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Home » Opinion » China Knowledge
Tough for expat CEOs to learn China ropes
May 10, 2010, Monday
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Print Edition
Print Edition
AS China's economy continues to bounce along, human resource experts predict that an increasing number of non-Chinese executives will be bailing out of their overseas assignments at multinationals in the country to join local employers.
Chinese companies with global ambitions are welcoming these job-seekers with open arms. With many Chinese companies developing more culturally diverse management teams, the resumes of foreign candidates are looking attractive. That's particularly true for globe-trotting foreigners with stints at Western multinationals in China.
But the transition from multinationals to Chinese firms is not always easy. HR managers and recruiters report that turnover of foreign expats at Chinese companies is high, and it's increasingly common to hear about expat resignations being handed in less than a year after arriving at their new employers.
Cheng Yuan, country manager of Russell Reynolds Associates, an executive search company, notes that of the dozen Western executives who work for Chinese companies she has interviewed recently, many have hit the rocks with their employers.
The trouble is China is changing rapidly, both economically and socially, so getting a grip on what is "normal" isn't straightforward, even for locals.
Even foreigners who have worked for multinationals in China and reckon they have learned the ropes are often in for a jolt when they join a local firm.
"For Chinese companies, the headquarters is here," says Lan Kang, a partner at Korn/Ferry International, an executive search company. "If they hire a CEO, this person needs to manage everything from sales, production and R&D and make every decision. So the demand on that talent is very comprehensive. In comparison, the scope of a country general manager/CEO's role at a multinational's Chinese operation is relatively narrow."
Despite the ambiguity of a CEO's tasks, there's no question in anyone's mind who the boss is at a Chinese firm. Non-Chinese executives are often flummoxed by the rigid hierarchical structure of Chinese companies, in which what the CEO says goes with no questions asked.
Having studied the leadership styles of CEOs around the world, Wayne Chen, managing director of northeast Asia for Hay Group, a global management consultancy company, says Chinese executives are more inclined to give orders, which the rank and file are expected to follow.
For their part, Western leaders lean more toward a coaching style of management with an aim to inspire, guide and engage staff around a shared vision.
"The coercive style works in China because leaders are like parents. They love you and want you disciplined and working hard," says Mary Fontaine, global managing director, leadership and talent practice of Hay Group. "In the US, coercion can't work as people don't feel like they can't think for themselves."
And unlike in China, she says, Western corporate leaders "are taught to delegate and use their staff well," with other executives such as the chief financial officer being more a CEO's peer, rather than subordinate.
(Reprinted with permission from Knowledge@Wharton,http://www.knowledgeatwharton.com.cn. All rights reserved. Shanghai Daily condensed the article.)
Chinese companies with global ambitions are welcoming these job-seekers with open arms. With many Chinese companies developing more culturally diverse management teams, the resumes of foreign candidates are looking attractive. That's particularly true for globe-trotting foreigners with stints at Western multinationals in China.
But the transition from multinationals to Chinese firms is not always easy. HR managers and recruiters report that turnover of foreign expats at Chinese companies is high, and it's increasingly common to hear about expat resignations being handed in less than a year after arriving at their new employers.
Cheng Yuan, country manager of Russell Reynolds Associates, an executive search company, notes that of the dozen Western executives who work for Chinese companies she has interviewed recently, many have hit the rocks with their employers.
The trouble is China is changing rapidly, both economically and socially, so getting a grip on what is "normal" isn't straightforward, even for locals.
Even foreigners who have worked for multinationals in China and reckon they have learned the ropes are often in for a jolt when they join a local firm.
"For Chinese companies, the headquarters is here," says Lan Kang, a partner at Korn/Ferry International, an executive search company. "If they hire a CEO, this person needs to manage everything from sales, production and R&D and make every decision. So the demand on that talent is very comprehensive. In comparison, the scope of a country general manager/CEO's role at a multinational's Chinese operation is relatively narrow."
Despite the ambiguity of a CEO's tasks, there's no question in anyone's mind who the boss is at a Chinese firm. Non-Chinese executives are often flummoxed by the rigid hierarchical structure of Chinese companies, in which what the CEO says goes with no questions asked.
Having studied the leadership styles of CEOs around the world, Wayne Chen, managing director of northeast Asia for Hay Group, a global management consultancy company, says Chinese executives are more inclined to give orders, which the rank and file are expected to follow.
For their part, Western leaders lean more toward a coaching style of management with an aim to inspire, guide and engage staff around a shared vision.
"The coercive style works in China because leaders are like parents. They love you and want you disciplined and working hard," says Mary Fontaine, global managing director, leadership and talent practice of Hay Group. "In the US, coercion can't work as people don't feel like they can't think for themselves."
And unlike in China, she says, Western corporate leaders "are taught to delegate and use their staff well," with other executives such as the chief financial officer being more a CEO's peer, rather than subordinate.
(Reprinted with permission from Knowledge@Wharton,http://www.knowledgeatwharton.com.cn. All rights reserved. Shanghai Daily condensed the article.)
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