Managerial Issues

July 27, 2007 0 comments

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The following five tables match selected managerial processes to each of the four original dimensions and to short term versus long term orientation. The processes are Human Resource Management (selection, training, promotion and remuneration), leadership styles, motivational assumptions, decision making/organizational design and strategy issues. It is useful for us to take each process in turn and observe the differences between high and low examples of each. If we take training as an example, we note that in low power distance countries, a major criterion is for autonomy, i.e. the manager can take a decision on his own responsibility, whereas in high power distance countries, training emphasizes conformity. With regard to individualism, training in high individualism countries will be generally geared to meeting individual achievement, whereas in low individualism countries, training is more directed towards company-based skills.

MANAGEMENT PROCESSES LOW POWER DISTANCE HIGH POWER DISTANCE
Human Resources Management    
Management Selection Educational achievement Social Class Elite Education
Training For autonomy For conformity/obedience
Evaluations/Promotion Performance Compliance;trustworthiness
Remuneration Small wage differences between management & worker Large wage differences
Leadership Styles Participative; theory Y Authoritarian Close Supervision
Motivational Assumptions People like work; extrinsic/intrinsic rewards Assume people dislike work; Coercion
Decision Making/ Decentralized, flat pyramids; Tall pyramids;
Organizational Design Small proportion of supervisors Large proportion of supervisors
Strategy Issues Varied Crafted to support the power elite or government

Comparing Management Process -- High and Low Uncertainty Avoidance

MANAGEMENT PROCESSES High U. Avoidance Low U. Avoidance
HR Management    
Management Selection Seniority; expected loyalty Past job performance; education
Training Specialized Training to adapt
Evaluations/Promotion Seniority; Expertise; Loyalty Objective individual performance data; job switching for promotions
Remuneration Based on seniority or expertise Based on performance
Leadership Styles Task oriented Non-directive; flexible person-oriented;
Motivational Assumptions People seek security; avoid competition People self motivated competitive
Decision Making/ Larger organizations; Smaller organizations
Organizational Design Tall hierarchy; Formalized; many standardized procedures Flat hierarchy; Less formalized with fewer written rules/ standardized procedures
Strategy Issues Risk adverse Risk taking

Comparing MANAGEMENT PROCESSES -- LOW and HIGH POWER DISTANCE

MANAGEMENT PROCESSES LOW POWER DISTANCE HIGH POWER DISTANCE
HR Management    
Management Selection Educational achievement Social Class; Elite Education
Training For autonomy For conformity/obedience
Evaluations/Promotion Performance Compliance;trustworthiness
Remuneration Small wage differences between management and worker Large wage differences
Leadership Styles Participative; theory Y Authoritarian; Close Supervision
Motivational Assumptions People like work; extrinsic/intrinsic rewards Assume people dislike work; Coercion
Decision Making/ Decentralized, Flat pyramids; Tall pyramids;
Organizational Design Small proportion of supervisors Large proportion of supervisors
Strategy Issues Varied Crafted to support the power elite or government

Comparing Management Process -- HIGH and LOW INDIVIDUALISM

MANAGEMENT PROCESSES LOW INDIVIDUALISM HIGH INDIVIDUALISM
HR Management    
Management Selection Group membership; school or university Universalistic based on individual traits
Training Focus on company based skills General skills for individual achievement
Evaluations/Promotion Slow with group; seniority Based on individual performance
Remuneration Based on group membership/org paternalism Extrinsic rewards (money, promotion) based on market value
Leadership Styles Appeals to duty and commitment Individual rewards and punishments based on performance
Motivational Assumptions Moral involvement Calculative; Individual cost/benefit
Decision Making Group; slow; Individual responsibility;
Organizational Design Larger organizations Smaller organizations

Comparing Management Process -- HIGH and LOW MASCULINITY

MANAGEMENT PROCESSES LOW MASCULINITY HIGH MASCULINITY
HR Management    
Management Selection Independent of gender, school ties less important; androgyny Jobs gender identified; School performance and ties important
Training Job-Oriented Career oriented
Evaluations/Promotion Job performance with less gender role assignments Continues gender tracking
Remuneration Less salary differences between levels; more time off More salary preferred to less hours
Leadership Styles More theory Y; More theory X;
Motivational Assumptions Emphasis on quality of life, time off, vacations; work not central Emphasis on growth and performance excelling to be best work central to life job recognition important
Decision Making Intuitive/group Decisive/individual
Organizational Design smaller organizations larger organizations preferred
Carry out this exercise for each of the tables above and comment on the likely practices in countries with (a) high power distance and high masculinity and (b) low individualism and high uncertainty avoidance.

Comparing Management Process -- SHORT and LONG TERM ORIENTATION

MANAGEMENT PROCESSES Short term orientation Long term orientation
HR Management    
Management Selection Objective skill assessment for immediate use to company Fit of personal and background characteristics
Training Limited to immediate company needs Investment in long term employment skills
Evaluations/Promotion Fast; based on skill contributions Slow; develop skills and loyalty
Remuneration Pay; promotions Security
Leadership Styles Use incentives for economic advancement Build social obligations
Motivational Assumptions Immediate rewards necessary Subordinate immediate gratification for long term individual and company goals
Decision Making Logical analyzes of problems; Synthesis to reach consensus;
Organizational Design Design for logic of company situation Design for social relationships
Strategy Issues Fast; measurable payback Long term profits and growth; Incrementalism
This table might be considered in the context of the concept of time. Assess the potential impact on managerial practices if the companies take a predominately short-term approach.

Posted by lisa
Categories: International Management Culture

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