Comparative

Management and
Administration
A BOOK OF READINGS

_rt!?!flW Second Edition 1ltTlMt!!!!C!T"

.'

Edited by
O. J. K. Ogundete, PhD
Department of Business Administration
and Management Technology,
Marketing Unit,
Lagos State University,
Ojo, Lagos.

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 Chapter 3

Theories of Comparative Management

A)'antunji Gbadamosi, O. L. Kuye and A. O. Adeoye

Introduction

E.
SSENTIALLY, this chapter examines the theories of
comparative management. For clarity purpose, the
chapter begins with highlights on the relevance of
theory to comparative management. Since it has been
established that the past often guides through to the present
and probably the future, various management schools of
thought are also reviewed in order-to be.able to appreciate
the link between the schools arid existing theories of
comparative manag-ement. Existing theories of comparative
management are then discussed based on the perspective of
the' scholars concerned ..
Relevance of Theory to Comparative'Management
The relevance of theory to comparative management cannot
be overemphasized. Although some argue that it is abstract
and has no practical use, theory is important to all managers
today. It is common to describe it as a systematic grouping of
interrelated concepts and principles that gives a framework
to, or ties together, a significant area of knowledge. By its
nature, it can also be described as a conceptual framework for
organizing knowledge and providing an outline for action.
"Comparative management provides a forum in which
man.agerial practices in various environmental settings are
analyzed with the objective of identifying the causes of

71
 72 Comparative Managementand Administration
Theories of Comp~rativeManagement 73
differences and similarities in managerial behaviour and the
attendant similarities and differences in organizational •.~ ~ matter?ffact, the practice of managem~nt can be traced
results or performances" (Fapohunda, 1997). ~h~cwto t~e time when. people. first attempted to achieve goals
E~i:king. t?l~eth~r~l1gr~u.p~, Relevant examples are the'
Since comparative management deals mainly with the .'. ~an CIVlization, and the Roman Empire. While' the
analysis of management in different environments and .the <~gypt!~ns used. the management functions of plannin
reasons" why e~~fpn~es' show different results in various rgam~mg and controlling when constructing the. gt'
countries, theories of comparative management are yramIds the R . E' . . grea
..
":'<'.! oman mprra put In place the definit
concernedwith the methodical grouping of interdependent ~;r!~::tlOnal struc~te ~~a~aide~cominunicationan~'
conceptsandprinciples that gives a framework ofsignificant
area of knowledge which contributes to the comparative
"t.I,:, o a great exte~t, So, management dates back thousands
9. }g:~~s..To be sRecific~ the three traditional mana ement
, analysis of organizations within an international context, ~" ~::
~f.spechves were classical, be1:iav~oUriaJand'quanti~a:fi~e; , .
M~k~ts have beco~e giobal, developed as weii~s de~eioP~~r I~.~
Cl~ssical Perspective ' .
economies are becoming, increasingly service-oriented, and,~
't:~r
~~;~,s's~far,p,~rspectiye of managementinclud~s two'
rapid. technological advance and their swift qiffusions aCI:os~;~<
-the.world have begun to spawn ,8. new economy in', many:~ aJr:f
t ,~ppr~~~~es, namely:. scientific rn:anagem~nt and
':7.'f;i· ,~tratIve .rr.umagement.·· .
countries, The business of doing business itselfhas transformed," ;:~.~.<_ '. ·-.:.1 .. ~

Since.some of the' old, 'established management tlleozi.es Aa'l!e\ fl1i!ti/icManagement

