Cultural comparisons: Kazakhstan and China

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Introduction

The major challenge of doing business internationally is effective adaption to different cultures. Every year, China attracts more Kazakh businesspersons. Nevertheless, business in this country may turn out to be hugely profitable and loss making - depending on how much one is prepared for China's hugely varying market forces, needs, cultures, and practices, among many other things. For many Kazakhs, China is not just another country; it is a completely different world. People who visit China for the first time face a number of things: language barriers, geographical complexities, different politics, and often culture shock. Chinese norms and practices are rooted in the ancient past of the country. Additionally, many of the Chinese people, in the eyes of outsiders, and particularly Kazakhs, seem to be devoid of common sense and a little bit wild. As a result, it becomes hard for one who wants to invest and work in China without the knowledge of its local rules.

1. General information

Kazakhstan population composes of 131 ethnicities. These ethnicities including Kazakh (who make up 63 percent of the population), Russian, Uzbek, Ukrainian, German, Tatar, and Uyghur [1]. Islam (Sunni Muslims) is the religion of about 70% of the population, with Christianity practiced by 26% [2]. According to the country's Constitution, Kazakhstan is a secular state that provides for freedom of religion. The Kazakh language is the state language while Russian has equal official status for all levels of administrative and institutional purposes [3].

China officially recognizes 56 distinct ethnic groups, the largest of which are the Han Chinese, who constitute about 91.51% of the total population [4]. Ethnic minorities account for about 8.49% of the population of China, according to the 2010 census. There are as many as 292 living languages in China [5]. The languages most commonly spoken belong to the Sinitic branch of the Sino-Tibetan language family, which contains Mandarin (spoken natively by 70% of the population) [6]. Standard Mandarin, a variety of Mandarin based on the Beijing dialect, is the official national language of China and gets used as a lingua franca in the country between people of different linguistic backgrounds [7]. Over the millennia, Chinese civilization has been influenced by various religious movements. Confucianism, Buddhism, and Taoism are the "three teachings" that historically have played a significant role in shaping Chinese culture. Elements of these three belief systems are often incorporated into popular or folk religious traditions [8]. Freedom of religion is guaranteed by China's constitution, although religious organizations that lack official approval can be subject to state persecution.

business сulture kazakhstan china

Table 1 - General information

Sources:

1. Central Intelligence Agency (CIA);

2. The World Bank;

3. Transparency International.

2. Cultural comparisons: Kazakhstan and China

2.1 Limitations

The research limitations concerns the fact that Kazakhstan has not been studied in some indicators, and as a basis for comparison of management cultures between China and Kazakhstan, in this assignment will get used as indicators of Russia. Kazakhstan underwent the strongest “Russification” during the Soviet Union period because of the strong concentration of Russians and also because of the low status of Kazakh language in the Soviet Union. Kazakhstan was the only republic in the Soviet Union in which the titular nation was in minority: 38% of Kazakhs as against 40% Russians in 1930s, 30% as against 42.2% in 1959 [9]. Therefore, it is true that the business culture in Kazakhstan is mostly the mixture of Kazakh and Russian components with an influence of other ethic group's elements.

2.2 Classification of business cultures with G. Hofstede's dimensional scores

National culture has an impact on business culture. Intercultural management concers business culture the realization of the nation's cultural peculiarities in business, in the way of doing things. The level of the similarities and differences between cultures determines the results of their interaction and impact on performance.

One of the best-known classifications of business cultures is the model of the Dutch scientist G. Hofstede. The advantages of this classification are its scientific validity and practical utility. In his work, Hofstede analyzed the basic values of different peoples and suggested that a way of measuring the parameters of the numerical culture of different countries. Hofstede offered four parameters that allow the description of differences between national cultures [10]. These parameters are:

· power distance (from small to large),

· collectivism versus individualism,

· femininity versus masculinity,

· and uncertainty avoidance (from weak to strong).

Kazakhstan is culturally very close to Russia, and they share a common history and were under the Soviet system for a 70-year period, then, the Hofstede's dimension's value for Russia are applicable to Kazakhstan.

Table 2 - Collected Hofstede's dimensions [10].

China is a country with a large power distance. Power in organizations gets extremely centralized, and its subordinates heavily rely on their heads' decisions. They only act under the direction of the senior management. In such a society, it gets assumed that subordinates cannot take important decisions for the company; it is the prerogative of the head of the company. The relationship between employees and chief are emotional in nature: that is, some idolize their chiefs, and some just out rightly hate them. The mature and experienced leaders are given get accorded with a lot of respect. In China, as early as 500 BC, Confucius said that the stability of a society is based on the difference of relations between people. The youngest folks respect the elders, and in turn, the elders protect those who are younger. Over time, Confucianism became the ideological core of the entire Chinese culture.

