Management Styles Within a Multinational Corporation: A Five Country Comparative Study

Abstract

This study examines participatory management systems and productivity in similar plants located in five different countries. Likert's System 4 theory was used as a tool to measure the nature and extent of participation. All five plants were engaged in identical operations that were designed and implemented by its U.S.-based owner. Each of the plants, however, was under the direction of host nationals. Data demonstrated that the degree of participation differed widely between the Italian, Mexican, Spanish, American, and English plants. It appears that the management systems in each of the plants reflects the expectations of the society and the local workforce. The data also revealed significant differences in the levels of productivity. While the most productive plants had the lowest levels of participation, the relationship between productivity and participation was not statistically significant across the five plants. The study concludes that management systems which are culturally congruent can produce equal levels of productivity independent of whether managers are empowered, or operate under centralized, autocratic control.