already become obsolete in this new,environment, attemptsare.
beingmade to discovernew frameworksJOl'~e,studyofev.Qlvi.ng~' ':,~~¥Bt~~stadv9c~tes of the, scieatiflc manag e'ment s hI'
·tllOU ht '. 1'" .d
business and management practices.Put differently; bu~irie~s,':" '".-"}! .: ,g . I:U~.U.e ,F'rederick '. Winslo'w . 'I'ayl . F c ' 00k .
.oreth LIlhG'lb th H .". ; or, ran
models and management paradigms have been shifting' f<;>i'r. "';'\". '~'" I,le ! .~gt~n Emerson and Henr
, some time now (Sharma, 1999). .. .' c." , .•,(j~~' ~o~ever, records indicate that due to his dOInmah;
f t.. .. .j
'_,,: .~..
{ ..' "
.. ,'. I ' j ,! : r' • • • ~ :.)'j ~~~c·<t\~tJ,;Q·,
, -: ::' ; '_:.,
this .sch,?ol of thought, Frederi<;k Taylor was.
An Overview of the Evolution of Management Thought~r ff~wledged as the. father of scientific manage!'lle~t~'" -.. ; ,:
lIidis~ussih'g th~~ries ofcomp~nltive ~agen;t~Iit~jt l~. ~ Ei"priml;Uy fF . ,...
:',
~I~d:,..,' ~"::. .cpn(!e~:p.re~!3;nc~, ra~Iqr iWA~:to.,4l~fea~ei;
important to note that management thinking i~1,1Ildergoirig ~~\.~~ ..~CtIVltythrough ~e~ter efficIency. Taylqr Hedde<rtliiit'>
a profound transformation.evenaf the global level. However; o,~problem
" >(-t~rb' ,.of pr, OductlVltywas
. "', ., ." caused by' Ignorance
.. '~""':';"':""<'h~",'}
e- .;
on t e .-
it ..-is . ofsigmncanfrelevance
- '. • •• ,:""..
examine
.' . •
to
the
-
historical
--, -'. .,:
context
• -. ~ ." .. i:' .:F~J~fr: otp. man.agement~d 'labour; Part of'this ign.·::brilh~e:;;
ofmanagement, This will not only allow one to appreciate . om.the fact that neithsr.manager n o'r"~w' ·"o'·r·l~'
"";r ".....
-'~,H' ()~~
" <. ';lL~''':~'';.t
A.erSlUlew·
the :p:liini insights, ide·as,.QP.inio'!1s,~nci methodical /":~~:kgpns~ltuted a-"fair dais work" and afaird """'''.;:'' ~;.»:.
underpinningsthat preceded the_eXpansiQ~i~·in,~~geIijeri.~ '.,:,eJhnch' and·K·' ·t'.
oon z,1993). , . .". . ."" ."' a)' s, pa)':",,'"
.;.- r , .;i:t" .,;., .: ,;
writing in recent times, brit also guide one so as' not to' waste"
-"'S'>';.'","'~~.
·:~~t·.....
'.''.' ". ,n:.':::·'''''.''.-:··:
efforts rediscovering what had been discovered earlier ,by'! t-:h:~~i'eps in sClentificmanagement ure.to: ...(,~.'.,."
~: If!. Develo . £ ' .. '; ., .
management precursors and scholars .. :6t{(~h""<ldPa science or each element of the job to replace,
. ::2i ~:iit{r-,,-~0, . rule-of-thumb methods, . '. ".',
.~ -.".<+"o.8e1ect em '1 '" " '
". F'::};::~<'('t·li' " ,p oyees scientifically and then train them'to
0 :~il.f~~:i{:.
e job as described in step I above, :",,-. < . , . '.
 I 'Theories of Comparative Manag~ment
Comparative ManageJ'!lent and Administration
74'
• "Supervise
".. . '" d employees
th d f and,ensure
f . thei theyb follow the' '
gynarnic and complex organizations. JI. sid 'fr' .' 75",.'
"presenoe me 0 s 0 per ornnng err JO S, " , ' he school.was criticized f , , =1 e om,the.fact, that ,
• <.C_'.,. ',on,'
".tin4e' p'lan to work, and use 'workers to 'actually ..M,.T,esoUTGes, critics
. .. '. also contend th t it A'_as tools -r" ,: •.
. ,~ h'O',.' . "' .,', or.V1~wmgemployees rather
""x".'",~"
h " et, 0,'kd, . ,', " a 1 o,,,,,n prescrib 'd"
,~ett e wor . one, ." " " 'd.';:ersal procedures that are inappropriate in SOme set~,"
Admi#istratiiJeManagement ''', ,.~~l" 3,1: Fayol'sFourteenPrinciples01 EffectiveManaqernent; ',;".': '"

Tii~ad';'lllistrative school, wM;'histheseoond

classlc;U,perspeCtive of management, focuses on nuinll!iing :'
arm of the '. ,,,,n, ~~;t '
degree,ofspecializationshouldresultineffici~~~'t'
the ~ prg,;;;i~on,Major'c<intributors were Remi Fayol,; spec~::t?o':,n~1andtechnicalworkare amenablet.o, '
Mi>i:¥!~~"bbester Barnard and,Lyndall urWicli;, The~jo,l';U
proponent of this school ofthought was Himri Fa y61. He'!,\ ~':ig~~~t::;~tiO .. . .. ..' ..
carryoutmanagerialiesponsibilitieS: '
categorized industrial undertakings into sjJLgrOJ,lpSvi';;("'\', edfiomintellience':,~r~~~!~~alauthorilYd9riv. .
.
techni~~l " (prQdu_ctiQn)~~ommercial
".' (buying",Elelligg. ' ,an4;")~;. theorgea'nnl·zaeto"orn9an,.··
Peopl ' fhe orcaiiia.tion.mu,s
.t.respect therules thatgovern."
"",
exch,anging)~ financial (search for_and .op~~IP-\l.Iii1i~,e.ot~Yi
ea pitall, ssciiri ty (protection. of property iind pe~sii.w X:'1'i , ,.' EachsubordinateshouldniPO~to~ne~ onlyon~superio'r,
accounting (working on statisttcs.of costs, sales, profitsaila: ,i;
loss), and managerial (planning, organizUlg, leadi:ggia,ndi& gi1£~;'i': .•.. tSOigmeitl'ah
errauctnjYdieti~Sjn~J1
Orga~i~atio~~~~uld b~groupe" d'"
controlling), rhese six activities exist in business P'lll!Qllza·,~' ., ,'., " .. ,.onemanager 01 p .. ."" .....
tions o£every#~:Qoing by tli~view of Giiff.i,h( 1~9&~:fa~()r.~ $'".iWidinationi, Theinterests01 indi~iduals~ Id·~'
wasthe,W.l't ~'identify t4 bciU roahigemeM furii#,~ij,;5"
e
i1~~~~':,a~~~
. goalsoftheoveralloi9ahiz~ti~, n ,e laCed belo'e 111.
of P~g,
, . _ . ." .. o"g!inizing,
.'
e s
.'. leadi:gg
....',and ""np-olliPg,
.... ,,', . ,c ".,'?
_,,",,: ;: (jrggniiatfon,'
R[til,fn,.hition C ' ..
: o~~~~satio~~~~Urd ..
b~fairbothto: employees . andtothe

, Based on "ills experiilI\ce,ThFayollistedh fourteen T blprillciplesof':t

b 1 . -~ ".,
G~j1trafrzationPower d h . , . .'" , ' '..,. er" -,::, -r :
e active IIiaiiagement; . ese are s own in a e 3,1 e ovl":,({:;lzv,': .' I . I t"" aut orityshouldbe concenirafed'atthe'upper '
fii
o. '_~~b."·_'u',·tio·ns
,~.. tuu.•• ",...•tic isms..·....
.. '.c.:.-<J_-~.:
C !rf.a,1J,iit~1irejit' '" .'. "/",,.,
of
o..,t·he-. Classzc", a' l'l':.e·rs'
",:pec'

