Research Paper

The Value difference Between China and the United States
On Organizational Management
Journal of Management History
The Value difference between China and the United States
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http://mc.manuscriptcentral.com/jmh

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Research of cultural difference between China and the United States on management
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Abstract:
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Purpose: Two different backgrounds and historical culture of countries, the China and
United
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States. Theyre having their own point of views and values on the way of
management. The
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United States has doing business more frequent with China in the recently years, and they might
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take more time to communicate with each other because of the cultural difference. Its much 18
important for international workers to understand the cultural difference between these two
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countries, which can save their time and reduce the error made from the cultural difference.
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Design/Methodology/Approach: The paper will focus on the cultural difference between China 26
the United States based on the Hofstede Values Dimensions and Rokeach Values Survey.
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and
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The different values and life living style of two countries have influence on the decision making
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for each country.
Findings: Cultural difference might be the important fact which influences the organizational
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management.
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Research Limitations/ Implications: More research of the cultural difference from

variety of
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factors can deeply understand more about the society since a culture of a
national can be
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demonstrated by many ways.
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Practical Implications: Each country has its own economy system and values, and they might
have huge impact on the international management. In order to be successful in the global
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market, its important to understand the differences of each culture.

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Originality/Value: This paper will illustrate value difference of United States and China by
models and examples. Individuals might also read this paper to further understand the values
difference.
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Keywords: China, United States, Hofstedes Values Dimensions, relationship, Rokeach Values
Survey, Guanxi.
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Introduction
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In order to success in todays circumstance of multicultural business, one of the important
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factors that the managers need to know is understand the difference of culture. Cultural 24
differences might directly affect the relationship between managements and employees. Now
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difference might became the barriers of the companys performances (Ray, 2011). The existence
cultural differences is because people from different geographical regions have their own
different values. Value is how individuals act differently in the similar situation (Khairullah,
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understanding the difference of culture became more important than before because the cultural 29
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countries
the
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2013). China and United States are conducting more business in the past two decades since
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39 development of globalization. Its unavoidable to confront the complexities of the cultural
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42 differences for either Chinese managers or American managers. Its now more necessary to
analyze the difference value of Chinese and American since the managers from both
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can benefit more tremendous from knowing the value difference and the influences of them on 48
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the multicultural business (Khairullah, 2013). China has complicated history and culture. The 50
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Chines has negotiated with the firms in America more frequent than before, so its now
important to understand their value before doing business with them. For example, Chinese
people dont express their emotion on the face when they talk to their managers or employee
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(Khairullah, 2013). This paper focuses on analyzing the value differences of China and United
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States by using the Hofstedes values dimension and Rokeach values survey. This paper
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10 managers
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concludes that understanding the value differences might be required to get the international
to conquer the barriers of business performance. The lack of cultural awareness may
directly lead the managers
make the wrong decisions,
and the cultural learning
might be
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necessary for
management.
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Keyw
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of two countries. The five dimensions are:
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. Later on, he added one more dimension. His model used to compare the different culture
Uncertain avoidance -UAI
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Long- Term Orientation- LTO
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Power Distance - PDI

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identified four primary dimensions and did his research on more than 40 countries from 1967 to
Individualism - IDV
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Masculinity
In order toMAS
differentiating cultures, Geert Hofstede initially developed a model that
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Hofstedes work was updated and expanded in 1991, 2001, and 2005, and continues to be
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widely cited and used by

management scholars
and practitioners.
Today, scores are listed
Hofstedes
Values
Dimension
for 74
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countries and regions, partly based on replications and extensions of Hofstedes
study on
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The first dimension is Power distance. Its defined as the extent to which the less powerful
members of institutions and organizations accept that power is distributed unequally
and the basic anthropological/ societal issue to which it relates is social inequality and the
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10 amount of authority of one person over others (Hofstede, 1984). Understanding the level of
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13 acceptance on inequality of one country can help the manager easily access into the society of
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that county. A country which has large power distance, each person has their own social
position
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in the society. Their cultures are hierarchical, and the people will respect and obey the older age
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or the higher title. Its important for them to show their higher social status and power. The
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subordinates have strong dependence needs. They usually aspire to democracy as an

