Cross-Cultural Management

Paper Summary:

This paper explores the issues of different cultures in business by reviewing the experience of the China Husbandry Group. This company, headquartered in Beijing, opened a subsidiary in the United States. Due to the funding structure of the parent company by the Chinese government, the subsidiary was instructed to run the operation in accordance with the rules established in Beijing. The paper reviews these cultural and business differences which include hiring policy, salary, work conditions and hours. The paper concludes that the solution of creating an entirely new company instead of a subsidiary enabled the manager to meet the challenge of the business model, but as a universal moral solution, it was questionable.

From the Paper:

"To be hired by the China Husbandry Group in China (with the exception of the laboring positions) the prospective executive had to undergo a thorough investigation (including background checks and "attitude checks.") No women were allowed to be hired as executives. No one who did not speak Mandarin was allowed to be hired. No one who expressed contrary political views was allowed to be hired. Needless to say, such policies were contrary to the equal employment laws in the United States (Chen, Chen and Meindl, 1998, 34). This fact was pointed out continuously by the American manager, who was a Beijing citizen who had attended Yale and Harvard."

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