Executive Summary
The purpose of this report was to provide Arthur Chawell with sufficient information about the etiquettes and cross cultural miscommunication that he may face during his business venture into Shanghai, China. In the first section of the report, shows the current etiquettes of Chinese people. Etiquettes such as the language they speak, which is Mandarin, how they greet others, for example a simple bow, what types of gifts are to be presented, and how they are presented or received, and the dress code preferences while meeting with Chinese people. All these etiquettes that are presented in the first section is very important for Arthur Chawell, in engaging a successful business relationship with Mrs Chang. In the second section of the report shows the potential areas of cross cultural miscommunication. The potential areas shown are in the form of hierarchy and behaviour. It is stated that the distribution of power in China exists, and Chinese people have a very strict hierarchical system and emphasizes on rank. As for behaviour wise, Chinese people are more collectivism oriented and emphasizes more on group goals and needs, as Australian people are more individualistic. Several recommendations were made namely that Arthur Chawell is sure to use the appropriate language and dialects while conversing, made sure that the words that he has used does not offend the Chinese people. The appropriate gifts and how to present and receive them. Dress formal and avoiding colours that are inappropriate, and avoid wearing overly expensive jewelleries. Always remember to respect those seniors as they are sensitive towards their rank. And to be more humble and group oriented. In conclusion it may be difficult for Arthur Chawell as every countries culture differs from one another, and Arthur Chawell would have to gain more knowledge and understanding of the Chinese culture in order to maintain good business relationship.
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Table Of Contents Page No.
Introduction 1
1.0 Etiquettes
1.1 Language 1
1.2 Greetings 1
1.3 Gifts 2
1.4 Dress 2
2.0 Potential Area Of Cross Cultural Miscommunication 2
2.1 Hierarchy 3
2.2 Behaviour 3
3.0 Conclusion 4
4.0 Recommendation 4
5.0 Refferencing 6
Introduction
Arthur Chalwell a thirty year old Australian of Anglo Saxon heritage, has authorised this report in preparation of investing in Shanghai, China. Arthur Chalwell has decided to invest in a Chinese business venture. He hopes to invest in Shanghai and is meeting Mrs Chang Lai Leng, and it is important that Arthur Chalwell makes a favourable first impression, and steps Arthur Chalwell can take are covered throughout the report and the recommendations section. This report aims to prepare Arthur Chalwell to conduct business with the Chinese by covering important business etiquette and potential areas of cross-cultural miscommunication.
1.0 Etiquettes
1.1 Language
Mandarin is the official language of China. Mandarin, Cantonese, Xiang, Min, Hakka are other languages spoken on a regular basis in China. (The most commonly spoken languages in China 2005)
1.2 Greetings
When meeting for the first time, a handshake is the most common greeting. But even a handshake can be a different experience in China. First of all it may be held for a longer time than Americans are used to and sometimes it may be in a flimsy manner. In order to show special respect, such as to elderly people or government officials, a slight bow might be given. (Customs and Greetings 2009)
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1.3 Gifts
Use both hands while giving or receiving a gift .The most acceptable gift is a banquet. Quality writing pens are also favoured gifts .The following gifts and/or colours are associated with death and should not be given. Clocks, straw sandals, a stork or crane, handkerchiefs, and anything white, blue or black. (China 2008)
1.4 Dress
Dress styles are changing quickly in today’s China. Most City Chinese will wear a western style suit and tie for a business and even less formal meeting. It is best for foreigners to dress formally. Women should avoid low necklines and hemlines that rise above the knee. Jewellery will be noticed; modest gold jewellery and a quality watch and shoes will count in your favour. However, avoid overly expensive jewellery or showy ornaments. (Michael Hanna. 2007).
2.0 Potential Area Of Cross Cultural Miscommunication
Among the various intercultural dimensions, the three seen as relevant to negotiating with Chinese because of their emphasis on communication styles are Hall’s high- and low-context cultures and Hofstede’s power distance and individualism and collectivism since China started its economic opening-up in 1978 (Hall, 1976; Hofstede, 1991).
In addition, Confucianism is also discussed for obvious reasons of dealing with the Chinese culture. These cultural dimensions are seen as relevant to the negotiation processes. For example, if a culture has different expectations about the negotiation processes, members of this culture may have a clash as to where the first process ends and where the second process starts. (Yunxia et al. 2007).
2.1 Hierarchy
Power distance is “the extent to which the less powerful members of institutions and organisations accept that power is distributed unequally” (Hofstede and Bond 1984, p. 419).
Different cultures have different attitudes to hierarchy and the distribution of power. For example, “The Chinese have a strict hierarchical system and place emphasis on rank” (Sabath 1999, p. 38), whereas Australians and Americans tend to pay less attention to social ranking.
2.2 Behaviour
Hofstede (1991) also divides cultures based on the dimension of individualism and collectivism. Leung (1987, p. 899) further explicates collectivism as “the tendency to be more concerned about the consequences of one’s behaviour for in-group members and to be more willing to sacrifice personal interests for the attainment of collective interests”, whereas individualism refers to “the tendency to be more concerned about the consequences of one’s behaviour for one’s own needs, interests and goals”. According to Hsu (1985), as members of collective culture, Chinese people emphasise group goals and needs, and strive to maintain relational harmony. A meta-analysis by Sama and Papamarcos (2000) also supports the claim that collectivisitic cultures make decisions differently particularly considering such issues as group harmony and in/out-group allegiances. In contrast, members of individualistic culture such as Australians, value individual autonomy and interests, and encourage competition (Hofstede, 1991).
