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March 31, 2005
Investment Discussion Panel To Be Held in Shanghai
Thunderbird will host a discussion panel entitled, "Investing in China: Will the Boom Continue?" in Shanghai on April 12.
Confirmed speakers include Christian Giannini, Vice President, ChinaVest; Kenneth Rhee, Vice President, Shanghai Dragon Investment; Steven Xu, Director of Advisory Services, Economist Corporate Network; Joe Zimny, Director, Oxford & Associates.
Click here to see a detailed description of the event.
By the way, you might want to consider becoming a member of ORIENTED.COM, which, as their website notes, is "an international, professional network that brings together businesspeople and students alike who share a common interest in Asia." I've found their networking events fun, but populated mostly with people in their 20s and early 30s, including students. In other words, I would not recommend it for serious business networking with more senior executives.
Posted by Richard at 1:28 PM | Comments (1) | TrackBackChina Environmental Business Newsletter
The US-China Environmental Business Newsletter, containing business opportunities, conference announcements and new, is available free of charge from the U.S. Commercial Service. A sample of its content from the March, 2005, issue:
1) New ADB Procurement Notice on Jilin Water Supply and Sewerage Development
Project Name Jilin Water Supply and Sewerage Development
Project No.: PRC 36507-01
Executing Agency: Jilin Provincial Government
Loan Amount: $ 100 million
The Project aims to enhance the urban environment and public health through better wastewater management, increased supply of high quality water and to improve...
Click here for the Environmental Technologies website and here for subscription information.
Posted by Richard at 1:11 PM | Comments (0) | TrackBackMarch 28, 2005
The Changing Value of "Guanxi"
When Westerners discuss Chinese business, they inevitably fall upon the venerable topic of indispensable “guanxi (关系),” or, in ready-bake parlance, “connections.” With a charming innocence, Westerners ascribe to the term “guanxi” an almost mystical power, as if it were a talisman to be worn about the neck. [The pin-yin method of romanization makes it very difficult for newcomers to the mandarin dialect. “Guanxi” should be pronounced approximately like “gwan shee.”]
Why? One with “guanxi,” it is believed, can get things done in China others simply can not. Many Westerner businessmen will regale the listener with stories of a Chinese colleague who, solely by virtue of his incredible “guanxi,” accomplished some task – helping an application through a government office, overturning a denial on a permit, etc. -- once thought impossible. Sometimes these stories ring true; at other times, I have been more impressed with the Western businessman’s willful ignorance to pierce to the root cause of the success.
A personal connection to a decision-maker, wherever on the globe, is valuable. But, it is presumed, Chinese hold far greater sway with any given connection than other ethnicities. There is more than just a grain of truth to that. Most Americans, according to my experience and observation, will generally not perform favors for even dear friends, unless either the request is logical or there is a direct and immediate benefit to the person who receives the request.
Chinese, on the other hand, are quite willing to perform favors -- without investing a great deal of ratiocination -- merely because a request has been made by a personal contact. Chinese are extraordinarily sensitive to the needs of their personal contacts – a faculty one might wish more Americans might develop.
To be fair, Americans open their hearts to strangers asking for assistance, while Chinese give strangers short shrift. The idea of “the public good,” if it ever existed as other than a traditional philosophical idea in the collective Chinese psyche, is in practice severely underdeveloped. As one Chinese manager said to me with no little shame as we walked through garbage strewn streets of Shanghai some years ago – “中国人最缺的就是公德心。[Chinese lack an awareness of the importance and value of the public sphere.]” That isn’t atypical of Americans: drive through the streets of Newark, New Jersey, and one can say the same.
But, really, how important is guanxi in China?
Influence works: pull strings whenever possible. However, while one might get some leverage through a personal connection, the value of guanxi is steadily on the decrease.
Just 25 years ago in China, political and economic power was concentrated in the hands of a very few. There were but a handful of decision-makers. One’s connection to that personage of power might arrange a transfer to a desired work unit, a larger apartment, enhanced medical care, etc.
With experience, one learned to take claims of pie-in-the-sky guanxi cum grano salis. [Perhaps I should not mix my metaphors, or, for that matter, sweet with salt.] In the 1980s, every Chinese waxed eloquent about his contacts, knowing full well their importance to the listener, when he very often but blew the proverbial hot air.
Some people were indeed very close to the center of power. And yet even they were difficult to access; they rationed their guanxi; they negotiated for value in return. They did not give it away to any and all takers.
