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華為公司的國際化-以其匈牙利子公司為例 - 政大學術集成

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(1)國立政治大學商學院科技管理與智慧財產研究所 碩士論文. 政 治 大 How Huawei Corporation Internationalizes:. 立. the Case of Its Subsidiary in Hungary. ‧ 國. 學 ‧. 華為公司的國際化-以其匈牙利子公司為例. n. er. io. sit. y. Nat. al. Ch. i n U. v. 指導教授. g c h豐i :e n吳. 研. : Blanka V. Bognár 伯 蘭. 究. 生. 祥. 博. 士. 中 華 民 國 一 零 五 年 七 月.

(2) Abstract The purpose of this study to understand the cross cultural aspect of the internationalization and globalization. The international business, organizational behaviour, human resource, psychology and anthropology origins of the cross cultural management studies are examined. The research is a case study of the cooperation and communication misunderstandings in the Huawei Technologies Hungary corporation, also showcasing the training and extra job activities topics. According to Hofstede are. 政 治 大. cultural dimensions, the differences between the Chinese and Hungarian culture were. 立. compared. Findings suggests that there is high correlation between language barrier and. ‧ 國. 學. stress from the inefficient work. With China becoming increasingly important to the global economy, understanding the Chinese culture will benefit Chinese companies and. ‧. the Western companies that seek to achieve successful cooperation in business.. Nat. sit. n. al. er. io. Huawei. y. Keywords: Cross cultural management, Culture, Communication Hungary, China,. Ch. engchi. i n U. v.

(3) Acknowledgments. I would like to thank my teacher, Wu FengXiang his patience and kind guidance with my thesis. I am utmost grateful for his support and that he didn’t give up on me, even though I put him through a lot. I owe a big thank to Michelle Chen for her help though my study break and after for always take her time to explain the processes and paperwork to me. She also helped. 治 政 大 Hungary, especially towards I am also very thankful to the Huawei Technologies 立. me with a lot with the applications.. the Terminal Team, which I had the honor to belong to. They give me tremendous. ‧ 國. 學. support and help during my time with them and even after. I want to especially thank to. ‧. my supervisor, Xiong Yi for his guidance and kindness.. My classmates, who helped me tremendously during these years, without them I. y. Nat. er. io. sit. wouldn’t have been able to finish. Their friendliness and support motivated me to continue and not to give up.. n. al. Ch. i n U. v. In my native language ‘Thank you’ is ‘köszönöm’. I “köszönöm” to Katalin. engchi. Sogor, who via her work showed me a direction. Without she, this might have never been finished. I also want to express my gratitude toward the Taiwan Ministry of Education, who organize this wonderful scholarship program. It helps many students to live and study in such a great country as Taiwan..

(4) It might sound silly, but at the end I would like to thank our cat, Tiger. He helped me through a very hard period in my life and by just being cute and always by my side, he gave me strength to overcome my depression and finish this thesis.. 立. 政 治 大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v.

(5) Table of Contents List of Tables .................................................................................................................... iii List of Figures ................................................................................................................... iv Chapter 1: Introduction ....................................................................................................1 1.1 Research background and Motivation .............................................................. 1 1.2 Research Purpose .............................................................................................. 2 1.3 Disposition ........................................................................................................ 3. 政 治 大. Chapter 2: Literature Review ...........................................................................................5. 立. 2.1 Cross Cultural Management ............................................................................. 5. ‧ 國. 學. 2.2 Factors that affect the cross cultural management: Cultural layers and dimensions .......................................................................................................12. ‧. 2.3 Problems and challenges ..................................................................................21. Nat. sit. y. 2.4 Summary ..........................................................................................................27. n. al. er. io. Chapter 3: Methodology..................................................................................................31. i n U. v. 3.1 Research approach ...........................................................................................31. Ch. engchi. 3.2 Data collection .................................................................................................32 3.3 Validity and Reliability ....................................................................................33 Chapter 4: Results and Analysis .....................................................................................34 4.1 The Background of Huawei Corporation .........................................................34 4.2 Communication Issues .....................................................................................40 4.3 Training and Education ....................................................................................46 4.4 Extra Job Activities ..........................................................................................50 i.

(6) 4.5 Repatriation ......................................................................................................52 4.6 Summary of the Case .......................................................................................53 Chapter 5: Discussion ......................................................................................................56 5.1 Cultural comparison .........................................................................................56 5.2 Huawei’s cross cultural problems ....................................................................61 Chapter 6: Conclusion .....................................................................................................63 6.1 Conclusions ......................................................................................................63. 政 治 大. 6.2 Suggestions ......................................................................................................64. 立. References .........................................................................................................................66. ‧ 國. 學. Printed ....................................................................................................................66 Articles ...................................................................................................................70. ‧. Web ........................................................................................................................70. Nat. n. al. er. io. sit. y. Appendix ...........................................................................................................................73. Ch. engchi. ii. i n U. v.

(7) List of Tables Table 1 High and Low Context Communication ............................................................ 22 Table 2 Stages of cultural understanding ........................................................................ 24 Table 3 Staging culture in international management research ...................................... 29 Table 4 Original delivery report sample ......................................................................... 45 Table 5 Updated delivery report sample ......................................................................... 46. 立. 政 治 大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. iii. i n U. v.

(8) List of Figures Figure 1 Three levels of uniqueness in human mental programming ............................... 13 Figure 2 Layers of cultural programming ......................................................................... 14 Figure 3 Hofstedes's Dimensions of Culture .................................................................... 18 Figure 4 Huawei's core values .......................................................................................... 36 Figure 5 Huawei worldwide revenue ................................................................................ 38 Figure 6 Infographic on Power Distance .......................................................................... 48. 政 治 大. Figure 7 Infographic on Induvidialism / Collectivism ...................................................... 49. 立. Figure 8 Hofstede cultural dimensions, Comparison of Hungary and China ................... 56. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. iv. i n U. v.

(9) 1. Chapter 1: Introduction 1.1 Research background and Motivation Globalization has defined the business in the last few decades. With the development of the information technology, globalization became a trend towards increasing interdependence among world markets and the diffusion of new ideas, technologies, products services and cultures. The world marketplace today is both impressing and intimidating by the diversity. 政 治 大. of the 200+ national markets a 6+ billion people. On this market, the emerging economies. 立. are becoming the biggest players like Brazil, India and China.. ‧ 國. 學. The enormous growth of Chinese firms in high-tech sectors taken advantage of labour-intensive and low-cost manufacturing propelled China to be global. This astonishing. ‧. high speed in transformation originates in fundamental of classical growth, high-speed. y. Nat. sit. technology learning along with innovation. (Long & Laestadius, 2011) But as soon as the. n. al. er. io. Chinese companies started to internationalize the diversity of the workforce became a relevant aspect of the consideration.. Ch. engchi. i n U. v. Since the cost of the human resource management is one of the biggest of the operating cost at the majority of the international companies, it’s very important to control and adapt it well. If it’s coordinated improperly, the different values, practices, preferences and a different way to approach things will lead to cultural discrepancies preventing productive synergies to develop in a multi-ethnic team. For dealing with international problems, managers of these companies need to think and act internationally too. Their responsibility is to show that a company, which has already proven its competency at home,.

