Comparison of Western and Asian Management Styles: Key Differences and Implications

This report explores the differences between Western and Asian management styles. It analyzes the management styles adopted in both regions, including factors such as leadership, decision-making, workplace culture, and adaptability. Ethical principles and their impact on management styles are also discussed. Understanding these differences is crucial for businesses operating in diverse cultural contexts.

Running head: INTER-CULTURAL MANAGEMENT
Western Management versus Asian Management
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Table of Contents
1.0 Introduction..........................................................................................................................2
2.0 Analysis of Western management style...............................................................................2
3.0 Analysis of Asian management style...................................................................................4
4.0 Difference between Asian and Western management style.................................................5
5.0 Ethical principles of Asian and Western management style................................................7
6.0 Leadership style in Asian and Western management..........................................................8
7.0 A cross-cultural comparison of Asian and Western managers............................................9
8.0 Conclusion..........................................................................................................................10
9.0 References..........................................................................................................................12

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1.0 Introduction
As opined by Hefner (2018), the organisational or the business prospects of a business
firm greatly depends on the kind of management style which is being followed within the
framework of a firm. Heraty, Michailova and Morley (2016) are of the viewpoint that the
management style followed by a particular business firm is greatly dependent on the national
culture and other attributes of the nation in which the concerned firm is operational. More
importantly, it is seen that the management style which is being adopted by a particular firm
is also influenced by the personal attributes of the managers and also the manner in which the
managers manage the diverse aspects of the firm as well (Tjosvold 2017). In this context, it
needs to be said that the increasing amount of competition that the different firms are facing
within the business markets in which they are operational had made it all the more imperative
for them to use the kind of management style which would not only be in synchronicity with
the needs of the workers or the employees of the firm but at the same the customer base or
clients that they cater to (Heraty, Michailova and Morley 2016). Thus, it can be said that the
management style which is being adopted by a firm had a profound influence on the overall
performance as well as the profitability of the concerned firm and this is perhaps one of the
major reasons why the different firms are increasingly resorting to the usage of different
kinds of management styles. More importantly, it is seen that there are differences between
the leadership styles which are being adopted by the leaders in the western nations and in the
Asian nations in synchronicity with the difference in the national culture which is being
followed in these nations. This report will discuss the difference between the management
styles adopted by the managers in the western and Asian nations.

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2.0 Analysis of Western management style
Witt and Stahl (2016) are of the viewpoint that the managers in the different business
firms over the years have been considered as worthless or useless and often seen as a burden
for the financial and other resources of the firm. As a matter of fact, 30% of the workers or
the employees in USA associated with different business firms and more than 13% of the
employees on a global basis hold this viewpoint (Heraty, Michailova and Morley 2016).
However, in the recent times it is seen that this image or the idea of the managers had
changed in a drastic manner and the managers are increasingly undertaking the job roles of
both the managers and the leaders (Deresky 2017). In this regard, it needs to be said that the
managers are increasingly seen as the stewards of the contemporary business firms wherein
they are not only required to manage the different employees as well as the business
operations of the firms but at the same time to oversee it as well (Zhang et al. 2015). This job
role of the managers as well as the management style adopted by them becomes more
important in the particular context of the western business firms.
The management styles adopted by the different business firms in the western nations
like USA, Canada and others is characterised by different factors. Vollmer and Wolf (2015)
have articulated the viewpoint that one of the most important features of the management
style adopted by the firms in western nations is the fact that the CEOs and the top-level
managers are rarely recruited from outside and these designations are being passed on the
next best suitable person once the person holding the designation retires or resigns. This can
be explained on the basis of the fact that the entities of polities or power play very little role
within the framework of the different western business firms (Peus, Braun and Knipfer 2015).
The net result of this is that the factor of capability or talent rather than familial connections
play a vital role in the framework of these firms. More importantly, because of the
individualistic work-culture which dominates the majority of the workplaces of the western

