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  1. 1. Management Practice of Bangladesh Management practice around the globe has a lot diversities because of the presence of different social, economic, political, and legal and tax systems. After independence the industrial enterprises of this country were initially brought under the control of the government. Very soon it was realized that the nationalized sector was not performing as desired because of unsuccessful management practice. Since then the country has been going through denationalization process. And then every type of concepts and theories of different countries has been practicing in our country. But it is very difficult to say which type of management practice should be applicable for our country. The author has attempted to analyses the different types of management practice especially in U.S.A., Japan and China in the context of Bangladeshi management practices on the basis of the basic functions of management. As per the findings, management practice in Bangladesh is not being dominated by any specific country's management practice. The author tries to select and makes suggestions of what types of management practice should be made applicable with respect to socio-cultural or environmental circumstances and other legal and govt. policies. Planning & Decision Making 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. Decision making differs from organization to organization. Organization type is another big factor for decision making. Some prefer short term and some prefers long term planning, but all the executives like long term planning for their own benefit. So, Bangladeshi managers like to take long tram plan 1
  2. 2. PLANNING & DECISION MAKING Long -term orientation (5-years plan) Decision are always made individually Bangladeshi Management In Planning and Decision Making Involvement of few people from top level in making decision Decision initiated at only the top level Fast decision making and slow implementation There is often communicatin with subordinates before making decision Bangladeshi managrs make decisions only for some small issues or non critical issues 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. Bangladesh is using a mixed management system of Japanese and American. In private section the American system is very much popular for its fast working capacity. Govt. sections like the Japanese system and sometimes the American system. When they don't want to do any work they form a committee to make a decision and in the most cases the committee can't take any decision Decision initiated only at the top In American system the top-level management takes decision and the lower level follows that decision. Here every one has his own area of thinking. Top-level thinks how to take an effective decision and lower level thinks how to follow that decision. Bangladeshi 2
  3. 3. follows the American way in this case. Here in Bangladesh the top-level always takes decision and the lower level follows that. This is why decision is initiated only at the toplevel, not from the bottom-top. Fast decision making and slow implementation Decision can be made by anyone, but everyone can't implement the decision. In Bangladesh the managerial parsons take decision, but they can’t 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. Involvement of few people from top level in making decision 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 Individual Responsibility and Acountability responsibilities. For this employees are not Motivational and happy with their position. Employees are predicative decision waiting for better opportunities to go Mostly govt.firms use formal away. The organizations are unable to fulfill bureaucratic organizasional the requirements of the employee's need. structure.But Pvt. Bangladeshi organizations use informal So the company is losing skilled employees. Management organizational structure. Personal connections, family relationships, and seniority are frequently more Well-known common organizational cuture important for promotion. Most of the organizations have not well-defined rules Holistic concern including family and regulations to maintain discipline. As well as organizations have no organogram. Firms have high employee turnover rate becouse of uncertainty of job 3
  4. 4. Leadership Approaches in Bangladesh Leadership research has also been conducted among managers in , developing countries such as India, Peru, Chile and Argentina. Although there will always be important differences between various parts of the world, as countries develop and become more economically advanced, participation leadership styles may become more prevalent. 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. BANGLADESHI LEADING Leader acting as the decision-maker and head of the group. Critical and non-critical communication top down Leaders do care much to make the subordinates work to meet the time schedule or deadline Mostly benevolent autocratic style (parentchild relatons) Promotion is slow and often depends on Group Lobbying Leaders are not very motivated to attain the objectives of organization Divergents values ; groupism sometimes hindering cooperation Responsibility is assigned to individual Face -to-face confrontation Liders give not too more importance to the organizations goalattainment than Interpersonal relationship 4
  5. 5. Controlling in Bangladesh Control by superior Control focuses on individual performance Fixing blame Bangladeshi Management Limited use of quality control circles Chance of partiality Importance is given to the skilled person as well as political persons. Duration of work is not fixed In Bangladesh, primarily group Leaders exercise control. Japanese importance is given to the unskilled person. U.S., China and Bangladeshi managers' importance is given to the skilled person. In Bangladesh control focuses primarily on the group but also on the individual performance. They try to increase the productivity rather than quality. Bangladeshi managers look for maximization of profit. Most of the time, the work forces are not adequate. Skill persons are not treated in a fair way. The enterprise's wage structure does not meet going level of the community. For the unexpected result managers try to find out the human errors. 5
  6. 6. Management thought has always been and probably will continue to be highly dynamic. New theories will emerge and old one will be discarded. Some consolidation among the many present management theories is to be expected. The future may bring a viable integration of presently separate schools of management. Dynamic management thought will continue because a discipline is vital as management - with its involvement in fundamental issues that affect human wants, values and technology- is certain to attract schools and practitioners to contribute to a modern and meaningful theory. In some managerial areas, we predict results from selected actions with an acceptable degree of certainty, but in the other areas, we are still in what can be termed the descriptive stage. That is, we can apply certain managerial knowledge, but we are not positive what specific results will ensure from such action. Once a manager has the symptoms identified, he or she can prescribe exactly what to do, with assurance that the desired results will be forthcoming. 6
