A Case Study of Global Business Issues (GBI 795) from Masters in Business Administration (MBA), Arshad Ayub Graduate Business School (AAGBS), Universiti Teknologi MARA (UiTM), Shah Alam, Malaysia. (February 2018)

1. Working in China: Intercultural
Challenges for German Expatriates
A Case Study presented by
UiTM AAGBS MBA Program students:
Manuel Denner
2017453078
Farahdiba Abdullah
2016187581
Regina Jin
2017414822

2. 1. Overview of the Case
2. Expatriation Theory
3. Motivation for being an Expat
4. Intercultural Hurdles
5. Quality of Family Life
6. Conclusion
7. Questions
Outline

3. Problem Statement
The expatriation of Mr. Schulz to China
(International Human Resource Management Case)
How to avoid problematic situations in
expatriation that are related to culture,
corporate policy, and family life?

4. Overview of the Case
• Mr. Schulz, Operations Manager at XYZ
• Assigned to go to China
• After returning from China: New position
as COO
• The perks of being an
expat

5. • Intercultural hurdles that are experienced
by expats and why they are saying:
“NO, thanks!“
• What to do when the entire family has to
move?
Overview of the Case

6. • Mr. Schulz:
– Financial benefits
– Career opportunities
– Intercultural hurdles
• Mrs. Schulz:
– Find equivalant work in China
– What about her job in Germany once they come back
• Eldest son:
– How to find work?
– Did an apprenticeship in Germany  not recognized by Chinese
labor market
• Two youngest children:
– Find good school  costs born by company
Major Concerns of Mr. Schulz’
Family

7. Expatriation Theory
• The Expatriate Cycle
Source: Adler (2008)

8. Motivation for Being Expat in China
Source: Expat Insider (2017)

9. Motivation for Being Expat in China
Source: Expat Consult (n.d.)

10. Intercultural Hurdles
Hofstede five Dimensions
• Power Distance:
– How people accept the inequality
in distribution on power in society
– China has high Power Distance
• Individualism vs. Collectivism
– How personal goals and needs are
prioritized vs. the goals and needs
of the group/organization
– China is a collectivism culture
• Uncertainty Avoidance
– How comfortable people are with
changing the way of work and life
or if they prefer the known system
– Germany has high Uncertainty
Avoidance
Source: Hofstede Insights (2018)

11. Intercultural Hurdles
Private Life
• Social environment
– New friends, colleagues etc.
• Climate/Air pollution
– In Germany: Air Pollution Index
higher than 50 is considered as
high risk
– In China Air Pollution Index is in
average a lot higher
• Every day tasks
– Grocery shopping, transportation,
manage household
Air Pollution Index Beijing
Source: Statista (2017)

12. Intercultural Hurdles
Business Life
• Communication
• Chinese hierarchy system
Communication Punctuality
Problem Solving Network

13. Quality of Family Life
• Affection of the family
• Family situation influence
success of expat
• Challenge to be a expat
spouse (work, social
environment etc.)
• Children adaptation to new
environment
• Language and culture
barriers
Source: Expat Insider (2017)

14. Conclusion
• Company policies to help making difficult
decisions  Expatriation Theory
• Motivation to become an expat
• Intercultural hurdles in business and
private life
• How to uphold the quality of family life

15. Questions
1. What are the difficulties faced by western managers working in China
and what are the intercultural challenges?
2. What knowledge and skills should the western manager learn or improve
to better cope working in China?
3. What are the steps for successful expatriation?
4. How can a corporate policy positively influence the dual career concept
and support difficult decisions for other family members (school, work,
etc.)?

16. References
• Adler, N. J. (2008). International Dimensions of Organizational Behavior. Thomsen
South West 5th edition, USA
Expat Insider (2017). China: Where your career soars but your health suffers. Retrieved
from https://www.internations.org/expat-insider/2017/china-39208
• Expat Consult (n.d.): Gute Gehälter für Expats in China. Retrieved from
https://www.expat-consult.de/internationales-arbeitsrecht-und-verguetung/gute-
gehaelter-fuer-expats-in-china/
• Hofstede Insights (2018): Country Comparison. Retrieved from
https://www.hofstede-insights.com/country-comparison/china,germany/
• Holzmüller, M. (2015): Entsendung nach China. Retrieved from:
http://interculturecapital.de/entsendung-nach-china-chance-und-herausforderung-auch-
fuer-den-partner
• Sinojobs (n.d.): Arbeiten in China: Interkulturelle Herausforderungen für Deutsche.
Retrieved from https://www.sinojobs.com/karriere-
bewerbung/karriere/interkulturalitaet/arbeiten-in-china-interkulturelle-
herausforderungen-fuer-deutsche.html
• Statista (2017): Average montly air quality index of Beijing. Retrieved from
https://www.statista.com/statistics/754055/china-average-monthly-air-quality-index-of-beiji