impersonal
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ideal. Subordinates expect superiors to behave autocratically and not to consult them (Hofstede,
1984). People in the country which has small power distance might not try hard to show their
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and status, and they dont try to earn respectful by pretending theyre older. Small
distance societies, people often go through considerable rituals of democratization to
satisfy the need for consultation without necessarily contributing much to the actual
decisions
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(Hofstede, 1984).
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The second dimension is Individualism, and its opposes to the collectivism.
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Individualist cultures assume individuals look primarily after their own interests
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44 interests of their immediate family (Hofstede, 1984). A individualist society is loosely
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47 integrated; A collectivist society is tightly integrated (Hofstede, 1984). In the
individualistic,
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and the
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people think that the task is more important than the relationship with their coworkers. They
to set the life apart from their job, and they dont want the task affect their family and personal
privacy. In the collectivistic, people prefer set up the relationship before they work with the task,
and they dont mind the task invade their personal life. They like to work together,
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they identified themselves as we. collectivism is characterized by a tight social
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framework in which people distinguish between in-groups and out-groups (relatives,

organizations) to look after them, and in exchange for that they feel absolutely loyalty to it
(Khairullah, 2013).
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Uncertainty Avoidance is an important dimension to look at for the international

management. It defines the extent to which people within a culture are made nervous by
that they consider to be unstructured, unclear, or unpredictable, and the extent to which
they try to avoid such situations by adopting strict codes of behavior and a belief in
absolute
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truths (hofstede, 1984). A culture with a strong Uncertainty Avoidance prefers not
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to make
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decisions based on the unknown situations, and they seem to be uncomfortable in the
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unstructured situations. They are Active, aggressive, emotional, security-seeking, and 29

intolerant (Hofstede, 1984). A culture with a weak Uncertainty Avoidance indicates that the
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culture has high tolerance, and people would be more comfortable with the unstructured
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situations. They appear to be less aggressive, unemotional, and accepting of risk (Hofstede,
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Masculinity, as the fourth dimension, opposes Femininity. Masculine cultures use the 42
bio-logical existence of two sexes to define very different social roles for men and women. They 44
expect men to be assertive, ambitious, and competitive, to strive for material success, and to
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respect whatever is big, strong, and fast. They expect women to serve and to care for the non-
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material quality of life, for children, and for the weak ( Hofstede, 1984) A culture which has
high Masculinity indicates that the culture has a high level of gender differentiation. Most of
their leaders are male, and they believe that male should achieve more. Masculinity seems to less
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care about for other such as: the quality of life, or people. Masculinity is an assertive or
competitive orientation of thinking and acting (Khairullah, 2013).
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Long Term Orientation, as a characteristic of a culture, defines the extent to which the
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peoples time perspective and their attitude toward perseverance. The

country which has high
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degree of the Long Term Orientation is willing to take time to overcome the barriers. Time might
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be the block for the international managers who try to enter the market of strange foreign
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The tradition of Confucian,

Sun Tzu,of
Buddhism,
The Culture
China Legalism and Taoism are what the
Chinese culture and philosophies based on over thousand years (Khairulla, 2013). In China, all
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might make decisions based on the degree of the Long Term Orientation in order to prevent
relationships seem to be inequality. The older person or senior should be getting the respect and
mistakes. from the younger and subordinate. (Peng, 2001) Chinese tradition views work more
obedience
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important than leisure and as contributing to familys well-being rather than competing with it
tradition, preservation of face, and fulfilling social obligations (Khairullah, 2013). Manag
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country. Short-term stands for encouraging virtues related to the past and present, re
(Khairulla, 2013). The most important cultural value is Guanxi , and Chinese people would
look Guanxi over work. They would like to build up Guanxi before they look at the task. 48
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Guanxi means good relationship. The principal of Guanxi requires friends and associate
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to do what they can for each other when they are needed. To violate Guanxi is to lose face
meaning to lose reputation or honor and also means avoiding embarrassment, failure, defeat, or
contradiction (Khariulla, 2013). Chinese believe that the natural power would control anything,
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which will appears on the Chinese calendar, before they make a decision. A superstitious belief
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they believe that everyone has their own destiny. They will check the fortune of the day,
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is the idea that events are influenced by specific behaviors without having a causal relationship.
The purpose of this behavior is to either attract the good luck or prevent the bad luck.
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Superstitious beliefs sometimes result in positive outcomes, however, at other times they result
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in negative outcomes (Khairulla, 2013). They prefer to use some specific number
because they
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believe that the numbers are representing luck. For example, people from the province of
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Guangdong would like to use the number 8 because the pronunciation of 8 is similar to the 21
pronunciation of fortune. People would like to pay a lot more money for the license plate
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because the pronunciation of 4 is similar to the pronunciation of death. Most Chinese people
like to change their cell phone number if it has a lot of 4s in it.
Politics are always being controversial in China, and Managers should avoid talking it 34
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which contents more 8s on it. However, at the same time they will avoid to use the number 4
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with the subordinate. Managers decisions should reflect supporting local communities and
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Khairullah, 2013). Chinese are hard-working people, and they will sacrifice their time over living
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better.
Hofstedes Values Dimensions: China