  7. 7. Management Practice of America From the beginning of industrial revelation in England, a “System” was introduced in manufacturing and other industries in America. The system relied on machine tools, jigs for guiding the tools and fixture for properly holding the work and gauge blocked for checking the fit of parts. These methods eventually were known as the “American Systems” of manufacturing. Application of the American system was to the sewing machine and reaper industries in the 1880 resulted in substantial increases in productivity. The American system was applied in the manufacturing industry almost from the beginning. Later, in the 1880 and 1890, concept developed during the period was “Scientific Management” or Taylorism developed by Frederick Winslow Taylor and others. Scientific management initially concentrated on reducing the steps taken in performing work such as bricklaying or shovelling by using analysis such as time and motion studies, but the concepts evolved into fields such as industrial engineering manufacturing engineering and business management that helped to completely restructure the operations of factories, and later, entire segments of the economy. Thus scientific management’s application was contingent on a high level of managerial control over employee work practices. This necessitated a higher ratio of managerial workers to labourers than previous management methods. The great difficulty in accurately differentiating any such intelligent, detail-oriented management from mere misguided management also caused interpersonal friction between workers and managers. After that, basically from 1960, most of the American organizations follow McGregor’s XY theory for the purpose of management. At that time, autocratic “Theory X” American managers liked to retain most of their authority. They made decisions on their own and informed the workers, assuming that they will carry out the instructions. Autocratic managers were often called "authoritative" for this reason; they acted as "authorities". This type of manager was highly tasked oriented, placing a great deal of concern towards getting the job done, with little concern for the worker's attitudes towards the manager's decision. This showed that autocratic managers lost ground in the work place, making way for leaders who shared more authority and decision making with other members of the group. On the other hand, who were soft in management practice and belied in workers potentiality, they followed “Theory Y”. In managing the organization who believed in "participative" (Theory Y) leadership style they shared decisions with the group. Also mentioned, were subtypes to this type of leader, namely the "Democratic" leader who allowed the members of the working group to vote on decisions, and the "Consensual" 7
  8. 8. leader who encouraged group discussions and decisions which reflected the "consensus" of the group. But, in late 1960, American business organizations faced global challenges. Almost every day, competitors followed those. Competitors changed their strategies to compete the American organizations. Therefore, fixed strategies for achieving goal were not suitable for the betterment of organizations. That’s why; organizations of America had been following Contingency Theory and it took into account the fact that managers must be flexible and took the approach that best fits the situation. By following, contingency theory of management American companies ensured that the employer got what they were paying for in an employee and eventually results in more wealth for everyone involved. Organizations were open systems that needed careful management to satisfy and balance internal needs and to adapt to environmental circumstances. There was no one best way of organizing. The appropriate form depended on the kind of task or environment one was dealing with. But in the 1970s and 1980s, many United States industries lost market share to international competitors, particularly Japanese companies. Concerns about the competitiveness of U. S. companies led some to examine Japanese management practices for clues to the success enjoyed by many of their industries. This led to many articles and books purporting to explain the success of Japanese companies. It was in this atmosphere that “Theory Z” was introduced into the management lexicon. A Management Comparison between American Organizations and Japanese Organizations “before Theory Z” followed by American Organizations United States Management Planning  Primarily short-term orientation  Individual decision-making  Involvement of a few people in making and  “selling: the decision to people with  divergent values  Decisions are initiated at the top and flow down  Fast decision-making; slow implementation requiring Japanese Management Planning  Long-term orientation  Collective decisionmaking (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 8
  9. 9.    Organizing   Staffing compromise, often resulting in suboptimal decisions Individual responsibility and accountability Clarity and specificity of decision responsibility Formal bureaucratic organizational structure Lack of common organization culture  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)  Leader acts as decisionmaker and head of group  Directive style (strong, firm, determined)  Often divergent values; Leading individualism sometimes hinders cooperation  Face-to-face confrontation common; emphasis on clarity  Communication primarily top-down  Control by superior  Control focus on individual Controlling performance  Fix blame  Limited use of quality control circles Organizing Staffing Leading Controlling  Collective responsibility and accountability  Ambiguity of decision responsibility  Informal organization structure  Well-known common organization culture and philosophy; competitive spirit toward other firms  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  Appraisal of long-term performance  Training and development considered a long-term investment  Leader acting as social facilitator and group member  Paternalistic style  Common values facilitating cooperation  Avoidance of confrontation, sometimes leading to ambiguities; emphasis on harmony  Control by peers  Control focus on group performance  Saving face  Extensive use of quality control circles 9
  10. 10. Theory Z was first identified as a unique management approach by William Ouchi. Ouchi contrasted American types of organizations (Type A) that were rooted in the United States' tradition of individualism with Japanese organizations (Type J) that drew upon the Japanese heritage of collectivism. He argued that an emerging management philosophy, which came to be called Theory Z, would allow organizations to enjoy many of the advantages of both systems. Ironically “Japanese Management" and Theory Z itself are based on Dr. W. Edwards Deming's famous "14 points" (appendix-2). However, Theory Z is a form of management in which workers are involved in the work process on the factory floor. Schedules, division of labor, work assignments, and other aspects of the labor process are given over to workers to do as they see well. Investment policies, wages, fringe benefits and kind of product are not given over to workers to decide; only how best to do that decided by top management. American businesses ultimately have been trying to use "Japanese" approach to improve their competitive position. Today’s the features of management practice of America are as follows … PLANNING The process and function of planning focus on organization purposes and objectives and possible paths to achieve them. Plans themselves can be broad (long term, strategic) or narrow (short-term budgets and operating plans). The planning process can be formal or informal, decentralized or centralized, or continuous or discontinuous. It can be done individually or by groups. It may or may not involve outsiders (e.g., customers, consultants, suppliers). Plans can be put in writing or remain mental maps in the minds of managers (for a comprehensive conceptual overview of the planning process. History shows the following tendencies in large U.S. companies compared with their counterparts. More formalized long-range planning More recourse to external consultants Planning More willingness to accept change Slow decision making Fast implementation 10
