The Spread of Management Methods around the World Stuart Umpleby, Lucy Lim, Naveen Hariprasad, Saadia Khilji and Daniel Le The George Washington University.
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The Spread of Management Methods around the World Stuart Umpleby, Lucy Lim, Naveen Hariprasad, Saadia Khilji and Daniel Le The George Washington University Regions and Countries Regions Countries Africa Congo, Nigeria, South Africa China East Asia Japan, Myanmar, Singapore, South Korea, Taiwan, Thailand, Vietnam Europe Finland, France, Germany, Italy, Luxembourg, Poland, Russia, Spain, Switzerland, UK Latin America Brazil, Columbia, Mexico Middle East Egypt, Ethiopia, Iran, Turkey North America Canada, United States Oceania Australia, Indonesia, Philippines South Asia Bangladesh, India, Pakistan Population by region China and South Asia dominate GDP per Capita: A Measure of Wealth North America, Europe and East Asia dominate 35000 30000 North America is the leader 25000 20000 GDP per Capita (in USD) 15000 10000 5000 1999 1996 1993 0 China South Asia Africa Oceania Middle East Latin Am erica East Asia Europe North Am erica The gap between rich and poor countries has widened Oceania Middle East 1990 1987 1984 Year South Asia Africa 1981 1975 China 1978 Many countries have hardly improved at all Latin Am erica East Asia Region Europe North Am erica Business Periodicals Europe leads in business periodicals due to many different languages North America Oceania and East 200 180 Asia are the next in 160 line 140 120 100 Latin America, South Asia and Africa are far China 80 South Asia 60 East Asia 40 Middle East 20 Oceania 0 Latin America Europe O ceania North America East Asia 1999 China 1993 1990 1996 Year 1987 1984 1981 1978 1975 behind c Business Periodicals per One Million People North America Africa Region Europe SOURCE: w w w .ulrichsw eb.com Number of PC Users Africa South Asia Middle East 180 Oceania Latin America 160 China 140 East Asia Europe 120 North America 100 Total PCs in Millions 80 60 1990 40 1992 20 1994 1996 Region North America Europe China Latin America Oceania Middle East South Asia 2000 East Asia 0 1998 Africa Year SOURCE: Yearbook of Statistics, Telecommunication Services, Chronological Time Series 1990-1999, International Telecommunication Union Total Internet Users The graph begins from 1990 North America, Europe and East Asia are the top three Middle East Africa The rate of increase has South Asia Latin Am erica been phenomenal after 1994 120 Oceania 100 China East Asia China, Oceania, Latin America 80 60 and South Asia also have a 40 high growth rate 20 1990 But the rate is lower and itYear started late North Am erica 0 1993 1996 1999 Middle East Africa South Asia Latin America O ceania China East Asia Europe North America An increase in every region Europe Total Internet Users in Millions Region SOURCE: Yearbook of Statistics, Telecommunication Services, Chronological Time Series 1990-1999, International Telecommunication Union ISO 9000 Certified Companies Europe has been the leader in using the ISO 9000 standard, probably because of the interest in standardization due to the European Union In Europe, more smaller companies exist 180000 160000 140000 120000 100000 80000 60000 40000 Europe North Am erica East Asia Oceania Europe North Am erica East Asia Oceania China Latin Am erica South Asia Africa Dec-99 0 Dec-00 Middle East Year Jan-93 Sept. 1993 Jun-94 Mar-95 Dec-95 Dec-96 Dec-97 Dec-98 20000 Сertified Com panies (in thousands) China Latin Am erica South Asia Africa Middle East Region SOURCE: The ISO Survey of ISO 9000 and ISO 14000 Certificates - Tenth cycle Foreign Students in USA 140 120 100 80 Oceania Students in Thousands 60 Canada Africa Middle East 40 South Asia 20 China Latin America East Asian students seem to dominate in number Europe East Asia Europe Latin America China South Asia Middle East Africa Canada 1998-99 Oceania 1997-98 1996-97 1995-96 1994-95 1990-91 Year 1985-86 1980-81 0 East Asia Region Source: Institute of International Education" Open Doors," various years.