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nations it is seen that the managers are required to adopt the visionary style of management
(Barkema et al. 2015). Rohlfer and Zhang (2016) are of the viewpoint that the one of the
most important features of the visionary managers is the fact that they communicate a
particular objective to the employees and motivate them to achieve the same. Recent
researches have shown that the employees feel more satisfied and also perform in a better
manner in the organisations which use this style of management (Hefner 2018).
Another important style of management which is being used in the different business
firms of the western nations is the democratic style of management wherein the perspective
of the employees are taken into consideration during the decision-making process (Vollmer
and Wolf 2015). This not only fosters a sense of responsibility or accountability among the
employees but at the same time enhances their productivity in a significant manner as well. In
addition to these, the business firms related to the western nations also adopt the kind of
management style wherein the managers are required to offer coaching as well as mentoring
to the employees so as to enhance their performance in an effective (Tjosvold 2017).
However, at the same time it is seen that the extreme focus of the western organisations on
profitability as well as enhanced performance often makes them take the help of an
aggressive management style which in the long-term can prove derogatory for the
organisations (Joo Kim et al. 2015).
3.0 Analysis of Asian management style
Heraty, Michailova and Morley (2016) have articulated the viewpoint that the entities
of power and politics play a pivotal role in the management style which is being adopted in
the different business firms of Asian nations. For example, it is seen that the designations of
CEOs and managers are being passed on to the family members in case of family firms in
complete disregard of their abilities or capabilities (Witt and Stahl 2016). More importantly,
it is seen that the collective kind of work-culture which is predominant in the majority of the

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workplaces of the Asian nations requires the managers to adopt the kind of management style
which will foster a collaboration. In addition to this, it is seen that the concept of adaptability
is less predominant within the workplaces of the Asian nations in comparison to the western
nations and this is perhaps one of the major reasons for the high amount of resistance that the
firms in Asia receive when they try to implement any new kind of changes (Barkema et al.
2015).
Figure 1: Main feature of the Asian managers
Source: Barkema et al. 2015
As opined by Vollmer and Wolf (2015), the Asian nations because of the effective
usage of the process of globalisation are experiencing a significant amount of business and
economic growth and at the same time the business firms of these nations are also trying to
expand into the various western nations. The net result of this is that the managers of these
firms often try to imitate or mimicry the management style which is being followed by the
managers in the various western nations. This in turn had given rise to an altogether new style
of management in the Asian business firms wherein it is seen that the managers try to
integrate the best aspects of the management styles used in both the western and Asian
nations.

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4.0 Difference between Asian and Western management style
A critical analysis of the management styles used in the business firms of Asian and
western nations clearly reveals the fact that there are some inherent differences between the
two. For example, it is seen that the major difference in the management style of the two lies
in the manner in which the power and politics play a role in the recruitment of the new
managers or CEOs (Zhang et al. 2015). More importantly, the difference between the two
management styles becomes apparent in the kind of workplace culture that the managers in
the two nations try to foster within the workplaces. In this regard, it needs to be said that the
managers in the western nations following the aspects of their national culture try to foster an
individualistic work-culture whereas the Asian managers try to foster a collective workplace
(Vollmer and Wolf 2015). Furthermore, the difference in the two management styles also
becomes apparent from the fact that the employees as well as the managers in the western
nations show a higher adaptability in comparison to the managers or the employees of the
Asian nations and this is the reason why the western managers face a comparatively lesser
amount of resistance from the employees during the process of change management (Schuette
2016). Moreover, the western managers are more open, confrontational and direct whereas
the Asian managers are put great emphasis on relationships and seniority. On the other hand,
it is seen that the western managers are more flexible as well as creative in comparison to the
Asian managers and encourage the empowerment of the workers.