(10) 2 is able to reach higher aims, make higher profits and fulfil those, more complicated goals what the international market requires – but in some ways less familiar, very different cultural and economic environment. In 2014 March, I started to work one of the biggest Chinese international telecommunication company, at Huawei Technologies in Hungary. It was my first real job, I had no experience with multinational corporations and their workflows. I was amazed how. 治 政 the carpet and how much people don’t fully comprehend大 the corporate, the processes and 立. complicated the processes are, how many unresolved problems are just being swept under. ultimately, each other. As someone who lived a sensible amount of time in Chinese culture. ‧ 國. 學. and had a moderate knowledge of the language and understanding of the culture, I had a. ‧. special view on both nationals. I managed to work with my Chinese colleagues much more effectively, then those who had not these qualities. My main motivation for the research was. y. Nat. al. er. io. sit. to gain a full picture of the company and its processes and the effect of the multi-culturalism.. n. iv n C The purpose of this study to h help e understand n g c h itheUdifferences between the Hungarian. 1.2 Research Purpose. and Chinese culture, management style and give some hopefully useful and practical advices about how could the company improve the internal cooperation. Problem Statement •. How does the cultural differences manifest through the communication?. •. Will solving the language barrier problem reduces the stress of cultural. differences?.

(11) 3 •. How much cross-cultural conflicts are the topics of internal conversation and. subjects of trainings? •. Is the cross cultural management only the Human Resources Department. responsibility? •. How can the corporation deal with cultural shocks and misunderstandings. between local employees and expatriates?. • •. 治 政 大how to manage that? How relevant problem is the repatriation and 立 How can increase the level of cultural understanding?. What are the differences between the Chinese and Hungarian culture. according to the Hofstede’s cultural dimension?. ‧. 1.3 Disposition. 學. ‧ 國. •. Nat. sit. y. The research has six chapters. The first chapter introduces the background and the. al. er. io. purpose of the research. Also describe my motivation of the study.. n. iv n C h eis nthegmain is, what that affecting factors and what i U and challenges of the managers c hproblems. In chapter 2, Theoretical Framework, I try to explain what cross cultural management. and HR department. Chapter 3 discusses about the methodology of research, following by choice of method as well, as how to collect data for this study and, validity and reliability of case are discussed. Chapter 4 disclose my collected information about the company as well as my personal experiences and what I collected during my interviews. Main topics are the communication, trainings and extra job activities..

(12) 4 Chapter 5, Discussions connects the research with the theoretical framework. Chapter 6 reveals the final results and conclusions.. 立. 政 治 大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v.

(13) 5. Chapter 2: Literature Review 2.1 Cross Cultural Management Cross-culture is a phenomenon that exists since the conquest of market globalization has started: companies expand out of the borders of their country to do business, but keep their culture and principles with them when they enter to another. Even if cultures and customs seem to be similar, they are not the same. Culture is different by its forms, such as. 政 治 大. language, behaviour, cuisine and dressing; and by its contents that are invisible: beliefs,. 立. value systems and social norms. (McClelland 1973). ‧ 國. 學. Management is a concept easy to define: it is called the process of achieving organizational goals by effective planning, organizing, directing, coordinating, and. ‧. controlling of resources owned by the organization in a particular environment. Leaders,. y. Nat. sit. managers, especially the human resource managers working in a cross-cultural environment. n. al. er. io. have to understand the differences and similarities of the company’s own culture and the. i n U. v. other nation’s customs so that the conflicts generated by background can be eliminated easily.. Ch. engchi. Cross-cultural management is not a new concept; it is originated from the ancient international trade and business exchanges. The Egyptians, Phoenicians and Greeks began trading overseas, and learned about business methods in different countries. During the 14th16th century, the Danish, British, and other European merchants had established a trade union; so they had prepared to deal with people from other cultural backgrounds: could understand their language, knew their habits and could successfully avoid confrontation in.

(14) 6 order to achieve smooth and profitable transactions. Businesses and activities like these are the early forms of cross-cultural management, where the merchants and their personal experiences were the only source of information available. The reason why scholars started studying the field of cross-cultural management is lying at the negative experiences of the international trade-concerned giant corporations. Experts of global business activities have failed their theories of ideal management practices when they thought that for international. 治 政 大 knowledge showed that good work in their own countries. Meanwhile, the lack of cultural 立. success it is enough to follow the pattern, and just copy the techniques that were proven to. local results and a prosperous management plan do not guarantee the same revenue numbers. ‧ 國. 學. in a totally different country. Experiences and various perspectives of other cultures were the. ‧. basis of further explorations and research which resulted a new study field we call now cross-cultural management. (Wang 2009). The new field was based on theories and. y. Nat. resource, cross cultural psychology and even anthropology.. n. al. Ch. er. io. sit. researches from the following areas: international business, organizational behaviour, human. i n U. v. International business field is concerned with the issues facing international. engchi. companies and governments in dealing with all types of cross-border transactions. It consists of those activities private and public enterprises that involve the movement across national boundaries of goods and services, resources, knowledge or skills. International business resulted international managers, or in a bigger scale, global managers. By definition Global manager is someone who works with or through people across national boundaries to accomplish global corporate objectives. (Steers, Sanchez-Runde and Nardon 2011) By their different corporate lifestyle, we can distinguish three types of global managers:.

(15) 7 . Expatries: Managers who has long term assignment which involves relocation of the parent company to various countries to oversee the company operations or hired to bring special expertise to the foreign firm. They face-to-face meet colleagues and partners from the different cultures. For successful cooperation, they need to deeply understand the culture and the culturebusiness relationship. Learning the local language is highly recommended, to. 治 政 大and keep the overall corporate overemphasizes the regional tasks and goals 立 better understand local issues – but at the same time they have to avoid to. objectives in mind.. ‧ 國. 學. . Frequent Flyers: Managers with particular expertise who gets short time. ‧. assignments to fly in and plan, implement or control a specific operation.. sit. y. Nat. Often they deal simultaneously with partners from multiple culture, so. io. er. learning one language my no longer be efficient. The balance between face-to face and virtual communication and have a moderate understanding of the. n. al. Ch. i n U. v. cultural differences and dynamics in general and culture-business relationship around the globe. . engchi. Virtual managers: They perform most of their task and responsibilities via information networks and digital technologies. They often don’t meet with the people they work with and have only a modest or worst case no understanding of cultural differences and variations of business practices.. Organizational behaviour studies, which is the he study of human behaviour in organizational settings, the interface between human behaviour and the organization, and the.

