Question

Compare the Anglo-American and European (Germany/Japan) style models for/of corporate control. Explain in few paragraphs.

Answer 1

There are different kinds of management governance methods and they vary from country to country. These methods are as follows:

1. Anglo-American

2. German method

3. Japanese method.

4. Indian method

The similarities and differences between the Anglo-America method,German method and the Japanese methods can be understood from the following information:

The Anglo-American model which is also known as the "Anglo-Sexton model" is a form of corporate management used in The USA,Canada,Australia and some other common wealth states.In this kind of management style the shareholders appoint the board of directors via voting. These board of directors appoint the managers who will be running multiple projects for the firm. In this way the management is divided. Communication plays a very important role in this management style as there is delegation of responsibilities and without any effective communication there is going to a very confused management.

The German Model also known as the 2-tier model as there are 2 levels of managements namely supervisory board and the management board. It is mostly used in the countries like Germany,Holland etc. In this majority of board members are from banks or financial bodies and the shareholders can vote and appoint only 50% of the people who will make the supervisory board. The other member are then appointed by the employees or the members of the labor unions.

The Japanese method which is also known as the business network method where the B.O.D are mostly the financial institutes and banks. The supervisory board is consist of B.O.D and President which are appointed by the shareholders and banks together.