Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

Management in South East Asia

No description
by

on 27 October 2014

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Management in South East Asia

Management in South East Asia
Vietnam
Malaysia
Singapore
Thailand
Indonesia
Benny - Ton
HISTORY
Chinese Influence
French Colonization
World War II (Japanese Invation)
Vietnam War (North and South Vietnam)
United into one
Avoid European colonization (Neutral territory)
Make an alliance with Japan during World War II
Make alliance with US after World War II
HISTORY
HISTORY
Occupied by Japanese during World War II
Reverted to British control, but self-governed
Merger to Malaysia (1963)
Separate from Malaysia (1965)
'democratic revolution' led by westernized bureaucrats and traditional-oriented military
Constitutional Monarchy
Prime Minister is the head of government
Hereditary monarch is head of state
Unstable, many civil war and demonstration
Multi-Party
POLITIC
Culture Value
Labor Intensive based economy
Pro-Investment
Liberalized economy
Export-led growth as a driven
ECONOMY
Labor surplus
Family relation dependent
Management
Problem
Monarchy -> High Hierarchy
Use cheap uneducated labor
Local firms run by wealthy family (Chinese)
Leadership style: participative, consultative, moving towards democratic
Influenced by strong cultural and religious tradition
Training to improve labor skill
Employee benefit based on profit
Cultural conflict within MNCs
Management Practice
HISTORY
Hindu and Buddhism Kingdom
Islamic Kingdom
Dutch Colonization
Japan Colonization
Dutch Colonization
Independence
HISTORY
Portugese Colonization
Dutch Colonization
British Colonization
Japanese Invasion
Independence (1957)
History
Similarities
Japanese influence
Europe Colonization, except Thailand
Distinctions
British influence in Malaysia and Singapore
Dutch influence in Indonesia
French influence in Vietnam
POLITIC
Single-party socialist republic framework
Communist party
President as the head of state
Prime Minister as the head of government
POLITIC
parliamentary representative democratic republic
President as the head of state
Prime Minister as the head of government
Multi-party
Clean Government Image
POLITIC
World's 3rd largest Democracy
President as both the head of state and government
Multi-party
Old order (Soekarno) -> New order (Soeharto) -> Reform
High Corruption
POLITIC
Federal representative democratic constitutional monarchy
Yang di-Pertuan Agong is head of state
Prime Minister of Malaysia is the head of government
Maintained stability
Multi Party
Politic
Similarities
There are Head of State and Head of Government
Democratic and multi-party, except Vietnam
Distinctions
British influence in Malaysia and Singapore
Dutch influence in Indonesia
US influence in Thailand
French influence in Vietnam
Economy
Doi-moi
Major agricultural exporter
Major manufacturing centre
ECONOMY
High dependence on raw material export -> manufacturing service and tourism
Economic Liberalization policies
Electronics as the significant motor of economic growth
ECONOMY
Grow rapidly during Soeharto era (in the surface)
Corruption and off budget fiscal activity
One of the emerging market (rapid growth and industrialization) and largest economy in South East Asia
Well developed since Asia financial crisis
ECONOMY
Tripartism
Authoritarian Capitalism Economic Model
Economic freedom and private rights with strong armed control over political life
High technology, service oriented and knowledge based
Economy
Similarities
After the Asian financial crisis, all countries are growing
Distinctions
Vietnam reformed its economy with Doi-Moi economic reform
Singapore maintain economic freedom and private rights with strong armed control over political life
Indonesia concentrate on reducing corruption
Thailand use labor intensive based economy
Malaysia focusing on manufacturing and tourism sector to boost the economy
Ethnic and religion are less diverse
Homogeneity
Harmonious, consider for other
Kreng-Jai, Bunkhun, pen rai, nam-jai
Buddhism
Chinese migration influence
Culture value
Chinese influence
Buddhism
Confucianism
Dao
Culture Value
Buddhism
Hinduism
Muslim
Cultural Diversity
Malaysian Chinese, Malaysian Muslim, Indian
Culture Value
Cultural Diversity
Muslim as the major religion
Chinese and "Pribumi" culture influence
CULTURE VALUE
High Power distance
Kiasu Mentality (fear of losing)
Racial and religious harmony
Mixture of Chinese and Western culture
Culture Value
Similarities
High influence from religion
Chinese influence to some extend
Distinctions
Vietnam with strong influence of Chinese culture
Thailand with strong influence of Buddhism
Indonesia with strong influence of Muslim
Malaysia with strong influence of Muslim
Singapore with strong influence of Chinese and Western culture
Management
Problem
Unemployment
Corruption
Poverty
Inadequate Infrastructure
Currency depreciation
Difficult environment for bond issuance
Natural disasters
Fast rising of food and oil price
Management
Problem
Labor Shortage
Frequent Job hopping
Management
Problem
Inflation
Falling global demand of consumer goods
Cultural diversity
Management
Problem
Labor surplus
Poverty
Labor union has no power
Political risk for MNCs: corruption, project termination, bureaucratic
Legal risk for MNCs: inadequate and ineffective legal framework
Economic risk for MNCs: fluctuation in foreign exchange, interest rate and inflation; import delay; long process on repatriation of profit
MNC = Multi National Corporation
BACKGROUND
Mixture of administration from British and Chinese culture
Change the value to advanced Western value
Cost-quality combination -> quality-innovation combination
Incentive pay to motivate employees
Innovator / creator of change
MNCs and central government provide medical cover
Women have greater access to education and skills, but likely to be paid less than men
Management Practice
Management Practice
British Institution
Improve manufacturing service and tourism
More FDI (Foreign Direct Investment) in high technology industries / automation technology
Leadership with expertise and experience had some potential to achieve organizational outcome
Short term cash gain as the most attractive factor
LMX (Leader Member Exchange) Model
Women on the Islamic sector are expected to work according to religion and social practice
Management Practice
Conservative leadership -> liberalize leadership
Doi-Moi economic renovation
International isolation -> competitive export driven
MNCs localized their IR (Industrial Relations) strategy
MNCs' practice to respond Politic risk:
Provide antigraft training
Undertake private sector projects funded, short term project and purchase insurance
Choose capable local partner with good relationship with local authorities
MNCs' practice to respond Legal risk:
Maintaining good relationship with local government
Negotiation to resolve dispute
Terms and condition consider local policy
MNCs' practice to respond Economic risk:
Allocating risk to main contractor and client through contractual provision
Build good relationship with custom
Reinvest profits
Management Practice
MANAGEMENT PRACTICE
ASEAN
MANAGEMENT PRACTICE
Corrupt authoritarian -> Democracy (ethnic, regional, religious and labor aspirations are expressed)
Types of employment:
Fixed period (written contract)
Indefinite period (permanent) with 3 months probation period
Traditional employment (informal sector)
Minimum wage level differs depending on region
"fees" paid by employers in bureaucrat-business relationship
Women are equal to men according to law, but likely to receive less salary
Recruitment method: referral from universities, recruitment consultant, internet
Racial, religious, ethnic tolerance are promoted by government, but discrimination still exist on certain occasion
Similarities
- Strongly influenced by Western management practices and Western MNCs
- Except Vietnam, all countries implemented democratic management policies
- Religious and cultural imprints play central role in defining management practices
- All countries’ management practices were strongly influenced by the Asian financial crisis
- Management in SEA put emphasis on economic liberalization and reforms in order to achieve economic growth and recovery from the crisis.
- Except Singapore, all countries are export-driven

