UNDERSTANDING BUSINESS

ASSIGNMENT

Management practices (POSLC) of key

economies in the world:

USA, Japan, China, India, UK, France, Germany,

Russia and Brazil.

SUBMITTED TO:

PROF. DIVAKAR G M
INSTITUTE OF MANAGEMENT

CHRIST UNIVERSITY

SUBMITTED BY:

SANDHESH MOHANDAS

1627020

I MBA A
 MANAGEMENT PRACTICES IN UNITED STATES OF
AMERICA

Planning
An introduction about the thing is given briefly.
Decision making is purely individual and not a group.
The decision making policy followed is top-down.
Fast choice making and moderate execution brings out optimal choices.

Organizing
It is individual obligation & responsibility used for this process.
The clarity & specificity of choice obligation is used.
It has formal bureaucratic authoritative structure.

Staffing
People are hired from schools and various business organizations.
Loyalty is given preference in the organization.
Execution assessment for new representatives is frequent.
Appraisal of temporary results.
Individual performance acts as the basis for promotion.
Oscillation is embraced with training and improvement.

Leading
The chief head of the gathering is the leader.
Directive style is used.
Attention on clarity is given and face to face meetings are done.
Ensures top down communication.

Controlling
Control is universal and widespread.
Control is concentrated on individual execution
All the faults are fixed appropriately.
There is limited utilization of value control circles.
 MANAGEMENT PRACTICES IN JAPAN
Planning
Orientation is generally long term.
Collective decision making is done with consensus.
Decisions are made and prepared with the involvement of a lot of
individuals.
Decisions flow from bottom to top management.
Although the decision making is slow, the implementation is very fast.

Organizing
Accountability and responsibility is collective.
Decision responsibility is usually ambiguity (open to more than one
decision).
The organization structure used is informal.
Well-known common organization culture and philosophy. There is
competitiveness among other enterprises.

Staffing
Young people are hired from schools; hardly any mobility of people among
companies.
Promotion is very slow with the help of ranks.
Loyalty is maintained to the company.
Very infrequent performance evaluation for new employees to make them
hardworking.
Multiple criteria is used for promotion of employees.

Leading
Every leader acts as a group member and social facilitator.
The style used here is paternalistic.
Common values are used to facilitate cooperation.
Communication is from bottom to top.

Controlling
Control is done by peers.
Control focus is on group performance and not individual.
Face is saved.
Extensive use of quality control circles.
 MANAGEMENT PRACTICES IN CHINA

Planning
Long-term and short-term orientation (5-year plan and annual plan).
Decision-making is done by committees.
Top-down-participation at lower levels.
The decision making and implementation of these decisions is slow.

Organizing
The responsibility is collective and individual.
Attempts to introduce the factory responsibility system.
Formal bureaucratic organization structure is being used.
Identification with the company but no competitive spirit.

Staffing
Most of them are hired from schools and a few from other companies.
Although the promotion is slow, the salary is paid regularly.
Lacks loyalty to company and profession.
Infrequent performance review (usually once a year).
Either short term targets or five year plans are made.
Promotions are supposed to be based on performance, potential ability,
and education.

Leading
The leader is the head of the group. (committees)
The technique used is directive.
They have common values and maintain communal harmony.
Avoidance of confrontation is an important step done.
Communication is done on a top-down basis.

Controlling
The group is controlled by a superior leader.
Groups do the primary control but sometimes even individuals do control.
 MANAGEMENT PRACTICES IN INDIA

Planning

With the change in leadership, India has been pushing the bar of growth.

The five-year plan by the planning commission of India is set to end on the
fiscal year of 2016-17 post which the Niti Aayog will take charge.

Indias planning mainly focuses on rural development, eradication of

poverty, electrification of villages, betterment of trade relations with
countries across the globe, incurring investments from MNCs, initiating
manufacturing hubs in India and creation of ample opportunities for jobs in
the country.

There are other plans too that have been laid out to ensure the complete
growth of the country.

