Case Presentation
Considering the facts about the employees and the cultural setting (including Li) Charles should have first considered about getting a "guanxi" going with his employees, winning their trust and becoming part of the group. This would have opened up the communication with his employees. The reassignment of the work would have then been more receptive rather than the suspicion and resentment that Tang created as a new manager. Li needs to be assured that although there have been changes in the management; there is no reason for suspicion as he is a capable and talented employee.
In Li's view he had lost "face" and was demotivated and according to his character it was quiet natural for him to react aggressively. Tang should have given Li a more challenging project and bargained with him to stop work on the current project citing his talent and commitment for giving him a better project than the one that he is currently working on. Here Tang could also show Li his future prospects within Intel if he concentrates on his key role rather than the project which is not aligned with the company requirements anymore. Alternatively Tang should have given him a definite time frame to complete the project or stop work on it immediately and concentrate on his main duties.
Another aspect that needs consideration is the interpersonal styles. According to what we learn about Li, he is high on both assertiveness (he "tells" and doesn't "ask") and responsiveness (he shows emotions and doesn't hide them).
This presents us with two situations: will Li continue the project and align it with company policy which will save his "face" or will he stop completely and concentrate on his key role. In this situation he is more likely to continue and complete the project as it is a matter of saving his "face" and also to demonstrate his ability. Conversely if he stops the project, being an expressive character he will not be at peace with himself and will leave the company being a loss to Tang as Li is a talented and dedicated employee.
Recommendations