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• W266047122 abstract "One of the consequences of globalization for Asian companies is that they are now expected to match the performance standards of their counterparts in developed countries. In a recent survey of 27 leading Asian companies, we encountered the rigorous operational control of many top Western ones, but even now, little attention to managing and motivating people. [1] Certainly, in terms of the building blocks of managing performance, Asian executives rate their companies somewhat highly on organizational structure and highly on framing a clear mission (Exhibit 1). Most executives said that the operational-control processes and organizational structures at their companies were geared toward meeting targets and goals--and that responsibility was indeed pushed down to accountable performance units. But few felt that their companies set bold and measurable performance targets, though all agreed on the need to do so. Of the three methods used to control or coordinate business performance--operational control, financial control, and the placement and management of people--Asian companies overwhelmingly favor the operational approach (Exhibit 2, part 1, on the next page). None of the executives reported that their companies place a strong emphasis on ways of managing people to ensure top-notch business performance. Yet a large proportion of the executives surveyed said that their organizations needed to ensure stronger performance feedback and rewards for those who do well while dealing in a tough but fair manner with those who do not. When it comes to motivating employees, Asian companies tend to rely heavily on an appeal to values, such as being the industry leader and loyalty to the company (Exhibit 2, part 2, on the next page). Despite the difficulty of instilling such values, most of the Asian executives we surveyed rated their companies very highly on doing so. Values are inculcated in many ways: photographs of the company founder and of national leaders in company halls (India and Thailand); references to company values in daily meetings (China and India); statements of values on bookmarks, desk calendars, posters, and--in gold letters--on the entrance to corporate offices (China and many other countries); and singing the company song before meetings (Indonesia). However, few Asian companies use differential incentives to encourage strong individual or group performance: they rarely pay high performers considerably more than other employees or provide performance incentives at many levels of the organization. Because most executives in these countries feel that equality is important to group harmony, they have serious qualms about celebrating individual performance. Only one-tenth of the managers surveyed reported that their companies provide employees with exciting job or project opportunities to stretch individual performance and development. Cultural and other barriers make it difficult for companies to manage performance by using measures that have proved effective outside Asia. Asian managers highlighted at least three such barriers. First, some managers asserted that their cultural milieu makes direct and transparent performance feedback difficult. The chief executive officer of a leading Thai conglomerate, for instance, said that he had tried for five years to institute a feedback mechanism and failed. Thailand's culture values helping and supporting others--so much so that people doing well hide their good performance and give others the credit. That barrier, however, may be more perceived than real. Some companies surveyed have found culturally acceptable ways to deal with underperformers. In India, for example, a car downgrade sends an executive a strong message that is visible to others. …" @default.
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• W266047122 title "Asia's Performance Challenge" @default.
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