B.

Commonalities and Differences of decision making style of

1. Chinese and Filipino Culture

● Risk Tolerance - the chinese are very risk averse, which stems from their

fears of losing face. This concept of face saving means everything to a

Chinese person. A poor decision could cause them to lose face amongst

their peers, which would be devastating. China tends to have strict

procedures to which their people adhere closely, which is attributable to

their strong nationalism. Unlike Filipinos, they are so called “risk takers”.

● Autocratic Leadership - China's society is based on the superior making

all of the decisions, because their value system presupposes the superior

to be automatically the most wise. This can be seen in the negotiation

process where the Chinese workers rely on the leader's decision. While

with Filipinos, they commonly use this called ‘participative leadership’

which invites input from employees on all company decisions. The staff is

given pertinent information regarding company issues, and a majority vote

determines the course of action the company will take.

● Subjective Approach - The Chinese business' are more subjective in its

approach, basing decisions on emotions. Similar to the Filipinos, people

are extremely careful to ensure that others do not suffer embarrassment

or any sense of shame (hiya) as a result of their own actions or their

inability to meet the expectations of others. It is considered to be very bad

behaviour to criticise another in public, as this is the greatest insult that

can be given.
2 Western and Eastern

● Autocratic Leadership vs. Participative Leadership - Western culture

bases decisions on autocratic leadership where a decision will be made by

an upper level member of the hierarchical structure. In fact, in meetings it

is wise to look to senior management's actions as an example of how one

should act. While with Eastern management, falls in the middle between

autocratic and participative leadership. While management believes in the

merits of decentralized decision making it still often depends on superiors

to make decisions.

● Locus of Control - managers in Eastern countries have an internal locus

of control and believe that through their decisions and problem solving

abilities that they can control the outcome of a situation.

● Collectivist vs. Individualistic - American society in general is the most

individualistic culture. This often leads to a lack of loyalty to the firm and

can lead to high turnover within the organization. While Westerns lies in

the middle between individualism and collectivism, participation within the

company is typically done for the overall benefit of the organization.

● Objective Approach - Eastern management are very objective decision

makers and look at all of the alternatives and facts when making

decisions. Western society also take a very objective approach to decision

making. Emotions and feelings will not get any negotiator very far in the

negotiation process.
● Moral Idealism vs. Utilitarianism - Managers in the United States take a

more utilitarian approach to making decisions basing their decisions on

the greater good of the company. While the greater good of the company

is kept in mind, the individualistic culture of the U.S. often overrides the

idea of the greater good of the company and changes it to the greater

good for "me." Managers in Germany take a more utilitarian approach to

making decisions basing their decisions on the overall good of the

company.