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MANAGEMENTTRAININGMANUALSN0.1BYTHEFACULTYOFBUSINESSADMINISTRATIONUNIVERSITYOFMACAUASIANCULTURESANDMANAGEMENTHideoInoharaProfessorofGlobalHumanResourcesManagementFacultyofComparativeCulutre,SophiaUniversity,JapanVisitingProfessorofJapaneseManagementFacultyofBusinessAdministration,UniversityofMacauPUBLISHEDBYMACAUFOUNDATION

TitleAuthorSeriesSeriesEditorExecutiveEditor:PublishedbyAsianCulturesandManagementHideoInoharaManagementTrainingManualsNo.INelsonJosedosSantosAntonioCarlosNoronhaMacauFoundation(Apartado3025,Macau)October,1997ThecopyrightofthispublicationisjointlyownedbytheMacauFoundationandtheauthor.Allrightsreserved.Nopartofthispublicationmaybereproduced,storedinaretrievalsystem,ortransmitted,inanyformorbyanymeans,electronic,mechanical,photocopying,recordingorotherwise,withoutthepriorwrittenpermissionoftheauthor.Printedby:TipografiaWelfareLda.Distributedby:CulturalPlazaMacauLtd.Price:MOP$40ISBN:972-658-028-5

PREFACETOTHESERIESIn1995,theMacauFoundationandtheFacultyofBusinessAdministrationoftheUniversityofMacaulaunchedthe"MacauStudiesinManagementSeries"withanintentiontopublishhighqualityacademicworkswrittenbylocalresearchersandacademics,thusfillingthelackofEnglishpublicationsinmanagementinthissmallterritory.Theserieshasbeencontinuingwithstrongvigorandiswellinitstenthvolume,encompassingmanyimportantthemesinbusinessadministr~tionsuchasqualitymanagement,consumerbehavior,technologymanagement,culturalinfluencesonmanagement,economics,taxation,andmanagementreformsinChina.Tocomplementthepracticalandpedagogicaspectsoftheseries,the"ManagementTrainingManualsSeries"wasconceivedandisbroughtintorealizationthisyear.Itishopedthatthematerialsinthisnewseriescanbeconvenientlyandfruitfullyusedinclassroomteachingbyuniversitylecturers,speakersandconsultants.Toemphasizetheinternationalizationofmanagementasaworldwidediscipline,theseriesistobewrittenbynotonlylocalacademics,butalsowritersofhighqliberfromallovertheworld.We,attheFacultyofBusinessAdministration,stronglybelievethatMacau,duringthistransitionalperiodbeforeitisrevertedbacktoChinain1999,shouldlookinternationalandendeavorstounleashitsunlimitedcapacitytoserveasanimportantserviceandknowledge-disseminatingcenteroftheAsiaPacificregion.Thepublicationoftwoseriesinmanagementisdeemedtobeanambitiousbutexhaustingexperience.IsincerelythanktheMacauFoundation,thevariouscollaborators,andmostimportantofall,thereceiversofourmodestknowledgeinmanagement.Thatis,ourstudents.ProfessorNelsonJosedosSantosAntonioDeanofFacultyofBusinessAdministrationUniversityofMacauMacau,8thOctober,I997

FOREWORDThepurposeofthisbookisstraightforward:todrawourattentiontothewayweusebusinessEnglishtermstoexpressvaluesandpracticesthatdonotnecessarilyprevailintheoriginalcontextinwhichthetermswereconceived.Maybe500millionpeopleuseEnglishasanativelanguage,butseveraltimesmorepeopleuseitinabusinesscontext.Apuzzlingconsequenceisthenthatnon-nativeEnglishspeakershave,withoutfurtherado,incorporatedEnglishbusinesstermsintheirownlanguage,evenwhentheywouldhaveanadequatenativeterm.TheFrencharewellknownforinsistingontheFrenchlanguage,buthavenotyet"translated"termssuchasmanagementormarketing.ThesameintheGermanlanguageandJapaneseorKoreanlanguages.Valuesandpracticesaremostlycommunicatedbywords,butthereisalwaysmuchmorethanthewords.Aren'tdictionariesappropriate?Definitelynot.Thedictionaryexplainstheoriginalmeaning(notalwaysclearlyremembered!).Butwhenabusinesspersontalkstohis/hercounterpartacrosslanguageboundaries,whattheysaysoundsEnglishandwhattheythink,feel,do,isnative.ThishappensaswellinthecontextoftheEnglishlanguageitself.Forexample,evenAmericancertifiedpublicaccquntantsspeakingwithBritishcharteredaccountantsarenotnecessarilycertainthattheirtechnicaltermsalwayscarrytheexactsamemeaning.TheEnglishtermsweuse,areaproblem,andarapidlygrowingone.Incyberspace,Englishistheonlypracticallanguage,anditisininternationalbusiness.Everysooften,however,somenon-Englishtermsareused(seetheglossaryherein).Wheredotheycomefrom?Fromthedailyrealityinwhich,thebusinesspersonisembedded.Suchtermsstandforavitalnuancethatthespeakerwishessomehowtoconveyattheriskofnotbeingunderstood.AndsuchisalsothedangerwithsomanywidelyusedEnglishbusinessterms.

