Management process:

Planning:

European are less likely inclined formalize long-term planning.

Less communication,

diversification and follow corporate strategy. Business diversification is slow and usually have
engineering and technical background. Long-term planning horizon than U.S and the reason is
concentrated shareholdership. High incidence of family control and societal culture.

Control

European countries

Explicit accommodation of nonshareholder voices. Employees government etc. this resulted in lower ROI
and Dividend payout. Greater debt reliance.

Organizing:

Local firms were slower than American rivals to diversify. Less likely to try divisional structures. Often
holding companies. Less mergers and acquisitions compared to U.S. multidivisional structures.

Directing:

Stronger orientation towards people than Americans. Negotiation and discussing skills.

Uncertainty avoidance is high, resistance to change, tighter supervision, less managerial turnover.
Strong personal bonds. Opposite when its low as in U.S. individualism is low and collectivism high, wage
and salary rewards tend to be weaker motivators. High power distance in Europe which means
authoritarian leader here job security and personal relationships are stronger. High context culture
where messages are deciphered from the context in which it is spoken. More levels and more hierarchy.
Greece is high context culture.

Chapter 4

Soviet socialist management

Key words: Capitalist, socialist and mixed economies, karl marx

Definition of socialism:

A theory of social organization by the community as a whole distribution of interests of all.

State socialism: central govt. ownership and control of means of production

The problems with the capitalist society resulted in emergence of socialist view and communist view by
karl marx.

Economic systems: becoming world’s first large industrial economy run by central govt. Hungary went
socialist in 1948. China became socialists in 1949. Cuba after 1959.
Soviet industrial enterprise system:

Overall direction and control.. coordination by a council of ministries and several dozen sectoral branch
ministries. Industrial production were in local control. Pricing were modest with little variation due to
efficiency and quality. Pay were set by govt. enterprise resources fortunately distributed to factory
persons.

Underground economy and low quality products.

The soviet manager

1. High social status

2. Controlling thousands of factories
3. Promotion was low
4. Russian were more production oriented
5. Less training in human relations

They had to bring their own cash.

Planning

Negotiations were often hidden and incomplete. Resistance to innovation and modernization.

Poor planning associated with poor production.

Control