CHAPTER 19 THE REGIONAL CONTEXT © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Lecture outline • • • • • • • • 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 © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 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 © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 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 © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 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 © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Focus on New Zealand Economic reforms Customers & clients Competitors Suppliers Labour supply © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 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 © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Focus on Indonesia The following 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 © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 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 © 2003 McGraw-Hill Australia Pty Ltd PowerPoint Focus on Malaysia Multiculturalism Maintaining face Management issues Indirect approach Industrialise Future directions Program transfer Upgrade technology Conserve natural resources © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 10 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 © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 11 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 © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 12 Australia’s position in SE Asia Country Relationship with Australia Singapore 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 © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 13 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 © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 14 Australia’s position in SE Asia Culturally Economically Australia’s position in South-East Asia Politically Geographically © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 15 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 © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 16 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 © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 17 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 © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 18 [...]... 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 © 2003 McGraw-Hill Australia Pty Ltd PowerPoint... 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 © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 13 Australia’s position in SE Asia Country Relationship with Australia Malaysia Business relationship broadened... 2003 McGraw-Hill Australia Pty Ltd PowerPoint 12 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... 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 © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 17 Lecture summary • Focus on Thailand... PowerPoint 14 Australia’s position in SE Asia Culturally Economically Australia’s position in South-East Asia Politically Geographically © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 15 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 –... • 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 © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 18 ... CONFRONTING THAI THAI MANAGERS MANAGERS Demand for infrastructure Under-educated workforce Cheap labour base © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 11 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... 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 © 2003 McGraw-Hill Australia Pty Ltd PowerPoint 16 Lecture summary • Focus on Indonesia – Issues confronting Indonesian managers—cultural.. .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