1. China and Taiwan GATE Prof. Tony O’Driscoll

2. Agenda Civilization, Culture, Leadership and GATE 2 Understanding and Applying Relational Models Understanding and Applying Cultural Dimensions Preparing for GATE

3. GATE FOCUS: Why not How GATE experience should NOT focus solely on HOW to do business in a given region, but also on WHY business is conducted the way it is in the region. 3

4. 2012 Leadership Transitions 4

5. Agenda Civilization, Culture, Leadership and GATE 5 Understanding and Applying Relational Models Understanding and Applying Cultural Dimensions Preparing for GATE

6. Social Relations: Relational Models (RMs) 6 Relational Model (RM) RM Domains There are only four fundamental RMs that generate coordination systems in every domain of sociality in every culture….Just as four basic forces generate the complex and varied structures of the physical universe, four basic social bonds generate the complex and varied structures of the social universe Fiske and Haslam

7. Relational Model Domains Each culture implements the four RMs in many distinct ways and in different combinations. In a particular culture, a given aspect of a given domain of sociality may be organized by any of the RMs, and the way each aspect is organized may change historically. Fiske and Haslam

8. Activity: US/China Relational Models 8 Form teams of 3-4 Allocate 100 points across CS, AR, EM, MP Identify Key Domain for top two RMs Explain rationale for Allocation and Domains 10m CS AR EM MP 100 90 80 70 60 50 40 30 20 10

9. China’s Relational Model Composite 9 CCMBA 2011 CCMBA 2012 CCMBA 2013 Source: CCMBA 2010, 2011 Aggregate Responses (Shanghai,) From Pre-Residency Blog.

10. China RM (Post Residency) 10 Source: CCMBA 2010, 2011 Aggregate Responses (Shanghai) from Post Residency Case Study Deliverable.

11. Composite Relational Models Source: CCMBA 2010, 2011 Aggregate Responses (Shanghai, London, Dubai, Delhi, St. Petersburg) from Post Residency Case Study Deliverable.

12. Agenda Civilization, Culture, Leadership and GATE 12 Understanding and Applying Relational Models Understanding and Applying Cultural Dimensions Preparing for GATE

13. Culture: Defining Cultural Dimensions Culture is the set of beliefs and values about what is desirable and understandable in a community of people, and a set of formal or informal practices to support those values Culture is the set of beliefs and values about what is desirable and understandable in a community of people, and a set of formal or informal practices to support those values Javidan and House Source: Culture Leadership and Organizations, The GLOBE Study 13 Cultural Dimensions (CD) CD Descriptors

14. Activity: US/China Cultural Dimensions 14 Form teams of 3-4 Identify where the US/China vary from Avg. Explain rationale for your CD Profile 10m Source: Globe Study of 62 Societies, Sage 2004

15. US CDs 15 Source: Globe Study of 62 Societies, Sage 2004

16. China’s Cultural Dimensions 16 CCMBA 2011CCMBA 2012CCMBA 2013 Source: CCMBA 2010, 2011 Aggregate Responses (Shanghai) from Blog Pre-Read.

17. China CDs 17

18. China, Taiwan, US CDs 18

19. Agenda Civilization, Culture, Leadership and GATE 19 Understanding and Applying Relational Models Understanding and Applying Cultural Dimensions Preparing for GATE

20. China’s Transitions and Tensions 20

21. Societal: Haves and Have-Nots 21

22. Societal: Rural Agrarian Confucianism 22

23. Societal Transition 23 Over 150 million migrant workers have fled the countryside to live in factory dorms or shantytowns and subsist on very basic wages and very limited access to health care. The Chinese lack a social safety net and they feel they must sock away money for retirement, college fees, and unforeseen health disasters.  Following the Financial Collapse, is the current economic situation in China sufficient to quell the social unrest bubbling below the surface?  Do the millions of migrant workers still feel that their life in the cities where they work is better than it was when they lived at home on the farm?  Are those who are left at home on the farm feeling increasingly removed from the economic opportunities in urban areas?  Is Personal Freedom sufficient for most Chinese citizens or is the need for Political Freedom increasingly on the rise?

