Abstract
Asks the question, what is the biggest challenge in management for multinationals in China? Identifies the answer as the “iron rice bowl” mindset of local employees. Suggests work has been done to understand the unique danwei system from which this mindset was formed but little attention has been given to the way the danwei system shaped people’s behaviour pattern in the workplace. Describes life at the danwei, the most important aspect of the socialization process most Chinese employees had gone through before they joined multinational companies in China and explains why their behaviour pattern formed in that process conflicts with that of the expatriates and how it affects their job performance.
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