China vs Germany

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Most countries have their own unique social hierarchies, shaped by the cultures and history of the people. Social hierarchies are the way individuals are classified based on their skill sets, incomes and social standing and are usually passed down for many generations. Because of the factors that shape these hierarchies, it is impossible for a country to change overnight, but it can be done over time. Some countries have very clear structured hierarchy systems with defined rules and roles. Others countries structures are more loosely defined, having little impact on how individuals are treated and don’t restrict potential. Social hierarchies carry over from everyday life and strongly effect how individuals lead, interact and think in a business environment. The countries of Germany and China have drastically different pasts, which have created different social hierarchies, shaping how their businesses are structured and run today. China is a country that has traditionally had a clearly defined social hierarchy. The teachings of Confucius, the famous Chinese philosopher, embodied the Chinese social structure. He thought set roles and rank were vital for a society to function harmoniously. If an individual tried to deviate from their prescribed role, the country’s social order would be threatened. For centuries, China has had a citizenship comprised of 80% to 90% farmers, a small amount of specialized craftsmen, and a few elite families that controlled and drove society. Through the generations, the strictly defined roles of Confucius have died away, but his ideas of hierarchy are still ingrained in the Chinese way of thinking. The introduction of communism in China continued to have a large disparity in wealth and powe... ... middle of paper ... ... made they take the welfare and opinions of their works into account. Management has a strong sense of teamwork and consensus based decision making. While the employees are considered, the strict adherence to their decisions hurt innovation. The German and Chinese business hierarchies don’t only affect the way businesses are run but also affects what kind of products each country is able to specialize in. The lack of empowerment and innovation within the Chinese business structure makes it very hard for them to come up with new products and processes. However, having an obedient workforce allows them to excel at creating low cost, less complex, mass market products. The Germans focus on efficiency and technical knowledge helps them to successfully produce more complex products, but are seldom the first to market due to their low innovation and empowerment.

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