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upgraded, especially in the coastal cities. Educational development is undergoing at a tremendous pace in China, thus it is no longer difficult to hire high quality labour force in China today. Many successful foreign investors have even credited their success in China to their ChinaÆs local staff. One big problem that is causing headache to foreign investors is how to maintain good relationship (Guanxi) with the local staff. First of all, top management should cultivate the companyÆs vision and values into the employees because what the local people are taught under ChinaÆs educational system may crash with the foreign management system. Thus only by letting the employees understand the company better can allow the company to function better. Chinese emphasize very much on courtesy and face-saving. This has to do very much with ChinaÆs traditional culture, and courtesy can be seen in every aspect in the business world. Being courteous to government official, cooperative partner and staff is thus essential. Senior president of ChinaÆs Siemens Company has rated courtesy as the top importance while summarizing his ChinaÆs experiences. Besides displaying courtesy on general commercial affairs, respecting traditional customs and practices is also vital. Chinese people are very hospitable, but their self-esteem is very strong and they pay very much attention on how other people view them and their attitude towards them. This phenomenon can be seen greatly in Northern China, which is associated with æface-savingÆ. While doing business with the counterpart or partner, it is essential to give face or respect to the partner or the other party, so that in this way strong cooperation can be fostered and the business will be able to grow and last. Many foreign corporations have strict requirements on their staff in their home country, however in China, this management method may backfire. Past experiences have shown that this kind of strict management method may not be suitable for the ChineseÆs gentle personalities. EmployeesÆ morale will be affected and they may lose the willingness and motivation to work in the company. Thus handling organizational relationship in China context is a necessary skill for foreign investors to acquire in order to handle interpersonal problems in the Chinese way. It is important for foreign investors to be flexible in their management and be sensitive to ChinaÆs culture in order to devise an ideal management system best suited for their
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