International Comparative Management Course
2017
International comparative management course
INTERNATIONAL COMPARATIVE
MANAGEMENT
COURSE
1
,International Comparative Management Course
2017
Table of contents
CHAPTER 1. FUNDAMENTALS OF INTERNATIONAL COMPARATIVE MANAGEMENT4
1.1. Comparative management concept .............................................................................................. 4
1.1.1. International comparative management definition................................................................ 4
1.1.2. Necessity of international comparative management............................................................ 5
1.1.3. Brief history of international comparative management ....................................................... 6
1.2. Main international comparative management schools of thought ............................................... 7
1.2.1. International comparative management schools typology .................................................... 7
1.2.2. Ragu Nath’s approach ........................................................................................................... 8
1.3. International transfer of managerial knowledge, essence of international comparative
management ...................................................................................................................................... 13
CHAPTER 2. INTERNATIONAL COMPARATIVE MANAGEMENT METHODOLOGY .... 16
2.1. Features of international comparative management researches ................................................. 16
2.2. Stages of a complex comparative management study................................................................ 17
2.2.1. Setting up goals stage.......................................................................................................... 17
2.2.2. Specify topic stage .............................................................................................................. 19
2.2.3. Sampling stage .................................................................................................................... 19
2.2.4. Translation stage ................................................................................................................. 20
2.2.5. Measurement stage .............................................................................................................. 21
2.2.6. Research administration stage ............................................................................................. 21
2.2.7. Information analysis stage .................................................................................................. 22
2.2.8. Conclusions and dissemination stage .................................................................................. 23
2.3. Typology of comparative management studies.......................................................................... 24
2.3.1. Parochial studies ................................................................................................................. 24
2.3.2. Ethnocentric studies ............................................................................................................ 24
2.3.3. Polycentric studies .............................................................................................................. 26
2.3.4. Comparative studies ............................................................................................................ 27
2.3.5. Geocentric studies ............................................................................................................... 28
2.5.6. Synergistic studies............................................................................................................... 28
CHAPTER 3. MANAGEMENT IN JAPAN ..................................................................................... 31
3.1. General features of Japanese culture .......................................................................................... 31
3.2. Economic and social features of Japanese context ................................................................ 32
3.3. IAMBAS defining features ...................................................................................................... 33
3.3.1. Specific vision on organization ........................................................................................... 34
3.3.2. Structure of large industrial groups - ZAIBATSU .............................................................. 35
3.3.3. Decision-making by consensus ........................................................................................... 36
3.3.4. Inter and intra groups communication ................................................................................ 37
3.3.5. Organizational structures .................................................................................................... 38
3.3.6. Lifetime employment .......................................................................................................... 39
3.3.7. Management - trade unions relations .................................................................................. 40
3.3.8. Wage system based on seniority and education .................................................................. 41
CHAPTER 4. MANAGEMENT IN U.S. COMPANIES .................................................................. 43
4.1. Contextual characteristics of United States................................................................................ 43
4.2. American cultural values ........................................................................................................... 44
4.3. Specific managerial features ...................................................................................................... 45
4.3.1. Common strategic choices .................................................................................................. 45
4.3.2. Organizational structures .................................................................................................... 47
2
,International Comparative Management Course
2017
4.3.3. Human capital and development of human resources......................................................... 48
4.3.4. High level of executives revenues....................................................................................... 50
4.3.5. Significant transfers from Japanese management ............................................................... 51
4.3.6. Management - trade unions relationship ............................................................................. 53
CHAPTER 5. MANAGEMENT IN THE EUROPEAN UNION .................................................... 55
5.1. Overall organization of management system ............................................................................. 55
5.2. Participatory management and decision making process........................................................... 56
5.3. Intensity and shapes of forecasting ............................................................................................ 58
5.4. Staff motivation ......................................................................................................................... 59
5.5. Control features .......................................................................................................................... 61
5.6. Managers and leadership style ................................................................................................... 63
