With the advancement of globalization and the popularity of the transnational companies, cross-cultural understanding is gaining its increasing importance in the operation and management of organizations, especially hybrid companies(Seligman 1999). As is known to all, it will be easier for colleagues from different cultural contexts to get along with each other if they have a good understanding of the culture of each other’s country.
Besides, there is no denying that culture can affect the formation of leadership in a company. Nowadays, with a growing number of Asian companies emerging in the world stage, more and more people are paying attention to Asian culture and leadership as well as the culture’s impacts on leadership.
This essay will have a look at the underlying aspects of Asian culture, including social relationships, Chinese Guanxi and face, that can affect the Asian leadership. Examples of the bribery of Rio Tinto and GSK China will be given in the essay
In conclusion, the Asian culture puts great emphasis on social relationships, Chinese Guanxi and Face very much which is originated from Confucianism. The importance of social status and hierarchical structure root deeply in Asian culture. Such a culture has greatly influenced the leadership in companies. The emphasis on social relationships in the culture results in leaders’ great attention to their interpersonal relationships and communication skills. The “Face ” culture leads to centralized decision-making process in companies and the Guanxi to the illegal phenomenon of bribery. The merits in Asian culture should be integrated into the leadership while the negative aspects should be abandoned. Trainings are needed to improve leaders’ cultural awareness so as to make them more able to deal with problems resulting from cultural diversity.