Cross-Cultural Leadership of Asian Leaders in the New Globalism

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Hosting 60% of the world’s population, Asia collectively has the largest economy in the world. In the last few decades, Asian economies have been growing tremendously. Most global multinational companies are present and engaged actively in the region. Led by China, Asia also attracts the highest foreign-direct Investment in the world. In addition, recent development shows an increasing international trade and cross-borders investment through the increase of bilateral and multilateral free-trade agreements among the Asian countries (e.g. ACFTA).

Globalisation and increasing cross-border engagements has resulted in organisations having to manage culturally diverse groups, both within the organizations (owners, employees, investors) and outside of them (suppliers, competitors, and customers). As pointed out by cross-cultural studies in organizations, cultural differences are not disappearing nor diminishing in global organisation practices. On the contrary, they seem to be getting more complex, and are posing challenges for organisations to achieve their goals.

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Cross-Cultural Leadership of Asian Leaders in the New Globalism

  1. 1. Program Agenda 1 ... Cross-cultural Impacts of the New Globalism 2 Challenges & Potential for Asian Leaders 3 Developing the Global Competence of Asian Leader 4 About the Project and applied Research Method http://sinau.me/hcli Jakarta, Indonesia, July 20th 2011 by Prof. Dr. Hora Tjitra, Zhejiang University Cross-­‐Cultural  Leadership   of  Asian  Leaders   in  the  New  Globalism
  2. 2. Abstract • Led by China,Asia attracts the highest foreign-direct Investment in the world.In addition, recent development shows an increasing international trade and cross-borders investment through the increase of bilateral and multilateral free-trade agreements among the Asian countries (e.g.CAFTA). • Globalization and increasing cross-border engagements has resulted in organizations having to manage culturally diverse groups,both within the organizations (owners, employees,investors) and outside of them (suppliers,competitors,and customers). • As pointed out by cross-cultural studies in organizations,cultural differences are not disappearing nor diminishing in global organization practices. • On the contrary,they seem to be getting more complex,and are posing challenges for organizations to achieve their goals.
  3. 3. Agenda 1 ... Cross-Cultural Impacts of the New Globalism 4 2 Challenges and Potential of Doing Business in Asia for Asian Leaders 11 3 Developing the Global Competence of Asian Leader in Response to the New Globalism 15
  4. 4. ...  Cross-­‐Cultural  Impacts   of  the  New  Globalism
  5. 5. The world is flat ... Opportunities Competition / Threats Information & Technology Innovation & Collaboration
  6. 6. Limitation of • Language • Knowledge • Physical Chinese: adapt to the other counter part more Development of • Economy • Knowledge • Language Chinese: start to take the leading role more 10 years in China · 10 years in China · 10 years in China · 10 years in China · 10 years in China New  Way  of  East-­‐West  Collaboration
  7. 7. Not  Only  that  Intra-­‐Regional-­‐Trade  within  Asian  Countries  ... Southeast Asia has grown rapidly in recent decades. Intricate regional production networks and supply chains have been established in industries such as that of the EU (about 75 percent). Across different subregions within Asia, East Asia is the most inte- grated subregion, although labor and monetary/finan- Asia has experienced an increase in share of intra-regional trade Figure 2 Source: World Bank World Development Indicators, 2011. Note: Figures refer to total trade (exports plus imports). The intra-regional trade share of region i is defined as IT sharei = (Xii+Mii)/(Xi+Mi), where Xii = exports of region i to region i; Mii = imports of region i from region i; Xi=total exports of region i; and Mi = total imports of region i “integration relate to the costs of trading, infrastructure, the competitiveness and quality of institutions, and conflict
