Development of Management Thought by Asst Prof. Jonlen DeSa
DEVELOPMENT OFDEVELOPMENT OF
MANAGEMENT THOUGHTMANAGEMENT THOUGHT
ASST PROF. JONLEN J. R. DESAASST PROF. JONLEN J. R. DESA
lassical Approaches to Management-Bureaucratic,
Scientific, Administrative, Human Relations Approach.
odern Approaches- Behavioral, Quantitative, Systems,
tyles of Management- Japanese, American, European.
*Management is as old as human civilization.
*Management concepts and principles developed after the Industrial
*Various contributors to Management Theories, Concepts &
*Management is an evolutionary concept.
*Each of the schools of management thought are based on somewhat
different assumptions about human beings and the organizations for
which they work.
*Each thought of school have come up with their own theories or
concepts. They are based on various assumptions and differences/
disagreements do occur.
CLASSIFICATION OF MANAGEMENTCLASSIFICATION OF MANAGEMENT
APPROACH• Robert Owen: HRM Pioneer
• Charles Babbage: Inventor & Management Scientist- Father of
• Andrew Ure & Charles Dupin: Management Education Pioneers
• Henry Robinson Towne
The classical school is the oldest formal school of
Its roots pre-date the twentieth century. The classical
school of thought generally concerns ways to manage
work and organizations more efficiently.
They form the foundation for the field of Management
• SCIENTIFIC MANAGEMENT focuses on the “one best way” to
do a job.
• ADMINISTRATIVE MANAGEMENT focuses on the manager &
basic managerial functions.
• BUREAUCRATIC MANAGEMENT focuses on the guidelines for
structuring with formalization of rules, procedures and a clear
division of labor.
1.SCIENTIFIC MANAGEMENT- F.W.
F.W. TAYLOR- Father of Scientific Mgmt.
According to F.W. TAYLOR, “ scientific management is
knowing exactly what you want men to do and seeing
that they do it in the best and cheapest way”.
In 1898, Taylor joined Bethlehem Steel.
Taylor was a mechanical engineer who sought to
improve industrial efficiency.
Working in the steel industry, Taylor had observed the
phenomenon of workers' purposely operating well
below their capacity, that is, soldiering. He attributed
soldiering to three causes:
The almost universally held belief among workers that
if they became more productive, fewer of them would
be needed and jobs would be eliminated.
Faulty wage system employed by the organization
encouraged them to work at a slower pace.
Outdated methods of working handed down from
generation to generation led to wasted efforts.
Taylor’s Principles of Scientific MgmtTaylor’s Principles of Scientific Mgmt
Other Contributors toOther Contributors to
Scientific Management-Scientific Management-
• FRANK B GILBRETH- Father of Motion Study.
• LILLIAN M GILBRETH- Associated with Research
to Motion Study.
• Motion Study involves finding out the best
sequence & minimum number of motions
needed to complete a task.
• Eliminate unnecessary motions & reduce fatigue.
• “ therbligs”therbligs”- 17 hand motions
• His work had great impact on medical
surgery by drastically reducing the time
patients spent on operating table.
• He invented a device – ‘MICRO
CHRONOMETER’ in order to record workers
movement and the amount of time spend
to done a job
FRANK B GILBRETH &
LILLIAN M GILBRETH
Followers of Taylor
LIMITATIONS TO SCIENTIFIC MGMTLIMITATIONS TO SCIENTIFIC MGMT
Workers did not enjoy freedom of choice.
Payment based on performance was not supported by
Trade Unions, Discrimination.
No bargaining for wages
Planning & Controlling in the hands of managers.
Lack of human approach
Tended to regard workers as uninformed and ignored
their ideas for suggestions
2. ADMINISTRATIVE MANAGEMENT2. ADMINISTRATIVE MANAGEMENT
Scientific Management focused on shop level
activity or the lower level management,
Administrative Management focuses on higher
level managerial activities.
It is concerned with broad administrative
principles applicable to the higher level
Henry Fayol was the main contributor to
French mining engineer and a management theorist.
Started as an engineer at a mining company and became Director in
Viewed management as a profession that can be trained and
First one to analyze the functions of management.
Made three major contributions to the theory of Management:
(A)A clear distinction b/n technical & managerial skills.
(B)Identified functions constituting the management process.
(C)Developed principles of management.
He was known as the “ Father of Modern Management”.