  11. 11. ORGANIZING Organizing is concerned with the integration and coordination of resources and effort and the flow of information and authority. It considers what activities to decentralize and whether company structure should focus around business functions (e.g., marketing, finance, manufacturing), or around product group, geographic region, processes, projects, or some hybrid approach (e.g., a matrix). The preferred choice can depend on circumstances (e.g., organization size, strategy, performance, technology, people, and goals). For example, a smaller business, or one with a narrow product line, will normally structure itself around the business functions. But if it grows or diversifies, then changing to a product or geographic area orientation can enhance coordination and integration of operations (see Chandler, 1962; Stop ford &Wells, 1972). External factors (e.g., intensity of competition) can also influence change. High acceptance of change in American culture makes organizational change more welcome than in most cultures. Two organizational tendencies in large U.S. corporations (relative to counterparts abroad) are as follows: More likely to decentralize authority (i.e., to delegate key tasks and decisionmaking authority to subordinates) Organizing More frequent organizational change 11
  12. 12. DIRECTING The managerial function of directing involves guiding, commanding, nudging, exhorting, and inspiring subordinates, colleagues, superiors, and others to higher performance. This requires skills of leadership, communication, and motivation, in turn influenced by culture. Among some general tendencies of U.S. managers and subordinates (relative to many counterparts abroad) are the following: Much directness in interpersonal communication Directing Aversion for authoritarian leaders Motivation mainly from money, ego gratification, and personal challenge (and less from loyalty and personal relationships) 12
  13. 13. CONTROL Managerial control assesses whether organizational objectives are being met and calls for corrective action (or maybe a change in objectives) when needed. Control can be both broad and narrow. Very broadly, enterprise is controlled by its external product, capital, and labor markets. For example, if sales and profits fall (or are expected to fall), company share price and debt rating normally fall, making new funding more costly until performance improves. Boards of directors normally are empowered to control management (e.g., hire, advise, counsel, evaluate, reward, persuade, or remove managers) on behalf of owners, and they do so with varying effectiveness. Internal control systems (e.g., financial controls, budgeting systems, quality control, and supervision) are also part of the control process. Some control tendencies in large U.S. companies (relative to peers abroad) include the following: Broader and more transitory shareholder base that is more inclined to flee (sell their holdings) rather than fight (engage with managers) for change More attuned to shareholder interests relative to other stakeholders More vulnerable to buyout and takeover pressures Controlling More focused on quantifiable performance criteria Shorter-term time orientation More bottom-up appraisal of managers However at the end it is said, after 1980 and till now by analysing the different case studies of management of American organizations it is identified (Heinz Weihrich, (2011), Management Practices in the United States, Japan, and the People's Republic of China) 13
  14. 14. that by following the “Z Theory” now the features of American organization’s management practices are slow decision-making; but fast implementation of the decision, collective decision-making (ring) with consensus, Long-term employment and job security, collective responsibility Implicit, formalized measures collective decisionmaking, slow evaluation and promotion, moderately specialized careers, concern for a total person including their family, informal control with explicit. There has been a stronger tendency in the United States than abroad to decentralize organizations and to effect organizational change (acquisitions, mergers, restructurings, managerial mobility). Leadership, communication, and motivation style conform to the low-context nature of U.S. culture; in general, people prefer no authoritarian leaders; directness and frankness are valued in personal communication, including in performance evaluations; pay, public esteem, and personal challenge are stronger motivators than is loyalty to an employer. 14
  15. 15. Management Practices of Germany Overview of German Management and Practices German management, as it has evolved over the centuries and has established itself since World War II, has a distinct style and culture. Like so many things German, it goes back to the medieval guild and merchant tradition, but it also has a sense of the future and of the long term. The German style of competition is rigorous but not ruinous. Although companies might compete for the same general market, as Daimler-Benz and BMW do, they generally seek market share rather than market domination. Many compete for a specific niche. German companies despise price competition. Instead, they engage in what German managers describe as Leistungswettbewerb, competition on the basis of excellence in their products and services. They compete on a price basis only when it is necessary, as in the sale of bulk materials like chemicals or steel. The German manager concentrates intensely on two objectives: product quality and product service. He wants his company to be the best, and he wants it to have the best products. The manager and his entire team are strongly product oriented, confident that a good product will sell itself. But the manager also places a high premium on customer satisfaction, and Germans are ready to style a product to suit a customer's wishes. The watchwords for most German managers and companies are quality, responsiveness, dedication, and follow-up. Product orientation usually also means production orientation. The business set up in Germany is extremely formal. In order to achieve successful cross cultural management, you must be prepared for a host of regulations, guidelines, and principles covering every aspect of conducting business in Germany. German businesspeople have deep-seated rules and regulations. This is a formal culture that believes time is money. Relationships are clearly defined, which intimates the type of communication and behaviours expected. Some employees in Germany do not feel that they are authorized by station, education, or position to either aspire to leadership or to express themselves freely in management circles. Nevertheless many do, and especially with the influence of intercultural expansion and globalization, organizations are tending to rely more heavily on the wisdom of their people and not just the direction of leadership. 15
  16. 16. The Management Style of a German Manager Subordinates demonstrate their respect of their supervisors and managers by following their directions to the letter. In return, managers provide explicit directions and ensure that their subordinates have the proper materials and understand the appropriate procedures. All work hard within the official working hours. However, neither managers nor subordinates expect to work past normal quitting time. There is often a gulf between managers and their subordinates, although this is less so in newer companies, high tech, or other high growth industries. Managers are expected to give precise directions when assigning tasks so that there is no question what is expected. 01. Approach to Change: Germany’s intercultural competence and readiness for change is low, meaning that social change is difficult to bring about and the idea of it is not received with enthusiasm. The underlying belief is that change may threaten the social fabric. 02. Approach to Time and Priorities: Germany is a controlled-time culture, and adherence to schedules is important and expected. In Germany missing a deadline is a sign of poor management and inefficiency, and will shake people’s confidence. People in controlled-time cultures tend to have their time highly scheduled, and it’s generally a good idea to provide and adhere to performance milestones. Since Germans respect schedules and deadlines, it is not unusual for managers to expect people to work late and even give up weekends in order to meet target deadlines. Effective cross cultural management skill will depend on the individual’s ability to meet deadlines. 03. Decision Making: For effective cross cultural management it is important to remember that in general, subordinates do not expect their managers to seek their concurrence. They are comfortable complying with decisions. Again, this may depend upon the industry, the professional level of the employees concerned, and the corporate culture. Germany is undergoing rapid changes which are impacting business life. 04. Boss or Team Player? Germans like working in teams and collaborate quite well across hierarchical lines. The communication within a team is generally quite collegial, albeit somewhat direct and blunt. Role allocation within the team is generally quite clearly defined and people will take greater responsibility for their specific task than for the group as a whole. 16
