HRM03worldHRM(E)

LectureThreeManagementAroundTheWorldandTheDifferencesinPolitical,Economic,andLegalSystemsAsia,Africa,America,Europe,andSouthPacificRegionsProfShumingZhao2DiscussionTopic:1.Whatarethedifferencesinmanagementaroundtheworld?2.Whataredifferencesinpolitical,economic,andlegalsystemsbetweencountries?3.Whatarethepoliticalrisks?4.Whycompaniesusecompetitiveadvantageforinternationalbusiness?ProfShumingZhao3I.ManagementAroundtheWorld1.AsianCountriesandRegionsJapanThreeparticularManagementpractices•Lifetimeemployment,•Promotionandcompensationareprimarilybasedonseniority,and•Company-basedunions(asopposedtonational,craft,orindustry-wideunions)ProfShumingZhao4JapanJapaneseManagementPractices•GroupConsensus•Long-termplanning•QualityOrientation•OrganizationallearningJapanesemanagementpracticestendtofocusonprocessimprovementandlong-termgoalsratherthanonshort-termnumbersandresults.ProfShumingZhao5JapanCulturalFactorsImpactingManagement•Geographyanddemographics:3000islands,126millionpeople,99.4%JapanesewithasmallnumberofKoreansandChinese•Language:Japanese(ThewrittenlanguageinitiallyborrowedfromtheChinese),99%literate•Religion:Shinto,emphasisonhonor,courage,politeness,andreserve,hasbeenimportantinfluenceinthedevelopmentofJapanesesocialvalues.ProfShumingZhao6JapanCulturalFactorsImpactingManagementReligion:•Buddhism,withemphasisonharmony,flexibility,adaptation,andcompromise•Confucianism,withitsvirtuesoffrugality,hardwork,andrespectforelders•Zenphilosophy,withsimplicityandausterityProfShumingZhao7JapanCulturalFactorsImpactingManagementFamily:•Byextensionthecompany,community,andnation,isthefoundationofJapanesesociety.TheJapaneseareboundtogetherbyastrongsenseofobligationtoandresponsibilityfor,thegroup.•Historically,Japaneseidentity,theirhonor,andinsomewaystheirsurvivalhasdependeduponmembershipin,andprotectionby,thegroupthatdefinethem.ProfShumingZhao8JapanCulturalFactorsImpactingManagement•Thewesternnotionsofindependence,self-determination,andindividualismarealienandlargelymisunderstoodbytheJapanese,whohavehistoricallyseenfamily,class,village,andethnicidentityasbothdeterminingtheirfateinlifeandassuringtheirlivelihood.•Inreturnforlifelongloyaltyandobediencetothegroup,theindividualexpectsandreceivesprotection.ProfShumingZhao9CulturalFactorsImpactingManagement•PhilosophyofEgalitarianism.•Groupism.•Relationships.•Leadership.•Long-termOrientation•GeneralistOrientationinEducation•GovernmentPolicy•HierarchywithinaDualEconomy•LifetimeEmploymentSystem.•InternalLaborMarketKarenLinderberg.TheIntricaciesofTrainingandDevelopmentinJapan,HumanResourceDevelopmentQuarterly(Summer1991),pp104-114.ProfShumingZhao10CulturalFactorsImpactingManagemente.g.Training:•Broadscopeoftraining•Company-specifictraining•On-the-jobtraining•Employeeastrainer•Long-termdevelopment•Self-developmentandvolunteerism•Performance-basedtraining•Humanrelations-basedtrainingProfShumingZhao11P.R.ChinaThreeparticularManagementpractices(1949to1980s):TheThreeIrons•Ironricebowl(permanentjob,employeescouldnotbefiredforanyreason,sotherewasnopressuretoperform)•Ironchair(secureposition,onlypromotion,nodemotion)•Ironcompensation(firmsalwaysprovidepayandbenefitsfrombirthtograve)ProfShumingZhao12P.R.ChinaEconomicReforminChina(1978-present)•Responsibilitysystemintheruralareas•Contractsysteminthecities•SocialistMarketeconomicsystemsince1992(Reformonthestate-ownenterprises,breakthethreeirons,hirepeopledirectlyfromthelabormarket,tiecompensationtoindividualandorganizationalperformance,layoffunproductiveemployees,paymuchattentiontotraininganddevelopment,etc.)ProfShumingZhao13P.R.ChinaCulturalFactorsImpactingManagement•GeographyandDemographics:9.60millionsquarekilometers,1.3billionpeople(94%HanChinese,6%nearly60otherethnicgroups.•Language:Mandarin,singlewritingsystem,butlotsofdialect•ReligionPhilosophicalThoughts:Confucianism,Buddhism,DaoismProfShumingZhao14CulturalFactorsImpactingManagementTheimportanceofCorrectBehavior:•Loyaltytofamily,community,ethnicgroupandnation•Respecttheelderlyandcarefortheyoung(differencebetweenEastandWest—old老，王老、老王、小王)•Guangxi(relations:personalnotorganizational)•Concernaboutface(losingface)Peopletendtobereservedinpublic,discreetintheirsocialrelations,andreluctanttomakepronouncementsaboutothersProfShumingZhao15CulturalFactorsImpactingManagement:•ChineseculturedominatestheFarEast.ItisbasedonConfucianphilosophy,whichdictatesrulesofbehavior.•Thewelfareofthecollectivegroupisparamount.Peopleworktobenefitthegrouptoupholditshonor.•Chinesepeoplepaymuchattentiontoeducation.ProfShumingZhao16TheFourDragons•SouthKorea•HongKong•Singapore•TaiwanProfShumingZhao17TheFourTigers•Malaysia•Thailand•Philippines•IndonesiaProfShumingZhao182.Africa•53independentcountries,representingabout2,000differentethno-culturalcommunities,nearly800millionpeople•Thecountriesreflectgreatdiversityintermsofpopulationsize,levelandsophisticationofeconomicdevelopment,resourceendowment,andpoliticalstructureandideologicalorientations.•Thebroadhistoric-culturalandpolitical-economicsimilaritiesinsub-SaharanAfrica.ProfS