In many respects, the Novo Nordisk Way of Management is well in accord with what many Chinese have been brought up with; the values of Novo Nordisk reflect common sense, reason and a commitment to development that benefits both the individual employee and the company. The fact that the values are practised in everyday management, and discussions about practices are encouraged, creates what many employees call 'a feeling of being part of a family', and loyalty to family is at the core of Chinese traditions.

In other instances, Novo Nordisk's informal management culture collides with the Chinese culture. The challenge for Human Resources in China will therefore be to continue linking Chinese culture with Novo Nordisk's approach and values in the most constructive manner.

Making way for Chinese managers
During the start-up phase, most senior managers in Tianjin have been expatriates from Denmark. The management group now intends to reduce the number of expatriates (by approximately 25% in 1999), and instead develop Chinese managers to take their place. Wang Maoxia is one example.

In November 1998, a group of eight potential managers at the Tianjin factory were selected and taken through a specially designed course, focusing on management concepts, the Novo Nordisk Way of Management and personal readiness to become a manager.

The course will be followed up in 1999 for an expanded group of Chinese managers to teach them a range of skills, such as coaching, selling and negotiation.

Attitudes to training
There is a clear wish from our Chinese employees to improve and broaden their skills. However, some Chinese consider training to be a benefit ­ a reward for hard work, and not necessarily a tool to achieve business goals. By linking the personal development plans to business objectives, the management in China hopes to clarify that development and training of employees is also essential to business performance. Now the time has come to lay the foundation for training and development in a longer perspective.

Remuneration
Traditionally, the state-owned Chinese companies were responsible for the social welfare of their employees. Today, private companies pay for a personnel package on top of the basic salary. Salaries are established by management using an international job classification system and by referring to local trade statistics.

In addition to the basic salary and the personnel package, a performance-based bonus system applies to all employees at Novo Nordisk China. In some cases, among Health Care sales reps, between 50% and 75% of their salary depends on performance. In these cases, sales reps are considered 'franchise managers' with responsibility for profit and loss in their own district.