Management in China Secondary research
Management occurs in all levels of the organization, from the top management to executives. Different terms define management as it can act as an economic resource, as a system of authority, and as a process, among other factors. Management can be defined as the process of planning, organizing, leading, and controlling each resource of the company. It is both science and art, as many theories arise from such perception. Management has concepts that they employ in their functions, but they are not fixed. The concepts of management changes with time and circumstances. The concepts of management can be applied in integration and authority. Different authors have their concept of management, and in this paper, we will evaluate the fundamental concepts of management. A concise description of each fundamental management function will help in comprehensively explain the concepts of management. Also, it will discuss the preliminary analysis of management and how they apply to the specific context of governance in China.
General concepts of management and its application
It is the first step of management functions, and it involves what has to be done, how, when, and whom. The function also consists of the identification of alternatives and choosing one of them. Fayol (2016) states that “it is the plan of action to be followed, the stages to go through and methods to use. It is kind of future picture wherein proximate events are outlined with some distinctness whist remote events appear progressively less distinct”. The function exploits one of the fundamental concepts of management, for instance, functional concept. Planning is an essential element of the organization as it helps in attaining their goals and objectives. The rapid changes in the business world, together with globalization, necessitate the managers to keep their plans as current as possible. In essence, it exploits the concept that “Management is what a manager does” (Allen, 1973). As a manager, he or she is responsible for applying the necessary planning process at the highest levels of the organization.
The top managers determine the long-run direction and performance of the company as they ensure careful formulation and strategies. For instance, the principal mission of Adidas is to be the best sports brand, and its slogan in the China branch is “Impossible is Nothing.” They have achieved their crucial mission, but the company exists in a region of intense competition. The managers have the responsibility of making sure that it remains significant in China with up and rising competition from other key players in the industry. In their managerial functions in the company, it is crucial to understand that the success of a manager in China is determined by his ability to build good relationships with critical institutions and the government (King and Zhang, 2010). In China, it is believed that management can be effective if it did in collaboration. Understanding the ruling party’s goal, the underlying power structure in every city or province, and agency organization charts are one of the priorities for smart business leaders in China. The secret is for the business leader to understand which government officials to approach and, most importantly, the official’s interests. This helps them to work mutually with the officials. Forging personal relationships with party bigwigs is considered by most business executives as a way of accessing markets, managing tax obligations, and managing operational costs. The most successful companies have been in existence for a very long time, meaning that they do understand the concept of good relationships during their planning process.
Haimann (1962) defines organizing as “the process of defining and grouping the activities of the enterprise and establishing the authority relationship among them.” The management is responsible for organizing each aspect of the company. It also identifies two key accepts, for instance, organizing as a process and organizing as a structure. According to the definition, organizing is considered a process in that it is not a function that can be done at ones, but it follows a chain of various features. Organizing has some correlation to human beings and human conducts as they are affected by work conditions, competence, and capability. Organizing as a process is a dynamic process as it changes with both the external and internal environment. According to the concept, management is an art that is employed to increase productivity. Most of the economist treat management as a factor of production in that it is like land, capital, labor, and enterprise.
China, as a country, is considered to be a developing nation (Zhu, 2017). This means that it is characterized by unique local business customers and traditions, nan-name brands, undercapitalized companies, and inexperienced customers. This implies that products have to reflect local needs. In China, premiums are paid for cement the dries up quickly in construction companies (Zhu, 2017). This is because the economy is designed to operate seven times a week and sometimes can be poured in freezing temperatures. For cement that lasts for more than 50 years, premiums are not paid. The same scenarios are experienced in retail businesses. The retail chain does not pay for long-lasting fixtures, but pay if the chains are remodeled every six months. Durability is not a priority for most managers in this kind of business. The key concept is that the country is productive, and the company has to reflect such standards in its operation.
The success of a manager in China is determined by his ability to build good relationships with critical institutions and the government (King and Zhang, 2010). In China, it is believed that management can be effective if it did in collaboration. Understanding the ruling party’s goal, the underlying power structure in every city or province, and agency organization charts are one of the priorities for smart business leaders in China. The secret is for the business leader to understand which government officials to approach and, most importantly, the official’s interests. This helps them to work mutually with the officials. Forging a personal relationship with party bigwigs is considered by most business executives as a way of accessing markets, managing tax obligations, and managing operational costs.
Controlling is the process of evaluating and ongoing regulation activities to ensure that goals are achieved. It deals with the measure of performance and the corrective actions taken to ensure that all the organizational goals are established. The managers initiate the control functions during the planning phase of the process. Aspects of control are seen in close supervision and tight leadership structure. The managers seek to motivate workers to conform, which limits their control that should be imposed.
Organizing as a structure of relationships is another concept, and it details that various posts are created to established to develop mutual relationships between employees, their authorities, and responsibilities. It defines who is superior over the other. In essence, the concepts identify that “Management is the art of getting things done through others” (Allen, 2015). The perception is very narrow and traditional as the workers are treated as factors of production while the managers can take work from other workers as they are superior.
The most excellent business leaders in China makes decisions in an ad hoc manner (Busch et al., 2013). The leaders also agree to be micromanaged. Employees with entrepreneurial acumen are the most sought by business enterprises. These are employees who thrive in a rough-and-tumble environment. They are not always top-class candidates with vast connections to state enterprises but can create and innovate. The problem is that this kind of employee is hard to settle with one company. This explains why a private company’s turnover has been on the rise every year (King and Zhang, 2010). This has left most private companies to invest less in training, feedback, and coaching.
The last fundamental function is leading, which is influencing people so that they will be able to contribute to the organization and attain the goal of the group. According to the function, management is an art and a science as it helps in decision making and defines leadership skills. For a company to achieve its objectives, it must make quality decisions. Also, a company can increase its production and productivity through effective leadership. It provides coordination, efficiency, and continuity.
The business leaders in China are known to be autocratic in their management style (Ching, 2013). Decentralization is only done to help the company in responding to market shifts and adding a new line of business. Adaptation is central to the survival of private corporations in China. The business leaders build nearly autonomous structures because of the difference in the market and power change in each province (Ching, 2013). The Adidas Company, for example, is one of the companies considered to have applied the decentralization principles. The company manufactures a range of products, and each line of a product is operated as an independent business (Busch et al., 2013). Adidas does employ organizing as a process and also as a structure to maintaining close relations with the citizens of the country as they value relationships more than any other business aspect.
Also, human resource management in China is culturally embedded (Busch et al., 2013). The leaders consider employees as family members of their organization. The only difference between the regular family members is that much is expected from the employees in terms of performance. The Chinese renowned chief executive officers are known to have come from humble backgrounds. Most of the executives in China are either teachers, small traders, or clerks (King and Zhang, 2010). For these managers to remain at the top of the game in terms of business, they invest in the unrelated business, form new business alliances, and continuously create new products. They are comfortable with the heady pace and expect to sustain high rates of growth.
The context of Chinese business is all about adaptation. Successful management systems are those that originate from humble backgrounds. The management in China is local and vertical. Maturation of management systems in Chinese depends on how the concept of liberalization will be incorporated in the economy, and this will take some time for the Chinese to adopt fully to western management systems.