Howtohandlethislanguageproblem?Theansweriseasytostateanddifficulttoimplement.Sincetheproblemcannotbesuppressed,let'sbeandremainawareofit.Manyofusinbusiness,Chinese,IndonesianorThai,havelearnedEnglishpreciselytogainaccesstoawiderworld,andwhatwebringintothiswiderworldisourselves.Thisiswhatmustbereconciledinpractice:thefacilityofaforeign(butcommon)languageandtherichnessofone'snativeculture.Theresultmaynotalwaysbeefficient,butlet'smakeiteffective.(HaveyounoticedthatsometimesnativeEnglishspeakersthemselvesdonotclearlydistinguishbetweenefficientandeffective?Togetsickis,ofcourse,notefficient;butforsomepeopleitmaywellbetheonlywaytostayalive.Thatiseffective!)Thisbookiswrittenbyanon-nativeEnglishspeaker;hisnativelanguage,Japanese,isnotefficientatleastononescore:itdoesnothelphimtocommunicatewithfellow-Asians.AndsoisthecaseamongmanyAsians.ButtheuseoftheEnglishlanguagecanbeeffectiveinexchangingamonguswhateverunderstandingisrequiredtoconductbusinessandMORE.The"more"isyourself,whatmakesaThaitobeaThai,aFilipinotobeaFilipino.BusinessEnglishdoesnotmakeusidentical;itallowsustosharemutualappreciationofourownidentities.Inourownlanguages,whentheretailertalkstothemanufacturer,thesametermscanwellbeslipperymeansofcommunications.Nolessso,ifaforeignmediumisused,aswhenthedistributorfromMalaysianegotiatedwiththemakerfromKorea.Todobusinessisonething;tostayinbusinessmaybeanother.Totalkeffectivelytoeachother(thepurposeofthisbook)maybeamajorprogressinconductingbusinesseffectively.RobertJ.BallonProfessorEmeritusSophiaUniversity,Tokyo

INTRODUCTIONTheObjectiveofthisBookTheobjectiveistoserveasabasicmaterialforstudyanddiscussionbymanagersandstudents,whoareinterestedintheAsianwayofbusinessmanagement.Itisnotaimedatprovidinganewsourceofinformation.Thereadersareexpectedtosearchmoreinformationaccordingtotherespectivenecessities,inordertohaveabroaderviewanddeeperunderstanding.Itisnottoimposeanyparticularideologyorpositiononanyperson.Itisnevermeanttofacilitatediscussiononsuperiorityorinferiorityofoneculturetoanother.Manypagesofthisvolumearepreparedinsuchawaythattheymaybeusedforgroupdiscussionwithanoverheadprojector.SourcesofstatisticaldataSocialandeconomic(approximate)datainthisvolumeweresourcedfromthereportsofUnitedNations,UNESCO,InternationalMonetaryFund,AsianDevelopmentBank,JapaneseGovernment,BankofJapan,and·therespectiveAsianEmbassiesandrepresentativeofficesinJapan.Itisadvisabletoupdatethefiguresaccordingtothenecessityoftheuser.AcknowledgmentsThisauthortakesapositionofcompileroftherichwisdomandexperienceofAsians.Manypeoplehaveassistedhimincompletingthisbookletobservingthatattitude.EmeritusProfessorRobertJ.BallonoftheSophiaUniversityhavesokindlygonethroughthetextandwrittentheforeword.Asianfriendshavesogenerouslyprovidedusefuladvicebycarefullyexaminingthemanuscript.ThelonglistofsuchfriendsincludeAsmaAbdullah(Malaysia),J.D.Bandaranayake(SriLanka),

