Why was American management criticised so much in the 1980s, so widely Essay

Why was American management criticised so much in the 1980s, so widely admired in the 1990s, and now so despised again - Essay Example Britain ruled the world for a longer period and even America was a British colony once. However, Britain failed to sustain their supremacy whereas America emerged as a superpower. America succeeded in emerging as the sole superpower in the world, after the destruction of former Soviet Union. Industrial revolution and enormous technological development helped America to maintain their top spot intact among the global economies. However, American style of management faced mixed response from international community over the last few centuries. Politics, religion, scientific development etc succeeded in making immense changes in American style of management periodically. America is a democratic country for a longer period. â€Å"Until World War 1, the influence of religion on American business was far reaching. Yet religion failed to provide organizational ideas for human relations† (Guillen, 1994, p.30). ... Business owners thought that the managers will handle everything properly and they can take a break from the business. The above assumption proved to be wrong as the managerial executives tried to exploit their increased power in inadequate manner. Mismanagement stories were started to come out in large numbers from prominent organizations in the 80’s as a result of managerial capitalism. According to Heskett (2007) â€Å"Companies taken over by private equity groups or managerial executives have been stripped of their assets †¦ and hold unsustainable debt burdens†(Heskett, 2007). Managers enjoyed or claimed the majority corporate success than the original owners or the workers. They spread the rumours that American companies are growing not because of the efficiency of their workers or the capabilities of the owners, but because of the capabilities of the efficient management force. Thus managerial executives in the 2980’s became dictators in the corporate sector as a result of the managerial capitalism. There was also a very serious banking crisis in the 1980s – what became known as the ‘savings and loan’ scandals, when many of the thousands of small banking operations around the States became insolvent. Banks became ‘hemmed in by government restrictions. Moreover, banks watched helplessly as much of their business disappeared into the capital markets (Chapter three – The USA: the world’s foremost economic, political, and military power, n. d., p.20) Another major criticism for American management in 1980’s was the banking crisis. American government started impose strong restrictions upon banking exercises. The interest rates in America increased sharply in the late 1970s as a result of inflation. Between 1976 and 1980, interest rates