Figure 1:
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Masculinity, LTO= Long-Term Orientation.

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2. Data derived from the website: http://geert-hofstede.com/china.html

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China has a high degree of Power Distance, which they score an 80 (figure 1). The group of
older age always receive greeting from the younger age people. They like to show their social
status and power, and they are willing to obey their senior. The workers in Chinese corporation
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try to get a higher position title even if the salaries are the same because the higher title
means higher social status. All the Chinese like Save the face, which means good reputation.
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The Chinese would have difficulty in challenging his superiors, but at the same time, the
would be intolerant and not receptive to their subordinate challenging their opinion
(Fu, 2011). A Chinese manager wouldnt let his subordinate has the development
opportunity
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before he does. Follow the senior is the basic instruction in Chinese

corporation. The
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hierarchical value that the manager hold was, superiors have more rights and power, thus, he
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thought that he have more priorities than his subordinates (Fu, 2011). The subordinates have to 21
anything the managers said. This social status was from the Confucianisms promotion over
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2000 years ago: A son had to listen to his father, a subordinate had to listen to his superiors, a
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chancellor had to listen to the King (Fu, 2011). The employees would not disagree with
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in front of their colleagues. If they had questions or disagreements they would
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approach managers on one-to-one basis. In

general direct communication between
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and managers was limited
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China scores significantly low on the dimension of Individualism (figure 1), which
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indicates more of a collectivist characteristics indicating they are readily integrated into strong,
cohesive groups with loyalty to other group members (Ray, 2011). Chinese people prefer to
up the personal relationship with their co-workers before they start the task, and they think
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the Guanxi will directly affect the result of task. Chinese tradition is opposed to individual
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glorification and considers anyone who desires personal enhancement as a threat to

collectivism
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( Khairullah, 2013). Chinese in wealthier regions are likely to be more individualistic (Leung,
2008). Chinese have very strong needs of dependent, and most of them dont trust selfdetermine.
They like to form groups and exchange their opinion. In most of the Chinese action
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movies the heroes wouldnt be just one, and they would form a group to overcome whatever
problem they have. This indicates that they are high degree of collectivism. They proud to be 8
having a
group and they will compete against to members from another group.
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China scores very low at the dimension of Uncertainty Avoidance, which its 30. Chinese
manager will avoid take a risk when theyre making decisions. They prefer to follow the way
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their older generation did, and they think it would be safer. The philosophy in China is Live
dont try to change. Chinese workers are passive and do not like to take initiative at the
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work place (Khairullah, 2013). China has a high tolerance for uncertainty. They dont view
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laws or rules as heavily as the westerners do. They also keep in mind that decisions are
aimed at
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promoting group cooperation and harmony. They have to be direct and straight forward in
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explaining their decisions and its outcomes (Khairullah, 2013). Once again, they believe in 29
superstitious nature, which its reflecting they like to follow the way what they usually have.
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Most of the college students in China do not follow their interest when theyre picking their 34
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major, and they would look at the development of the jobs which relate to their major. Mostly
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heard before.
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China is a masculine country which has 66 on the dimension of Masculinity. They think 44
success and achievement are more important than their living. They prefer to sacrifice their
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leisure or family to be successfully on work. All the Chinese students are frustrating about the
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quizzes and exams score and thinking this is the only reason that they study for. A worker will
go to places to work and leave his family in his own country for years in order to get a higher
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pay. Managers in China keep a distance while they are talking to their employees, and they will
avoid have physical contacts with female employees.
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The Long-Term Orientation (LTO) dimension measures the extent a culture participates
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in long term relationships (Ray, 2011) China scores 120 on it, which indicates Chinese are
willing to overcome the barriers over time, and theyre known for their patient.
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Hofstedes Values Dimensions: United States and China
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Figure 2
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conversation between the managers and subordinates are not as limited as Chinese, and they
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wont blindly follow their superiors if they feel like the superiors have given the wrong
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instructions. The older people in United States do dont automatically receive respect from the
people, and as the same way, the subordinates might sometimes disagree with the superiors.
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The United States has a higher score than China on the dimension of Individualism,
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which indicates it has a high level of independence. They look after their personal interest more
than group interest. American managers strongly believe in self-determination and feel that they
control the problem situation and should bring about changes (Khairullah, 2013). They will
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people like to leave the final decision to their superiors, and they belong into groups.
American
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more like to think before they ask their superiors when their have questions. In contrast,
Chinese
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like to say Myself rather than Ourselves. They like to think out of the box, and they would 19
consider their decision should be better than others. Most of the Chinese will depend on their co 21
works, and they expect that the co-work will solve the problems together with them. American
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will set their work apart from their personal life, and they barely build up relationship with their
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co-worker. In the culture of Chinese society, people like to drink alcohol with their
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States is a Individualism culture, and China is a Collectivism culture.

