The Evolution Of Management Approach In United State

Published Date: 02 Nov 2017

Program: BABMS

Module: BHL 6004 - People, Organisational & Society

Student Name : Da Sothun

Student ID : 1011007733

Matriculation No.: 20036300

Date : 12-April-2013

Word Count : 2879

Table of Content

No

Topic

Page No.

1

Introduction

3

2

The evolution of Management approach in United State of America (from 1960s to 2010s)

3

3

Analysis of detailed of United States of America (USA):

Leadership

Organizational Structure

Culture

4

5

6

4

Analysis of detailed of China:

4.1 Leadership,

4.2 Organizational Structure

4.3 Culture

7

8

8

5

Comparative analysis between United State of America vs China

9

6

Predictive changes in China

10

7

Summary

11

8

List of Reference

12

1 Introduction:

The objective in this assignment is to discuss on the change to the nature of work in United States and China. In the first part of this assignment, which is section 2 is to talk and explains about the management approach, which have occurred in United States of America in the past 50 years (from 1960s to 2013s).

In section 3 will provide more analysis on the leadership, organizational structure, and culture in United States of American. Next, section 4 is the discussion in the areas of leadership, organizational structure, and culture in China.

In section 5 will provide the comparison analysis between United State of America and China. As well as in section 6 is to predict on changes in China for the next 10 years. Next section will be summary about the assignment.

2 The evolution of Management Approach in United State of America (from 1960s to 2010)

USA is a most powerful country in the world. USA has population of 313,914,040 by 2012, and it is a free for everybody and has the same right. It is also free all religions, so that Americans can join any religions they want, however, from the report believed that 70% of Americans are Christians (Religion.powerforum.org, 2007). There are many ethnic groups in USA population such as from Mexico, Africa, and Asia etc.

United States of America is a developed country and industrialized have move to more modern technologies. USA industrialized including Automobile, Technology and, Electronic is the most major. Also they have natural resource such as marble, gas, oil, and silver etc (mna.org). From all those resource is able to provide in USA as well as for exporting and become the world most powerful country.

The management approach in USA has changed several from 1960s to the present. The first management approach is total quality management, which was used in USA in 1960 to 1990. Total quality management is to focus on employee involvement to achieve quality of work and control employees by the manager. Also to continuing focus on improvement of the productivity of the employees on producing goods or services, and to focus on customer, so that mean to make customer satisfy with goods or services providing (Poornima M, 2009, p6). As in 1950-1960 USA business could sell everything they made to everywhere in the world because they used quality check on every products or services to make sure everything is meet standard requirement, which is the total quality management (Edward, 2002, p8). Then another management approach is scientific management, which used by USA between 1960 and 1990. Scientific management is to standardization work of employees, and to measurement work of employees then to provide or by training skill to employees of using scientific device, so that they can work in specific area in their work. Another is to improve labor productivity of work or to allow employees to choose the field that they can be fit in (Frederick, 2008). According to the book about scientific management mentioned that during 1960 US used scientific management and that make USA firms success because scientific management approach is help most managers easy to control on quality of work in the firm, and it help improve on product quality and productivity of employees (Theodore, 1994, p156). In 1990 until present USA is using system approach, which is a concept that let manager see the company as a interconnected purposive and it consists with a few business sections such as input, process, and output (F.Heylighen, 1998). Input is a technology or fund etc. that make it through the process, which let manager review and then when the manager approve then it is become as result or product. So system approach is help managers to improve on organizational strategy, business structure, and efficiency of staff process (Stephen, 20012).

3 Analysis of detailed of United States of American (USA):

3.1 Leadership

The United State of American leadership can be described in a few types, such as directive style or individualism, and participative. Directive style of leadership is the manager in charge of everything such as decision-making, and this type of leader will take every tasks by themselves, it is also can be describe as autocratic (Harvard Business School, 2005). Directive leadership most likely the only one that has the most power among others in the firm, and they are not happy if someone try to empower them. As most American think that they can do their own work and have their own better planning or decision when or what to do their task, and also they believe that they can manage or control anything that will occur out of their way (Gholamreza, 2010).

