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  • Essay / Reliability Case Study - 803

    The crucial question of reliability. Like many other multinationals in China, Bosch is stuck in a profitability trap characterized by a lack of commitment to establishing region-specific operations and management systems. Chinese managers consider lack of trust as the fundamental reason. In other words, there is no trust between headquarters and regional organizations, although trustworthiness is a natural concern in international management (Beamish & Inkpen, 1995; (Harvey, Speicer, & Noveceivic, 2001 ). Trust is lacking between head office and regional organizations There is no local management if strategies are still developed in Germany and executed only in China (Business Development Manager, Division 2). that non-trust is systemic in multinationals to the extent that the two parties, namely headquarters and regional organizations, have different, even contradictory, interests, strategies and values, causing instability and therefore distrust. Amid rapid business growth, China wants as much technological know-how and decision-making as possible while Germany fears losing its technical advantage and control over the region in general. Furthermore, sometimes what Chinese leaders want is not always consistent with good business practice as most German leaders think about business. However, it is important to be aware that such a dilemma often creates a multitude of situations and events in management communication, which continually confirms stereotypes and prejudiced ideas, further reducing levels of trust between two parts. Therefore, building trust between Chinese and German managers can be considered the... middle of paper ...... as a workforce without paying enough attention to their private lives. Such findings are also consistent with the experiences of other researchers, who note that Chinese and East Asian management are generally more people-oriented, while Western management tends to be relatively more work task-oriented (Chen , 1995).Summary. The skills defined in this study support the idea that there are different managerial practices, including the perception of leadership, in China and Germany. It is easier to transfer technology from machines than from humans. Although the Western managerial approach dominates both multinationals and joint ventures in China, it is still too early to discuss the existence of general organizational convergence. However, at the current stage, the Chinese style of personal management still prevails over Western human resource management practices..