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Managing the Chinese workers (Part 3)

3.  Employee treatment

 Often foreign companies in China are not getting the same direct results from similar corporate policies and procedures. There are many reasons for this happening and I would like to share my insights on some of these reasons.

 

  •     A.   Paying fines
  • There is a common practice in many state and private owned companies to discipline errant workers. And that is to fine them for misbehavior, flouting company rules, insubordination, poor workmanship at work, etc. The fine could be ¥10 for being late at work for less than 30 minutes or for not following the assembly instruction correctly. I have come across a company where the managers and engineers were fined a month salary because of defects found at customer factory.

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    Managing the Chinese workers (Part 2)

    2. Nepotism

    The next most common issue is the nepotism which the local managers are developing to strengthen their position and security in the company. This is least understood by expatriate managers as the scale of the nepotistic network is obscure and they do not bother to find out the relationship of the employees to the hiring managers.

    It is very common to find kinship among the Chinese in every place. You have “Little China” dominating the Los Angeles Chinatown and “Little Taipei”, which used to control the Chinatown two decades ago, had been driven out to another district. In a same factory in Guangzhou, you will find the “Shandong Gang”, “Hunan Gang” and “Dongbei Gang” working in separate groups on the production floors. Because of clustering of gangs, you can easily incite brawls and fights among the gangs as each of them have their preferences, distastes of others, protective over their gang members and wanting to be “The Big Brother” in the factory.

     

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