Differences
- Thailand: Monarchy system >< Singapore: authoritarian capitalism >< Vietnam: economic socialism
- Thailand: labor-intensive >< Singapore: technology based
- Cultural and religious diversity
- In certain countries, MNCs’ corporate culture and management practices strongly permeate the local subsidiaries; while in others, they face local resistance and conflicts.
- HRM practices appear to differ significantly from country to country
ASEAN: The Association of South-East Asian Nations
- Establishment on 08/08/1967 in Bangkok
- Five original members: Indonesia, Malaysia, Philippines, Singapore and Thailand
- 10 countries up until now (Timor Leste is still in the evaluating stage of joining ASEAN)

- ASEAN’s purposes:
(1) to accelerate economic growth, social progress and cultural development in the region
(2) to promote regional peace and stability through abiding respect for justice and the rule of law in the relationship among countries in the region and adherence to the principles of the United Nations Charter.

- The importance of South East Asian Countries in the world:
+ huge markets for products
+ sources of raw materials and goods
+ “off-shoring” sites
+ strategic position in Asia

CONCLUSION

South-East Asian management practices have been strongly driven by countries’ internal factors such as cultural values and religions, political regime, and leadership style.

However, the environmental turbulence in the global economic system has caused a variety of difficulties for South-East Asian management, raising uncertainty about countries’ future growth.

It may take a while for these countries to get back in track
Full transcript