A COMPARISON OF THE UNITED STATES AND CHINESE MANAGERIAL CULTURES IN A TRANSITIONAL PERIOD: IMPLICATIONS FOR LABOR RELATIONS AND JOINT VENTURES

Chinese and U.S. human resource management systems differ on a number of cultural dimensions. The most important of these are described with respect to fundamental organization and work‐related assumptions about people and performance, rewards, training and development, and educational background of human resource practitioners. An appreciation of and respect for these differences is a prime requirement for effecting a successful Sino‐American venture. This is especially important given that China is the world's largest market, and because U.S. companies are recently finding that joint ventures with China are paying off. This paper helps business people and academics understand the world's fastest growing economy and the growing influence of Confucian Dynamism that affects HRM practice in Chinese ventures. The individualism‐collectivism dimension and the psychological contract also helps managers understand cultural differences and apply appropriate management techniques.