Participative leadership style is leaders interact with employees or peer to do their task or create idea. Also participative is everyone in the group is lead to work together as a team to improve or achieve goal (Co-Intelligence Institute). American using participative leadership because most of them are individualism, so this make them try to make most people work together as a team.

3.2 Organizational Structure

In The United States of American organizational structure are hierarchical. According to the Table 1, top to bottom organization structure is chairman proposes the task to general manager to process and then general manager provide to other department such as legal adviser, secretarial archive, and executive manager pass to others department to work on the projects that have been proposed from the top manager (Fabian, 2009). From this structure we see that most American is using, and the reason is that this process can be recognized as individual, and most decision making is only from the top manager, whereas, others cannot propose or advice to the top manager. However, this type of organization structure that have been used in USA also have some negative affect to the firm because of only one decision making from the top, and it doesn’t mean that most of the decision will be clear or success. As seen in Apple, which is one of the biggest technology companies is using top to down management style (Adam, 2011).

Table 1: USA Organization Structure

3.3 Culture

The United State of America, people are most likely be find in Hofstede’s culture dimension, which consists of power distance, masculine versus femininity, uncertainty avoidance, time perspective, and individual versus collectivistic (Hofstede, 2001). As refer to Table 2 below, Power distance is the extent of which powerful member treats others that do not have the power also known as unequal on the power. As in USA the power distance is score of 40 because they are less socialize, so the distance between people is not relative close.

Masculine versus femininity is the value of men and women in the work place or the country. In the US masculine and femininity is score at 62, but it used to be low in the pass and now it have changed because US government is trying to make men and women’s value equal. Though IBM studied has revealed that men is more value then women (ClearlyCultural, 2009).

Next is uncertainty avoidance, which is the ability to avoid an unexpected problem that might appear in the future by propose the strict law and regulation, religious, and security measure. As seen in Table 2 USA has the score of 46, which mean that they have prepare to prevent unexpected problem in the future.

Time perspective is divide into two part are long and short term. Long-term is more focus on the culture perseverance and value thrift, and their persistence. Short-term is more on value traditional and more about individual, as to protect his or her own without caring about other.

Individual versus collectivistic is mean that one can integrated into the group or not as seen in the Table 2 below in USA is more individual because they are like to work alone and always believe that their idea is good.

Table 2: The United State of American and China’ Cultural Score

Individual versus collectivistic is that one can integrated into the group or not as seen in the Table 2 above in USA is more individual because they are like to work alone and always believe that their idea is good.

4 Analysis of detailed of China:

4.1 Leadership

In China the leadership is everything being control by the head of the group as Parent-Child. China is more on directive in the leadership because everything is expected to be command by the leader then middle manager can follow, also leader are responsible for the high performance and goal, also they have many rules and regulations to follow, however, that can be describe as autocratic as well as bureaucratic. As in the article from China Labor Watch about the Apple supply chain in China, which is demand their worker to work so hard and have strict rules in the firm because everything is control by the head of the firm only (Li, 2012).

4.2 Organizational Structure

China organizational structure can be very much influences from the fact that the country is control by the government, so in business firm is also control by the lead of firm same as government. Organizational structure of China is top to bottom also known as hierarchical organization structure, which is everything control by the top player or head leader, so middle manager can follow. Also this type of organization structure the heading of the organization is always the one that has the power to manage and make a decision, and they are more like a work bee, so that they must be very efficient in production and to reach their goal with a good result (Vivian, 2011).

4.3 Culture

The culture in China is also can be define under Hofstede’s cultural dimensions, such as power distance, masculine versus femininity, uncertainty avoidance, time perspective, and individual versus collectivistic that will discuss below according to Table 2 above.

Power distance in China is considered in the higher rank because Chinese do not believe in equalities among other people. Because of that, they have no right to have a conflict or argue with their boss. Most of the time, workers in the company will be influenced by the head of firm (Stefan, 2004).

Masculine versus femininity in China is score of 66 in the Hofstede’s chart, which can be consider as success. The value between men and women in China as the society is willing to sacrifice family and leisure, so that they can focus on work. For example both male and female hairdressers in China will do their work until late night, and other such as farmer or worker willing to leave their hometown and family to get a job in the cities with a better pay.