  17. 17. Successful cross cultural management will depend on the individual’s ability to harness the talent of the group assembled, and develop any resulting synergies. The leader will be deferred to as the final authority in any decisions that are made, but they do not dominate the discussion or generation of ideas. Praise should be given to the entire group as well as to individuals. 05. Communication and Negotiation Styles: Direct communication is valued and your German counterparts will be quite unabashed in pointing out any deficiencies they may find in your product or business plan. Germans will also be quite comfortable saying "no" directly when necessary, or let you know when they cannot meet your expectations. To gain control of a conversation, a German will interject into what the other party is saying, or speak over the other parties in a louder volume. To avoid any cross cultural miscommunication make sure your printed material is available in both English and German. The Culture of German Management The German manager concentrates intensely on two objectives: product quality and product service. He wants his company to be the best, and he wants it to have the best products. The manager and his entire team are strongly product oriented, confident that a good product will sell itself. But the manager also places a high premium on customer satisfaction, and Germans are ready to style a product to suit a customer's wishes. The watchwords for most German managers and companies are quality, responsiveness, dedication, and follow-up. Product orientation usually also means production orientation. The business set up in Germany is extremely formal. In order to achieve successful cross cultural management, you must be prepared for a host of regulations, guidelines, and principles covering every aspect of conducting business in Germany. German businesspeople have deep-seated rules and regulations. This is a formal culture that believes time is money. Relationships are clearly defined, which intimates the type of communication and behaviours expected. Some employees in Germany do not feel that they are authorized by station, education, or position to either aspire to leadership or to express themselves freely in management circles. Nevertheless many do, and especially with the influence of intercultural expansion and globalization, organizations are tending to rely more heavily on the wisdom of their people and not just the direction of leadership. However, there is a strong emphasis on efficiency, people tend to use their working time to be highly productive and there is little or no time spent socializing or chatting. The exception to this is during break periods, which are usually 15 minutes, with 45 minutes for lunch. 17
  18. 18. Management culture in Germany is usually highly hierarchical. Germans like to work on well-thought-out plans and make factually-based decisions. Orderly and well scheduled meetings form a large part of what tends to be a consensual, group approach to decisionmaking. Punctuality is expected and lateness is not tolerated, so be careful, especially if you're from a country where this is endemic! 01. Salaries: Salaries in Germany are among the highest in the world. Most jobs for graduates start from €30,000/year. Student jobs or unqualified work is generally paid around €6-15/hour. Salaries are usually talked about gross, i.e. before deductions for tax and social security. Be aware that taxes, depending on your salary, can be more than 50% of your gross salary, so don't get gross and net figures confused! Salary is stated monthly in your employment contract, which should also detail special benefits, bonuses and salary reviews. Many employers pay 13 monthly payments a year, which is normally paid out in December for Christmas or split between summer and Christmas. In some management positions, you might even get a 14th salary. It's difficult to get exact salary data for specific jobs or positions, which can be useful for negotiating salaries. Personal market offers you a salary analysis for a fee that takes into account sector, education, work experience and the geographical region. This might be helpful for negotiating your future salary. 02. Labour law: To enter employment, you need a work permit (Arbeitsgenehmigung or Arbeitser laubnis) or a residency permit that allows you to work. You also require a tax card (Lohnsteuerkarte) and a social security number (Sozialv ersicherung summer). Tax cards are issued by the city/regional authority where you are registered as living. Social security numbers are issued by pension insurance institutions. When an employee first enters employment, the employer generally makes their registration for them and provides a social security number and identity card. Queries should be directed to your employer, your health insurance company or your state insurance institution. 03. Labor regulations: Germany has one of the most highly regulated labor markets in the world, with its Labor law designed to protect employees. Whether or not an employment contract exists, all employees have basic rights to:  holidays  sick pay 18
  19. 19.  chose to work part-time  receive training  receive maternity/paternity leave and related employment protection Periods of notice are also laid down under law, but companies can agree longer periods of notice under individual or collective labour law agreements. Working conditions which do not reach the legal minimum standard are not permitted and are not legally binding. 04. Collective Labor Agreements: There is also a collective labor law which stems from the laws protecting collective labor agreements and the framework for the rights of employees at their place of work (Betriebsverfassungsrecht). The laws governing collective labor agreements allow both partners (trade unions and employers' federations or individual employers) to make their own labor agreements. Labor agreements regulate wages, working hours, holidays and notice periods. Most employees work under a labor agreement, although in recent years more companies have received exemptions in order to negotiate their own agreements. 05. Framework for Employee Rights: The Betriebsverfassungsrecht regulates the relationship between employee and employer in the workplace. Employees are represented by the works council (Betriebsrat) whose members are elected by the workforce. Among other things, it is responsible for protecting employee rights in the workplace. Management must also consult with the Betriebsrat about issues regarding staff or the company. If you have problems in your workplace, you should consult your Betriebsrat for advice and help. In firms with 2,000 or more employees, the 1976 Codetermination or Worker's Participation Law (Mitbestimmungsgesetz) applies. This law requires that the company's supervisory board contains a certain number of employee representatives. The principle of Codetermination means that unions and employees have a say in company policy, as well as sharing responsibility for the firm. 19