24. Political: How to Govern 1.4B People? 24

25. Political: Vertical Democracy? 25

26. Political Transition: Key Questions 26 Chinese leaders don’t want a country that is so feudal that foreign powers could slice it up like ripe melon as the Western powers and Japan did in 1800-1900. They also don’t want to have a system with an untouchable dictator who can manipulate the population into nearly destroying its social system and economy as Mao did between 1950 and 1975. They also don’t want to deal with Western democratic politics. Source: American Progress Institute: China’s Forthcoming Political Transition Xi Jinping Hu Jintao

27. Political Transition: Questions to Consider  Can China continue to prosper economically without reforming its Single-Party political system?  Do the Chinese believe that there needs to be political reform? How satisfied are they with their current system of government?  How do the Chinese feel about Autocratic Capitalism or Vertical Democracy? Would they prefer a Western Democratic System?  Do the Chinese feel they have a voice in driving bottom up initiatives as it is described in Vertical Democracy?  Do the Chinese feel that their Government system is delivering the desired results? Do they feel that they have recourse if it is not?  Do the Chinese believe that their system of Government yields more optimized solutions than a Western Democracy? 27

28. Economic: Great but Unequal Gains 28

29. Economic: Great Gains at What Cost? 29 China has only 1/4 of the worlds water supply Half of China’s rivers too polluted for drinking 136 cities face severe water shortages Amazon is being cleared by area size of Belgium each year to supply soya to China Country is adding enough electric capacity to power Spain Each Year If China were to consume the same amount of Oil as the US we would need 3X current production levels We are going to need 4 PLANETS to accommodate the needs of a resurgent china

30. Economic Transition: Key Questions 30 China is the fastest growing country in the world. While several hundred million people have been pulled out of poverty in the past three decades, the gap between rich and poor is getting larger and larger. The average annual income of a Beijing resident is $2,263 while a farmer in Qinghai earns $277 annually. Social unrest will inevitably erupt when the boiling economic kettle settles down to a slow simmer  Will social unrest explode as a result of the increasing disparity between rich and poor?  Do the Chinese believe that the 30 year trend of 10% growth per year is economically and environmentally sustainable?  Do the Chinese believe that the Government should be taking a more balanced approach in driving economic growth while moderating environmental degradation?  Are the Chinese concerned about their ability to continue to access natural resources to fuel their growth? How might their “No Strings Attached” policies in dealing with trading partners create negative unanticipated outcomes for the country?

31. Tensions Rising? 31 China’s Premier Wen Jiabao has delivered a strong warning about the “urgent” need for reforms, without which, tragedies like the Cultural Revolution could still happen

32. Processing the Region: Relational Models 1.Select at Transition/Tension (S/P/E) to discuss 2.Based on the RM profile, identify the TWO DOMAINS within the RM profile that best articulate the root- causes of the tension. Form a team of 3-4 Complete the activity below 5m

33. Societal Transition: RMs and Domains 33 Communal Sharing Market Pricing Social Identity and Relational Self Identity derived from closest and most enduring personal relationships Self defined in terms of occupation or economic role: how one earns a living. Moral Judgment and Ideology Caring, kindness, altruism, selfless generosity. Protecting intimate personal relationships. Abstract, universal rational principles based on the utilitarian criterion.

34. Political Transition: RMs and Domains 34 Authority Ranking Equality Matching Decision Making By authoritative fiat or decree. Will of the leader is transmitted to chain of command. Subordinates obey orders. One Person, One Vote Election. Everyone has equal say. Rotating offices.

35. Political Transition: RMs and Domains 35 Authority Ranking Market Pricing Distributive Justice The higher a person’s rank the more he or she gets, and the more choice he or she has. Subordinates receive less and get inferior items, often what is left over. To each in due proportion. Each person is allotted a quota proportionate with some standard (e.g. Stock Dividends, Royalties, Benefits, Unemployment Comp.)

