Centralization vs. Decentralization
In business area, centralization and decentralization refer to different managing way of the enterprise. When we introduce these two conceptions, we firstly introduce another theory of Geert Hofstede’s on culture dimension-------Power distance. “Power distance is the extent to which less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally .” Power distance describes also the extent to which employees accept that superiors have more power than they have. Furthermore, superiors’ opinions and decisions are always right because of the higher position they have. In countries with high power distance employees are too afraid to express their doubts and disagreements with their autocratic and paternalistic bosses. The index for power distance (PDI) describes the dependence of relationships in a country. [6]In the investigation carried out by Hofstede, we found that the PDI (power distance index) of China is 80 which at the seventh of 40 countries being investigated. However, the PDI of most western countries are less than 50. For example, the PDI of America is 40 which just at the 35th of 40 countries being investigated. The PDI is in proportion of centralization and in reverse proportion of the decentralization. In China, most local enterprises prefer centralization, the decision tree is from the top to the bottom. So the Chinese employee always thinks that their superior decision is right and the only duty of them is carrying out the decision made by their superior. Although when their superiors make a wrong decision, they are afraid of expressing their doubt and own opinion. However, most western enterprises prefer decentralization, the decision tree of these enterprises are from the bottom to the top. Most directors of the company encourage their employees to express their own opinions; they would like to use a democratic way to manage their company. They think that everyone is equal, and various departments and different positions set by the enterprise are just for improving the working efficiency of the enterprise. So foreign-funded enterprises’ director will find it difficult to know the Chinese employees’ real thought and stimulate their creativity and let them take part in the management of the company. This will mislead them to think that the Chinese employees are lack of responsibility. The only way they can do is to obey the decision made by their superiors. The below examples can show this situation clearly.毕业论文
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American: How long will it take you finish this report? I asked him to participate.
Chinese: His words have no sense. He is my boss. No matter what decision made by him, I must obey.
Chinese: I don’t know. How long should it take? Asking for an order.
American: He refuses to take responsibility.
American: You are in the best position to analyze time requirement. Pressing him to take responsibility for his own actions.
Chinese: There is non-sense, I am an employee. I have no choice but to obey.
Chinese: ten days.
American: Thinking that he lacks the ability to estimate time: this time is totally inadequate.
American: Take fifteen. Is it agreed you will do it in fifteen days? Offering a contract.
Chinese: These are my orders: fifteen days
In fact, the report needed thirty days of regular work. So the Chinese worked day and night, but at the end of the fifteen day, he still needed one more day’s work.
American: Where is the report? Making sure he fulfills his contract.
Chinese: I will be ready tomorrow.
American: But we had agreed it would be ready today. Teaching him to fulfill a contract.
Chinese: The boss is stupid and incompetent! Not only give me wrong orders, but also not even appreciate that I do a thirty-day job in sixteen days.
The Chinese thought that he can’t work for such boss and hands in his resignation. The American is surprised.
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