Guanghua School of Management Peking University China in Transition: Economy, Organization and Management Fall 2007 COURSE OBJECTIVE This course is designed for international students studying in Guanghua’s MBA program. The objective of this course is to help these students gain a broad exposure to the various aspects of China’s economic, organizational, and management issues. The students are not only expected to learn, but also to understand and appreciate the Chinese way of business management. This course is suitable for students who aspire to success in the Greater China area. COURSE STRUCTURE AND REQUIREMENTS Students should organize into discussion groups with no more than 5 members in each group. Each discussion group is required to write a Reaction Paper (min: 3 pages, double-spaced) after each session. The reaction paper shall include your inspirations, thoughts and ideas, questions and puzzles, debates or arguments from different perspectives, and, perhaps, comparative analysis. 40% of your grade will be based on your group’s reaction papers. Please send the reaction paper to respective instructor one week after each class. Late papers will be penalized at the instructor’s discretion. Each student is required to write a Term Paper on one of the subjects covered in this course. The term paper is no fewer than 10 pages, double-spaced. Please submit the term paper to the instructor who covers the subject of your term paper no later than two weeks after the course ends. Late term paper may result in loss of course grade. 60% of your grade will be based on your term paper. Your final grade will be deducted by 5 points (on 100 points scale) for each session you miss. COURSE OUTLINE Bank Lending, Corporate Governance, and Government Ownership in China Regional Growth and inequality Entrepreneurship in China China’s Stock Market Corporate finance, corporate governance, disclosure, financial markets Environmental and Social Sustainability Multinationals in China Leadership behavior in Chinese organizations Political Economy in China’s Transition Family Business in China Session 01 Session 02 Session 03 Session 04 Session 05 Session 06 Session 07 Session 08 Session 09 Session 10 Dr. Lihui Tian Dr. Yuyu Chen Dr. Jianfeng Wu Dr. Guohua Jiang Dr. Yi Zhang Dr. Dongning Yang Dr. Dean Xu Dr. Hui Wang Dr. Lian Zhou Dr. Jianjun Zhang Session 01 Instructor Telephone Lihui Tian 62757900 photo Email email@example.com Research Area Seminar Topic Assessment Cases Corporate Governance, Corporate Finance, Investment Banking Bank Lending, Corporate Governance, and Government Ownership in China Lan Tian, BoC Gao-shan Case and BoC-HK Description and Schedule The financial structures and transition features of the Chinese economy is discussed during this seminar. We focus on bad loans, relationship banking and oversea IPOs of the Chinese state-controlled banks. Session 02 Instructor Telephone Yuyu Chen 62757902 photo Email firstname.lastname@example.org Research Area Seminar Topic Assessment Cases Description Growth, Labor market Regional Growth and inequality To describe the features of regional growth pattern during the transition period in China. Bring Chinese regional data with growth theory. Examine the roles played by the imbalance of regional growth in the increasing income inequality. The seminar also tries to give a big picture on Chinese labor market and its institutional features. Session 04 Instructor Telephone Guohua Jiang 6275-7930 photo Email email@example.com Research Area Seminar Topic Assessment Cases Accounting and Capital Market China’s Stock Market Description and Schedule This lecture introduces the development of China’s stock market in the last ten-plus years, with global implications on investor protection, corporate governance and regulation. Session 05 Instructor Telephone Yi Zhang 62757895 photo Email firstname.lastname@example.org Research Area Seminar Topic Assessment Cases Corporate finance, corporate governance, disclosure, financial markets Corporate governance in China Description and Schedule This class discusses issues related to the corporate governance in China. The discussions include the institution environment of Chinese corporate governance structure, corporate governance and competitiveness, corporate financial policy, accounting disclosure, stock markets, and legal enforcement, etc.. Session 06 Instructor Telephone Dongning Yang 62756278 Email email@example.com Research Area Seminar Topic Assessment Cases Corporate environmental management, Environmental economics and policy Environmental