Management Practices in the United States of America, Japan,

Germany, the People's Republic of China and Bangladesh

Productivity levels are of great concern to every country on the face of the earth. In
recent years, many U.S. businesses have looked to Japan to find the answer to the
productivity crisis in the United States, while many Japanese scholars attend
universities in the United States to learn about management. Japan's phenomenal
success in increasing productivity is often attributed to its managerial approach and low
wage rates. But with the rise of the Japanese yen and the fact that the labor cost
component of products becomes increasingly less important, managerial competence
becomes even more crucial.

There is an abundance of literature on both U.S. and Japanese management; one such
book even made the best- seller list. But the literature on Chinese management is very
sparse. Since Japan and the United States present contrasting managerial approaches,
Chinese managers probably could adopt aspects from either approach. But which
country uses managerial practices that would be appropriate for making Chinese
businesses more effective and efficient? The first step should be to identify Chinese
managerial practices and to analyze whether they are closer to the U.S. or the Japanese
model. Then they should be compared and contrasted with current practices used by
large, state-owned businesses in China.

There is general agreement on the basic characteristics of Japanese and U.S.

management, but there is less agreement-and certainty-about the transferability of the
practices (not the science) of management to other cultures. In the 1960s, scholars and
practitioners were very much concerned about the universality and transferability of
management. A great deal of controversy centered on the question of whether
management is culture-bound. Some suggest it is, while others point to the universality
of management. Harold Koontz, who developed one of the most comprehensive models
of comparative management, concluded that the opinion differences about the
universality of management can probably be attributed to the fact that management as
science-organized knowledge-has universal application, but the practice of
management is an art and as such must be adapted to the situation.

To understand what management is, we have to ask "What do managers really do?"
One of the most widely used frameworks for structuring managerial knowledge is to
take the managerial process and divide it, as a first order classification, into the
functions of planning, organizing, staffing, leading, and controlling. Key managerial
activities are then grouped within these functions. We will first discuss these functions
and then point out the differences of managing in the United States and Japan.

The managerial functions will serve as a framework for comparing and contrasting the
managerial approaches in these five countries. At the outset, a word of caution is in
order. It is obvious that not all companies are managed the same way as discussed here.
We must also realize that very few empirical studies exist, especially for Chinese
management, and that most of the available literature is descriptive. Many writers point
out the differences in the managerial practices in Japan and the United States, or in the
West in general. But others report that, for example, no differences have been found in
participation in the decision making process or in job satisfaction in Japan and
elsewhere. Therefore, the contrasting managerial approaches are suggestive.

Controlling

Planning

Leading

Organizing

Staffing

Figure: Functions of Management

Planning
Planning means looking ahead and chalking out future courses of action to be followed.
It is a preparatory step. It is a systematic activity which determines when, how and who
is going to perform a specific job. Planning is a detailed programme regarding future
courses of action. It is rightly said Well plan is half done. Therefore planning takes
into consideration available & prospective human and physical resources of the
organization so as to get effective co-ordination, contribution & perfect adjustment. It is
the basic management function which includes formulation of one or more detailed
plans to achieve optimum balance of needs or demands with the available resources.

According to Urwick, Planning is a mental predisposition to do things in orderly way,

to think before acting and to act in the light of facts rather than guesses. Planning is
deciding best alternative among others to perform different managerial functions in
order to achieve predetermined goals.

According to Koontz & ODonell, Planning is deciding in advance what to do, how to
do and who is to do it. Planning bridges the gap between where we are to, where we
want to go. It makes possible things to occur which would not otherwise occur.

Steps in Planning Function

Planning function of management involves following steps:1. Establishment of objectives
a. Planning requires a systematic approach.
b. Planning starts with the setting of goals and objectives to be achieved.
c. Objectives provide a rationale for undertaking various activities as well as
indicate direction of efforts.
d. Moreover objectives focus the attention of managers on the end results to
be achieved.
e. As a matter of fact, objectives provide nucleus to the planning process.
Therefore, objectives should be stated in a clear, precise and unambiguous
language. Otherwise the activities undertaken are bound to be ineffective.
f. As far as possible, objectives should be stated in quantitative terms. For
example, Number of men working, wages given, units produced, etc. But