Countries with a large power distance index (PDI) mainly belong to the collectivist (i.e. with a very low index of individualism), and countries with little PDI - to the individualistic, which confirms the data in Table 2. China, throughout its five thousand years of history, was, and still is, largely peasant country. Two-thirds of Chinese still live in villages where their main practice is rice and wheat growing. China's peasant economy - public, collective survival in it depends on group cooperation and harmony. Loyalty and obedience are characterized in the family hierarchy, and this is also easily observable among labor groups. In a situation of conflict of interest, personal interest is often given up for the sake of collective interest. According to the setting of the Chinese socialist culture, "collective - primary, private - secondary." In collectivist countries, consideration is that the dispute within the group is irrelevant since the group initially should have only one common opinion, and one's position is not so important. The team tries to avoid conflicts and maintain good relations with other people. Relations between the employee and their employers are characteristic of being emotion. Employees and their chiefs are likely family, where the chief has to protect and take care of the employer in exchange for his loyalty.

The dimensions of the previous two indexes for Kazakhstan and China are the same, which indicates a similarity in relationship to inequality and where the interests of the group take precedence over the individual.

However, there is a major difference between nations in relation to the uncertainty. Kazakhs (high uncertainty avoidance) are used to follow instructions and rules, but they resist any change. Chinese (low uncertainty avoidance) are easier to react to changing situations and take risks. In countries with strong uncertainty avoidance, the knowledge of what is good and what is bad is clear. Further, what is dangerous and what is not dangerous is also well understood. The establishment of rules and procedures helps to reduce uncertainty and unpredictability. All this difference from the established norms is dangerous because it creates uncertainty. In countries with a weak degree of uncertainty avoidance, there are also norms of behavior and the understanding of what is good and what is bad. This type of culture is characterized by a flexible society, tolerant to new ideas and innovations.

2.3 Values for children in the World Values Survey

The World Values Survey (www.worldvaluessurvey.org) is a global network of social scientists studying on how to change values and its impact on social and political life, led by an international team of scholars.

Table 3 - Data according to the project World Value Survey.

From this table it is observed that China and Kazakhstan have approximately the same high rates of Hard work, Thrift saving money and things, Tolerance and respect for other people, Feeling of responsibility. However, 10% of the public in Kazakhstan said that religion was very important in their lives while in China only one percent considered religion very important.

The right part of the graph (the indices "survival / self-expression" above zero) is absolutely dominated by the Western countries, while on the left side (with low indices of "survival / self-expression"), there are few. The vertical axis of the differences between East and West are not traced. Therefore, it can be argued that the polarization "East - West" exists on the values ??of "survival / self-expression," but it's not from the point of view of the opposition "traditional / secular-rational values" [11].

Figure 1 - Map mental differences between East and West, according to the project WVS [11].

Russia (Kazakhstan) is in the upper left corner and looks, of course, as a country of the East.

Table 4 - Feeling of happiness

The number of people who consider themselves happy (more than 80%) practically the same for both Kazakhstan and China.

2.4 The Schwartz culture-level dimensions

Schwartz proposed a theory and method of measuring cultural value orientations. On the basis of empirical studies carried out in 84 countries around the world under his leadership. Eight different cultural areas stand out and build the map of the location along the 7 basic cultural value orientations: Harmony, Egalitarianism, Intellectual Autonomy, Affective Autonomy, Mastery, Hierarchy and Embeddedness [12]. He grouped them into three indicators. The first indicator describes them with a pair of "Embededness versus Autonomy". This figure is similar to the Hofstede's index of individualism. The second scale of values is "Hierarchy versus Egalitarianism". This pair of concepts characterized by providing socially responsible behavior and interdependence, it is about the same power distance indicator by Hofstede. The last pair of values is "Mastery versus Harmony", which related to the problem for the environment (device or exploitation of natural and human resources). These are captured together with the correlation values, the level of socio-economic development, and types of economic and political systems.

China shows a utilitarian value, however, in conjunction with hierarchy and mastery and the rejection of harmony and equality. Conservatism is more valuable than in Europe and the United States. China is a society that emphasizes close-knit harmonious relations, the maintenance of status-quo and avoids actions that disturb traditional order. In Kazakhstan, conservatism and hierarchy are less valued, as compared with China. However, these cultural orientations are more pronounced than in Kazakhstan than in Western Europe and the United States.

Table 5. Smith-Trompenaars

The table shows that the levels of egalitarian commitment and loyal involvement for both China and Kazakhstan are similar. They cherish both of these values to similar extent.

