Management Practices in The United States of America, Japan, China, Germany, and Bangladesh
Management Practices in The United States of America, Japan, China, Germany, and Bangladesh
Management Practices in The United States of America, Japan, China, Germany, and Bangladesh
There is an abundance of literature on both U.S. and Japanese management; one such
book even made the best- seller list. But the literature on Chinese management is very
sparse. Since Japan and the United States present contrasting managerial approaches,
Chinese managers probably could adopt aspects from either approach. But which
country uses managerial practices that would be appropriate for making Chinese
businesses more effective and efficient? The first step should be to identify Chinese
managerial practices and to analyze whether they are closer to the U.S. or the Japanese
model. Then they should be compared and contrasted with current practices used by
large, state-owned businesses in China.
To understand what management is, we have to ask "What do managers really do?"
One of the most widely used frameworks for structuring managerial knowledge is to
take the managerial process and divide it, as a first order classification, into the
functions of planning, organizing, staffing, leading, and controlling. Key managerial
activities are then grouped within these functions. We will first discuss these functions
and then point out the differences of managing in the United States and Japan.
The managerial functions will serve as a framework for comparing and contrasting the
managerial approaches in these five countries. At the outset, a word of caution is in
order. It is obvious that not all companies are managed the same way as discussed here.
We must also realize that very few empirical studies exist, especially for Chinese
management, and that most of the available literature is descriptive. Many writers point
out the differences in the managerial practices in Japan and the United States, or in the
West in general. But others report that, for example, no differences have been found in
participation in the decision making process or in job satisfaction in Japan and
elsewhere. Therefore, the contrasting managerial approaches are suggestive.
Controlling
Planning
Leading
Organizing
Staffing
Planning
Planning means looking ahead and chalking out future courses of action to be followed.
It is a preparatory step. It is a systematic activity which determines when, how and who
is going to perform a specific job. Planning is a detailed programme regarding future
courses of action. It is rightly said Well plan is half done. Therefore planning takes
into consideration available & prospective human and physical resources of the
organization so as to get effective co-ordination, contribution & perfect adjustment. It is
the basic management function which includes formulation of one or more detailed
plans to achieve optimum balance of needs or demands with the available resources.
According to Koontz & ODonell, Planning is deciding in advance what to do, how to
do and who is to do it. Planning bridges the gap between where we are to, where we
want to go. It makes possible things to occur which would not otherwise occur.
Organizing
Organizing is the function of management which follows planning. It is a function in
which the synchronization and combination of human, physical and financial resources
takes place. All the three resources are important to get results. Therefore,
organizational function helps in achievement of results which in fact is important for
the functioning of a concern. According to Chester Barnard, Organizing is a function
by which the concern is able to define the role positions, the jobs related and the coordination between authority and responsibility. Hence, a manager always has to
organize in order to get results.
1. Identification of activities:
All the activities which have to be performed in a concern have to be identified first. For
example, preparation of accounts, making sales, record keeping, quality control,
inventory control, etc. All these activities have to be grouped and classified into units.
Staffing
5. Staffing helps in placing right men at the right job. It can be done effectively through
proper recruitment procedures and then finally selecting the most suitable candidate as
per the job requirements.
6. Staffing is performed by all managers depending upon the nature of business, size
of the company, qualifications and skills of managers etc. In small companies, the top
management generally performs this function. In medium and small scale enterprise, it
is performed especially by the personnel department of that concern.
Leading
Leading is said to be a process in which the managers instruct, guide and oversee the
performance of the workers to achieve predetermined goals. Leading is said to be the
heart of management process. Planning, organizing, and staffing have got no
importance if direction function does not take place.
Leading initiates action and it is from here actual work starts. Leading is said to be
consisting of human factors. In simple words, it can be described as providing guidance
to workers is doing work. In field of management, direction is said to be all those
activities which are designed to encourage the subordinates to work effectively and
efficiently.
According to Human, Leading consists of process or technique by which instruction
can be issued and operations can be carried out as originally planned Therefore,
Leading is the function of guiding, inspiring, overseeing and instructing people
towards accomplishment of organizational goals.
Direction has got following characteristics:
1. Pervasive Function - Leading is required at all levels of organization. Every
manager provides guidance and inspiration to his subordinates.
2. Continuous Activity - Leading is a continuous activity as it continuous
throughout the life of organization.
3. Human Factor - Leading function is related to subordinates and therefore it is
related to human factor. Since human factor is complex and behaviour is
unpredictable, direction function becomes important.
Controlling
Following are the characteristics of controlling function of management1. Controlling is an end function- A function which comes once the performances
are made in confirmities with plans.
2. Controlling is a pervasive function- which means it is performed by managers
at all levels and in all type of concerns.