and social sustainability Class participation + Reaction paper Beijing Cement Company Description and Schedule Uses class and extracurricular activities to teach the basic environmental and natural resources profiles of sustainability in China. Investigates through a natural environmental perspective how sustainable development issues affect business strategy and operation. Discusses individual and institutional efforts through empirical analysis. Through case studies and current events, explores such issues as eco-degradation, environmental protection industry, corporate social responsibility and organizational greening. Prerequisite(s): none Session 07 Instructor Telephone Dean Xu 6275-5261 Email firstname.lastname@example.org Research Area Seminar Topic Assessment Cases Multinational firm strategy, strategies in transition economies, corporate governance, product and international diversification Overcoming the liability of foreignness – multinational firm strategy in China Group case report N/A Description and Schedule Multinational firms in China enjoy various advantages over local firms as well as incur extra costs compared to their Chinese counterparts. In this session, we look at the competitive dynamics of the China market from a western perspective, and discuss strategies that multinational firms may employ to enter China and compete in the local market. Students are advised to read the following articles before coming to class. Supplement Readings: Vanhonacker, Wilfried. 1997. Entering China: An unconventional approach. Harvard Business Review, March-April. Prahalad, C. K., and Kenneth Lieberthal. 1998. The end of corporate imperialism. Harvard Business Review. Reprinted in August, 2003. Khanna, Tarun, and Krishna Palepu. 1997. Why focused strategy may be wrong for emerging markets. Harvard Business Review, July-August. Session 08 Instructor Telephone Hui Wang 62753645 photo Email email@example.com Organizational behavior and human resource management, particularly Research Area on leadership behavior, organizational culture, and performance appraisal Seminar Topic Leadership behavior in Chinese organizations Description and Schedule Understanding the nature of leadership and leadership behaviors in Chinese organizations, especially under the transition economic situation. Students are encouraged to discuss the topic from the perspective of traditional Chinese culture and management practices. Reading list 1) Tsui, A.S., Wang, H., Xin, K. R., Zhang, L, & Fu, P. P. 2004 Let a Thousand Flowers Bloom: Variation of Leadership Styles among Chinese CEOs. Organizatinal Dynamics, 33(1): 5-20. 2) Yukl, G. 2002. Introduction: The nature of leadership. In “Leadership in Organizations”, 5th Edition Chapter 1. Tsinghua University Press Session 09 Instructor Telephone Li-An Zhou 62750431 photo Email firstname.lastname@example.org Research Area Seminar Topic Assessment Cases Political Economy, Chinese Economy, Comparative Economics Political Economy in China’s Transition Description and Schedule The lecture will discuss certain important aspects of Chinese political economy in transition with special reference to the political incentives of Chinese local officials and their consequences on regional economic cooperation and development. In particular, we will cover the following topics: 1) The Chinese political system and its change in economic transition: The Background 2) The M-form structure of Chinese economy 3) Federalism, Chinese style 4) The political tournaments among Chinese local officials: Theory and Evidence 5) The economic consequences of political incentives of local officials Session 10 Instructor Telephone Jianjun Zhang 62753707 photo Email email@example.com Research Area Seminar Topic Assessment Cases Organizational design and development, Family business Family Business in China Hope Group, Fangtai, Chuangwei, etc. Description and Schedule 1. Family business in over-seas Chinese community 2. (Re)emergence of family business in mainland China in the last two decades 3. Advantages and disadvantages associated with Chinese family business 4. Forces and constraints of professionalization of family business 5. The possible future of Chinese family business Will use some mini-cases to illustrate. Requirements: Readings: 1. Redding, 1990. The Spirit of Chinese Capitalism. Chapter 7. 2. Kao, 1993. “The Worldwide Web of Chinese Business”, Harvard Business Review. Class participation and Discussion: Tell us something about family business in your own country and compare them with Chinese family business.