to upgrade a young businessman to

business class on a flight to Japan. He kept politely

refusing their generous offer. They assured him there

was no extra charge. He would not be inconveniencing

anyone. They would be very happy if he would accept

their offer. The man became quite anxious and finally

explained that he could not possible accept the upgrade

offer. The reason? His boss had a seat booked

in business class.

How unusual this seems against a Western backdrop, where

social and business relationships have become so casual. But 

it’s the way things are done in Asia. The respect for authority

explains why bright people are not willing to voice their opinions

in meetings. It is also the reason Western style brainstorming

and beef sessions don’t work with people of the Pacific Rim.

Asian social hierarchy rules all interactions. Deference

must be shown to those in authority. In business

meetings, one does not speak until the “boss” has spoken.

One never interrupts. One does not dare to express

an opposing opinion. There is a vertical divide

that protects face for both “boss” and employee. People

know the roles that they are expected to play. Managers

want, expect, and demand a show of respect from

subordinates, in very specific ways. And if you manage

employees with an Asian background and education,

you will enjoy their full productivity only when you

take into account their deeply programmed need to

show respect to authority.

Calvin Wang received a Western university education

in China and worked there as an electrical engineer

for ten years before moving to Canada. Calvin

says that, even after five years in corporate North

America, he is still uncomfortable speaking up to his

manger to express a different opinion. He still carries

the cultural imprint of his schooling where he was taught

to show respect to anyone in authority. As Calvin explains,

“To show respect, we cannot show that we are

smarter or quicker than the boss. You always wait for

him to express his opinions first. People of Asian culture

are taught that it is not good to be too smart because

that does not show respect to the boss. It disturbs

the order, and you could be punished.”

Calvin’s fear of insubordination no doubt goes back to early

childhood, when cultural values are transmitted through stories

and school day rituals. One of the most popular stories

involves Cao Cao, a poet king of the Han Dynasty:

King Cao Cao loved riddles. He would often challenge

his ministers to guess their meaning. His first secretary,

Yang Xiu, was a talented scholar who regularly

succeeded at deciphering the King’s cryptic messages.

Yang Xiu did not stop with the word games. One

day, quite by accident, he came across the King’s military

strategy. He immediately set about decoding it.

Now knowing what the King’s strategy would require of

him, he ordered his troops to decamp. He anticipated

great honor, and perhaps reward, when the king learned

of his cleverness. But when word got back to the court,

Cao Cao was outraged. He ordered Yang Xiu executed

on the spot. Poor Yang Xiu’s head was mounted on a

gatepost as a warning to others who would dare to

usurp the kings’ authority.

The moral of the story, in Calvin’s words: “Your wisdom

is related to your rank or class. You shouldn’t show

that you are smarter than the person in authority. So

when a group of people is sitting together, even if the

smartest person in the group interrupts his boss, others

will be very uncomfortable with him.”

A person’s rank, status and prestige depend upon

place of employment. Everyone who works for a highly

ranked company shares in its perceived prestige in

the marketplace. This holds true from the grassroots

to the CEO level. That recognition is the purpose of the

lapel pin, Loyalty is to the company first, not to the

profession. If you ask what a person does for a living,

the response will be, “I am a member of the staff of

Haier Group or Toyota or Samsung.” Not, “I am an engineer

or salesperson.” There is almost no communication

with members of one’s professional outside the

work circle and professional associations do not exist.

Education is the second factor in determining rank

and status. Interestingly, prestige comes not from one’s

profession but from one’s alma mater. The higher the

school’s standing, the higher the status of the individual.

This is why there is such intense competition for acceptance

into top-ranked universities. The prestige extends to one’s

entire family.

The third indication of rank is seniority. Within the corporate power

structure, groups are ranked by seniority, according to year of hiring.

Since age if revered, even to suggest that a person may be too young to

remember a certain event (considered a compliment in Western culture)

may cause the Asian to lose face. You are implying that the person is

too young to warrant your respect.

Next is the ability to get along well with others. Promotions go to the

person who maintains harmony, and can be counted on to care about

the welfare of all.

Ability comes last.

Business reflects the hierarchy of rank and status

to a lesser extent than in Japan and South Korea due

to Communist influence. However, Chinese are very

status conscious. They are impressed by degrees from

Ivy League schools. They consider it important to show

status through outward displays of wealth. You will experience

this first hand if they invite you to dinner at a

restaurant — at the cost of a month’s salary.

Name brand imported items are popular, including

designer clothing and accessories. People may not yet

have money for homes or cars, but they are very well

dressed. (And most still do not understand why we

would lower our own status by wearing jeans and cutoffs.

For this reason, save the sweat suits for exercise

and alone time.)

