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The purpose of this report is to analyse the changes to the nature of work in Shanghai and New York. The 2nd section discusses the major changes in the management approaches in Shanghai for the last 50 years (from the 1960s to 2010s). The 3rd section provides a detail analysis in the areas of Leadership, organization structure and work culture; and discussed the impact on the society, organisations and patterns of work.
The 4th section examines the 3 aspects in 2nd country of New York. The 5th section provides a comparative analysis between Shanghai and New York (section). The last section predicts the potential changes in Shanghai, in the next 10 years.
The evolution of Management approach in Shanghai
(from 1960s to 2010s)
Shanghai is a national city in the world, it is the largest city of China. Shanghai is one of the municipalities in China and it is a financial center of the world. Shanghai located in East China, this is a major port in China.
From 1960s to 2010s, management approach in Shanghai had changed a lot. China basicly completed the transformation of socialism in 1956s. In 1960s, China was still a poor and backward country. People are all controlled by the government. And the economic is very slump, so the development of Shanghai was slow. Because China just finished the war and Shanghai used to be a concession, and at that time Shanghai was already a prosperous place in China. In 1960s, the management approach of Shanghai was traditional and controlled by the government. All the business wanted to start would through by the government.
At 1980s, after a long time groping, Chinese government made a new decision was reform and opening up. So Shanghai became one of the special economic zones and the financial center of China. The main management approach of China was planning on the basis of must be in the public sector of the economy, at the same time play a supplementary role of market regulation. ( third Plenary Session of the 11th CPC Central Committee, 1978) This meeting was very important that because it was the third Plenary Session of the 11th CPC Central Committee that pushed the country on to the road of its historic reform and opening-up drive. People increased income and improved their living standard.
In the early 2000s, after the reform and opening up, the development of Shanghai, China had a great progress. More and more input and output increased the economy and many people got many choices to find a new job. In 2001s, China joined WTO that also improve the economy of society. At that time, the main management approach was socialist market economy. Speed up the system of reform and innovation, improving the socialist market economic system.
Situational Analysis of Shanghai
This section is talking about the leadership, organizational structure, and culture of Shanghai.
Leadership is learned, the skills and knowledge processed by the leader can be influenced by his or hers attributes or traits, such as beliefs, values, ethics, and character. (http://www.nwlink.com/~donclark/leader/leadcon.html) Leadership is very important for the society, people always respect those who have a clear view and direction for the future, they can lead the people forward to a right way to achieve the goal. Shanghai is a big city, so many people live and work there. This a a little bit difficult for the leader to control a large number of people. The leader should help people understand the overall of the society, and understand how they can make a contribution for the society and how the society is doing. And there are four factors of leadership: situation, communication, follower and leader. The situation of Shanghai is stable and the development is rapid. With the control of the leader, the followers doing their own business regularly. The leader always communicate with their followers. But almost followers will agree with the leader with every decisions.
3.2 Organizational structure
Organizational structure refers to the way that an organization arranges people and jobs so that its work can be performed and its goals can be met. The organizational structure of Shanghai is traditional and completed. For example, the chart shows Shanghai Municipal Government structure. From this chart we can know that there is only one final leader in this organization, and follow it, there has some different departments, and every department has their own leader, but these leaders are followed by the final leader. After these departments, there has some branches, and each branch also has their own leader. In each branch there has a lot of employees work in the department.
Organizational structure is very important for Shanghai. Each city need a clear structure for itself, because it can be good for the leader to hold the people under leaderââ‚¬â„¢s control. Each department is very close, and the work partners can help with each other.
Shanghai is a multicultural city of China. Known as "Shanghai-style culture", the Shanghai Culture has gradually taken shape from integrating China's traditional culture of Jiangnan (Wu Culture). With the reform and opening up, Shanghai built a lot of new constructs, such as Shanghai theatre, People Square, Henglong centers and New world centers. These show a new Shanghai to the people all over the world. Many foreigners come to Shanghai stay here and work here because it is a new financial center in the world. People can find different cultures here, such as Western Chinese culture, Eastern Chinese culture, European culture and American culture. Many different cultures come here and mix together become a new culture. But culture in Shanghai almost are very traditional, people there are very euphemistic and modesty. The culture of organization is also multiplied, as we know, many foreign investors invest in Shanghai, so there are many foreigner companies and manufacturings. Different companies have different ways to do the business and management approach to hold their staffs. But in the traditional companies, leaders have the traditional thoughts to operate the company. For example, the public behavior: saving face, or avoiding unappealing public displays, is important in China. Bargaining: Indulge your bargaining skills freely in China, especially in outdoor and indoor markets. And Chinese all use chopsticks on the table, this is also the main culture of China called table culture. In Shanghai, there has a lot of festivals. So during that time, people will celebrate the festivals with their families and friends, this is significant for Chinese people, because this a good chance to show their love and respect to their families. So in the society, no matter who are you, respect is very important for Chinese, they should respect people who are older than them. The same in the traditional companies, hierarchy is clear between the leaders and the followers.
