A comparison of management styles in China and Germany (PDF)

Seminar paper from the year 2018 in the subject Business economics - Business Management, Corporate Governance, grade: 1,9, University of Cooperative Education Villingen-Schwenningen, language: English, abstract: In the following paper, important factors necessary to excel in international management with a clear focus on China will be discussed, while drawing a comparison to Germany. Throughout the examination, the way of approaching the Chinese market is described. Afterwards, culture is considered with relevant factors like power distance and the leader-follower relationship. Then, values are described with important topics like the decision making processes, meetings and negotiations and conflicts. Afterwards, key factors to success will be mentioned, including personal relationships and the feedback culture. Before drawing a conclusion, challenges likely to occur will be mentioned.

Due to the increasing importance of globalization and the emergence of many competitors, management structures have become dramatically different in China. Behaviors, dynamics and team conformations change rapidly, requiring organizations to react respectively to stay competitive. Managers face the challenge to compromise different cultures within the workplace. Practical management techniques of one country cannot be easily adapted in another. They differ greatly depending on the culture. To what extent the organization benefits from a culturally diverse workforce is controversial.

National values and culture are the biggest obstacle when it comes to achieving management excellence. It requires culture proficiency and responsiveness to meaningful differences in the working environment. But also other factors like the organization's strategy, economic conditions or the labor market of the host country have an influence on how management practices should be applied. Thus, developing the ability to manage in a cross-cultural context is a prerequisite in doing business successfully in today's world.