German Management System :: essays research papers

German management, as it has evolved over the centuries and has established itself since World War II, has a distinct style and culture. Like so many things German, it goes indorse to the medieval guild and merchant tradition, but it also has a sense of the future and of the long term. The German style of competition is rigorous but non ruinous. Although companies might compete for the same general market, as Daimler-Benz and BMW do, they generally seek market sh atomic number 18 rather than market domination. Many compete for a specialised niche. German companies despise price competition. Instead, they engage in what German managers describe as Leistungswettbewerb, competition on the basis of excellence in their mathematical products and services. They compete on a price basis only when it is necessary, as in the sale of bulk materials like chemicals or steel. The German manager concentrates intensely on dickens objectives product quality and product service. He wants his com pany to be the best, and he wants it to have the best products. The manager and his entire team are strongly product oriented, confident that a good product will sell itself. But the manager also places a high premium on customer satisfaction, and Germans are ready to style a product to suit a customers wishes. The watchwords for most German managers and companies are quality, responsiveness, dedication, and follow-up. Product orientation usually also means merchandise orientation. Most German managers, even at senior levels, know their production lines. They follow production methods closely and know their shop floors intimately. They cannot understand managers in the unite States who want only to see financial statements and "the bottom line" rather than inspect a plants production processes. A German manager turn overs deeply that a good-quality production line and a good-quality product will do more for the bottom line than anything else. Relations between German mana gers and workers are often close, because they believe that they are working together to create a good product. If there is a third objective beyond quality and service, it is cooperation--or at least coordination--with government. German industry works closely with government. German management is sensitive to government standards, government policies, and government regulations. Virtually all German products are subject to norms--the German Industrial Norms (Deutsche Industrie Normen--DIN)--established through consultation between industry and government but with strong inputs from the management associations, chambers of commerce, and trade unions. As a result of these practices, the creation of private initiative operating within a public framework lies firmly imbedded in the consciousness of German managers.