Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 18–1 CHAPTER 18 THE REGIONAL CONTEXT

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 18–2 LECTURE OUTLINE Focus on Singapore Focus on New Zealand Focus on Indonesia Focus on Malaysia Focus on Thailand Japan’s impact on the region Focus on China Australia’s position in SE Asia

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 18–3 THE REGIONAL CONTEXT ‘Over the past 10 years many multinational companies invested heavily in Asian countries and transferred technologies there only to discover it is harder to transfer management techniques’. East-Asian Pacific region Major religions are represented Politically known as ‘democratic ’ Half of the world’s population Strong cultural roots Cultural ties influence management

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 18–4 FOCUS ON SINGAPORE Issues confronting Singapore managers: Economic restructuring Tight labour market Human resource development & management Productivity & quality of work-life

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 18–5 FOCUS ON SINGAPORE Economic restructuring Human resource development & management Human resource development & management Tight labour market Tight labour market Productivity and quality of work-life

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 18–6 FOCUS ON SINGAPORE Directions for the future – Singapore as global hub – Emphasise value-added manufacturing – Improve quality of life – Enhance creativity, creativity & knowledge Relationship with Australia

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 18–7 FOCUS ON SINGAPORE Four strategic thrusts (Birch 1993) Develop a global hub Boost economic engine Improve quality of life Enhance individual potential Singapore’s vision: to be ‘the intelligent island’

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 18–8 FOCUS ON NEW ZEALAND Economic reforms Labour supply Issues confronting New Zealand managers Growth & influence of Maori in economics Relationship with Asia Relationship with Australia

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 18–9 FOCUS ON NEW ZEALAND Customers & clients Competitors Suppliers Labour supply Economic reforms

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 18–10 FOCUS ON NEW ZEALAND ISSUES CONFRONTING NZ MANAGERS ISSUES CONFRONTING NZ MANAGERS Labour relations Workplace reform Social problems RELATIONSHIP WITH ASIA RELATIONSHIP WITH ASIA Supported by government Top 10 export customers Significant imports Significant investment Skill levels

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 18–11 FOCUS ON INDONESIA Issues confronting Indonesian managers – Cultural diversity – Traditional, hierarchical, honour-oriented – Relationship oriented Directions for the future – Relieve poverty – Build infrastructure – Develop new industries Relationship with Australia

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 18–12 FOCUS ON INDONESIA The following 5 principles are built into every organisation and reflected in the principles and practices of management in every aspect of Indonesian society. Belief in God Humanism Nationalism Sovereignty

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 18–13 FOCUS ON INDONESIA Diverse range of cultural settings Culture: modern vs traditional Society hierarchical & honour-oriented People avoid conflict Harmony is important Improve infrastructure Improve technology Improve training Improve industrial relations ISSUES FOR MANAGERS FUTURE DIRECTIONS

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 18–14 FOCUS ON MALAYSIA Issues confronting Malaysian managers – Multiculturalism – Decision-making practices Directions for the future – Industrialise – Upgrade – Conserve natural resources Relationship with Australia

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 18–15 FOCUS ON MALAYSIA Management issues Multiculturalism Program transfer Indirect approach Maintaining face Future directions Industrialise Upgrade technology Conserve natural resources

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 18–16 FOCUS ON THAILAND Issues confronting Thai managers – Incompatible business law – Demand for infrastructure – Under-educated workforce – Cheap labour base Relationship with Australia

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 18–17 FOCUS ON THAILAND CHARACTERISTICS 14% Chinese 95% Buddhist Richly endowed with natural resources Central point in Asia CHARACTERISTICS 14% Chinese 95% Buddhist Richly endowed with natural resources Central point in Asia SOCIAL TENDENCIES Love freedom Avoid conflict Keep relationships peaceful SOCIAL TENDENCIES Love freedom Avoid conflict Keep relationships peaceful ISSUES CONFRONTING THAI MANAGERS ISSUES CONFRONTING THAI MANAGERS Incompatible business law Demand for infrastructure Under-educated workforce Cheap labour base

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 18–18 JAPAN’S IMPACT ON REGION Export-oriented country Export-oriented country Undergoing major economic restructure Undergoing major economic restructure Source of new management practices Source of new management practices Second largest economy in the world Second largest economy in the world

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 18–19 FOCUS ON CHINA Issues confronting Chinese managers – Economic reform – Role of leadership – Over-population – Quality of workforce Directions for the future – Legal environment – Human resources – Corruption – Bureaucracy Relationship with Australia

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 18–20 FOCUS ON CHINA Issues for Chinese managers Economic reform Role of leadership Over-population Quality of workforce Directions for the future Legal environment Human resources Corruption Bureaucracy

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 18–21 AUSTRALIA’S POSITION IN SE ASIA

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 18–22 AUSTRALIA’S POSITION IN SE ASIA

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 18–23 AUSTRALIA’S POSITION IN SE ASIA Australia’s position in South-East Asia Geographically Culturally Economically Politically

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 18–24 LECTURE SUMMARY The regional context – Religious diversity, half world’s population, strong cultures Focus on Singapore – Issues confronting Singaporean managers—restructuring, QOL, HRD, labour market issues. – Directions for the future—global hub, economic performance, QOL Focus on New Zealand – Economic reforms—clients, competitors, labour supply – Issues confronting New Zealand managers—skill levels, IR, social change – Relationship with Asia—government support, strong trade relationship

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 18–25 LECTURE SUMMARY Focus on Indonesia – Issues confronting Indonesian managers—cultural diversity, conflict avoidance – Directions for the future—improve infrastructure, technology, training, IR Focus on Malaysia – Issues confronting Malaysian managers: maintaining face, multiculturalism, program transfer, indirect approach – Directions for the future—industrialise, natural resource protection

Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 18–26 LECTURE SUMMARY Focus on Thailand Issues confronting Thai managers—business law, infrastructure, work force skills, cheap labour base Japan’s impact on the region Export orientation, second largest economy, economic restructure, source management practices Focus on China Australia's relationship with Asian countries Australia’s position in South-East Asia