such an objective cannot be stated in quantitative terms like performance

of quality control manager, effectiveness of personnel manager.
g. Such goals should be specified in qualitative terms.
h. Hence objectives should be practical, acceptable, workable and achievable.
2. Establishment of Planning Premises
a. Planning premises are the assumptions about the lively shape of events in
future.
b. They serve as a basis of planning.
c. Establishment of planning premises is concerned with determining where
one tends to deviate from the actual plans and causes of such deviations.
d. It is to find out what obstacles are there in the way of business during the
course of operations.
e. Establishment of planning premises is concerned to take such steps that
avoids these obstacles to a great extent.
f. Planning premises may be internal or external. Internal includes capital
investment policy, management labour relations, philosophy of
management, etc. Whereas external includes socio- economic, political and
economical changes.
g. Internal premises are controllable whereas external are non- controllable.
3. Choice of alternative course of action
a. When forecast are available and premises are established, a number of
alternative course of actions have to be considered.
b. For this purpose, each and every alternative will be evaluated by
weighing its pros and cons in the light of resources available and
requirements of the organization.
c. The merits, demerits as well as the consequences of each alternative must
be examined before the choice is being made.
d. After objective and scientific evaluation, the best alternative is chosen.
e. The planners should take help of various quantitative techniques to judge
the stability of an alternative.
4. Formulation of derivative plans
a. Derivative plans are the sub plans or secondary plans which help in the
achievement of main plan.
b. Secondary plans will flow from the basic plan. These are meant to support
and expediate the achievement of basic plans.
c. These detail plans include policies, procedures, rules, programmes,
budgets, schedules, etc. For example, if profit maximization is the main
aim of the enterprise, derivative plans will include sales maximization,
production maximization, and cost minimization.

d. Derivative plans indicate time schedule and sequence of accomplishing

various tasks.
5. Securing Co-operation
a. After the plans have been determined, it is necessary rather advisable to
take subordinates or those who have to implement these plans into
confidence.
b. The purposes behind taking them into confidence are :i.
Subordinates may feel motivated since they are involved in
decision making process.
ii.
The organization may be able to get valuable suggestions and
improvement in formulation as well as implementation of plans.
iii.
Also the employees will be more interested in the execution of
these plans.
6. Follow up/Appraisal of plans
a. After choosing a particular course of action, it is put into action.
b. After the selected plan is implemented, it is important to appraise its
effectiveness.
c. This is done on the basis of feedback or information received from
departments or persons concerned.
d. This enables the management to correct deviations or modify the plan.
e. This step establishes a link between planning and controlling function.
f. The follow up must go side by side the implementation of plans so that in
the light of observations made, future plans can be made more realistic.

Organizing
Organizing is the function of management which follows planning. It is a function in
which the synchronization and combination of human, physical and financial resources
takes place. All the three resources are important to get results. Therefore,
organizational function helps in achievement of results which in fact is important for
the functioning of a concern. According to Chester Barnard, Organizing is a function
by which the concern is able to define the role positions, the jobs related and the coordination between authority and responsibility. Hence, a manager always has to
organize in order to get results.

A manager performs organizing function with the help of following steps:-

1. Identification of activities:
All the activities which have to be performed in a concern have to be identified first. For
example, preparation of accounts, making sales, record keeping, quality control,
inventory control, etc. All these activities have to be grouped and classified into units.

2. Departmentally organizing the activities:

In this step, the manager tries to combine and group similar and related activities into
units or departments. This organization of dividing the whole concern into independent
units and departments is called depart mentation.

3. Classifying the authority:

Once the departments are made, the manager likes to classify the powers and its extent
to the managers. This activity of giving a rank in order to the managerial positions is
called hierarchy. The top management is into formulation of policies, the middle level
management into departmental supervision and lower level management into
supervision of foremen. The clarification of authority helps in bringing efficiency in the
running of a concern. This helps in achieving efficiency in the running of a concern. This
helps in avoiding wastage of time, money, effort, in avoidance of duplication or
overlapping of efforts and this helps in bringing smoothness in a concerns working.

4. Co-ordination between authority and responsibility:

Relationships are established among various groups to enable smooth interaction
toward the achievment of the organizational goal. Each individual is made aware of his
authority and he/she knows whom they have to take orders from and to whom they are
accountable and to whom they have to report. A clear organizational structure is drawn
and all the employees are made aware of it.

Staffing

The managerial function of staffing involves manning the organization structure

through proper and effective selection, appraisal and development of the personnels to
fill the roles assigned to the employers/workforce.

According to Theo Haimann, Staffing pertains to recruitment, selection, development

and compensation of subordinates.

Nature of Staffing Function

1. Staffing is an important managerial function:

Staffing function is the most important managerial act along with planning, organizing,
directing and controlling. The operations of these four functions depend upon the
manpower which is available through staffing function.

2. Staffing is a pervasive activity:

As staffing function is carried out by all mangers and in all types of concerns where
business activities are carried out.

3. Staffing is a continuous activity:

This is because staffing function continues throughout the life of an organization due to
the transfers and promotions that take place.

4. The basis of staffing function is efficient management of personnel:

Human resources can be efficiently managed by a system or proper procedure, that is,
recruitment, selection, placement, training and development, providing remuneration,
etc.

5. Staffing helps in placing right men at the right job. It can be done effectively through
proper recruitment procedures and then finally selecting the most suitable candidate as
per the job requirements.

6. Staffing is performed by all managers depending upon the nature of business, size
of the company, qualifications and skills of managers etc. In small companies, the top
management generally performs this function. In medium and small scale enterprise, it
is performed especially by the personnel department of that concern.