"
",: •. ':e:.·
tiv·.·
,,1 ::~;
..~.;y.' :v~~ c am.,t;e,~~g~nI?ation,
0 autho,rityshouldasemuchas
xtend'from th~jb' 'tot'. "., : ..
possible.
tom01 theor anlZationandshouldbeloJlow.J'aialr~ll~\ '
The ~!I,Ssic,alSPIlOQIhas [aidthe fQW'da1;ioniI),manageIqelil>' ~~~~~ilhd matenalresourcssshOUldbi.co"'rdinat;;7~.'
th..~Qry:lipon which. related thougl;..ts are being built. Jt-, 4a.-,
. e"-'ty""",_·
';;:i~~: ::_',~', .Y qr~Inthe;n~qulred.placEl
" '. sMabnadQe-rs
should be.kind·an. atthe requireqtime;
d talrwnen de'a'l"I:O;~'w""
'It'h'-'
-c -, '

ackp.o~ledged Qasicmanagement processe,s,fUI),cj;j:9ns,a,n: ,..' u or Inates", , ." ,.

skills that are still relevant in business qrgapizap~ms ~~;:PI':!i!I!i~:.", ' Highturnover ofemployeesshould~e~VOided,::>:;:if" '
and identified management as a valid subject of scientifi , "q'~~"ve,·'·.' Subordinat ' h ' ., . ,., .. ' "'.'''''' ,
enqu..
~>','rv.' that c''an'"'u~~'~,de
l:':'e.,~ta:
utght 'and.'lea'rn t'.:" .. ~..' ',,:::' , '-.' "'c,',"; corps es,s ouldhavefreedom10
" takeinitiatives
" ; i·,·
'. ,," ' -,
. _ .,,_:;;:,; n::~~~iJ~a~ S~~l'Itl~nd a se~se.ofunity·arid·tbgether~ .
TJilii\,krspedive(Classicall has ~en crititlzed on cert,ilil, , ' ." ,. , e osere, andmamtamed" ' ,
issues, 9riticsarg\l~tha t the, cl,nirts afthe ,~choQIai;e· illore1 :., "Griffin(1993) Managemen; u d" ." "' •• ,. , " :; , ,,,{
suitable forstable- i~~ simple orgaillzations arid not for ~day's;': ':_'-''1 ,c,.,:'<x,:,:(-I',
. (da~te? fro,m Henri F~Y~l:
,;;~o;-~ ;~~r~1
~~~g~~~~::;:~~~rJa°:;:any. .as "
., '.
l ;f~~;%;'
Revlsttd Edition). C,:.pynght © 1984 by Lake P 'br' n'""C' ge;me1},t"
Ing om~any, ".'.'
 , ! Theories of Comparative Management ;.,.71

76':' . Comparative Management and Administration , ';~lieve that contemporary research findings in behavioural
~~nce are not always understood by practising-managers,
The ;Beh8vioural Perspective i~;Y 1 ,

~e QUantitative.pe~i>ective, ,<. ::-';"

A5Iri~iiti6h~dm the limitations of the classical pe~ive ;:":
ofrii~i~~~~ent, thought, ~t of the cl8.SSi~ s,c~:u~l~ion~rs .~'. :' 1"~.~a.n~tati:,e P:7~sP~v~ is an approac~,to ~a~;~t
conSia~r'the 'iriteraction' of jobs; workers and 'orgamzations ., w,hi~l:tquantltt;ltive techniques are applied. As a mattenof
from a mecha.~istic point of.view. The· behavio~raL,,:· ~? ..~~;te_are 0/'0 branches
of this'apprQach.TheSe;~re
perspective emphasized individual attitude and' behaVlour , ~;J-j~~~ent s~~n~~ IPdoperations management, While
and grouP'process~sin the workplace. . '. ,.-;;' "1>"'y' .ment,~~~;.fo~ses. 8~~Cally on ,~e develop!ii~nt
Promiriellt'oontnbutors to the school of thought, were Htrgd'(!
y~~W:~~IIJ-~~lC,~,.mQde~s...to .aid ID decis}()n-~ak4t~, and
}~blem-so~vmg, operations management IS somewhat less
.~tz1J~rg1,~1~t?-Mayo, Douglas.McGregprdmd" Abr~m:.~·: .}l~~ematlcallr. and statistically sophistl.cate'<i':than
MRSlow:llugo NUntzberg was_acknowledged to be ~e rather, . ~<.~ement science. Its techniques areconcerned.with
ofindustOa),.Psy<=Aqlogy",and ~pplied pSYchO~ogyto ~d~tIJ;/ .;!p'tng the.organization to produce its goods $:hd;sennces
and manag~ment;. Elton Mayo became faJ.'P.o~sWl~ ;b..'i!it
, :e;-effectively .. The school is the newest of, the ·three
contrihution.w the studies, on the impact of SOCIala~'t!l~~!: ;.:~ement perspec~ives andits proponents, l~d,:hy.,H.~U.
and relations:hlps.of workgroup~ .on perforroan~e:.~ " ,.I,ackett, took some of the mathematical methods
development of the popular theones- X~d Y .whielr be ,el~ped'by Frede;ic.k- Taylonand his,contem~~~~~~ ~d'
representsthe essence of t~~.~~;.e.lati~~ ~ove~~~~
credited. to" Douglas McGregor; while Abraham .Ma~~o
Jied them to Iogisticalproblems during Wgrlq
:!,.( ~'~."'... e ," ".- • "., ".' • ". ,.'
:~ar;n.
p'ostUlated' that· everyone has :f~ye.b~sic~~~~i;~;~W~; .tribu:fions and 'Criticiiins. ,of 'the .QU'ci.iiJitiiiive
constitute a need hierarchy. These theones have ~e~v~",.:<-~ )pective , -.' . '. ' .:. '. . .
. eat:de'al'of a~ntioI). £row inWrpatiQn,al J;$IUigeJ?~~,; '~:13~:~the
eritEirgence riftlie ·<jtiimtitative persp~tive:has
~sear~ii~rs,and 'have
significant implications-.fQ'· ~. 1 ,,~ ~ecrm.on.,.inaJdDg·:andincreasednuin.'sawareness