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3.0 Conclusion
Every individual has adapted to a culture. But not all cultures have the same set of values and beliefs, cultures of people from different countries differ from one another. Therefore, it would be a challenge for Arthur Chawell as he is planning a business venture into a different country. Arthur Chawell would have to gain more knowledge and understanding of the Chinese culture in order to maintain good business relationship with his future business partners. The difference between Australia and China’s culture are shown and explain through Hofstede’s model of culture. It is shown that Chinese people are more on group goals and needs, and strive to maintain a relational harmony, whereas Australians value individual autonomy and interests, and encourage competition. Recommendations of steps that Arthur Chawell should proceed with, would be shown in the recommendation section.
4.0 Recommendation
* Language
* Be sure to use the proper language and dialects while conversing
* Be sure to select appropriate word choices as some words may offend them
* Greetings
* Do not give out your hand during a handshake, allow them to give out their hand first to avoid awkward reactions.
* Always remember to respect the seniors and elderly first with a slight bow
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* Gifts
* Always remember to use both hands while receiving or presenting a gift
* Avoid presenting white, blue or black gifts
* Do no present the following gifts such as clocks, straw sandals, stork or a crane, and handkerchiefs
* Dress
* Avoid wearing the colours white, blue and black as these colours resemble funeral or death
* During a business meeting, dress formally and avoid casual wear
* Do not wear overly expensive jewellery or shiny ornaments
* Hierarchy
* Always remember that the Chinese have a strict hierarchical system
* Show sufficient amount of respect towards seniors
* Always remember to greet the seniors first followed by the lower ranked people in the room
* Behaviour
* Be humble at all times, being boastful would only lead to a form of disrespect towards others
* Become more group oriented, as the Chinese are more group orientated
5.0 Reference List
China. 2008. http://www.cyborlink.com/besite/china.htm (accessed May 18, 2009)
Customs & Greetings. 2009. http://www.chinateach.org/index.php/facts-articles/customs-greetings.html (accessed May 18, 2009)
Hall, E.T. 1976. Beyond Culture. Doubleday. New York. NY. http://proquest.umi.com.dbgw.lis.curtin.edu.au/pqdweb?index=4&did=1366209221&SrchMode=2&sid=6&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1240144375&clientId=22212 (accessed May 18, 2009)
Hofstede, G.H. 1991. Cultures and Organisations: Software of the Mind. McGraw-Hill. New York. http://proquest.umi.com.dbgw.lis.curtin.edu.au/pqdweb?index=4&did=1366209221&SrchMode=2&sid=6&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1240144375&clientId=22212 (accessed May 18, 2009)
Hofstede, G. And Bond, M. 1984. “Hofstede’s culture dimensions”. Journal of Cross-Cultural Psychology 15: 417-33. http://proquest.umi.com.dbgw.lis.curtin.edu.au/pqdweb?index=4&did=1366209221&SrchMode=2&sid=6&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1240144375&clientId=22212 (accessed May 18, 2009)
Hsu, F.L.K. 1985. Americans and Chinese: Passage to Differences. University Press Of Hawaii. Honolulu, HI. http://proquest.umi.com.dbgw.lis.curtin.edu.au/pqdweb?index=4&did=1366209221&SrchMode=2&sid=6&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1240144375&clientId=22212 (accessed May 18, 2009)
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Leung, K. 1987. “Some determinants of reactions to procedural models for conflict resolution: a cross-national study”. Journal of Personality and Social Psychology 53: 898-908. http://proquest.umi.com.dbgw.lis.curtin.edu.au/pqdweb?index=4&did=1366209221&SrchMode=2&sid=6&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1240144375&clientId=22212 (accessed May 18, 2009)
Michael Hanna. 2007 .China – Everything you need to know about Chinese culture, etiquette, protocol, visiting, doing business and communicating in or with China. http://www.fengshuiweb.co.uk/advice/chineseetiquette.htm ( accessed May 18, 2009)
Sabath, A.M. 1999. International Business Etiquette. Career Press. Franklin Lakes. http://proquest.umi.com.dbgw.lis.curtin.edu.au/pqdweb?index=4&did=1366209221&SrchMode=2&sid=6&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1240144375&clientId=22212 (accessed May 18, 2009)
Sama, L.M. and Papamarcos, S.D. 2000. “”Hofstede’s I-C dimension as predictive of allocative behaviors: a meta-analysis”. International Journal of Value-based Management 13 (2): 173-88. http://proquest.umi.com.dbgw.lis.curtin.edu.au/pqdweb?index=4&did=1366209221&SrchMode=2&sid=6&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1240144375&clientId=22212 (accessed May 18, 2009)
The most commonly spoken languages in China. 2005. http://www.mongabay.com/indigenous_ethnicities/languages/countries/China.html (accessed May 18, 2009)
Yunxia, Z., M. Bernard and S. Zhu. 2007. Negotiating with Chinese: success of initial meetings is the key. http://proquest.umi.com.dbgw.lis.curtin.edu.au/pqdweb?index=4&did=1366209221&SrchMode=2&sid=6&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1240144375&clientId=22212 ( accessed May 18, 2009)
