Cross-Cultural Management: RDH, Guanxi, and Leadership Analysis

This case study analyzes the Roaring Dragon Hotel (RDH), a state-owned enterprise in China, and its challenges in cross-cultural management. It examines the cultural characteristics of Guanxi and Mianzi, explaining how they contributed to the failure of a management training program. The report discusses leadership competencies derived from Trompenaars' diffuse societies and introduces the Competing Values Framework. It highlights the importance of understanding cultural nuances, such as the emphasis on relationships and face (Mianzi), and their impact on organizational success. The analysis suggests that the RDH can benefit from adapting to a more formal culture and providing flexibility to employees. The study also recommends periodic cultural audits and behavioral interviews to maintain a positive organizational culture and ensure long-term business prosperity.

Running head: CROSS CULTURAL MANAGEMENT
Cross Cultural Management
Name of the student
Name of the University
Author note

1CROSS CULTURAL MANAGEMENT
Executive Summary
The primary purpose of this report is to elucidate on the cultural characteristics of the Guanxi
along with the Mianzi that can cause an organization to fail. The report states about the
leadership competencies that can be learnt with the help of diffuse society of Trompenaars
and the using of the Competing Values Framework by the management of Roaring Dragon
Hotel.

2CROSS CULTURAL MANAGEMENT
Table of Contents
Introduction................................................................................................................................3
Cultural Characteristics..............................................................................................................3
Leadership competencies...........................................................................................................4
Competing Values Framework..................................................................................................5
Conclusion and Recommendations............................................................................................6
References..................................................................................................................................8

3CROSS CULTURAL MANAGEMENT
Introduction
Cross-cultural management refers to study of the management within the framework
of the cross-cultural context. It is indicative of effect of the societal culture on the managers
along with the management practice (Walker and Soule, 2017, p.2). Roaring Dragon Hotel
(RDA) is the name of the state-owned enterprise that acted as the guest house for the visiting
dignitaries along with the officials. This report discusses about the cultural characteristics like
the Guanxi along with Mianzi and how they contributed to the failure of the management
training program which was undertaken by the Hotel International Group (HIG). This report
elaborates on the leadership competencies which can be learnt from that of Trompennars
diffuse societies. The report talks about the introduction of the Competing Values Framework
Culture Model to the workers of the RDH management team and how it can help in
facilitating the efforts of the management.
Cultural Characteristics
The management training program which was undertaken by the HIG failed on
account of the cultural characteristics of the Guanxi along with the Mianzi. Guanxi refers to
form of the asymmetrical exchange of the favours in between the individuals which is based
on the enduring sentimental ties. The enhancement of the public reputation can be said to be
the aspirational outcome in relation to the cultural norms of Guanxi. Guanxi can help in the
operation of the cultural along with the institutional elements and the networks of the Guanxi
can be said to be a fundamental aspect in relation to the Chinese social structure (Anitha,
2016, p.24). It can be stated to be pervasive within the framework of the mainland China
along with the Chinese cultural areas. Guanxi is related to the maintenance of the deep
interpersonal relationships in between the individuals. The people believing in this kind of the
culture partake of the social activities after the work hours that can help in the area of making

4CROSS CULTURAL MANAGEMENT
the connection with the people. The principle of Chinese Guanxi is that the relationships have
to be cultivated on that of the daily basis that can help in building the effective relationships
with the people. The Guanxi culture can contribute to the failure on account of the fact that it
lays stress on the aspect of the nepotism and it does not pay attention to the qualification,
abilities along with the experience of a person (Al Saifi, 2015, p.164). The training program
failed as the present culture did not value the essential elements like the talent, education
along with the creativity. These elements can be said to be integral for the success of any kind
of program and the lack of these elements have a detrimental effect on the business.
The characteristics of Mianzi talks about the importance of the face which is
indicative of the sociological manifestation of desire of retaining the social stability. It is
representative of the need of being respected by the other people that can help the people in
being free from any kind of the embarrassment in the case of the social interactions
(McGregor and Doshi, 2015, p.10). The relationships within China are maintained by giving
the face and by increasing the prestige of the friends. The emphasis on the aspect of status
can be said to be a drawback in relation to the Mianzi culture. On the basis of the cultural
characteristics, the two business that have the same kind of the position can be instrumental
in holding a relationship together. The carrying out of the business should not depend on the
aspect of the reputation but rather on the benefits that the different business can get from each
other.
Leadership competencies
There are significant leadership traits that can be learnt with the help of the
Trompenaars diffuse societies. It can help in understanding the cultural characteristics of that
of Confucian culture that can work to the benefit of the Roaring Dragon Hotel of south-west
China. The model of Fons Trompenaars talks about the fact that the cultural differences can
be instrumental in creating a better understanding in relation to the reality. The concept of

