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The impact of Chinese culture on performance management practices in foreign firms operating in China

For the past decades, China has been undergoing strong economic growth and social transformation in a way it has never experienced before. Against such significant movements in the country, managers of the foreign firms operating in China are increasingly faced with greater challenges of managing the local employees whose mindsets, beliefs, and values are embedded in the local culture that shows the country’s unique characteristics shaped by its historical development in various aspects. Each nation state’s specific cultural environment inevitably creates the parameters within which the systems or practices espoused by a firm should be formulated and carried out in a fashion that they will not upset the stakeholders and, in particular, the local workforce as it comprises the human resources deployed to execute the firms’ strategies and performance plans. Therefore, it is important for foreign firms with presence in China to know whether and how any of the Chinese cultural characteristics may impose any impact on the way their performance management (“PM”) practices should be formulated to ensure that the local employees can perform according to the firms’ expectations and objectives. The aim of this thesis is therefore to explore the knowledge that the author considers as useful for foreign firms to acquire so that they can better plan their PM strategy to pursue more optimal business performance based on a better understanding of the cultural idiosyncrasies in China. The paper considers five research questions that explore the effect of Chinese culture on foreign firms in China. For this study, the author carried out a quantitative survey within nineteen foreign firms in China and a qualitative study of a MNC to assess those firms’ PM system and the response of Chinese employees as to whether there is any impact of Chinese culture on PM in foreign firms which are operating in China.
Date January 2014
CreatorsWong Yuk Sun, Anthony
ContributorsGoodwin, John; O'Connor, Henrietta
PublisherUniversity of Leicester
Source SetsEthos UK
Detected LanguageEnglish
TypeElectronic Thesis or Dissertation

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