An issue that has received an increasing amount of research attention lately is that of Guanxi. Guanxi (pronounced guan‐shee) refers to networks of relationships and favours that influence business activity throughout China. It is an ancient system and is based on informal relationships; as opposed to Western management practice, which is based largely on formal agreements and written contracts. With the increasing economic power of China, Western businesspeople are faced with an increasing need to be able to not only operate in non‐Western systems, but also understand the perspectives and values of the millions of Chinese people currently working outside of China. Guanxi systems depend on reputations and trust between individuals and mean that social interactions and social needs become much more important than in Western (individualist) contexts.

QUESTION

While admitting that different cultures give different emphases to various work practices (such as the importance of seniority as counted in years of service to the company), do you see a common core of management tasks across cultures? Do you think generational differences are as important as cultural differences?