Management Styles

Created By: James Moulder

Author: Arthur Andersen

There are distinct differences in how the management styles of East and West are perceived.

99% of respondents characterise Western management as open, direct and confrontational. They see the Western style as flexible and creative and encouraging empowerment of line workers. Decision-making is based on database statistics rather than individual intuition, is characterised more by individual initiative rather than by group consensus and places greater emphasis on short term profits.

The predominant Asian management style is seen to be one that places great value on seniority, relationships and family ties. It tends to be paternalistic, valuing corporate loyalty, supporting life-time employment and opposing hire-and-fire. It is the East that is seen to be more resistant to women assuming higher positions. It is more likely to stress quantity than quality.

East	West
Puts greater value on seniority, relationships and family ties Is likely to be paternalistic Supports life-time employment and opposes hire-and-fire Places more emphasis on corporate loyalty Is more resistant to women assuming positions Is more likely to stress quantity rather than quality	Is more open, direct and confrontational Is more flexible and creative Encourages empowerment of line workers Favours databases and statistics and resists intuition Is more productivity oriented than people oriented Is characterised more by individual initiative than by group consensus Puts greater importance on short term profits
Defining characteristics of East and West management styles

To what extent will these distinctions between Asian and Western management styles persist as globalisation continues?

There are numerous examples within Asia of family-run businesses turning for the first time to senior professional managers from major Western multinationals. It appears that many traditional Asian family businesses, with their emphasis on seniority and family ties, are having to confront changes in management structure lest reluctance to reach beyond the family for management expertise limit their potential to grow.¹

In a recent article, Hari Bedi suggests that the new Asian manager is more democratic, quality-conscious, customer-oriented, less loyal to the company, spurns feudalistic behaviour and paternalism, and prefers to deal with clear policies and procedures.²

Western business has embraced a number of Asian business practices. Will the traditional Asian manager now synthesise aspects of management into a new hybrid incorporating elements of both business cultures?

1. David Li, Asia's Managers Must Meet Change, Asian Business, January 1996.

2. Hari Bedi, Age of the New Manager, Asian Business, January 1996

Resources

Asian and American Leadership Styles: How Are They Unique?

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