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China and the USA: an Analysis of Intercultural Training Methods in the Corporate Environment California State University, San Bernardino CSUSB ScholarWorks Theses Digitization Project John M. Pfau Library 2004 China and the USA: An analysis of intercultural training methods in the corporate environment Paula Kay Krueger Follow this and additional works at: https://scholarworks.lib.csusb.edu/etd-project Part of the Industrial and Organizational Psychology Commons, and the International Business Commons Recommended Citation Krueger, Paula Kay, "China and the USA: An analysis of intercultural training methods in the corporate environment" (2004). Theses Digitization Project. 2563. https://scholarworks.lib.csusb.edu/etd-project/2563 This Project is brought to you for free and open access by the John M. Pfau Library at CSUSB ScholarWorks. It has been accepted for inclusion in Theses Digitization Project by an authorized administrator of CSUSB ScholarWorks. For more information, please contact [email protected]. CHINA AND THE USA: AN ANALYSIS OF INTERCULTURAL TRAINING METHODS IN THE CORPORATE ENVIRONMENT A Project Presented to the Faculty of California State University, San Bernardino In Partial Fulfillment of the Requirements for the Degree Master of Business Administration j by Paula Kay Krueger September 2004 CHINA AND THE USA: AN ANALYSIS OF INTERCULTURAL TRAINING METHODS IN THE CORPORATE ENVIRONMENT A Project Presented to the Faculty of California State University, San Bernardino ■ by Paula Kay Krueger September 2004 Sue Greenfeld Committee Chair Date First Reader f Dr. Pat MeInturff Department Chair ABSTRACT This project presents the cultural significance of establishing and maintaining business relationships with Chinese counterparts. As both national and organizational cultures deeply impact the ways in which business is conducted, it is vital for leaders to learn the nuances of their international clients. Current business dealings are migrating towards China, as China has recently opened its doors to the outside business world and the opportunities for foreign companies are vast in China. Thus, an understanding of Chinese national and business cultures needs to be introduced in American training modules. Current training methods include role playing, simulations games, critical incident reviews, and various methods authored by business leaders. Research materials were obtained from literature and online journals, as well' as personal experiences and knowledge of the Chinese culture. Sample training modules for various corporate entities, based on the findings of the research for this project, are recommended by this author. Such training modules provide the necessary intercultural training for all firms engaged in business iii with China, and are a vital tool in achieving success in that country. This project presents five suggested training models created by the author for intercultural training. These models have been designed for the following audiences: large audiences, small audiences, senior management, mid­ level management, and Americans living in China. The models include methods outlined in the analysis of intercultural training methods found in the research. This project has provided the author with a new understanding of Chinese culture and the influence of its traditional value system on the conduct of business. The importance of cultural competence, coupled with cultural sensitivity, is highly evident in today's global economy and must become an integral training topic for future success. iv ACKNOWLEDGMENTS Embarking on a master's degree seemed an insurmountable feat which I delayed for a number of years With the encouragement of countless people, I was motivated to finish each assignment, each course, and finally this graduate project. I would like to acknowledge the staff and professors of the College of Business and Public Administration and the College of Extended Learning at California State University, San Bernardino for their motivation and support. In particular, Dr. Sue Greenfeld, Associate Dean, College of Business and Public Administration, has offered her guidance throughout this graduate program and has provided me with a solid foundation on which to prepare this project. In addition, Dean Susan Summers, College of Extended Learning, has offered her encouragement and inspiration through her professionalism and dedication to learning. I have had the good fortune to have as my professional and academic mentor Dr. Jacques Benzakein, Associate Dean and Executive Director, International Extension Programs, College of Extended Learning, California State University, San Bernardino. His v eagerness to share his wealth of knowledge, his support (both academically and professionally), and his time have given me the motivation and courage to seek a better understanding of the world around me. For that, I am truly grateful. vi TABLE OF CONTENTS ABSTRACT ....................................... iii ACKNOWLEDGMENTS ........................................... v CHAPTER ONE: INTRODUCTION Purpose of Study. .'