© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 1 CHAPTER 19 THE REGIONAL CONTEXT

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 2 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 Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 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

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 4 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

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 5 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’

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 6 Focus on New Zealand Customers & clients Competitors Suppliers Labour supply Economic reforms

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 7 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

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 8 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

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 9 Focus on Indonesia Diverse range of cultural settings Culture: modern v traditional Society -hierarchical & honor oriented. People avoid conflict Harmony is important Improve infrastructure Improve technology Improve training Improve industrial relations ISSUES FOR MANAGERS FUTURE DIRECTIONS

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 10 Focus on Malaysia Management issues Multiculturalism Program transfer Indirect approach Maintaining face Future directions Industrialise Upgrade technology Conserve natural resources

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 11 Focus on Thailand CHARACTERISTICS 14% Chinese 95% Buddhist Richly endowed with natural resource Central point in Asia CHARACTERISTICS 14% Chinese 95% Buddhist Richly endowed with natural resource 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

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 12 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

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 13 Australia’s position in SE Asia

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 14 Australia’s position in SE Asia

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 15 Australia’s position in SE Asia Australia’s position in South-East Asia Geographically Culturally Economically Politically

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 16 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 Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 17 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 Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury. 18 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