Organizing

The head of the government in India is the Prime Minister and along with
his/her council of ministers, he/she is responsible to take the country
forward by implementing the laws and policies passed in the legislature
(the Parliament).

The union ministers directly report to the Prime Ministers while some
ministers of state with independent charge also directly report to the
Indian Prime Minister.

The main idea of the democratically elected government is to make sure

the policies and procedures planned are implemented throughout and
make sure that the country moves towards a positive growth.

Most of the IT based company tries the American style flat organization
structure.

Manufacturing companies has the typical hierarchical organizational

structure.

Staffing
 As the Indian democracy has three pillars, judiciary, legislature and
executive, it is important that the right people are in the right positions in
all the three pillars.

It is important to have people with growth oriented approach, especially in

the executive offices and the legislature as they directly are responsible
for the implementation of policies and laws and the creation or
amendment of the same.

India lack skilled labor.

Leading

Although the head of the state in India is the President, yet its powers
are very minimal as it is only an ornamental position in Indian
democracy.

The actual power and responsibility of driving a nation is on the Prime

Minister and its cabinet ministers.

They have the responsibility of taking care of the citizens of the

country and make sure that the economy goes for growth every year.

It is mandatory for the government to keep in mind the interest of the

people and work on the shortcomings of the society and the country as
a whole.

Controlling

The primary control on the implementation of the policies is vested on the

executives of the country.

Right from the National Security Advisor to the IAS officers working in the
district levels need to focus on how the work is implemented in the public
sector.

It one of the most important aspects on management practices as these

officials are directly or indirectly responsible for proper implementation
and success of the various measures issued by the government.
 MANAGEMENT PRACTICES IN UNITED KINGDOM
Planning

The planning in the UK is based on orientation for long as well as short

run.

There is a committee involved for decision making who helps in the

approval of the plans.

At the top, the concerned individuals take decisions.

Slow decision-making and slow implementation of plans are also a widely

accepted factor in the UK.

Organizing

The UK Council is an executive non-departmental public body, a public

corporation (in accounting terms) and a charity under registration
numbers 209131 (England and Wales) and SC037733 (Scotland).

Although they receive government grant in aid, the UK Council is

operationally independent from the UK government and does not carry out
functions on behalf of the Crown.

Staffing

Frequent performance evaluation is done for new employees in UK

administration. Their appraisals are based on their productivity and
meeting of targets and even exceeding them.

The rationale behind this is to make sure the policies and procedures are
implementing whenever the time is right and there is no delay in any of
them.

Training and development is considered a long-term investment in the

United Kingdom and a lot of emphasis is laid out on the same.

Leading
 The United Kingdom is a unitary democracy governed within the
framework of a constitutional monarchy, in which the Monarch is the head
of state and the Prime Minister of the United Kingdom is the head of
government.

Controlling

The UK economy changes year after year. The UK government seeks to

achieve many policies including economic growth, improving the standard
of living of people within the country, controlling inflation and reducing
unemployment.

MANAGEMENT PRACTICES IN FRANCE

Planning
French managers see their work as an intellectual challenge, requiring the
remorseless application of individual brainpower.
Educational and intellectual credentials serve as finely tuned hierarchical
discriminators.
More focus is given to the Research and development department.
What Japan achieves through consensus and groups, France achieves
through elite convergence.
The ubiquitous presence of senior state officials in the private and state
sectors makes the conventional distinction between the two groups less
relevant.
Frances intercultural adaptability and readiness for change is developing.

Organizing
The design of French organizations reflects and reinforces the cerebral
manager.
France has a long tradition of centralization, of hierarchical rigidity, and of
individual respect for authority.
The employees in the top position make all the decisions and there are
told everything so that they can check other peoples decisions.
French organization is not only hierarchical but also compartmentalized.
Decisions, once taken at senior levels, will be passed down the chain to
lower management for implementation.

Staffing
They call for more cerebral qualitiesan analytical mind, independence,
intellectual rigor, an ability to synthesize information.
 Communication or interpersonal skills are important for staffing.
Most senior management is recruited from grandes ecoles which is elite
school of France.
Formal training is largely irrelevant, reserved primarily for the lower
echelons.

