Lecture management a pacific rim focus chapter 19 the regional context

CHAPTER 19
THE REGIONAL CONTEXT

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Lecture outline
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The regional context
Focus on Singapore
Focus on New Zealand
Focus on Indonesia
Focus on Malaysia
Focus on Thailand
Japan’s impact on region
Australia’s position in SE Asia

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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’.
Major religions are represented

East-Asian
Pacific
Region

Politically known as ‘democratic’
Half of the world’s population
Strong cultural roots
Cultural ties influence management

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Focus on Singapore
Economic
Economic
Restructuring
Restructuring

Productivity
Productivity and

and
quality
quality of
of work
work life
life

Tight
Tight
labour
labour market
market

Human
Human resource
resource
development
development
&
&management
management

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Focus on Singapore
Singapore’s Vision: to be ‘the intelligent island’
Develop a global hub

Boost
economic
engine

Four
Strategic thrusts
(Birch 1993)

Enhance
individual
potential

Improve quality of life
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Focus on New Zealand

Economic reforms

Customers &
clients
Competitors
Suppliers
Labour supply

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Focus on New Zealand
ISSUES
ISSUES
CONFRONTING
CONFRONTING
NZ
NZ
MANAGERS
MANAGERS

Skill Levels
Labour Relations
Workplace reform
Social Problems
Supported by Government

RELATIONSHIP
RELATIONSHIP
WITH
WITH
ASIA
ASIA

Top 10 Export customers
Significant imports
Significant investment

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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
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Focus on Indonesia
Diverse range
of cultural settings

Improve
infrastructure

Culture:
modern v traditional

ISSUES

FOR
MANAGERS

Society -hierarchical
& honor oriented.
People avoid
conflict
Harmony is
important

Improve
technology

FUTURE
DIRECTIONS

Improve
training
Improve
industrial relations

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Focus on Malaysia
Multiculturalism

Maintaining

face

Management
issues

Indirect
approach

Industrialise

Future
directions

Program transfer
Upgrade
technology

Conserve
natural resources

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Focus on Thailand
CHARACTERISTICS
CHARACTERISTICS
14%
14%Chinese

Chinese
95%
95%Buddhist
Buddhist
Richly
Richlyendowed
endowedwith
with
natural
naturalresource
resource
Central
Centralpoint
pointininAsia
Asia

SOCIAL
SOCIALTENDENCIES
TENDENCIES
Love
Lovefreedom
freedom
Avoid
Avoidconflict
conflict
Keep
Keeprelationships
relationships
peaceful
peaceful

Incompatible business law

ISSUES
ISSUES
CONFRONTING
CONFRONTING
THAI
THAI
MANAGERS
MANAGERS

Demand for infrastructure
Under-educated workforce
Cheap labour base

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Japan’s impact on region
Export
Export oriented
oriented
country
country
Source
Source of
of new
new

management
management
practices
practices

Second
Second largest
largest
economy
economy
in
in the
the world
world
Undergoing
Undergoing major
major
economic
economic
restructure
restructure

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Australia’s position in SE Asia
Country

Relationship with Australia

Singapore

 8 th largest export market (ABS Catalogue

New
Zealand

Indonesia

5422.0)

 Invest heavily in Australian propert y
 Developing strategic alliance
 Becoming competitive w ith Australia
 NZ’ s biggest export market and source of
imports.
 Close cult ural, sporting and economic ties.
 Reduced costs of manufacturing has seen a
number of companies relocate from Australia
to NZ
 Increased interest in Indonesia due to
proximit y and market potential.
 Due to Australia’ s involvement in East Timor
most business interactions have slow ed or
halted.

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Australia’s position in SE Asia
Country

Relationship with Australia

Malaysia

 Business relationship broadened recently
 Moderate trade, less that other Asian nation
 Increased demand for technology transfer
 12th largest export market
 Welcome Australian Investment
 Good potential business exchange in training and
quality control.
 Energy and raw material trade between countries.
 Australia’s largest trading partner
 Important source of tourism revenue.

Thailand

Japan

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Australia’s position in SE Asia
Culturally

Economically

Australia’s position in
South-East Asia

Politically

Geographically

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Lecture summary
• The regional context
– Religious diversity, 1/2 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—govt. support, strong trade

relationship.
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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.
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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, 2nd largest economy, economic
restructure, source management practices.

• Australia's relationship with Asian countries
• Australia’s position in South-East Asia

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