International and Comparative Management - Article Example

International & Comparative Management The principles of scientific management are in use today by managers all over the world to improve the productivity of workforce in corporate organizations. Developed by Frederick Winslow Taylor in the 1880s and 1890s, scientific management has been further improvised and mould by various theorists and put into practice by organizations all over the world in the course of history. Taylor first started developing the theory when he was working at Midvale Steele Company and saw the potential to increase the efficiency of the employees. He was of the view that exact principles should replace the conventional rules of thumbs and that effective managerial practices are the most important factor in improving the efficiency of the employees. The scientific management theory is similar to the Efficiency Movement and takes on a variation of efficiency. In the 1920s and 1930s, it also came to be called upon as quality control. In the next couple of decades, the knowledge associated with it came to be known as Operations Research. Taylorism was also strongly supported by Aleksei Gastev in the Soviet Union in the early twentieth century. Vladimir Lenin, Leon Trotsky and Joseph Stalin have also been influenced by Taylorian principles and have used them along with American engineering in promoting the industry in the Soviet Union. Scientific management began to seep into Europe and Japan after 1900. In Germany, industrialists began introducing several scientific management techniques before they heard of the engineering revolution that was occurring in the US (Nelson, 1992). In the modern world, lean manufacturing by Toyota and Japanese Management Style can be regarded as types of scientific management. Scientific management has taken on a universal role over the period. This article assesses the degree to which scientific management has influenced the convergence of managerial practice around an international norm. It also discusses the extent to which normative managerial prescriptions are limited by cultural and institutional diversity. According to Dr. Frederick W. Taylor, the prime goal of management should be to secure the utmost prosperity for the employer in conjugation with the utmost prosperity for the employees. Scientific management reduces waste and saves up resources, energy and time while aiming fir an increase in the productivity of the labor force (Gilbreth, 2005). Scientific management also deals with the enforcement of well-defined and codified regulations. Productivity, according to Taylorian principle, can be enhanced by division of labor rather than qualification and personnel training. Another principle of scientific management as told by Taylor was the standardization of the qualities of the product (Lesourd & Schilizzi, 2003). These principles are reflected in the Japanese style of management. After the Second World War, the Japanese set of cultural practices and management became famous as the Japanese management style. These set of management practices were aimed to make Japanese economy the largest economy after the United States and to make the businesses in Japan more competitive than other international businesses. Some of the key practices that encompass the Japanese management style include the extensive use of quality methods, carefully codified work standards and stress on cultivating harmonious relations between the employees. Both quality control and scientific management have become integral to the Japanese Management techniques. Quality circles were first introduced in Japan in the 1960s, and there was increased emphasis on giving higher responsibility for quality control to the workers than to line managers and engineers. The production of goods and services should be carried out in consideration to their quality. The main idea of the production process as followed by managers was a preventive strategy where the final goal was to eliminate all flaws in the production process such that none remains. In promoting productivity, the Japanese style of management observes international norms such that a harmonious relationship between the employer and the employees is construed. In Japan, quality circles are groups of about ten workers who meet once a week and discuss the problems of quality. They devise solutions to solve these problems by drawing together analytical and statistical data. Managerial practice has benefited from these quality circles by valuing the suggestions that the workers have come up with. In fact in Japan, managerial practice is encouraged to regard the workers’ suggestions as important and the Association of Suggestion Systems and the Japan Human Relations Association have been developed to encourage the practice of giving this process importance. This represents another international norm, where workers are incorporated in to the production process more than for their labor skills and the resultant consultative decision-making due to the emphasis on interaction (Raju & Parthasarathy, 2009). Also, bonuses are awarded to groups of employees not only to boast the job satisfaction of the workers but also to encourage teamwork. Scientific management in Japan has given managers more power in the process of production. This is illustrated by the more hands-on approach in Japanese management training as well as the higher number of managers who are directly part of the production process. The empowerment of workers in the Japanese style of management exemplifies how scientific management has converged with international norms in Japan. In contrast to the aforementioned synergistic role of Japanese managerial practices with international norms, there is one aspect where Japanese management is falling short. Roehl and Bird (2005) assert that Japanese multinational companies are faced with the daunting task of innovation in their international management. Furthermore due to the past success of Japanese management styles, and because multinational companies operating abroad are based on their parent Japanese companies, it is difficult to change the Japanese style to adapt to the norms and cultures of that particular country. International management requires that managers should be competent enough to manage their businesses abroad in a different working environment and culture and to be able to work well with people of other nationalities (Armstrong, 2003). Where international norms are in place and Japanese managers tend to observe them when dealing across the border, it is widely accepted that the Japanese style of management differs from other styles followed all over the world. Japanese management, mirroring scientific management principles, entails a more holistic concern in contrast with the segmented concern rampant in American organizations. There is collective responsibility and