CIA 1

A RESEARCH BASED ASSIGNMENT

MBA-134 UNDERSTANDING BUSINESS

By
TULIKA SINGH
REGISTRATION NUMBER
1927347
MBA D

Institute of Management
CHRIST (DEEMED TO BE UNIVERSITY), Bangalore
 ASSIGNMENT DESCRIPTION- Students are required to compare management practices
(POSLC) of any key economies of the world.
I have taken INDIA, JAPAN and UNITED STATES for my study.
MANAGEMENT INDIA
PRACTICES
1. PLANNING • Indian economy follows
long term orientation.
• Decision making is slow
and also the
implementation.
• Top down planning is
followed in Indian
economy.
• Only few people are
involved like heads,
leaders.
• Collective decision
making.
2. ORGANIZIN • Formal bureaucratic
G structure is followed.
• Accountability of policy
makers is limited.
• Lack of common
organization culture.
• Identification on basis of
profession rather than
company.
JAPAN UNITED STATES
• Long term orientation. • Primarily short term
• Slow decision making, orientation.
fast implementation. • Fast decision making,
• Decision flow from slow implementation.
bottom to top and then • Decision is initiated
goes back. at the top and then
• Involvement of many flows to bottom.
people in making • Few people are
decision. involved in process
• Decision making is of making decision
from bottom to top and initiating it.
and back. • Individual decision
• Collective decision making.
making.
• Informal bureaucratic • Formal bureaucratic
structure is followed. structure is followed.
• Collective • Responsibility and
responsibility and accountability is
accountability. individually
• Well known common followed.
organization structure • Lack of common
is followed. organization
• Competitive feeling structure.
towards other • People identified on
enterprises. basis of their
profession.
3. STAFFING • People are hired from
schools and other
companies, frequent
company change exists.
• Job security is very less.
• Performance appraisal is
somewhat common
practice in organizations
for new employees.
• Training and
development provided.
• Promotion is based on
several categories and
situations.
4. LEADING • Communication
primarily top to down.
• Leadership style is
participative.
• Leaders acts as decision
makers and also head of
the group.
• •
5. CONTROLLI • Controlling is done by
NG superiors.
• Control focuses on
individual performance.
• People don’t want to take
blame for anything that
goes wrong, so only
positive feedback is
given in any reviews or
surveys.
• Young people are • People hired out of
hired from school, schools and
very less people move companies too.
from one to other • Job security prevails.
company. • Promotion is truly
• Lifetime employment based on someone’s
is provided. performance.
• Appraisal is given on • There is hesitation in
long term providing training
performance. and development;
• Training and people may go to
development other firm.
considered as a long • Promotion is based
term investment. on performance,
• Promotion is based on availability of posts
multiple criteria. etc.
• Bottom up • Communication is
communication. from top to bottom.
• Paternalistic style of • Directive leadership
leadership. (firm, strong and
• Leader acts as social determined).
facilitator and group • Leader is the decision
member. maker and leads the
Common values group.
facilitating
cooperation.
• Control by peers. • Control by superiors.
• Control focuses on • Control focuses on
group performance. individual
• Saving face. performance.
• Extensive use of • Fix blame.
quality control circles. • Limited use of
• Implicit control quality control
measures. circles.
• Explicit control
measures.

India is an enormously hierarchical society and this thus obviously has an impact on
management style of India. The society of USA is highly western and also continuously
developing since a long time while Japanese society is a homogeneous society. People have
strong sense of group and national identity there is no or little racial diversity. Japanese
society has highly structured approach to manage and resolve differences.

High degree of mutual responsibility and loyalty and consideration between companies and
also their employees, etc are the classic features of Japanese Management. When we consider
Indian Management Style it’s something like middle of the road. In India we study different
management style and try to adopt the best practices; in other sense sort of bench marking.
While the USA management has high level of professionalism, stiffness, rigidity and also
continuous change can be seen.

In Japan while making decisions the most interesting part is how on different levels the
decisions are made. There is not just one level, there are many levels, understanding,
analyzing and developing are important levels of decision making. In U.S. only few people
are involved, after it is made it is passed on to different people with different views and thus
implementation takes time. In India decision making is done by several people and then also
it is passed on to people similarly like United States, thus the process of making and
implementing both takes time, especially if government is involved.

Indian and U.S. management are quite similar in many ways, in the table various common
points can be seen while the Japanese management system is totally different from both the
other countries. It is generally because of the cultural differences, large cultural differences
and practices followed there. America is performance oriented, India follows various
practices of America so case is quite similar in both the countries, but Japan is a perfectionist
country.

Japanese tends to favor the long term relationship strategies rather than short term goal unlike
Americans who are professionals and would prefer relationships over gain. The loyalty is
kept at top place in Japan unlike America. In India both the cases can be seen, in some cases
loyalty and long term relationship is preferred over gains while in some other, profitability
factor is chosen before relationships.

The one of the main factor of the success of Japanese managers is continuous training. In
India and U.S. training is provided to employees or managers to acquire new skills, when
they need to learn new measures or techniques or when they move to new position. But in
Japan continuous training is provided to employees and managers.

The managing approach of Japan differs greatly from India and United States also, while the
Indian approach to managing is similar in many ways with United States.
REFERENCES-

1. https://www.businesstoday.in/magazine/columns/the-indian-way-of-
management/story/9427.html
2. https://www.academia.edu/9481064/Management_Practices_in_the_United_States_Japan