United States has higher score (46) of Uncertainty Avoidance than China has (30). This
the U.S. is slightly less tolerant of opinions different from what they are used to, and try
to minimize uncertainty by implementing strict laws and rules (Ray, 2011). Chinese managers
are more likely avoiding the risk, and they feel more comfortable in the familiar situations.
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American managers feel more comfortable than Chinese with unknown situation. The U.S.
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corporations are willing to make rapid decisions and to accept risks and uncertainty
(Khairullah,
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2013). They would more like to think farther than the Chinese managers. Most of
Chinese like
be safe in their position and cherish what they have, and they will prefer to follow the instruction
which given by their older generations. American likes to develop their own way to solve their
problems.
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The higher score of Masculinity a country has, the less they will care about the quality of life.
China and the United States have almost the same score on the dimension of Masculinity,
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which are 66 and the 62. They are driven by achievement and successful, and they like to
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10 compete. American think leisure is more important than work. In contrast, Chinese people are
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13 willing to sacrifice their personal life time to finish their task. People in China do not like to
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display of affections in the work-place and as such managers refrain from such actions
as patting
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their employees on their backs. (Khairullah, 2013) The people in the Chinese corporation are 19
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always trying to compete with their co-workers, and they like to show their achievement. The
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women and men are unequal in the society in China. People expect men to solve
most of the
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purchase a house before their mothers-in-law allow their daughter to marry them. Chinese males
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problem, and they think men should take the most responsibilities. Most of men in China have to
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for their achievement, and some of them think women should be stay at home and take
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care of their children. Most of women in china think

male should pay the bills after they had
33 34
dinner with men, and they think thats a
decent manner.
China has much higher score than America on the dimension of Long-Term Orientation,
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which is 118 and 30. Its indicating the Chinese values include thrift and perseverance
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much more than the United States (Ray, 2011) Chinese are known as good patient, and theyre
to take time to solve the problem. American might take the action rapidly, and they are
more comfortable in an uncertainty situation.
50
Rokeach Values Survey
51
The Rokeach Value Survey (RVS) is a classification system that has two sets of values,
18 individual value items in each set. One set is called terminal values, the other instrumental
Page 15 of 23
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3 values (Alkers, 2013).This system effectively illustrates the different views and values between
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China and the United States. RVS is based on a 1968 volume (Beliefs, Attitudes, and Values)
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which presented the philosophical basis for the association of fundamental values with
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10 attitudes, Terminal Values refer the desirable end-states of existence. These are the goals that a
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13 person would like to achieve during his or her
lifetime. These values vary among different

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belefs and
46

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groups of people in different cultures

(Alkers, 2013).
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Rank of RVS (China and USA)
Figure 3
Page 16 of 23
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China and the United

