A REVIEW OF THE ARTICLE WHY AMERICAN MANAGEMENT RULES THE WORLD

Why American Management Rules the World by Nicholas Bloom, Rebecca Homkes, Raffaella Sadun, and John Van Reenen, posted on Harvard Business Review: 13rd June, 2011, is research based article: the research conducted by a group of European researchers. Based on the research on various management practices it is concluded that American firms are top rank best managed firms in the world and the major factor behind the success of best managed firms is successful management of human resources.

The article states that American management is somehow better managed than that of other nations. It shows well managed firms are overcoming the poor managed firms. The American firms are leading mostly in manufacturing, retail and health sectors. Although there are better managed firms in various countries, the very badly managed firms are down grading the raking of countries other than America. The large and open U.S. market, higher education and the flexible labor market has been focused as the reasons for success of the American firms. The firms are suggested to continually exhibit and implement management practices such as careful monitoring, lean production, sensible targets etc. to fall in top ranks.

The article talks about the average management of firms of the different countries and ranked American firms as well managed firms however, the management of the individual organizations of other nations might be far better than that of American firms. The ranking of countries like India and China is below the average because some firms are so bad in management leading average score low. This article compares the various management practices of firms of different countries, and will be benefited to those willing to know about ranking of management practices.