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Importance of cultural differences in business
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In today’s globalization, a project manager in the automotive business will have many diverse challenges working with counterparts in another country. Some of these challenges can include differences in culture, business practices, and language. Below, are details of the challenges you will come across being a global automotive project manager working with counterparts in China.
In global automotive project management, the difference in cultures between the United States and China will have a major role in how a project manager performs their job responsibilities throughout the project. Take in, for instance, the fact that Chinese workers value the hierarchy and will not question their boss; whereas, in the United States, a worker may ask
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Business relationships in China and the United States, are very different, in the Chinese culture it is common for the project manager to have more of a social relationship with their clients, whereas in the United States, a project manager will have more of a business relationship. As the article, “Understanding Chinese Business Culture and Etiquette” has stated, “Chinese business relationship inevitably becomes a social relationship after a while. Unlike a Western business relationship which remains professional and perhaps, aloof, even after a long time, Chinese business relationship becomes a social one”.
In global automotive project management like the business differences the language differences can create difficulty for the project manager to manage the project successfully.
When the project manager from the United States is communicating with their counterparts in China they need to make sure they speak slower for them to understand what they are trying to
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The cost that China provides may not be accurate and or the changes done wouldn’t be everything that was expected, which will impact the timing and the budget for the project.
In the article 5 Biggest Challenges Foreign Business Face in China. “Cultural misunderstandings arising from miscommunication are one of the biggest challenges which foreign companies face in China. Although there are an increasing number of Chinese people highly proficient in English, it is uncommon to find someone who understands the subtleties of the language and possesses a strong enough understanding of both Chinese and western cultures to navigate delicate business negotiations” (5 Biggest Challenges Foreign Business Face in China).
So, you can think that if you are an automotive project manager in the United States, and have not done a global project with your counterparts in China, you will be as successful as you are currently managing a project. If so, you better think about the facts above, because, if you don’t you will run into a lot of differences, which will turn the project upside down, quickly and you will have a lot of work to do to get the project back on
In terms of the whole project the main issues faced were around no changes to project schedule as it is not flexible and project must be completed within 1 year and the scope must be supported and not changed, and it was challenging to find a vendor who could meet these criteria.
First let us look at what situational leadership is. Situational leadership is seen as a leadership method according to the present situation you may be in. A true exceptional leader is not one who has a set method on how he/she leads, but rather an evolutionary method that situational leadership requires. Let me elaborate more on this. Let us say Roger Smith (a project manager from XYZ Construction Company) worked on a project down at Seattle for about a year and had to deal with the common problems associated with projects such as change orders, sub-contractor disputes, scope issues, and weather conditions. Roger Smith handled the Seattle project as he saw fit with prior experience and knowledge that he has about the industry. Now let us modify the situation. Let’s give Roger Smith the same type of project. Identical in size, cost, and scheduling but this time it will take place 4 years later along with the location being in China rather than Seattle. Will Roger Smith’s way of leading that he used in Seattle be successful in China? The outcome points towards no. Why would that be the case if the project is basically identical? For one, we have a different setting location. The labor issues, construction specifications, and laws are dealt with differently in China. Not only that, but the people he would be working with are raised and exposed to a totally different culture. With that, Roger can not approach or deal with people the same way. He would have to understand their culture to better adapt which is an aspect of empathy which I will get into more detail later. That is just one example of situational leadership needing to be applied to succeed in a project. For an additional clarification, http://www.chimaeraconsulting.com/sitleader.htm defines situational leadership as, “In simple terms, a situational leader is one who can adopt different leadership styles depending on the situation.” With those aspects at hand, someone can apply this concept in their progression of becoming a successful leader.
In the reading "A first time expatriates experience in a joint venture in China" we have come to understand the nature and structure of the joint venture between the U.S.A. and China and the role that James Randolf played to strengthen and maintain the international partnership.
The chapter ‘Project Management in the Automotive Industry’ by Christophe Midler and Christian Navarre from The Wiley Guide to Managing Projects (September 2004) traces the inception and transformation of project management in the automotive industry from the post-war period to the early years of the new millennium. It is an interesting article which categorizes the period into four phases on the basis of organizational structure and strategy pertinent to most of the automotive manufacturers in each era. This classification helps the authors elaborate on the change in corporate structures and relationships within the organization and with their subcontractors over the years. Examples of leading car manufacturers have shown how project management has developed into an essential aspect of managing complex activities, and how the automotive industry has steadily evolved from being function-oriented and bureaucratic to being innovation-oriented and modular.
China on the other hand is less risk adverse. This may also explain why numerous Chinese scandals prevail in the recent years. They are ambiguous as well as the Chinese language, the meanings can be difficult with different meanings. Indirect communication is common. People tend to speak in a tactful way and they tend to avoid saying word like “No” in order to reduce loss of face which may harm relationship. In general, Chinese are adaptable and
Position: China also wants to work with Google, sooner but it is not as much urgent for China
...ations in host countries. Some problems that BMW face is going global into the Asian market for example china does not permit BMW to sell its products directly to its public it must go through government organisation for distribution. It also wants BMW to manufacture at least 80% of its parts in China, which is not possible as they don’t have a plant in China. And in India the tariff is too high, which makes it hard for BMW to import painted body into the country. According to India’s regulation BMW is not allowed to import more value than they are exporting.
