China - Africa culture differences in business relations

Explain the business & cultural relationship between the China & Africa

China's fast development has changed its association with Africa. Industrialization has
supported China's import interest for oil and minerals (that is, press metal, bauxite,
nickel, copper), which Africa can fulfill. China is currently Africa's second biggest
exchanging accomplice after U.S; two-sided exchange with Africa came to $114 billion of
every 2008, from $65.9 billion out of 2007. The legislature's "going worldwide
arrangement", which urged Chinese organizations to end up multi-nationals, has upheld
an ascent in China's Foreign Direct Investment (FDI) in Africa to $5.4 billion out of 2009,
up from an irrelevant sum only 10 years back. The present China-Africa relationship
could be portrayed as "products for-framework", in spite of the fact that a move to more
extensive collaboration on advancement is currently clear. In demonstrate hatred for
Africa – China relationship, there has all the earmarks of being society related contrasts
which should be considered for more prominent common comprehension.

The globalization of the world economy, on one hand, has made colossal open doors for
worldwide collaboration among various nations (Levitt, 1983); then again, nonetheless,
it has likewise made a novel arrangement of issues and issues identifying with the
powerful overseas organizations with various societies. It can likewise be watched that
a large portion of the disappointments looked by cross-national organizations are
caused by disregard of social contrasts.

With the expanding significance of the China advertise on the planet economy,
numerous specialists hurried into China to investigate business openings. It was
accounted for that the considerable boundaries caused by social contrasts like trouble
of correspondence, higher potential exchange costs, distinctive targets and methods for
participation and working strategies have prompted the disappointment of numerous
Sino-outside collaboration ventures. Here are a few issues "on the most proficient
method to comprehend China" and "how to settle business" with Chinese individuals.

Page 1 of 10
Vulnerability shirking catches how much people in a culture feel undermined by
questionable, indeterminate, or new circumstances. Societies are portrayed as either
high or low on vulnerability shirking (Prime, 1994). While low vulnerability evasion
societies lean toward positive reaction to change and new opportunities, high
vulnerability shirking societies incline toward structure and steady normal.

Last, Africa has a transient introduction while China has a long haul introduction. It
must be specified here that Chinese begins to design today for whatever they need in
fifty years ahead. Likewise called "Confucian dynamism", this last measurement surveys
a general public's ability for tolerance and postponed delight. Long haul situated
societies (China and Hong Kong) tend to spare more cash and show more persistence in
harvesting the aftereffects of their activities.

How the cultural difference impact on business relationship of different country?

Multinational and cross-cultural teams are likewise becoming ever more common,
meaning businesses can benefit from an increasingly diverse knowledge base and new,
insightful approaches to business problems. However, along with the benefits of insight
and expertise, global organizations also face potential stumbling blocks when it comes
to culture and international business.

While there are a number of ways to define culture, put simply it is a set of common and
accepted norms shared by a society. But in an international business context, what is
common and accepted for a professional from one country could be very different for a
colleague from overseas. Recognizing and understanding how culture
affects international business in three core areas: communication, etiquette, and
organizational hierarchy can help you to avoid misunderstandings with colleagues and
clients from abroad and excel in a globalized business environment.

 Communication

Effective communication is essential to the success of any business venture, but it is

particularly critical when there is a real risk of your message getting “lost in
translation.” In many international companies, English is the de facto language of
business. But more than just the language you speak, it’s how you convey your message
that’s important. For instance, while the Finns may value directness and brevity,
professionals from India can be more indirect and nuanced in their communication.
Moreover, while fluent English might give you a professional boost
globally, understanding the importance of subtle non-verbal communication between
cultures can be equally crucial in international business.

Page 2 of 10
What might be commonplace in your culture — be it a firm handshake, making direct
eye contact, or kiss on the cheek — could be unusual or even offensive to a foreign
colleague or client. Where possible, do your research in advance of professional
interactions with individuals from a different culture. Remember to be perceptive to
body language, and when in doubt, ask. While navigating cross-cultural communication
can be a challenge, approaching cultural differences with sensitivity, openness, and
curiosity can help to put everyone at ease.

 Workplace etiquette

Different approaches to professional communication are just one of the

innumerable differences in workplace norms from around the world. CT Business
Travel has put together a useful info graphic for a quick reference of cultural differences
in business etiquette globally.