• Fayol described management as a scientific
process built up of five immutable elements:
Planning, Organizing, Commanding,
Fayol’s 14 Principles of ManagementFayol’s 14 Principles of Management
• DIVISION OF WORKDIVISION OF WORK
• AUTHORITY & RESPONSIBILITYAUTHORITY & RESPONSIBILITY
• UNITY OF COMMANDUNITY OF COMMAND
• UNITY OF DIRECTIONUNITY OF DIRECTION
• SUBORDINATION OF INDIVIDUAL INTERST TO GENERALSUBORDINATION OF INDIVIDUAL INTERST TO GENERAL
• SCALAR CHAINSCALAR CHAIN
• STABILITY OF TENURE OF PERSONNELSTABILITY OF TENURE OF PERSONNEL
• ESPIRIT DE CORPSESPIRIT DE CORPS
SCIENTIFIC MGMT VS ADMINISTRATIVESCIENTIFIC MGMT VS ADMINISTRATIVE
Shop Floor Level
Micro Aspect of Jobs
Top Level Mgmt
Macro Aspect of
Scientific MgmtScientific Mgmt Administrative MgmtAdministrative Mgmt
3.BUREAUCRATIC MANAGEMENT3.BUREAUCRATIC MANAGEMENT
• Bureaucratic Management is an important school of classical
management, emphasized the need for organizations to function
on rational basis.
• The term “bureaucracy” (derived from the German buro, meaning
office) referred to organizations that operated on a rational basis.
• During 1800’s, European Org. were managed on a personal,
• Max Weber was the main contributor to Bureaucratic
Max weberMax weber
• German theorist and sociologist.
• Follower of General Administrative Theory proposed by Henry
• Introduced most of the concepts on Bureaucratic Organizations.
• According to Weber, “a bureaucracy is a highly structured,
formalized & impersonal organization”
• It is a formal organization structure with a set of rules &
Division of Labour & Specialization
Hierarchy of Authority
System of formal Rules & Regulations
Selection & Promotion based on technical competence
4. HUMAN RELATIONS APPROACH
Human Relations Approach is treated as neo- classical
as they do not reject classical concepts but try to improve
Workers are not machines and managers should
recognize them as social beings and treat them
This approach tried to overcome the drawbacks of
ELTON MAYO & HUMAN RELATIONS
Elton Mayo- “ Father of the Human Relations
Approach”. He focused on human relations in
He led the team which conducted a study at
Western Electric Hawthorne Plant.
Experiment was conducted in 4 phases at
Also known as Hawthorne Experiments.
Experiments were conducted between 1924-1933.
Many management thinkers and engineers were
involved in conducting the experiments.
ELTON MAYOELTON MAYO • Western Electric Hawthorne PlantWestern Electric Hawthorne Plant
HAWTHORNE EXPERIMENTSHAWTHORNE EXPERIMENTS
• A team was constituted led by Elton Mayo (psychologist), Whitehead and
Roethlisberger(sociologists and company representative, William Dickson. The
researchers set out to study the relationship between productivity and physical
• The 4 Phases:
Experiments to determine the effects of changes in illumination on productivity,
illumination experiments (1924-27)
Experiments to determine the effects of changes in hours and other working
conditions on productivity, relay assembly test room experiments(1927-28)
Conducting plant-wide interviews to determine worker attitudes and sentiments,
mass interviewing programme(1928-30)
Determination and analysis of social organization at work, bank wiring
observation room experiments(1931-32)
1. ILLUMINATION EXPERIMENT
This was undertaken to find out how varying levels of
illumination (amount of light at the workplace, a
physical factor) affected the productivity.
The hypothesis was that with higher illumination,
productivity would increase.
Since productivity of both groups increased, researchers
concluded that group productivity was not directly
linked to intensity of illumination.
Something besides lighting influenced their
2. RELAY ASSEMBLY ROOM TEST ROOM2. RELAY ASSEMBLY ROOM TEST ROOM
2. RELAY ASSEMBLY ROOM TEST ROOM2. RELAY ASSEMBLY ROOM TEST ROOM
The experiment were designed to determine the effect of
changes in various job conditions on group productivity
as the illumination experiment could not establish
relationship between intensity of illumination and
For this purpose, the researchers set up a relay assembly
The incentive system was changed so that each girl’s extra pay was based on the
other five rather than the output of larger group, say 100 workers or so. The
productivity increased as compared to before.
Two five minute tests- one in the morning session and other I evening session
were introduced which were increased to ten minutes. The productivity increased.
The rest period was increased to five minutes but the frequency increased. The
productivity slightly decreased and the girls complained that frequent rest
intervals affected the rhythm of the work.