  20. 20. Management practices of Japan Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south. The characters that make up Japan's name mean "sun-origin", which is why Japan is sometimes referred to as the "Land of the Rising Sun". Japan is an archipelago of 6,852 islands. The four largest islands are Honshu, Hokkaido, Kyushu, and Shikoku, which together comprise about ninety-seven percent of Japan's land area. A major economic power, Japan has the world's third-largest economy by nominal GDP and the world's fourth-largest economy by purchasing power parity. It is also the world's fourth-largest exporter and fourthlargest importer. Japan Flag Capital National language Ethnic groups Government Legislature Total area Population (2012 estimate) Currency Time zone Calling code ISO 3166 code Tokyo Japanese  98.5% Japanese  0.5% Korean  0.4% Chinese  0.6% other Unitary parliamentary constitutional monarchy National Diet 377,944 km (62nd) 145,925 sq mi 126,659,683 (10th) Yen JST (UTC+9) +81 JP Today, Japan is considered as one of the super-economic powers of the world. As the saying goes that: Rome was not built in a day, Japan was also not built in a day. The process of development started 130 years backs. Japan as it stands today, is due to the efforts of Japanese people who were smart enough to adopt the foreign technology and management philosophy and develop suitable technological and management systems that can be effectively and efficiently applied for the development of the country. 20
  21. 21. 1.0 Special Features: The Special features of Japanese management practices can be broadly classified into two areas. Such as:  People-oriented, and  Work-oriented. Peopleoriented Workoriented Figure 1: Special features of Japanese management practices. The Japanese style of People-oriented management practices mainly focus on personnel and human resources management aspects like the life-time employment, the seniority system and the groupies whereas the work oriented management practices manly focus on production and engineering functions which include, the just-in-time production system, the subcontracting and the Quality control. These specific features of Japanese style of management have been developed as a result of the socio-cultural characteristics of Japanese society, which has largely contributed to the built –up competitiveness of the Japanese companies leading to make Japan a super-economic power in the world. 1.1 The personnel and human resources management practices: The personnel and human resources management practices of Japanese companies are mainly oriented towards people and their development. There are some specific characteristics, which are not found in the traditional western management system. Some of these distinct characteristics are the life-time employment, seniority based promotion and wage system and groups. a) Lifetime Employment: The lifetime employment system involves hiring people who have just graduated a high rate of stability among employees and guaranteeing work until the mandatory retirement age. The system is oriented towards human relations, human development and training guaranteed employment, equality, participation and welfare. Thus, in a Japanese company, employees are "born", and develop in terms of work. 21
  22. 22. b) Seniority based promotion and wage system: The promotion from lower level to immediate higher level is mostly based on seniority. However, the pace of promotion is very slow though. It does not mean to say that promotion does not take account of performance evaluation and qualification of the employee. Higher weight age is given to senior person, or on the number of years he or she has worked with the company. Wage structure is also based on seniority. c) Groupies: The special cultural quality of Japanese society has a great deal of impact on the Japanese management practices. The typical Japanese ways of thinking –"Uchi" (insider) and "Soto" (outsider) is actually practiced in Japanese management system. The special character of "WE" is very strong in Japanese companies. 1.2 Work/operations or production management practices: The operations or production management practices of Japans companies has some specific characteristics quite different from traditional or western management system. The Japanese production management system attempts to pursue efficiency in connection with work while at the same time, shows due considerations for human factors in the company. Some of the major distinctions can be found in the just-in-time production system, subcontracting and quality control. a) Just-In-Time (The Production) System: Producing and dispatching the products just-in-time is the main objective of employing JIT. This contains many other areas of improvement like low cost of production, low inventory cost, low investment for warehouses, immediate checking of abnormalities, high valueadded per person, better quality and improved productivity. b) Subcontracting: Large companies, particularly in manufacturing sector, rely heavily on a regular subcontracting system. To secure punctual and regular supply of quality parts and semi finished products from subcontractors at various levels, large companies provide smaller ones with technical, managerial and financial assistance in various forms. This way, the large and small companies need not compete and contract for every supply and purchase. Mutual trust is the basis of their long-term transactions. c) Quality Control: The Japanese production management now cannot work without considering the concept of quality or customers in a broader sense. Now-a-days, the Japanese style of management is also referred to as Management by Quality. This does not mean controlling the quality but rather managing the company with the "Quality First" concept. Japanese management 22
  23. 23. philosophers together with Dr. Juran and Dr. Demming of USA has substantiated that quality and productivity are positively related, and not a contradictory phenomena as traditionally believed. Quality and productivity are also defined in a broader perspective encompassing customer's interest. The productivity (quality) is:     Production or service capacity of the organization. Quality specification of the product or service. Cost of Production products or service. Delivery time of products or service. To continuously improve the Production Capacity, Quality of Goods and Services, Cost of Operation, Delivery timing factors of productivity and quality, an organization gives special priority to the safety and Morale of the people working in the organization. Beside, all employees from top-management to workers concentrate on improving these six fundamentals of quality management to improve productivity and ensure sustainable future growth of the company. 2.0 Japanese management practices: The management practices of Japanese companies exhibit a number of distinctive characteristics. Some of the major areas where we can find distinction are, ownership structure, corporate structure, company strategy, Total quality management (TQM), decision-making system and communication, given below: 2.1 Ownership Structure: The vast majority of typical Japanese companies are not family-owned. Some of these exceptions are Toyota Motor Corporation, Oobayashi Corporation, Taisho Pharmaceuticals Co, Santory Ltd, and a few others. The owners are mainly financial institutions and companies that are affiliated to the same business group. The relationship among the group member institutions are mutual assistance and stockholding, interlocking directors, human resource development, joint R & D, independent members, no holding company, regular meetings. 2.2 Corporate Structure: The top-management in Japanese companies has an extremely closed structure. Although two or three directors may be invited to join the company from outside, in most cases, directors are appointed from within the company's former management level-staff. Moreover, employees are not considered to be consumable physical resources, but as important corporate members in the corporate structure. A Japanese company is fully participatory and not authoritative. The following figure shows the typical roles at different level in a Japanese company: 23
