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W4: International Management ongoing & increasing globalisation,…
W4: International Management
ongoing & increasing globalisation, blurring of international borders, 'diversify or die', global expansion for competitiveness & survival
Western Management
Limited heirarchy
Individualist
Early adopters & proponents of capitalism
Short-termism
Merit based
Shareholders = primary stakeholder
Eastern Management
Collectivist
Reluctant followers of capitalism
Long-termism
Steep heirarchy
Seniority-based
Multiple equally important stakeholders
Stan Shih is the main theorist behind Eastern Management
Management in Asia
Cultural
Confuscianism (loyalty, reciprocal obligations & honesty)
Emphasis on education
Value hierarchy/seniority
Relationships important
Savings driven
Economic
Embracing capitalistic pursuits despite limited political freedom
Privatization of previously state controlled entities reflects more western organisational structures.
Political
Tension within east-asia due to shared complex history
Growing political influence in other regions through business expansion (e.g. Africa)
Close relationship b/w political and business leaders
Protection of Intellectual Property
(ownership & enforcement)
Growing Western influence - due to exposure to Western contemporary education
Why focus on Asia?
60% of world population (4.4 billion people)
40% of global economy
1/3 of total global FDI inflows (more than 1/2 trillion USD)
Rising middle class - predicted to double by 2030 (over 3 billion)
Region's total GHG emissions have grown faster than the global average over the past decade = environmental concern
PRC & India = two most populous & largest transition economies in the world
Competitive hegemons to US = PRC
Tiger economies = Twaiwan Singapore, HK, SK
Global brands = Samsung, Toyota, Honda, Hyundai, HSBC, Acer, Tata, Lenovo, Alibaba
Rapidly expanding skilled labour force
Ambicultural MGMT
(Chen, M, Miller, D, 2010)
From 'West leads East' to 'West meets East'
Chinese practices embraced
Long-termism
Grandiosity avoided in favour of parsimony and incremental moves where failures can be tolerated w/o lasting cost to firm
Errors = learnings, but never scope for catastrophic mistakes
Patience and stewardship = essential to developing brand, quality and strong relationships
Harmony & Collectivism
Pride in community & reputation (brand; personal & organisational)
Collective benefit-sharing community
Seniority & Mentorship
Respect age & seniority = way to honour individuals for past contributions, secure loyalty of employees valued for staying in firm, make best use of human resources.
Ideal Ambicultural Manager
Equal appreciation for teamwork and individual stars
Understanding that organisations need to focus on diverse needs
Dedication to global awareness in everyday activities
An openness in different and unique ways of thinking
Ability to balance social good and self-interest
Chinese practice avoided
Centralised Authoritarianism
decentralised MGMT = employees at all levels trusted to do the right thing, empowered to do so
Mistrust
Infusing org. w/ honest and trust = everyone in org. motivated to act for benefit of community
Trust can be lost, or earnt
Secrecy
Broad knowledge sharing = key to human & capability development
Strong exchange of information (mentoring & experience sharing) = good ideas having great, beneficial impacts
Ethnocentrism
Limits the scope of local, regional and international outreach