The number of rest was reduced to two of ten minutes each, but in the morning,
coffee or soup was served along with sandwich and in the evening, snack was
provided. The productivity increased.
Changes in working hours and workday were introduced such as cutting an hour
off the end of the day and eliminating Saturday work. The girls were allowed
leave at 4:30pm instead of the usual 5:00pm and later at 4:00pm. The productivity
increased. Absenteeism decreased, morale increased and less supervision was
3. INTERVIEW PHASE3. INTERVIEW PHASE
During the course of experiments, about 20,000 interviews were conducted
between 1928 and 1930 to determine employees’ attitudes towards
company, supervision, insurance plans, promotions, and wages.
A complain is not necessarily an objective recital of facts; it is a symptom
of personal disturbance the cause of which may be deep seated.
The position or status of a worker in the company is reference from which
the work assigns meaning and value to the events, objects, and features of
his environment such as hours of work, wages, etc.
The social organization of the company represents a system of values from
which the worker derives satisfaction or dissatisfaction according to the
perception of his social status and expected social rewards.
The social demands of the worker are influenced by social experience in
groups both inside and outside the work plant.
4. BANK WIRING OBSERVATION ROOM4. BANK WIRING OBSERVATION ROOM
4. BANK WIRING OBSERVATION ROOM4. BANK WIRING OBSERVATION ROOM
There experiments were carried on with a view to analyze the
functioning of small group and its impact on individual
Workers were paid on the basis of performance.
Output was fairly constant, contrary to their expectation.
Group encouraged neither too much nor too little work.
Money was not a main incentive for them.
Group acceptance appeared to be more important to the
worker than money.
THE REASONS FOR THIS OUTPUT:
Fear of unemployment: the basic reasoning of workers was that if there would
be more production per head, some if the workers would be put out of
Fear of raising the standards: most workers were convinced that once they
had reached the standard rate of production, management would raise the
standard of production reasoning that it must be easy to attain.
Protection of slower workers: The workers were friendly on the job as well as
off the job. They appreciated the fact that they had family responsibility that
required them to remain in the job. Since slower workers were likely to be
retrenched, the faster workers protected them by not overproducing.
Satisfaction on the part of management: According to workers, management
seemed to accept the lower production rate as no one was being fired or even
reprimanded for restricted output.
The study suggested that informal relationships are an important factor in
determining the human behavior. During the course of experiments, workers
were counseled for good human relations in the company's plant. The
counseling was in regard to supervision , employee relations, personal
adjustments and management of employee relations.
CONTRIBUTIONS OF HAWTHORN
It laid the foundation for Human Relations Movement.
Job Performance depends on the
The Group is the key factor in job
Fatigue is the main factor
Perceived meaning & importance
of the work determine output.
Management sets production
Workplace culture sets its own
The Hawthorne researchers did not give sufficient attention to
the attitudes that people bring with them to workplace.
The Hawthorne plant was not a typical plant because it was a
thoroughly unpleasant place to work. Therefore, the results
could not be valid for others.
The findings & conclusions reached were questionable.
Relationship made between the satisfaction of workers and
productivity was too simple.
C. MODERN APPROACHES
Modern Management Theories indicate refinement &
extension of classical theories.
Introduced after 1950.
Modern theories take into account changing situations,
human resource, systems etc.
1.BEHAVIOURAL APPROACHES1.BEHAVIOURAL APPROACHES
Its an extension of Human Relations Approach.
Study of Attitudes, Behavior, Performance & Importance
of Groups in Organizations
Stress on democracy rather than autocracy.
Motivation is important, managers have to be sensitive
to the needs of employees.
A. GROUP INFLUENCES
MARY P. FOLLET
POWER WITHIN not POWER OVER
Gave importance to Functioning of Groups.
b. NEEDS HIERARCHY-ABRAHAM MASLOWb. NEEDS HIERARCHY-ABRAHAM MASLOW
C. THEORY X & THEORY Y-C. THEORY X & THEORY Y-
DOUGLAS MCGREGORDOUGLAS MCGREGOR
D. McGregor developed 2 assumptions about human
Theory XTheory X- Negative Assumptions
Theory Y- Positive Assumptions
Assumptions that managers have about their
Theory X is based on traditional assumptions about people
Theory Y is based on modern or progressive or professional
ASSUMPTIONS OF THEORY X.
The average human being is inherently lazy by nature and
desires to work as little as possible. He dislikes the work
and will like to avoid it, if he can.
