south east asian management

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South East Asian Management South East Asian Management

An Overview of the key historicalAn Overview of the key historical--

social influencessocial influences



HistoricalHistorical--social influences on thesocial influences on thedevelopment of management practice indevelopment of management practice in

South East AsiaSouth East Asia

Chen(1995), Cragg (1995) and SeagraveChen(1995), Cragg (1995) and Seagrave

(1995) suggest that there are certain(1995) suggest that there are certain

historicalhistorical--social influences on thesocial influences on the

development of management practice in SEdevelopment of management practice in SE

AsiaAsia mainly Chinesemainly Chinese

This lecture will simply summarise theseThis lecture will simply summarise these

influencesinfluences



Taoism .Taoism .

Taoism is a wholistic philosophy that emphasisesTaoism is a wholistic philosophy that emphasisesthe interthe inter--relationship and interaction of everyrelationship and interaction of every

entity and everything in the world.entity and everything in the world. Each entity, in turn, will comprise varying (orEach entity, in turn, will comprise varying (oropposing) internal elements or forces. These areopposing) internal elements or forces. These arethethe YIN YIN andand YANG YANG .. HarmonyHarmony must actively bemust actively bemaintained between these elements in order tomaintained between these elements in order tosecure thesecure the WholenessWholeness and integrity of that and integrity of that entity. This will give the entity a character of entity. This will give the entity a character of oneone--nessness..



Continued ..Continued ..

Whilst everything has a character of oneWhilst everything has a character of one--ness, this oneness, this one--ness is subject to change,ness is subject to change,

in accordance with the laws of nature.in accordance with the laws of nature.Nothing is static or immutable; change isNothing is static or immutable; change isnatural and inevitable.natural and inevitable.

The pursuit by managers of stability isThe pursuit by managers of stability istherefore a chimera (a wild and unrealistictherefore a chimera (a wild and unrealisticdream); such a search is bound to fail.dream); such a search is bound to fail.



Confucianism .Confucianism .

Confucius (551Confucius (551--479 ? BC) was a Chinese479 ? BC) was a Chinesesagesage

Confucianism became a moral andConfucianism became a moral andreligious system in China, and more widelyreligious system in China, and more widelythroughout much of SE Asia.throughout much of SE Asia.

In particular, Confucianism became aIn particular, Confucianism became astructure of ethical precepts for thestructure of ethical precepts for themanagement of society based on :management of society based on :




The concept of The concept of REN REN,, which involveswhich involvesbenevolence, humaneness and patronagebenevolence, humaneness and patronage

in the treatment of others.in the treatment of others.

The achievement of social harmony andThe achievement of social harmony andsocial order within a hierarchicallysocial order within a hierarchically

arranged society.arranged society.



For Example .For Example .

Confucius taught that mankind was divided betweenConfucius taught that mankind was divided betweeninferiors, whose task was obedience; and superiors, whoseinferiors, whose task was obedience; and superiors, whosetask was to provide for the common welfare of all. Thetask was to provide for the common welfare of all. The

doctrine states that there is an obligation (throughdoctrine states that there is an obligation (through REN REN ) on) onthose at the top of society to look after their inferiors; andthose at the top of society to look after their inferiors; andon those lower down in the strata of society to toilon those lower down in the strata of society to toilcheerfully in pursuit of the greater good.cheerfully in pursuit of the greater good.

The individual person is not perceived as an isolated entityThe individual person is not perceived as an isolated entityor individual. Man is a social being who is to interact withor individual. Man is a social being who is to interact withothers under the guidance of theothers under the guidance of the renren of his leaders.of his leaders.



The role of the Mandarin The role of the Mandarin

Chinese state functionaries were known asChinese state functionaries were known asgwangwan. They became known as. They became known as mandarinsmandarins fromfrom

the Portuguesethe Portuguese mandermander which meanswhich means totocommandcommand..

A professional meritocracyA professional meritocracy

Associated with Confucian perception that Associated with Confucian perception that

officals, leaders and managers should act in aofficals, leaders and managers should act in adiligent, harddiligent, hard--working and ambitious mannerworking and ambitious manner



Continued Continued

Personal responsibility to develop a sustainedPersonal responsibility to develop a sustainedeffort from their subordinates within a social oreffort from their subordinates within a social or

organisational context which meets the needsorganisational context which meets the needsans aspirations of the wider community of whichans aspirations of the wider community of whichit is part.it is part.

The development of such principles haveThe development of such principles havebecome the basis of thebecome the basis of the work ethicwork ethic that is seenthat is seenthroughout the Tiger economies of SE Asia.throughout the Tiger economies of SE Asia.