But enough of the past. In short, that world – where a needle decided for a field of haystacks -- has begun to fade from view. With China's tremendous economic development, there are far more decision-makers now than there have ever been in China’s modern past, and their numbers continue to grow. Some people will still be well plugged in far better than others. But no one can possibly know all of the decision-makers, or even, for that matter, a substantial portion of them. A lock on guanxi is a relic.
Yes, one must acknowledge the vestigial value of guanxi. As I stated, pull strings whenever possible. But do not focus on it. Instead, in the China of today, we must look to the development of a far more important business skill -- that of creating relationships of trust with strangers.
More on how this may be done to good effect in upcoming posts.
Posted by Richard at 7:56 PM | Comments (1) | TrackBackMarch 21, 2005
Where Would You Like the Comma Placed, Sir?
Let’s continue our discussion of the manager in the Chinese enterprise, which I began in "Chinese Management -- Beyond Garbage In, Garbage Out."
Western Flights of Fancy
When I counsel western expatriate managers running businesses in China, I find a few predisposed to flights of fancy. They expect P.R.C. Chinese business managers, and other P.R.C. Chinese in positions of authority, to act benevolently towards their staff, as if the constructs of ancient Confucianism were practical management methods in the modern day.
Measure this against the reality and one will find it very far from the truth. In 20 years of involvement with Chinese companies, I have only met three Chinese nationals -- all elderly, whose formative years preceded the Liberation of 1949 -- who practiced a management style one might call benevolent. (And yet I have encountered many Taiwanese who practice a benign, generous and compassionate “fatherly” authority over their staff, with, in all cases, great success.)
One musn’t blame or ridicule these westerners – they have merely picked up on a fantastic thread running through the western imagination, one unfortunately propagated by academics, journalists and travelers who have known as little of every day Chinese life as non-specialists, with sparse exception. It is emblematic of the long and preciously held western consciousness about China that many still consider it exotic, mysterious, exciting.
The Authoritarian Style
P.R.C. Chinese management style is founded upon the premise that all good flows from the manager. Fear of loss – of job, prestige, income, self-respect – demands that staff placate the manager at all times, regardless of the demand.
“You are my salesman. On Saturday (our usual day off), you will wash my car.” Most Chinese staffers would readily agree, albeit grumbling in secret, to such a demand. Imagine the reaction from an American salesman! (Far more outrageous demands have been made, but I hesitate to include them here, for fear that the reader would not believe me.)
Some Hong Kong Chinese and Taiwanese adopt a similar management style, especially while managing in China. Even their demands exceed one’s usual tolerance for outrage.
As for whatever business problems that must be resolved during the course of the day, the PRC Chinese manager, with exception, of course, is often a micro-manager, causing surprisingly curious and even stammering reactions in staffers. One asked me, in timorous voice and bowing heartily, where I thought certain punctuation should be placed in a presentation I was to give. Only fear could have given rise to such a queer question, for the staffer was extremely intelligent.
But what is one to do, thinks the ordinary Chinese staffer?
So, What is Going On?
The usual explanation is population. There are far too many Chinese for too few employment slots. One in a position of authority can exploit the situation to his benefit.
But I think there is more going on than simply supply and demand.
The urban intellectuals -- Mao, for example, was briefly a librarian at Peking University; Zhou studied in Japan and France -- who formed the peasant-based Communist movement in the first half of this century consciously instituted a rigid discipline over them. One became subject to the exacting requirements of obedient thought and choreographed action in virtually all aspects of life.
That militarizing mode of behavior has served pervasively as the model over the past 50 years. Chinese decision-makers throughout society have been trained – well-trained -- to emulate the authoritarian command of the politically powerful. Concomitantly, those who serve have been trained to obey, with contempt redounding to their detriment.
A Change Coming?
But, as I wrote,
“…the role of the manager in a Chinese enterprise is in flux. The authoritarian style, while remaining the style of choice, shows fine cracks running up and down its facade.”
How has it changed? There is a new Sino-western combination of management styles: one that, while abjuring authoritarian command, allows one to maintain close supervision over staff.
Importantly, without sacrificing results, this style is a kind of carefully managed freedom that allows staffers to better utilize their skills and knowledge to resolve business problems for the benefit of themselves, the management and the business. I have used it with success.
More on this in a future post.
Posted by Richard at 7:18 PM | Comments (1) | TrackBackMarch 16, 2005
China's Crescendo
Even business readers will want to read this piece on music – because that’s not what it's entirely about.
