What Can We Learn From Asian Management?


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East-Asian economies are booming and reshaping the global economy. This offers significant business opportunities to Western corporations, but as Asia gains greater economic power, the rules governing international business are changing. Understanding Asian management styles is becoming increasingly important, and this understanding will influence the success of Western managers. But what is Asian management, and how can we all learn from it? This presentation discusses current changes in Asian management practices, as well as how these changes will influence Western business in the near future.

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  • Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.6% of the Earth's total surface area (or 29.9% of its land area) and with approximately 4 billion people, it hosts 60% of the world's current human population. During the 20th century Asia's population nearly quadrupled
  • What Can We Learn From Asian Management?

    1. 1. Can We (Still) Learn from Asian Management? <br />Dr. Parissa Haghirian<br />Sophia University, Tokyo<br />Japan<br />
    2. 2. Dr. Parissa Haghirian<br />Education<br />MA Japanese Studies (University of Vienna)<br />MA International Management (Vienna University of Business and Economics)<br />PhD International Management (Vienna University of Business and Economics)<br />Academic Career<br />Guest Professors for Japanese Economy and Business, Ludwig-Maximilians-University (LMU), Munich, Germany (From April 2011)<br /> Associate Professor of International Management, Sophia University, Tokyo, Japan<br />Assistant Professor Kyushu Sangyo University, Fukuoka, Japan <br />Contact<br />www.parissahaghirian.com<br />
    3. 3. The Asian Economic Miracle<br />
    4. 4. Growth of Gross National Income per Capita (in Current US$)<br />Schuman 2009<br />
    5. 5. Growth of Income per Capita (1965 to 2007) <br />Schuman 2009<br />
    6. 6. Growth Rates<br />China, Indonesia, Japan, Malaysia, and Thailand achieved growth rates of 3-5 percent. <br /> Hong Kong, Korea, Singapore, and Taiwan Province of China, known as the "Four Tigers" had annual growth rates of output per person of 6 percent (over a 30-year period). <br />The average resident of a non-Asian country in 1990 was 72 percent richer than his parents were in 1960 (638 percent richer in Korea).<br /> (Sarel M. 1997)<br />
    7. 7. How did they do it? – Is there an Asian Model? <br />Confucianism?<br />Economic policies?<br />Simply luck?<br />Or is it the people and<br />their skills?<br />
    8. 8. Asian Collectivism <br />vs.<br />Western Individualism?<br />
    9. 9. What Does This Mean For Us?<br />Is Asia our Rival <br />or a New Business Opportunity?<br />
    10. 10. Asia - A New Business Opportunity?YES!!!<br />
    11. 11. What should we do?<br />Participate!<br />Take opportunities!<br />
    12. 12. Asia as Rival?<br />Definitely YES!<br />
    13. 13. What should we do?<br />Shape up and compete! <br />(An old Samurai tactic)<br />
    14. 14. But what if the rival has differentrules for the same game?<br />
    15. 15. East versus West?<br /> Asian and Western firms differ in their mindsets, and in their values, goals, and attitudes<br />
    16. 16. East versus West?<br />Differences are reflected in management decision  making<br />The two systems find different solutions for similar problems<br />Solutions are often extremely different (opposites)<br />Both systems can learn from each other<br />.... but will always keep <br />their original cultural <br />identities<br />
    17. 17. What Can We (Still) Learn from Asian Management?<br />
    18. 18. Why Still?<br />We have learned from <br />Asia before <br />Japanese Management Practices (JIT, Kaizen, Kanban)<br />Harmony ?<br />Strategic Management (Sun Tzu)<br />
    19. 19. Persistence!<br />
    20. 20. But Asian Management is not only very complex, it is also very confusing!<br />So what do we need to know?<br />Theory or Practice?<br />
    21. 21. We Need Both!<br />Theoretical Foundations and Applicable Management Practices<br />Here are some examples!<br />
    22. 22. New StoreConcepts<br />
    23. 23. Product Development Styles<br />
    24. 24.
    25. 25. New Marketing Concepts<br />
    26. 26.
    27. 27.
    28. 28. Some Philosophical Aspects:Kaizen Again<br />Kaizen is not only a management technique, but also a long-term strategy for solving problems<br />Problems should be solved step-by-step<br />Resistance can be overcome<br />Progress can be seen instantly<br />
    29. 29. The Most Important Concept for Westerners: Iitoko dori<br />Iitokodori means “borrowing the most useful practices from other nations ” (Davis and Ikeno 2002)<br />Foreign concepts are not integrated as a whole <br />Only aspects which seem useful are integrated and become Japanese<br /> <br /> <br /> <br />
    30. 30. And This is Only the Beginning<br />... because there is more variety in Asian Management now!<br />Chinese Management, <br />Indian Management, and<br />Korean <br />Management Styles<br />
    31. 31. What Does This Mean for American Businesses?<br /> East Asia’s rapid economic development will continue <br /> The power structure in the world economy will change completely<br /> International Management practices will no longer be influenced by “traditional” and “American” ideas only<br />
    32. 32. Need for Asian Management Programmes<br />
    33. 33. Objective 1: Entering Asian Markets Successfully<br />Successful <br />market entry <br />processes<br />Effective <br />cross-cultural <br />management <br />practices<br />International <br />negotiations <br />techniques<br />
    34. 34. Objective 2: A Contingency Approach to Intercultural Management  <br />Or: <br />Finding the best <br />possible solution <br />(from which ever culture) <br />for a particular <br />problem<br />
    35. 35. The Intercultural Contingency Approach<br />Korean<br />Solution<br />Japanese <br />Solution<br />?<br />Problem ?!??<br />(Situational factors)<br />Chinese<br />Solution<br />?<br />Our<br />(Western) <br />Solution<br />?<br />
    36. 36. Thank you very much for your attention! <br />I look forward to your questions<br />
    37. 37. Literature<br />
    38. 38. Speaker Contact<br />Dr. ParissaHaghirian<br />Associate Professor of<br />International Management <br /> Sophia University, Tokyo, Japan <br />e-mail:<br />parissahaghirian@gmail.com<br /> Website: http://www.parissahaghirian.com<br />