States
ranked huge
differently on Freedom, which are 3rd and 14th
Journal
of Management
History
, The data and chart derived from Michael Akers (2013)
The people in the China care more about the personal freedom, and they dont 49
like to be
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restrained.
In the
realdifference
life, everywhere
are restrained
andthe
restricted
China. People are limited
The
Value
between
China and
UnitedinStates
by some1rules and regulations. They think freedom is much important as American does. They
ranked the same on a comfortable life and Loving. They both think Family Security is important,
Notes:
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they ranked it very high. China ranked Health the 1st, they think have a healthy body is most
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important. American ranked Health much lower than Chinese. In the Chinese culture, wisdom is
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considered a desirable value as they believe their leaders must have wisdom to deal with
difficulties and guide the nation successfully. The lower ranking of inner harmony and pleasure
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by the Chinese students is not surprising. Confucianism focuses on the group rather than the
individual, even if self-interests must be sacrificed (Akers, 2013)
Page 17 of 23
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9 cultural
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Conclusion
The Hofstedes Values Dimensions and Rokeach Values Survey effectively measured the
differences between China and the United States. The United States seem to be more
individual than China, and they showed more ambitious on the development of business. Chinese
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16 business.
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are more depending on the good relationship with co-workers or superiors when theyre doing
From the result of the Rokeach Values Survey, American people look heavily on
freedom and friendship, and Chinese people think health and freedom are most important. A
21
manager should have knowledge of cultural difference before he enters the market
of foreign
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country. Its important to understand the culture in the office of China because Chinese are
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affecting by their Confucian values over thousand years. There are some values theyre similar, 27
and those can help doing business together.
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Limitation and suggestion for future research
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e
v
This paper is focusing on the how difference of culture has influence on management,
now most of Chinese are hiring more returned scholars into the management. Those returned
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ie
w
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37 and
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scholars from the United States might change the way Chinese usually think. This paper is
42
limited because nothing is a hundred percentages accurate, and this paper is more
like showing
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26
the relationship between superiors and employees. On the Survey of Rokeach Values, the
samples of people are small, and they are might not representing the entire country.
50
The value differences between China and the United Stated are huge and complex, and
51
there are so many situations might not be studied. Give the trend of globalization and
economic growth between China and the United States, there are so many future
researches should be conducted. On this study only used the hofstede values dimensions
and Rokeach value survey to
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Page 18 of 23
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measure the existence of cultural difference between China and the United States. Other
dimensions such as Global value and Bonds concept of time orientation might also affect the
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8
decision making of the international managers. Younger people in China and the United States
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9
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10 might
make different style of decision compare to older people on management. Young people
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11
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12
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might easily accept the new international stuff and learn faster than old mangers, and they
might
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bring many new thoughts and ideas into the management. So many external factors
might affect
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generation on decision making in China in order to have a better understanding for international
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management.
research is needed to examine the style differences between younger generation and old
the decision making, and its important to figure out what are those factors are. The further
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The Value difference Between China and the United States

Journal of Management History

The Value difference between China and the United States

Journal of Management History

The Value difference between China and the United States

for each country.

Journal of Management History

The Value difference between China and the United States

Research Limitations/ Implications: More research of the cultural difference from

demonstrated by many ways.

market, its important to understand the differences of each culture.

Journal of Management History

The Value difference between China and the United States

In order to success in todays circumstance of multicultural business, one of the important

Journal of Management History

The Value difference between China and the United States

Journal of Management History

The Value difference between China and the United States

Journal of Management History

The Value difference between China and the United States

Journal of Management History

The Value difference between China and the United States

of two countries. The five dimensions are:

Journal of Management History

The Value difference between China and the United States

Power Distance - PDI

widely cited and used by

Journal of Management History

The Value difference between China and the United States

subordinates have strong dependence needs. They usually aspire to democracy as an

The second dimension is Individualism, and its opposes to the collectivism.

Journal of Management History

The Value difference between China and the United States

they identified themselves as we. collectivism is characterized by a tight social

framework in which people distinguish between in-groups and out-groups (relatives,

Uncertainty Avoidance is an important dimension to look at for the international

Journal of Management History

The Value difference between China and the United States

unstructured situations. They are Active, aggressive, emotional, security-seeking, and 29

Journal of Management History

The Value difference between China and the United States

Journal of Management History

The Value difference between China and the United States

Journal of Management History

The Value difference between China and the United States

peoples time perspective and their attitude toward perseverance. The

Journal of Management History

The Value difference between China and the United States

Journal of Management History

The Value difference between China and the United States

Journal of Management History

The Value difference between China and the United States

Journal of Management History

The Value difference between China and the United States

Journal of Management History

The Value difference between China and the United States

Journal of Management History

The Value difference between China and the United States

Journal of Management History

The Value difference between China and the United States

Journal of Management History

The Value difference between China and the United States