5CROSS CULTURAL MANAGEMENT
Trompenaars lays stress on the fact that the importance should be laid on the aspect of the
standards along with the values that can help in building the collaboration with the other
people. The aspect of the universalism is an important attribute of a leader and it can help the
leader in winning favour of the people (Laforet, 2016, p.381). It lays stress on the tenet of
individualism that helps in perceiving the human beings as the individuals within the wider
society. The individualist culture can be said to be related to ideas of western world and it can
help a leader in working in the proper path. Trompenaars states that the emotions should be
controlled within a given culture that can help them in the area of assimilation with the
people of the other culture. According to Trompenaar, the people who live in the diffuse
culture are more adept at handling the various kinds of challenges that can act as a good force
for the success of a business (Carroll, 2015, p.56).
The public along with the private space should be interwoven that can help in the
process of building the right kind of the culture. The people who live in the diffuse culture
have to protect the private space that can help them in getting the easy access to that of public
space (Whelan, 2016, p.585). The people who live within the diffuse culture lay great deal of
value on the aspect of the formality which can help in ensuring the success of the business.
The leaders should have the cultural intelligence that can help them in adjusting themselves
to the various kinds of the cultural norms along with the behavioural patterns. The problems
in the present age cross the borders and the leaders should have this competence that can help
them in thriving in the business. It can help the leaders in carrying out the communication in
an effective manner and in building the diverse network that can help in solving the
problems.
Competing Values Framework
The Competing values Framework can help in providing guidance in relation to the
operation of a company and it can help the employees in the area of collaboration. The clan

6CROSS CULTURAL MANAGEMENT
culture talks about the high degree of the flexibility and it lays focus on the internal needs of
the employees of a company. The organisations that have the clan culture believe that the
fostering of the good relationships can prove to be pivotal for the success of a company. The
hierarchical culture can be said to be extremely formal and the organizations that believe in
this kind of culture have the structured working environment (Dyer, 2018, p.34). The work
process can be said to be efficiently organised that can help a company in working in the
smooth manner. The creation of the formal rules along with the policies are the basic
framework that helps in providing the stability to an organization (Taneja, Sewell and Odom,
2015, p.47). In the market culture, the employees are aware regarding the position of the
company and the appeal of the company towards the suppliers along with the customers can
be said to be imperative for the success of these kind of an organization. The managers can
take recourse to this culture that can help in providing the inspiration to the employees.
The company in the case of having the adhocracy culture can help in providing the
employees with the vision of the future that can help the management in the area of adapting
itself (Guiso, Sapienza and Zingales, 2015, p.65). It lays emphasis on the improvement
process along with the flexibility that can help the company in the area of innovation. The
management team of RDH can make use of this model that can help the company in carrying
out the various processes of the management in a co-ordinated manner. The managers of
RDH can provide the flexibility to the employees that can ensure the success of company in
long term. The working environment which is friendly can be provided to employees that can
help the managers in the retention of the young employees in the company (Scott et al., 2018,
p.89). The employees should be provided with the goal in RDH by the managers which can
be instrumental in increasing the reputation of the company. RDH can bring about the
innovation that can help in the creation of the new ideas and in the retention of the
employees.

7CROSS CULTURAL MANAGEMENT
Conclusion and Recommendations
Guanxi culture can lead to failure of the company on account of the fact that it lays a
great deal of emphasis on the aspect of the nepotism which can have a bad effect on
reputation of company. It does not focus on the abilities along with the knowledge of a
person and hence it can have a negative impact on the long-term development of company.
The establishment of a formal culture can help a company in adjusting to the other cultures
that can ensure prosperity of business. The people who are in the management of RDH can
provide flexibility to workers which can help in developing a company. It can be
recommended that Roaring Dragon Hotel can conduct the periodic culture audits that can
help the organization in getting the right amount of the benefits (McSweeney,2016, p.50).
The organization can take recourse to the process of the behavioural interview that can help
the company in maintaining a positive culture.

8CROSS CULTURAL MANAGEMENT
References
Al Saifi, S.A., 2015. Positioning organisational culture in knowledge management
research. Journal of Knowledge Management, 19(2), pp.164-189.
Anitha, J., 2016. Role of Organisational Culture and Employee Commitment in Employee
Retention. ASBM Journal of Management, 9(1).
Carroll, K.E., 2015. A question of culture: The impact of college major and personality on
pursuits of different types of company culture.
Dyer, C., 2018. The Power of Company Culture: How any business can build a culture that
improves productivity, performance and profits. Kogan Page Publishers.
Guiso, L., Sapienza, P. and Zingales, L., 2015. The value of corporate culture. Journal of
Financial Economics, 117(1), pp.60-76.
Laforet, S., 2016. Effects of organisational culture on organisational innovation performance
in family firms. Journal of Small Business and Enterprise Development, 23(2), pp.379-407.
McGregor, L. and Doshi, N., 2015. How company culture shapes employee
motivation. Harvard Business Review, 11, pp.1-13.
McSweeney, B., 2016. Hall, Hofstede, Huntington, Trompenaars, GLOBE: Common
Foundations, Common Flaws. In Transculturalism and Business in the BRIC States (pp. 39-
84). Routledge.
Scott, T., Mannion, R., Davies, H. and Marshall, M., 2018. Healthcare performance and
organisational culture. CRC Press.
Taneja, S., Sewell, S.S. and Odom, R.Y., 2015. A culture of employee engagement: A
strategic perspective for global managers. Journal of Business Strategy, 36(3), pp.46-56.

9CROSS CULTURAL MANAGEMENT
Walker, B. and Soule, S.A., 2017. Changing company culture requires a movement, not a
mandate. Harvard Business Review, pp.2-6.
Whelan, C., 2016. Organisational culture and cultural change: A network
perspective. Australian & New Zealand journal of criminology, 49(4), pp.583-599.