Guanxiwang — the power to get things done through

one’s connections — is another visible sign of status.

The better-connected one is, the more value one accumulates

for future exchange purposes, the greater

one’s status and prestige.

The show of humility as a virtue is deeply rooted in

the Asian character. Humility, like face, affects all aspects

of the business relationship, from the first greeting,

to the business card exchange with bows and formal

introductions, to how compliments are received. From

childhood, they are taught to be modest. The lesson

is, “No matter how great you are, you can always

learn.”

Appearance is deceiving.

The show of humility cuts across rank and status. Even

powerful, intelligent, wise people go to great lengths not to

show their mental gifts. Often, the more powerful the person,

the greater the show of humility.

But it would be an insult to treat the person the way

he is acting. This means that you must proceed cautiously

in establishing a new relationship. It will take

time to determine who is the highest-ranking person.

You will need to observe the subtle cues of rank and

status before meeting with the players.

Protocol requires that Asians enter the room in order

of seniority (determined by age, then rank). This

applies to business meetings and after-hour social

occasions, not just in the more formal context of negotiations.

The practice provides important clues for you:

it tells you who expects to be shown the greatest respect.

This is important to know, since varying levels

of politeness are required, depending on the person’s

rank and status.

Likewise, Asians will assume that the first person

in your group or delegation to enter the room is the senior

person. That is the person to whom they will show

the greatest deference. And that is the person whom

they expect will lead the discussion from your side.

In meetings, the most important person sits in the

center, facing the door. The hierarchy extends to restaurant

seating. If you are the guest of honor, you will

sit in the middle of the table, facing the door. The next

highest-ranking person will be on your right. Your Asian

host will sit opposite you. The next highest-ranking

person will be at his or her right. And the pattern repeats

itself. The proper protocol is to wait for your host

to point out where you will sit.

To not follow the above procedures is confusing to

Asians. Conversely, following established rules of etiquette

when you are hosting Asian guests will prove

reassuring to them. Your meetings and other business

interactions will go much more smoothly.

Using the third person form of address (rather than

the word “you”) is a sign of great respect. Not that using

the title before the name adds more face.

• “Does Mr. Director wish to comment on our proposal?”

• “Would Mrs. Wu please sit at my right at dinner tonight?”

• Would Mr. Wong do me the honor of visiting our offices

the next time he is in the West?”

Find out ahead of time the rank and status of everyone who

will be attending the meeting. If you are not able to ascertain

the pecking order in advance of the meeting, show the

greatest respect to the oldest Asian in the group, since

age confers rank (although it is not the sole determinant).

Take a moment after the exchange of business

cards to study the card. Your Asian customer’s business

card will show the person’s rank and status. You

are expected to act accordingly.

Show your own rank and status as well. Make sure

your business card reflects your company’s prestige,

your education, and your authority. In your conversation,

position your company’s size, technology, and

global reach.

During initial greetings, stand to the right of the person

who is introducing you. (Since the rank and status

of the person who introduces you extends to you, this

should also be thought out ahead of time.)

Acknowledge and shake hands with the most senior

person first. Do not sit down until you have been

invited to do so.

And remember to never interrupt.

In China, women are accepted as equals in higher

levels of business. During the Cultural Revolution,

women were expected to work, both in the government

and private sectors. They have equal education

opportunities and work is considered their contribution

to family and society. Performing well reflects on their

family.

Respect shown to seniority and rank applies equally

to women in the boardroom. Women do not receive

preferential treatment from their male colleagues. Men

do not help them with their coats, open doors, or let

them enter the room first.

So, there is no apparent sexism in Chinese business.

However, those in the know say there are still

economic and social inequalities.

Unlike Western women, Chinese women do not want

to look young, because youth deprives them of status.

For that reason, you are advised not to make observations

about their youthful appearance. Comments that you may

consider complimentary may cause embarrassment and

loss of face.

Male dominance is strong in Japan and South Korea. Barriers

exists and women must work around them to succeed.

If you are a woman, the best way for you to prevail is

to be patient and to curb your impulse to come on

strong. Allow time for the Asian businessman to appreciate

your expertise, humility, knowledge, ability,

and dependability. Working for a top-ranked firm, possessing

impeccable credentials, and having the hide

of a rhinoceros will ease the process. A great sense of

humor (which you keep to yourself) will keep you sane.

You must not take offense at the male business

rituals, praised in men and scorned in women. Women

should not smoke. Women should not drink alcoholic

beverages, and certainly, never to excess. Women

should not laugh. Yes, this is a sexist double standard

— and it’s a reality.

But think of it this way: time and time again, women

have shown they are often better equipped to deal with

the complexities and nuances of communication in high context

cultures. Be glad of this great asset.