He avoids accepting responsibility and prefers to be led or
directed by some other.
He is self-centered and indifferent to organizational needs.
He has little ambition, dislikes responsibility, prefers to be
led but wants security.
He is not very intelligent and lacks creativity in solving
He by nature resists to change of any type.
In the case of such employees, self-motivation is just not
possible. They will work only when there is constant
supervision on them. A manager has to persuade, punish
or reward such workers in order to achieve organizational
ASSUMPTIONS OF THEORY Y.
Work is as natural as play, provided the work environment is
favorable. Work may act as a source of satisfaction or
punishment. An average man is not really against doing work.
People can be self-directed and creative at work if they are
Self-control on the part of people is useful for achieving
organizational goal. External control and threats of punishment
alone do not bring out efforts towards organizational objectives.
People have capacity to exercise imagination and creativity.
People are not by nature passive or resistant to organizational
needs. They have become so as a result of experience in
An average human being learns under proper conditions. He is
also willing to accept responsibility.
The intellectual capacity of an average human being is utilised
partially under the conditions of modern industrial life.
D. TWO FACTOR THEORY- FREDRICKD. TWO FACTOR THEORY- FREDRICK
2OO Engineers & Accountants were studied to find
out the extent of satisfaction & dissatisfaction with
Recall instances of Satisfaction & Dissatisfaction.
Satisfaction Job Content (Motivators)
Dissatisfaction Job Context (Hygiene Factors)
Presence of good job content factors led to Satisfaction
Absence of good job context factors led to Dissatisfaction
2. QUANTITATIVE APPROACH2. QUANTITATIVE APPROACH
It is also known as Mathematical Approach.
The Quantitative Management Approach emerged during
The approach makes use of Mathematics, Statistics,
Computer Simulations, Operational Models for Decision
These Quantitative tools are known as Operations
‘The quantitative approach involves the
use of quantitative techniques to improve
decision making. This approach has also
been labeled operations research. It
includes applications of statistics,
information models, and computer
3 BRANCHES OF QUANTITATIVE APPROACH3 BRANCHES OF QUANTITATIVE APPROACH
The management science approach stresses the
use of mathematical models and statistical
methods for decision-making.
Another name commonly used for management
science is operations research.
Recent advances in computers have made it
possible to use complex mathematical and
statistical models in the management of
Management science techniques are widely used
in the following areas:
Capital budgeting and cash flow management
Development of product strategies
Planning for human resource development
Maintenance of optimal inventory levels
Various mathematical tools like the waiting line theory or queuing
theory, linear programming, the program evaluation review
technique (PERT), the critical path method (CPM), the decision tree
theory, the simulation theory, the probability theory, sampling, time
series analysis etc. have increased the effectiveness of managerial
To apply a quantitative approach to decision-making, individuals
with mathematical, statistical, engineering, economics and business
background skills are required.
Since one person cannot have all these skills the quantitative
method requires a team approach to decision-making.
This approach has been criticized for its overemphasis of
Operations management deals with the effective management of
the production process and the timely delivery of an
organization’s products and services.
Operations management is concerned with: (i) inventory
management, (ii) work scheduling, (iii) production planning, (iv)
facilities location and design, and (v) quality assurance.
The tools used by operations managers are forecasting, inventory
analysis, materials requirement planning systems, networking
models, statistical quality control methods, and project planning
and control techniques.
Management information systems focuses on
designing and implementing computer-based
information systems for business organizations.
In simple terms, the MIS converts raw data into
information and provides the needed information to
each manager at the right time, in the needed form.
QUANTITATIVE APPROACHQUANTITATIVE APPROACH
Decision Making in
Planning & Controlling.
Used in capital budgeting,
element in Management.
Management is only
A system is a set of interacting or interdependent
components forming an integrated whole. It is a
complex whole formed from related parts: a
combination of related parts organized into a
The Systems approach gives mangers a new way of
looking at an organization as a whole and as part of
the external environment.
In systems approach, there is a lot of combination
or bringing things together.
Systems approach was advocated by Chester
Barnard, George Homans, Philip Selznick, Hebert
Systems approach is used to study the functions of
A system has a number of sub-systems, parts &
sub-parts. It is a combination of all sub-
All sub-systems/ parts are related to each other. A
change in one part will effect the others.
Systems approach emphasizes the study of the
various parts and their inter-relationships.
This approach can be used by any other school of
4. CONTINGENCY APPROACH4. CONTINGENCY APPROACH
Also known as Situational Approach.Situational Approach.