.cOinp~tjve management- derstanding of the, complex organisational.proeesses
Contributions ~nd' Critici~ms of the B~havio~r.,': < euse of .quantitative teChniques.·/fhe:~qil;antitative
Pet$pekt;,~e,:", i' . •• _ ",' , __', _.J' : ~~e:l0ped by-the -scheolare.otdmmense.relevence.in
,> ..' :g,;'and·coiltrolling;processes inorganiZa.tj~n'§:)
N~"d~~b~'::
the ~Vioural schoofhas contributed a gre$
dMI.tO,thi<leV'.elQPdleP,tofm~eDj:ellt
It has provided an insight into in~rpers~nal~~oCe~Se&L
workplaces such as group dynannC$ an~motn,:atio.n.~:
~h.*ugl1t~ g~p.~,:,.
:'::it4~~~~,aPj1t:m~~
of
.~ -_9~ga~~ft~!~n~, anc;f ~;n.afmosr' thitIlitaels
1..~11
c.l.~.e.~ ed.th . ·ti··.O!l. ··that e.,
... _,_~ p.a._ mplovp.p.sare
..J .••7 ._ .., tools, roam- .-, .,' .
- ... ' .t_ '-,

$B;t ~ey·are valuable resourcesand.:f3l1():U~~~'~.~. ;.

s{iclim -org8.iUZations.::- . "

beh~YJ~ur: B~sid~, the predicti?n of h~

.. .
Nonetheless, th~'school has been criticiZed on the grou~t:'
thatjt is not precise about its ability .to predict·~~~~,
beha,?9U;:ih
someWhat difficult to make. The critics of this perspective ',.-("
..
~iiji~ii~~
~l~(r,a.bove. This
~~
~:i~·~~·
.
IS because -acritlcal'eXiimjriatibIf of
-
 \

'78Compe ,qjanagement and Administration

\
, " TheOries of Comparative Management ,':'79
the three (classical, behavioural and quantitative) will show
that each has. something ofvalue. to offer.hence.the integration ,t,}ivergent' situations:bne fi d s»,

will be very beneficial. The integrating perspectives are: the' : ;~~puin~geriaI practiceth~tare i In s· ?ommon threads. in
systems and the contingency perspectives.:'" ., ., i;:thewaves .of technolo "co ncre~~mglYBtren~hened~by
r~tandard~zation CNan:;~ll~etItIon, connectIvity and
The:~jstemsperspective to manageirieitt 1£".6f the view th~t, . i!~~o~p:u-atIve management is to " .199~).T~e essence~of
J:~fconsidering orgariizations assy.steWsLiIi~.#agei~ 'can : ,::~a~t~Vlty,effectivehe,s-S-'and effi ~xplam how I?a~agel1aI
'~tter Understand the importance oftheiFenW6DiD:ent~'and :I?etweenperiod$of man . lCle~cy vary dnT;ergently
. the level of interdependence amongsubsystems' Wit1lln the; .~~:;, .'. <s:'>: ~ement evolution. (Fapohunda;1997),
. organization, Also, they must ~derstan4h9W ~h~ll:d~sibns f?:ne .~aJor lII1pIication or' thema" "', ", ,',., ,r '
affect i~~ are affected by other s.ubs.Y$tems' witp:.#l ,~he;~ ~:!I~ghhghte.dabove is that mosti t~gemeIJ~ P~I'spectives
orgamzatlO~~. , .': ;C: ,;,1}p.!!erent,schools of thought· were ~ th~ 1?Toponents of the
.-. , :-j . \'i~ ;,S ili!;~hus, theIr views of'rna nageme t· om different countn'e"s:,
t,·',";, .
The cdntingertcy perspective stresses the fact that managerial] :~"Z:fiytheit envir . " .'. n s practice were intlu d
S;'f.,.., '. ", yu onments and what 0 ' . .ence
practicedependson circumstances. It acknowledges-thei !.:~e £tom the'United:State . perated there. ~e some
influence of given circumstances' OIl organiaatronaf pme from:' France..' '. s, some wr~te fr,omBntain" and
behaviour patterns. While the classical.vbehaviourahand' r;;;o rtes
.~.: and::~.~.Models
';. .., of' ....' ,..' .' '.' - ..'" '.' ,
. quantitative perspectives are knowntobe-universalbecaus i»:

"':.,..
"".

.' .' " .

C' ..

.o1!Zparp,tive Man
, .• : .. ;., c.,."', '. , ....
.'
-they attempted to ..identify: one best way; to manage-won ,There are different.theori ,':'. " ... Cfgem~~t .
s8"ttii1'~S',:"the contingency perspective contends,;thi ',.eveloped for comparative es and-models specifically
appropriate managerial behaviour iscontingentonuniqtf /,at they are not as old as ilir::,~~~r;:ert. ,Jbe !act" rem.mns
e1emerlts:in 'a given situation. . ~;.,',;,.' . '~":''' ~,':
~ , . - ,: : ...• ;~;, ":.'-> ,,' -:
L::
'-I ~:~'.'::.
.anage~entthought~,.and s: "e~,~l1ssedm the 'e~bl?tion of
J~mparatIve management'l'ts ·lhf... easlQn.Jo,z:this ·IS.. that.
ComparativelVlaIlagement~~Mana~~m~~!~'r=: ."'. . , ' ' e IS a re ativ 1 .' . .
,~.~agement,whlch wasmostl .... ,.... e y new area of
Comparative management, which provides a comprehens ..' ';,~easing global transactio'. · Ydro~o.t~~ as-a r~~n¥tpf~he