THE PERFORMANCE
Lang Lang （郎朗）, the 22 year old Chinese pianist-sensation, performed here in New York over this past weekend. As much as half of the audience was of Chinese descent, as one could clearly tell by the Mandarin and Cantonese spoken by the crowds loitering in the lobby and then surging up the stairs.
The brilliant performance -- some said the orchestra was rather a bit too loud – was greeted by listeners who gave the performers an enthusiastic standing ovation. One might temper this with the comment that Americans, unfortunately, give just about everyone a standing “O;” but Chinese don’t. [The New York Times article is archived and must be purchased.]
Other than an extraordinary expression of artistry and beauty, this concert was most assuredly a statement of arrival and of pride. “We, Chinese, have made it: we have met the westerners on their ground and on their terms. And we will show them the glory of Chinese culture as well.”
Western and Chinese music was played on the same program: Rimsky-Korsakov and Rachmaninoff as well as the traditional songs of Blind A-bing (瞎子阿炳). I will posit that Yu Long (余隆), the CPO's artistic director, wished to display the orchestra’s command over portions of the classical western repertoire; to please his Chinese audience with traditional favorites; and to educate his western audience by displaying what Chinese consider to be the grandeur of a Chinese musical heritage unknown in the west. Indeed, a success on all counts.
But perhaps they went a bit too far.
Auf vs.Von: Like a Fake Louis Vuitton Handbag?
Accompanied by the China Philharmonic Orchestra (CPO), the virtuoso premiered “Das Lied auf der Erde” [The Song From the Earth], composed by Ye Xiaogang. Those who listen to Mahler will at once notice the similarity in name to “Das Lied von der Erde” [The Song Of the Earth], lieder which set Tang dynasty poetry to music.
[For those of you who wish to learn more about Mahler, I would recommend friend and fine writer David Hurwitz’s book and CD entitled, The Mahler Symphonies: An Owner's Manual.]
The management company of the CPO notes that
…at the suggestion of Yu Long, music director of China Philharmonic Orchestra, composer Xiao Gang Ye was commissioned to create this Chinese version of The Song of the Earth. Gustav Mahler’s The Song of the Earth, or Das Lied von der Erde, is an irreplaceable masterpiece. Instead, The Song from the Earth, or Das Lied auf der Erde, reflects a different geographic and cultural background. The dawn of this ambitious re-creation, just like New China, signals the foundation of a symphony culture for China and its auspicious future.”
A copy with minor changes, much like a deluxe fake bag remade in the image of luxury parent? Not at all -- although one is forced to consider such an unfortunate idea.
THE STATEMENT
The creation of Ye Xiaogang’s piece is a statement that China intends to reclaim itself from the mind of the West, to re-create itself as it wishes. However, its target, in this case, was merely a harmless and delightful fancy in the mind of an imaginative western musician.
From the point of view of the non-Chinese audience, was such a statement necessary or even worthwhile? It was probably not even understood.
For Chinese, that the statement involves a re-creation of a western piece points up the extraordinary value the Chinese artists and the audience place on Things Western. “We have arrived – the West must stand up and take notice – and we are taking back what is ours.”
RECLAMATION: A MAJOR IDEA IN CHINESE LIFE
Reclamation from the West is a major topic for modern Chinese: antiques held in western collections, a demand for repayment of moneys allegedly stolen by an American business in the first half of this century, of China’s place in the world as a major business and political power [search Google for 中国强大国家 and read the Chinese language bulletin boards].
This lifetime student of China respectfully suggests: Chinese must learn what is and what is not theirs to reclaim -- what is and what is not important to reclaim. As Chinese wend their way into the international community, the increasing friction generated by their demands may produce a clamor that exceeds the splendor of the music they so well express.
Posted by Richard at 2:31 PM | Comments (1) | TrackBackMarch 11, 2005
Jumping Into the Abyss
In an article worth reading, Caroline Baum, a Bloomberg columnist, imagines that “Asian central banks are poised on the edge of a cliff.”
A vivid metaphor, indeed. In other words, given recent signals from Japanese and Korean officials, it would appear that the US dollar hovers on the brink of an extreme revaluation.
Unsurprisingly, given the great set-up in the article’s first sentence, Ms. Baum then asks the question: “Who will be the first to jump?” Any answer to this question presupposes that someone will jump.