Leading
Leading is said to be a process in which the managers instruct, guide and oversee the
performance of the workers to achieve predetermined goals. Leading is said to be the
heart of management process. Planning, organizing, and staffing have got no
importance if direction function does not take place.
Leading initiates action and it is from here actual work starts. Leading is said to be
consisting of human factors. In simple words, it can be described as providing guidance
to workers is doing work. In field of management, direction is said to be all those
activities which are designed to encourage the subordinates to work effectively and
efficiently.
According to Human, Leading consists of process or technique by which instruction
can be issued and operations can be carried out as originally planned Therefore,
Leading is the function of guiding, inspiring, overseeing and instructing people
towards accomplishment of organizational goals.
Direction has got following characteristics:
1. Pervasive Function - Leading is required at all levels of organization. Every
manager provides guidance and inspiration to his subordinates.
2. Continuous Activity - Leading is a continuous activity as it continuous
throughout the life of organization.
3. Human Factor - Leading function is related to subordinates and therefore it is
related to human factor. Since human factor is complex and behaviour is
unpredictable, direction function becomes important.

4. Creative Activity - Leading function helps in converting plans into performance.

Without this function, people become inactive and physical resources are
meaningless.
5. Executive Function - Leading function is carried out by all managers and
executives at all levels throughout the working of an enterprise, a subordinate
receives instructions from his superior only.
6. Delegate Function - Leading is supposed to be a function dealing with human
beings. Human behaviour is unpredictable by nature and conditioning the
peoples behaviour towards the goals of the enterprise is what the executive does
in this function. Therefore, it is termed as having delicacy in it to tackle human
behaviour.

Controlling

Controlling consists of verifying whether everything occurs in conformities with the

plans adopted, instructions issued and principles established. Controlling ensures that
there is effective and efficient utilization of organizational resources so as to achieve the
planned goals. Controlling measures the deviation of actual performance from the
standard performance, discovers the causes of such deviations and helps in taking
corrective actions
According to Brech, Controlling is a systematic exercise which is called as a process of
checking actual performance against the standards or plans with a view to ensure
adequate progress and also recording such experience as is gained as a contribution to
possible future needs.
According to Donnell, Just as a navigator continually takes reading to ensure whether
he is relative to a planned action, so should a business manager continually take
reading to assure himself that his enterprise is on right course.
Controlling has got two basic purposes
1. It facilitates co-ordination
2. It helps in planning
Features of Controlling Function

Following are the characteristics of controlling function of management1. Controlling is an end function- A function which comes once the performances
are made in confirmities with plans.
2. Controlling is a pervasive function- which means it is performed by managers
at all levels and in all type of concerns.
3. Controlling is forward looking- because effective control is not possible without
past being controlled. Controlling always look to future so that follow-up can be
made whenever required.
4. Controlling is a dynamic process- since controlling requires taking reviewal
methods, changes have to be made wherever possible.
5. Controlling is related with planning- Planning and Controlling are two
inseperable functions of management. Without planning, controlling is a
meaningless exercise and without controlling, planning is useless. Planning
presupposes controlling and controlling succeeds planning.

Management Practices in United Sate of America (USA)

The managerial functions will serve as a framework for understanding the managerial
approaches in the USA. At the outset, a word of caution is in order. It is obvious that not
all companies are managed the same way as discussed here.

Figure: Functions of Management

Planning in the USA

Planning means looking ahead and chalking out future courses of action to be followed.
It is a preparatory step. It is a systematic activity which determines when, how and who
is going to perform a specific job. Planning is a detailed programme regarding future
courses of action. It is rightly said Well plan is half done.

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.

Planning in the USA_

1) Primarily short-term orientation,
2) Individual decision-making,
3) Involvement of a few people in making and selling: the decision to people with divergent
values,
4) Decisions are initiated at the top and flow down,
5) Fast decision-making; slow implementation requiring compromise, often resulting in
suboptimal decisions.

1) Primarily short-term orientation:

In USA the manager plan for short time, such as daily, monthly, half yearly & yearly
etc. Because, In contrast, U.S. managers are often under pressure by stockholders to
show favorable financial ratios each time they report them.

2) Individual decision-making:
In U.S. organizations, decisions are made primarily by people and usually only a few
people are involved, are made based on each individual in each department. So that, it
can implemented easily and time consuming can be applied smoothly.

3) Involvement of a few people in making and selling; the decision to

people with divergent values:
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.

4) Decisions are initiated at the top and flow down:

In USA, decision should take at first by top level and then it shifted to lower level.

Figure: Level of Management

6) Fast decision-making; slow implementation requiring compromise,

often resulting in suboptimal decisions:
In contrast, U.S. managers are often under pressure by stockholders to show favorable
financial ratios each time they report them. This, unfortunately, may not encourage
investments that have a payout in the more distant future. Also, Americans usually stay
in their managerial positions only a relatively short time and myopic decisions can
seldom be traced to the manager who had made the decision. Yotaro Kobayashi, the
executive vice president at Fuji Xerox, has admitted that the Japanese learned a great
deal about systematic long-range planning from the Americans.

Organizing in the USA

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.

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.

Organizing in USA_
1)
2)
3)
4)

Individual responsibility and accountability,

Clarity and specificity of decision responsibility,
Formal bureaucratic organizational structure,
Lack of common organization culture; identification with profession rather than with
company.

1) Individual responsibility and accountability:

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.