3. Controlling is forward looking- because effective control is not possible without
past being controlled. Controlling always look to future so that follow-up can be
made whenever required.
4. Controlling is a dynamic process- since controlling requires taking reviewal
methods, changes have to be made wherever possible.
5. Controlling is related with planning- Planning and Controlling are two
inseperable functions of management. Without planning, controlling is a
meaningless exercise and without controlling, planning is useless. Planning
presupposes controlling and controlling succeeds planning.
In U.S. organizations, decisions are made primarily by people and usually only a few
people are involved. Consequently, after the decision has been made, it has to be sold to
others, often to people with different values and different perceptions of what the
problem really is and how it should be solved. In this way, the decision- making is
rather fast, but its implementation is very time-consuming and requires compromises
with those managers holding different viewpoints. The decision that is eventually
implemented may be less than ideal because of the compromises necessary to appease
those with divergent opinions. It is true that decision responsibility can be traced to
people, but at the same time, this may result in a practice of finding "scapegoats" for
wrong decisions. In all, the decision power and the responsibility is vested in certain
people in U.S. companies, while in Japan people share both decision power as well as
responsibility.
2) Individual decision-making:
In U.S. organizations, decisions are made primarily by people and usually only a few
people are involved, are made based on each individual in each department. So that, it
can implemented easily and time consuming can be applied smoothly.
Organizing in USA_
1)
2)
3)
4)
People hired out of schools and from other companies; frequent company changes,
Rapid advancement highly desired and demanded,
Loyalty to the profession,
Frequent performance evaluation for new employees,
Appraisal of short-term results,
Promotions based primarily on individual performance,
Training and development undertaken with hesitation (employee may go to another firm),
Job insecurity prevails.
The management of human resources in the United States is quite different from the
same practice in other countries. U.S. companies recruit employees from schools, but
they also hire from other companies.
Control by superior
Control focus on individual performance
Fix blame
Limited use of quality control circles
Control in the United States often means measuring performance against precise
standards. Management by objectives, widely practiced in this country, requires the
setting of verifiable objectives against which individual performance is measured. This
way the superior can trace deviations to specific people and this frequently results in
fixing the blame. In an attempt to maximize individual results, group performance may
suffer. We all can think of examples in which the self-interest of people was placed
before group or organizational interest. The use of quality control programs is not new.
Hughes Aircraft, for example, had such programs for a long time under the names of
"zero defects" and "value engineering." Many of these programs were developed in this
country and later used by the Japanese in the improvement of their product quality and
productivity.
Planning
Controlling
Leading
Organizing
Staffing
Planning in Japan
In Japan, planning is greatly aided by cooperation between government and business.
After World War II, Japan developed policies for economic growth and strength as well
as international competitiveness. These policies harmonized monetary and fiscal
policies within the industrial structure. In this kind of relative economic predictability,
environment planning is less risky. Planning is choosing the purpose and objectives of
the organization as a whole or a part of it and selecting the means to achieve those ends.
It requires making decisions.
Planning in Japan_
1.
2.
3.
4.
5.
Long-term orientation,
Collective decision-making (ring) with consensus,
Involvement of many people in preparing and making the decision,
Decision flow from bottom-to-top and back,
Slow decision-making; fast implementation of the decision.
1. Long-term orientation:
The Japanese, in general, have a longer-term orientation in planning than U.S.
managers. One reason for this is that in Japan banks are the primary providers of capital
and their interest is the long-term health of the businesses.
In Japanese companies, largely due to the search for consensus in decision-making, the
emphasis is on collective responsibility and accountability. Individual responsibilities,
then, are implied rather than explicitly defined. Although this may discourage placing
the blame for an incorrect decision on people, it also can create a great deal of
uncertainty. In fact, the organization structure is rather ambiguous and the de-emphasis
on formal authority promotes informality and egalitarianism. Another characteristic
found in Japanese companies is a common organizational culture and philosophy that
places a high value on unity and harmony within the organization. At the same time,
there is a competitive spirit toward other businesses. Organizational change is
accomplished by changing processes, with the aim of maintaining harmony among
those affected. Also, the change agent (OD consultant) is virtually always an employee
of the company.
Organizing in Japan
and
philosophy;
Staffing in Japan:
Staffing requires identifying human resource needs and filling the organization
structure-and keeping it filled- with competent people. It is in the management of
human resources, in addition to the decision-making process.