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Figure 2: Major differences between the Asian and Western management styles
Source: Vollmer and Wolf 2015
5.0 Ethical principles of Asian and Western management style
Crane and Matten (2016) have articulated the viewpoint that the concept of ethics as
well as morals should underpin the management style adopted by the different managers as
well as the business firms. This is important because of the fact that the management style
adopted by the managers as well as the firms not only have a profound impact on the
stakeholders of the firms but at the same time on the planet or the environment as well.
However, in the context of both the Asian and western nations it is seen that the managers as
well as the firms completely disregard this fact and use the kind of management styles which
are not only unethical but at the same time detrimental for them in the long-term as well
(Barkema et al. 2015). In this regard, mention needs to be made of the aggressive
management policies followed by the western nations for expansion into the Asian nations
had been deemed not only unethical but at the same time detrimental for the interests for the

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business firms of these nations as well (Deresky 2017). More importantly, in the business
firms of the Asian nations it is seen that the unethical practices of favouritism, bias and others
dominate the workplaces which in turn reduce the efficiency of the management style used by
them. Furthermore, it is seen that the extensive focus of the western managers on the attribute
of performance and profitability often makes them take the help of the ethical theory of
Kantianism, which states that the end justifies the means which had taken for the attainment
of the same (Rohlfer and Zhang 2016). However, this often hampers the prospects of the
firms in the longer run and is one of the major reasons for the large number of issues or
challenges are facing in the contemporary times. On the other hand, it is seen that because of
the focus of the Asian managers on the attributes of relationship and connections, the ethical
theory of Utilitarianism, which focuses on the kind of actions which will cause maximum
benefit to the maximum number of people, is used extensively by them (Barkema et al.
2015). However, it needs to be said that the extensive usage of this theory by the Asian
managers often shifts the focus on the firms from the attributes of competition and
profitability and thereby can hurt the prospects of the firms in the longer run.
6.0 Leadership style in Asian and Western management
Rohlfer and Zhang (2016) are of the viewpoint that the leadership styles of
charismatic leadership, transformational leadership, transactional and others are more
prevalent among the leaders in the different business firms of western nations. The extensive
usage of these leadership styles by the different western business leaders can be explained on
the basis of the fact that competition and success forms an integral part of the western culture
and thus the leaders often try to take the help of the styles which are likely to help them to
achieve the same. For example, through the usage of the transactional style of leadership the
leaders use the concept of ‘reward and punishment’ for the enhancement of the performance
of the employees whereas the transformational leaders lead by example for the enhancement

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of the employee performance (Zhang et al. 2015). The extensive usage of these leadership
styles by the western managers can be explained on the basis of the fact that these are in
synchronicity with the extreme focus of the firms on the aspects of competition, performance,
profitability and others. More importantly, it is seen that through the effective usage of these
styles of leadership the leaders have not only been able to enhance the productivity of the
employees but at the same time enhance the job-satisfaction level of the employees as well.
It is seen that the democratic leadership style, autocratic leadership and others are
more pre-dominant within the various business firms of Asian nations. This actually can be
seen as a reflection of the national culture of these Asian nations wherein it is seen that the
people like to work in a collective manner rather than in an individualistic style which is
more predominant in western nations. The extensive usage of the democratic, authentic and
other similar styles of leadership by the Asian business leaders can be explained on the basis
of the fact that in Asian firms relationships are very important and rather than an individual
workplace culture a collaborative one is predominant (Vollmer and Wolf 2015). More
importantly, the extensive usage of these leadership styles by the Asian managers can be
explained on the basis of the fact that these are in synchronicity with the attributes of
relationships, connections and others which are important in the part context of the Asian
business world. Thus, through the usage of these leadership styles the leaders try to establish
effective working relationships with their subordinates so as to achieve the goals or
objectives that had been outlined for them.
7.0 A cross-cultural comparison of Asian and Western managers
An analysis of the western nation, USA and the Asian nation, India on Hofstede’s
model of national culture, clearly reveals the fact that there are some inherent differences
between the national cultures of the two nations. For example, it is seen that the managers in
USA are more individualistic in nature than the Indian managers because of the higher score