."'analysis' of the cultural determinants-that :actup:: k,;jl~p~eS CMNCs). ." ns ~l;lctl.Y:LtlE~~of~uJti.9~tiona1
being. an aspect: of managemej
,·intetiiational"business/
'.. takes itsroot from the perspectives discussed. above. At •.,., o~ tra:' , " {~tii~~i4NCs,
n$~.~.ti9natcorporatIons (TNA!')':.:'~""
r ',,:, ';. .r.:»>:
..cpnnng to be kA ." .. f·<'
.• ~I., .' "." '.,' " ' ....

. moment, 'a;great number' of-researches have been carti:~ =r '. . •. vS"asthe

, . ibhal.b··,··h"d·:;-;· ,,.P1YR', ~~~ the world as: ons"":, 1-' y
'. outanda. lo~ of books" wri.tt~J.:l~.a,boutt~~.~~~~()!.~~~c~,~W '. "£';/"'''''; a the ,~~., ".q,Wl aries are lITel' .' 't ','C': <.' .' ..', ",' .. marKet.
J.v..' t'" :C!'·;·'d. <.,., ;.' ~Van ID the efforts orTl\T'O"'''''
...pr~ct.i;Cal··aspe9t~·of ~aIl,~ge~~~t,. S~l;i~J*~s: 1~.~·,A.4.$g, ;""~~;'fiG"
.:t:ICe 'and
,~9Rr.gesofniaterials'>
r'a':';:' .s>; ~,.... '. ')', !.pr'?,
"'!"'. ',-,'.;,. : ,', ' ... ' ~ .I.'4",s:to .
ucegoods at tIie"~l'''' .....t
d'

Ma6Gre' ...
' .•...,...
, ..,. lse , ..... ,
?aRlt~l (or operatIOns' E" '1"1 .. i ' • ,·.~)9w.~s
s »

" A£gyns~P.rucket .' and 0' Donnell;

;l{rioot~ ,' .J~or, Silito,
! .' . • ,

... ,..... ,..... , .".,,' '-e=;;;d"'x' "'",:,.;

., and many others, ate' well-knownauthorities in this'fir . ~;,,~;)~~~p~t~.rs
·s ...,0. Ai?
lS,IIPIIiaten' FAif~'-;, ,.: r. ve;t?~~~lOn 'of the
<..··,~.·.ucl·n··e··t··'·'.·A···
BS In ,". ..' '.,,, a,. , aTNClScondu·ctln··g.. ., '·'·m'..'·os.. ·t 0f
From' a methodological point 6f\t'i~w;;tlie~s'tudy' of:' ·~r·;~,,~;ge·rtieif.tp·tes:ln·~c,,~~~·P-\~··,opehlti6ri,'n~'e9-'s[!antop
management practices ..provides an- iIl:t~l!~~tjpgiinduc ." . e Ilhere' the TNf"'l"'- '11' '"
q...natters' th~re' '.:I~(t·'t' .~,.,' id "., \:I' ~1i.;' ipbve;·::'l.· t. s
C·H'o····d··. .
....·wgth()dfQrthos~ who wishto get closer to the Wland sc~~~ ;,) usiness activit'. ge s an Liith'
. b ······199'17.\
. '; ans,:,';, rh .\
i1i;'J.':oda-y
::::9.f.m~~geBar pr?ctic~,'As anal1, rri8ilageHpJ':pra~'tic~!v~:. .. """1, res are global InS ""'F"""~"" ,.,'
,".:across' 'situation's' of busfness,' cultureand _;.:,":>:..
'-;-.:::.:-.1, •.. :Z'!."" ' ••••. '
'pOlitics.
i

ACl~'
:._:~:~;.•.... ';,.".~ .• ,
.!., _ ..
"::d"po?gy, research,
<:'.".,:UctlOn facilities
!.'
capital
and m an. mV,estI?ent flows,
d ~~a?c~, ==»:
.·orks, all have global di a~ketIng and 'distriButlon
ImenSlOns (Cateora; 1996).
 \
~
.,
.

} ')

80 Compar::~hI Management and Administration

Theories of Comparative Management 81
In his own perspective, Aina (1996) contends that globali-
zationdepicts"thetransformationofrelationsbetweenindividuals, :'~ .,'r: "',; Affect
groups, institutions and states" as well as the uniVerSali-·,tj'~:;'~':\:;;' ., I
. zation of certain. pr?-ctices, identities an~ structures, and,~, ~~~.'~ i:.. EXTERNAL l'
perhaps, more significantly, the expression of the global ,;".r ,."'\'! ".: :CONSTRAlNTS ELEMENTS OF
restructuring that occurred in recent decades, in the structure :~!J~~~.::~ THE MANAGERIAL
of'modern capitalist relations. In essence, comparative ..::;,,~jJtS:')(".: Affect PROCESS' MANAGEMENT
~an.agement the~ries are new issues and are still developing .:,I~f,i·;~':_'" ,:" r-----a./ Planning,
r--A_ffe_c_t .1 ~AGERIAl ,.,=,
IDmanagement hterature. :·.1m~~:,'~~·':·~
:EducationaJ, Organizing, r: EFFECTIVENESS
.. ",. I... ., Sociological, Staffing,
The first systematic attempt to study and compare :'··~r~~;/~,'. Legal-Political, Directing,
management practices across nations began with the works .·.a~·? '.
,Economical Policy-making in
ofHarbison and Myers (Tung, 2008). They revealed that the -;~:~.j:.; Operating areas
manager is a .critical factor in ~chievin~ eco~o~c success:.~~~<':.'·:' '-----_...1
The manager IS a ~atalys~ to the mterac.tlOnexisting be~e~n..~j:;~:xg:<::.
economic and social envlro~ments which le~~s to economic .'~l,p~·?:j~~,'i:
~hange~ ~d ~lso hypothesized that economic progress a.Tl,g:, ;~.':::.<-:~
- industrialization depend on managers (Fapohunda, 1997)., :-;~;.-;'':i" "
~Ib. Determine , .

". .' . .: '~';~.

,.\:;~::,....~'.. . , FIRM
The Farmer-Richman Model . ·h~1t.~,·j:~~:;;
....,aR~, .. _~,," .
" EFFICIENCY
The model accentuates the interaction 'between a business~J~,:~!~S(,>;.,