2) Clarity and specificity of decision responsibility:

Job descriptions are perhaps the best evidence of this.

3) Formal bureaucratic organizational structure:

Many organizations, especially those operating in a stable environment, have been
rather successful in using the formal bureaucratic organization structure.

4) Lack of common organization culture; identification with profession

rather than with company:
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.

Staffing in the USA

Staffing requires identifying human resource needs and filling the organization
structure-and keeping it filled- with competent people.
Staffing in USA_
1)
2)
3)
4)
5)
6)
7)
8)

People hired out of schools and from other companies; frequent company changes,
Rapid advancement highly desired and demanded,
Loyalty to the profession,
Frequent performance evaluation for new employees,
Appraisal of short-term results,
Promotions based primarily on individual performance,
Training and development undertaken with hesitation (employee may go to another firm),
Job insecurity prevails.

1) People hired out of schools and from other companies; frequent

company changes:

The management of human resources in the United States is quite different from the
same practice in other countries. U.S. companies recruit employees from schools, but
they also hire from other companies.

2) Rapid advancement highly desired and demanded:

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.

3) Loyalty to the profession:

Professionals such as engineers or accountants often identify more with their profession
than with their company, and job-hopping is not unusual.

4) Frequent performance evaluation for new employees:

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.

5) Appraisal of short-term results:

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.

6) Promotions based primarily on individual performance:

Promotions in U.S. companies are based primarily on individual performance.

7) Training and development undertaken with hesitation:

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.

8) Job insecurity prevails:

Finally, in many U.S. companies, employees feel that they may be laid off during
economic hard times which, naturally, contributes to job insecurity.

Leading in the USA

Leading involves the process of influencing people so that they contribute to
organizational aims; it is concerned with leadership, motivation, and communication.
Using a paternalistic leadership approach, managers show great concern for the welfare
of their subordinates. Common values and a team spirit facilitate cooperation. The role
of managers is to create an environment of esprit de corps, and they are willing to help
out in doing the same work their subordinates do. In an attempt to maintain harmony
at almost any cost, managers avoid face-to-face confrontation. This also means that
things may be purposely left ambiguous. Leadership requires "followership" and
managers are aided by the fact that people are expected to subordinate their self-interest
to that of the group and the organization. While managers may not be very directive,
influence is exerted through peer pressure. In fact, close personal relationships are
nurtured not only by working together on common tasks, but also by meeting and
associating outside the work environment. The result is a confluence of organizational
and private life.

The managerial function leading in USA_

1)
2)
3)
4)
5)

Leader acts as decision-maker and head of group,

Directive style (strong, firm, determined),
Often divergent values; individualism sometimes hinders cooperation,
Face-to-face confrontation common; emphasis on clarity,
Communication primarily top-down.

1) Leader acts as decision-maker and head of group:

The managerial function of leading is carried out quite differently in U.S. companies.
Leaders are seen as decision-makers heading the group.

2) Directive style (strong, firm, determined):

Leaders are expected to be directive, strong, and determined.

3) Often divergent values; individualism sometimes hinders cooperation:

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.

4) Face-to-face confrontation common; emphasis on clarity:

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.

5) Communication primarily top-down:

Within the organization, the communication pattern is to a great extent from the top
down the hierarchy, with considerable emphasis given to written communication.

Controlling in the USA

Controlling involves setting standards, measuring performance, and correcting
undesirable deviations. Control emphasizes process, not numbers.
Controlling in the USA_

Control by superior
Control focus on individual performance
Fix blame
Limited use of quality control circles

Control in the United States often means measuring performance against precise
standards. Management by objectives, widely practiced in this country, requires the
setting of verifiable objectives against which individual performance is measured. This
way the superior can trace deviations to specific people and this frequently results in
fixing the blame. In an attempt to maximize individual results, group performance may
suffer. We all can think of examples in which the self-interest of people was placed
before group or organizational interest. The use of quality control programs is not new.
Hughes Aircraft, for example, had such programs for a long time under the names of
"zero defects" and "value engineering." Many of these programs were developed in this
country and later used by the Japanese in the improvement of their product quality and
productivity.

Management Practices in Japan

The managerial functions will serve as a framework for understanding the managerial
approaches in Japan. At the outset, a word of caution is in order. It is obvious that not
all companies are managed the same way as discussed here. Managerial functions are
based to understand the practices in Japan. These are as under_

Planning

Controlling

Leading

Organizing

Staffing

Figure: Functions of Management.

Planning in Japan
In Japan, planning is greatly aided by cooperation between government and business.
After World War II, Japan developed policies for economic growth and strength as well
as international competitiveness. These policies harmonized monetary and fiscal
policies within the industrial structure. In this kind of relative economic predictability,
environment planning is less risky. Planning is choosing the purpose and objectives of
the organization as a whole or a part of it and selecting the means to achieve those ends.
It requires making decisions.
Planning in Japan_
1.
2.
3.
4.
5.

Long-term orientation,
Collective decision-making (ring) with consensus,
Involvement of many people in preparing and making the decision,
Decision flow from bottom-to-top and back,
Slow decision-making; fast implementation of the decision.

