Managers in the People's Republic of China

Abstract

Executive Overview Since many U.S. executives currently or one day will work with Chinese managers, it seems worthwhile to examine management in the P.R.C. This article—based upon interviews with 50 Chinese workers and 120 managers—examines the forces that press upon Chinese managers and subsequently looks at their management approaches. We find that Deng Xiaoping's “reform” program and inflation have the strongest impact upon managers. These, along with the Communist Party, 40 years of socialism, feudalistic values, guanxi (influence peddling), and the labor-intensive economy mold the management seen today. These forces tend to squeeze managers into “low-power” positions, from which they operate quite pragmatically. Specially, China's managers develop warm relationships with workers, offer favors, and loosen the operating rules. In addition, they shame workers, request assistance from the workers' families, and some attempt to reward productive workers. Finally, they rely upon their guanxi. Like it or lo...