1)
2)
3)
4)
Young people hired out of school; hardly any mobility of people among companies,
Slow promotion through the ranks,
Loyalty to the company,
Very infrequent formal performance evaluations for new (young) employees,
1) Young people hired out of school; hardly any mobility of people among
companies:
In Japan, people are hired out of school. For a young man, choosing a place to work is
one of the most important decisions he makes after selecting a spouse and a university.
employees:
After joining a company, performance is very infrequently evaluated. In fact, it may
take ten years before a formal performance evaluation is made. This does not mean that
the progress is not monitored, but it is monitored on an informal basis. Working
together with others in an office, without walls separating employees and superiors,
leaves little doubt how well people perform.
Leading in Japan
How Japanese leading their people in their organization these are given as under_
1.
2.
3.
4.
5.
2. Paternalistic style:
Using a paternalistic leadership approach, managers show great concern for the welfare
of their subordinates.
5. Bottom-up communication:
Communication patterns parallel decision-making, with an emphasis on bottomup
communication. In one study it was found that in Japanese companies communication
was initiated much more often at lower levels than in U.S. companies. This
communication pattern is also promoted by Japanese managers, who take a great deal
of time communicating with their subordinates. This puts the emphasis on face-to-face
contact rather than memos.
Controlling in Japan
The Managerial function controlling in Japanese organization are as under_
1)
2)
3)
4)
Control by peers,
Control focus on group performance,
Saving face,
Extensive use of quality control circles.
1) Control by peers:
In the view of Western managers, controlling involves setting standards, measuring
performance, and correcting undesirable deviations. To the Japanese, this process is less
direct. The group, its dynamics, and its pressures have a profound impact on the
managerial process. In an office without dividing walls, peers are well aware of the
performance of their colleagues.
3) Saving face:
The Japanese approach of letting subordinates "save face" would be incongruent with
fixing the blame for deviations from plans on people.
Planning
Controlling
Leading
Organizing
Staffing
Planning in China
The nature of Planning in Chinese organizations are given below_
1.
2.
3.
4.
5.
Long-term and short-term orientation (5- year plan and annual plan),
Decision-making by committees. At the top often individual,
Top-down-participation at lower levels,
Top-down-initiated at the top,
Slow decision-making / slow implementation. (Now changing).
1. Long-term and short-term orientation (5- year plan and annual plan):
In China, the situation is quite different. Most of the businesses are state-owned, and it
is only more recently that some private companies have come into existence. In our
comparison, however, we focus only on the former. In these businesses, both long- and
short-term plans are prepared. The five year plan is prepared.
The five year plan is prepared at the top. The State Planning Commission is the
authority to prepare the 5 year plan.
Organizing in China
1)
2)
3)
4)
people, are expected to achieve the yearly plan, on lower levels the notion of a vague
collective responsibility prevails.
Staffing in China
Staffing requires identifying human resource needs and filling the organization
structure-and keeping it filled- with competent people. It is in the management of
human resources, in addition to the decision-making process. The nature of Chinese
organizations staffing procedures are given as under_
1.
2.
3.
4.
5.
6.
6. Promotions:
Promotions are supposed to be based primarily on performance, education, and
potential ability. However, family ties and good relations with the superior greatly
influence advancement within an organization.
Leading in China
1) Leader as the head of the group (committees),
2) Directive. Parent-child relations (in TA terms),
3) Common values. Emphasis on harmony,
4) Avoidance of confrontation,
5) Communication top-down.
4) Avoidance of confrontation:
Like the situation in Japan, leading is aided by common values and an emphasis on
harmony, rather than confrontation.
5) Communication top-down:
On the other hand, communication is primarily top-down, as with many U.S.
corporations.
Controlling in China
1.
2.
3.
4.
In China, control is exercised primarily by group leaders. The control focus is on the
group.
Management, once considered a U.S. challenge to Europeans has become, in the minds
of many, Japanese challenge to managers in the United States. Whether the perception
of the superiority of Japanese management practices is correct-and there is some doubtremains to be seen. In the meantime, many Chinese managers are at the threshold of a
managerial revolution in which more government-owned organizations gain greater
autonomy. Selectively, competition is encouraged and incentives for private initiatives
are promoted. There is an increasing market orientation, and decision power for
meeting customer needs is decentralized (there have been even some highly publicized
bankruptcies). To adapt to these and other changes, Chinese managers look at both
Japanese and United States managerial practices and compare them with their past
experiences. Some may be transferable, but others are not. The environment, especially
socio-cultural factors, does influence practice, but its impact may have been overstated.
Controlling
Planning
Leading
Organizing
Staffing
Planning in Bangladesh
Planning is the thinking process, the organized foresight, the vision based on fact and
experience that is required for intellectual action.
Planning features in Bangladesh are given below_
1)
2)
3)
4)
5)
Long-term orientation,
Individual decision-making,
Decision initiated only at the top,
Fast decision making and slow implementation, and
Involvement of few people from top level in making decision.
