Publications

Introduction

Asias rapid economic turnaround since the 1997 Asian Financial Crisis had given global investors reasons for optimism. The regions turnaround had indeed been remarkable. In 2007, developing Asian economies are expected to grow 7.6%, with China and India leading the growth. China is projected to grow at 10%, while India at 8%. The Southeast Asian region is likely to grow at an average rate of 5.6%.

With global investors re-focusing their attention on Asia, the issue of cultural differences has once again emerged as a critical factor in operating in the region.

In discussing the impact of Asian cultural issues on human resource management, it is impossible to cover all the bases. This article will mainly dispel some common cultural stereotypes about Asians, and look at some emerging trends in Asia. The article will also examine some aspects of Asian cultural impact on businesses, and suggest some techniques for recruiting and retaining employees that might work better in an Asian context.

Common Cultural Stereotypes

(1) Asians are quiet, reserved and never say what they mean.

Being direct is not a valued trait in most Asian cultures. Rather, maintaining harmony is viewed as more important. Most Asians tend to avoid any situation that might lead to a conflict.

For instance, rather than reject an invitation or proposal outright, Asians may resort to more subtle ways such as saying that they need more time to examine the proposal, or that they need to consult classmates or colleagues.

(2) Asians are not creative.

Not true. The Chinese were the first inventors of paper, the compass, gunpowder, and movable-type printing. The Koreans had central heating in their homes long before the ancient Romans came up with the idea. The truth is that Asians have a long history and civilization. And it is usually political circumstances and rigid adherence to ideology that had resulted in a lack of creative ideas.

But with Asias growing integration into the global community, a new burst of energy and creativity can be found all over Asia. Modern urban citizens, especially those educated and trained in western countries are exceptionally talented, creative and receptive to new ideas and managerial practices. In vibrant metropolises like Hong Kong and Singapore, creativity has even become highly prized and encouraged in schools.

(3) Asians are highly deferential to tradition and authority.

Deference is certainly a large part of Asian doctrine, due in no small measure to the pervasiveness of Confucianism. This age-old doctrine has been deeply ingrained in the philosophies and worldview of many Asian countries. Confucianism teaches that it is unacceptable to question authority or to undermine group harmony.

But with greater globalization and external influences, younger Asians are less inclined to be deferential as compared to their elders. Some do not hesitate to assert themselves or question tradition and authority.

(4) Asian women are subservient.

While this was certainly true even as recently as 10 to 20 years ago, the situation has changed rapidly. The participation of Asian women in the workforce has reached over 50% in many countries, and in the case of Thailand, a whopping 65.1%. Many women have increasingly made their presence felt in the government and civil service, not to mention management boardrooms.

Even though Asian women are still generally underrepresented in the top echelons of business, their increased educational levels and earning power has generally made them less subservient as compared to their mothers and grandmothers. Legislation that aims to remove discrimination against women has also been progressively introduced in many Asian societies, and this has instilled a lot more confidence in women as equal partners in society.

Emerging Asian Cultural Trends

(1) Greater emphasis on individual rights.

While many Asians still value group harmony and consensus, there is now a greater awareness and emphasis on individual rights. Many younger Asians have begun to view individual rights and happiness as more important than fulfilling obligatory duties associated with the family or the group.

Among younger Asians in the more affluent parts of Asia, discovering oneself in the form of overseas travel to exotic places has become increasingly popular. Many also prefer to follow their dreams and pursue vocations deemed unconventional by their parents generation. It is not unheard of to hear of Asian youths taking months and even one or two years off to teach or undertake voluntary work in rural parts of the region.

(2) Stronger focus on quality of life

As Asia becomes increasingly urbanized and prosperous, many Asians have begun to demand a better quality of life. While many Asians still work longer hours as compared to their American or European counterparts, there is now a gradual trend towards shorter working hours and an eventual move towards a five-day workweek.

In the more affluent parts of Asia, overseas holidays have become a norm for many middle-class families. Many urban residents are also increasingly concerned about the quality of their living environments. They have become vocal about issues such as air pollution, safety of their drinking water and food supplies, and the provision of quality health care services.

(3) Greater willingness to speak their minds.

While Asians are generally not as assertive and forthright as their western counterparts, younger Asians have become increasingly vocal in speaking their minds. Many are still mindful of values such as seniority, hierarchy and respect for their elders. But in cases where these values are not challenged or compromised, younger Asians have made themselves heard.

Asian Cultural Traits

But despite some perceptible changes in Asian cultural traits, several other elements remain unchanged.

These include the concept of face and the emphasis on harmony and the avoidance of outright conflicts. Other constant Asian cultural traits include status symbols, group-orientation, hierarchy, and the importance placed on human relations.

The concept of face is especially important, as Asian children are taught from a young age that they should not disgrace ones family or self. During the banking collapse in Japan in the 1980s, some Japanese bankers even chose to commit suicide, so as to atone for shame they brought to their families. While work-related suicides have become less common in modern times, it is still common for some Asians to feel that they can no longer continue working for a company that had caused them to lose face.

Cultural Traits Impact on Human Resource Management

(1) On Recruiting Asian employees

(a) Prior to the Interview

Recruiting over the Internet is generally seen as a good idea as most Asians are technologically savvy. But generally the Chinese, Japanese, Koreans and Indians are more technologically savvy than their Vietnamese and Southeast Asian counterparts.