(16) 8 organization itself (Moorhead andGriffin,1995), inspired the how can be the cross cultural management be divided into three major categories regarding to this: macro, concept and micro levels. (Chen 2006) . Multinational enterprises possess two different cultures from two different countries, and they can be influenced by unfavourable factors of crosscultural behaviours. This is a cross-culture macro level.. . 政 治 大 restructuring policies. When two companies decide to unify, their cultural 立 The concept level applies mostly in mergers, acquisitions, and corporate. backgrounds and their own regulations such as employee recruitment system. ‧ 國. 學. or group work style, becomes a subject of negotiation, for the best possible. Individual cultural differences. This is basically conflict-management in. sit. y. Nat. . ‧. future cooperation.. io. er. micro level: old and young, man and woman, positions, hierarchy, communication etc. the problems need to be faced every day.. n. al. Ch. i n U. v. Change and transformation are the key points of cross-cultural human resource. engchi. management. In different stages of international operations, human resource management has different tasks and goals. During the initial and developing stage of internationalization, there are two types of strategies implemented: the first one is called human resource management under parent company strategies. Here, the multinational enterprises focus on directing personal assignments sent by the headquarters, for example, the recruitment, job analysis, work performance assessments, and salaries management are set for the expatriates from the parent company or a third party. The second one is called human resource.

(17) 9 management in multi-nations strategies. In this kind of strategy, the focus is on the development of multi-national markets and pays more attention to the local or destination countries’ management. In the following, globalization stage, multinational enterprises implement global strategies of human resource management, where international recruitment and personnel management are the main tasks. (Xu, 2006) In the course of international operations, characteristics of the company’s. 治 政 transforming. In the study of cross-cultural management,大 diversity refers to the variety of 立 management and the attitude of its staff forms two important features: diversity and. national cultures in the operating environment of multinational enterprises. From the human. ‧ 國. 學. resource manager’s perspective, internationalization of an enterprise, or just an office is a. ‧. process that mixes single, independent organizational cultures into a multicultural environment. As the objects of this process have different backgrounds and different cultural. y. Nat. er. io. sit. features, the mission of cross-cultural management is also the diversification of the methods and contents used by the manager.. n. al. Ch. i n U. v. It is very important for managers of multinational companies to recognize the role of. engchi. culture and its influence on the employees who work in foreign organizations. With the learning from the cross cultural psychology, one can understand and try to gain more insights of people’s motivations to work, ethics in the workplace, leadership styles and the employees’ ability of learning in different societies under different conditions, that will be profitable for both the company and the individuals. In other words, if a manager has a good notion about the factors and leading methods that effectively motivate the employees, then he is able to move one big step closer to making them constant outstanding performance..

(18) 10 Literally speaking, the manager and subordinates need to be “in the same page” to have a fruitful cooperation, and for this, they must be clear about the cultural variations and the given nation’s character. Effective communication and mutual understanding is crucial in group work: it makes people motivated about their job, helps them to form a sense of belonging, and enhances the employees’ loyalty to the company. But the channels of communication are. 治 政 behaviours – all the things different in every country and大 cultural region. 立. closely related to culture and language, thus influenced by value orientations, habits,. For example, some countries are more hierarchical than others, and in addition, there. ‧ 國. 學. could be variations even within a region due to corporate ethics and regulations. There is a. ‧. question here worth to ask: why is not yet developed a body of practical insights in terms of utilizing scientific knowledge in creating innovative techniques that are made to be suitable. y. Nat. er. io. sit. for specific industrial growth, organizational effectiveness and individual satisfaction? (Bhagat, Triandis and McDevitt 2012) This would require a useful data bank to summarize. n. al. Ch. i n U. v. all those science-based findings containing country-specific, industry-related information;. engchi. which could be used as a basis of research about the different fields, in order to make manager’s work more effective, and create an enjoyable working environment that also fits the needs of the corporation and industrial development. This body should have variations depending on the country/region/industry monitored, and there could be various columns regarding the major factors that are possibly responsible for differences, such as geography, climate, language, culture, religion, historical background and so on..

(19) 11 From anthropologies’ studies we can understand that history can also affect a certain country or area, in terms of cultural variations and the ability to change, and the welcoming or rather refusing attitude towards any foreign impact – in this case in the form of an international company. Since the 15th century, Islam culture has been the most influential part of life in the Middle-Eastern Arabic countries. Despite the fact that now 20 percent of the world’s population belongs to this cultural region, it is a closed society and has not seen any considerable amount of technological innovation in recent years – in contrary to the 12th. 治 政 大the ancient Greek philosopher’s century, when Arabic, as the language of science, inherited 立. work and then preserved the new discoveries of algebra and medicine to the rest of the world.. ‧ 國. 學. (Bhagat, Triandis and McDevitt 2012) On the other hand, some countries with different. ‧. socio-political and cultural background are very effective in innovation and accepting various, new technologies and ideas. As living in a globalized world, the constant need of. y. Nat. er. io. sit. information, development and further research make a major portion of a corporation’s life, and the most important conditions of survival in a fierce competition. For example,. n. al. Ch. i n U. v. Scandinavian countries have developed a successful model of modern social system, which. engchi. has turned into a supportive and also profitable environment for various organizations and scientific innovations. In this case, the low level of population was not a problem in reaching goals, but dealing with an economy in a relatively poor status might not be this easy. Recessions and the constant lack of resources are usually become the seedbed of talented workforce immigrations. On the other side, this flow of talented people made other, more prepared countries successful: in America, the immigrant labours have long been the underpinning of the country’s economic success. (Han 2012).

(20) 12 2.2 Factors that affect the cross cultural management: Cultural layers and dimensions The anthropologist Kluckhohn (1954) states that culture is to society as memory is to humans. No human being can function without relying on memory, and no society can function without shared norms and knowledge of its physical, historical, social, political and economic environments (Bhagat, 2012). For example, management in western cultures has a different meaning than in countries such as Japan, South Korea or China: group work and. 治 政 大self-centred way of working. US where the focus is on the individual results and a more 立. helpful, supporting leaders are highly valued, in contrary to Western Europe, Canada or the. (Kuruvilla and Chung, 2013). ‧ 國. 學. Culture is a highly complex kind of reality (Usunier 1998). Most of the cultural body. ‧. is invisible, it can be imagined like a top of an iceberg. Cross-cultural research situations call out those focus points (sometimes conflict points) that are showing the differences of one. y. Nat. er. io. sit. culture and another, one manager and another, or one employee and another. The employment system, institutional and legal systems, value systems, time orientations make. n. al. Ch. i n U. v. the hidden parts of the imaginary iceberg, if we hold on to the assumption, they are under the water.. engchi. “Culture” has a compound definition: it includes practices (as things we are doing in a certain place) and values (the way we do them). (Redfield, 1962). Systems of beliefs, norms, attitudes, behavioural intentions and values are included in the definition of culture according to Triandis (1972). It is a shared system of representations and meaning (Goodenough, 1971; Geertz, 1983), can be recognized as basic assumptions and value orientations (Kluckhohn and Strodtbeck, 1961). Geert Hofstede (2001) defines the culture of.

(21) 13 a society as the “collective mental programming” of a group of people in a given nation or geographic locale who speak the same language and have had considerable history in common. In his theory the mental programing of the individual starts with their social environment where they grow up and experience. The programming starts with the direct environment, the family and with time it involves, neighbourhood, kindergarden, school,. 治 政 大 on the other. Although the distinguished from human nature on one side and personality 立 friends, workplace and overall living community. In Figure 1 we can see that culture is. borders between each side is quite blur and still under research by social scientist, one of. ‧ 國. 學. most important lesson is that culture is learnt, not inherited, it acquired by learning and. ‧. experiences. It’s shared between a group (or organization, society) and transgenerational.. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 1 Three levels of uniqueness in human mental programming Source: Hofstede (1994) In Figure 2 we can see the layers of the cultural programming. While in childhood one learns the basic values – good/bad, right/wrong, logical/illogical, beautiful/ugly – later more specific layers are added, like national, professional and corporate. These layers’ determinates one’s practices and the “way of doing things”..