1. Long-term orientation
Now there are only two types of management in the world, one is Japanese and the
other one is American. Bangladesh follows a mixed concept of these two types of
management. For some work they follow the Japanese and for some work they follow
the American type of management.
Bangladeshi managers follow 5-year plan. They make a 5-year plan to improve their
organizational condition. Government also takes 5-year plan. Sometimes these plans do
not come true when Government changes; the new Government takes new plans.
Private organizations are free from this problem; they take their own plans as they
want. When they need they can take short term plan what can make good to their
organization.
We talked to some business executives to know more about this mater. They say some
facts about their planning terms. One of them says that they take decision for long time
as well as for short time, but they would like decision for long time for their
organization.
2. Individual decision-making
In case of making decision we see that Japanese Mgt takes decision collectively, U.S.
Mgt takes decision individually and Chinese Mgt takes decision by their committees. In
this case we see that Bangladeshi Mgt also takes decision individually like the U.S.
management.
It is a very common fact that everyone wants to be big in the world. Everyone wants to
express him or her where s/he works. For these reasons some people don't like to talk to
others before taking a decision. This is a common mentality of the executive people of
our country.
The executives have another point that if a group of people sits together to make a
decision then no decision will be made. There happens only some waste of money and
time. This is why the executives want to take decision individually.
Decision can be made by anyone, but everyone can't implement the decision. In
Bangladesh the managerial parsons take decision, but they cant implement all the
decision when they want.
In Bangladesh this problem mainly occurs in Govt. sectors. Here one takes decision very
fast but at the time of implementation no one comes forward to make it happen. So,
here every decision is made very quickly but the implementation of that decision is very
slow.
An individual always takes decision but if there arises any critical problem in the
organization that can't be solved by only one person, then he (Bangladeshi manager)
may call some reasonable and some of the best subordinates for talking about the
problem. Often this can give a good solution to the problem. Because two heads are
better than one. But even after such discussion if an individual takes a decision it is not
sure that decision would be always perfectly alright. Because there may be some
chances of mistakes.
Organizing in Bangladesh
In Bangladesh employees are making informal relationship. The responsibilities are not
divided equally along with equal authority and they are overburdened with their
responsibilities. For this employees are not happy with their position. Employees are
waiting for better opportunities to go away. The organizations are unable to fulfill the
requirements of the employee's need. So the company is losing skilled employees.
Personal connections, family relationships, and seniority are frequently more important
for promotion. Most of the organizations have not well-defined rules and regulations to
maintain discipline. As well as organizations have no organogram. Some specific
features of organizing in Bangladeshi organization are given below_
Individual responsibility and accountability.
Motivational & predicative decision.
Mostly govt. firms use formal bureaucratic organizational structure. But Pvt.
Organizations use informal organizational structure.
Well-known common organization culture.
Staffing in Bangladesh
Staffing requires identifying human resource needs and filling the organization
structure-and keeping it filled- with competent people. It is in the management of
human resources, in addition to the decision-making process. The nature of
Bangladeshi organizations staffing procedures are given as under_
Fixed & long-term Employment (In Govt. organization), But short-term employment in
Pvt. Organizations.
Evaluation and promotion depend on seniority as well as favoritisms.
Holistic concern including family.
It is not common to employ organization development consultants from outside the firm.
Bangladeshi firms have high employee turnover rate because of uncertainty of job.
The leading process of BD is almost similar with that of India at present, new
organization tries to follow U.S. leading style. And the leading approaches are
continuously changing. Leaders of Bangladesh are assigning two tasks at a time to an
employee. Dual subordination and overlapping authority is a conventional
phenomenon of our country. Every employee is working with over burden. Evaluations
and promotions are very slow; big promotions may not come for the first 10 years.
Promotion depends on group lobbying and bossing as well as internal organizational
politics. Leaders are not very motivated to attain the objectives of the organization. They
like face-to-face confrontation. They try to impose all liability for unsuccessful work to
their subordinates and success goes on the individual performance. But in our country
the leader generally adapt an autocratic view in taking decision. In our country the
leaders gives supreme importance to their personal benefit to gratify their own desires
rather than the organization welfare.
Controlling in Bangladesh
No matter how large or small the organization, the problems, decisions, and responses
emerging from one environment have an impact on other environments. As one of the
principal characters in life's unfinished but continuing drama, the manager has the
potential of determining the destiny of our society.
Although there are many managerial difficulties ahead, the future for management is
not only bright but also essential for society. The makeup of management and its
implementation will change considerable, but constant importance directed toward the
best quality of living will prevail. Difficult management problems will be mastered,
achievements beyond our expectations will own, and fundamental questions will be
solved. At long last, managerial techniques and abilities will be available so that human
beings have the opportunity to fulfill their highest destinies.