Michael N. Young

Sinyi Real Estate in China: The Challenges of Maintaining an Ethical Business Culture

Sinyi was one of the most successful real estate agent companies in Taiwan and China mainland. Sinyis founder, Chun-chi Chou, embraced Confucian perspective in his management and successfully cultivated a people-centered corporate culture for both Sinyis employees and customers. Mr. Chou proclaimed trustworthiness and fair dealing as the guiding principles for the company. This was in contrast to the immature environment of the real estate brokerage industry in China, where immoral real estate agents were common. Sinyi also signed a master franchise agreement with Coldwell Banker Real Estate Corporation (Coldwell Banker) as its China market entry strategy. However, large international competitors and local real estate agents were aggressively seizing market share and it became difficult for Sinyi to sustain its vision and its unique management style with high-speed expansion. The case highlights the business ethics that has been a cornerstone of Sinyis success and outlines competitor and industry conditions in Chinas real estate industry, focusing on the following questions: Should Sinyi adhere to its corporate philosophy of righteousness and trustworthiness among its staff? Does Sinyi need to change its business model in countering its competitors aggressive moves? What necessary measures must Sinyi take in the ever-changing market? What role did Chous responsible leadership play in Taiwan and would it be working in China mainlands market?

Global Information Technology Company, Ltd

This case presents a scenario that pertains to the effective management of human resources in a Chinese cultural context where guanxi and face are of considerable importance. It depicts actual situations in detail, but the names of the organization and participants have been disguised at the request of the interviewees. The scenarios deal with issues of managerial appointments, promotion, husband-wife team in an organization, threat of resignation, effective leadership and achievement of subordinate respect and performance. Human resource management in China often requires a different approach from that espoused in the Western literature that currently dominates orthodox management theory. With Chinas growing economic power and the numerous foreign joint ventures in China, examining the cultural differences provides important insights for understanding the ways in which the norms and informal rules in general, and face and harmony in particular, function in Chinese organizations.