The Impact of Cultural Differences between China and the UK on Human Resource

Extensive research on human resource management (HRM) practices across different
cultures reveal that national culture is a crucial factor in shaping HRM policies and practices.
A company’s human resources department plays a crucial role, especially regarding the
company’s ability to manage cultural differences and how to ensure long-term success and
competitive advantage in a dynamic global market. The ever-increasing cross-cultural
interaction shows the differences and similarities in cultures in Eastern and Western countries
(Quintanilla and Ferner 2003) . For example, the UK and China have different approaches to
motivational programs, organizational structure, conflict resolution, and communication.
Considering the increased globalization of markets, it is critical for human resource managers
to understand intercultural negotiation, decision making, and cross-cultural communication.
One of the cultural differences between China and the UK is evident in the diverse
operating practices when multinational companies venture into foreign countries. For
example, the Chinese and the British have different structural processes regarding the
management of employees and particularly, in communication processes (Kim and Gao
2010) . The Chinese have a higher power distance score than the UK, which means that
employees are more supportive of the superior-subordinate dynamic in organizations
(Gamble 2003). Therefore, Chinese expatriate managers in the UK have to abandon the
strictly hierarchical system of parent companies. In addition, cultural differences can be
observed in the manner of communication, the power structure, and perspectives of teamwork
in the workplace.
To benefit from local production systems, Chinese and UK multinational corporations
have to adopt more host-country-associated HRM practices. The philosophies underlying
organizational leadership styles, structure, and people management are different in the UK

Cultural Differences Between China and the UK 3
and China. For instance, in the UK, organizations boast a flat hierarchy as opposed to China
which is more hierarchical (Fu et al. 2015) . A flat organization eliminates middle
management, allowing for staff and executives to communicate (Chiang, Lemański, and
Birtch 2017) . However, Chinese management is more hierarchical with middle management
with clear lines of authority. Moreover, both China and the UK have distinct perspectives on
motivation (Khan et al. 2019) . For example, the UK places an emphasis on individualistic
rewards and personal career development. Conversely, the Chinese culture is more inclined
toward collectivist rewards and the systemic progression of different professionals (Newman,
Thanacoody, and Hui 2011) . Middle managers in China are expected to follow a career path
that is set by the Party system. However, the UK has a more flexible approach toward
personal and professional development in the context of HRM.
Chinese firms based in the UK must adapt to the liberal market institutional framework
where there is a higher level of job mobility. The UK has a more elaborate HR system that
focuses on the individual, with structures such as performance development reviews forming
a core component of HR policies and practices (Easterbv-Smith, Malina, and Yuan 1995) .
Therefore, Chinese subsidiaries operating in the UK tend to adopt more practices from the
host country rather than from their parent companies. Human resource systems are more
limited in China, and HR managers conform to formal regulations. For instance, Chinese HR
managers are more likely to focus only on high-performing employees (Khan et al. 2019) .
Thus, subsidiaries of a UK company operating in China might have different approaches to
management, whereby the focus is more on high-achieving individuals rather than
empowering employees at different performance levels.
According to Sheldon and Sanders (2016) , most Chinese managers believe that the UK
system constrains managerial authority. For example, the performance-based reward system
is more straightforward in China but more complicated in the UK. Thus, these institutional

Cultural Differences Between China and the UK 4
and cultural differences result in a trade-off between the benefits of a performance-based
system and investment in training programs to boost workers’ productivity. Gamble (2010)
also revealed that the relationship between Chinese managers and their local employees was
more transactional than casual. This continuum is different from UK managers and their
employees who report a much lower power distance based on Hofstede Insights (Myloni,
Harzing, and Mirza 2004) . Despite their differences, China and the UK also share some
similarities including their approach to manpower planning systems. For example, both
countries boast a strong work culture and are oriented toward growing the economy through
human capital.

Cultural Differences Between China and the UK 5
List of References

Chiang, F.F.T., Lemański, M.K., and Birtch, T.A. (2017) ‘The Transfer and Diffusion of
HRM Practices within MNCs: Lessons Learned and Future Research Directions’.
International Journal of Human Resource Management 28 (1), 234–258
Easterbv-Smith, M., Malina, D., and Yuan, L. (1995) ‘How Culture-Sensitive Is HRM? A
Comparative Analysis of Practice in Chinese and UK Companies’. The International
Journal of Human Resource Management 6 (1), 31–59
Fu, N., Ma, Q., Bosak, J., and Flood, P. (2015) ‘Exploring the Relationships between HPWS,
Organizational Ambidexterity and Firm Performance in Chinese Professional Service
Firms’. Journal of Chinese Human Resource Management 6 (1), 52–70
Gamble, J. (2010) ‘Transferring Human Resource Practices from the United Kingdom to
China: The Limits and Potential for Convergence’.
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Khan, Z., Wood, G., Tarba, S.Y., Rao-Nicholson, R., and He, S. (2019) ‘Human Resource
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Cultural Differences Between China and the UK 6
Myloni, B., Harzing, A.W.K., and Mirza, H. (2004) ‘Host Country Specific Factors and the
Transfer of Human Resource Management Practices in Multinational Companies’.
International Journal of Manpower 25 (6), 518–534
Newman, A., Thanacoody, R., and Hui, W. (2011) ‘The Impact of Employee Perceptions of
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Sheldon, P. and Sanders, K. (2016) ‘Contextualizing HRM in China: Differences within the
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