HR Professional - August/September 2008 - (Page 27)

CHINESE BUSINESS ETIQUETTE Doing business in China means learning a whole new business culture. Here’s a brief etiquette guide of what to remember when dealing with Chinese partners. Meeting and Greeting ■ In China, meetings start with shaking hands and a slight nod of the head. Body language should be calm, collected and controlled. Body posture should be formal and attentive to show you are worthy of respect. ■ Business cards are exchanged at the initial meeting. Look carefully at the card presented to you before you put it away. Building Relationships ■ Relationships in China are very formal. Never become too informal and avoid humour—jokes may be lost in translation. ■ Never say no. Instead say, “I’ll look into that.” ■ When doing business in China, establish a contact to act as an intermediary who can act as a reference, be your interpreter and navigate you through the bureaucracy, legal system and local business networks. ■ Do not give expensive personal gifts because it could be interpreted as bribery. If you do present gifts, give them to the entire group after the meeting is concluded but present to the most important person in the group first. Pay attention to gift wrap as the Chinese are sensitive to colour—red is preferred symbolizing luck, while black and white symbolize death. Meetings and Negotiations Illustration: Alana McCarthy/Three in a Box ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ Meetings must be made in advance. ■ Punctuality is vital—late arrivals are seen as an insult. ■ Begin with small talk. If it’s your first meeting, discuss your experiences in China. ■ Prior to meeting, send an agenda. This gives you some control of the meeting. ■ The Chinese approach meetings differently than North Americans. Begin with the core issue and work your way down to minor issues, instead of the reverse. ■ The Chinese are tough negotiators and their primary aim in negotiations is concessions. You must show compromise and ensure their negotiators feel they have gained major concessions. ■ Be patient and never show frustration. ■ Dress conservatively in subdued colour. —with files from Kwintessential Cross Cultural Solutions ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ people moving from rural to urban areas, Chinese organizations face critical shortages of skilled labour and management talent. Turnover is extremely high in most Chinese companies compared to North America. Consequently, recruitment, selection and retention are increasingly important.” Western HR practices are only followed by western companies and only if they’re wholly owned foreign enterprises, says Lothringer. In his experience, western-born HR consultants apply western w w w.H RThought L eader. c om methods, insofar as they can, in advising companies on HR practices, organizational structure and staff selection. Chinese companies and joint ventures, by contrast, are less likely to adopt western HR practices especially since the underlying values may collide with traditional Chinese thought. “With some exceptions, Chinese companies are notorious for cutting corners to save costs, compromising technical standards and exhibiting little regard for their employees’ welfare. The concept of investing in employees, spending on training and development, is seen as an unnecessary cost. For example, the lunches Chinese companies offer employees are very low quality and plant safety is given minimum consideration,” says Lothringer. Chinese employees freely acknowledge the inherently political nature of Chinese companies, Lothringer reports, and it is an ongoing source of frustration and stress for workers. He describes the specific problem of entrenched chauvinism among the Chinese: “Male managers, if they A u g u s t / S e p t e m b e r 2 0 0 8 27 http://www.HRThoughtLeader.com

Table of Contents Feed for the Digital Edition of HR Professional - August/September 2008

HR Professional - August/September 2008 Contents Editor's Letter Contributors Leadership Matters Upfront Legal Compensation Human Capital The New Frontier On Message Strategy HR 101 Interview with Annette Veschuren Talent Management Training Work/Life Balance Off the Shelf The Last Word

HR Professional - August/September 2008

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