lifetime employment rather than individual responsibility and short-term employment in many organizations all over the world (Raju & Parthasarathy, 2009). However, conflicts occur when Japanese policies are not in line with the cultural across the border. For example, Japanese managers aiming to transplant their management practices to Thailand will face problems if Japanese practices are in conflict with Thai culture. Implicit in this notion is that if the managers fail to adapt in Thailand, the motivation and performance of the Thai workers will decrease and will compromise the efficiency of the business (Raoprasert & Islam, 2010). Efficient management entails the concept producing a perfect mix of resources and by mitigating the costs of the business to a minimum. Cultural conflicts can arise if the managerial practices are not appropriate with the cultural norms of the workplace and the country. This implies that effective management is one that tends to cut down the costs of the business by solving cultural conflicts, interests and values amongst the stakeholders (Raoprasert & Islam, 2010). Managers need to be aware of the needs of for adaptation and acceptance across the border in order to observe efficient management. This conflict can be exemplified with the operation of Matsushita, a Japanese company, on the US. Due to the deep communication gap, there were difficulties in negotiating deals; a proposal presented by the MCA violated the principles of the Japanese business of Kaizen. Also, the mixed signals that Matsushita sends to the US market and public show the divergence in managerial practices that stems out of cultural diversity. For example, on one hand, Matsushita has developed an image of a socially responsible member of the US society but on the other hand, its personal practices are completely out of line with the US norms that it is embroiled in court battles over employee discrimination on the basis of age, sex etc (Thakur & Srivastava, 2001). The traditional approach to Japanese management style is that it is unique and deeply embedded in the culture; other approaches state that there are similarities in practices in management in different countries and emphasize the preconditions for certain types of management systems. Management systems can be learned and altered even though the differences in cultural and social conditions are likely to persist (North, 1997). Henry Ford was the founder of the renowned Ford Motor Company. He also furthered upon the principles of scientific management of division of labor and identity construction by conjugating them with the modern assembly line (Uluorta, 2009). As mentioned above, McDonalds is one company that practices upon the principles of scientific management. McDonalds is one of the most famous chains of fast food restaurants in the world and has adopted the assembly line concept of production as developed by Ford. With branches in 119 countries, McDonalds caters to over 52 million people on a daily basis. Morato (2009) observes that in the case of multinational companies such as McDonalds and other complicated manufacturing establishments, it is essential to understand that the prosperity of the employer is contingent on the prosperity of the employees and vice versa. In the twentieth century, Taylorian principles have been in use for the development of ideas so that the workforce in the manufacturing industry can work with maximum efficiency. In McDonalds Taylorian principles have been applied for three purposes: development of workman and scientific education, the way of performing each task and the system of rewarding so that goals can be met. There are many ways of encouraging the employees that are being followed by the managers. Incentives such as Employees of the Month, gift certificates and free food are amongst some of the measures being derived from the main concept of scientific management to enhance the productivity of the employees. Scientific management is being incorporated into managerial practices in not only the manufacturing sector but also in the management of educational institutions and the government. Supermarkets are implementing the principles of scientific management by deskilling labors and appointing different employees for scanning products, managing queries etc. Call centers have also integrated scientific management into their managerial practices. In the White Heat video, not only call centers but also airports are being shown as institutions that are using scientific management principles in their managerial practice (Bradford University School of Management, 2010). For instance, the Shenzhen International Airport’s Express Center uses scientific management and personalized services to promote a healthy and sustainable environment and to manage the needs of the customers (Shenzhen International Airport, 2007). Aeroport Lyon-Saint Exupery (LYS) caters to the needs of the eighth largest economic region in the Europe and has incorporated scientific management by the use of simulation in-house and increased internal expertise as well as reduced costs to become the second international gateway to France (Romi, 2005). The success of such organizations is representative of how scientific management has converged with international norms and the universal role that it has assumed over time. Today scientific management has impregnated many aspects of managerial practice. The Six Sigma and lean manufacturing of the current world are examples of contemporary forms of scientific management. The process of lean manufacturing has primarily stemmed from Toyota Production System and has now permeated enterprises all over the world and incorporates a wide range of disciplines like how the factory should be run, how the organization deals with its clients, relationships with suppliers etc. All these measures have contributed to increased productivity and higher quality along the entire supply chain. Toyota’s lean manufacturing and the concept of scientific management has been adopted by other industries as well. For example, the Vermeer, a firm headquartered in Pella, Iowa, is a giant in the market for agricultural, construction and industrial equipment (Aldonas, 2009). Aldonas is of the view that the real success of Vermeer lies in its adoption of Toyota’s lean manufacturing strategy. Toyota uses the strategy of cutting down on its waste and improving efficiency. However, operating across the borders presents its own set of problems for managers. In the case of Toyota, it is restricted to follow the same managerial practices in China as it does so in other parts of the world. One of the reasons why is because it has to work with other Chinese companies and this undermines the concept of foreign investment that it usually follows. For example the first operation in China was a joint venture with Sichuan Travel Automobile in 1998. Sichuan