  24. 24. Keiei Directors Kanri Administration Ippan Shain Rank & File Figure 2: Different levels in a Japanese company. Roles at Different Levels: i. Keiei: ii.  Determination of corporate policy.  Full support for managers and workers.  External relations for favorable operations. Kanri: iii.  General planning and friendly supervision.  Facilitation pleasant work atmosphere.  Assistance for non-supervisory employees.  Development of self and subordinates.  Positive evaluation of employee performance.  Cooperation with other departments. Ippan Shain:      On the spot planning and reporting. Facilitating workplace meetings. Leadership by good examples. Continuous improvement- technical and human. Cooperation for productivity, quality, human relations. 2.3 Company Strategy: The distinctive characteristics of the strategies that most of the Japanese companies adopt as management practices:       Investment in equipment and human resources development for long-term profit. Quality or customer oriented decision. Bottom-up problem solving rather than top-down command. Continuously improving products rather than developing innovative new products. Improving market share for long term profit. Providing importance to process rather than results. 24
  25. 25. 2.4 Total Quality management (TQM): The Japanese management philosophy, system and practices, all focusing mainly on people and work is also termed as "Total Quality Management". The common goal of TQM is to produce and serve the quality the customers need in a most economic manner. To achieve this goal, common approaches adopted in TQM are:     Policy deployment (PDCA cycle). Small group activities (QC circle). Systematic problem solving (QC story). Statistical methods (7 QC tools). We can consider Total Quality Management (TQM) as an umbrella under which many components of Japanese management practices work simultaneously for improvement of productivity and quality. 2.5 The "Ringi System and Decision Making: Japanese companies employ a method of group-oriented and participatory decision making called: “Ringi" system. This system helps in quick implementation of policies because the basic approval and the opining of persons concerned have already been taken during the process of "Ringi" decision making system. 2.6 Communication: Some distinctive characteristics regarding communication methods within most of the Japanese companies are as follows:  Regular morning meeting of top, middle level managers and other employees.  Open working office area where all level of employees work together with managers. The layout is very conducive for good communication among employees.  Regular management-labor discussions on productivity and gain sharing.  "Nemabashi" or leaking information unofficially to those concerned with or taking part I the decision on some matters and influencing them to think in a certain way before the decision is made.  High volume of information flow as a prerequisite for communication. 25
  26. 26. 3.0 Summing up: The Japanese management practices can be understood better by comparing it with the Western or traditional management practices. (Western) Traditional management practices 1. Capitalism * Maximization Profit * Growing company 2. Shareholders' satisfaction 3. Office priority 4. System oriented 5. Innovation approach 6. Top-down method 7. Theory by specialist 8. Result oriented 9. Sophisticated technology 10. Optimization Japanese management practices 1. Companyism * Increasing value-added * Growing with company 2. Customers' satisfaction 3. Shoofloor priority 4. Human oriented 5. Kaizen approach 6. Top down+ Bottom up 7. Practice by all people 8. Process oriented 9. Simple technology 10. Continuous challenge So we can say that Japanese offers interesting insights into management practices. Successful Japanese companies also provide hints into future management trends in Japan & demonstrate that they can make necessary changes to deal with a changing economic environment. 26
  27. 27. An overview of Chine China is one of the biggest countries in the world. It has an area of about 9.6 million square kilometres which comprises about 6.5 per cent of the world total land area. Its population of more than one billion accounts for 23 per cent of the world's population. China is the world's oldest continuous civilization. World Travel Organization predicts that by year 2020, China will become the number one travel destination in the world. China, officially the People's Republic of China, is a sovereign state located in East Asia. It is the world's most populous country, with a population of over 1.35 billion. Capital: Beijing Population: 1.40 billion Currency: Renminbi Government: Communist state, Socialist state, Single-party state Official language: Standard Mandarin Management practice of Chine China's recent and impressive economic gains have captured the attention of the world. With the world's fastest growing economy and largest population, China is poised to change the landscape of global business. China has become the fourth largest economy in the world in a very short time. This economic gain is driven in part by an impressive expansion of China's manufacturing base and export abilities; both of which are expected to continue to increase in the coming years and to outperform its large competitor, India (Black 2007; Wu 2007; Lee, Rao, and Shephers 2007). With China's economic growth comes an increased need to better understand the strategic thinking of the Chinese. The last few years have seen an increased interest in understanding the business and managerial practices of the Chinese (Quer, Claver & Rienda 2007). In the hope of either capitalizing on China's growth, or being able to defend against its economic threat, many in the West and beyond have taken a much greater interest in China. One area of particular interest is a better understanding of Chinese culture and management system. 27
  28. 28. Some of the more common characteristics of Chinese management and organization are: centralized control, collectivism, harmony, authoritarian and paternalistic leadership, flexible strategies, family-staffed businesses, and strong organizational networks and business connections. These characteristics are practiced both in China and overseas by the Chinese Diaspora. All of these practices can be traced to important historical figures and schools of thought beginning with the very early rules and philosophers of China. 1.0 Management Development in China The dramatic changes in the Chinese economy have greatly affected the role of the manager in Chinese society. The managers’ role is changing from a concentration mainly on people-handlers towards the need for awareness of the market, financial management and thinking strategically to encourage competition and deal with joint ventures (Chen, 1988). Consequently, such changes have raised questions about Chinese managers’ abilities to deal with competition, uncertainty, unpredictability and increased autonomy. The localization of the management group in the foreign-invested ventures, due to the cost reasons, puts strong demands on the general management development of local managers and professionals (Bjorkman and Lu, 1997). Management in modern day China is argued to be characterized as an exact science with a clear and definable knowledge base, with a set of quantitative and operational methods with universal applicability linked to specialized functional skills (Borgonjon and Vanhonacker, 1992; Qiu et al., 1989). This is supported by the evidence of a knowledgebased curriculum for trainee managers where a great deal of emphasis is placed on the traditional numbers-oriented (hard) subjects and far less time is spent on people-oriented (soft) subjects (Bjorkman and Lu, 1997; Warner, 1995). Underpinning this approach are three issues - professional background, tradition and ideology - all combining to dictate this distinctly Chinese interpretation of the theory and practice of management. Management development within the traditional educational system is described as: supporting the more didactic, teacher-centred teaching methods (Boisot, 1987); a concentration on theory rather than on practice with little contact with the wider industrial community; and a dearth of well trained and well qualified management trainers (World Bank, 1985). China’s successful development as a major economic power can only be achieved with the aid of highly skilled, professionally trained management (World Bank, 1985; Fischer, 1990). In China the management training function is not only aligned to economic structure and development but also to political and ideological beliefs. Since management development is perceived as an important means of enhancing managerial competence and improving competitive advantage (Benson, 1996; Gregory and Wales, 1996; Osbaldeston and Barham, 1992), international companies involved in joint ventures need to be aware of the crosscultural implications in the design and implementation of management training programmes for Chinese managers and its integration into the strategic human resource system. 28