In China uncertainty avoidance is score of 30 that is very low. It is because of the social circle, which is the concern for rule that has been assigned by the government or head of the firm to control society or firm. And the law and rules of China is flexible according to the actual situation when have an unexpected situation (Jason, 2012).

Timer Perspective in China is relatively high at 118, so it is the long term oriented, as persistence and perseverance are normal in the society. Also, ordered is observed, and ordered by status. For most business people they are also tending to be in long-term project. And tradition they can easy be adapted and suited new situation.

Individual versus collectivistic in China is score of 20, so that is a high collectivistic culture, and people act in the interest of working in group rather than themselves. As seen in Chinese’s family they tend to promote their own family or group rather then promote others from outside of the group (Frank, 2009).

5 Comparative Analysis between United States of America vs China:

In comparison US is one of the top players in world and China now is the second country with higher economy in the world. However, they both have some similarity of leadership, organizational structure, and culture. From both US and China GDP, the two countries have high remarkable rate. Another is that US is more focus on human right, whereas, China is not pay attention much on human. In US have private property, but in China doesn’t have, which most property in China is own by government.

In US leadership role is ruled under several style such as directive, and participation. Nonetheless, from this is knowing that US can work by only one top player in the company, to direct and guide the firm to success from leader’s believe. However, in firm leader can be work as participative, so that they manager can involve in the work with employee, from this point everyone can share the idea to manager and will decide to take the better idea, or to work together as teams. China leadership style is only one and it is directive leadership style, so everything is control or order from the leader only.

The organizational structure of US and China is the same work under the hierarchical structure, which is everything control from top to the bottom, but China is more strict on the work flow in the organization because their rule. From hierarchical leadership structure is they believe on the decision that they have made and must be done with perfect result.

United States and China both culture can be describe under the same theory of Hofstede’s culture dimension. It is slightly different on both countries because US is democratic country, whereas China is autocratic (republic), so every managing styles in the firm also differences. However, masculine versus femininity, and uncertainty avoidance are almost the same score from Hofstede’s diagram. Power distance and time perspective China is has more score because they tent to be more control on other plus they do not believe in equality, for time perspective China is taking more on long term rather than short term.

Individualism versus collectivistic of US and China both are different because Americans like to work alone rather than work as group or to promote their own family in. However, in China people tent to promote from their own group.

6 Prediction changes in China for the next 10 years:

As prediction of changes in China for the next 10 years is China will become one of the most powerful country in economy and they will not change their current strategy of controlling from government row as well as investors. It is because their current strategy that they have used for decades such as leadership style, organizational structure, and culture. From that business people in China will gain the advantages because most firm from everywhere around the world is shifting into China where have cheap labor and have rapid growth of GDP for decade. On top of that from rule that government create for country to obey for the people in China, so most leader and manager can control every easy just follow the rule. And it can be refer to the individual as a leader. Another is Labor wage China is low, and it has increased slowly, so in the next ten years it won’t be change much. It is also China government proposed that they are welcome to any business to come in, though this will lead China economy grow bigger in the future.

Also it is a place for leader who like to use hierarchical structure, which they control everything in the firm as they want. Top to bottom management style is more controllable on the work in the firm, because none the staffs can be argue on most of decision that manager have made. As a working pattern in China is under the bureaucratic, so that the worker is working in the flow of the firm. Also it is because they unemployment rate is low and remain steady for a few years according to TradingEconomic.com, which show investors that most Chinese is willing to work. If we look at the population in China is large, which is another reason to show that in the society need job, though business will move to China. As well as in China the society is like to work as collectivistic, by working among their group without sharing to other. And plus the society is willing to do job and sacrifice their pleasure, and family. So this also the reason why China will still remain the same because they have adapted their culture and used for long period of time already. By looking at the aging population as Chinese government propose that one family only can have one child, so this will make China has less younger population than elder. And the result from the law is the government needs to spend a lot of money on providing healthcare for elder generations.

7 Summary:

For overall is US and China have some common and non common in term of management approach, leadership style, organizational structure, and culture. US is democrat country, whereas, China is republic, so the rule between the two countries are different. As US is free for all and more individual, and China is collectivistic. From the assignment we can know clearly about the US and China, leading style.