Casino Enterprise Management

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 both 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 I have noticed is that they often think they know a lot about the Chinese culture and its people. At times, they act like they are experts. But in most circumstances, they do not know much at all. Many foreign casino executives misinterpret Chinese values, falling into the trap of rating Chinese culture in terms of “good” or “bad” rather than simply 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, understanding Chinese culture is important, as more than 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 employees who may have never worked under a Western or Western-style manager. Effective management depends on understanding your market (Chinese customers) and your internal environment (Chinese employees). Hence, it is extremely important for foreign casino executives in Macau to be educated on Chinese culture.

Fundamental to understanding the Chinese is recognizing that Confucianism is widely accepted by the Chinese society and forms a large part of its culture. Confucius’ thoughts and teachings on an individual’s roles and responsibilities to maintain harmony and order in society have  significantly influenced Chinese people for many centuries. In ancient dynasties, Confucius’ philosophy was adopted to help manage the kingdom and its subjects. The teachings of Confucius are comprised of four key principles: the hierarchical relationship among people; the family as a basic unit; Jen, which is roughly translated as “benevolence”; and an emphasis on education.

According to Confucianism, an individual is a social creature. Social order and stability depend on properly differentiated role relationships between particular individuals. There are five basic relationships, called Wu-Lun, or Five Codes of Ethics: ruler-subject, father-son, husband-wife, older brother-younger brother, and between friends. These 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 , which is literally translated as “relationships” but also has connotations of social capital and cooperation. Because of the influence of Wu-Lun, Chinese people are used to judging their position in a certain circumstance and then taking corresponding responsibilities for their actions, which is typical in a high-context society. They often view themselves as interdependent with the surrounding social context. The self in relation to others 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 Confucian values.

Below are seven things you need to know and seven things that you need to do to have successful interactions and relationships in Macau.

Seven Things You Need to Know
1. Silence is almost a virtue…although this may not be apparent in some rowdy Chinese gamblers from the Guangdong province. However, there is a saying: The full pot of water makes no sound, the half-empty pot of water is noisy; or Empty vessels make the greatest sound. Conversely: He who knows most speaks least; or Still waters run deep. The Chinese believe that if they are good at certain skills, they do not necessarily need to show it off. Very often, the Chinese will verbally belittle themselves in front of foreigners or outsiders, only to reveal their talents later on. This is a show of humility, which is a virtue according to Confucius.

There is another saying: An arrogant army will lose the battle. The wise master is a quiet, humble master who does not reveal his skills until there is a need to do so. The sudden revelation of great skill is bound to impress all and makes the master proud of himself. Therefore, Chinese employees may seem quiet to a new manager during discussion. Sometimes they are simply reserved toward outsiders, and more often than not, they are just playing dumb or hiding their true talents. When you are able to break into their in-groups, you will notice that your Chinese employees (and even customers) can be very different from what they are like in the casino—they can be chatty and witty.

2. The value of reciprocity. The Chinese remember favors and, of course, disfavors. If you serve your Chinese customers well beyond what is needed, they will remember it. If you treat them badly just once, they will remember it for life. At the same time, any requests you make to your employees or customers should be made carefully, as the Chinese do their mental sum well. They will remember what you owe them as much as what they owe you.

3. Authority is always respected. There is a high respect for authority (i.e., high power distance), as has been taught in schools over the centuries. This is an important value of Confucianism that has helped maintain social order since ancient times. Students treat teachers and professors like someone who knows all and must not be offended: He who is my teacher for a day is my father for a lifetime. Authority in the workplace is readily accepted even if there are disagreements. If a dealer does not like his pit manager’s ideas, he will not disagree. He would rather try other ways to let the pit manager knows that the ideas are bad. Because of these values, the Chinese are less confrontational, especially to their superiors. If you are a junior gaming analyst, then during department meetings, 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 senior analysts. Many Chinese aspire to become their own boss so they can be at the top of the corporate hierarchy.

4. Time tries all. The Chinese are a rather collectivistic group of people that clearly defines who is included in their in-group (people they trust) and who is excluded in their out-group (people they don’t trust). If you are new, the 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; or Time tries all. The Chinese use time to test the true character of an acquaintance.

5. Context is everything. The Chinese practice a high-context communication style that is indirect and dependent on circumstances. When unhappy, the Chinese do not always express themselves verbally. They are more likely to show what is perceived as measured consideration, and then return their displeasure through other means. At the same time, Chinese men typically think of themselves as tough, cautious, wise and profound—and they want to be seen and treated accordingly. They may do anything (e.g., lying) to get out of a situation that they do not feel comfortable with. Unfortunately, some foreigners misinterpret such actions as deceptive when they find out the true thoughts of their Chinese counterparts. In addition, creative verbal expressions by outsiders are often frowned upon. Because of the highly contextual nature of communication, unanticipated expressions by outsiders can cause misunderstanding and appear rude to the Chinese.

6. Relationships are long lasting. Some Chinese believe that relationships are tied to fate and destiny. If you form a good relationship, it will tie you and your Chinese counterparts for life. This is a very important part of development. It justifies all things you may have to do to gain group trust and loyalty, since you know that once developed, the  can last forever (even in the next life).

7. Feng shui is a science. The Chinese have different forms of superstitions and taboos. These beliefs have become intertwined with Chinese society and some have become Chinese values. Feng shui, for example, is now looked upon as a form of science, and the practice of simple forms of feng shui have been widely adopted (e.g., selecting the right days to gamble).

Seven Things You Need to Do
1. Remember the seven things you need to know.

2. Be a good listener. Show interest even if you are not interested. Do not interrupt when a Chinese customer speaks. Remember: The Chinese are listening beings. Also, there is a saying: Use your heart to listen. To the Chinese, good communication uses the heart, not the mouth.

3. Keep your promises. You must keep your promises to your Chinese customers and employees. There is a famous saying:  When something has been said, even a four-horse wagon cannot overtake it; or A real man never goes back on his word. A person must honor his words. The Chinese like people to keep their promises, even though they themselves may not appear to be doing so. Chinese history books tell of ancient Chinese heroes who kept their promises and achieved great things.

4. Develop. This is necessary to survival in 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.

5. Show your loyalty. If you do this to break into in-groups, you will be rewarded for it. More often than not, foreigners who have just arrived in Macau are eager to show off their talent, but this is a society that values group loyalty more than individual abilities. Loyalty comes first, individual abilities second.

6. Treat employees with respect and restraint. Be flexible. Give face and do not shame your employees. This is important to the Chinese. A famous Chinese proverb highlights the importance of saving face: A person needs a face, a tree needs bark; or A person needs a clean reputation to survive. Make the other guy look 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.

7. Embrace feng shui. Even if you don’t believe in feng shui, act like you do. The Chinese are hooked into this type of science, gamblers and employees alike. Buy a feng shui book and read up on the basics. Then learn more about common Chinese superstitious beliefs and behaviors.

Desmond Lam is a Visiting Senior Research Fellow at the School of Marketing/Ehrenberg-Bass Institute for Marketing Science, University of South Australia. He was formerly an Assistant Professor of Marketing at the University of Macau. He can be reached at desmondL@hotmail.com.