  8. 8. ...  but  also  Intra-­‐FDI-­‐Flow  within  Asian  Countries South–Southeconomiclinks71 .. Source and destination of outward and inward FDI flows, selected Asian economies, – Notes: See Figure ... Sources: See Figure ... Direction of flows: ! South to South South to North (and vice versa) South to offshore financial centers (and vice versa)! ! ! ! ! ! ! ! ! ! ! $3 billion $0.7 billion $38 billion $7 billion $10 billion $2 billion $56 billion (Asia-5 to developing Asia) $71 billion (developing Asia to Asia-7) $12 billion $2 billion $69 billion $44 billion $0.2 billion $1 billion ! ! ! ! ! Africa Latin America Developing Asia North excluding Japan Japan Offshore financial centers Other South Offshore financial centers Closer   Pan-­‐Asia  Regional   Collaboration
  9. 9. 9 Domestic Export International Multinational Global/ Transnational Domestic multiculturalism making an Impact Ability required to negotiate and do business with foreign distributors. Must adapt approach and its products and services to local cultures. Global cultural diversity strongly affects external relationships, especially with potential buyers and foreign workers. Localized Structure reduces need for cross- Cultural awareness. Need to manage cultural diversity inside and outside the firm. All levels need cross-cultural management skill for maximum flexibility. HIGH LOW Strategic Importance of Culture
  10. 10. ... higher need of intercultural competence for the Asian Leaders Flat World East-West East-East
  11. 11. Challenges  and  Potential   of    Doing  Business  in  Asia   for  Asian  Leaders
  12. 12. Ethnocentrism  and  Culture  Relativism (world-­‐wide  famous) Hardworking  Chinese   Ethnocentrism “Everybody  is  hardworking.” Indonesians Singaporeans When  Chinese  come  to  work  in  Indonesia: “Indonesians  are  not  hardworking.   They  are  so  relaxed!” When  Indonesians  go  to  work  in  China: “Chinese  are  really  hardworking! (and  Indonesians  are  at  normal  level)” When  Singaporeans  go  to  work  in  China: “Chinese  are  really  hardworking! (and  Singaporeans  are  at  normal  level)” When  Singaporeans  come  to  work  in  Indonesia: -­‐  “Are  Indonesians  hardworking  or  relaxed?”
  13. 13. WEAK HALUS KASAR STRONGOverdone Overdone Four  Values  Quadrant  -­‐  The  double  sides  of  a  coin
  14. 14. Who  you  are  depends  on Where  You  Are! ❖ Achievement Driven ❖ Professionalism ❖ Facilitative Leadership Singaporean  Expatriates   in  Indonesia Chinese  Expatriates   in  Indonesia ❖ Strong Drive ❖ Personal Advancement ❖ Systematic Improvement ❖ Country Brand ❖ Internationalism ❖ Master of Planning Singaporean  Expatriates   in  China ❖ Exposure to Diversity ❖ Warm and Personable ❖ Integrator Indonesian  Expatriates   in  China
  15. 15. Developing   the  Global  Competence   of  Asian  Leader   in  Response  to  the  New  Globalism
  16. 16. Andere Länder, andere Sitten. Allá donde fueres, haz lo que vieres. À Rome, fais comme les Romains. 郷に入っては郷に従う. 入乡随俗 Lain ladang lain belalang, lain lubuk lain ikannya. Tolerance? Differences Harmonization? Heightened Sensitivity? Is Cross-Culture Adaptation a Universal Value?
  17. 17. 17 “I hear and I forget, I see and I remember, I do and I understand.” Learning  is  a  process  whereby  the  learners  study  their  own  acGons   and  experience  in  order  to  improve  performance. While  classroom  learning  focuses  on  presenta;on  of  knowledge  and   skills,  ac;on  learning  focuses  on  research  into  acGon  taken  and   knowledge  emerges  as  a  result  that  should  lead  to  the  
  18. 18. International  Assignment  as  integral  Part  of  Internationalization  Process • Developing expatriate-profiles and conducting selection • Preparation of the expatriates and their families (e.g. cultural awareness training, etc.) • Conceptualization of an escorting system during the assignment (e.g. coaching, mentoring, etc.) • Return planing and reintegration seminar • Internal marketing to motivate employee for international assignment Marketing Selection PreparationSupporting Reintegration International   Assignment 10% - 50% of expatriates returning early from their assignment. Expatriates’ difficulties are costly for MNCs, ranging from $250,000 to $1 million. (Eschbach et al., 2001)
  19. 19. Program background: • An applied research and learning program, collaboration project between RheinAhr Campus of FH Koblenz (Germany) with the School of Psychology, Zhejiang University (China). • The program is funded by the BMBF as part of the German-Chinese Scientific Year Program. • Ge8ng  to  know  the  culture-­‐specific  condi=ons  of  studying  and  working  in  China  and   Germany. • Defining  central  competencies  necessary  for  German  and  Chinese  employees  to  be   successful  in  the  foreign  job  market. • Defining  central  competencies  necessary  for  German  and  Chinese  students  in  the   foreign  science  context. • Developing  cultural  sensi=ve  assessment  procedures. • Designing  intercultural  media  for  assessment  and  learning. Main  objecGves  of  the  program:
