The primary reasons are that China is still in transition and is considered to be a transitional economy. It has changed from being rigid to being more market oriented. This country in early 1978 was a rural and agricultural community, but has changed significantly to being more urbanized and industrialized (Warner, 2016).
Qualitative analysis conducted by Jia, You, and Du (2012) had found that there are three major factors that influence the ways in which Chinese managers and management act. It is based on the market transition, infrastructure and the Guanxi networks. Guanxi networks are based on the paradigm of confusion ideology. The society once validated being protectionist now was more open to change in the society. There are more private enterprises from being state owned. The culture of the place was once confusion now is more open socialism and capitalism. One of the biggest hurdles that faces the companies is to identify the reason that the people are resistant to change and develop ways to overcome these resistances. Change management should be taught to the people and the management should take efforts to make the people of the company welcome towards the newer changes. In this context the market-oriented economy has been given more autonomy and responsibilities that enable in setting of quotas and they make decisions based on the economy rather than governmental mandates. In the newer model, employees are given incentives based on their performance. There is no guaranteed lifetime employment for any employee nor are the governmental benefits for the employees such as housing, and medical care. Manager are thrusted to change their practice of performance and individual accountability. Previously, there was large scale practice of collectivistic notions and this changed considerably in the newer economic models.
Li, et all (2012) had analyzed the qualitative analysis of previously collected empirical data. They had found the important constructs about the psychology of the Chinese managers from this analysis. It was found from this analysis that major issues of the manager is that they are forced to make choices based on the individual working relationship with the employee rather than the actual performance of the employees. These managers do not shift from their existing working methodology. Another important change is the shift from confusion ideology to a different social ideology. Managers who have strong cultural orientations refuse to make the change and feel conflicted in following the newer ideologies. There is a different form of context and meaning for leadership, management, motivation or productivity in the perception of the Chinese managers. In Chinese families and tradition, there is a practice of co-existence which has been found.
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