PRESENTATION ON MANAGEMENT STYLE OF UNITED STATE AMERICA

HISTORY • AMERICAN REVOLUTION Conflict of economic interest Declaration of independence Paris Pact (3 September 1783)

• THE DEMOCRATIC STATE “the credit for making democracy popular in the world goes only to the great American

war for independence.” Short written constitution A Federal Government

• Role in World War- 1& 2 Earning strategy Super Power

ECOOMIC DEVELOPMENT

• Liberal economy • Educational reforms• Banking system(1791)• Railway• Land reforms • Agriculture• Technological advancements•  Federal Reserve System

ECONOMIC TRENDS SINCE 2000

• 2001 downturn

• 2002-2006

Employment level Crude oil prices doubled between 2001 and 2006 Trade, investment, manufacturing and service sector

ECOOMIC DOWNTURNS • Recession 2008 Decline in capital investment, employment, GDP and domestic

demand Merchandise trade deficit, which peaked at $840 billion in 2008

Poverty indicator of family economic security a family with two adults and two children was considered poor if

its income fell below $21,834 Rise in poverty rate

• Recession 2011 Low credit rating

2012-2013

• Quick facts Population: 314.2 millionGDP (PPP): $15.7 trillion2.2% growth in 20125-year compound annual growth 0.6%$49,922 per capitaUnemployment: 7.2% (Sept. 2013)Inflation (CPI): 2.1%FDI Inflow: $167.6 billionPublic Debt: 106.5% of GDP

• Mission critical

SOME OTHER FACTS

• Major economy• 12th freest economy in the 2014 Index.• US Role in development of international

bodies • Governing the world

Salient features of U.S. management

Planning• Short term orientation• Individual decision making• Top down decision model• Fast decision making• Slow implementation requiring compromises resulting in suboptimal decisions• More formalized long range planning

Scientific management Critical path method Program evaluation technique

• More recourse to external consultants Arthur d. little Booz allen and hamilton Mc kinsey &co.

11 out of 15 consultncy organisations were americans (2008)• More willingness to accept change• Attraction to change and fads

Organizations Involved in Formalized Planning

• General electrics• Texas instruments

• Failure to involve implementers in planning

1950-1960

1960-1970

1970

Formalized long range planningAttention to strategtic planningStrategic management

Organizing

•Frequent organizational change•Individual responsibility and accountability•Formal bureaucratic organizational responsibility•No common organization culture•Identification with profession than with the company•Decentralization of authority

Staffing

• Recruitment from schools and from other companies• Highly desired rapid advancement• Loyalty to the profession• Frequent performance evaluation• Appraisal of short term results• Promotions based on individual performance• Training and development undertaken with hesitation• Job insecurity prevails

Leadership

• Leader acts as a decision maker• Directive style• Face to face confrontation• Emphasis on clarity• Communication primarily top down

Controlling

• Control by superior• Control focus on individual performance• Fix blame• Limited use of quality control circles• Zero defect concept• Value engineering

Reasons for control• Broad and transitory shareholder base• Priority of shareholders interest• High exposure to buyout and takeover pressures• Attention to numerical performance indicators• Short term performance orientation• More peer and bottom up performance appraisal

Why American Management Rules the World ?

• The American Management Century • Bottom dwellers drive the rankings down• Every country has some world-class firms• Changing the ranks and reaping the rewards

What is the secret source of U.S. management success?

• The U.S. has tougher levels of competition. Large and open U.S. markets generate the type of rapid management evolution that allows only the best-managed firms to survive.

• Human capital is important. America traditionally gets far more of its population into college than other nations.

• The U.S. has more flexible labor markets. It is much easier to hire and fire employees.

Dumbest Practices Used by American Managers

•Dangerous Complexity. •Dysfunctional Internal Competition.•Breaking-up Teams Constantly

Ford Motor company • Ford Motor Company is an American multinational

automaker. It based in Michigan. The automaker was founded by Henry Ford and incorporated on June 16, 1903.

• Ford is a second largest automaker in U.S.A. it is fifth largest in the world based on annual vehicle sales in 2013.

• Manufactures distributes automobile across six continents with about 164000 employees and about 70 plants world wide.

• Brands include Ford, Lincoln, Mercury, Volvo, Mazda, Jaguar and Land Rover.

Ford market share

• In United State – 15.3%• In Europe -7.9%• Vehicle unit sale -5668(thousands)• Total revenue – 1,34,252(millions)• Income before income tax -$7720 (millions)• Net income –$ 5665(millions)

Management practices in Ford

• Strengthen their technical and leadership skills• Individual Development Plan• Ford provides a comprehensive range of learning and

development resources to its employees • Effective work environment

• Recruitment Campus recruitment Mixed culture Easing Toward Retirement

• Training and development Job rotation internal “colleges

22

Wal-Mart

• Wal-Mart is an American multinational retail corporation. It runs chains of large discount department stores and warehouse stores. It is worlds largest public corporation.

• The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972. It is headquartered in Bentonville, Arkansas

• Wal Mart has 11000 stores in 27 countries all over the world.

Wal Mart market share

• Near about 4200 retail stores in USA• America's largest Retailer with 11.69%Market share

Wal-Mart Management practices

• PlanningCPFR planning system CPFR is defined as a business practice for business partners to

share forecasts and results data through the Internet.

In CPFR, Wal-Mart worked together with its key suppliers on a real-time basis by using the Internet to jointly determine product-wise demand forecast.

•Organizing

• Hub and Spoke System- centralized purchasing of goods

• Procurement system Direct from producers Emphasize on cost reduction Transparent process Time consuming decision making process

• Logistics Management The distribution centers were serviced by more than 3500 The distribution centers were serviced by more than 3500

company owned trucks.company owned trucks.

•Staffing

• Recruited experienced staff• Campus recruitment• Recruited ,committed and dedicated to customer service• Extra benefits offered to only full time employees• Open door policy • Anti union.• At wal Mart we respect the individual rights our associate and

encourage them to express fear, ideas, comment and concerns. Because believe in maintaining an environment of open communication, we do not believe there is need for third party representation.

•Controlling

• Modern technology and inventory system fast and responsive transportation system Cross-docking good communication system own satellite communication system

• Relationship with suppliers The computer systems of Wal-Mart were connected to those of

its suppliers.

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