Comparative Management System- Asia, Africa, Western etc.

1. Comparative management systems
Asian Management System
African Management System
European Management System
Western Management System

2. Middle Eastern Intercontinental Trade
Trans-Saharan Cross-Continental Trade
China as an Ancient Global Trading Initiator
European Trade Imperative
Globalization in U.S. History
The Root of Modern Globalization and Management Systems

3. 1994 - Uruguay Round of multilateral trade
negotiations under the General Agreement on
Tariffs and Trade (GATT). WTO was created
World Trade Organization (WTO) (1994)
The global organization of countries that
oversees rules and regulations for international
trade and investment including agriculture,
intellectual property, services, competition, and
subsidies. (Luthans & Doh, 2012)

4.  North American Free Trade Agreement (NAFTA)
A free-trade agreement between the United States,
Canada, and Mexico that has removed most barriers to
trade and investment
 European Union
A political and economic community consisting of
27 member states.
 ASEAN
 ECOWAS

5. Management is the process of completing activities
with and through other people. (Luthans & Doh, 2012)
International management is the process of applying
management concepts and techniques in a
multinational environment and adapting management
practices to different economic, political, and cultural
contexts. (Luthans & Doh, 2012)

6. Comparative Management Systems
Comparative Management is the study and
analysis of management in different environment
(Farmer)
Comparative management is the process of
identifying, measuring, and interpreting
similarities and differences, and practices in
various culture (Knootz & Wcihrich)

7. Hofstede, G. Asia Pacific J Manage (2007)

8. Our group Model

9. Explanation of the variables in our model
 Cultural Background
It is that part of our conditioning that we share with other
members of our nation, region, or group but not with members of
other nations, regions, or groups (Hofstede 1983).
It includes everything that a group thinks, says, does, and
makes – its customs, ideas, mores, habits, traditions,
language, and shared systems of attitudes and feelings–
that help to create standards for people to co-exist
(Zawawi, 2008).
Apart from societal culture, organization also has its own
culture. Whereas social systems in general can exist
because human behaviour is predictable, organizations
can exist because that behaviour is controllable (Hofstede
1983).

10. Explanation of the variables in our model
 Cultural Background
It is that part of our conditioning that we share with other
members of our nation, region, or group but not with members of
other nations, regions, or groups (Hofstede 1983).
It includes everything that a group thinks, says, does, and
makes – its customs, ideas, mores, habits, traditions,
language, and shared systems of attitudes and feelings–
that help to create standards for people to co-exist
(Zawawi, 2008).
Apart from societal culture, organization also has its own
culture. Whereas social systems in general can exist
because human behaviour is predictable, organizations
can exist because that behaviour is controllable (Hofstede
1983).

11. Explanation of the variables in our model
Key Cultural Issues
 Individualistic versus Collectivism
 Power distance – Low, Medium, High
 Feminine versus Masculine
 Time
 Uncertainty Avoidance

12. Examples of Cultural Influences on
Management Theories or Systems
Montaigne (1533-1592) wrote, “What kind of truth is it that is
bounded by these mountains and is a lie to people living
elsewhere?”

13. Weber (1864-1920), a German on Authority,
The authority to give the commands required for the discharge of
these duties is distributed in a stable way and is strictly delimited
by rules concerning the coercive means. . .which may be placed
at the disposal of officials (from Wirtschaft und Gesellschaft).
Fayol (1841-1925) , a French on Authority
We distinguish in a manager his statutory authority, which is in
the office, and his personal authority, which consists of his
intelligence, his knowledge, his experience, his moral value, his
leadership, his service record, etc. For a good manager, personal
authority is the indispensable complement of statutory authority
(Fayol, 1916. P. 21)

14. Mary Parker Follett, American on authority.
How can we avoid the two extremes : too great bossism
in giving orders, and practically no orders given ? ...
My solution is to depersonalize the giving of orders, to
unite all concerned in a study of the situation, to
discover the law of the situation and obey that One,
person should not give orders to another person, but
both should agree to take their orders from the situation
(from a paper presented in 1925; in Metcalf and
Urwick, 1940. Pp. 58-59)

15. Analysis:
Same issue of the exercise of authority
 Office
 Person
 Situations

16.  Philosophy
From the Etymology, Philosophy was derived from two
Greek words – philos (loving) or philein (love of) and
sophia (wisdom). Hence, etymologically, philosophy is
the love of wisdom.
Philosophy is the study of the theoretical basis of a
particular branch of knowledge or experience.
Key issues
Origin of their philosophy
Key philosophical issues
Concept of Human Nature

17.  Management and Non-management Practices
The group borrowed from the Comparative Management
Models of Hofstede, G (2007). The management practices
include Planning, Organizing, Staffing and Controlling
and non-management practices are Engineering,
Production, Marketing and Finance.
Key Management Issues
 Decision-making
 Relationship and contacts
 Communication
 Leadership and performance

18.  Institutions
Institutions refer to the external forces that have
direct or indirect effects on the management style;
for instance, education, politics, legal and
technology.

19.  Management Excellence
Management excellence is the superior advantage enjoys
by the company due to effective harnessing of the
managerial, and non-management practices and
institutions as influenced by the cultural and
philosophical backgrounds of the manager and the
people.