In the case of Chinese employees, using red ink or red paper in your advertisement might be useful, as red represents good luck and prosperity. But be mindful that red should not be used when advertising in Korea, as it symbolizes death.

(b) During the Interview

Generally, Asians tend to look for firms that are large, reputable and stable. Many take pride in telling their friends and family that they are working for a well-known company.

To appeal to Asians, it is much better to emphasize the reputation and reliability of the company. Stating that your work environment is cutting edge will not be as effective as stressing the family atmosphere of the workplace.

It is also important not to undermine your competitors, as doing so would make the one who spoke negatively lose face. Instead, outline the strengths and benefits of the company.

In the case of Japan, avoid telling prospective employees that the company is distinctive or unique. Remember that the Japanese value group harmony and fitting in.

(c) The Key to Successful Negotiations

Trust between the two parties is crucial in Asia. Asians are generally more attentive to the nature of the relationship that they are building with the other party. Asians believe that solid personal relationships will help minimize potential conflicts.

When negotiating, it is essential to bear in mind that most Asians will rarely say no. And just because they do not does not mean that the answer is yes. Apart from sucking air through their teeth, the Japanese are said to have at least seventeen ways to avoid saying no. The Chinese on the other hand might delay their response so as to kill a deal without losing face. Koreans often make the other party wait until the last minute before giving an answer. But overall, Koreans are generally the most likely of all Asian groups to give a clear no for an answer.

(2) On Retaining Asian Employees

(a) Career and monetary incentives

Many Asians prefer jobs where there are clearly defined career paths, so it is helpful to project a vision of the employees role in the company in the immediate years ahead.

Asians also like to feel that they are constantly progressing in their careers. This can come in the form of increased responsibilities and the higher pay that comes along with such responsibilities. It can also come in the form of career planning and development such as encouraging employees to take on overseas assignments early on in their careers.

Asian employees generally appreciate mentoring and training programs, especially skills-specific ones ranging from technical skills to sales, public speaking, foreign language and cross-cultural skills. Being sent for training at skills-related institutes both in the home country and overseas is also highly welcomed. Such tangible investments in the employees skills can increase the feeling of belonging, enthusiasm and support on the part of employees. In addition to raising corporate loyalty, it can also help reduce turnover.

(b) Non-monetary incentives

For many Asians, job titles are extremely important. This explains why in many Japanese banks many executives are either a vice president or director. As a result, salary may be of a lesser concern so long as it is competitive.

Asians tend to prefer building relationships, so it is helpful to forge better ties with them through informal gatherings and get-togethers. Asians generally find it easier to work for an individual rather than an impersonal company.

Generally, Asian employees feel that it is useful to have clear tasks with measurable milestones. This will help them know if and how far they have been progressing. Be prepared to set aside time to discuss employees progress and areas of improvement.

In the less-developed regions of Asia, employees are more comfortable following strict instructions and close supervision. They are also unlikely to take risks associated with creativity. But a good manager will be able to help them do their jobs, and give them the right motivations and encouragement to work with less supervision and greater creativity.

Whenever possible, senior employees should be allowed assume greater responsibilities, especially when they relate to work systems which directly affect employees. These systems would be more readily accepted if they were devised by the employees. Employees will also feel more committed to making such systems work.

(c) Other general pointers

Public criticism of Asian employees should be avoided. If admonishments have to be delivered, they should be done in private. Try not to allow employees to lose face in front of their colleagues.

Bad news rarely travels up, so look carefully for clues about staff dissatisfaction. Do not assume that employees are happy just because they do not complain. Take the time to speak with them on a regular basis. Many Asian employees find it difficult to deliver bad news or complaints to superiors, and would sometimes resign rather than air a workplace grievance.

Singling out high-performing staff for praise might sometimes be counterproductive. It may be seen as an attack on everyone else and could lead to resentment. Try to congratulate the entire team instead, even if some in the team are not deserving. These undeserving ones generally know who they are.

Asian employees are generally reticent and will seldom voice an opinion during meetings. To many of them, meetings are occasions to listen to what superiors have to say. So sometimes private one-on-one chats with employees after these meetings may be useful and even necessary.

When bad news has to be delivered, do so in a tactful way. For instance, it is much better to say that we have decided to move you to this position so that you will have fewer responsibilities which will allow you to spend more time with your family, than we are demoting you because you are not delivering.

Conclusion

Transcending cultural barriers is never easy. It is helpful to have an open mind and the desire to communicate with and understand the mindsets of Asian employees. While attempting to inject global practices into the workplace, it is useful to occasionally pause and reflect why Asians have reacted or behaved the way they have done.

Concepts such as giving face and forging closer bonds with employees may sometimes seem counterproductive to the western notion of efficiency and profit making. And Asian notions of human relations are often blamed for nepotism and corruption.

But nevertheless, a good understanding of and appreciation for Asian cultural traits is essential. Asians are generally keen to improve themselves both on the individual and national level. A combination of proper appreciation of cultural traits and the right incentives can help Asian employees adopt a more global mindset, and contribute positively to your corporate and organizational goals.

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