firm and its environment. Professor Richard N. Farmer and:~s ..,:?:>: .. , Determine
Barry M. Richman 'were great scholars and pioneers inl.~ ":;.:~': :" - 1
comparative management. Basically, in their work title4~l·):-: .:~'.~.:'
.SYSTEM
"Empirical Testing of a Comparative and Inter~at!onal·::1~:~:.;';:~:;.:·,. EFFICIENCY
Management Research Model," they gave the description ,oflig":':" "~
the constraints that can have sjgnific.?-TIitIP;pac~'on t,~1~:\i~:·:if~.,e~~}·1: The Farmer-Richman Model for Analyzing Corn aratlvs '
management process and manager ial excellence as,:~'l.·, :<g. . P Management
. '. . h'" -",~:h~",.· ource.Koontz H andO'Oonnell C (1968) .,
..:/: ' Hill (4th' ed,), as ada ted ;ro~ F . Principlesof~anagement.McGraw-
ed~c~tio~al.::ariables, .socio-cul~ura! ~d et. rical v~ri~blesj..~".~lft':~,~~;.,.i.:
poh~lCalvariables, and economic variablesin t~e 15u~ID~SS .:'1 ::"r:'\t~::: C0f1}parativeMana;ement anda~~~:n~' ~~~ ~,chman, B. N. (1965).
environment, As a matter of fact, these pioneers. of:~':J.;\>:\:'i'~.·Richard D.lrwin, Inc." ". 9 ess. Homewood, Ill.:
comparative. management were the, first to identify the;i' ,:i',,;:;;'::'< " " .
critical elements in the managementprocess and, eyalu,~~e:i'·.<~:)l·t"e;'Yeghandi-Es{aphen Model . .' . :...
their operations in firms in different cultures. .·.·)11$_·L./~~~e,second m~del f . .' ".,.' .
~;£;:-..,:,;<·N. egh d'-E' 0 comparatIve management IS the
. ';;'~:', , anrn staphen model shown' F' 32Th" .
--:r' ,...
concernedwith the t d f ~.' m l~. . '.' IS model IS
'.J~~.:. the attitud f s u y o. tYI:HCa1behavioural patterns and
)e,f: : ': 'manaO' ' ~s 0 m~~ger.s m dIffere,ntcultures as well as the
t:l '. '. gers ?nteractlO.:lWIth people ill their societies.
L ••l
. <-&.
 82
I
, "'anagement
Comp~r<ltlve IVI and Administration l~:~~-$~::
~f.i;~;~\;,: Theones of Comparative Management
83
:;':"'~ ''',The Modified Koontz Model.
MANAGEMENT ~, ,

~
PHILOSOPHY
Management ~:;;:rii~Koontz
model categorizedorganizational activitie~liito
, towards
Employees,
~~o:mmagerial and non- mamlg~rial. Manag~rial actiyiljes, '
Consumers, :N$-,sshownin the model in Fig~ 3.3. a:bove,'are: plamllrlg,
Suppliers, MANAGEMENT Affect •. MANAGEMENT ""ig~ilizing, leading and CO,I:ltrolling, while the non-
' Stockbrokers, PRACnCES
' Govemment,
, ,
.~"... .Planning,
EFFEcnVENESS " ageriaI ones are engineering, prodUction, marketing and
: Community. Organizing, Affect~ 'm~ce. This classification is based on, the premiss that
Staffing, €!I~hough excellent practice of management will make the
Motivating,
Directing, difference, between continued success and failure in
~t Gon!rolling ~',fg~zations, en~rprises may survive, for a time, through
,
.'e non-managerial activities mentioned. '
Management
Science
ENVIRONMENTAL , Is,

FACTORS ' r ;)lles.

ry. .:.. ~IJence'due
Socio-econorric, ,,:edge~ to rpansgetfBl
Alfei::l
Educational, f-- ,.

ENTERPRISE
eral appJicatiC>r:l
Managerial
Factol3
Political, Affect Ente Practices
Legal. EFFECTIVENESS Planning,
Organizing,
..
Leading,
Controlling
. , '.~ . '.'.
~
Fig. 3.2: ~e Neghand/-Estap~en Model for Analyzing Comparative Managemen;
Affe~ , AIl'
Due
to
" .
, ' , ect Enterprise
Excellence'
1968) Principles of Management, McGra",,: Affect
Source: Ko.ontz, H. and 0' Donn~~ ~~~ Neg'handi, A. R. and Estaphen, B. D. "~
-HIli, (4th ed.), as adap , h Ap licability of American Management Excel/enes due to
Non-menasiatf81"
Research Model to Determine t e p . nments." Academy of Non-manegarlaJ ' FsctOlS
Affect
Know~how in Differing Cultures and/~~.~~I~o(December 1965), an9 "-':';~-'--""'---+li ~ Practices
,Engineering,
Management Journal, Vol.8, No.4. pp. N h d' to be published'i ProdUdion,
", 1
.. ".;.
from materials obtained from Professor eg an e~t Philosophy an Mar1<eiliig.
. "':
Ne 'handi, A.A. and Prasad, S. B Managem .FInance

g
Management Prac t'ICes., New York''. Appleton-Century-Crofts,
_. .. Inc, 196 ", "

,::~., '~ .., " .' h ~, 'h' di-Estaphen mode

The major issue presented ID t e egnaru ..
if?~i.~f
,~', ' . , ->: i.. , ", :' s
is that management effectiveness is contingent on mta.nagt~n,',
".'.'! . .,: i-