20. Philosophical Issues
 Both Asia and Africa share similar view on the role
of the community in molding the individual and the
person’s responsibility towards who he or she
becomes
 Both stress the need for respect and mutual
relationship
Similarities between
Asian and African Management System

21. Philosophical Issues
 Both European and the Western have the same
philosophical root, namely: Socrates, Plato and
Aristotle
 Both consider human being as rational animal
Similarities between
European and Western Management System

22. Philosophical Issues
 All of them have philosophy as their
background
 All of them have the concept of human nature
 All of them have some basic belief about the
human values
Similarities among
Asian, African, European, and Western Management System

23. Similarities between
Asian and African Management System
Cultural issues
 They lean toward collectivism
 Power distance is high for both
 High respect for seniority and authority

24. Similarities between
European and Western Management System
Cultural Issues
 Both lean towards the individualistic nature on the
continuum
 They share common view about power distance –
low
 Both give much priority to individual success in
terms of respect

25. Similarities between
Asian and African Management System
Managerial issues
 Relationship is for mutual benefit
 Contacts help in business dealings
 The authority has the final say in decision-making

26. Similarities between
European and Western Management System
Managerial Issues
 In terms of relationship, they give priority to
individual’s ability.
 They regard contacts as purely professional.
 Individual’s input and debate take center stage in
opinions.
 In communication, both are considered as direct in
expressing their opinions.

27. Organizational Culture
 Every organization sets goals and objectives.
 In every organization, there is a process for
decision-making either formal or informal.
 Organizations also have organizational
structures and procedures.
 Every organization has a reward system.
Similarities among
Asian, African, European, and Western Management System

28. Managerial Issues: Differences among
Asian, African, European, and Western Management System
Asia Africa Europe West
Relationship -
group dynamic
and mutual
benefits.
Contact - being
part of a group,
business
dealings.
Conflict-
resolution –
harmony and
conflict
Relationship -
mutual and group
benefits.
Contact -
business and
business
decisions
Conflict-
resolution –
Conflict
avoidance
Relationship -
individual’s
ability, merit, and
equality
Contact -
Professional level
Conflict-
resolution – rules
and principles
first and legalistic
Relationship
individual’s
ability and
equality
Contact -
Professional level
Conflict-
resolution – rules
and principles
first and legalistic

29. Managerial Issues: Differences among
Asian, African, European, and Western Management System
Asia Africa Europe West
Opinion in
decision-making
- leader
determines
Opinion in
decision-making -
the leader has
final say and
ultimately
decides.
Opinions in
decision-making -
debates, thinking
of individuals and
personal inputs.
Opinions in
decision-making
debates and
individual input.

30. Cultural Issues: Differences among
Asian, African, European, and Western Management System
Asia Africa Europe West
Collectivism
Power distance
is high
Communalism
Power distance is
high
Individualism is
low to medium
level
Power distance is
medium to low
Individualism is
high
Power distance is
low

31. Cultural Issues: Differences among
Asian, African, European, and Western Management System
Asia Africa Europe West
Respect --
seniority and
wisdom
Authority –
person, office
and situation
Communication
- indirect and
implied
Respect --
seniority and
wisdom
Authority –
person, office
and situation
Communication
– Direct and
Indirect
Respect --
individual’s
success and
ability
Authority –
person and office
Communication
– Direct and
verbal
Respect --
individual’s
success and
ability
Authority –
situation
Communication
– Direct and
Verbal

32. Philosophical Issues: Differences among
Asian, African, European, and Western Management System
Asia Africa Europe West
Taoism, Zen
Buddhism and
Confucianism
San Chiao which
highlights three
core principles, viz.
value-oriented,
service of others,
mutual
relationship, and
morality as
priority.
Ubuntu Philosophy
Teamwork, attention
to relationships,
mutual respect and
Empathy and
participative
decision-making
Socrates, Plato and
Aristotle
Empiricism,
Rationalism,
Utilitarianism
Socrates, Plato and
Aristotle
Empiricism,
Rationalism,
Utilitarianism

33. Philosophical Issues: Differences among
Asian, African, European, and Western Management System
Asia Africa Europe West
Human
Nature-
being is
teachable,
improvable,
and
perfectible
through
personal and
communal
endeavour,
especially
self-
cultivation
Human is in a
process of being
and existing and
the community
provides the
place for the
continuing
evolvement of
the individual’s
personhood
Human Nature -
rational animal
who are naturally
good but evil
arises because
society corrupts
(Rousseau)
Human Nature -
rational animal:
materialistic and
deterministic
(Thomas
Hobbes), people
can be either
good or bad
based on
experience (John
Locke)

34. W. Edwards Deming
Honoured in Japan in 1951
William G. "Bill" Ouchi

35. Theory X manager
Prof. Douglas Murray
McGregor
Believes that
people are basically
lazy and that
coercion and
threats of
punishment often
are necessary to get
them to work.
Theory Z manager
Prof. William G. "Bill"
Ouchi
Believes that
workers seek
opportunities to
participate in
management and
are motivated by
teamwork and
responsibility
sharing.
Theory Y manager
Prof. Douglas Murray
McGregor
Believes that
under the right
conditions people
not only will work
hard but will seek
increased
responsibility and
challenge.
Analysis of Management theories

37. References
Luthans F. & Doh J. (2012), International Management: Culture, Strategy, And Behavior, Eighth
Edition, McGraw-Hill, New York, NY 10020
Hofstede G. (1981), Culture And Organizations, International Studies of Management &
Organization, Vol. 10, No. 4, Organizations and Societies (Winter, 1980/1981), pp. 15-4
Barkema J. et al. (2015), Academy of Management Journal 2015, Vol. 58, No. 2, 460–479.
http://dx.doi.org/10.5465/amj.2015.4021
Co K. (2017), Major Comparative Management Model, PhD in Philosophical Foundation of
Administration class report. PCU.
https://www.britannica.com/topic/individualism
http://www.bobriel.com/pdf%20files/east%20asia%20business%20culture.pdf
http://repository.up.ac.za/bitstream/handle/2263/28706/04chapter4.pdf?sequence=5
Peng M. About Europeans and Asians, Asia Pacific Journal of Management (Hofstede, 1984a,
1984b)

38. THANK YOU