. .................... .............. 1 Context of the Problem. ......... ...... ............. 1 Significance of the Project..... ..................... 2 Assumptions................ ."........................ 2 CHAPTER TWO : BACKGROUND . ....... ’........................ 5 Culture................. ........ .................... 6 Chinese Culture............. .................. ........ 9 Globalization.... ...................................... 13 CHAPTER THREE: KEY CULTURAL ELEMENTS INFLUENCING BUSINESS BEHAVIOR Individualism and Collectivism........... .......... 17 Guanxi / Interpersonal Obligations.................... 19 Hierarchies.............. ............................. 21 Gender Issues.................................... ...... 23 Negotiating............. ............................... 24 Decision Making....................................... 27 CHAPTER FOUR: INTERCULTURAL ENCOUNTERS AlSTD IMPLICATIONS Gift Giving .................................. ......... 29 Business Cards ...................... ........... ....... 31 Banquets ............................. ........ ........ 32 vii CHAPTER FIVE: CURRENT TRENDS IN INTERCULTURAL TRAINING A Intercultural Training.......................... ■..... 35 Global Literacy........................................ 3 6 Critical Incidents and Cultural Assimilators......... 38 Role Play and Simulation Games........................ 42 Educating for Intercultural Understanding............ 45 Spreading Multicultural Understanding................ 46 CHAPTER SIX: CONCLUSIONS AND RECOMMENDATIONS Summary................................................. 48 Recommendations........................................ 51 Conclusions............................................. 71 APPENDIX A: PROFESSIONAL TITLES ........................ 76 APPENDIX B: FACTORS BEHIND GLOBALIZATION .............. 79 APPENDIX C: CULTURAL ILLITERACIES ...................... 81 APPENDIX D: CRITICAL INCIDENTS EXAMPLE ................ 83 APPENDIX E: SAMPLE TRAINING MODULE FOR A LARGE AUDIENCE.................................... 90 APPENDIX F: SAMPLE TRAINING MODULE FOR A SMALL AUDIENCE............................... 102 APPENDIX G: SAMPLE TRAINING MODULE FOR SENIOR MANAGEMENT........ ..... .... ............... 124 APPENDIX H: SAMPLE TRAINING MODULE FOR MID-LEVEL MANAGEMENT.................................. 139 APPENDIX I: SAMPLE TRAINING MODULE FOR AMERICANS LIVING IN CHINA............................ 156 REFERENCES................................................ 175 viii CHAPTER ONE INTRODUCTION Purpose of Study- In California alone, skyrocketing costs of doing business (for example, workers' compensation costs and energy costs) are forcing many businesses to move their operations out of state and overseas. With more and more businesses outsourcing manufacturing to China, the need for intercultural business sensitivity, is increasing. This project will focus on the Chinese way of life, globalization, and the necessity for intercultural training methods. Key cultural elements as they relate to the corporate environment will also be reviewed. Additionally, the project will analyze various methods for intercultural training provided for Americans conducting business with international clients. Context of the Problem The new global marketplace has opened up new opportunities for businesses around the world. Yet, it has also created a new element of communication that requires business professionals to step outside of their realm of 1 everyday thinking and into "the real world" of culture: customs, habits, dress, etiquette, language, and beliefs. Significance of the Project As the global marketplace expands, the need for a culturally sensitive workforce also grows. Specifically, each employee who interacts with international clients must be aware of the cultural nuances that affect the relationship. Given that China has experienced continued economic growth since the early 1990's and is entering new world markets, the importance of understanding the Chinese culture is quite significant in today's global market. On the international trade front, many multinational firms are engaged in business with China. To name just a few, Motorola, Boeing, Kodak, and McDonald's are becoming household names in China (Hu & Grove, 1999) . This project will examine the valuable tools for improving intercultural training in the corporate environment. Assumptions The following assumptions were made regarding the proj ect: 2 1. The global economy will continue to support business relationships between the United
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