1. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 19–1 CHAPTER 19 THE REGIONAL CONTEXT

2. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 19–2 LECTURE OUTLINE The regional context Focus on: Japan, China, South Korea, New Zealand, Singapore, Thailand, Malaysia, Indonesia Australia’s position in SE Asia

3. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 19–3 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

4. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 19–4 FOCUS ON JAPAN 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

5. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 19–5 FOCUS ON JAPAN Issues confronting Japanese managers – Economic slow-downs in the 1980s and 1990s – Business moving offshore for lower labour costs – Ageing population – Political strife – Rising unemployment – Slow progress towards a fully international, open economy Relationship with Australia – Largest export market - Australia’s largest trading partner – Mainly purchaser of raw materials – Governments work at maintaining strong ties – Australia supports freer international trade

6. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 19–6 FOCUS ON CHINA Issues confronting Chinese managers – Economic reform – Labour shortage – Role of leadership – Overpopulation Directions for the future – Legal environment – Human resources – Corruption – Bureaucracy Relationship with Australia

7. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 19–7 FOCUS ON CHINA Issues for Chinese managers Economic reform Role of leadership Overpopulation Labour shortage Directions for the future Legal environment Human resources Corruption Bureaucracy

8. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 19–8 FOCUS ON SOUTH KOREA High economic growth Modernisation of economy Tensions with North Korea Relationship with Australia Fourth-largest trading partner A preferred education destination

9. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 19–9 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

10. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 19–10 FOCUS ON NEW ZEALAND Economic reforms Labour supply Issues confronting New Zealand managers Growth and influence of Maori in the country’s economy Relationship with Asia Relationship with Australia

11. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 19–11 FOCUS ON SINGAPORE Issues confronting Singapore managers: Economic restructuring Tight labour market Human resource development and management Productivity and quality of work-life

12. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 19–12 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

13. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 19–13 FOCUS ON SINGAPORE Directions for the future – Singapore as global hub – Emphasise value-added manufacturing – Improve quality of life – Enhance creativity, creativity and knowledge Relationship with Australia

14. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 19–14 FOCUS ON THAILAND Issues confronting Thai managers – Incompatible business law – Demand for infrastructure – Under-educated and low skilled workforce – Rising labour costs Relationship with Australia

15. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 19–15 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 Rising cost of labour

16. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 19–16 FOCUS ON MALAYSIA Issues confronting Malaysian managers – Multiculturalism – Decision-making practices Directions for the future – Industrialise – Upgrade – Conserve natural resources Relationship with Australia

17. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 19–17 FOCUS ON MALAYSIA Management issues Multiculturalism Program transfer Indirect approach Maintaining face Future directions Industrialise Upgrade technology Conserve natural resources

18. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 19–18 FOCUS ON INDONESIA Issues confronting Indonesian managers – Relevance of management – Cultural diversity – Traditional, hierarchical, honour-oriented – Relationship oriented Directions for the future – Relieve poverty – Build infrastructure – Develop new industries Relationship with Australia

19. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 19–19 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 Justice

20. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 19–20 FOCUS ON INDONESIA Diverse range of cultural settings Culture: modern vs traditional Society hierarchical and honour-oriented People avoid conflict Harmony is important Improve infrastructure Improve technology Improve training Improve industrial relations ISSUES FOR MANAGERS FUTURE DIRECTIONS

21. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 19–21 AUSTRALIA’S POSITION IN SOUTH-EAST ASIA Close historic and cultural ties to Western countries More regional viewpoint in 1980s, 1990s Not yet full member of ASEAN 60% of exports go to Asia Influence of more multi-cultural population

22. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 19–22 AUSTRALIA’S POSITION IN SE ASIA Australia’s position in South-East Asia Geographically Culturally Economically Politically

23. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 19–23 LECTURE SUMMARY The regional context Religious diversity, half world’s population, strong cultures Focus on the major regional influences and presences: Japan, China, South Korea, New Zealand, Singapore, Thailand, Malaysia, Indonesia Issues for managers, relations with Australia Australia’s position within South-East Asia