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Management in Asia (Why is understanding management in Asia important?…
Management in Asia
Why is understanding management in Asia important?
Home to 4.4 billion people (approx. 60% of world population)
Accounts for 1/3 of total global FDI inflows: > 1/2 trillion USD
§ Accounts for 40 % of the global economy
Rising middle class - size of the middle class in Asia
predicted to double by 2030: > three billion
Over the next four years, even with slightly declining
momentum, stands to deliver nearly 2/3 of global growth
§ Over the past decade, the region’s total greenhouse gas
(GHG) emissions grew faster than the global average
Cutural Factors impact on East-Asian Management
Confucianism
High morals, ethical conduct, and loyalty
to others are stressed
Three key teachings - loyalty, reciprocal obligations, and honesty - may lower cost of doing business
Emphasis on education
§ Value hierarchy/seniority
Relationships important – are all?
Savings driven
The Political Factors impact on East-Asian Management
Tension within East-Asia due to shared
complex history
§ Close relationship between political and
business leaders, often men
Growing political influence in other regions
through business expansion (e.g. Africa)
Protection of IP – ownership & enforcement
§ Due to significant exposure to western education (i.e. US, UK, Aus) future political & business leaders may embrace more ‘western’ values
Economic Factors impact on East-Asian management
Rising powerhouse of global
economy
Embracing capitalistic pursuits
despite limited political freedom
Privatisation of previously state controlled
entities
Growing income gaps within
countries
Western vs Eastern Management
West
– Individualist
– Early adopters & proponents of capitalism
– Short-termism
– Limited hierarchy
– Merit-based
– Shareholders – primary stakeholder
East
Collectivist
– Reluctant followers of capitalism
– Long-termism
– Steep hierarchy
– Seniority-based
– Multiple equally important stakeholders
https://youtu.be/bVyAPwjkjH4
East-Asian Management Systems
Characteristics
Support for long-term planning and risk
minimisation through diversification
Large private sector organisations are major employers critical to each country’s national econom
Closely linked with ruling political elite
Closely linked with ruling political elite
Social & business relationships critical for success
Saving face
Historically, significant state intervention (e.g.
price controls)
Under representation of women in labour force
Growing focus on IP protection
https://youtu.be/OM2YFBU479M
South & South-East Asia – The Engine
Home To:
Rapidly expanding skilled labour force –
both within as well as outside the region
Tiger economies of Taiwan, S’pore, Hong
Kong & South Korea
Former (Japan) & current (PRC) greatest
competitor to US
Tiger economies of Taiwan, S’pore, Hong
Kong & South Korea
PRC & Indian, the two most populous and
largest transition economies in the world
https://youtu.be/WsQ7ysVt-0A
https://youtu.be/LapjXPhcCKs
https://youtu.be/VIWdoNABcTY