. . ;,~~~.;~;M.9d;fjedKoontz Model for Analyzing Comparative Managementi,

practices (planning, org,ap.I~lnbgh s t.affing mo executin
., iuie Iva m ,~~",;~~," , , . . ,

directing controlling); and the e a~0ll:r, w .', hi" , .;:~oqn~, H. (1965). MAModel fpf Analyzlng the Unjv~rsaljty ~~d,Tra"sf~r<#J!/!%
iJ,;of; Management." Academy of Management Journal (D~mber).' "':
. ", genient policies"and implementing Its philoso~ es "a
;li:', ". '., ." '" ("j~; ,: !,\J{,;~("':'
leV~I.AlSo.'that m:an,,:geri~ e~ectIv,,:"~
" I

=:'teiTiational §€i,i1.tially,the model stresses that either of the managerial

arid environmental factors affect enterprise e ec rveness. < ,..::Qt":1J"on-managerial activities, or both, can Iead to
, -
.- "

'j;~iilizational excellence. While the non-managerial

rr'/;:~~;~t~ities \lI;ill be affected by the underlying science, or
'~ity.',
 84 Comparative Management and Administration
Theories of Comparative Management
85
knowledge, managerial activities will be affected by the Nation's
underlying management science. Also, not only the human resources,
Labour costs .
and material resources but the constraints and the influences Skiflsand
ofth~fenvironments like economic,socio-cultural, political and Demand
legal,' and educational, will affect both managerial and non- conditions of a
managerial activities as evident in the model nation, Market size
Mode 0'
advertisement
The distinguishing features ofthis model are that it is more Degree of '
consumer
complex than others, more realistic, and considers sophistication
environmental factors as capable ofbeing either constraints
or opportunities rather than considering them as constraints Suppliers Nation's
location in the
only as is the ~ase with some other models. .'~ ':....~:;. same area
well-being

The Michael Porter Model

, Firm's strategy
Porter(1990) questions the economic theory of comparative ':' ..',,' i'" and structure'
,t
" ",',," Rivalryamong ,
advantage. In his own perspective, he suggests four sets of \;;~@2f:::';',.,,;. competitors
factors that contribute to a nation's well-being. The first set ~'jfi~i~">~',· '<, .~-----l
pertains to factor condit~ons such as a ~ation'~ resources, its ,~~;1i~ijl(tig~ 3.4: Porter's Mode/ofeom etifive ' ,
labour costs, and the skills. and e~ucatIOn.oflts people, The ,t
%:L;.:~'·$ource:The author of this a er~ AdvantageofNatJons " "
second set offaetors, according to him, consists ofthe demande, :~¥~:;;<;;,~,
1: , contained in Porter'~:o I evelopsd the mode! ~ased on the elements
conditions of a nation, such as the ,market size, the wayi<, };~1~:1~0'<.~. and Koontz (1993), Mana~:~n~~Ag~~~~~~Z~r::~rmation in ~~ihrich
products may be advertised, and the degree of consumer);:c',: '" ' (1C?thed.) p. 98, P e, MCGraw- HIli, Inc.
sophistication. The third set offactors in the model conceI?ls;:'~4{~}~>f?,<Conclusion
. 'the suppliers. A company prospers when supporting<;'~:;?\\':"Th '. .
companies are located in the same area. The fourth set o~~)',i~:,,~:,intiti~~h~tfee main imp~cations ofthe materials dis d
~act?rs consists of the, firz:n'sstrate~ an~ str~cture ~asweUH:; }~::,r:~overimptce:ti~:~e aJ("
~a)L.oca.tion~p~ications; (b}fi~~t
as rivalry among competitors, ~e combinationof the foW'c:~.:~;j~~.~''''~~.:. ' an c policy ImphcatlOns (Hill, 2001).
sets of factors leads to competitive advantage. When .o~l~:~; ~;:;;f;;,liPf.Cf,tlOn Implications
two sets of these factors are favourable, competit.ive., ?.'::;.'Hil1 (2001) b
, ,,!!ldvant~ge~~ually cannot be,R~rsistent, On the other handr\~'t ',):::\:cJiscussedis ~::~es t~at ~derlying mo.st of the theories
;: ,~~heavailability of resources ISnot always necessary. ' "<!"'it\"h
advantages in diffe;!~ at different Co~~es have p~cuIar
" • . • .• -.. ";,~lii,·:_:;",".:se' f ~-- . productIve actIVItIes.Thus t k
:.: ~ased on, this information, as contained In' Weihrich an~ ..f~~~~.:.:~: ;:;~o~e, ?r .1.ll1Llli to dispense their productive activiti;sl ma es
L r Koontz (1993),the Porter Model may be presented as followsi' ;~:,}~'~' ,;unlt~es where they can be performed mo t ffici tt10thThose
.' , ;. . " ,'-:_,,!.:,resu tis a glob 1 b f ' s e CIElny. e
" .' . ."', ::': --:~,,::~::C!.<;tivities bein a erf °