(22) 14. 政 治 大 Figure 立 2 Layers of cultural programming Source: Adapted from Hofstede (1991). ‧ 國. 學. Hofstede also conducted perhaps the most comprehensive study of how values in the. ‧. workplace are influenced by culture. He analysed a large database of employee values scores collected by IBM, between 1967 and 1973, covering more than 70 countries, from which he. y. Nat. io. sit. first used the 40 largest only and afterwards extended the analysis to 50 countries and 3. n. al. er. regions. He introduced four dimensions of preference, or value-differences: power distance,. Ch. i n U. v. uncertainty avoidance, individualism- collectivism and masculinity-femininity. Power. engchi. Distance Index (PDI) expresses the extent of acceptable equality and inequality between people in a society. Hofstede (2001) proposes the power distance as a dimensional national culture: “The extent to which the less powerful members of institutions and organizations within a country expect and accept the power is distributed unequally.” While High power distance index indicates imbalance of power and financial conditions approved by a society, low power distance index societies, instead, stress on minimizing the differences on power and wealth between individuals. In these societies citizen has same equality and.

(23) 15 opportunities (Hofstede, 2001). The level of hierarchical of organizational structure reveals the extent of power distribution. Furthermore, an organization with high autocratic leadership and centralization of authority characterized society with high Power Distance in which the hierarchical structure is dominance (Hofstede, 1983). Uncertainty Avoidance Index (UAI) deals with the extent of the uncertainty and ambiguity that a society can tolerate (Hofstede, 1980). Countries with high uncertainty avoidance ranking try to minimize. 治 政 大 emotional and security to reduce the extent of ambiguity. These cultures are aggressive, 立. unstructured conditions. These rule-oriented societies constitute laws and regulation in order. seeking (Jandt, 2006). However, countries with low uncertainty avoidance index have more. ‧ 國. 學. tolerance and promptly accept changes. Thus, they feel lower need to regulate every. ‧. uncommon situation. This enables the society to take more risks. These cultures are more relaxed, unemotional, and less aggressive (Jandt, 2006). Individualism (IDV) index. y. Nat. er. io. sit. demonstrates the extent that society insists on individual or collective relationships (Hofstede, 1980). Some people put effort on more freedom and caring only for close family. n. al. Ch. i n U. v. member while, collectivist people integrated into strong in-group have more significantly. engchi. concern into the group taught than personal interest (Hofstede, 2001). According to Hofstede in organization, the level of individuality depends on the factors such as educational level, size, history, and culture of the organization. In individualistic work environments, employees “are expected to work rationally according to their own interest, while in a collectivistic culture, “an employer never hires just an individual, but a person who belongs to an in-group” (Hofstede, 2001). One can argue that, collectivist society stress on establishing good and strong relationship, in order to create an integrated group. Thus, they.

(24) 16 emphasize on relationship based business, particularly, first attempt to establish a relationship in order to do business (Svensson, 2010). To Hofstede (2001) Chinese values countries with high willing to establish strong relationship (guanxi) and group thinking ranks as collectivist societies. This dimension refers to extent of role divisions between genders. Hofstede (1980) found that the women’s social role has less variation between different cultures rather than men’s role. He asserts masculine cultures are those who insist on. 治 政 大 culture due to predominant Thus, country can be characterized as masculine or feminine 立. maximum distinction between the roles of men and women in the societies (Hofstede, 1980).. values in the society. High Masculinity ranking emphasizes on culture with high domination. ‧ 國. 學. of male in the society with competitive, assertive, and ambitious traits. On the contrary,. ‧. feminine cultures care more about quality of interpersonal relations and quality of working life. Managers in the masculine work environment are more decisive and assertive while in. y. Nat. er. io. sit. feminine cultures, managers are intuitive and insist on general agreement (Jandt, 2006) The various, distinct values have significant effects on the working methods of managers. n. al. Ch. i n U. v. and companies with interests abroad, often in a place where culture and behaviour can be. engchi. very different. In more individualistic countries, “all members are expected to look after themselves and their immediate families.” Individualistic countries are, for example, France and the United States. Collectivist countries include Vietnam and Pakistan. According to Hofstede, masculinity versus femininity refers to the terms which society identifies as assertiveness versus caring. For instance, Japan and Austria ranked high in masculinity; Denmark and Chile ranked low..

(25) 17 A fifth dimension was added in 1991 based on research by Michael Harris Bond, supported by Hofstede, who conducted an additional international study among students with a survey instrument that was developed together with Chinese professors. That dimension, based on Confucian thinking, was called Long-Term Orientation (LTO) very society has to maintain some links with its own past while dealing with the challenges of the present and the future. Societies prioritize these two existential goals differently.. 政 治 大 traditions and norms while viewing societal change with suspicion. Those with a culture 立. Societies who score low on this dimension, for example, prefer to maintain time-honoured. ‧ 國. 學. which scores high, on the other hand, take a more pragmatic approach: they encourage thrift and efforts in modern education as a way to prepare for the future. (Geert-Hofstede). ‧. In other words, the higher the score the more likely members of the culture think about goals. sit. y. Nat. in a longer term way—decades or lifetimes. The lower the score the more likely members. io. al. er. conceptualize goals and opportunities in terms of the near and relatively known future. This. v. n. of course effects the patterns of decisions that people make and the combinations of. i n C decisions that groups make together.h(Foster 2015) engchi U. In the business context this dimension is related to as "(short term) normative versus (long term) pragmatic" (PRA). In the academic environment the terminology Monumentalism versus Flexhumility is sometimes also used. In the 2010 edition of Cultures and Organizations, a sixth dimension has been added, based on Michael Minkov's analysis of the World Values Survey data for 93 countries. This new dimension is called Indulgence versus Restraint (IND). Indulgence stands for a society that.

(26) 18 allows relatively free gratification of basic and natural human drives related to enjoying life and having fun. Restraint stands for a society that suppresses gratification of needs and regulates it by means of strict social norms. (Geert-Hofstede) In cultures that score high on indulgence, happiness and expressing happiness is always good. In those that score low, happiness and expressing happiness can be bad. Life is not secure and safe in more restrained cultures and people are more careful about how they view their experiences. (Foster 2015). 立. 政 治 大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Figure 3. Ch. engchi. i n U. v. Hofstedes's Dimensions of Culture Source: www.linkedin.com. While studying about culture and cultural differences around the world, nationality and national character are the issues always in the middle of interest. Even researchers link culture to a specific country or countries when speaking about this topic. Everybody had heard about the so-called stereotypes, a more or less accurate form of characterization which describes general, most common attributes of people from other countries. Although.

