COMPARATIVE MANAGEMENT ASSIGNMENT (BUS 426)

Assignment Topic:    Compare and contrast Farmer Richman Model of Comparative management with Koontz Modified Model

SOLUTION:

INTRODUCTION:

The large scale emergence of multinational enterprises in the modern world has given rise to a relatively new field of study known as comparative management.

According to Hurlod Koontz & Heing Wcihrich, “Comparative management   may also be defined as identifying, measuring and interpreting similarities and differences, and practices in various countries.”

R.N. Farmer, “Comparative management is the study and analysis of management in different environment.”

FARMER & RICHMAN MODEL OF COMPARATIVE MANAGEMENT

Professors Richard N. Farmer and Barry M. Richman were the two pioneers in comparative management. They emphasized that environments external to the firm do affect management practices. They were first to identify the critical element in the management process and to evaluate their operation in firms in different cultures. They also described the environmental factors they considered to have a significant impact on the management process and managerial excellence.

These factors viewed as constraints are classified as:

Educational variables / Socio-culture and ethical variables / Legal and political variables / Economic variables

MODIFIED KOONTZ MODEL

This model encompasses two broad categories of enterprise activities – managerial and non-managerial. Either or both can be the casual factors at least to some degree for enterprise excellence.  Also, non-managerial activities will be affected by the relevant underlying science or knowledge, just as managerial activities will be affected by the relevant underlying  science.  Both types of activities will be affected by the availability of human and material resources  and nu the constraints and influences of the external environment, whether these are educational, political and legal, economic, technological, socio-cultural or ethical.

In Comparison, Koontz model is more complex than the ones used by Professors Richard N. Farmer and Barry M. Richman in the sense that it is however, believed to be far more accurate and realistic.  This model, rather than viewing factors in the environment simply as constraint a term that has negative commutation considers them as environmental factors, be they either constraints or opportunities.  For example, in the economic category of factor endowments, a country may be short on natural resources but rich in capital. 

Koontz model of comparative management helps identify the factors that contribute to managerial and organizational excellence while Professors Richard N. Farmer and Barry M. Richman did not identify all of these.