It is often daunting to work in a foreign country. For a casino executive who knows little about Chinese culture, moving to Macau to take up a new managerial position can be exciting and full of challenges. Once in Macau, the new manager has to adapt fairly quickly to this dynamic gaming market. This includes getting used to a Chinese-speaking environment, trying out authentic Chinese food, interacting with Chinese people, and settling into the job. I have spoken to many expatriate casino executives working in Macau and to those who travel regularly to the city. One thing that I noticed is that they often think they know much about the Chinese culture and its people. At times, they acted like they were experts. In most circumstances, they do not know that well. Many foreign casino executives that I know misinterpret the Chinese values. They fall into the trap of rating Chinese culture in terms of good or bad rather than focusing on how different it is. Some even find it hard to manage their Chinese employees and service their Chinese gamblers because of cultural differences.
Obviously, a good understanding of Chinese culture is important since around 90 percent of visitors to Macau are Chinese from Mainland China, Hong Kong and Taiwan (ranked according to visitor numbers). Casino executives coming to Macau are likely to lead a team of Chinese subordinates who may have never worked under a western or western-style manager. Effective management depends on a good understanding of your market (e.g. Chinese customers) and internal environment (e.g. Chinese subordinates). Hence, it is extremely important that every foreign casino executive in Macau receives some education on the Chinese culture. In this article, I outline some of the issues and practices that foreign casino executives must be aware of.
Fundamental to the understanding of the Chinese is to recognize that Confucianism is widely accepted by the Chinese society and now form a large part of its culture. Confucius thoughts and teachings on individuals’ societal roles and responsibilities to maintain harmony and order have a significant influence on Chinese people for many centuries. In ancient dynasties, Confucius’s philosophy was adopted to help manage the kingdom and its subjects. The teachings of Confucius comprised four key principles: the hierarchical relationship among people, the family as a basic unit, Jen, and the emphasis on education. According to Confucianism, an individual is a social creature. Social order and stability depend on properly differentiated role relationship between particular individuals. There are five basic relationships called “Wu-Lun,” or the Five Codes of Ethics: ruler-subject, father-son, husband-wife, older brother-younger brother and between friends. The five relationships are the basis for all Chinese social networks. In fact, the word “Lun” was used in Confucian ideology to refer to a concept similar to guanxi. Because of the influence of “Wu-Lun,” Chinese become used to judging their position in a certain circumstance and then taking corresponding responsibilities of their actions (i.e. typical of a high context society). They often view themselves as interdependent with the surrounding social context. The self in relation to other becomes the focus of individual experience. Anyone who wants to understand Chinese people must recognize that Chinese beliefs and behaviors are largely shaped by these Confucius values. Below are seven things you got to know and another seven more that you got to do in Macau.
Seven things you got to know:
- Silence is almost a virtue to the Chinese. Perhaps this may not be apparent in some rowdy Chinese gamblers from the Guangdong province. Still, there is a saying: “?????????????” – A bucket full of water makes no sound; a bucket filled in half makes a lot of noise. Also,“????”- An intelligent person acts dumb. Chinese believe that if they are good at certain skills, they do not necessarily show it to others. Very often, Chinese do this by verbally “belittling” themselves in front of foreigners or outsiders and then reveal their talents later on – a show of humility, which is a good virtue according to Confucius. There is another saying: “????”- An arrogant army will lose the battle. The wise master is a quiet, humble one that does not reveal his skills until there is a need to do so. The sudden revelation of great skills will bound to impress all and makes the master proud of himself. So, Chinese employees may seem quiet to a new manager during discussion. Sometimes, they are simply reserved towards outsiders. More often than not, they are just playing dumb (or hiding their true talents). However, when you are able to break into their in-groups, you will notice that your Chinese employees (or even customers) can be very different from what they are like in the casino – they can be chatty and witty.
- Chinese values reciprocity. They remember favors and, of course, disfavors. So, serve your Chinese customers well beyond what is needed and they will remember that. If you treat them badly just once, they will remember for life. At the same time, any requests that you made to your employees or customers should be made carefully as Chinese do their mental sum well. So, they will remember what you owe them as much as what they owe you.