Situational Analysis of New York (2nd country)
This section is talking about the situations in New york. It is a state in the Northeastern region of the United States. It is known for its status as a center for finance and culture and for its status as the largest gateway for immigration to the United States.
Leadership is varied in New York than in Shanghai. In New York, there are five: directive, participative, empowering, charismatic and celebrity. Directive now is declined in New York. In the past, the leader gave the tasks to the employees directly, and asked employees to do the work. Participative is the normal way in New York. People always participate in any decisions. For example, people working in the company and they can participate in every decision of company, they have the right to decide what they want. For example, American presidential election, everyone has the right to elect who can be the president in every state. Empowering leadership, is new and stresses delegation of responsibility to employees. New York companies that operate with autonomous divisions employ this style of leadership. And the main point of empowering leadership is to energize the employees in the company. Charismatic leadership means people follow a leader who looks like a leader. Celebrity leadership is that people follow the leader who is famous in the society.
4.2 Organizational structure
The organizational structure of New York is similar with Shanghai. The leader gives the work to the follow department, and the leaders of these follow department divide the work to every staffs. They have a clearly structure, and everyone has different skills to do the work. If they have any problem, they can ask the leader for help, and the leader will not blame on them.
Each department has its own responsibility to do the work with the control by the leader, and every step is very clearly.
Since the 1990s, with the globalization of economy, American culture has formed a powerful "American-style" power, radiation all over the world. American culture has become a real "strong culture" to the other countries. The culture in New York is totally different with Shanghai. New York is a very opening and fashion city in the world. New York is a Western culture, based on British culture from the other parts of Europe. People here have their own personality. New York is famous for its shows, and finance. Liberal democracy is one of human civilization in the United States, although only 200 years of history, it created the economic, military, culture is unprecedented. American culture insisted that liberal democracy is the goal of the pursuit of all mankind, is more advanced than socialism goal, second only to communism. America won the global "cultural hegemony", and "cultural hegemony" status, in turn, become a useful instrument in American influence all over the world. Cultural industry in the United States use their own advantages, in a way that is induced by forcing the rest of the world's national cultural identity, it also rejected the national culture of their own identity. The global expansion of American mass culture, there are two aspects of spontaneous behavior and government behavior. In practice, two aspects of enterprise and government's promotion will end up together. Enterprise business activities will be affected by the government's support, the government's cultural policies, would be the multinational culture pursued by enterprises.
5. Comparative analysis between Shanghai vs New York
Compare with Shanghai and New York, we can know many differences between these two cities. In general, Shanghai and other Asian cultures reflects the social scientists known as "collectivism" orientation. These pay attention to the group cooperation and individual modesty. On the contrary, New York often show an individualistic orientation. They pay more attention to independence. Self-realization, if not an expectation, but at least more easily accepted by people. Americans pay more attention to "freedom" is not subject to external constraints.
Shanghai social relationship more formal than Americans, level more clearly. Chinese people are very accustomed to hierarchical structure, they can based on their position in the structure and practices to determine their own behavior. Americans are more focused on informal and equal relationship. Americans usually is the same as the social status of people together is the most comfortable; They don't attach importance to the social hierarchy. Interpersonal communication is the most important. Numerous examples, a lot of students to professors, for example, and the younger generation to older people call first name directly. The "more", "the identity" no formality performance, in the eyes of many easterners are thought to be impolite behavior. Americans are quite open and direct, especially in the professional discussions, often uphold the different opinions and debate. Instead, orientals tend not to direct conflict, but diplomatically by higher status of a third party to clear.