( Latest Edition copyright@1999 by the Institute of International Education) Among other regions, Europe is most prominent The number of Latin American and Chinese students has been steady Correlations with GDP per capita at five year intervals Variable Correlation range Business periodicals per capita (1975 to 2000) .65 - .71 PCs per capita (1990 to 2000) .75 - .93 Internet users per capita (1990 to 2000) .65 - .89 ISO certified companies per capita (1975 to 2000) .23 - .47 Growth of Business Schools Many new business schools are opening in Eastern Europe and the NIS There has been a reconsideration of the nature of knowledge in order to justify the teaching of practical disciplines See The New Production of Knowledge by Gibbons, et al. Number of Business Schools in AACSB 450 400 350 300 250 200 Number of Business Schools in AACSB 150 100 50 0 Oceania Middle East Source: Association for the Advancement of Collegiate Schools of Business East Asia South America Europe North America Region Top 100 Business Schools by Region 60 50 40 30 Percent 20 10 0 China South America Oceania Europe North America Region Source : Financial Times, 2001 Top 100 Business Schools by Country 60 50 40 30 Percent 20 10 0 US A UK Ita ly Sw itze Ch rla ina N nd Bra orwa y z Ne il wZ Sin e g a Me ap lan ore xic d Ne Source : Financial Times, 2001 o t h Ire e r l l a a nd nd Au s st r Sp a l i ain a Country Fra nc Ca e na da Growth of Corporate Universities Ideas can spread either through the open academic literature or through the growth of corporations using proprietary knowledge An increasing number of corporations have their own in-house training programs that use curricula they have developed themselves Locations of Corporate University Headquarters by Region 80 70 60 50 40 Percent 30 20 10 0 Rest of the World Source:Corporate University Xchange 5th Annual BenchMarking Report 2002 Europe Region USA and Canada Percent of Corporate Universities Two Years Old or Younger 60 50 40 30 Percent 20 10 0 2001 Source:Corporate University Xchange 5th Annual BenchMarking Report 2002 2000 1999 Year Age of Corporate Universities 35 30 25 20 15 Percentage of Universities 10 5 0 3-5 years 1-2 years less than 1 year 6-10 years 11-15 years 16-20 years Age more than 20 years Source:Corporate University Xchange 5th Annual BenchMarking Report 2002 Average Age of Corporate Universities by Industry 7 6 5 4 Age 3 2 1 0 Fin an ce/ Re nsp al Wh ort Es ai o ole tat n/T Sa Go e/I ns le/R ele ver ura c n e o me Al l ta i m nce m/ l/A nt Co U c r c t p i li ty Pro om ora /M od fes te ini n a U s t i on Inf ion ni v g/C orm al /Fo ers on S o i a t e i s tr dS ti o Ma es rvi uc n( ces nu e rvic tio SW fac n e ,M tur i ng ed ia an dD Type of Industry ata Pro ces Source:Corporate University si n g) Xchange 5th Annual BenchMarking Tra Examples of corporate education AT&T has created a shelf of books on how it does process improvement. These books are not made available to people outside AT&T GE has developed books and CDs for training their managers in six sigma methods. These materials are not shared outside the firm Size of Corporate University Budgets 35 30 25 20 percent of universities having the budget 15 10 5 0 Under $1M $1M-$3M Source:Corporate University Xchange 5th Annual BenchMarking Report 2002 $3M-$5M $5M-$10M Budget $10M-$20M percent $20M-$50M $50M$100M Over $100M Conclusions The spread of management theories and methods around the world is one feature of globalization There is a positive correlation between wealth and business periodicals, number of PCs, internet use, and ISO 9000 certification There is a wide gap between the developing and the developed countries in GDP/capita, business periodicals, use of the internet and ISO 9000 certification The gap in all areas continues to grow North America is the dominant region in new technology Europe has made the most use of ISO 9000 certification