Essay Example on the Peculiarities of Management in East Asia

5 pages
1132 words
University of California, Santa Barbara
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Question one: What is distinctive about East Asian cultural, economic, and political environment?

The East Asia Cultural, economic, and political environment has an immense physical expanse in addition to representing a great historical, cultural, a diverse ethnic combination as well as a variety of political developments and evolution. In terms of culture, the region draws mainly from the Confucian traditions as opposed to drawing from religion (Edfelt, 190). Moreover, Edfelt (190) adds, the social structure values order, hierarchy, and deference to authority as reflected in long-standing wu-lun rules of deference. Based on this analysis, it is evident that the East Asian region readily accepts the actual interpersonal differences in powers. The culture is also high on Hofstedes powers. One can also note that the Confucian culture adopted in East Asia is predominantly masculine value oriented. A work environment that is competitive, aggressive and works-oriented is favored. Culturally, there is a high regard for learning.

In regard to political environments, the East Asians have a strong preference for strong benevolent authoritarian leaders. The business is guided by custom as opposed to the formal commercial laws. It is the family that is the basis or the foundation of the socio-political order. The states have minimal social welfare roles in addition to independent labor unionism that is minimal.

Economically, what is distinctive about East Asia is that there has been a rapid export-led economic growth. The area also prefers bank-dominated systems and government-dominated banks. The capital markets in the region are relatively undeveloped but still functioning. In the private sector, the economy constitutes of small and medium-sized enterprises that are family owned. One should note that only a few businesses grow large.

Question 2: Identify major trends of Confucian culture and discuss ways in which they influence East Asian managers and management patterns and practices.

Some of the common trends of Confucian culture is that business is fast-paced. The culture of Confucianism continues to prefer a masculine value orientation. Patriarchs normally lead family businesses. There are new management practices that managers have to adopt in the mid to keep pace with the rest of the world. This means that there are strategies that are used by managers East Asia that is in conformity with Confucianism. The impact of the major trends means that managers in East Asia have resorted to adopting new management techniques.

Due to the fast-paced economic development in East Asia, more and more companies prefer to adopt implicitly of indirect communication and relationships in business. Companies are, however, increasing the vitality of employees training. Due to the need of creativity, innovativeness, and credibility, managers in East Asia have come up with education; programs and workshops where employee are encouraged to take responsibility. Most of the new companies that are being set up in East Asia currently prefer a high degree of formalization and centralization. One should note that authority is concentrated in the senior levels of managerial hierarchies. Currently, the financial decisions and in particular the financial decisions that companies have to make need a formal procedure of approval from the top-level managers.

Question 3: From the viewpoint of management functions, discuss prevalent management patterns in the region.

In regard to management functions, some of the common management patterns in East Asia are predominantly influenced by Confucius culture. Communication and motivation are based on Confucianism. The leadership of many organizations in East Asia is patriarchal. Managers tend to prefer more aggressive employees who use set benchmarks to achieve their goals and objectives. The hierarchical social structure and high power distance tend to bring out the preference of older members of the family to take responsibility for family-owned businesses. Due to the nature of egalitarianism and collectivism in the Confucian culture, managers sin organizations in East Asia tend to prefer employee participation in their daily activities and decision-making. Some managers believe that by creating a workforce that is motivated, dedicated and responsible educated individuals, the employees get an enhanced sense of commitment, loyalty, and organizational identity. 9in terms of control, it is difficult for other organizations to take over business as the composition of the boards is dominated by family members of the owners. Moreover, board members in the family owned businesses, and many other businesses in the private sector do not prefer or accept outsiders among their ranks.

Another relevant management function in regard to control is capital. When businesses require additional capital in East Asia, there is a tendency to prefer or seek debt funding as opposed to equity. The loans that the companies get are in the most instanced relationship driven rather than credit. Due to some existing Confucian cultures, it is difficult for some managers to make standardized western procedures in their management functions. Employees who perform well in firms tend to hide their performance and share the overall work with individuals with low performance. Some managers also find it difficult to evaluate some of their employees negatively as they believe that this may reduce their motivation and may also lead to a position where managers have stop reprimand their employees or lay them off.

Exercise 6.1

The success of every business is dependent on the comprehension of the organizational or cultural background of employees. There are many factors that one can implement while coming up with a compensation package especially if there are various cultural differences. The factors that one could take into consideration are the differences between the American culture and the Asian culture in regard to priorities, mentality, and needs. As westerners, one would select Maslows hierarchy of needs, as this would favor a western individual. However, the Asian culture has a different hierarchy of needs. The fundamental need of an individual in Abrahams Maslow hierarchy of needs is self-actualization. Based on the Nevis Chinese need hierarchy, individuals do not favor the same needs as the individuals from the west. As such, individuals are expected to have different reactions based on their compensation package. Asians tend to prefer interpersonal relationships and social interactions as compared to self-actualization needs. Asians tend to favor a collectivist culture whereby they favor or focus their efforts son the wellbeing of other individuals rather than their own needs. Asians define the quality of life that they are living based on the social interactions that they have with other people and especially family members and close relatives. Moreover, such a compensation package would require the new CEO to adopt strategies that do not separate their private lives with their jobs. Nevis Chinese need hierarchy prefers the development of relationships while working so that work can be done effectively. I would not choose Maslows hierarchy of needs as it does not represent the full integration of culture into the Asian CEO.


Works cited

Edfelt, Ralph B. Global Comparative Management: A Functional Approach. Los Angeles: Sage, 2010. Print.


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