Through the following essay I intend to explain some relevant aspect that differentiate the role of manager in a less developed country and one in a developed country. There are many differences and factors that might show this difference, but human resources, education and skills are the ones that I consider the most important of all in a more complex and globalise world that has redefined its relations by the way economic factors have reacted.
When it comes to discuss about less-developed countries (LDC)* and its roll and implications in the international context of a globalise world, we can see that compared to countries considered as developed (DC)*1 there are many differences. One of those main differences is the way management and labour conditions vary from one country to another, and within this, the way it contrasts between the so called, developed and less developed countries.
Among those differences and when it comes to organizations, the social aspect in addition with other factors, are very important when discussing about the major management discrepancies between (LDC) and (DC). Countries and the way the world is changing have create that many of the (LDC) have to depend on the powerful and rich countries. “There are few developing countries of sufficient size and resources to be able to undertake fundamental changes, structure their societies, and advance development through exclusively inward-oriented polices and relative or complete isolation from the rest of the world”.
“Most of the Third world countries will find it necessary to take into account their relation (dependence) with the industrialised world”. (Vaitsos, 1975, p. 140). When trying to understand all the complexity of the (LDC), and approaching a discussion under a management perspective and comparing the same point of view with (DC) is what I intend to explain in a briefly and concise way. Western economies have build with Transnational Corporations (TNCs)* and Multinational Enterprises (MNEs)*2 a more dynamic system of producing and selling their products worldwide.
It’s a scheme in which all countries are involved but above all, it’s a neo-liberal strategy in which enterprises and conglomerates are the ones that have shaped the economy in a way in which many times the companies affairs have become of such importance that are considered us national affairs. In addition to all this, companies have noticed that in order to be more competitive and effective they must be in a constant observance of the perfect combination that permits them to be more profitable.
This perfect combination has make them seek around the world the very best conditions in which they can beat their competitors at all time; and in a world where boundaries are reducing very fast and countries are realizing that they also need to be more competitive and attractive to investors, trade and all different forms on economic interaction, have created the perfect niche for (TNC’s) and (MNEs) to start finding different places to locate their operations away from their countries of origin.
The terms acquisition, merge, subcontract, franchise or simply just opening a new branch at different location in a different country, have become common words in today’s economic world. But all this process of going somewhere else and buy a en existing company or merge to become one big company or just starting a new branch on a different location has not been and will never be easy, specially when trying to find the perfect location and combination involves a remote place under the category of a (LDC) and the company comes from a (DC).
As mentioned before in the introduction, there are many factors involved in this type of operations and the differences between (LDC) and (DC) when it comes to understand the whole process of starting a new entrepreneurship have to be consider at all times. Human Resource Management is one of the key aspects that have to be considered and never the less it can be the answer to success or failure.
When looking for a place to start a new operation labour force is one of the most important issues and the (LDC), compared to the (DC), have plenty of it and most important it is low-cost labour. ” Because of this extremely high rates the Third World labour force multiplied 2. 5 times between 1900 and 1970 rising from 270 millions to some 660 millions. In the decades to come, (80’s and 90’s) growth is likely to be even faster. ” (Bairoch, 1967, p 159).
Also it is well known that many of the basic and primarily resources came from third world countries or (LDC), so instead of buying and bringing them to the manufacturer company in a (DC) they go where they can find low cost labour and abundance of resources and produce them there. But that is not enough. Many of these companies (TNC’s) and (MNEs) because of their origin, structure, policies, strategies, organisations, techniques, workers etc. have had to go through may problems to adapt to their new environment in order to be as mentioned before competitive, efficient and above all: profitable.