retained 45% of the control. The operation employed 600 workers and was predicted to make 8000 coasters by 2003. It was a one-product operation and differed from the multi-product production that Toyota normally carried out. Moreover the culture of China hinders the company from carrying out its normative ideologies. It is also difficult to bring the Chinese to accept the philosophy of Toyota. Enmity between China and Japan has existed since a very long time and still continues to affect the attitudes of the Chinese towards the Japanese. Moreover, Toyota expects its employees to challenge authority and to be relatively independent. However Chinese are not generally encouraged to develop such autonomous thinking and this presents another challenge for managers to practice normative measures (Liu & Brookfield, 2006). On the other hand, many manufacturing policies are being formulated that oppose the concepts inherent to scientific management. For instance the new service management school is a body in the US writing that deals with the management of service industries. The new service is in conflict with the conventional application of scientific management to service operations. Instead, their chief concept is mirror, i.e. if employees develop high levels of job satisfaction, it would be reflected in the high levels of customer satisfaction with regard to the service being provided. In order to encourage high levels of employee satisfaction, a prescribed set of HRM practices need to be observed such as the selection of only highly-committed individuals, giving workers the ability to respond to the needs of the customers, team-working and giving rewards to workers that reinforce service-oriented behavior. The new service management school entails the concept of prescriptive HRM and had impacted many business practices such as retail, finance and hospitality (Anonymous, 2010). Some of the companies in Japan who used to practice scientific management are changing their managerial practices to be more accommodative to the cultures across the border. Corporations are now shifting from parent-alone, domestic alone focus of the past, to an autonomous management style that stresses upon cash flow on a global consolidated basis (Miyamoto, 2008). In Japan, many of the academic institutions and various other industries are operating on the principles of scientific management. Mead (2005) states the stress on loyalty, patience and hard work have contributed greatly to the transformation of Japan after the Second World War; however, the changing economical times necessitate that innovation, ambition and spontaneity are interspersed with current managerial practice. Also the emphasis on homogeneity and uniformity in the workplace and educational systems should be minimized. In order to comply with international norms, Japan has to relax many of the stringent principles of scientific management and be released from the “identity of the past” (Mead, 2005). The cross-cultural international management policies that lead to increased commitment, competence, cost-effectiveness and congruence, include those that are formulated after interaction and mutual contribution between the managers and the workers. Therefore, when operating across the border, the managers need to adapt their practices not only to the institutional diversity of the country but also cultural diversity (Raoprasert & Islam, 2010). Another drawback why many organizations do not follow scientific management is because it is argued that confining highly skilled employees to simple tasks is wastage of their talent, and that money is not the only incentive; employees need job satisfaction and a sense of achievement to be able to perform their best. Managerial policies have embodied scientific management in a way such that international norms are followed. However, the cultural and institutional diversity that arise in association with doing business across the border has served to limit the role of normative managerial prescriptions. One such example is the advertisements of Procter & Gamble (P&G). In an early Japanese television advertisement for a soap, a Japanese woman is taking a bath when her husband comes in. she starts telling him about the soap. The husband implies that he has more on his mind than suds. This commercial was considered offensive to the Japanese since it was bad manners for a man to intrude upon his wife. Such cultural differences serve to limit the scope of management polices that can be applied across the border. With the development of the global economy, it is essential for managers to work across the border effectively and to bridge across the world by “leveraging both similarities and differences” (Lane, DiStefano & Maznevski, 2005). Consequently, P&G has been more cautious about the content of its commercials and now made up more than half of its revenue from foreign sales in 2006 (Deresky, 2006). Japan practices traditional scientific management. From the above discussion, one can conclude that scientific management, as in the case of Japan, largely fails to converge with international norms. The traditional system worked well in the years after the Second World War, but the system is now ineffective and dysfunctional (Newlands & Hooper, 2009). The vast differences in the managerial styles of Japan and for instance the US signify that “Japan must reinvent itself to blend with the prevailing attitudes and practices of international businesses” (Thakur & Srivastava, 2001). Although the legacy of scientific management and industrialized work is still practiced today in McDonalds and Toyota as well as airports and call centers, Teicholz (2001) states that it is mainly present in the traditionally designed offices. Most people would contend that work today has changed and has become more knowledge-based rather than capital-based. Work entails high levels of individual capability and decision-making from managers to the workers at the bottom of the hierarchy. Teicholz (2001) limits the role of scientific management in the contemporary world; he observes that today’s work calls for managers to be coachers, facilitators and leaders rather than controllers and monitors. Reference List Anonymous, 2010. New service management school. [Online] Available from: http://www.jrank.org/business/pages/1088/new-service-management-school.html [Accessed 4 August 2010]. Aldonas, G. D., 2009. Globalization and the American worker: negotiating a new social contract. CSIS. Armstrong, M., 2003. A handbook of human resource management practice. 9th ed. Kogan Page Publishers. Bradford University School of Management, 2010. Assignment Success. [Online] Available from: http://www.brad.ac.uk/acad/management/external/els/Assignment%20Success/Essay%20Structure/Sample%20UG%20essay.doc [Accessed 4 August 2010]. Deresky, H., 2006. 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