  29. 29. Management has five major functions which are apply almost all countries organizations. There are five managerial functions which applied in the Chinese management: 1. Planning • 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) 2. Organizing • Collective and individual responsibility • Attempts to introduce the “factory responsibility system” • Formal bureaucratic organization structure • Identification with the company but no competitive spirit 3. Staffing • Most hired from school, fewer from other companies • Slow promotion, but regular salary increase • Lack of loyalty to both company and profession • 5-year plan, otherwise short-term targets • Promotions are supposed to be based on performance, potential ability, and education. But family ties and good relations with top managers are important • Training programs available. State exam administered for managers 4. Leading • Leader as the head of the group (committees) • Directive. Parent-child relations (in TA terms) • Common values. Emphasis on harmony • Avoidance of confrontation 29
  30. 30. 5. Controlling • Control by group leader (superior) • Primary control by groups-but also by individuals • Try to save face • Limited use of quality control Now broadly describe all these five major functions which are successfully implemented in the china managerial practice system of any organization. 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 these businesses, both long- and short-term plans are prepared. The five year plan is prepared at the top (the State Planning Commission) while more detailed plans are made at lower levels. The orientation is to meet objectives and achieve the assigned plan, rather than to be successful in the market. There is also the difficulty of integrating organizational and personal goals because the achievement of organizational objectives has little bearing on individual benefits. Organizing involves setting up a structure to coordinate human efforts so that people can contribute effectively and efficiently to the aims of the business. This requires determining roles, responsibilities, and accountability. In China, major decisions are made by people at the top, but many people are involved in operational decisions. Lower-level managers have very little authority to make decisions. Decision-making through the central planning bureau is under the direct control of the state. This, unfortunately, results in a lack of flexibility in the implementation of the decisions. Although there is a realization of the need to change, managers in the upper echelons of the hierarchy resist reforms because it would mean giving up some of their privileges they have as officials. Chinese managerial practices are very much influenced by the fact that the businesses are owned by the state and guided by government officials. This results in a bureaucratic organization structure that does not respond well to changes in the environment. This may not have been crucial in the past (although it is ineffective) because managers did not have to respond to competition. While factory managers, as people, are expected to achieve the yearly plan, on lower levels the notion of a vague collective responsibility prevails. Within the formal bureaucratic structure the relationships among people are rather informal. Recently, attempts have been made through the "factory responsibility system" to delegate more authority to lower levels. In fact, factories are allowed to make profits, though these profits are specially taxed. Like in Japan, there are strong organizational cultures in Chinese businesses. Research indicates that the degree of identification with the business may vary 30
  31. 31. greatly. Even with a low degree of commitment to the company, this does not result in frequent organizational changes because it is very difficult to change jobs among stateowned organizations. And there is a lack of competitive spirit among Chinese employees. Staffing requires identifying human resource needs and filling the organization structureand keeping it filled-with competent people. It is in the management of human resources, in addition to the decision-making process, where the Japanese and Chinese approach to managing differs greatly from that of the United States. The staffing practices in China have aspects similar to those in Japan. Like in Japan, employees are hired from school. They are expected to stay with the business for a long time. More recently, however, personnel are also hired from other organizations; but people are usually assigned to their positions by higher authorities. As in Japan, employees are promoted slowly through the ranks with regular salary increases. Leading involves the process of influencing people so that they contribute to organizational aims; it is concerned with leadership, motivation, and communication. The managerial function of leading in China has characteristics of Japanese and U.S. practices. The leader is the head of the group (in committees, for example), but the leadership style is generally quite directive. One interviewee described the relationship between the leaders and followers as "parent-child" in transactional analysis terms. In other words, it is expected that the leaders' commands are to be obeyed. Leaders, in turn, are responsible to higher authorities for performance and goals, but not for meeting customer needs and demands (but this is slowly changing). In the view of Western managers, controlling involves setting standards, measuring performance, and correcting undesirable deviations. In China, control is exercised primarily by group leaders. The control focus is on the group, but also on the person. Factory managers, for example, are expected to meet their yearly quotas. Thus, Chinese control practices are a mixture of U.S. and Japanese managerial practices. In identifying deviations from standards, there is a tendency to let the persons responsible for poor performance save face (like the Japanese practice). There is some use of quality circles, but it is not a common practice. 31
  32. 32. 2.0 Modern Management Practices in China Globalization has shrunk the whole world into a single small market in the recent years. Technology, products, process and people have become easily accessible throughout the globe. Unlike the olden days each country has started towards contributing the global market thereby improving its own economy. As the saying goes the world highest populated country China has also started shifting its management model from the conventional planned economy to decentralized market economy in the recent years. 2.1 Planned economy Planned economy as the name suggests is a centralized model in the sense depends upon a central managing body, here none other than the central government. For centuries the Chinese Management System has been a centralized system where majority of the organizations are State Owned Enterprises (SEO).State Owned Enterprises as the name suggests belong to or are controlled by the government bodies. 2.2 Market economy Market Economy, on the other hand can be considered as the polar opposite of Planned Economy. In contrast to centralized system, market economy believes in privatization of enterprises for the betterment of the industries as well as individuals of the nation. Market economy is focused towards principles like individual freedom, equal contribution, and division of labour and so on. World players like United States and United Kingdom follow market economy. 2.3 From centralized to decentralized structure But for the initiative of Deng Xiaoping, the former Chairman of the Chinese People’s Political Consultative Conference, China would have never dreamt of something called market economy [Selmer J, 1998]. Yes it is the socialist thinking of Deng that stood as an eye opener to China. A revolution in Chinese Management practices began to take place only after 1978.For his good work Deng is considered even today as the architect of socialist thinking. China from then on has shifted gradually from a centralized management structure to a selfmanaged decentralized structure over the years. Further in 1992 the Chinese government introduced the concept of ‘modern enterprises’ in which it gave the managerial autonomy to organizations thereby decreasing the interference of state government in business affairs. Recent studies have identified remarkable changes in the management practices of Chinese Organizations. 32