It has been developed to adapt to the changing situations of the
There is no single principle to manage all the situations in an
organization. Hence “ one best way of doing things” doesn’t
hold true in Situation Approach.
Today’s world is uncertain, any situation or
contingency may arise and hence management should
always have a plan to deal with the same.
Importance of Plan B
According to the Contingency Approach, the manager
should identify, “which technique will, in a particular
circumstance, and at a particular time, best
contribute to the attainment of management goals”.
The essence of this approach is that managers should
identify the situations, interpret them and apply the
approach which suits the situation the best.
A. JAPANESE STYLE OF MANAGEMENT
Japan has adopted managerial practices/styles which are
quite different from those of other economically advanced
countries in the western world.
Japan is one of the leading industrial nations in the
There are 3 common Japanese management practices.
Lifetime employment “ Nenko”
Consensus decision making “ Ringi”
Unique position of quality circles
1. Lifetime Employment (‘Nenko’):
Important feature of Japanese style of management is
lifetime employment for permanent employees, great
concern for the individual employee, and emphasis on
Large majority of employees in Japan spend their
working life period with a single enterprise.
This gives security and a feeling of belonging among the
In addition, it brings harmony of an employee with the
company, stronger loyalty with the company.
1. It avoids warfare among competing firms in the labour market.
2. Labour turnover and cost of hiring are minimized
3. A high sense of commitment and loyalty to the firm is developed.
4. Job hopping is a taboo in Japan.
5. An employee leaving the jobs frequently is treated as bad worker. He also loses
benefits of seniority and starts at the bottom.
1. This concept adds to the business costs as the employees are kept on the payroll
of the company even when there maybe insufficient work.
2. Companies find it difficult to maintain close relations with a large number of
lifetime workers as the numbers keep increasing.
3. Along with the lifetime employment the seniority system is another management
practice followed in Japan. This seniority system provides privileges for older
employees with many years of service with the company.
2. Consensus on decision-making in Japan:
It is collective and democratic.
It is based on the idea that new changes and new concepts
should come primarily from the lower levels of management.
The lower level employees prepare proposals for higher level
The supervisor at the higher level simply do not just accept or
reject the proposal submitted. They prefer to have
communication with the workers who submitted the proposal
The supervisor tactfully questions them, make suggestions
and encourages subordinates to think more and prepare
improved proposals for consideration at the higher level
Japanese management uses decision-making by consensus or
consensus decision making (“Ringi”) in order to deal with
Lower level employees initiate an idea and submit it to the
next higher level.
a) It results in dispersion of actual decision making to lower levels
b) It facilitates corporate harmony and prevents conflicts
c) It allows inputs from lower level of management
d) It improves commitment to implementing decisions
1. The decision making process becomes slow
2. Optimum allocation of resources becomes difficult
3. Unique Positions of Quality Circles:
The concept of quality circles (also called Quality Control
Circles) is popular and used extensively as management
practice in Japan.
Quality is given the first priority & maximum attention.
Here, workers from one department form a small unofficial
group. The group meets frequently, study their problems/
difficulties for remedial measures.
In addition, other problems such as cost control, quality
improvement, elimination of wastages are discussed in group
meetings and finally proposals are submitted to higher level
management for consideration and approval.
The quality circles operate on voluntary basis but get due
support from the management.
Innumerable quality control circles are at work in Japanese
industry today. They contribute substantially for
improvements in quality and productivity.
4. Job rotation/ non-specialized career paths
5. Collective group relationship (“Omikoshi”)
6. Paternalistic human concern
7. Profit based compensation system
8. Democratic management
9. Emphasis on training
10. Slow evaluation and seniority- based promotions
11. Focus on self-discipline and harmony (No internal competition)
12. Company unions
13. Ethical conduct
14. Employee Involvement
15. Employee Workforce
B. AMERICAN STYLE OF MANAGEMENTB. AMERICAN STYLE OF MANAGEMENT
The American Style of Management is completely
different from the Japanese Style of Management.
Key features include:
Hire & Fire Policy
Use & Throw Approach
Short term Employment
FEATURES OF AMERICAN STYLE OF
1) Individualistic approach is more predominant in the
American management style.
2) Managerial decisions are mostly made by the top level
management in USA
3) Employees in USA do not take initiative in assisting the
4) Information within the organization do not flow in all
5) Employees in the USA strive for individual
achievements and rewards and are not interested in
group achievements or rewards.
6) Individual work is the culture of American firms
whereas teamwork is the culture of Japanese firms.