PatanjaliChattopadhyay(India),HaTae-Hyoun(SouthKorea),TanyaPhonanan(Thailand),BettyVilla(thePhilippines),andRaymondS.L.Wan(HongKong)tomentiononlyafew.ProfessorDeanNelsonAntonioandMr.CarlosNoronhaoftheFacultyofBusinessAdministration,UniversityofMacau,haveencouragedandassistedtheauthortocompletethetext.TheauthorowesmuchtothepublicationslistedintheBibliographyforconfirmationpurposes.Toallhewouldliketoexpresshisdeepestgratitude.Theshortcomings,however,ofthecontentsareheldresponsiblebytheauthoralone.Heisverygratefulalsotothepublisher,MacauFoundation,andtheireditorswhohaveassistedhiminalltechnicalmattersandsuccessfullycompletedthepublication.Thisbookisdedicatedtomyfamily,Elizabeth,John,Cecilia,andJoseph.HideoInoharaSophiaUniversity,Tokyo

ListofAbbreviationsAFfAASEANFreeTradeAreaAPECAsia-PasificEconomicCooperationARFASEANRegionalForumASEANAssociationofSouthEastAsianNationsCERAustraria-NewZealandCloserEconmicRelationshipTreatyAgreementCPCharoenPokphand(Thailand)EAECEastAsianEconomicCaucusEUEuropeanUnionGDPgrossdomesticproductGNPgrossnationalproductLG(formerlyknownas)Lucky-Goldstar(Korea)NAFfANorthAmericanFreeTradeAgreementOCBCOverseasChineseBankingCorporation(Singapore)SAARCSouthAsianAssociationforRegionalCooperation.UOBUnitedOverseasBank(Singapore)YHSYeoHiapSeng(Singapore)

CONTENTSPrefacetotheSeriesForewordbyProfessorRobertJ.BallonIntroductionListofabbreviationAnOverview1Cultureandorganization81.Culture:adefinition82.Culturaltheoriesandrealities93.Managementstyles104.Functionalvsrelationalmanagement115.Asianvaluesandmanagementstyles126.Asianviewsonmanagement137.ImportanceofworkplaceinAsia148.HRMandHRDinAsia159.Asianemphasisoneducation16Businessanddevelopment1710.Asianoptionsforcorporateobjectives1711.Asianoptionsforcompetition1812.Internationalbusiness1913.AsianInternationalmanager2014.Familynetworkofbusiness2115.AsianbusinessnetworkofoverseasChinese2216.Economicdevelopment2317.Asianoptionsformodernization2418.Asianregionaleconomiczones2519.Asiaandtheworld26

Country(region)characteristics2720.Bangladesh21.BruneiDarussalam22.Cambodia23.China24.HongKong25.India26.Indonesia27.Japan28.Korea29.Laos30.Malaysia31.Myanmar32.Nepal33.Pakistan34.Philippines35.Singapore36.SriLanka37.Taiwan38.Thailand39.VietnamGlossaryoftermsinselectedcountries68Indonesia/MalaysiaJapanPhilippinesThailandQuestionsfordiscussion70Bibliography72Appendix:Surveysonjobsatisfaction80

Abouttheauthor:ProfessorofGlobalHumanResourceDevelopment,FacultyofComparativeCulture,SophiaUniversity,Tokyo.VisitingprofessorofJapanesemanagementattheUniversityofMacauFacultyofBusinessAdministration.AuthorofmanypublicationsonhumanresourcesandAsianculturesinEnglishandJapanese.TechnicalexpertofHumanResourceDevelopmentinmanyAsiancountries,deputedbytheAsianProductivityOrganization,theJapaneseGovernment,andtheJapanProductivityCenterforSocioEconomicDevelopment.RegularmoderatorforinternationalseminarsforEasternEuropeanandAsianhumanresourcemanagers,organizedbytheJapanFederationofEmployers'Associations.LaborandmanagementconsultantforinternationalbusinessorganizationsinJapan,Singapore,andVenezuela.