1. Long-term orientation:
The Japanese, in general, have a longer-term orientation in planning than U.S.
managers. One reason for this is that in Japan banks are the primary providers of capital
and their interest is the long-term health of the businesses.

2. Collective decision-making (ring) with consensus:

One of the most interesting aspects of Japanese management is the way decisions are
made. In a typical organization, several levels are involved in making the decision.
Actually, the most important part of the process is understanding and analyzing the
problem and developing various alternate solutions. The final authority for making a
decision still rests with top management, but before a proposal reaches the executive's
desk, the problem and the possible solutions have been discussed at various levels in
the organizational hierarchy. Top management still has the option to accept or reject a
decision. But more likely a decision is returned to subordinates for further study, rather
than being rejected outright.

3. Involvement of many people in preparing and making the decision:

A proposal is confirmed through the "Ringi" process. The "RingiSho" is a proposal
document prepared by a staff member. This paper is circulated among various
managers before it goes to top management for formal approval. The document, which
is usually initialed by those involved in or affected by the decision, elicits cooperation
and participation of many people.

4. Decision flow from bottom-to-top and back:

This paper is circulated among various managers before it goes to top management for
formal approval. The document, which is usually initialed by those involved in or
affected by the decision, elicits cooperation and participation of many people. This, in
turn, assures that the problem or the decision is examined from different perspectives.
That this decision making process is time-consuming is obvious.

5. Slow decision-making; fast implementation of the decision:

After a consensus is reached, the implementation of the plan is rather swift because the
understanding of the plan, the clarification of the problem, the evaluation of the
different alternatives, and the involvement of those people who will implement the
decision. But the sharing of the decision power and responsibilities can also result in a
problem so that no one feels individually responsible for the decision.

In Japanese companies, largely due to the search for consensus in decision-making, the
emphasis is on collective responsibility and accountability. Individual responsibilities,
then, are implied rather than explicitly defined. Although this may discourage placing
the blame for an incorrect decision on people, it also can create a great deal of
uncertainty. In fact, the organization structure is rather ambiguous and the de-emphasis
on formal authority promotes informality and egalitarianism. Another characteristic
found in Japanese companies is a common organizational culture and philosophy that
places a high value on unity and harmony within the organization. At the same time,
there is a competitive spirit toward other businesses. Organizational change is
accomplished by changing processes, with the aim of maintaining harmony among
those affected. Also, the change agent (OD consultant) is virtually always an employee
of the company.

Organizing in Japan

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.
Organizing in Japan_
1)
2)
3)
4)

Collective responsibility and accountability

Ambiguity of decision responsibility
Informal organization structure
Well-known common organization culture and philosophy; competitive spirit toward
other enterprises

1) Collective responsibility and accountability:

In Japanese companies, largely due to the search for consensus in decision-making, the
emphasis is on collective responsibility and accountability. Individual responsibilities,
then, are implied rather than explicitly defined.

2) Ambiguity of decision responsibility:

Although this may discourage placing the blame for an incorrect decision on people, it
also can create a great deal of uncertainty.

3) Informal organization structure:

In fact, the organization structure is rather ambiguous and the de-emphasis on formal
authority promotes informality and egalitarianism.

4) Well-known common organization culture

competitive spirit toward other enterprises:

and

philosophy;

Another characteristic found in Japanese companies is a common organizational culture

and philosophy that places a high value on unity and harmony within the organization.
At the same time, there is a competitive spirit toward other businesses. Organizational
change is accomplished by changing processes, with the aim of maintaining harmony
among those affected. Also, the change agent (OD consultant) is virtually always an
employee of the company.

Staffing in Japan:
Staffing requires identifying human resource needs and filling the organization
structure-and keeping it filled- with competent people. It is in the management of
human resources, in addition to the decision-making process.
1)
2)
3)
4)

Young people hired out of school; hardly any mobility of people among companies,
Slow promotion through the ranks,
Loyalty to the company,
Very infrequent formal performance evaluations for new (young) employees,

5) Appraisal of long-term performance,

6) Training and development considered a long- term investment,
7) Lifetime employment common in large companies.

1) Young people hired out of school; hardly any mobility of people among
companies:
In Japan, people are hired out of school. For a young man, choosing a place to work is
one of the most important decisions he makes after selecting a spouse and a university.

2) Slow promotion through the ranks:

After a person has joined a company, there is hardly any opportunity to find
employment in another company. Promotions are rather slow, and for most young
people the first 15 or 20 years with a company are pretty much the same.

3) Loyalty to the company:

Employees develop a strong identification with the company, the company takes care of
them, and employees repay with their loyalty.
4) Very infrequent formal performance evaluations for new (young)

employees:
After joining a company, performance is very infrequently evaluated. In fact, it may
take ten years before a formal performance evaluation is made. This does not mean that
the progress is not monitored, but it is monitored on an informal basis. Working
together with others in an office, without walls separating employees and superiors,
leaves little doubt how well people perform.