- There is a high respect for authority (i.e. high power distance) as taught in schools over the centuries – an important value of Confucianism that helps to maintain social order since ancient times. Students treat their teachers and professors like someone who know it all and cannot be offended. “?????????” – He who is my teacher for a day is my father for a lifetime. Authority at workplace is readily accepted even if there are any disagreements. If a dealer does not like the ideas of his pit manager, he will not disagree. He would rather try other ways to let the pit manager knows that the ideas are bad. Because of such values, Chinese are less confrontational especially to their superiors. If you are a junior gaming analyst, then during department meeting, you are to behave like one: say little, do your homework, made no mistakes, and do not make a fool of yourself in front of the manager and other senior analysts. Because of such values, Chinese inspire to become their own boss so they can be at the top of the corporate hierarchy.
- Chinese are a rather collectivistic group of people that clearly defines who is their in-group (i.e. people they trust) and who is their out-group (i.e. people they don’t trust). If you are new, Chinese want to know if you are a genuine person; they traditionally treat foreigners or outsiders with suspicion. There is a famous Chinese proverb: “???????????” – Over a long distance, you understand the strength of your horse; over time, you understand the character of your friend. A Chinese uses time to test the true character of his acquaintance.
- Chinese practice a high context communication style – one that is dependent on circumstances and is indirect. When unhappy, Chinese do not always express themselves verbally. They are more likely to show “perceived” measured consideration and return their displeasure through other means. At the same time, Chinese males typically think they are tough, cautious, wise, and profound. And they want to be seen and treated accordingly. They can do anything (i.e. lying) to get out of a situation that they do not feel comfortable with. Some foreigners misinterpret such actions to be deceptive when they found out the true thoughts of their Chinese counterparts. In addition, creative verbal expressions by outsiders are often frowned upon. Because of the high contextual nature of communication, unanticipated expressions by outsiders can cause misunderstanding and appear rude to the Chinese.
- Some Chinese believe that relationship is tied to fate and destiny. If you form good relationship, it will tie you and your Chinese counterparts for life. This is a very important part of guanxi development. It justifies all things you may have to do to gain group trust and loyalty since you know that once developed, the guanxi can last forever (even in the next life).
- Chinese have different forms of superstitions and taboos. These beliefs have intertwined with the Chinese society and some become part of the Chinese values. Feng shui, for example, is now looked upon as a form of science and the practices of simple forms of feng shui have been widely adopted by the common people (e.g. selecting the right days to gamble).
Seven things you have to do:
- Remember the seven things you got to know.
- Be a good listener—show your interest even if you do not. Do not interrupt when a Chinese customer speaks. Remember: Chinese are listening beings. Also, there is a saying “use your heart to listen”. To Chinese, good communication uses the heart and not the mouth.
- Keep your promises to your Chinese customers and employees. There is a famous saying: “?????????”- When something has been said, even four-horse wagon cannot overtake it. A person must honor his words. Chinese likes people to keep their promises, even though they themselves do not appear to be doing so. Chinese history books wrote about how ancient Chinese heroes kept their promises and achieved great things.
- Develop guanxi to survive in the Chinese society. Form networks with your heart by showing group loyalty and support. Be human and show that you care. Without such connections, you will not be able to achieve great things.
- Show your loyalty in order to break into in-groups and you will be rewarded for it. More often than not, foreigners who just arrived in Macau are eager to show their talents. This is a society that values group loyalty more than individual abilities. So, loyalty comes first; individual abilities come second.
- Treat your employees with respect and restraint. Be flexible. Give face and do not shame them. This is important to the Chinese. A famous Chinese proverb highlights the importance of face to a Chinese: “???????” – a person needs a face, a tree needs a bark. Make the other guy looks good in front of others. Build trust with your Chinese employees by connecting with your heart. Be patient. Again, be human. Remember: Trust takes time to build. So, take it slow and steady.
- Even if you don’t believe in feng shui… act like you do. Chinese are hooked into this type of science, gamblers and employees alike. Get a feng shui book and read about the basics. In addition, go find out more about common Chinese superstition beliefs and behaviors.
Desmond Lam is an associate professor and acting program director of hospitality and gaming management at the University of Macau. He can be reached at DesmondL@umac.mo. This article is original published in Casino Enterprise Management, July 2008.