I would not have been able to complete this thematic paper without all his advice and instructions. Thee Tichiengthong who gave me thorough explanation about research queries, assistance and contribution in this thematic paper. I would not have been able to gather all this essential information and this thematic paper would have been flawed.
EFFECTIVE LEADERSHIP APPROACHES IN AN INTERNATIONAL ORGANIZATION: INFLUENCING FACTORS OF THAI EMPLOYEES' EXPECTATIONS VERSUS THE PRACTICAL LEADERSHIP GUIDELINES OF AMERICAN AND ITALIAN MANAGERS IN THAILAND. The research will focus primarily on the feelings and attitudes of Thai employees towards foreign managers. This study found that "tangible incentive" is the most suitable management approach for Thai employees.
Although the most important economic senses come from many business transactions, profitable relationships seem to depend on being able to resolve international differences arising from separate cultures. These capabilities help their organizations span international borders and be able to achieve successful relationships with international suppliers, strategic alliance partners and global customers. They must be able to effectively manage their human resources to achieve the best results for the company.
Appropriate management approaches must then be implemented to efficiently allocate limited human resources to the right workplace with the highest level of productivity.
Significance of Study and Expected Benefits
Scope of Study
LITERATURE REVIEW
- The importance of Cross Cultural Knowledge in Thailand
- Cross-Culture Management (CCM) as a Competitive Advantage With the fact that majority of Thai people do not speak English, it is vital for
- Thai’s loyalty
- Thai’s Old Fashioned Managerial Strategies
Moreover, Thai people do not see the necessity of English as their daily life does not need any English skills. With this attitude, Thai people would continue to put very little effort into English as they do not understand its importance. As a result of the language barrier, most Thai employees have a very low level of English and are unlikely to gain cross-cultural knowledge from their foreign co-workers.
Cross-cultural leadership would allow foreign managers to fully understand their subordinates from both the aspects of intrinsic and extrinsic values. Stamford University - Thailand, the most notable causes of failures in cross-cultural business are from the incompetence of foreigners or foreign managers, especially in the situation where they are unable to handle internal communication, behavior of their subordinates and cultural differences. The main focus of this research is to reveal potential challenges of cross-cultural management with foreign managers and Thai employees to understand the reasons behind these misunderstanding situations.
Further guidelines for foreign managers have been shown to create competent competitive advantages, avoid the disadvantages of cultural challenges and provide practical solutions from different management approaches. High expectations and competence in leading subordinates are fundamental characteristics of leaders from the perspective of Thai employees. When someone in society has the feeling of being a member of a group, the highest involvement for that specific group must be assured.
Although gaining the loyalty and trust of local Thai employees is a very difficult feat for expatriates or foreign managers working in Thailand, it is one of the most essential steps to successfully run a business in Thai society. Thai people are very loyal to their leader, as in the same way as a supervisor and subordinates. Most Thai companies, businesses or departments are run in the old fashioned management style called "family business".
Referring to the old-fashioned Thai management style, Thai employees under the supervision of a Thai manager are simply followers. Chorkaew, S., NIDA Development Journal, asserted that self-promotion is not highly valued in Thai organizational culture which means that a number of Thai employees do not understand the importance of self-esteem and rarely propose new ideas (2014). It is not the case that Thai employees have never worried about their companies, but it is permission that is rarely given.
RESEARCH METHODOLOGY
Population and Sampling
The Thai company was acquired and became one of their most important branches in Asia.
Data Collection & Sample Interview Questions
Without the local information of the previous team, the branch struggled for years and is now regaining its position in the market. The above lists of questions are only some examples of questions from the questionnaire, more detailed questions are also on the lists and available in the appendix. The reasons why the questions are organized based on different management theories is to collect the most practical instructions with practical results for possible guidance for foreign managers working in Thailand.
As they are divided into different theories, it clearly demonstrates all research findings and contributes to the realistic expectations of Thai employees.
Data Analysis
FINDINGS ANALYSIS
- Demographic Profiles of Respondents
- Research Findings
- Hofstede’s cultural dimension
- Leadership Theories
- Bases of Power
- Power Tactics
- Discussion of Effective Management Approaches
- Communication Challenges
- Productivity and monitoring processes
- Challenges of language barrier
- Guidelines of Practical Implementation
They often think differently and don't always listen to their Thai employees. Meanwhile, foreign managers in Italian company perceived Thai employees in the middle of R1 and R2, which are "Unable-Unwilling" and "Unable-Willing". The minimum level of human development is one of the major concerns for Thai employees in this Italian company.
In contrast, there is a New Year celebration only for Thai employees in Italian company. As a result, Thai employees in both companies may see differences in position and admire their leaders. Foreign managers here ensure that all Thai employees clearly understand the various assigned tasks by asking questions for feedback after their detailed explanations.
On the other hand, along with a big language barrier, Thai employees in Italian company rarely get direct explanation from their foreign managers. However, Thai employees in American companies tend to believe more as they fully understand the English of their foreign managers and admire their status. For Thai employees in Italian company, they receive almost no information from their foreign managers.
Connection power: Closer relationships are more prevalent in the American company as foreign managers and Thai employees work together for most of the time. Thai employees like to work with their managers and listen more to their suggestions. Rewards are prioritized and offered first to Thai employees in US company before any new assignments start.
The method improves internal operations incredibly and sufficiently increases the contribution of Thai employees in American company. Referring to the research result, it is quite true that Thai employees prefer to have close relationship with their foreign managers to be open to all problems. Friendliness is another crucial characteristic of foreign managers in order to win the trust of Thai employees.
Referring to the high score for Power Distance in the statistics above, Thai employees place a high value on hierarchical status. Negotiating and offering extra rewards will help foreign managers gain extra contribution and security from their local Thai employees.
RESEARCH LIMITATIONS AND RECOMMENDATIONS
Limitations and Recommendation For Research Development The most obvious limitation in this research was to get real perspective and
Practical Management Guidelines In Thai Organizations
- Building relationships
- Rewarding technique
- Learning Thai language
Additional benefits of these actions are more trust from Thai employees and work flow improvement as these actions provide win-win situations.