2.5 Culture and Leader Effectiveness: The Globe Study

The "Global Leadership and Organizational Behavior Effectiveness" (GLOBE) Research Program was conceived in 1991 by Robert J. House of the Wharton School of Business, University of Pennsylvania. GLOBE's major premise is that leader effectiveness is contextual. That is, it is embedded in the societal and organizational norms, values, and beliefs of the people being led. The first step allowed GLOBE (Figure 6) to 60 of the 62 countries into country clusters. Cultural similarity is greatest among societies that constitute a cluster; cultural difference increases the father clusters are apart [14]. Kazakhstan is placed into the Eastern European cluster and China into the Confucian cluster. These two clusters are placed close to each other, which means that cultural differences are not great.

Table 6. Societal Clusters and Leader Styles [14].

This table clearly indicates that China and Kazakhstan have a similar leadership style. This is confirmed by the data in Figure 6, where the Eastern European is close to the Confucian cluster.

3. Conclusions and recommendations

Existing basic principles and values that are important to the Chinese are rooted in the Confucian ideas and principles, such as:

· Inequality in the status of society leads to stability.

· Family - a prototype of all social organizations.

· Beliefs virtue - it is hard work, the acquisition of useful skills and possibly more education, to avoid extravagance and perseverance in the face of difficulties.

These principles are not only important in interpersonal relationships, but also act as organizational objectives and principles. These values include persistence and resistance. They determine the status of the relationship, the desire to preserve this order, thrift, and a sense of shame. Additionally, significant values promote personal strength and stability, care of the "face" of how you look in the other's eyes, respect for the traditions, customs, history and heritage, the mutual exchange of favors, gifts and courtesies.

Based on the analysis and comparison of cultures of Kazakhstan and China, the following are recommendations for Kazakh businessperson who plans to open business in China [15].

In China, a lot of attention is paid to the relationship, but not rules, so you need to build a personal, trusting relationship with a partner, and only then, you can begin to discuss the cases. Therefore, the negotiation process may take a lot of time. Meetings should not be driven into a strict framework. To succeed in China, make sure that participate in the negotiations are old enough senior executives to show partner, that these negotiations are very important to you. Respect the status and power of your partner, even if you think he has enough knowledge. Use the title to show the level of your influence in your company.

In China, the discussion of solutions may take a long time before arriving at a consensus. In a discussion, everyone is asked about this issue, and after that a thorough discussion of all the details follows. Chinese believe that it is better to spend a lot of time on the negotiations and discussions to find a solution acceptable to all.

In China, there is a high level of collectivism index, therefore they try to integrate the identity and authority within the group and focus on the corporate spirit and moral cohesion. As a result, they promote the results of group work and avoid promoting personalities, therefore, establish common goals.

For Chinese society, management is constantly improving process of quality improvement. There may be different circumstances, but they must all be taken into account when making decisions.

References

1. “Census for the Republic of Kazakhstan 2009. Short Summary” (in Russian). Republic of Kazakhstan Statistical Agency. Archived from the original on 23 July 2011. Retrieved 10 December 2010.

2. "The results of the national population census in 2009". Agency of Statistics of the Republic of Kazakhstan. 12 November 2010. Retrieved 21 January 2010.

3. The Constitution of the Republic of Kazakhstan.

4. "Communiquй of the National Bureau of Statistics of People's Republic of China on Major Figures of the 2010 Population Census (No. 1)". National Bureau of Statistics of China. 28 April 2011. Archived from the original on 15 January 2013. Retrieved 14 June 2013.

5. Lewis, M. Paul (ed.), 2009. Ethnologue: Languages of the World, Sixteenth edition. Dallas, Tex.: SIL International.

6. Kaplan, Robert B. and Richard B. Baldauf (2008). Language Planning and Policy in Asia: Japan, Nepal, Taiwan and Chinese characters. Multilingual Matters.

7. Rough Guide Phrasebook: Mandarin Chinese. Rough Guides. 2011.

8. Miller, James Chinese Religions in Contemporary Societies. ABC-CLIO. 2006.

9. Kolstoe, Paul with a contribution by Andrei Edemsky Russians in the Former Soviet Republics, Hurst&Company, London. 1995.

10. Geert H. Hofstede, Gert Jan Hofstede, Michael Minkov, Cultures and Organizations, Software of the mind, Intercultural Co-operation and its Importance for Survival, 2010, McGraw-Hill USA.

11. Latov U.V., Latova N.V. “Mental maps of the world”.

12. Shalom H. Schwartz. Cultural Value Orientations: Nature & Implications of National Differences. Monograph. 2008.

13. Smith, B. P., Dugan, S., & Trompenaars, F. (1996). National Culture and the Values of Organizational Employees: A Dimensional Analysis Across 43 Nations. Journal of Cross-Cultural Psychology, 27-231.

14. House R.J. et al. (eds.), Culture, Leadership, and Organizations: The GLOBE Study of 62 Societies. Thousand Oaks, CA: Sage, 2004.

15. Trompenaars F. Riding the Waves of Culture: Understanding Cultural Diversity in Business. Nicholas Brealey. London. 1993.

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