Ms. Baum goes even further, explicitly encouraging a first mover. “It would be much smarter for these banks to quietly sell dollars, if that's what they want to do, without calling attention to it.”
But will any of the central banks jump into the abyss?
If media reports are to be believed - please be skeptical - many think so. On an unusually warm weekday at the end of last year, certain currency traders expected a devaluation of the renminbi over the weekend – drinks were had all around on the Saturday, but no one had yet profited from that bet. Nor months later, as of today.
To be sure, the idea of RMB devaluation has been batted around like a badminton birdie since the late 90s. More conflicting signals from the Chinese government – if signals they be, instead of expressions of indecision – confuse the issue.
I have steadily maintained that a major revaluation runs contrary to China’s national interest. [Here and here.] This, despite indications that China must do so or suffer the economic consequences, as summarized by James Dorn, here.
At the end of 2004, Chinese foreign reserves reached US$610bn, an enormous sum by any earthly measure. But Chinese officials, historically, tend to use even grander measures to gauge China. Zhou Xiaochuan, governor of the People’s Bank of China has stated that "China's foreign reserves are indeed somewhat high, but not by any big magnitude.”
A major policy change is, of course, possible. After all, China raised interest rates after many years of speculation and chatter. But only after foreign governments shut up and stopped complaining about it. Indeed, when the day comes for the peg to be removed, it will happen only after foreign governments stop complaining about it - and when Chinese officials under difficult circumstances have no choice but to do so. And when they do so, that action will be explosive and change China as greatly as removal of Taiwan's NT dollar to US dollar peg changed Taiwanese economic life.
Note, however, that the Chinese central bank has diversified over the past few years away from the US dollar to Euros. Is this the “quiet selling” that Ms. Baum suggests for the Japanese and Koreans?
Imagine what might happen when – if – the Asian central banks jump, having first hollered. (Of course, the hollering is aimed at the ears of their dear friend, the government of the United States of America, for help in an hour of need.)
Imagine when - if - the current administration fails to put a good word in for their allies in the region and, by not informing the markets that the value of the dollar is sacrosanct, fails to pre-empt the radical dollar movement everyone but the administration fears. Suddenly, it is sold in great quantity. It tanks. US Treasuries held by those foreign governments concomitantly suffer enormous loss in value.
The first mover may gain somewhat – but everyone loses in the end. A jump into the abyss.
Posted by Richard at 3:04 PM | Comments (1) | TrackBackMarch 9, 2005
Dealing with Greenspan¹s Conundrum
[Editor's Note: For today's guest column, we are pleased to present analysis by Sam Park with the New York investment and business development advisory service of R. W. Wentworth & Co. While his article doesn't focus on Asia, Mr. Park writes fluently from an economist's perspective on subjects in which the readers of this weblog, especially those residing in Asia, have expressed keen interest. Indeed, American markets, the trade deficit, the movement of the dollar and Mr. Greenspan's comments are perhaps of even greater moment to the businessman residing on the left coast of the Pacific as on the right. Many thanks as well to Mr. Alan Rude, President of R. W. Wentworth, as well as his staff, for permission to post.]
February Minutes of the Federal Open Market Committee
The Federal Open Market Committee (FOMC) continued with its effort to increase transparency by revealing the minutes of its February meeting. The minutes disclose the discussion among the members as they had decided to raise fed funds rate 25 basis points to 2.5 percent. This transparency allows the public to scrutinize and analyze reasons behind the Committee¹s decision on their recent monetary policy.
During the meeting, the consensus was that the economy steadily expanded in recent months. Real consumer spending continued to expand as real disposable personal income rose moderately and consumer confidence remained favorable. New and existing home sales maintained their robustness, however at a decelerating rate. Business fixed investment grew in the fourth quarter and was bolstered by favorable fundamentals. Since the recent data indicates a solid economy, the FOMC has some freedom to raise rates closer to their neutral level that ranges between 3.5 and 4 percent.
A Large Trade Deficit and a Weak Dollar
The U.S. international trade deficit continues growing to record levels, both in nominal terms and percent of GDP. Recent data suggests that the U.S. trade deficit had swelled in the fourth quarter, which had resulted from a decline in exports of goods and increases in imports of oil and consumer goods. Despite the optimistic view of the U.S. economy suggested in the February minutes, the current trade deficit may pose a threat to the ability of sustaining high Federal deficit levels and to the continuing of the economic expansion.
