Cross-cultural Management Of FAW-Volkswagen Automotive Co. Ltd.

World economy is becoming globalised and Chinese economic status is much advanced; therefore more and more German enterprises go to China establish China-German joint-ventures. Meanwhile Chinese enterprises begin to invest overseas; Germany is one of the most important goal markets for them. Joint-ventures play anyway an important roll in economic relationship of two countries.FAW-Volkswagen is one of the most successful car makers among so many china-germane joint-ventures nowadays in china; good Cross-Cultural Management is an important factor for success.Cross-Cultural Management is newly developed study for international business by the end of 20th century. China and Germany both are typical countries of orient or west culture. Due to different history and culture background, management is also different.Owing to the cultural and social divide in international business, conflict is normal. This has advantages, for example, numerous viewpoints and good cooperation might be well organized and contribute economic benefit and better competing condition from globalization.On the other side there are also disadvantages: On-going disputes result in less efficiency and delayed decision-making, even though it can cause social crisis in the long term.To compare Chinese management with German we should realizes firstly, that Confucianism has great influence on Chinese people. The important culture gap between Chinese and germen culture are as followed:1.About person relationship: in china big-family sense is important, in Germany is more individualism. 2.Action: in china it is more relationship-orientate.3.Thinking: Chinese usually pay more attention to meaning; germen tend to direct and clear.4.Working style: Germen are preciseness and pay special attention to planning; Chinese are more flexible.We can divide cooperation of FAW-Volkswagen in three phases, from foundation in February 1991 is first phase, Chinese and germen colleagues have big gap. Chinese colleagues have still country-owned enterprise consciousness, but germane colleagues come from mature market-economic country, Volkswagen enterprise culture has big influence on them, therefore both have conflict regularity.From 1998 to 2005 is the second phase, both parties adjust and compromise themselves; frequency and intensity of conflict are obviously reduced.From 2005 is the amalgamation phase, Cross-Cultural Management of FAW-VW has already mature system. The company has built own enterprise culture to force cooperation, has also high efficiency management structure, deal with product has effective process, experience and know-how can be good transferred between germen and Chinese.Volkswagen AG is one of the automobile companies, which firstly realize the good development opportunity of china automobile market. Till now Volkswagen still has big market share and enjoy advantage from earlier market incoming.FAW-Volkswagen manages the cultural gap and tries to harmonize by followed measure:1. Accept and harmonize culture gap.Man should accept culture gap. We can just treat it as an advantage not a disadvantage, reasonable us it and create good chance for company development.2. Ensure effective communication.Man should avoid selective apperceive and fixed impression; German colleagues should pay attention to the importance of reputation in China; properly use verbal and non-verbal communication.3. German joint-venture enterprises should be selective in their choice of managers at all levels and Try to make staff localization.The overseas managers should have cross-culture consciousness and the ability to deal with people from different culture background; should have not nation prejudice and respect custom and market characteristics of another nation.Staff localization can reduce personnel cost for international business; and harmonize with local culture; local staff can special good in sales, because they understand local sales situations better and are more sensitive for consume trends.4 Exert own advantage and achieve together good efficiency.Both parties of FAW-Volkswagen have good cooperation background. Chinese party can good manage human resource, judge market situation and deals with customer and government properly; Chinese party has dominant position deal with above business. German party has technical advantage, exert leading function with enhance and maintain products quality, products and parts upgrade as well as production specialization. Accept Chinese-germane culture gap but try to minimize, and focus on common ground, this is one of the important success factors of FAW- Volkswagen.5. Hold culture seminars regularly;Cross culture seminars are a basic way to solve cross culture conflicts; with seminars man can understand better the nation and company culture of opposite side.6. Man should build its own enterprise culture.Establish special and advanced enterprise culture is also one of the effective measures. As a core point of enterprise culture, FAW-VW will try to be"the best automobile Joint-venture and the most attractive company for staff in china".Enterprise culture is one of the core competition factor for a firm, has important influence on company achievement. Enterprise culture can tangible and intangible profit a firm economic and socially. FAW-Volkswagen has defined above mentioned measure and put in practice, and this enhanced long-term cooperation greatly and achieved good economic and social efficiency.