5.7. Peculiarities of organizational structures in Europe................................................................... 64
5.8. Management - trade unions relations in European countries ..................................................... 70
Assignments/applications .................................................................................................................... 71
Assignment 1. Japanese management in U.S. companies................................................................. 71
Assignment 2. Prentice Machine Tools – which way? ..................................................................... 73
Assignment 3. Japanese robots ......................................................................................................... 75
Assignment 4. Management-trade union relationship at IBM .......................................................... 77
Assignment 5.Why we must consider cultural differences in doing business? ................................ 78
Application 1. Measures to increase labor productivity.................................................................... 80
Application 2. A message from the East ........................................................................................... 81
3
, International Comparative Management Course
2017
CHAPTER 1. FUNDAMENTALS OF INTERNATIONAL
COMPARATIVE MANAGEMENT
1.1. Comparative management concept
A defining feature of the period after 1960 is represented on almost all human
sciences by the vast expansion of comparative approaches. Areas - such as comparative law
or comparative literature, has gained reputation, and proved their scientific potential and
practical viability. Along with this approaches comparative management emerges, even
though later than others sciences. Today, in almost every economic or management faculty in
developed countries, comparative management is part of the curriculum. Dozens of
international scientific events in this area are held every year. This wide proliferation is
explained by the specificity and high scientific level of comparative management, pragmatic
usefulness, and large diversity of national, cultural and managerial issues which has to be
known, understood and considered in terms of internationalization of economic, social,
cultural and scientific activities. Moreover, mankind is - as Peter Ferdinand Drucker argues -
in a transitional period in which science is gradually replacing capital as a basic resource of
economic development, and adaptation to this transition requires new tools and approaches.
In this context, comparative management theory and practice are at the forefront of scientific
and socio-economic change.
1.1.1. International comparative management definition
Like any young science, comparative management does not present a generally
accepted definition. For instance, William Newman, one of the best specialists in thus field,
argues that "comparative management deals with similarities and differences in local
management practices in different countries”. A step forward is, in our opinion, Raghu
Nath’s approach, who considers that "in general, comparative management focuses on
comparing the similarities and differences between management systems and economic
contexts”. Although, comparing with Newman definition Nath’s one extend comparative
management beyond management practice, we note that, regarding the nature and location
system that is being compared is quite inaccurate and even too comprehensive. There is no
requirement to take into account different national and cultural contexts and, in addition to
managerial system, includes economic ones, which is a mistake in our opinion.
4
2017
International comparative management course
INTERNATIONAL COMPARATIVE
MANAGEMENT
COURSE
1
,International Comparative Management Course
2017
Table of contents
CHAPTER 1. FUNDAMENTALS OF INTERNATIONAL COMPARATIVE MANAGEMENT4
1.1. Comparative management concept .............................................................................................. 4
1.1.1. International comparative management definition................................................................ 4
1.1.2. Necessity of international comparative management............................................................ 5
1.1.3. Brief history of international comparative management ....................................................... 6
1.2. Main international comparative management schools of thought ............................................... 7
1.2.1. International comparative management schools typology .................................................... 7
1.2.2. Ragu Nath’s approach ........................................................................................................... 8
1.3. International transfer of managerial knowledge, essence of international comparative
management ...................................................................................................................................... 13
CHAPTER 2. INTERNATIONAL COMPARATIVE MANAGEMENT METHODOLOGY .... 16
2.1. Features of international comparative management researches ................................................. 16
2.2. Stages of a complex comparative management study................................................................ 17
2.2.1. Setting up goals stage.......................................................................................................... 17
2.2.2. Specify topic stage .............................................................................................................. 19
2.2.3. Sampling stage .................................................................................................................... 19
2.2.4. Translation stage ................................................................................................................. 20
2.2.5. Measurement stage .............................................................................................................. 21
2.2.6. Research administration stage ............................................................................................. 21
2.2.7. Information analysis stage .................................................................................................. 22
2.2.8. Conclusions and dissemination stage .................................................................................. 23
2.3. Typology of comparative management studies.......................................................................... 24
2.3.1. Parochial studies ................................................................................................................. 24
2.3.2. Ethnocentric studies ............................................................................................................ 24
2.3.3. Polycentric studies .............................................................................................................. 26
2.3.4. Comparative studies ............................................................................................................ 27
2.3.5. Geocentric studies ............................................................................................................... 28
2.5.6. Synergistic studies............................................................................................................... 28