Large deficits typically cause worry that they could hurt the U.S. industry, eliminate jobs, and cause "hard landing" scenarios. Growing deficits could burden future generations with overwhelming foreign debt, leaving the U.S. susceptible to foreign pressures. This could discourage foreign investor confidence in the U.S. and may trigger capital flight, causing a downward spiral of the dollar.
However, according to America's Record Trade Deficit, large trade deficits are typically accompanied by improving economic conditions because of the link between trade deficits and rising investments. The primary cause of the U.S. trade deficit is due to insufficient domestic savings to fund all available domestic investment opportunities. This insufficient savings is filled by inflow of foreign capital, which allows the U.S. to buy more than it sells resulting in a trade deficit. Trade deficits are sustainable as long as the U.S. remains a safe and profitable designation for the world¹s savings.
Several factors challenge the sustainability of the trade deficit. Historically, the U.S. dollar and Treasuries have been viewed as safe and profitable. While the dollar is still safe, several major dollar-holding foreign central banks had recently issued statements of the dollar¹s unsatisfactory returns. These central banks have also indicated their plans of decreasing their exposure to the dollar, and these banks may diverse themselves away from the dollar. The weakened dollar must turnaround to avoid a possible capital flight and recession.
Inflationary Pressures
Another major focus on the Committee's minds is inflation. The weak dollar has caused import prices to rise. This combined with record high crude oil prices are creating inflationary pressures. High productivity growth rates have previously eased such pressures; but as the productivity rates decelerate, core inflation to the consumer will begin to increase.
The latest core Producer Price Index rose .8% (its highest monthly jump in nearly a decade). This implies that costs to firms have risen. The rise in the latest core Consumer Price Index was more moderate. However, unit labor costs had accelerated over the last year; and if this trend persists, core CPI is likely to increase.
The FOMC puts more focus on CPI figures than that of the PPI, and the Committee does not currently seem to be in a panic situation. Then again, some firms/producers have indicated their ability to pass cost increases to product prices, which directly causes higher core CPI figures. FOMC members probably understand this possibility and may take a more aggressive monetary stance in the months ahead.
Contradictory Interest Rate Situation
As shown in previous newsletters, consumer inflation levels affect FOMC's policy stance and decisions on fed funds rates. Given so, the upward inflationary pressures will force the Committee to take a tighter stance, which will effectively increase short-term interest rates. Nonetheless, consequences result from actions.
Greenspan has mentioned how he faces a conundrum seeing the recently declining long-term Treasury rates after having raised rates six consecutive times. Rising short-term rates not only causes a flattening yield curve, but the low long-term rates also accelerates the process. This implies that economic outlook appears uncertain. If the curve becomes inverted (when short-term rates exceed that of loner-term Treasuries), then we are likely to face a dismal economic situation.
Where Fed Funds Rates Are Headed
As mentioned, the FOMC tends to focus majority of their attention on consumer's inflation. Granted so, they will continue raising target rates. Currently, the fed fund futures is pricing approximately 65% probability of a 50 basis point increase in fed fund rates during the upcoming FOMC meeting and implies that at least 25 bps rise is virtually definite in their meeting on March 22nd.
Summing It Up
The Federal Reserve forecasts real GDP to expand between 3.5 and 4 percent for 2005, and the Committee expects the pace to slightly decelerate and range between 3.25 and 3.75 percent in 2006. Firms surveyed by the Fed have indicated more confidence about the economic outlook, and a significant reduction in capital spending is not anticipated in the early part of 2005. Both firms and consumers have taken advantage of low longer-term nominal interest rates, which is partly attributable to well-contained inflation expectations.
The low rates have discouraged savings and helped sustain spending trends. The current low savings rate appear to have resulted by expected income gains, low interest rates, and higher household wealth. The rise in equity and housing prices were major factors in creating that wealth. A reversal of home price appreciation trends would adversely affect household wealth.
A downward spiraling home price or bursting of a housing bubble is possible only if a negative catalyst occurs (i.e., unemployment rates taking a sudden and sharp hike). Since this scenario appears doubtful in the foreseeable future, downside economic risk seems contained. A bleak economy can be avoided as long as imbalances do not force the FOMC to considerably deviate fed fund rates away from neutral levels.
The Federal Reserve Board will most likely raise rates 25 bps on March 22nd. However, if Greenspan fears that increasing inflationary pressures to the consumer is eminent, the FOMC may opt to raise more aggressively by 50 bps during the March meeting.