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of the nation in the aspect of individualism (Barkema et al. 2015). More importantly, the
American managers are more motivated by the concept of success as well as completion than
the Indian managers which in turn is an indicative of the higher score of the nation in the
masculinity index (Vollmer and Wolf 2015).
Figure 3: Indian on Hofstede’s national culture model
Source: Hofstede’s Insights 2019
Figure 4: USA on Hofstede’s national culture model
Source: Hofstede’s Insights 2019
The Indian managers in contrast to the American managers show a lower level of
adaptability and thereby try to avoid uncertain situations which are accompanied by a certain
degree of risk. More importantly, it is seen that the American managers share a very cordial

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relationship with their subordinates and the subordinates are also encouraged to reach out to
them in case of any problem (Barkema et al. 2015). However, this is not the case with the
Indian managers since in the Indian firms it is seen that the seniority is being followed in an
ardent manner and the subordinates are generally not encouraged to reach out to their
superiors. Lastly, the American managers show a high level of indulgence in comparison to
the different Indian managers.
8.0 Conclusion
To conclude, the management style which is being followed by the managers as well
as the business firms greatly determine the success or the failure of the concerned firms. This
is perhaps one of the major reasons why the different business firms are increasingly trying to
use the kind of management style which is suitable for their firms. However, at the same time
it needs to be said that the element of national culture plays a key role within the framework
of the management style which is being followed by a particular firm and this is perhaps the
major reason for the differences in the management style that is witnessed in the management
styles adopted by the business firms in the western and the Asian nations. These aspects
become clear from the above analysis of the western and the Asian management styles.

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9.0 References
Barkema, H.G., Chen, X.P., George, G., Luo, Y. and Tsui, A.S., 2015. West meets East: New
concepts and theories. Academy of Management Journal, 58(2), pp.460-479.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Deresky, H., 2017. International management: Managing across borders and cultures.
Pearson Education India.
Hefner, R.W., 2018. Market cultures: society and morality in the new Asian capitalisms.
Routledge.
Heraty, N., Michailova, S. and Morley, M.J., 2016. Managing human resources in Central
and Eastern Europe. Routledge.
Hofstede Insights 2019. Country Comparison - Hofstede Insights. [online] Available at:
https://www.hofstede-insights.com/country-comparison/the-usa/ [Accessed 7 Mar. 2019].
Hofstede Insights 2019. Country Comparison - Hofstede Insights. [online] Available at:
https://www.hofstede-insights.com/country-comparison/india/ [Accessed 7 Mar. 2019].
Joo Kim, E., Yamaguchi, A., Kim, M.S. and Miyahara, A., 2015. Effects of taking conflict
personally on conflict management styles across cultures. Personality and Individual
Differences, 72, pp.143-149.
Peus, C., Braun, S. and Knipfer, K., 2015. On becoming a leader in Asia and America:
Empirical evidence from women managers. The Leadership Quarterly, 26(1), pp.55-67.
Rohlfer, S. and Zhang, Y., 2016. Culture studies in international business: paradigmatic
shifts. European Business Review, 28(1), pp.39-62.

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Schuette, H., 2016. The global competitiveness of the Asian firm. Springer.
Tjosvold, D., 2017. Cross-cultural management: foundations and future. Routledge.
Vollmer, A. and Wolf, P., 2015. Adaption of conflict management styles during the
encounter of cultures: Findings from a Russian–West European case study. International
Journal of Cross Cultural Management, 15(2), pp.151-166.
Witt, M.A. and Stahl, G.K., 2016. Foundations of responsible leadership: Asian versus
Western executive responsibility orientations toward key stakeholders. Journal of Business
Ethics, 136(3), pp.623-638.
Zhang, Y., Waldman, D.A., Han, Y.L. and Li, X.B., 2015. Paradoxical leader behaviors in
people management: Antecedents and consequences. Academy of Management
Journal, 58(2), pp.538-566.