7) Employees in USA prefer close supervision on their
work and are not interested in empowerment.
8) The concept of lifetime employment is not favored by
the management in USA. Employment in USA is for a
9) American companies follow mechanistic approach or
“use and throw” policy in managing people.
10) American companies follow short term and pure
business oriented approach in managing business.
11) American multinationals follow above noted managerial
practices in many other countries where they open
branches, offices, subsidiaries and so on.
C. EUROPEAN STYLE OF
Professional management is one feature of European
European countries are closer to America and the management
style of European countries is closer to the American style.
Every European country has socio-economic and cultural
background and the management styles introduced in these
countries differ from one another in certain respects. However
there are some common features of these management styles.
Managers of European countries manage business and
employees in different ways as per tradition and cultural
background. Yet there are some commonalities among
Changes have also taken place in management styles and practices of
In France: there is heavy involvement of government in economic and
social activities. The relationship between government and industry
The impact of management style of USA is visible in the management
style of France. French managers are supportive to European union.
The management practices in France are changing due to
globalization and global outlook.
The managerial style in Germany is characterized by considerable
use of authority.
Common Features of European style of management
1) European managers think of themselves as being more people
oriented than US Managers.
2) The European managers perceived that the US management
style is more top-down, whereas in Europe, the European
firms make negotiations with workers/unions and also with
3) European managers are operating between the extremes of
short term profit orientation of American managers and long
term growth of Japanese managers
4) European managers have developed skills in managing
international diversity. Managing across borders is
achieved more through people than through structures
and procedures. The ability of European managers to
speak several languages facilitates the “people approach”
5) European managers are not favourable to traditional
management approach but are supportive to professional
management. They also favour flexible approach to
JAPANESE V/S EUROPEAN
Japanese Management Style European Management Styles
Management Approach: the
management approach in Japan is
favorable to group/ collective and
The management approach among
European countries is individualistic
but is favorable to employees.
European managers are people
Decision making mechanism: it is
participative and employees participate
in the decision making process freely.
It is favorable to negotiations with
workers/unions and subsidiaries
while taking policy decisions.
However, less participative as
compared to Japanese management.
Uniformity: management style in
Japan is uniform as it covers only one
Management style in Europe is not
uniform as many countries with
backgrounds are involved.
Employee participation: such
participation is substantial and is
regarded as unique feature of
Japanese management. Workers are
encouraged to participate in
management through suitable
Limited participation of employees in
the form of negotiations with workers
and unions. Obedience of workers is
expected to the decisions taken by the
Life time employment: the concept
is supported in Japanese management
Life time employment concept is
absent among European countries but
managers show concern for
subordinates and “use and throw”
approach is not given much
importance as in the case of USA
Supportive to: management style in
Japan is favorable to prosperity of
European management style is
supportive to European union and
expansion of global trade.
JAPANESE VS. AMERICANJAPANESE VS. AMERICAN
STYLE OF MANAGEMENTSTYLE OF MANAGEMENT
Japanese style of management American style of management
Management approach: group/
collective/ democratic approach is
predominant in management style in
Individualistic approach is
predominant in American
Decision making: decision-making is
treated as a team activity. There is
interaction and participation of both
top and lower level employees in
decision making process. Collective
decision mechanism are encouraged
Decision are mostly by top
management and are pushed
downward. Individual decision making
is a normal practice. However, at
present, American software companies
have practicing group decision making.
Information service: information
moves freely in all directions within
the business unit.
Information flows in a specific
direction through a particular channel
Employee participation: employees
are encouraged to participate in
management through quality circles.
Their suggestions are given due
respect. As a result, employees
volunteer to assist the management.
Employees are not encouraged to
participate in the management. They
also do not volunteer to assist
management on their own. They take
up new assignment of work only when
Employee attitude: employees strive
for group/ team achievements and
Employees strive for individual
achievements and rewards.
Work culture: teamwork is the
culture of Japanese firms.
Individual work is the culture of the
Empowerment: Japanese employees
American employees prefer close
Promotion: slow/ gradual evaluation
of employees and promotion to higher
Rapid evaluation and promotions
Career opportunities/ paths: non
specified career paths but career
opportunities are provided to
Specialized career paths software
industry in USA encourages multi-
career paths to their employees.
Responsibility: collective responsibility
concept is accepted at the management
Individual responsibility concept is
accepted at the management level
Life time employment Hire and fire policy
Humanistic approach to management Mechanistic approach to management.
Use and throw policy.