  20. 20. OBJECTIVE Improving  communica.on  and  coopera.on  between  Chinese  and  foreign  parts   &  Achieving  common  understanding  on  organiza.onal  vision  and  strategy BACKGROUND - Chinese-European joint venture with main business in high-tech industry, has more than 5000 employees and an annualized yield of about 4 billion yuan. - The surge capacity from business, intensive industry competition, and ineffective cooperation and communication between Chinese and foreign staffs became the big challenges to the business development. EXPECTED RESULT - Understanding organizational situation clearly from different perspectives - Exploring challenges the organization faced and identifying critical ones - Discovering influencing factors for different challenges - Developing action plan for the future implementation
  21. 21. Cross-­‐Cultural  Coaching  -­‐  Fit  for  China  (18  hrs  coaching)   • Individualized Assessment and Coaching approach: ... a one-on-one development process formally contracted between a coach and a management-level client to help achieve goals related to professional development and/or business performance (Valerio & Lee, 2005). Biography & Personality In-Depth Profiling Interview Interviews w. Superiors around 9 months Short Lecture Overview on China Coaching discussion Critical Incidents Behavioral Coaching Intercultural Competence • Facts  and  Figures  about   China • Short  history  and  recent   development  of  China • Business  and   management  prac=ces  in   China  &  APAC • Recent  cross-­‐cultural   studies  on  Chinese   consumer  behaviors • 3  hours  classroom • Coaching  discussion  on   case  studies  and  cri=cal   incidents  in  different   management  areas  in   China  and  APAC. • Coaching  discussion  on   personal  experiences  in   China  and  APAC  in  the   first  month • 4  *  90  min  either  f2f   or  phone  or  email • Observa=on  on  the  real   culture  encounter   situa=ons,  e.g.  mee=ng   or  daily  interac=on  in  the   office  and/or  private • Coaching  feedback  on   the  observed  situa=ons. • 4  *  90  min  either  f2f   or  phone  or  email Behavioral Coaching Feedback & Development Plan • Coaching  feedback  on   the  assessment • Coaching  on  the  crea=ng   development  plan • 90  min  in-­‐depth   interview 2*45  min  interviews   with  superiors 90  min  feedback 90  min  development   plan
  22. 22. Global  MBA  /  EMBA  Program
  23. 23. Brief  Introduction  of  Research “Building  Global  Competence  for  Asian  Leaders” Background & Objective • 90-minute in-depth interview with 110 expatriates from Singapore,China and Indonesia and their local coworkers • All interview data were recorded and fully transcribed in the original language (English or Chinese or Indonesian) • Interview data were analyzed using the grounded theory approach Method • Elaborating the challenges and problem solving strategies of Chinese,Singaporean and Indonesian business leaders in international cooperations. • Identifying key learning experiences to develop and sustain intercultural sensitivity for Chinese,Singaporean and Indonesian business leaders. • Creating learning materials for leadership development programs,e.g.case studies,critical incidents,culture assimilator,etc. • Instigating recommendations of organizational system to support culturally effective leaders.
  24. 24. Qualitative  Data  Collection  in  Indonesia  and  China: 110  In-­‐Depth  Interviews A series of 90-min In-Depth Interviews will be conducted in China and Indonesia from Nov.2010 until May 2011 with Chinese,Indonesian and Singaporean business leaders and managers. In-­‐Depth  Interviews in  China In-­‐Depth  Interviews in  China 16 Indonesian  Expatriates 16 Singaporean  Expatriates 11 Chinese  Co-­‐workers 14 Chinese  Co-­‐workers In-­‐Depth  Interviews in  Indonesia In-­‐Depth  Interviews in  Indonesia 15 Chinese  Expatriates 8 Singaporean  Expatriates 15 Indonesian  Co-­‐workers 15 Indonesian  Co-­‐workers In China,the respondents are Indonesian and Singaporean expatriates who have been working and living in China for at least one year or more and having leadership experiences; as well as their local Chinese co-workers and counter-parts. Respectively in Indonesia,the respondents are the Chinese and Singaporean expatriates who are working and living in Indonesia as well as their local Indonesian co-workers and counter-parts.