pr~du~tIve activitie.s with different
""~.,l'''':: ::.globe, depen~.p ormed ill ~lfferent locations around the
.'~} "~~adv_antage facto~ng don conSIderations of comparative
,~.,;., .-' , en iowrnent and the like
. ":ti:;: ' , , '
 86, Compara'.:.!B r anagement and Administration

Theories of Comparative Management 87

First Mover Implications
Inc., As adapted from Acade ,f: U
The firms that establish a first- mover advantage in the Dee.' 1969. my OJ J.vJ.anagementJournal,
production of a new product may dominate global trade in
that product. For the individual firm; the Clear message is Griffin ,R. W. (1993). Management. London' Houghton' 'l6~-M~_
C
ompany. . J.T.Llll.Ull
that it pays to invest substantial .financial resources in
R. M. and Luthans
.: odgetts, F ( , .
building a first mover, or early mover, advantage, even if " Manaoement S·
M" 1997). Internatl,onal
that means several years of substantial losses on this concept. ~. . mgapore cGraw- Hill Co (3 d
Japanese firms dominate global trade for laptop computers, ~:oo~ H a' n d C· O?onnel1,(1968). Principles '~f:an:~ment
" . . Me raw-
G Hill ,(4th ed). ,''''''0'.
even though the technology was invented in the United
States onn.aoon '~llM~G:~~~~~i;dI:~rnational Business. Boston: Irwin
Policy Implications ,orter, M. E (1990) The C .. '
\>
',',
New ~ork.· Th Fr' p ompetl,tive Advantage of Nations.
. e ee ress
. Business firms produce exports and import products from ., :',,' B. (1999). 'DistinUI11C!hing' th B fr
other countries. Due to the pivotal role in global' trade, ~";,';' ,f: l:> e est om the Re t' ell
"-<4O.J l
:(~:;~()J Comparative International Ma's. ouma
business firms exert 'strong influence on government trade ' 'g R L (2008) "Tb' G nagement, Vol.2, No. L
policies. By lobbying government, firms can help-promote ' ,. , ." . e ross-cultural R '
"The Need t Bal' " esearch Imperative'
free trade or trade restrictions, The theories tell businesses Thversity"" Tooumal~c7.e Cros~-~tional and Intra-nationai
that promoting tree trade is
generally in the best interestof '; • eJl OJ tntemationnl Busines
-ltyakkara, G. (1999). "The St d
•
S Studies, 39:41-46.
, their-home country. Manyfirmsrecognize this and lobby-for ?,ractices in Sri Lanka' High n u y. of Best Management
open: markets; ',F.inallY,'Pdrter's theory contains policy' , '.~ S .rezformmg Compani "T
OJ/ ComparativeInternational U es. eJou17}-l11
implications. 'It suggests tb.at it is in El firm'sbest i)iterest to eihri h', H . anagement, Vol 2 No 1
'*,:'" C, . and Koontz, H. (lfi93) AI! ,. .
upgrade advanced factors of production, e.g. investment .in ~~&,:.;D, erspectioe McGraw .Hill In' . af!,agement:A Global
"better training of employees, to increase its commitment- tQ'
.!f:~'f>;1'
.~<';..;;,
J
.
- c., 10th e d ., p. 98. '
. .research.and development, and lobbying the government.to e"ew
,'>,,',
Qu es t'Ions
adopt-policies that have favourable impact on each component
iQtitically examine the I
,ofnational demand. Thus, businesses should lobby governmen ypmparative Management. re evance .of theory to
to increase its investment in"education, infrastructure an"
basic-research, and to adopt policies 'that 'ptomote stron' ;·,eec~ocI·ocnecanePdtua1
linkage of any school of thought of
competition within domestic markets (Hill, 2001). <~ • ' any among th . tin
.~;' F" ;- . ·H·· . .... : ~~~gement th~ories. e eXIS g comparative
References
~;.,,,);;:~tare. the peculiarities of the Koontz Mod 1 f
Aina,'T; (l996)~ "Globalization and Social Policy in' Afric:,' e.fIlparative M . . e 0
. anagement In companson to othe rs.?
;:' COlJESRiA Buliettn, No 4, . ': ;r~~: -~:~(i'
~e a relevant diagram to '
'Catebra, P.B. (1996).' International <Marketing. (9th ed~ ·.~~Farmer-RichmanM d I ~ucpport yo~ explanation' 'of
McGraw'-Hill .Inc.' ' "'b" . 0 e 0 omparativeManagement.
Fapohunda, A. M. (1997).,Basics'of Comparative Manageme'r{ ;'~"; l1:11~.the assertion that the Porter M~del
and International Management', Lagos: PanafPublishirf "'i. ,mpetitive Advantages of Nati . f . , . of
pmparati . IOnsIS 0 no relevance to
••.•;;,;\ r ve management ill the recent century.
·f;~_f::·: .
i;-;'~~J~\f"'