(27) 19 stereotypes are based on many individual’s congruent experience, and in fact, some does have a good point, the majority is invalid, because of the influence of personal behaviour and the given situation. There is a big possibility of someone not fitting the pattern: you could always meet a Japanese who is not so reserved or polite, talk to a shy, serious Latino or wait long hours for a German, because that specific person doesn’t have the qualities you might expect knowing the typical profile of that country or society – with the words of Ralph Linton “no matter how carefully the individual has been trained or how successful his. 治 政 大his own needs and with conditioning has been, he remains a distinct organism with 立. capacities for independent thought, feeling and action. Moreover, he retains a considerable. ‧ 國. 學. degree of individuality”. (Bhagat, Triandis and McDevitt 2012) Worth to mention. ‧. Goffman’s conclusion here: he said that “culture concerns systems of meaning, ideas and patterns of thought. It represents more a model for the behaviour or members of a given. y. Nat. er. io. sit. group than a model of their behaviour”. (Goffman 1974). So, there is no reason to think about culture as some general pattern fitting to a whole society: it is rather similar to a bunch. n. al. Ch. i n U. v. of activities shared by a particular group of people. Culture can be viewed as a set of beliefs. engchi. or standards, shared by a group of people, which help the individual to decide what is, what can be, how one feels about it, what to do, and how to go about doing it (Goodenough, 1971) But an interesting study of a Swedish writer Selma Lagerlof (Petit, 1960) states that culture is “what remains when that which has been learned is entirely forgotten”. Since culture is not “forgotten”, it is mostly unconsciously covered in individual and collective behaviour and actions with members of the same cultural group..

(28) 20 The cultural environment we born, grew up and live has incredible power to form everyone's way of thinking and behaviour. So that our customs, education, religion and the general norms we respect are highly affected by the characteristics of different cultural backgrounds. Normally, in a large, coherent cultural environment there is major resistance against outside impact, and people have their priorities of supporting the national industries and consume goods that are manufactured on the spot, e.g. South Korea (Kuruvilla and Chung, 2013) In a. 治 政 cultural diversity means another challenge for the human大 resources manager. But it should 立 well-maintained national culture like this, making people understand and accept cross-. not be forgotten that a person is not just a stereotype, and there are a lot of contradictions. ‧ 國. 學. between our principles and actions. It is common to see in Taiwan that a straight-out. ‧. nationalist, who has deep bias toward foreign entrepreneurs or westerners, only favours famous overseas brands and selects import goods when purchasing appliances for his/her. er. io. sit. y. Nat. own home.. Baligh (1994) says that culture is a set of components such as relationships, language and. n. al. Ch. i n U. v. communication, institutional systems and law, values, time orientations and mindsets. He. engchi. states that there must be a fit between culture and the organizational structure, but for that we need to decide whether knowledge is universal or relative, in other words, whether management knowledge is free and independent of context or environment. If we agree that the management knowledge is context free, then the use of culture in international management research makes very little sense, and does not worth studying it. But if we think about culture as various, local ways of doing things, then there is a question of whether these local cultures converge or not, and in what ways. The cross-cultural study of management.

(29) 21 states that they do converge, but the process will be slow so that the related research findings can hold true and stay valid for a long period of time. There is the impact of modern technology which cannot be ignored, neither the differences of ‘modern’ and ‘traditional’, individualism versus collectivism. In reality, the so-called modern culture is based on western values, despite the rich historical and value system of collectivist nations in Asia. Migrations, ethnic group and subculture movements, numerous assimilations have directed. 治 政 大 and a sense of belonging to a complicated definitions. Ethnicity, as a belief based on habits 立 our world to its recent complexity, where the borders of different cultures have even more. specific group of people, with a matter of individualization have led to an interesting form. ‧ 國. 學. where globalization accompanied by fragmentation and singularization, especially in. sit. y. Nat. 2.3 Problems and challenges. ‧. regarding consumption (Firat, 1995). al. er. io. For most of the enterprises, the cultural diversity of different markets often troubles the. n. iv n C managers’ make correct decisions, ithdoes e nnotgnecessarily c h i Uguarantee the desired numbers.. decision-making process, and so has a big effect on the overseas business results. Even if the. How to communicate effectively with the local staff and implement business decisions of the managers abroad? How to choose the right employee who is capable to serve the company well overseas, but in the same time, doesn’t conflict the head quarter’s interests? How to use resources to ease and eliminate internal conflicts caused by different cultures during overseas operations? All these problems are the challenges that business enterprises must face. Communication is the very first trial of international cooperation. If the participants cannot communicate, the cooperation is impossible. If they cannot cooperate effectively, the work is.

(30) 22 much more stress and energy than it supposed to be, consuming unnecessary corporate resources. One of the most obvious difficulties is the language barrier: when people due to their lack of language skill cannot express themselves properly or fail to understand something. But misinterpretation can happen even if the participants do speak the same language but due to their different communication styles. We differentiate high and low context communication, based on the anthropologist, Edward Hall’s work. In high context. 治 政 大more meaning behind the words, exchange information. In high context style there is much 立 the primary purpose of communication is to form a relationship, while in low contest is to. if someone doesn’t aware of that can results big misunderstanding. Asian countries like. ‧ 國. 學. China, Japan or India are usually communicating in high context, to the contrary to the low. ‧. context of the Westerner countries. The main differences are highlighted in Table 1.. n. al. Plainly Coded Message. C Focused on requirements h Written agreements. sit. io. Overt Message. High Context communication Covert Message. er. Nat. Low Context communication. y. Table 1 High and Low Context Communication. Internalized Message iv n U to long term relationship e n g cHigh h i Commitment Spoken agreements. Punctuality. Relaxed about time. Reaction on the surface. Reaction Reserved. Source: Adapted from Hall As culture varies in every country, economic systems, labor costs, and industrial relations systems also can be very different, therefore make the human resources manager’s work more complicated: this means selecting, training, and managing employees abroad. Sending employees abroad and managing human resources globally is a very complicated task,.

(31) 23 because of the different countries into which many firms are expanding now are not only the developed, industrialized, therefore more familiar surroundings anymore, but the so-called emerging financial markets of the world, such as India, Brazil or China. Besides that, every country has strict rules to regulate foreign enterprise operations within its borders: this could vary from special health insurance through working visa constraints to the question of economical stability.. 治 政 大 of businesses abroad. As long the biggest impact on foreign economies, thus on the success 立. There are some factors global management needs to be concerned about, because they have. as managers are able to harmonize their company’s principles with the certain country’s. ‧ 國. 學. economic environment, then they will be able to survive, make progress and keep on earning. The cultural factor is one of the most important part of this: norms and customs that. y. Nat. io. sit. are obvious in the domestic country can be considered rude or invalid in another. er. . ‧. profits.. cultural environment, which requires corresponding differences in practices too. The. n. al. Ch. i n U. v. basic cultural norms of Eastern Asia and the importance of the patriarchal system not. engchi. just affect a typical worker’s view of the relationship to an employer, but also has big influence on the quality of his work and mentality toward the company. Japanese workers have often come to expect lifetime employment in return for their loyalty. As well, incentive plans in Japan tend to focus on the work group, while in the West the more usual method is still to focus on individual worker incentives. Such intercountry cultural differences suggest the need for developing new human resources practices for the more successful adaption to local cultural norms. In.