  25. 25. Organization Type Number Large Western MNC 16 Large Asian Enterprise 8 SOE Asian 11 SME Asian 23 Others (e.g.SME Western,etc.) 10 Interviewee  ProRile  -­‐  Organization
  26. 26. Interviewee  ProRile  -­‐  Job  Position Type Job TitleJob TitleJob TitleJob Title TotalType Business Owner / Entrepreneur Top / Senior Manager (incl.President,GM, VP,Director,etc.) Manager Others Total CN expatriates in ID 0 8 6 1 15 ID co-worker with CN expatriates 0 1 9 5 15 SG expatriates in ID 1 3 2 2 8 ID co-worker with SG expatriates 1 7 5 2 15 SG expatriates in CN 1 10 8 0 19 CN co-worker with SG expatriates 0 2 8 1 11 ID expatriates in CN 5 5 6 0 16 CN co-worker with ID expatriates 0 1 7 3 11 Total 8 37 51 14 110
  27. 27. Data  Analysis:  Grounded  Theory  -­‐  Framework  of  Study Interview 1 Interview 2 Preparation: minimizing pre-conception Theoretical Sampling In-Depth Interview Analysis: comparison & sensitizing concepts Memoing: theorization & integration Theoretical Outline Sorting: conceptual sorting of memos Report & Writing Research Objectives and Questions Agreement Disagreement Exception Explanation Better Understanding
  28. 28. Grounded  Theory  Analysis  supported  with  Atlas.ti  QDA  software
  29. 29. Professional  Background Dr.  Tjitra  has  performed  interna4onal  management  consultancy,  training,   assessment,  coaching  and  research  in  Asia  and  Europe.  His  working  areas  are   focused  on  intercultural  management  as  well  as  human  resource,  organiza4onal  and   strategic  development. Prior  coming  to  China,  he  used  to  live  and  work  in  Germany  for  fourteen  years  and   was  responsible  for  the  global  diversity  as  well  as  Asian  business  and  management   development  prac4ces  of  leading  HR  consul4ng  companies  in  Germany.   In  addi4on  to  his  consul4ng  works,  he  held  a  posi4on  as  associate  professor  for   applied  psychology  at  the  Zhejiang  University  (China).   Educa.on  and  Professional  Qualifica.on Dr.-­‐Phil.  in  cross-­‐cultural  psychology  and  strategic  management  from  the  University   of  Regensburg  (Germany) Dipl.-­‐psych.  in  organiza4onal  behavior  and  HR  management  from  the  Technical   University  of  Braunschweig  (Germany) Cer4fica4on  in  Hogan  Assessment  System  (China/US),  Strategic  Management  from   McKinsey&Co  (Italy/Germany)  and  HR  Management  from  INSEAD  (Singapore/ France)   Language  and  other  qualifica.on He  is  fluent  in  Indonesian,  German,  English,  and  can  communicate  in  Chinese  and  is   a  member  of  the  Interna4onal  Academy  for  Intercultural  Research  and  Interna4onal   Associa4on  for  Cross-­‐Cultural  Psychology. References  /  Sample  Clients Interna4onal  project  experiences  for  top  and  middle  management  at  the  global  and   na4onal  level  in  over  ten  countries  in  Europe  and  Asia.   SAP,  Saint-­‐Gobain,  Barco,  Ameco  Beijing,  SCHOTT,  Siemens,  BASF,  DHL,  Telkom   Indonesia,  etc. • Intercultural Qualification,Training and Consulting • Executive Assessment and Coaching • Talent Development and Management • Strategic Change and Organizational Development Prof.  Dr.  Hora  Tjitra
  30. 30. Research Partners: Funding Partner: Zhejiang University China www.zju.edu.cn Zhejiang University of Technology China www.zjut.edu.cn Atma Jaya Catholic University Indonesia www.atmajaya.ac.id Human Capital Leadership Institute Singapore www.smu.edu.sg Hora Tjitra Hana Panggabean Juliana Murniati Quan HE Daisy ZHENG Chaohui ZHANG Teng SHENTUJia ZHOU Xiaojuan WANG Dan ZHAO Xixie ZHANGSebastian Partogi Yuanbo LIU Tayyibah Mushtaq Anggita Hotna Panjaitan Yang WANG Thank  You! Contact us via … E-Mail: htjitra@zju.edu.cn Follow: twitter@htjitra Website: http://sinau.me/hcli

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