In common word definition of comparative management is the study and analysis of management in different environment. The large scale emergence of multinational enterprises in the modern world has given rise to a relatively new field of study known as comparative management.
Definition of Comparative Management
R.N. Farmer defines it as “The study and analysis of management in different environments and the reasons that enterprises show different results in various countries.”
Again definition of comparative management according to R. N. Farmer: “Comparative management may also be defined as identifying, measuring, and interpreting similarities and differences among managers’ behavior, techniques, and practices in various countries.”
In fact, comparative management seeks to solve the problems faced by a multinational company which operates in a foreign environment for reasons such as.
- To gain a share in a foreign market
- To take advantage of economies of scale
- To capitalize on saving gained through fluctuations in the foreign exchange market
- To avoid trade restriction
- To take advantage of low cost government loans that encourages foreign investment.
After reading this article and the most important definition provided by R. N. Farmer we may say that Comparative Management is the most important for every kinds of business organization.
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