(32) 24 addition, efficiency can be increased if the members and managers of human resources departments in a foreign subsidiary are the citizens of the host country, or individuals with equivalent knowledge about the local culture and customs. A high degree of sensitivity and empathy for the cultural and attitudinal demands of coworkers is always important when selecting employees to staff overseas operations. There are 4 stages of gaining cultural understanding, as seen as Table 2, and the goal. 治 政 大 Table 2 Stages of cultural understanding 立. is to find a person who is aiming to achieve that.. ‧ 國. It exists when individuals have no knowledge of cultural differences. n. al. Cultural understanding. Ch. engchi. sit er. It takes place when people know there are cultural differences and looking for them.. io. Cultural knowledge. i n U. It is an extension of cultural awareness, when people know what are the differences.. It occurs when individuals are aware of the behavioural and attitudinal subtleties of a culture and often fluent in the local language.. Source: Hill (2009). Businesspeople at this stage are liabilities to their companies and may do more harm than good on overseas assignments. Businesspeople at this stage are less likely to commit social or cultural blunders. Businesspeople at this stage know how to offer appropriate greetings and what behaviours to expect in foreign markets. They observe, catalog, analyse foreign behaviour and look for the reason behind them. Businesspeople at this t stage not just know what behaviours are appropriate, but also understand why those behaviours are correct for that culture.. y. Nat. Cultural awareness. Effect on businesspeople. ‧. Cultural ignorance. Definition. 學. Stages of cultural understanding. v.

(33) 25 As one expert puts it, “An HR staff member who shares the employee’s cultural background is more likely to be sensitive to the employee’s needs and expectations in the workplace—and is thus more likely to manage the company successfully.” . Economic Factors. Differences in economic systems of countries can also lead to misunderstandings in human resource practices. In most cases the actual political practice is the will of the authority that determines what is desirable for the economy:. 治 政 never stop growing in countries that settled to the大 capitalist ideas. 立. it could be decreasing unemployment rates in socialist systems, or big revenues that. Labour Cost Factors. High labour cost is a sign of increasing expenditures by the. 學. ‧ 國. . not enough efficient performance of human resources department. It is essential for. ‧. the company’s future performance to regulate its expenses, thus having a clear idea. sit. y. Nat. of different labour costs and practices – such as overtime work and others – around. io. er. the world is more than necessary. For example, workers in Taiwan average about 2144 hours of work annually, while this number in Hungary is average 1980 hours –. n. al. Ch. i n U. v. one of the several norms and regulations an international enterprise need to know. engchi. about while sending employees abroad. . Industrial Relations Factors. Industrial relations, and specifically the relationship between the worker, the union, and the employer, vary significantly from country to country and have a large impact on human resources management practices. In Germany, for instance, employees have the right to vote and so express opinion regarding new company policies. On the other hand, in many countries, the way of communication is so rough that it is almost impossible for an average employee to.

(34) 26 contact a higher-ranked manager, and sometimes even the existence of worker unions is questionable. There is another dilemma that employees abroad have to deal with, called repatriation. Repatriation is the process of moving back to the parent company and country from the foreign assignment, means returning one’s family to familiar surroundings and old friends. It is very common to talk about fitting-in, and the problems of integration due to. 治 政 大in the company’s compensation of the repatriation problems are very common: changes 立. cultural differences; but the conflicts caused by the returning are often overlooked. Most. policy can affect employee’s income planning in a long run, an extended foreign mission. ‧ 國. 學. and constant lack of contact with the home staff can easily ruin working relationships or. ‧. even the good communication with the parent firm’s leading managers after returning. Besides these, there is a need for adaptive training to get back to the environment which. y. Nat. er. io. sit. used to be familiar, but after a foreign mission it might look different or even stranger. Many repatriates are temporarily placed in makeshift jobs, as a common way of. n. al. Ch. i n U. v. problem-solving in human resources management circles. A country’s political, social or. engchi. cultural life is not a constant variable, and if somebody leaves it for a relatively long period of time, it is another challenge to find a way back: the longer you stay out of sight, the harder it gets to act and see things like you did before, with other words, expatriates may undergo a sort of reverse culture shock. At last, there is the phenomenon of “cold thinking”: people who has lived abroad look at things home more objectively, as they see things from a further, thus less subjective, unbiased perspective..

(35) 27 2.4 Summary Even though international business and cross cultural management is a practice for a very long time, the theories and studies are just recently developed from researches and findings of international business (global manager), organizational behaviour (macro-, concept- and micro level of cross cultural management), human resource management, psychology and anthropology (cultural frameworks). To define culture, I took Hofstede’s cultural programming framework as basis. It. 治 政 taught us that culture is not inherited, but shared amongst大 a society. Its core are the values 立. we learnt during childhood, but later develops other layers, for example corporate culture. To. ‧ 國. 學. examine and compare different cultures, Hofstede created a six dimension: power distance,. ‧. uncertainty avoidance, masculinity, individualism, long term orientation and indulgence. Although these can create a simplified picture of a culture, we have to avoid the stereotypes,. y. Nat. er. io. sit. even if some of them quite valid.. The international nature of the cross cultural management creates many challenges.. n. al. Ch. i n U. v. The communication, selection and training of the co-workers, internal conflicts and. engchi. repatriation are all problems which the human resource and global managers have to face. In the study of cross-cultural management, culture can be seen as a product, or as a process. The following figure’s approaches are combined by most of the researchers of this topic. There are four layers or dimensions: individuals versus groups, comparative versus interactive. The first approach is the toolkit, targeting individuals while looking for values of personality. The second defines culture in a structural way, under the various environmental conditions, that are fixed and cannot be changed by actions, like climate or geography. The.

(36) 28 third one stresses on transmission and the common things people inherit and share from their very similar background; and then the fourth, strongest approach emphasizes interactions between individuals, in terms of language and communication. Researches of this approach are usually close observations of interactions between managers and employees in different cultures: it works in a same way when we see actors playing in theatres. (Ususnier 1998) I have also chosen this approach to my own research.. 立. 政 治 大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v.

(37) 29 Table 3 Staging culture in international management research Individual. Toolkit. 立. ‧ 國. Interactive. ‧. n. al. er. io. sit. y. Nat Map. Theatre. 學. Comparative. 政 治 大. Ch. engchi U. v ni. Heritage. Group. Source: Sogor (2013) At last, there is a viewpoint I find very interesting. According to that, culture can be considered as a meta-language, which is common in the business world and works as a sort of role play: managers and the other participants of the economy act according to the.

(38) 30 invisible rules, just like in a game, where the business process viewed as exchange and communication, and people behave and interact as its expected of them. In my research I used Hofstede’s framework to compare the Chinese and Hungarian cultures and looked for the differences which are causing misunderstandings, misinterpretation and overall troubles, mainly focusing on the theatre stage.. 立. 政 治 大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v.

