Managerial Issues
July 27, 2007 0 comments
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.
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