5) Appraisal of long-term performance:

Furthermore, infrequent appraisals, encompassing a long period of time, reduce the
probability that luck or misfortune influence the evaluation. What is evaluated is the
overall, long-range success and decision capability of the person. This practice results in
linking rewards (such as promotions) to effective long-tern performance. Still, the
differences in pay increases are very small and rewards are essentially based on group
and company performance rather than individual contributions.

6) Training and development considered a long- term investment:

Because the employees are an integral part of the corporate community, promotion
practices must be considered by all as being fair and equitable. In Japan, the criterion for
promotion is usually a combination of seniority and merit. Also, educational
background plays a role in promotion decisions. Japanese companies invest heavily in
the training and development of their employees and the practice of job rotation
throughout their working life leads to a broad career path in which employees get
exposed to many different businesses.

7) Lifetime employment common in large companies:

Perhaps the most pervasive impact on managerial practices is lifetime employment.
Japanese companies make every effort to ensure a stable employment until retirement
age (around 55). At times of economic slowdown, companies usually dismiss part-time
or seasonal employees who are not considered members of the permanent work force,
and rather than laying off permanent employees, they are often transferred to
organizational units that are in need of additional help. But the practice of life-long
employment seems to be on its way out. In an interview, Japanese executives suggested
that life-long employment will have to be slowly modified because it is very costly and
results in a top-heavy organizational structure.

Leading in Japan
How Japanese leading their people in their organization these are given as under_
1.
2.
3.
4.
5.

Leader acting as social facilitator and group member,

Paternalistic style,
Common values facilitating cooperation,
Avoidance of confrontation, sometimes leading to ambiguities; emphasis on harmony,
Bottom-up communication.

1. Leader acting as social facilitator and group member:

Leading involves the process of influencing people so that they contribute to
organizational aims; it is concerned with leadership, motivation, and communication.
Japanese managers are seen as social integrators who are a part of the work-group.

2. Paternalistic style:
Using a paternalistic leadership approach, managers show great concern for the welfare
of their subordinates.

3. Common values facilitating cooperation:

Common values and a team spirit facilitate cooperation.

4. Avoidance of confrontation, sometimes leading to ambiguities;

emphasis on harmony:
The role of managers is to create an environment of esprit de corps, and they are willing
to help out in doing the same work their subordinates do. In an attempt to maintain
harmony at almost any cost, managers avoid face-to-face confrontation. This also means
that things may be purposely left ambiguous. Leadership requires "followership" and
managers are aided by the fact that people are expected to subordinate their self-interest
to that of the group and the organization. While managers may not be very directive,
influence is exerted through peer pressure. In fact, close personal relationships are
nurtured not only by working together on common tasks, but also by meeting and
associating outside the work environment. The result is a confluence of organizational
and private life.

5. Bottom-up communication:
Communication patterns parallel decision-making, with an emphasis on bottomup
communication. In one study it was found that in Japanese companies communication
was initiated much more often at lower levels than in U.S. companies. This
communication pattern is also promoted by Japanese managers, who take a great deal
of time communicating with their subordinates. This puts the emphasis on face-to-face
contact rather than memos.

Controlling in Japan
The Managerial function controlling in Japanese organization are as under_
1)
2)
3)
4)

Control by peers,
Control focus on group performance,
Saving face,
Extensive use of quality control circles.

1) Control by peers:
In the view of Western managers, controlling involves setting standards, measuring
performance, and correcting undesirable deviations. To the Japanese, this process is less
direct. The group, its dynamics, and its pressures have a profound impact on the

managerial process. In an office without dividing walls, peers are well aware of the
performance of their colleagues.

2) Control focus on group performance:

Managers are a part of the work group rather than separated from employees by an
office door. Individual performance is not measured against specific verifiable
objectives; rather, emphasis is placed on group performance.

3) Saving face:
The Japanese approach of letting subordinates "save face" would be incongruent with
fixing the blame for deviations from plans on people.

4) Extensive use of quality control circles:

Control emphasizes process, not numbers. The Japanese reputation for quality is due, in
part, to the success of quality control, which requires grassroots involvement with very
active participation in quality control circles.

Management Practices in the People's Republic of China

The functions of management should help us to understand the management practices
in the Peoples Republic of China. These functions are as under_

Planning

Controlling

Leading

Organizing

Staffing

Figure: Functions of Management

Planning in China
The nature of Planning in Chinese organizations are given below_
1.
2.
3.
4.
5.

Long-term and short-term orientation (5- year plan and annual plan),
Decision-making by committees. At the top often individual,
Top-down-participation at lower levels,
Top-down-initiated at the top,
Slow decision-making / slow implementation. (Now changing).

1. Long-term and short-term orientation (5- year plan and annual plan):
In China, the situation is quite different. Most of the businesses are state-owned, and it
is only more recently that some private companies have come into existence. In our
comparison, however, we focus only on the former. In these businesses, both long- and
short-term plans are prepared. The five year plan is prepared.

2. Decision-making by committees. At the top often individual:

The five year plan is prepared at the top. The State Planning Commission is the
authority to prepare the 5 year plan.

3. Top-down-participation at lower levels:

Lower-level managers have very little authority to make decisions. More detailed plans
are made at lower levels.