Guanxi or Personal RelationshipGuanxi or Personal Relationship

Guanxi means cultivating, developing andGuanxi means cultivating, developing andmaintaining personal relationships on themaintaining personal relationships on the basisbasisof the continuing exchange of favours.of the continuing exchange of favours.

Friendship and empathy between the twoFriendship and empathy between the twoparties are of secondary importance (thoughparties are of secondary importance (thoughthey are useful in reinforcing the relationship)they are useful in reinforcing the relationship)

The commitment that results from theThe commitment that results from the

relationship is perceived inrelationship is perceived in utilitarianutilitarian terms,terms,particularly if the surrounding social context particularly if the surrounding social context lacked basic legal, constitutional or associationallacked basic legal, constitutional or associationalframeworks; or was positively hostile.frameworks; or was positively hostile.




The overseas Chinese communities of SEThe overseas Chinese communities of SEAsia and the Pacific Rim have often beenAsia and the Pacific Rim have often been

persecuted or denied constitutional rightspersecuted or denied constitutional rightssince they were first established. Strongsince they were first established. Stronginterpersonal bonds based oninterpersonal bonds based on guanxiguanxi andandshinyungshinyung (trust) hold together the(trust) hold together the

plethora of communities and trading linksplethora of communities and trading linksupon which the invisible empire of theupon which the invisible empire of theoverseas Chinese (Seagrave) is based.overseas Chinese (Seagrave) is based.



FACE FACE

NOTENOTE The achievement of harmony requires theThe achievement of harmony requires the

maintenance of an individualsmaintenance of an individuals faceface. Face is a. Face is apersons dignity, self persons dignity, self--respect, status andrespect, status andprestige. If an individual loses face the effect isprestige. If an individual loses face the effect isperceived to be the same as if he or she hadperceived to be the same as if he or she hadactually lost eyes, nose or mouth.actually lost eyes, nose or mouth.

Social interaction or negotiation should thereforeSocial interaction or negotiation should thereforebe conducted so that nobodys face is lost. At be conducted so that nobodys face is lost. At the same time, face can be given, as whenthe same time, face can be given, as whenrespect or praise is paid to someone else.respect or praise is paid to someone else.




Strategies for wagingStrategies for wagingwar have thereforewar have therefore

been applied tobeen applied tostrategies forstrategies for wagingwagingbusinessbusiness

Management styleManagement style

and process includeand process includethe following :the following : -- seeseehandout.handout.

Be so subtl e that you ar e Be so subtl e that you ar e invisibl e invisibl e

Be so myste rious that you ar e Be so myste rious that you ar e intangibl e intangibl e

T hen you will cont rol your T hen you will cont rol your rivals fate rivals fate

Sun TzuSun Tzu



The Taipans The Taipans

The Taipan is defined by Cragg as the supremeThe Taipan is defined by Cragg as the supremeruler or big boss. The title of Taipan is accordedruler or big boss. The title of Taipan is accorded

in the East to those leaders considered worthyin the East to those leaders considered worthyof great respect, in the strictest Confucianof great respect, in the strictest Confuciantraditions.traditions.

The first were the British (and Scots)The first were the British (and Scots) heads of heads of

Hong Kong trading companies such as JardinesHong Kong trading companies such as Jardines




Taipans from a variety of nationalities areTaipans from a variety of nationalities arenow to be found throughout SE Asia.now to be found throughout SE Asia.

There are South Korean taipans, Malays,There are South Korean taipans, Malays,Thais and Philippinos. But many areThais and Philippinos. But many areoverseas Chinese.overseas Chinese.

Cragg describes the taipans of SE Asia asCragg describes the taipans of SE Asia assharing such characteristics as being :sharing such characteristics as being :




Strongly autocratic in styleStrongly autocratic in style Strongly entrepreneurial and opportunisticStrongly entrepreneurial and opportunistic RiskRisk--takers (for whom there is no shame in attempt or failure; onlytakers (for whom there is no shame in attempt or failure; only

in a failure to try)in a failure to try)

Exponents of rapid decisionExponents of rapid decision--makingmaking Supreme users of networks and connections (for instance throughSupreme users of networks and connections (for instance through

guanxi)guanxi) Keen to nurture creativity and encourage innovationKeen to nurture creativity and encourage innovation Persistent attenders to detailPersistent attenders to detail

Skilled at managing and manipulatingSkilled at managing and manipulating faceface Steeped in the ways of both East and West; being capable of Steeped in the ways of both East and West; being capable of managing the cultural schizophrenia and dilemmas to which such amanaging the cultural schizophrenia and dilemmas to which such adual focus gives rise.dual focus gives rise.

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