For instance, the formality of address is a big consideration when dealing with
colleagues and business partners from different countries. Do they prefer titles and
surnames or are being on the first-name basis acceptable? While it can vary across
organizations, Asian countries such as South Korea, China, and Singapore tend to use
formal “Mr./Ms. Surname,” while Americans and Canadians tend to use first names.
When in doubt, erring on the side of formality is generally safest.

The concept of punctuality can also differ between cultures in an international business
environment. Different ideas of what constitutes being “on time” can often lead to
misunderstandings or negative cultural perceptions. For example, where an American
may arrive at a meeting a few minutes early, an Italian or Mexican colleague may arrive
several minutes — or more — after the scheduled start-time (and still be considered
“on time”).

Along with differences in etiquette, come differences in attitude, particularly towards

things like workplace confrontation, rules and regulations, and assumed working hours.
While some may consider working long hours a sign of commitment and achievement,
others may consider these extra hours a demonstration of a lack of efficiency or the de-
prioritization of essential family or personal time.

 Organizational hierarchy

Organizational hierarchy and attitudes towards management roles can also vary widely
between cultures. Whether or not those in junior or middle-management positions feel
comfortable speaking up in meetings, questioning senior decisions, or expressing a
differing opinion can be dictated by cultural norms. Often these attitudes can be a
reflection of a country’s societal values or level of social equality. For instance, a country
such as Japan, which traditionally values social hierarchy, relative status, and respect for
seniority, brings this approach into the workplace. This hierarchy helps to define roles

Page 3 of 10
and responsibilities across the organization. This also means that those in senior
management positions command respect and expect a certain level of formality and
deference from junior team members.

However, Scandinavian countries, such as Norway, which emphasize societal equality,

tend to have a comparatively flat organizational hierarchy. In turn, this can mean
relatively informal communication and an emphasis on cooperation across the
organization. When defining roles in multinational teams with diverse attitudes and
expectations of organizational hierarchy, it can be easy to see why these cultural
differences can present a challenge.

As part of our mission to become the world’s most relevant business school, Hult is
dedicated to preparing our students for the challenges and opportunities of working
across borders and cultures. A big part of this preparation is to understand the role
culture plays in international business. In many ways, the Hult classroom mirrors
today’s business environment, with students of 130 nationalities collaborating and
studying together. And not only are our students multicultural, our faculty is too. Many
have lived, worked, and taught across Europe, Asia, the Middle East, and beyond.

Outside of the classroom, Hult students have the opportunity to experience life, culture,
and commerce in today’s most dynamic business centers through our global campus
rotation program. This international learning environment offers a truly global
perspective and unique insight into culture and business practices from all over the
world.

Define the cultural difference between China & Africa with reference to Hofstede
Model

Page 4 of 10
 CHINA
 POWER DISTANCE

This dimension deals with the fact that all individuals in societies are not equal, it
expresses the attitude of the culture towards these inequalities amongst us. Power
Distance is defined as the extent to which the less powerful members of institutions and
organizations within a country expect and accept that power is distributed unequally.

At 80 China sits in the higher rankings of PDI – i.e. a society that believes that
inequalities amongst people are acceptable. The subordinate-superior relationship
tends to be polarized and there is no defense against power abuse by superiors.
Individuals are influenced by formal authority and sanctions and are in general
optimistic about people’s capacity for leadership and initiative. People should not have
aspirations beyond their rank.

 INDIVIDUALISM

The fundamental issue addressed by this dimension is the degree of interdependence a

society maintains among its members. It has to do with whether people´s self-image is
defined in terms of “I” or “We”. In Individualist societies people are supposed to look
after themselves and their direct family only. In collectivist society’s people belong to ‘in
groups’ that take care of them in exchange for loyalty.

At a score of 20 China is a highly collectivist culture where people act in the interests of
the group and not necessarily of themselves. In-group considerations affect hiring and
promotions with closer in-groups (such as family) are getting preferential treatment.
Employee commitment to the organization (but not necessarily to the people in the
organization) is low. Whereas relationships with colleagues are cooperative for in-
groups they are cold or even hostile to out-groups. Personal relationships prevail over
task and company.

 MASCULINITY

A high score (Masculine) on this dimension indicates that the society will be driven by
competition, achievement and success, with success being defined by the winner / best
in field – a value system that starts in school and continues throughout organizational
life.

Page 5 of 10
A low score (feminine) on the dimension means that the dominant values in society are
caring for others and quality of life. A Feminine society is one where quality of life is the
sign of success and standing out from the crowd is not admirable. The fundamental
issue here is what motivates people, wanting to be the best (masculine) or liking what
you do (feminine).