36. Economic Transition: RMs and Domains 36 Authority Ranking Market Pricing Work Superiors direct and control the work of subordinates and control product of subordinates labor Work for wage calculated as a rate per unit of time or output Reciprocal Exchange Superiors appropriate or preempt what they wish, or receive tribute from inferiors in turn for protection. Pay for commodities in return for what is received as a function of market prices or utilities

37. China: RM Domain Map DomainCSARMP Constitution of GroupsOne for all, all for oneFollowers of Charismatic leader Corporations and Labor Unions Social Identity/SelfClose and enduring personal relationships Self as revered leader or loyal follower Self defined in terms of occupation/role Social InfluenceConformity and Unanimity Obedience to AuthorityCost and Benefit Analysis/Incentives Decision MakingConsensusAuthoritative FiatMarket Decides Distributive JusticeResources as “Commons” The higher the rank the more you get To each in due proportion Reciprocal ExchangeGive what you can take what you need Superiors appropriate or preempt what they want/Protection Pay in proportion to what is received WorkEveryone pitches in without keeping track Superiors direct and control work Work for a wage (rate per unit output) MotivationIntimacy motivationPower motivationAchievement Motivation

38. Cultural Dimension Analysis Do the Cultural Dimensions provide any insights around the transitions that China is undergoing today and the tensions that these transitions are creating from a societal, political and economic perspective?

39. Processing the Region: Cultural Dimensions 1.Select at Transition (S/P/E) to discuss 2.Based on the Transition(s)/Tension(s) you explored, identify the TWO Cultural Dimensions that best articulate the root-cause(s) of the tension. Form a team of 3-4 Complete the activity below 5m

40. Societal Transition: CDs 40 Cultural Dimension In Group Collectivism (5.86) Power Distance (5.02) Uncertainty Avoidance (4.81) Institutional Collectivism (4.67) Performance Orientation (4.37) Humane Orientation (4.29) Assertiveness (3.77) Future Orientation (3.68) Gender Egalitarianism (3.03)

41. Political Transition: CDs 41 Cultural Dimension In Group Collectivism (5.86) Power Distance (5.02) Uncertainty Avoidance (4.81) Institutional Collectivism (4.67) Performance Orientation (4.37) Humane Orientation (4.29) Assertiveness (3.77) Future Orientation (3.68) Gender Egalitarianism (3.03)

42. Economic Transitions: CDs 42 Cultural Dimension In Group Collectivism (5.86) Power Distance (5.02) Uncertainty Avoidance (4.81) Institutional Collectivism (4.67) Performance Orientation (4.37) Humane Orientation (4.29) Assertiveness (3.77) Future Orientation (3.68) Gender Egalitarianism (3.03)

43. Activity: Preparing for Gate 43 Form teams of 3-4 (GATE Locations) Identify CDs that have high variability What can you do to prepare for this? 10m Source: Globe Study of 62 Societies

44. Examining GATE Experience Individual Predispositions Relational Interactions Cultural Dimensions 44 ICE RM CD GATE

45. GATE Assignment 45 Prepare and submit a 600 word paper that answers the following questions:  Describe a cultural encounter you experienced during the GATE trip that you perceived to be particularly unique or significant.  Describe why people from this region might view what you perceived to be unique or significant as regular or normal in their culture  Use your ICE Profile, the Relational Model Framework and the Cultural Dimensions to explain the difference between your perception and the regional reality.

46. GATE Course Commons 46 https://cebeapps.fuqua.duke.edu/coursecommons/index.jsp?topic=1300 https://cebeapps.fuqua.duke.edu/coursecommons/index.jsp?topic=1303 https://cebeapps.fuqua.duke.edu/coursecommons/index.jsp?topic=1304 China: South Africa: SE Asia:

47. GATE Journal Reviews (3) 47

48. Additional Reading 48 The Rise and Fall of Civilizations: https://cclblog2012.fuqua.duke.edu/blog/2011/06/27/the-rise-and-fall-of-civilizations/ Defining and Categorizing Culture: https://cclblog2012.fuqua.duke.edu/blog/2010/07/15/defining-and-categorizing-culture/ Social Relational Models: https://cclblog2012.fuqua.duke.edu/blog/2010/07/15/civilizations-and-relational-models-theory/ The Globe Project and Cultural Dimensions: https://cclblog2012.fuqua.duke.edu/blog/2010/07/15/the-globe-project-cultural-dimensions/ China: Facts, History, Societal, Political and Economic Transitions: https://cclblog2012.fuqua.duke.edu/china/

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