Leading
The more emphasis is on cleverness to those who runs big enterprises-
that is, they must be able to grasp complex issues, analyze problems,
manipulate ideas, and evaluate solutions.
All the top senior management in most companies encourages working in
teams and collaborates quite well.
French companies have the president-directeur-general (PDG), who
decides, executes, and controls company policy.
Military influence.

Controlling
French has controlled type culture and are adhere to schedules.
People tend to have a highly time scheduled and they are adhering to
performance to milestone.

MANAGEMENT PRACTICES IN GERMANY

Planning

The German manager concentrates intensely on two objectives: product

quality and product service.

The manager and his entire team are strongly product oriented, confident
that a good product will sell itself.

Places a high premium on customer satisfaction and Germans are ready to

style a product to suit a customers wishes.

Organizing

Common organization structure is followed.

Responsibility is quite blunt and direct.

Well defined structure of organization.

Teams as well as individual are responsible and accountable.

Staffing

Subordinates tend to respect the technical abilities of their superiors and

this will impact on their willingness to implement instructions.
 Germans like working in teams and across the hierarchical lines. The
communication within the team is generally quite collegial which means
they like sharing their responsibility among themselves they are direct and
blunt too. The role is allocated very clearly and people take great
responsibility for specific task than for the whole group.

Leading

Germany takes lot of efforts to show strong leadership skills and on the
technical aspect and concentrates mostly on product quality and product
service. In Germany the relations between managers and workers are
often close. They cooperate and coordinate with each other.

Controlling

German company works closely with the government.

German management is sensitive to government standards, government

policies, and government regulations.

MANAGEMENT PRACTICES OF RUSSIA

Planning

Middle managers have little power over strategy or input in significant

strategic decisions.

Delegation is usually in terms of managers giving precise instructions to

subordinates who are expected to perform their allocated tasks with little
or no discussion.

Organizing

Organization structure is in such a way that the lower managers do not

waste time debating with the middle managers who do not have an easy
access to the top.

Strict hierarchy and prefer to work in a team.

Staffing

Young people are recruited once they are out of school.

There is slow advancement in promotion of the position in Russia.

 Loyalty is shown to the organization.

Very occasional formal training for new workers.

Appraisal for long haul executives.

Leading

The boss - especially the 'big boss' - is expected to issue direct instructions
for subordinates to follow.

Little consultation will be expected from people lower down the company
hierarchy.

Russian companies tend to be driven by one strong central figure that will
make strategic decisions with little or no consultation with anyone other
than a handful of close trusted advisors.

Controlling

Control by peers.

Control focus on group performance.

Saving face.

Extensive use of quality control circles.

MANAGEMENT PRACTICES IN BRAZIL

Planning

Relationships are of importance in this country and subordinates and boss

work hard to foster a relationship based on trust and with respect for
personal dignity.

Planning only involves today and tomorrow, they do not do the long term
planning.

Flexibility is seen as positive.

Deadline is never a deadline in Brazil. In comparison to other European

and American companies where deadline is strictly followed.

Ability to negotiate.

While Europeans and Americans value planning in advance, Brazilians

usually rely on luck and on a practice called jogo de cintura, which
corresponds to the last minute way of accomplishing a goal by breaking
rules.
Organizing

Controlled-based organizations.

The capacity for individuals to be versatile and innovative in changing in

accordance with unfriendly circumstances and creative under difficult
circumstances.

Increase the recurrence of contacts and experience (contemplating or

working) abroad proportionately.

Staffing

In Brazil, employees are seen nothing more than employees. In other

countries employees are treated as partners.

Capacity for individuals to be versatile and innovative in changing in

accordance with unfriendly circumstances and creative under difficult
circumstances.

Leading

Decisions are made at the top. The process is highly authoritarian.

Mid- level managers do not take decisions easily.

Controlling

The top management has the full control in all the decisions and the
decisions are imposed not discussed.

Personal contacts play an important role.