The management culture provides the developing direction of a company. It decides the characteristic and company culture in an enterprise. However, the style can be influenced by certain factors, such as, policy, history background, social system, international competition. In this essay, three management styles and two company types will be indentified and discussed.
Management style belongs to management strategy; it can be composed of operation strategy, company culture and managers. To be specific, different management styles have distinct characterizations, which can be divided many particular aspects. For instances, Asian styles of management is originated from western styles; however, Asian styles and western styles have material difference. “It is also debatable if there is really an Asian management style, which cannot be explained by Western management theories, and that this “Asian management style” is the root cause of the economic crisis” state Pheng and Leong (2001, p127). It reflects that different cultures have different management styles. They have regional characteristics, which can influence business operations directly.
There are three common management styles: Paternalism style, Laissez-faire style and Democratic style. According to Dworkin, Gerald (2002), paternalism is the interference of a country or a person to another organization or an individual. In business aspect, it means an individual or an organization can interference a whole company and subsidiary company. This management style is very common in China, because there are many Chinese enterprises are owned by government, and these companies can be called state-owned company, such as China Mobile. In China, paternalism style is easy to manage the large-scale companies which have plenty of employees.
However, in western countries, Laissez-faire style and Democratic style are used in most companies. The laissez-faire style means fewer rules and fewer artificial controls of economic activities, including production, trading and management. It allows individual to make decisions. The benefit is if the employees are skilled, the Laissez-faire style can exert them abilities efficiently. The Democratic style is widely used in many countries. The characteristic is all of the decisions are made by workers, and the rights of each worker are protected by the principles of company. The management styles are easily influenced by the types of enterprises.
The category of enterprise can be divided into two varieties: private company and state-owned company. People are familiar with private company, which is very common in the world. According to Kroeze (2007), private company plays a pivotal role to serve economic activities and purposes, and it also can promote economic welfare. So, private company may have a necessary connection with an individual’s daily life. For instance, almost retail trades are private, like Metro, which is very familiar in people’s life. Kroeze (2007) also mentioned that the private company needs to serve the law to maintain justice. It means the private company should make mandatory rules to serving fairness.
Large-scale state-owned enterprises in western countries are less than these companies in China. Only some industries for infrastructures are owned by the government, such as Power Company, Water Company and Rail Company. The same characteristic of these companies is that they are all public facilities. However, in China, almost the large-scale enterprises are state-owned, and most of these companies are very competitive in the global market, such as Sinopec (petroleum refining), and State Grid (power supply). As an international trade market, China is an important role in the global market and becoming the most potential place for international investment (Wang, 2010). Mixed western management styles, how China can operate the state-owned enterprises in an efficient way with an...
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