American Management Culture

– Why American Management Rules the World –

Structure

Harvard
Business
Review
 Why American Management Rules the World
A team from Harvard Business School, London School of Economics, McKinsey and Company, and Stanford has
systematically surveyed global management. Here some of their findings about the U.S.

1. Organizations with better management massively

outperform their disorganized competitors. 2. When it comes to overall management, American
firms outperform all others. (U.S. dominance in the
manufacturing, retail, and healthcare sectors)

3. Countries like the U.S. that excel have hardly and badly
managed firms, while those like India have a mass of very
badly managed firms pulling down their averages. 4. A key takeaway is that individual companies are not
trapped by the national environments in which they operate.

Source: https://hbr.org/2011/06/why-american-management-rules
 Why American Management Rules the World
A team from Harvard Business School, London School of Economics, McKinsey and Company, and Stanford has
systematically surveyed global management. Here some of their findings about the U.S.

5. American firms are ruthless at rapidly rewarding

5.1 The U.S. has tougher levels of competition.
and promoting good employees and retraining or firing
Human capital is important. (college)
bad employees.
The U.S. has more flexible labor markets.

.
6. Organizations that properly incentivize talented workers, whether through
promotion, pay, or other rewards, outperform others.

Source: https://hbr.org/2011/06/why-american-management-rules
 U.S. Management Aspect

Business Values
“Time is money”
• Everybody is always busy
• Actions are quick and decisive
• Adherence to schedules is important and
expected
Deadlines rules
• Missing a deadline is a sign of inefficiency
• They don’t allow excuse for deadline

Approach to change
• High tolerance for risk and a ready acceptance
for change
• Change, while difficult, usually brings
improvements

Source: http://www.commisceo-global.com/management-guides/usa-management-guide
 U.S. Management Aspect

Business Values
1st Transaction, 2nd personal relations Rule of law

Written word = valuable

Goal = Signed contract
The U.S. has 5% of the world’s
Building relationships
population and 70% are lawyers
“It’s just business, not personal”
Don’t sign any contract without
hiring a lawyer
 U.S. Management Aspect

About work culture:

• Empowerment & responsability
• Bureaucratic and formal organizational structure with the speficic
line of individuality
• People are more career conscious (1st profession, 2nd company –
stepping stone)
• Leadership style is autocratic or directive

Source: http://www.yourarticlelibrary.com/management/american-management-main-features-of-american-management/25819 /
 U.S. Management Aspect

Communications
Freedom is apparent at meetings, where everyone is encouraged
to participate openly

Yes = Yes
No = No
Teams are dynamic, all members are valued,
Usually one way communication
and all are treated with equal respect
(it travels from top to bottom)

Employees freely cross management levels and speak

directly to senior managers

Source: http://www.commisceo-global.com/management-guides/usa-management-guide
 U.S. Management Aspect

Business Communication Style: Non-verbal Written Communication

Negotiating style “hard sell” E-mail should be answered within 24 hours:

Short term and “big picture” Keep it short and clear

A strong pitch may sound boastful Never write in ALL CAPITALS

(confidence)
Signature line should include title, phone number
Their approach is informal, cordial
and address
and straightforward
U.S. Management Aspect

Making Conversation

Safe Topics Avoid Topics

- Where are you from? - Religion, political view

- Weather - Family (until the person
- Traffic brings it up)
- Entertainment: movies, music, - Salary
… - Women’s age
- Hobbies - Never ask how much one paid
- Food, restaurants for his/her house/apartment!
- Sports (especially men)
- Work
small talks are a big part of the U.S.
networking scene
 U.S. Management Aspect

Business Etiquette

• Quick firm handshake Business cards are not so important:

• To not offer your hand can be seen as • May not offer business cards, no set
rude (answering phone calls, stretching ritual
your arms over your head) • May write on the back of other
• Meeting people eye to eye people’s business cards
• Gift giving is not a part of the U.S. • Often throw or slide business cards
business etiquette (thank you note is across the table
expected) • Tends to change cards casually
• Men = women (legally, socially)

Source: http://nyintl.net/2012/12/american-business-etiquette/
 Hofstede’s Cultural Dimension Research
Study based on 116,000 people in 50 countries. Hofstede proposed the following six values:

USA
• PDI (Power Distance Index) 100
90
91 • IND (Indulgence)
The attitude of the culture toward The extent to which people try to
these power inequalities amongst 80
68 control their desires and impulses.
us.   70
62
60
50 46
40
40 • LTO (Long Term Orientation)
• IDV (Individualism) 30 26 How every society has to maintain
 It has to do with whether 20 some links with its own past while
people´s self-image is defined 10 dealing with the challenges of the
in terms of “I” or “We”. 0 present and future.
PDI IDV MAS UAI LTO IND

• MAS (Masculinity) • UAI (Uncertainty Avoidance)

Indicates that the society will be driven by The way that a society deals with the fact
competition, achievement, and success. that the future can never be known.

Source: https://geert-hofstede.com/united-states.html
Thank you for your attention!

“The only time success comes before work is in the

dictionary.” - Harvey Specter