At 66 China is a masculine society –success oriented and driven. The need to ensure
success can be exemplified by the fact that many Chinese will sacrifice family and
leisure priorities to work. Service people (such as hairdressers) will provide services
until very late at night. Leisure time is not so important. The migrated farmer workers
will leave their families behind in faraway places in order to obtain better work and pay
in the cities. Another example is that Chinese students care very much about their exam
scores and ranking as this is the main criteria to achieve success or not.

 UNCERTAINTY AVOIDANCE

The dimension Uncertainty Avoidance has to do with the way that a society deals with
the fact that the future can never be known: should we try to control the future or just
let it happen? This ambiguity brings with it anxiety and different cultures have learnt to
deal with this anxiety in different ways. The extent to which the members of a culture
feel threatened by ambiguous or unknown situations and have created beliefs and
institutions that try to avoid these is reflected in the score on Uncertainty Avoidance.

At 30 China has a low score on Uncertainty Avoidance. Truth may be relative though in
the immediate social circles there is concern for Truth with a capital T and rules (but
not necessarily laws) abound. None the less, adherence to laws and rules may be flexible
to suit the actual situation and pragmatism is a fact of life. The Chinese are comfortable
with ambiguity; the Chinese language is full of ambiguous meanings that can be difficult
for Western people to follow. Chinese are adaptable and entrepreneurial. At the time of
writing the majority (70% -80%) of Chinese businesses tend to be small to medium
sized and family owned.

 LONG TERM ORIENTATION

This dimension describes how every society has to maintain some links with its own
past while dealing with the challenges of the present and future, and societies prioritize
these two existential goals differently. Normative societies which score low on this
dimension, for example prefer to maintain time honored traditions and norms while
viewing societal change with suspicion. Those with a culture which scores high, on the
other hand, take a more pragmatic approach: they encourage thrift and efforts in
modern education as a way to prepare for the future.

Page 6 of 10
China scores 87 in this dimension, which means that it is a very pragmatic culture. In
societies with a pragmatic orientation, people believe that truth depends very much on
situation, context and time. They show an ability to adapt traditions easily to changed
conditions, a strong propensity to save and invest thriftiness, and perseverance in
achieving results.

 INDULGENCE

One challenge that confronts humanity, now and in the past, is the degree to which
small children are socialized. Without socialization we do not become “human”. This
dimension is defined as the extent to which people try to control their desires and
impulses, based on the way they were raised. Relatively weak control is called
“Indulgence” and relatively strong control is called “Restraint”. Cultures can, therefore,
be described as Indulgent or Restrained.

China is a restrained society as can be seen in its low score of 24 in this dimension.
Societies with a low score in this dimension have a tendency to cynicism and pessimism.
Also, in contrast to Indulgent societies, restrained societies do not put much emphasis
on leisure time and control the gratification of their desires. People with this orientation
have the perception that their actions are restrained by social norms and feel that
indulging themselves is somewhat wrong.

AFRICA
 POWER DISTANCE

This dimension deals with the fact that all individuals in societies are not equal, it
expresses the attitude of the culture towards these inequalities amongst us. Power
Distance is defined as the extent to which the less powerful members of institutions and
organizations within a country expect and accept that power is distributed unequally.

South Africa scores 49 on this dimension which means that people to a larger extent
accept a hierarchical order in which everybody has a place and which needs no further
justification. Hierarchy in an organization is seen as reflecting inherent inequalities,
centralization is popular, subordinates expect to be told what to do and the ideal boss is
a benevolent autocrat.

Page 7 of 10
  INDIVIDUALISM

The fundamental issue addressed by this dimension is the degree of interdependence a

society maintains among its members. It has to do with whether people´s self-image is
defined in terms of “I” or “We”. In Individualist societies people are supposed to look
after themselves and their direct family only. In Collectivist society’s people belong to
‘in groups’ that take care of them in exchange for loyalty.

South Africa, with a score of 65 is an Individualist society. This means there is a high
preference for a loosely-knit social framework in which individuals are expected to take
care of themselves and their immediate families only. In Individualist societies offence
causes guilt and a loss of self-esteem, the employer/employee relationship is a contract
based on mutual advantage, hiring and promotion decisions are supposed to be based
on merit only, management is the management of individuals.

 MASCULINITY

A high score (masculine) on this dimension indicates that the society will be driven by
competition, achievement and success, with success being defined by the winner/best
in field – a value system that starts in school and continues throughout organizational
life.

