Comparative Management and Economic Progress

Comparative Management and Economic Progress

Comparative Management and Economic Progress

Comparative Management and Economic Progress

Excerpt

This study was begun as an attempt to answer the general question of why industrial managerial activity and the effectiveness of management in terms of economic progress seemed to vary sharply between different countries. Both authors had fairly extensive research, academic and managerial experience in various countries, and it seemed clear that the usual techniques of exploring management problems and firm efficiency, as well as economic growth, were inadequate to explain all such variations.

It first appeared that the key to this question might be in the internal management of productive enterprises, and the initial explorations of the problem were in this direction. However, it soon became clear that management theory, in all of its present forms, could not explain many significant deviations in managerial effectiveness and behavior between different countries. Most of management theory tends to assume that the external environment is basically the same for all productive enterprises and proceeds from there, and yet, in examining various economic and social systems, it is abundantly clear that external environments vary enormously between countries and cultures. Differences in the external environments within which productive enterprises must function clearly have a crucial impact on the performance of enterprise management.

A second approach was to examine the various theories of economic development. This also appeared inadequate, mainly because most economists tend either to assume that managers are efficient or virtually to. ignore managerial problems completely. If, for example, "X" million dollars are invested, it is possible to discuss the proper place for the investment, the impact this investment will have -- at least on paper -- on various economic sectors, and so on. But little is said about how the actual management of the investment spending, by either a public or private agency, will be accomplished. Who draws up and implements the detailed investment plans? Who buys the machines? Who organizes and directs human activity so that investment will produce desired results? Which individuals will become responsible for what business situations, and how will they be chosen, motivated, and controlled? Such management questions are usually not considered.

Further difficulties exist. We have been aware for some time that legal, political, educational, sociological and cultural variables bear heavily on firm performance and managerial activity. However, management theory does not adequately take into account such variables and their impact on . . .

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.