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 million
GDP (PPP): $15.7 trillion
2.2% growth in 2012
5-year compound annual growth 0.6%
$49,922 per capita
Unemployment: 7.2% (Sept. 2013)
Inflation (CPI): 2.1%
FDI Inflow: $167.6 billion
Public 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
1950-1960
1960-1970
1970

Formalized long range

planning
Attention to strategtic
planning
Strategic management

Failure to involve implementers in planning

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

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.

22

Wal Mart market share

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

Wal-Mart Management practices

Planning
CPFR 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
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.

Thank You