4. Top-down-initiated at the top,

In China, major decisions are made by people at the top, but many people are involved
in operational decisions.

5. Slow decision-making / slow implementation. (Now changing):

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.

Organizing in China
1)
2)
3)
4)

Collective and individual responsibility,

Attempts to introduce the factory responsibility system,
Formal bureaucratic organization structure,
Identification with the company but no competitive spirit.

1) Collective and individual responsibility:

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.

2) Attempts to introduce the factory responsibility system:

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.

3) Formal bureaucratic organization structure:

Within the formal bureaucratic structure the relationships among people are rather
informal.

4) Identification with the company but no competitive spirit:

Like in Japan, there are strong organizational cultures in Chinese businesses. Research
indicates that the degree of identification with the business may vary 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 state-owned
organizations. And there is a lack of competitive spirit among Chinese employees.

Staffing in China
Staffing requires identifying human resource needs and filling the organization
structure-and keeping it filled- with competent people. It is in the management of
human resources, in addition to the decision-making process. The nature of Chinese
organizations staffing procedures are given as under_

1.
2.
3.
4.
5.
6.

Most hired from school, fewer from other companies,

Slow promotion, but regular salary increase,
Lack of loyalty to both company and profession,
Infrequent performance review (usually once a year),
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,
7. Training programs available. State exam administered for managers.

1. Most hired from school, fewer from other companies:

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.

2. Slow promotion, but regular salary increase:

People are usually assigned to their positions by higher authorities. As in Japan,
employees are promoted slowly through the ranks with regular salary increases.

3. Lack of loyalty to both company and profession:

Lacking in China is the dedication and loyalty to both company (as in Japan) and to the
profession (as in the U.S.).

4. Infrequent performance review (usually once a year):

Performance reviews are done infrequently in China (usually once a year) which is
certainly more often than in Japan, and are more like the practice in the United States.

5. 5-year plan, otherwise short-term targets:

The five year plan is prepared at the top. The State Planning Commission is the
authority to prepare the 5 year plan.

6. Promotions:
Promotions are supposed to be based primarily on performance, education, and
potential ability. However, family ties and good relations with the superior greatly
influence advancement within an organization.

7. Training programs available. State exam administered for managers:

In the past, training programs were available in China only to the chosen few. Recently,
however, training has been provided for more managers by educational television and
professional night schools. Moreover, some managers now have to pass an exam,
sponsored by the State Economic Commission. Jobs are secure; it implies lifetime
employment (known as "iron rice-bowl") regardless of performance.

Leading in China
1) Leader as the head of the group (committees),
2) Directive. Parent-child relations (in TA terms),
3) Common values. Emphasis on harmony,

4) Avoidance of confrontation,
5) Communication top-down.

1) Leader as the head of the group (committees):

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)

2) Directive. Parent-child relations (in TA terms):

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.

3) Common values. Emphasis on harmony:

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). Like the
situation in Japan, leading is aided by common values and an emphasis on harmony.

4) Avoidance of confrontation:
Like the situation in Japan, leading is aided by common values and an emphasis on
harmony, rather than confrontation.

5) Communication top-down:
On the other hand, communication is primarily top-down, as with many U.S.
corporations.

Controlling in China
1.
2.
3.
4.

Control by group leader (superior),

Primary control by groups-but also by individuals,
Try to save face,
Limited use of quality control.

1. Control by group leader (superior):

In China, control is exercised primarily by group leaders. The control focus is on the
group.

2. Primary control by groups-but also by individuals:

The control focus is on the group, but also on the person. Factory managers, for
example, are expected to meet their yearly quotas.

3. Try to save face:

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).

4. Limited use of quality control:

There is some use of quality circles, but it is not a common practice.

Management, once considered a U.S. challenge to Europeans has become, in the minds
of many, Japanese challenge to managers in the United States. Whether the perception
of the superiority of Japanese management practices is correct-and there is some doubtremains to be seen. In the meantime, many Chinese managers are at the threshold of a
managerial revolution in which more government-owned organizations gain greater
autonomy. Selectively, competition is encouraged and incentives for private initiatives
are promoted. There is an increasing market orientation, and decision power for
meeting customer needs is decentralized (there have been even some highly publicized
bankruptcies). To adapt to these and other changes, Chinese managers look at both
Japanese and United States managerial practices and compare them with their past
experiences. Some may be transferable, but others are not. The environment, especially
socio-cultural factors, does influence practice, but its impact may have been overstated.

Management Practices in Bangladesh

The functions of management should help us to understand the management practices
in Bangladesh. These are_

Controlling

Planning

Leading

Organizing

Staffing

Figure: Functions of Management

Planning in Bangladesh
Planning is the thinking process, the organized foresight, the vision based on fact and
experience that is required for intellectual action.
Planning features in Bangladesh are given below_
1)
2)
3)
4)
5)

Long-term orientation,
Individual decision-making,
Decision initiated only at the top,
Fast decision making and slow implementation, and
Involvement of few people from top level in making decision.