(39) 31. Chapter 3: Methodology 3.1 Research approach There are two kinds of research approaches: qualitative and quantitative. Mainly researcher chooses one kind which to follow. After formulating research questions when the nature of research is clear researcher can choose approach, but sometimes there can be a combination of both. The choice depends on the aim of research, for example if the goal is to. 政 治 大. have a complete detailed description than probably qualitative approach should be chosen.. 立. Qualitative research has explanatory nature and is quite subjective, because it is based on. 學. ‧ 國. participants’ observation. For scholars who choose this approach individuals’ interpretation of events is important. It helps to have better understanding or in-depth interviewees (Fisher,. ‧. 2007). An approach is based on interviews and observations. In contrast, quantitative. y. Nat. sit. approach aims to clarify features, count them and create statistical models, so as a result. n. al. er. io. there might be figures, which will help to generalize some processes. In qualitative research. i n U. v. there also can be generalization, but reached through comparison. According to Yin (2003). Ch. engchi. case studies as a tool should be chosen, for example, if a research gives answers to “how” and “why” questions or if there is an intention to cover contextual conditions if it is clear that they are relevant to the phenomenon considered My main approach was that by working at the company I could first-hand experience and observe the cultural differences and efforts of cooperation. I also interviewed my colleagues in order to a more comprehensive understanding of the problems..

(40) 32 3.2 Data collection Fisher (2007) has identified five ways of collecting data: interviews, panels, questionnaires, observation and documentary. In turn, interviews can be open, pre-coded and semi-structured. Interview hold as an informal conversation is called open interview. In contrast, in pre-coded interview questions are defined beforehand and the process is flowing according to plan with a degree of control. And semi structured interview is a mixture of two. 治 政 大 research. In primary During my thesis, I conducted a primary and a secondary 立. types (Fisher, 2007).. research I used observation, based on my own experiences. open interviews with 40. ‧ 國. 學. colleagues. The interviewees were employees of Huawei Technologies Co. Ltd. from. ‧. different department (Sales & Marketing, Finance, HR and Project) and from different nationalities (Chinese:7, Hungarian:28, Romanian:2, Czech:1, Malay:1, Indian:1) to reflect. y. Nat. er. io. sit. the various opinions regarding different managers in order to provide comprehensive data. There were 4 second generation Chinese colleagues, who were born in China but raised in. n. al. Ch. i n U. v. Hungary since childhood. They had a great understanding and better view on both culture.. engchi. There were no pre-established questions or guidelines to the interviews, they were open discussion about the differences of the cultures, cultural shock, difficulties in work and cooperation. Secondary research is used to analyse and interpret the primary data. I used the Geert Hofstede Centre’s online tool application for the comparison between Chinese and Hungarian culture and reflected it to the primary data..

(41) 33 3.3 Validity and Reliability Validity refers to defining whether the research covers all the issues that it was planned to consider. According to Carlsson (1988) high validity depends on how appropriate is a method chosen. In turn, reliability means that if someone will repeat the same research he gets the same result. Since this research is qualitative it is hard to guarantee validity and reliability because study is based on individual perception. In order to ensure validity and. 治 政 barrier, in English, to avoid misconceptions. Also, many大 of the observations base on my own 立 reliability interviews were tried to be hold in the national language and in case of language. experiences. So, reliability and validity were strongly taken into account.. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v.

(42) 34. Chapter 4: Results and Analysis 4.1 The Background of Huawei Corporation Huawei is a leading global information and communications technology (ICT) solutions provider. Driven by responsible operations, ongoing innovation, and open collaboration, they have established a competitive ICT portfolio of end-to-end solutions in telecom and enterprise networks, devices, and cloud computing. Their ICT solutions,. 政 治 大. products, and services are used in more than 170 countries and regions, serving over one-. 立. third of the world's population. With more than 170,000 employees, Huawei is committed to. ‧ 國. 學. enabling the future information society, and building a Better Connected World. (Huawei Annual Report 2015). ‧. Huawei was established in 1988 by Mr. Ren Zhengfeng in Shenzhen, China. Mr. Ren. y. Nat. sit. Zhengfei studied at the Chongqing Institute of Civil Engineering and Architecture. After. n. al. er. io. graduation, he was employed in the civil engineering industry until 1974 when he joined the. i n U. v. military's Engineering Corps as a soldier tasked to establish the Liao Yang Chemical Fiber. Ch. engchi. Factory. Subsequently, Mr. Ren had taken positions as a Technician, an Engineer, and was lastly promoted as a Deputy Director, which was a professional role equivalent to a Deputy Regimental Chief, but without military rank. Because of his outstanding performance, Mr. Ren was invited to attend the National Science Conference in 1978 and the 12th National Congress of the Communist Party of China in 1982. Mr. Ren retired from the army in 1983 when the Chinese government disbanded the entire Engineering Corps. Despite his connection with the Chinese Communist Party and Chinese military in the past, there is no.

(43) 35 direct relation between the company and both above. Despite the facts, on the international market there are still false rumours about the military connection, which made the cooperation difficult sometimes. He then worked in the logistics service base of the Shenzhen South Sea Oil Corporation. As he was dissatisfied with his job, he decided to establish Huawei with a capital of CNY21,000 in 1987. He became the CEO of Huawei in 1988 and has held the title ever since.. 治 政 大 its survival and fast growth in telecom market. This situation determined that it must ensure 立. Since its establishment, Huawei struggled to grow in the fierce competition of China. the face of fierce competition by treating customers with sincerity and being dedicated. In. ‧ 國. 學. the start-up phase, there were no clearly defined values. Employees were dedicated to a. ‧. common goal—survival. During that process, many encouraging slogans emerged, such as "We are united as a team, in both good times and bad" and "From ashes emerges a phoenix. y. Nat. er. io. sit. reborn anew." This developed the philosophy in Mr. Ren to treat dedicated employees as the foundation of the corporation. About a decade after being founded, Huawei decided to. n. al. Ch. i n U. v. rationally summarize its successful experiences for the first decade and apply the knowledge. engchi. to its long-term development. To this end, Huawei invited some professors from Renmin University to help Huawei make summaries. These summaries would become Huawei's Charter. Huawei's Charter was created in 1995, officially regarded as the "management outline" in 1996, and reviewed and approved in March 1998. Huawei's Charter was relevant to the situations the company was encountering at the time and guided our development for several years afterwards. In 2005, Huawei's development had already entered a new phase. Huawei took a serious look at itself as it summarized its new experiences. The company.

(44) 36 regarded core values as the key to its development. At that time, Huawei's core values covered its vision, mission, and strategy. The statement of its vision and mission demonstrated that Huawei had come to a new level of understanding its own value and development strategies. From 2005 to 2008, Huawei entered a new phase of global development. The overseas revenue accounted for over 50% of its total. In this new situation, Huawei considered how to simplify its core values while accurately encapsulating them for. 治 政 大open for review by all employees. and published the current six core values in 2008 that was 立 all employees to study, discuss, and identify with. Therefore, the Huawei EMT discussed. The process of all employees discussing Huawei's core values was meaningful. Views of all. ‧ 國. 學. employees were presented, circulated, and incorporated into Huawei's core values.. ‧. (Fredericksen 2014). n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 4 Huawei's core values (Source: Fredericksen 2014).

