Minister Schavan - AHK - AHKs

Business Focus
Sino - German Business
Contrary to popular perception, differences in culture
or personality are seldom the source of interpersonal
or inter-group conflict. The most common cause is
actually the mindsets which predetermine how an
individual perceives another. Such mindsets influence how people
work with individual and cultural differences. Successful global leaders
are flexible, open to new experiences, have well-developed relationship
skills and optimistic attitudes.
In most western-based companies, giving and receiving feedback is
an essential leadership skill. It is important to consider what kind of
training and support China-based managers have had for giving and
receiving feedback, especially whether they have experience doing so
in China.
Prior to entering a western company, many Chinese employees do not
have much experience with western-style feedback which tends to
be verbal and direct. Traditionally, Chinese-style feedback is indirect,
non-verbal and most often negative. However, these days Chinese
employees are increasingly open to receiving improvement-focused
feedback, and when administered correctly, all parties can benefit.
Question: How many of the Leadership Universals have something
to do with Feedback & Performance Management? Answer: All of the
above.
Giving and Receiving Feedback
Different feedback styles can lead to misunderstandings. Often people
from cultures that favor relatively direct and verbal forms of communication
can misinterpret or even completely miss messages that are
less direct or nonverbal. Very direct messages may cause offense to
those who are more cautious about delivering sensitive messages.
When providing feedback in cultures that are more task-oriented,
the person and the task are separated, and the focus is on how to do
the task well. Such cultures find it much easier to give direct, taskoriented
feedback. In more relationship-oriented cultures, the person
and task are not separated, making any type of feedback more personal.
Feelings and facts are both important in these more indirect
June - July 2008 | 16
The German Chamber of Commerce in China
Giving Feedback & Managing Performance
Across Cultures
8 Universal Requirements of Leadership
1. Develop a clear sense of purpose, direction and connection
2. Create relationships of trust and mutual respect
3. Create a climate of open communication and continuous
improvement
4. Establish goals, standards, and accountability
5. Communicate both performance as well as behavioral
expectations
6. Provide tools and resources for success now and later
7. Provide rewards, consequences and performance feedback
8. Lead by example: model the behavior you want
“It’s not our differences that divide us, it’s our judgements about each
other that do.” (Wheatly, 2002) Many German companies in China face
HR retention and staffing struggles. Implementing a constructive feedback
system can help to retain employees and provide motivation for
optimal performance.
cultures when giving critical feedback. When people are aware of different
feedback styles and options, they are able to give and receive
feedback in a style that is more culturally appropriate.
Direct Feedback is Not Always Best
A manager with a small company wanted to replace one of the local
team members. The team member had not measured up to expectations.
Even with direct feedback about performance he was showing
few signs of improvement. However, the team was small and the nonperformer
had a good relationship with all the other team members.
So the manager realized that terminating the team member was going
to have a negative impact on the morale of the remaining team.
Finally he tried an indirect approach. The team member’s employment
contract was nearing the end of its term. The manager mentioned to
some the other colleagues that he was wondering if he should renew
it. He suggested that the nature of the job was going to become more
complex and that the team member in question might not like that
type of work. By relying on the grapevine of the non-performer’s colleagues
to relay the message that the contract would not be renewed,
he gave indirect feedback. A short while later, the non-performer contacted
the manager and said he would not be renewing his contract as
he wished to change his career path. In the end, everyone saved face
and the morale of the team remained intact.
The Feedback Skills Gap
There is a huge need for effective leadership in multi-cultural organizations.
Many companies feel they don’t have an adequate number of competent
global leaders. Most of them believe that their existing leaders
need additional cross-cultural leadership skills – giving and receiving
feedback ranking high on the list. Often organizations select leaders for
international assignments based on technical expertise. Many managers
without experience leading an international team are reluctant to give
constant feedback. Unfortunately, the negative consequences can be
costly. They include: premature termination of the assignment, reduced
organizational morale, lack of cohesion and poor performance.
Why Are Managers So Reluctant to Provide
Feedback?
• Fear of the other person’s reaction - people can become very defensive
and emotional when confronted with feedback and many managers
are very fearful of the reaction
• Fear of de-motivating the receiver of the feedback instead of motivating
the receiver to improve
• The feedback may be based on subjective feeling and the manager
may be unable to give concrete information if the other person
questions the basis for the feedback