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Copy of Transition In Asia

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OB Group 5

on 30 April 2014

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Transcript of Copy of Transition In Asia

Transitions Asia: Managing Across Cultures
Technology Challenges
Long periods of no communication
Lack of communication between the changing of generations
Communication Issues

•The New RFID tags give employee freedom

Problem: Wong Lung and Hei believe John gives workers too much autonomy

•“They are getting too sloppy”-Wong Lung

Why does he say this?


1. Power Distance (PDI)

- How power in different cultures is distributed unequally
- Either low or high.
- In this case, PDI is very .

2. Individualism versus Collectivism (IDV)

- Whether the self-image is “I” or “we”.
- In this case, the culture is very collectivistic.
- Family business

Confucian Hierarchy Structure
Autocratic Decision Making

Decision Making Style
Why do Hei and Lung have problems with this?
Wong Lung
Increasing production capacity to meet sales demand
Family values in business
Problems: lack in persistence
Wong Hei
The factory workers
Extrinsic motivation: financial incentive, maximize working hours
Poor work-life balance and low efficiency
- With John Stiles: too much flexibility, declining quality.
- With Wong Hei: low compensation, little commitment to come back.
John Stiles
Position: Interim manager
Role: Leader
Does the Right Things

Stiles's Roles
Hei and Wong are used to having all the power
Asian Cultures High UAI
Unknown: Will greater autonomy increase production
Knowledge of the Business

Competencies of Effective Leaders – Wong

3. Masculinity versus Femininity (MAS)

- How large the gender role is in a society.
- Masculinity

4. Uncertainty Avoidance (UAI)

- The extent to which a culture avoids uncertainty
- Either strong or weak
- Strong UAI

5. Short -and Long-Term Orientation (LTO)

- Whether the focus is based in the present or in the future.
- The typical Asian culture is medium/long term orientated.
Long Term
The company focuses a lot on the long term decisions

Bring the son to the meeting
Make him aware of the problems
Make him ready to take over
Make sure he is aware of culture differences!
Communication Recommendation
More open Communication Channels
Email 2-3 times a week
Skype weekly
Autonomy Recommendation
Lung and Hei
-The positives associateed with high Autonomy Levels
John Stiles
-Asian culture often low in Autonomy
Leadership Recommendation
Autocratic => Consultative
Job rotation
Job enrichment
Compensation: piece-rate pay and lump-sum bonus
Extrinsic motivation: Recognition as the Captain of the production floor
"Since Stiles's arrival, Hei seemed to have taken a back seat and lost his usual motivation."
Problems: Hei and middle-management are not co-operating.
Intrinsic motivation: Production capacity & efficiency.
- Attempts to fix problems outside of his duties
- Temporary consultant and an outsider
Wong Lung:
CEO of Guanghe Clothes Manufacturing (Guanghe Province, China)

Chee Lung:
CEO of Interim management firm, Transitions Asia

COO of Guanghe Manufacturing

Alan Wong:
Wong Lung's son, future CEO
Wong in need of Interim Management to implement change
Chee decides an American, John Stiles is right fit
3 months later Chee finds out " a few people in his management are threatening to quit" because of John Stiles
Why? How should Chee deal with this?
Cultural Differences
The Case
Full transcript