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Posted by Richard at 8:58 PM | Comments (0) | TrackBackMarch 8, 2005
UPDATE: RESTRICTIONS ON MEDIA INVESTMENT
SARFT Limits Foreign TV Production Investment
In "Is It All That Rosy for Media Investments," I suggested that an investor approach the Chinese media industry with skepticism.
A week later, we find that the State Administration of Radio Film and Television (SARFT) has announced restrictions on foreign investment. The restrictions, issued on March 4, may be found in ”Notification Regarding Implementation of the Temporary Regulations on the Management of Sino-Foreign Television Production Companies.” [In Chinese: 关于实施《中外合资、合作广播电视节目制作经营企业管理暂行规定》有关事宜的通知 located here.]
Foreigners may invest “in principle” in one and only one TV production joint-venture. A second may be applied for only in the case of “special conditions,” which aren’t clearly defined. One can only guess at the meaning of this phrase. Most likely, it is simply an out, elbow-room for SARFT in case they, for some reason, find it useful to grant permission for a second JV to a foreign investor.
Note the additional restriction that the foreigner investing in his one JV may do so only if he does not harm the interests of the state. "外方合作机构应自申请之日起的前三年内没有对我不友好的记录." [Translation: The foreign partner organization may not have an unfriendly record towards China for the three years prior to the application.]
One suspects, of course, that the paramount interest is control of the medium. TV is the superlative tool for the transmission of “correct” ideological values. (Indeed, for the transmission of any “values,” a watered-down term expressing damp ideas for living. Simply consider American programming, which is very likely as vapid as it is to focus viewer attention on the ever more daring and exaggerated advertising.) With this regulation, the ideological has once again trumped the market.
OUR NEXT POST: A GUEST COLUMN
In tomorrow’s post, we will be pleased to introduce a guest columnist with a timely article touching on the trade deficit, the (U.S.) dollar and recent Federal Open Market Committee minutes.
Posted by Richard at 11:36 AM | Comments (0) | TrackBackMarch 4, 2005
Chinese Management -- Beyond Garbage In, Garbage Out
Chinese educators place a premium on rote learning. Those of a more enlightened consciousness believed that the meaning of what one had memorized as a youth would become apparent at a time of greater maturity.
I witnessed the wondrous benefit of this instructional concept at a luncheon in Taipei many years ago. As we discussed how one went about forging business relationships, a Taiwanese friend suddenly banged on the table, shocking us.
He had evidently experienced a revelation of understanding – of a phrase in The Analects by Confucius that his parents had forced him to memorize as a youth 30 years before. [The Analects in English and in Chinese.] “So that’s what it means!” he said. The value of rote learning is apparent. “Life experience,” as an American might call it, brings the idea held within memory, as a seed awaiting the spring, to life.
However, the literalists are far more numerous, especially in modern mainland China. They demand strict obedience to the letter of the teaching – whatever that teaching may be. The ability to reason and come to conclusions on one's own was and is seen as a danger to the powerful. A dear friend, who is also a brilliant intellectual, told me in 1983 he thought Mao Zedong a great man because he controlled the masses with thought. Shocking as that was to a young American intellectual, as I then was, it is nonetheless instructive of a typically Chinese principle: uniformity of thinking ensures control.
What does all this have to do with business in general and investment in particular?
Having spent my life among Chinese – and having trained many – I have found that the most difficult, and yet most pressingly important, task in a Chinese enterprise is teaching employees to think for themselves. Aside from the occasional micro-manager – whom most westerners would consider as lacking vital self-confidence -- the American manager expects his American reports to have the ability to resolve problems on their own with a minimum of supervision.
Chinese managers represent the opposite pole entirely, surely by education and often out of necessity. That is, complete control of all details at all times. Employees aren't supposed to think for themselves because the manager is to do that for them. But how can one create managers out of employees who never have to think for themselves?
That said, the role of the manager in a Chinese enterprise is in flux. The authoritarian style, while remaining the style of choice, shows fine cracks running up and down its facade.
What are some of those changes and why have they come about? How does the manager augment his staff's individual level of capability and self-sufficiency while retaining strong overall direction of his team? What does an investor look for in the management staff of his target, if he hopes to gauge the potential for success of the business? We will address this topic is greater detail over the next few weeks.
UPDATE: Read the next installment of this post at "Where Would You Like the Comma Placed, Sir?"
Posted by Richard at 3:42 PM | Comments (1) | TrackBack