1. Long-term orientation
Now there are only two types of management in the world, one is Japanese and the
other one is American. Bangladesh follows a mixed concept of these two types of
management. For some work they follow the Japanese and for some work they follow
the American type of management.

Bangladeshi managers follow 5-year plan. They make a 5-year plan to improve their
organizational condition. Government also takes 5-year plan. Sometimes these plans do
not come true when Government changes; the new Government takes new plans.
Private organizations are free from this problem; they take their own plans as they
want. When they need they can take short term plan what can make good to their
organization.

We talked to some business executives to know more about this mater. They say some
facts about their planning terms. One of them says that they take decision for long time
as well as for short time, but they would like decision for long time for their
organization.

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.

2. Individual decision-making

In case of making decision we see that Japanese Mgt takes decision collectively, U.S.
Mgt takes decision individually and Chinese Mgt takes decision by their committees. In
this case we see that Bangladeshi Mgt also takes decision individually like the U.S.
management.

It is a very common fact that everyone wants to be big in the world. Everyone wants to
express him or her where s/he works. For these reasons some people don't like to talk to
others before taking a decision. This is a common mentality of the executive people of
our country.

The executives have another point that if a group of people sits together to make a
decision then no decision will be made. There happens only some waste of money and
time. This is why the executives want to take decision individually.

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.

3. Decision initiated only at the top

In Japanese management everyone in the organization has to think about a problem. If

the problem is very difficult then it comes from the top-level person lower level person.
If the problem is not so difficult than it goes from lower level to top level. By this way
they solve a problem and take a decision.
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 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 top-level, not from the bottom-top.

4. 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 cant implement all the
decision when they want.
In Bangladesh this problem mainly occurs in Govt. sectors. Here one takes decision very
fast but at the time of implementation no one comes forward to make it happen. So,

here every decision is made very quickly but the implementation of that decision is very
slow.

5. 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
responsibilities. For this employees are not happy with their position. Employees are
waiting for better opportunities to go away. The organizations are unable to fulfill the
requirements of the employee's need. So the company is losing skilled employees.
Personal connections, family relationships, and seniority are frequently more important
for promotion. Most of the organizations have not well-defined rules and regulations to
maintain discipline. As well as organizations have no organogram. Some specific
features of organizing in Bangladeshi organization are given below_
Individual responsibility and accountability.
Motivational & predicative decision.
Mostly govt. firms use formal bureaucratic organizational structure. But Pvt.
Organizations use informal organizational structure.
Well-known common organization culture.

Staffing in Bangladesh
Staffing requires identifying human resource needs and filling the organization
structure-and keeping it filled- with competent people. It is in the management of
human resources, in addition to the decision-making process. The nature of
Bangladeshi organizations staffing procedures are given as under_

Fixed & long-term Employment (In Govt. organization), But short-term employment in
Pvt. Organizations.
Evaluation and promotion depend on seniority as well as favoritisms.
Holistic concern including family.
It is not common to employ organization development consultants from outside the firm.
Bangladeshi firms have high employee turnover rate because of uncertainty of job.

Leadership approaches in Developing Countries and Bangladesh

Leadership research has also been conducted among managers in , developing
countries such as India, Peru, Chile and Argentina. Although their 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.

Some specific features of leading in Bangladeshi organization are given below_

Leader acting as the decision-maker and head of the group.

Mostly benevolent autocratic style (parent-child relations.)
Divergent values; groupism sometimes hindering cooperation.
Face-to-face confrontation.
Critical and non-critical communication top down.
Promotion is slow and often depends on Group Lobbying.
Responsibility is assigned to individual
Leaders give not too more importance to the organizations goal-attainment than
interpersonal relationship.
Leaders do care much to make the subordinates work to meet the time schedule or
deadline.
Leaders are not very motivated to attain the objectives of the organization.

Controlling in Bangladesh

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. Limited uses of quality control circles. 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 force 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.
Caption: Present Practices in Bangladesh as Regards Controlling

Some specific features of controlling in Bangladeshi organization are given below_

Control by superior

Control focuses on individual performance

Fixing blame
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.

Bangladeshi Managers of organizations must always face an unfinished world. Rarely

do they have all the information to make a perfect decision; rarely do they have the full
authority to implement the best one of their solutions; and rarely can they predict
specific human responses to events.

An essential of management gives managers a perspective to view their present

environment. They can see the past, present and future developments of the field. They
identify the managerial processes and the techniques in the related disciplines to
application in business operational functions and activities of public agencies. But most
importantly, managers may sense the need for an appropriate posture.

No matter how large or small the organization, the problems, decisions, and responses
emerging from one environment have an impact on other environments. As one of the
principal characters in life's unfinished but continuing drama, the manager has the
potential of determining the destiny of our society.

Although there are many managerial difficulties ahead, the future for management is
not only bright but also essential for society. The makeup of management and its
implementation will change considerable, but constant importance directed toward the
best quality of living will prevail. Difficult management problems will be mastered,
achievements beyond our expectations will own, and fundamental questions will be
solved. At long last, managerial techniques and abilities will be available so that human
beings have the opportunity to fulfill their highest destinies.