Professional Documents
Culture Documents
100134260
5HR503 Managing the Global
Workforce (2013/2014)
Michelin in China Case Study
Assignment
Tutor Kevin Watson
Word count 2200
Outline the difficulties identified by the Human Resources
Director of Michelin China concerning the integration of the
Michelin Personnel Management Philosophy in the new company.
What actions could Michelin have considered to address these
difficulties? Ensure that you justify your suggestions
Contents
Introduction and background......................................................................3
Difficulties faced by HRM Michelin China....................................................4
Culture......................................................................................................4
Power distance......................................................................................4
Uncertainty avoidance..........................................................................4
Communication........................................................................................5
The concept of face...............................................................................6
Guanxi...................................................................................................6
Recommendation........................................................................................7
Culture......................................................................................................7
Communication........................................................................................7
Conclusion...................................................................................................8
References...................................................................................................9
Respect
Respect
Respect
Respect
Respect
for
for
for
for
for
customers
people
shareholders
the environment
facts
Communication
Communication is a key part in any business in any country,
communication is different in some ways in China. Communication is not
just about oral language but body and facial expressions, different actions
can be perceived in different ways (Hall, E. 1959). Chinese language and
communication is based on confusion era values that date back over
2500, this brings about many barriers to communication. These values
are;
Moral cultivation
Importance of interpersonal relations
Family and group orientation
Ethnographic bonding
Respect for age and hierarchy
Conflict avoidance and harmony
The concept of face (Nadu, T. 2011)
expatriate manager was direct and instantaneous with his feedback and
because this is not normal behaviour other staff members were offended,
this in turn will have a knock on effect of the staff treating the manager
differently even though the expatriate didnt know his actions caused
offence.
Guanxi
Another social concept that is emphasised in the business environment in
China Guanxi, this is a mutual understanding between two or more
people, in essence it is give and take within certain relationships.
Research shows one rule to Guanxi which is those who dont return the
favour gets kicked out of the Guanxi network. This further emphasises
strong links with the national staff that Michelin inherited as they could
have made business easier for them if they were involved more.
Recommendation
Culture
Ruano-Borbalan (2002) identifies four categories of value systems within
different societies, China being more traditional and France being more
rational.
For Michelin to be more successful at the start of their venture, and to
have taken less time in the implementation of their management
philosophy and corporate values they should have understood that
Chinese values are deep rooted within society and are independent to
western influences and values.
To do this they could have amended their philosophy to better suit the
working environment in China, for example emphasising a collective work
force and training and not trying to force individualism (Price, R. 2008).
The emphasis should have been on national sales, targets or something
that the national workers can focus on to get results, research shows
Shanghai Tyre was successful before they were brought out so the
emphasis should have been on getting more market share with the help
Michelins better technology.
As Chinas high power distance can lead to unequal opportunities based on
assumptions and bias Michelin could have used this acquisition to their
advantage and put competent people within the management structure.
As China have a high power distance score, it would have been beneficial
to Michelin to use currently trusted managers such as Mr Fang Xuan who
has wide spread influence within the organisation and local government
and is seen more as a leader. Michelin could have used this to their
advantage as part of their integration process.
They could have made him the point of contact for national staff for their
career management. Also because of the lack of respect and confusion for
personnel management it should have been placed within the hierarchy of
the business so there is no confusion to as who has priority over staff
(THELINK, 2005).
The workers would have seen one of their own leading the charge and
would have gone along with it as he is in trusted position, they could have
used the national managers better, they could have put them on the front
line as they are already used to doing business in china.
Michelin could have also put in a monochromic time system that was
distinguished by Hall and Hall (1990) to help with the uncertainty
avoidance within Chinese business culture. This time system uses the high
power distance to its advantage by distributing detailed information,
making schedules and linear tasks and using strict deadlines.
Communication
As states previously the national managers where neglected and in one
case there was a misunderstanding, Michelin should train the new
managers to understand how communication works and to affect positive
change without offending anyone. Another issued was with the one to one
career management interviews, to solve this problem they could have had
the workers write down how they developed and review this in the
meeting making it less uncomfortable. They could have trained their
managers better in cross cultural management or hired a professional like
Nancy J Adler who has worked with private companies with cultural
integration matters in China and France before.
Conclusion
This report has summarised the problems faced by Michelin when trying to
implement western management philosophies onto a Chinese national
work force.
Also it has identified some strategic decisions that Michelin made such as
neglecting the national managers and the negative aspects of that.
Recommendations have been made concerning a better integration
process for Michelin. In summery the problem that Michelin faced where
due to a strong Chinese culture which has an emphasis on respect for
authority, social harmony and conflict avoidance among other things.
Michelin also had realised that it would be too difficult to change the
deeply engrained cultural values as at the end of the case study it says
the process was about the Michelin or China, it was about establishing the
Michelin china way.
References
Archer, J. (2008). Is Your Companies Power Structure Killing Your Designs.
Available: http://forty.co/is-your-companys-power-structure-killing-yourdesigns. Last accessed 19th March 2014.
Daniel, R (1990). Corporate culture and organizational effectiveness.
Wiley series on organizational assessment and change.. Oxford : John
Wiley & Sons. 267
Dictionary, B. (1999). Organizational Culture. Available:
http://www.businessdictionary.com/definition/organizational-culture.html.
Last accessed 19th March 2014.
Essential, K. (2013). China - Language, Culture, Customs and Etiquette .
Available: http://www.kwintessential.co.uk/resources/globaletiquette/china-country-profile.html. Last accessed 8th April 2014
Hall, E (1959). T h e S i l e n t L a n g u a g e. New York: D o u b l e d a y &
C o m p a n y. 55
Hofstede, G. (1980). National Cultural Dimentions . Available: http://geerthofstede.com/dimensions.html. Last accessed 19 March 2014.
Nandu, T. (2011). A Paradigm that can be Emulated by Growing Economies
. A Study on Chinese Management Style. 1 (3), 124-12
Kim, J. (2012). Power Distance and Uncertainty Avoidance in China.
Available: http://jasonkim29.wordpress.com/2012/10/09/power-distanceand-uncertainty-avoidance-in-china-2/. Last accessed 1st April 2014
Michelin Corporate . (2010). stratagy . Available:
http://www.michelin.com/corporate/group/performance-responsibility?
l=en. Last accessed 11/03/2014.
Reil, B. (2009). The Cultural Context In China. Available:
http://www.international-mobility.com/uk/interculturel/china.php. Last
accessed 8th April 2014.
THELINK. (2005). Michelin China. Available:
http://www.ceibs.edu/link/latest/images/20051012/1736.pdf. Last accessed
11/03/2014.
Zhaolin, Z. (2005). When Tendancy Is Clear, Changes Must Be Made.
Available: http://www.ceibs.edu/link/latest/images/20051012/1739.pdf.
Last accessed 11/03/2014.