In the globalized economy, Successful project managers are in much demand across many industries. Organizations strongly need experienced project managers to lead their staff to accomplish their business goals and deliver successful projects. In an increasingly complex environment, project managers need to turn into many roles and have all kinds of responsibilities at each level of management within an organization. Good project managers are not born. They need to be trained. They develop their skills through study, practise and experience. They become better project managers after they finish a successful project each time. They learn new techniques and apply them on their projects. They learn their lessons from failed projects and then improve to be better project managers in the future.
The differences in other cultures vary from beliefs to ways of life, or norms, of the different societies. The importance of understanding and sensitivity to other countries’ differences is crucial to a business’ success. “Lack of familiarity with the business practices, social customs, and etiquette of a country can weaken a co...
Over the course of my professional life, I have become increasingly involved in project management roles. Doing so has made me aware of the many varied challenges that can face projects and the project managers who are charged with bringing them through to completion. The success or failure of projects, in whatever economic, political or social field, rests not just on the quality of the project’s goals, but also on the abilities of those involved in the project – and above all those who are managing it – to bring it to successful completion. To do this, project managers need to be equipped with a very wide range of skills, many of which are unrelated to the type of project itself. So, for example, a project manager of an engineering project must not only have engineering
The language barrier, which is also a difficult hurdle to encompass, serves as one of the most obvious cultural differences. A manager can delegate a task to be accomplished within a US based division and reap the expected results immediately. On the other hand, if an international manager is not familiar with the English language or culture, the same task may yield a different result. Language is the transmitter of both information and ideas. "The key to global competency is to develop the skills to cope, and that means integrating into the dominant culture and realizing how to properly interpret and analyze behavior" (Hayes, 1996). Being bilingual increases the advantage that foreign business partners have in interacting together. It nullifies the need of a third party translator. Business partners tend to be more open and receiving when communicating with bilingual personnel who speak there native language. "An understanding of the language allows the manager to pick up particular points of view, implied meanings, and other information that is not literal" (Moreno, 2006).
One of the pitfalls that organizations faced is that they assume a single success in one international assignment could build cross-cultural competencies. But, actually it could be just a superficial experience that did not build a deeper knowledge of cultural differences. Companies should apply some personal and knowledge assessments to improve the best selection, that will avoid the derailment of the global leader. Developing the cross-cultural competencies are the key for a successful global leader: Successful leaders build and develop their cross-cultural competencies over their experiences.
When planning a new project, how the project will be managed is one of the most important factors. The importance of a managers will determine the success of the project. The success of the project will be determined by how well it is managed. Project management is referred to as the discipline that entails the processes of carefully planning, organizing, controlling, and motivating the organization resources so as to foster and facilitate the achievement of specific established and desired goals and meet the specific criteria of success required in the organization (Larson, 2014). Over the course of this paper I will be discussing and analyzing the importance of project management.
The way people communicate varies widely between, and even within, cultures. One aspect of communication style is language usage. Language has always been perceived as a link between people but it can also constitute a barrier. Across cultures, some words and phrases are used in different ways. For example, even in countries that share the English language, the meaning of "yes" varies from "maybe, I'll consider it" to "definitely so," with many shades in between . Furthermore, communication between cultures which do not share the same language is considerably more difficult . Each culture, has its distinct syntax, expressions and structure which causes confusion in intercultural communication. For example , in Asian countries the word “no” is rarely used, so that “yea” can mean “no” or “perhaps”. Therefore, an American traveling to Japan might be considered impolite if he ignores this rule. Furthermore, individuals who are not comfortable with a certain language may not be taken seriously. Such is the case in the classroom, where a student who has a perfect knowledge of the subject in question may have difficulty expressing his idea due to his inability to write properly and therefore he would not receive the grade he truly deserves. Similarly intercultural communication is dominant in the workplace. In the past, many companies and organizations could operate entirely within their country of origin and conduct their activities exclusively in their own native language. But now, due...
Based on Richard R. Gesteland book, deal-focus vs. relationship focus is one of four patterns in the cross-cultural business behavior. More than a few divergences between deal-focus and relationship-focus make both of them will be grumble while working together. Deal-focus people will go straight to the work part. Deal-focus people can be assumed as aggressive, bad-mannered, and assertive. On the contrary, relationship-focus people will concentrate in build strong relationship before jump to the work part. In addition, relationship-focus people are calmer and more flexible in doing business. The examples of countries with deal-focus culture are Australia, New Zealand, Northern Europe and North America. At the side of relationship-focus, Korea, Japan, Chine, and Taiwan are the examples. Furthermore, there will be several explanations, analysis, and recommendations related with case “Exporting to Taiwan: Guanxi in Action”.