  33. 33. 2.4 Independent directors-a revolutionary approach An Independent director is a person who is capable of exercising his control in an organization’s decision making process and while taking those decisions work exclusively for the benefit of an organization and does not give place to conflict of interest. The concept of Independent directors first was introduced in China by the China Securities Regulatory Commission in 1997, which later turned out by a success by exhibiting improved performance of the organizations. 2.5 Need for independent directors in China The corporate management practice introduced the management by Independent directors in China keeping in mind the following reasons. • Protecting minority stockholders • Solve problems brought by shareholders • Protection of company by being looted by its managers • Equal sharing of profit • Promote Foreign Investments • Effective Overall management 2.6 The leadership style Chinese leadership style is more focused towards personal feelings and emotions than that of factors like motivation and recognition. Humanity comes first and then comes business. The major role of a leader is to look after the wellbeing of a team and its members. For example: dispute or misunderstanding among two employees may lead to a situation that one might feel like quitting the job. In Chinese management practice the leader should come forward to resolve the conflict and establish peace among his team members. 2.7 Retention management today The Chinese have and still proving to be the best retention managers since they focus towards collectivism and long term commitment rather than individualism and short term employment. Their employee turnover is less whereas retention period is high [Tang J, 2003]. Seniority is given more importance than the fresh candidates. The Chinese are by nature self-motivated and hardworking individuals. Therefore the organizations do not take extra pain in motivating the employees. On the other hand they reward and recognize the employees based on their commitment towards the organization. 33
  34. 34. Management, 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. 34
  35. 35. References Armen A. Alchien and Harold Demsetz, (2005), Production, Information Costs, and Econoimc Organization The American Economic Review-2011 Nicholas Blooma, Christos Genakosb, Raffaella Sadunc and John Van Reenend, (December 19th 2011), Management practices across firms and countries Heinz Weihrich, (2011), Management Practices in the United States, Japan, and the People's Republic of China - 35
  36. 36. Appendix-1 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. Organizations in the United States emphasize individual responsibility, with efforts to clarify and make explicit who is responsible for what. Job descriptions are perhaps the best evidence of this. Many organizations, especially those operating in a stable environment, have been rather successful in using the formal bureaucratic organization structure. As far as the climate is concerned, not many managers make special efforts to create a commonly shared organization culture. This may indeed be difficult because professionals-managers as well as technical people-often have a closer identification with their profession than with a particular company. In addition, the work force often consists of people with different values derived from diverse heritages. Many U.S. companies have a high employee turnover rate, which is partly due to the great mobility of the people in this country. With a relatively short duration of employment with any one company, the loyalty toward the company is at times rather low. Organizational change is often accomplished by changing goals instead of processes. But organizations using change agents with a behavioral science orientation may focus on interpersonal processes to reduce conflicts and improve performance. In the United States it is quite common to use outside organization development consultants. The management of human resources in the United States is quite different from the same practice in Japan. Like the Japanese, U.S. companies recruit employees from schools, but they also hire from other companies. High turnover rates among recent MBAs are quite notorious. Rapid advancement is expected and, if it is not forthcoming, an employee may change companies. Professionals such as engineers or accountants often identify more with their profession than with their company, and job-hopping is not unusual. A common practice in U.S. companies is to appraise the performance of new employees comparatively soon after they are hired. If performance does not meet the company's expectations, employment may be terminated. But even for those who have been with a company for many years, performance is evaluated at least once a year and in many cases their performance gets reviewed periodically during the year. In general, the focus of performance appraisal is on short-term results and individual contributions to the company aims. Moreover, differentials in pay increases are often based on individual performance. These differences in pay may be substantial, especially at upper levels of management. 36
  37. 37. Promotions in U.S. companies are based primarily on individual performance. Although progressive companies provide continuous development, training is often undertaken with hesitation because of the cost and the concern that the trained person may switch to another company. Thus, employees are often trained in specialized functions resulting in a rather narrow career path within the company. Finally, in many U.S. companies, employees feel that they may be laid off during economic hard times which, naturally, contribute to job insecurity. The managerial function of leading is carried out quite differently in U.S. companies. Leaders are seen as decision-makers heading the group; they are expected to be directive, strong, and determined. Their job is to integrate diverse values, but the emphasis on individualism in the society in general and in organizations in particular may hinder cooperation. Managers are expected to take decisive actions, and clarify the direction of the group or the business, even if this requires face-to-face confrontation with those who may disagree. Although managers work hard, they value their private lives and separate them from their work. Within the organization, the communication pattern is to a great extent from the top down the hierarchy, with considerable emphasis given to written communication. 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. Appendix-2 Dr. W. Edwards Deming's famous "14 points" 1. Create a constant purpose toward improvement. 2. Adopt the new philosophy. 3. Cease dependence on inspection to achieve quality. 4. Cease dependence on a single supplier for any one item. 5. Improve constantly and forever. 6. Institute training on the job. 7. Institute leadership. 8. Drive out fear. 9. Break down barriers between departments. 10. Eliminate unclear slogans, exhortation and targets. 11. Eliminate management by quotas and objectives. 12. Remove barriers to pride of workmanship. 13. Instigate a rigorous program of education and self-improvement. 14. Make "transformation" everyone's job. 37
  38. 38. 38