American vs Japanese Management Styles

American vs. Japanese Management Style: Which One Yields Success?

Martina Bernhauerova

martina.bernhauerova@vsm-student.sk

MG 201 Introduction to Functions of Management

James Caldwell, J.D.

Research Paper

March 8, 2013

1.0 Introduction and Thesis Statement

A company without a good management is doomed to extinction. That is why it is extremely important to choose the right management style that would not only prevent such dreadful fate, but would also bring a desired success to a company. The two mostly discussed styles that compete against each other in terms of which one is more successful are the American and Japanese management styles. Both styles are quite different, and the frequent debate that takes place when comparing these two involves a question, about which one works better and, therefore, should be implemented in companies. When the economy in the USA in the 1970s worsened, the Japanese economy sustained a fairly high growth rate during the same time (Uddin, 2011). The reason behind this could be that Japanese companies were managed in a better way than the American ones. Furthermore, Japanese factories have been considered to be using the best management style with high standards for quality while having the most advanced technology (Zaman & Unsal, 2000). On the other hand, American companies have been very successful in the market as well. According to the World Management Survey, American companies seem to be excellent in their management styles because they are able to survive for a long time; they make more profit, and they also grow faster than companies in other countries (Bloom, Homkes, Sadun, & Reenen, 2011). Many people, though, still think that American companies should learn from the Japanese when it comes to management because they believe that Japanese management is more efficient. However, even though the Japanese management style does seem to hold a key to running a successful company, it also has its own weaknesses that...