Identify and compare different business and management practices between US, European and Asian firms - Essay Example

This essay is organized as follows. Section 2 gives an overall comparison of management and business practice performance of firms across various countries in terms of different dimensions. Section 3 identifies and compares the differences in management and business practice performance of US, European and Asian firms in terms of their organization structure. Section 4 identifies and compares the differences in management and business practice performance of US ,European and Asian firms in terms of their decision making process.

Section 5 identifies and compares the differences in management and business practice performance of US, European and Asian firms in terms of their equity (ownership) structure. Section 6 concludes the essay. Bloom and Reenen(2010) measured the differences in the management and business practices across firms and countries and observed the following patterns. The firms with better performance were having better management practices. The study showed only very few badly managed firms in US while large number of Brazilin and Indian firms in that category.

Different countries perform better in different dimensions of management like US firms performing better in incentive terms while Swedish firms perform well in monitoring terms as shown b y the study. The study showed multinationals being well managed in all country while the government firms badly managed than private equity firms or firms with publicly quoted share prices. In addition to these, the study showed firms with more human capital performing well than others. Moreover the family owned firms with the family member as CEO were seen to be managed badly in this study.

Based on an interview with managers from different countries on 18 management practices scores were given from 1 to 5 for each firm in the study. The three dimensions of management practices were measured in this regard namely monitoring, incentives and targets for almost 6000