(45) 37 On January 15, 2011, the new Board of Directors was selected. The new management will lead Huawei on a new journey. In Huawei's market conference on January 17, 2011, Mr. Ren said that Huawei's succession is the succession of the culture and system rather than merely mechanically handing something off from one person to another. What is the core of Huawei culture? It comes down to customer-centricity and dedicated employees as our foundation. This also includes commitment to dedication and continuous. 治 政 大values are exemplified will also Huawei has developed and continues to develop, how core 立. improvement. Today, Huawei still continues to practice and summarize our core values. As. change. However, the essential meanings of "customer-centricity, dedicated employees as. ‧ 國. 學. our foundation, commitment to dedication, and continuous improvement" will remain. ‧. unchanged. (Fredericksen 2014). In 2015, Huawei achieved significant results from its focus on the pipe strategy. The. y. Nat. er. io. sit. company achieved sustainable growth in the carrier, enterprise, and consumer businesses. Its annual revenue totalled CNY395,009 million, a 37.1% increase over the previous year.. n. al. Ch. engchi. i n U. v.

(46) 38. 立. 政 治 大. ‧ 國. 學. Figure 5 Huawei worldwide revenue Source Huawei Annual report 2015. ‧. Zhengfei, one of the richest Chinese, held only 1.42 percent of shares in company. y. Nat. sit. and the rest, 98.56 per cent, is owned by company’s employees. Huawei is a private. n. al. er. io. company wholly owned by its employees. Huawei's shareholders are the Union of Huawei. i n U. v. Investment & Holding Co., Ltd. (the "Union") and Mr. Ren Zhengfei.. Ch. engchi. Through the Union, the company implements an Employee Shareholding Scheme (the "Scheme"), which involved 79,563 employees as of December 31, 2015. The Scheme effectively aligns employee contributions with the company's long-term development, fostering Huawei's continued success. (Huawei Annual Report 2015). Shares are allotted to employees based on their performance and their potential for further development on their job. They are only allocated to Chinese employees and should have been returned on leaving the company. This resulted and even deeper dedication towards the company’s success.

(47) 39 within the employees, but due to the limitation this motivational tool cannot be used with other nationalities. Table 2 Organizational Structure. 立. 政 治 大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. Source: Huawei Annual Report 2015. engchi. i n U. v. Worldwide, Huawei has more than 170000 employees in more than 170 countries and regions. Huawei Technologies Hungary was established in 2005 and the company invested more than 200 million Euro to Hungary, which resulted the Huawei is the second largest Chinese investor of the country. Its products are currently used by the half of the population and have partnership with the biggest telecommunication operators. (Telenor, Magyar.

(48) 40 Telekom, Vodafone Hungary). Part of Huawei’s strategy that each country gets a special function and title. Romania became the Accounting centre, in Sweden there is a Research and Development Centre and in Netherland the central warehouse of the Terminal products. Hungary duo to its geographical position it was perfect to became European Logistic Centre in 2009. Apart from the Logistic Centre in Biatobágy, there are two more offices in the Capital, Budapest. Huawei Hungary employs more than 330 employees and the number is. 治 政 大 The workforce in the headcount. Many of the staff are hired via employment agencies. 立. continually growing. They are mostly the Chinese expatriates, due to the human resources. offices are very multicultural: most of the employees are Chinese and Hungarians, but there. ‧ 國. 學. are Romanians, Czechs, Bulgarians, Indians, Malaysians and people from mixed background.. ‧. (For example born in Chinese, but grew up in Hungary. Or with Hungarian-Vietnamese origins.) I think me, myself also can be counted as a mixed backgrounded person, since I. y. Nat. n. al. er. io. language.. sit. lived more than 4 years in Asia and have a better understanding of the culture and the. 4.2 Communication Issues. Ch. engchi. i n U. v. The first problem the non-Chinese colleagues always mentioned was the lack of English proficiency of the Chinese colleagues and the language barrier. It even caused problem on the local level. Those who can’t speak Chinese, often felt that their requests or questions toward the HQ is unresponded because the HQ personnel didn’t understand the message. They often had to ask Chinese bosses to urge the HQ with the answer or E-flows. Then they called the person in question and the problem was usually solved within 3 minutes..

(49) 41 Due to their high context culture, Chinese colleagues often recommended to call the HQ, but Non-Chinese speakers with low context culture preferred the written communication. Many of non-Chinese colleagues found disturbing that even though the company’s official language supposed to be English, many of the internal email are in Chinese. Sometimes they get an email with the subject ‘Read it please’ then Chinese text. It turned out there was a link in the email for the English version, but since it was send mainly to. 治 政 Many colleagues expressed their concern towards大 the Huawei’s business secrets, 立. Hungarians, they were a little bit upset.. since even though they considered the risk of that using Google translation at these emails,. ‧ 國. 學. they might leak out important information, they still felt that they need to know the content. ‧. of these emails and copy and pasted all of it into the fore-mentioned application. Also, even though Huawei has his own communication system, almost everyone uses Wechat even for. er. io. sit. y. Nat. business purposes.. The other email practice, that Chinese colleagues only fill the subject with an order. n. al. Ch. i n U. v. or request but leave the email empty was perceived as disrespectful. They could understand. engchi. that they wanted to save time, and if you send someone the 20th letter one day, then it’s acceptable. But, especially for the request, a Please and a Thank You is appreciated. One of my colleague, who works for ten years at the company, made some quite big achievement, still was introduced as the guy who has a Chinese wife. It’s true, but it doesn’t represent his value at the company and he felt quite overlooked every time, when colleagues thought the most important fact to mention about him is his marriage. He failed to recognize,.

(50) 42 that in the Chinese culture, which values interpersonal connection and the ‘face’, they were trying to give him a face. Huawei uses its own softwares for internal communication and processes. There are many different systems for different activities, for example one for Contract registration and modification, one for the production and delivery planning, one for the after-sale services. One person could use more systems simultaneously. In some cases, the Chinese and the English version of the systems weren’t the same. Using the English version, there was much. 治 政 less functions than in the Chinese version. When I raised大 this as an issue, I was told that 立 those functions don’t belong under my responsibilities, so I shouldn’t bother.. ‧ 國. 學. Other issue with the system that the 90% of the time the they were broken or didn’t. ‧. function properly. Due to the cultural frustration, the local IT position was often empty and the IT personnel’s English in the HQ was very low. These occasions, which weren’t rare,. io. sit. y. Nat. made the supposedly quick processes very long and stressful.. n. al. er. Even if the system wasn’t broken, if a special case rose and Hungarian colleagues. Ch. i n U. v. needed help to solve it, it was very hard to find the proper support. Since it’s not clear who. engchi. uses which system, so finding the responsible person was already a challenge. One of our sales tool is Rebate, which is a return of a portion of a purchase price by a seller to a buyer, usually on purchase of a specified quantity, or value, of goods within a specified period. Unlike discount (which is deducted in advance of payment), rebate is given after the payment of full invoice amount. I was responsible for starting the eflow of the rebate transfer process. Most of the time it is automatically, after the payment and the delivery is ready, the company transfer the amount. According to the old regulations of the Huawei, we only.

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