CHAPTER 3. MANAGEMENT IN JAPAN ..................................................................................... 31
3.1. General features of Japanese culture .......................................................................................... 31
3.2. Economic and social features of Japanese context ................................................................ 32
3.3. IAMBAS defining features ...................................................................................................... 33
3.3.1. Specific vision on organization ........................................................................................... 34
3.3.2. Structure of large industrial groups - ZAIBATSU .............................................................. 35
3.3.3. Decision-making by consensus ........................................................................................... 36
3.3.4. Inter and intra groups communication ................................................................................ 37
3.3.5. Organizational structures .................................................................................................... 38
3.3.6. Lifetime employment .......................................................................................................... 39
3.3.7. Management - trade unions relations .................................................................................. 40
3.3.8. Wage system based on seniority and education .................................................................. 41
CHAPTER 4. MANAGEMENT IN U.S. COMPANIES .................................................................. 43
4.1. Contextual characteristics of United States................................................................................ 43
4.2. American cultural values ........................................................................................................... 44
4.3. Specific managerial features ...................................................................................................... 45
4.3.1. Common strategic choices .................................................................................................. 45
4.3.2. Organizational structures .................................................................................................... 47
2
,International Comparative Management Course
2017
4.3.3. Human capital and development of human resources......................................................... 48
4.3.4. High level of executives revenues....................................................................................... 50
4.3.5. Significant transfers from Japanese management ............................................................... 51
4.3.6. Management - trade unions relationship ............................................................................. 53
CHAPTER 5. MANAGEMENT IN THE EUROPEAN UNION .................................................... 55
5.1. Overall organization of management system ............................................................................. 55
5.2. Participatory management and decision making process........................................................... 56
5.3. Intensity and shapes of forecasting ............................................................................................ 58
5.4. Staff motivation ......................................................................................................................... 59
5.5. Control features .......................................................................................................................... 61
5.6. Managers and leadership style ................................................................................................... 63
5.7. Peculiarities of organizational structures in Europe................................................................... 64
5.8. Management - trade unions relations in European countries ..................................................... 70
Assignments/applications .................................................................................................................... 71
Assignment 1. Japanese management in U.S. companies................................................................. 71
Assignment 2. Prentice Machine Tools – which way? ..................................................................... 73
Assignment 3. Japanese robots ......................................................................................................... 75
Assignment 4. Management-trade union relationship at IBM .......................................................... 77
Assignment 5.Why we must consider cultural differences in doing business? ................................ 78
Application 1. Measures to increase labor productivity.................................................................... 80
Application 2. A message from the East ........................................................................................... 81
3
, International Comparative Management Course
2017
CHAPTER 1. FUNDAMENTALS OF INTERNATIONAL
COMPARATIVE MANAGEMENT
1.1. Comparative management concept
A defining feature of the period after 1960 is represented on almost all human
sciences by the vast expansion of comparative approaches. Areas - such as comparative law
or comparative literature, has gained reputation, and proved their scientific potential and
practical viability. Along with this approaches comparative management emerges, even
though later than others sciences. Today, in almost every economic or management faculty in
developed countries, comparative management is part of the curriculum. Dozens of
international scientific events in this area are held every year. This wide proliferation is
explained by the specificity and high scientific level of comparative management, pragmatic
usefulness, and large diversity of national, cultural and managerial issues which has to be
known, understood and considered in terms of internationalization of economic, social,
cultural and scientific activities. Moreover, mankind is - as Peter Ferdinand Drucker argues -
in a transitional period in which science is gradually replacing capital as a basic resource of
economic development, and adaptation to this transition requires new tools and approaches.
In this context, comparative management theory and practice are at the forefront of scientific
and socio-economic change.
1.1.1. International comparative management definition
Like any young science, comparative management does not present a generally
accepted definition. For instance, William Newman, one of the best specialists in thus field,
argues that "comparative management deals with similarities and differences in local
management practices in different countries”. A step forward is, in our opinion, Raghu
Nath’s approach, who considers that "in general, comparative management focuses on
comparing the similarities and differences between management systems and economic
contexts”. Although, comparing with Newman definition Nath’s one extend comparative
management beyond management practice, we note that, regarding the nature and location
system that is being compared is quite inaccurate and even too comprehensive. There is no
requirement to take into account different national and cultural contexts and, in addition to
managerial system, includes economic ones, which is a mistake in our opinion.
4
