‘No great difference’ between expat and local managers in China
New research published by the LSE investigates the pros and cons of multinational companies using local versus expat managers in China.
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Mr Zhongxia's research focused on the differences between having a Western versus a local manager on local employees’ satisfaction and turnover at multinational firms in China. His research was based on a survey of 123 local Chinese employees of wholly owned foreign companies or joint ventures in China.
He said the survey results "clearly supported" the assumptions about the beneficial impacts of Western management styles. But he added: "More surprising to me was that whilst ‘power distance’ is more evident with Chinese supervisors, the survey showed no significant difference between Western and Chinese managers in terms of adopting participative management styles and applying procedural justice in promotion decisions. The Chinese managers were just as likely to utilise these management styles as Western managers."This could be the result of the Chinese managers being exposed to the multinational environment and adopting the parent company’s practices, or a reflection of China’s increasing internationalisation, but is a clear indication managers at multinationals will adapt and adhere to these norms regardless of nationality."Of course, the survey I conducted was limited and the issue warrants further research, not least into whether the same practices are taking hold at Chinese firms. Nonetheless, the study points to the so-called ‘Western’ management style becoming increasingly global, and enjoying high levels of understanding and acceptance by Chinese managers as well as employees."This should give more multinationals the confidence to make the shift from expatriate to local management at a relatively early stage – which given the expense and cultural risks associated with employing expats long-term, should come as something of a relief."Access hundreds of global services and suppliers in our Online Directory Get access to our free Global Mobility Toolkit
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