A low score (feminine) on the dimension means that the dominant values in society are
caring for others and quality of life. A Feminine society is one where quality of life is the
sign of success and standing out from the crowd is not admirable. The fundamental
issue here is what motivates people, wanting to be the best (masculine) or liking what
you do (feminine).

South Africa scores 63 on this dimension and is thus a Masculine society. In Masculine
countries people “live in order to work”, managers are expected to be decisive and
assertive, the emphasis is on equity, competition and performance and conflicts are
resolved by fighting them out.

 UNCERTAINTY AVOIDANCE

The dimension Uncertainty Avoidance has to do with the way that a society deals with
the fact that the future can never be known: should we try to control the future or just
let it happen? This ambiguity brings with it anxiety and different cultures have learnt to
deal with this anxiety in different ways. The extent to which the members of a culture
feel threatened by ambiguous or unknown situations and have created beliefs and
institutions that try to avoid these is reflected in the score on Uncertainty Avoidance.

Page 8 of 10
South Africa scores 49 on this dimension and thus has a low preference for avoiding
uncertainty. Low UAI societies maintain a more relaxed attitude in which practice
counts more than principles and deviance from the norm is more easily tolerated. In
societies exhibiting low UAI, people believe there should be no more rules than are
necessary and if they are ambiguous or do not work they should be abandoned or
changed. Schedules are flexible, hard work is undertaken when necessary but not for its
own sake, precision and punctuality do not come naturally, innovation is not seen as
threatening.

 LONG TERM ORIENTATION

This dimension describes how every society has to maintain some links with its own
past while dealing with the challenges of the present and future, and societies prioritize
these two existential goals differently. Normative societies, which score low on this
dimension, for example, prefer to maintain time-honored traditions and norms while
viewing societal change with suspicion. Those with a culture which scores high, on the
other hand, take a more pragmatic approach: they encourage thrift and efforts in
modern education as a way to prepare for the future.

A low score of 34 on this dimension means that in South Africa the culture is more
normative than pragmatic. People in such societies have a strong concern with
establishing the absolute Truth; they are normative in their thinking. They exhibit great
respect for traditions, a relatively small propensity to save for the future, and a focus on
achieving quick results.

 INDULGENCE

One challenge that confronts humanity, now and in the past, is the degree to which
small children are socialized. Without socialization we do not become “human”. This
dimension is defined as the extent to which people try to control their desires and
impulses, based on the way they were raised. Relatively weak control is called
“Indulgence” and relatively strong control is called “Restraint”. Cultures can, therefore,
be described as Indulgent or Restrained.

With a high score of 63 it is clear that South Africa has a culture of Indulgence. People in
societies classified by a high score in Indulgence generally exhibit a willingness to
realize their impulses and desires with regard to enjoying life and having fun. They
possess a positive attitude and have a tendency towards optimism. In addition, they
place a higher degree of importance on leisure time, act as they please and spend money
as they wish.

Page 9 of 10
Why it is important to understand culture of other country. Justify with the example of
China & Africa’s business relationship.

Accordingly, understanding different societies is more important than any time in

recent memory. In the event that we consider that individuals from the same monetary,
political, and social foundation have issues conveying successfully; we can value the
troubles and difficulties that individuals from assorted societies confront when
endeavoring to impart. Misunderstandings will dependably be a piece of social
perspectives. The goal of this subject is pretty much to limit misconceptions through an
attention to the needs and desires of business accomplices.

In this time of Globalization, examination of social components and the unpretentious

manners by which culture affects business practices and examples of market conduct
should order expanded consideration from specialists. (Adler 1991) Companies need to
think outside the proverbial box while defining their business techniques and while
teaming up and shaping business associations. As once in a while organizations move to
work together in different nations, a more prominent affectability to culture will be
required and a comprehension of social substances ought to encourage business
exchanges.

Knowing another culture is an honest to goodness worry of organizations. More than

that, it is basic. The individuals who attempt to comprehend another culture pick up
know-edge about how to act in that culture. Something else, in the event that you realize
what individuals esteem and comprehend their mentalities, you won't accidentally
accomplish something that outrages and decreases your odds for business achievement.
This was the reason Shanahan says, "Not everything African is awful. Give us a chance to
comprehend Africans and perceive how to change over them" (Kalu, 1980). In the
present worldwide businesses' specific situation, the champs are not the individuals
who think about the business sectors they manage regardless of whether it's vital, yet
the individuals who contemplate individuals they manage.

Page 10 of 10