Education of Chinese people usually avoid direct conflict, public criticism and controversial topic. They want to maintain harmony among the surrounding, leave "face" for others. On the contrary, Americans are usually willing to directly face the problems, criticism, discuss contentious issue, and insisted that he thinks is "facts" opinion. They didn't care about "face". The role of laws, rules and regulations: in terms of communication, the Chinese usually trust relationships, more, less trust written rules and procedures. Americans generally believe that the written rules apply to everyone, and can produce fair and reasonable procedures and decisions. New York stays on rules, Shanghai stays on culture. United States is the earliest start practice all civilization achievements into the text section of the country, and now it has a perfect legal system, policy system, public programs, etc., in the rule above enjoy personal freedom, or compromise between rules embodied in individual freedom. When rules become provisions, all can be turned into order, and if the rules conform to the need of social production and life, so naturally produced higher execution efficiency, American society relies heavily on good written rules. But rules reflect only system, values are the cornerstone of the foundation of the drive system. American values include two aspects, on the one hand, from the French revolution in freedom, equality, universal love thought, on the other hand is the transplantation of traditional western Christian culture. New York is a free agent in the alliance system, and their strength is often from a loose and free creation. Americans quite advocate individualism, Oriental society (of course include Chinese) emphasize family and class level. This is a very important and influential respectively. Americans advocating personal traits of many examples, parents less intervene in children's development.
Shanghai and New York are different in terms of consumption. As a typical representative of a large number of consumer, people prefer to a large number of consumption, consumption in advance, and even excessive consumption. On contrary, People in Shanghai prefer to saving. In addition, compared with New York companies, Chinese enterprises exists big disparity on marketing management, this objectively has led to the United States and China consumer market supply. Compared with the market, for example, in the Chinese market, whether it is product type, quantity, quality, style, price, promotions, or after-sales service, is a great disparity in many aspects, to some extent, can say is difficult to meet the customer's real needs. And America's consumer market, by contrast, provides a number of companies to market products and services, can effectively attract consumers real consumption, and through on financial service such as installment plan fully tap potential demand. People usually ignore differences between enterprise marketing a very important reason is the development of Chinese enterprise marketing level, if only comparison with their past rather than into the lateral comparison, the reality of the market in developed countries is difficult to find the problems.
6. Predictive changes in Shanghai for the next 10 years.
As we know that America is suffered from the financial crisis, and the development of economy is downturn. So New York will face a lot of problems in the next 10 years. But Shanghai is not really suffered from the crisis, and Shanghai economy is the part of the global economy, China's macroeconomic situation must be under the influence of the international situation. After this round of financial crisis, the global economic and political changes have taken place in the larger environment, so we need to reframe the next 10 years, some big trend of the development of the global political and economic, to clarify the development strategy of Shanghai over the next 10 years. Shanghai as the financial center of China, it will still keep increasing in the future. Due to the repair of financial crisis, If Shanghai wants to continue to maintain a high growth rate, it must find new growth drivers.
Culture creation is become a main power to promote the development of society. First, based on the great practice to promoting cultural innovation in real life. Second, based on history and culture, promote cultural innovation in inheriting good tradition. Third, focus on the masses demand, promote cultural innovation in the service of the people. Fourth, keep up with the world trend, absorption of all outstanding civilization achievement to promote cultural innovation.
In the next 10 years, China's GDP grew by an average of 8%. In 2020, China's economy will reach 75.7 trillion yuan, according to the current exchange rates, equivalent to $11 trillion. When consider the appreciation of the renminbi is likely to be close to US level, more than twice as much as in Japan, is about to 20% of global GDP.
A national employment is close to the economy. China's economy will face a turning point, PMI, released from the national GDP can see that China is going to recession. Because China's good economic, developed manufacturing can absorb a large number of employment, real estate operating can absorb migrant workers employment, China's unemployment rate will decline.In the future, people in Shanghai may find more choices to get a good job, because with the development of society, more and more investor will choose Shanghai as their best choice to do the business, people can find many jobs for themselves. And at that time, there will have many entertainment centers for people to stay. All the infrastructures will be promoted. People can enjoy many others services from the government.
This report shows the difference between Shanghai and New York, and we can know that the management approach of Shanghai still has a long distance with New York. But with the economy development of China, Shanghai will keep increasing in many aspects in the future, maybe one day Shanghai can catch up with New York, become the most important financial center in the world. And New York is also repairing with the financial crisis, with the strong support from US, New York will be recovery in a few years. So we should improve the management approach to drive the development of society.