: NTC Business Books.

Chan, B. ( 2011 ) . The art of negociating with the Chinese – tips on transverse cultural negotiating. Retrieved February 7, 2011, from hypertext transfer protocol: //www.scotwork.com.au/negotiation-insight/negotiating-tip-12.aspx

Czinkota, M. , Ronkainen, I. , Moffett, M. , Marinova, S. , & A ; Marinov, M. ( 2009 ) . International Business. west Sussex, England: John Wiley & A ; Sons, Ltd.

Dana, L.-P. ( 2007 ) . Asiatic theoretical accounts of entrepreneurship, from the Indian Union and the Kingdom of Nepal to the Nipponese Archipelago. Singapore: World Scientific.

Flader, D. ( 2006 ) . “ Poles are stating Lies! ” “ Poles do non follow the Rules. ” “ There is no Work Moral in Poland. ” – Western Ailments about Poles as a Matter of Culture Shock. Context & A ; Culture.

Harvard Business Review. ( 2003. , October ) . The Chinese Negotiation. Harvard Business Review.

Hosfestede, G. ( 2009 ) . Retrieved February 6, 2011, from hypertext transfer protocol: //www.geert-hofstede.com/hofstede_poland.shtml

Hupert, A. ( 2008, April 4 ) . Negotiation in China. Retrieved February 6, 2011, from 5 Chinese Negotiating manner: hypertext transfer protocol: //www.chinesenegotiation.com/2008/10/5-chinese-negotiating-styles/

Jiazheng, S. ( 2006 ) . Culture is like H2O. Beijing: Foreign Language Press.

Kissel, N. ( 2000 ) . Passport Poland. USA: World Trade Press.

Li, J. ( 2003 ) . Passport China. USA: World Trade Press.

Ministerstwo Gospodarki. ( 2010, November 3 ) . Ministerstwo Gospodarki. Retrieved February 6, 2011, from hypertext transfer protocol: //www.mg.gov.pl/node/11880

MinisterstwoGospodarki. ( 2008, January 15 ) . Ministerstwo Gospodarki. Retrieved February 6, 2011, from hypertext transfer protocol: //www.mg.gov.pl/Wiadomosci/Waldemar+Pawlak/Polska+Chiny+zaciesnianie+wspolpracy.htm

Seligman, S. D. ( 1999 ) . Chinese Business Etiquette. New York: Warner Business Books.

Strategic Negotiation Institute. ( 2009 ) . Successful Negotiation In Poland. Retrieved February 7, 2011, from hypertext transfer protocol: //strategicneg.com/Successful % 20Negotiation % 20In % 20Poland2.html

www.Polishmarket.com. ( 2010, September 23 ) . Europower 2010: Polish energy sector ‘an investor ‘s Eden ‘ . Retrieved February 5, 2011, from hypertext transfer protocol: //www.polishmarket.com.pl/document/:23896, Europower+2010+Polish+energy+sector+an+investors+paradise.en.html

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