ACCTG 1 Lecture 17:
Document Summary
Purpose: understand how and why management practices vary across countries as well as across firms and industries. 3 issues with the unclear perceptions of good and bad : many practices linked with business environment & product, other types of management are important to business success, but hard to quantify, best practices changes over time. Interview-based evaluation tool that defines & scores from 1 (worst practice) to 5 (best practice) for 18 different practices. Avoid biases through government endorsements, name it. Interview on management (not survey), never directly ask for financial data, persistent interviewing, collection of noise controls. Validating the management data: silent monitors, repeat interviews. Figure 1: us manufacturing firms score higher than any other country. Other well managed in: canada, germany, japan, sweden. Figure 2: in manufacturing, there is a wide spread of management practices within every country particularly in brazil & india: hospitals, schools, and retail.
