MANAGEMENT
THEORY
ANn
SO~IO·E~ONOMI~
DEVELOPMENT:
AN
EXPLORATORY
FR1'MEWORK
FOR
THE
STUDY
OF
DEVELOPMENT
FROM
A
MAmOMANAGERIAI~ PERSPE~TIVE
PH.D. THESIS
The University of Iowa
December, 1983
Thesis supervisor: Professor Willard R. LANE
L

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Copyrigh t by
BOUKARY SAVADOGO
1983
All Rights Reserved

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Graduate College
The University of Iowa
Iowa City, Iowa
CERTIFICATE OF APPROVAL
PH.D. THESIS
This is to certify that the Ph.D. thesis of
Boukary Savadogo
has been approved by the ExaminingCommi.ttee
for the thesis requirement for the Doctor of
Philosophy degree at the December, 1983
graduation.
Thesis committee:
Member

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To
Uy late father,
El Hadj Amadou Gondolgo
and
My late stepmother,
Kalizeta Barry
and to
All the men, women, and
children everywhere, who believe that
OURS could be a GREAT t'lORLD i f only
everyone had an opportunity to
take part in its
MANAGEHENT!
i i

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If any single factor is the key for
unlocking the forces of economic
growth in the underdevelope~ areas
of the world, that factor is manaeement.
Stefan H. Robock, 1961
In many World Bank ex-post project
evaluations "8ood management" is the
most frequently cited source of project
success.
The World Ban~, 1981
i i i

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ACKNOl{LED~mNTS
Writing a doctoral thesis is truly a great intellectual odyssey,
a journey made less arduous and more enjoyable by the help that the
writer receives from the academic community, from family members
and friends.
In my case, I was most fortunate to cross the paths of
many great people and outstanding scholars who generously gave their
time and advice to help me reach an important milestone in my quest
for knowledge and wisdom.
I would like to give special thanks to my advisor and thesis
supervisor, Professor Willard R. Lane who provided me ~rlth guidance
and counseling throughout the doctoral program.
I wish to express my
appreciation to the other members of my thesis committee, Professors
Joseph Ascroft, George Chambers, WaIter Foley, and WaIter Krause for
• their help and encouragement.
I also learned from Professors Jacques
Bourgeacq, Michael McNulty, James L. Price, Bill Snider, Franklin
Stone, and Christopher Roy.
I wish to acknowledge the generous financial support provided by
the Government of Upper Volta,. the African-Anerican Institute, and
The University of Iowa.
I would also like to thank the staff of the Library of Congress
in Washington, D.C., Doctor Ragaa Makharita at the World Bank, and
Mister Richard Gbayoro, Director of the CESAG Project at the West
African Economic Community (CEAO) in Ouagadougou, Upper Volt~.

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Special thanks to my family, friends, and relatives for their
encouragement and support.
Finally, I would like to thank Jean Purvis who typed the final
version of this thesis.
I take full responsibility for any errors
or omissions remaining in the thesis.
v

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TABLE OF CONTENTS
Page
LIST OF TABLES • • •
xi
LIST OF FIGURES
xii
CHAPTER
1.
INTRODUCTION • •
1
The Importance of Development
• • • • •
1
The Development Debate • • • •
4
The Managerial Approach to Development •
5
Statement of the Study Problem • • • •
7
Problems Related to the Lack of a Comprehensive
Theory
. . . . . . • . . . . . . .
. ...
.
8
Problem of Conceptualization
• • • • • • •
9
Problem of Knowledge Integra ~ ;,J~E ~t
• • • • • •
11
Problem of Units, Levels a ,(.'¥"oc
ci'f;j~search
13
The Need for a Macromanageria
Pe pectia~d the
Significance of the Study.
~<.I. /. • • • .. • (~\\, •
14
Purpose of the Study • • • • '~.( C f:. f~.l ':;7~J :
16
~.J,------ ...
Study Assumptions
• • • ••
'.-.. \\. • • • • • g.
17
Study Scope and Limitations
.~.... '.'_,. .~
OQ;(;
18
Definition of Terms
• • • • •
/ "'h ;-.. • ~,-:,;§~ • •
20
•
"' __
'1,(' ~
rl"'e'f\\
Definit10n of Development
'r:,~~8"
21
Definition of Management
22
Definition of Other Terms
23
Effectiveness
• • • • •
23
Efficiency •.• •
24
Framework
24
Goals
25
Social System
25
Overview and Plan of the Study •
26
II.
REVIEW OF DEVELOPMENT LITERATURE • •
28
The Interdisciplinary and Eclectic Nature of
Development Studies • • • • • • • • • • • • •
29
Competing Approaches to Development
• • • •
30
The Conventional Approach to Development
30
The Non-Conventional Approach to Development
31
The Growth with Equity Approach:
A Derivative
of the Conventional and Non-Conventional
Approaches • • • • • • • • • • •
32
vi

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Page
The Human Resources Approach
• • • • • • • •
33
Dependency Theory and Development • • • • • •
35
The New International Economic Order (NIEO) •
36
Other Approaches to Development • • • • • • •
37
Broad Changes in the Evolution of Development
Ideas
. . . . . .
. . . . . . . . . . .
37
The Search for a Prime Mover of Development
41
The Economic Determinants of Development
41
The Non-Economic Determinants of Development
43
Obstacles to Development • • • • • • • • • •
44
Critique of the Search for Obstacles to
Development
• • • • • • • • • • • • •
45
The Ambiguous Nature of ObstacJes to
Development • • • • • • • • • •
47
Critique of Dualism and the Myth of
Tradition Versus Modernity
• • • •
48
Redefinition of Obstacles to Development
50
Recapitulation • • • • • • • •
• • • •
52
Ill.
REVIEW OF MANAGEMENT LITERATURE
54
The Changing Assumption of Comparative t~nagement
54
Findings of Case Studies of ~~nagement in the
Developing Countries
• • • • • • • •
• • •
56
Case Studies of Effective Management in the
Developing Countries • • • • • • • • • • • • • •
56
Findings of Case Studies of Ineffective
~~nagement in the Developing Countries
59
Cross-National Studies in Comparative Management •
62
Managerial Differences Between Developed and
Developing Countries • • • • • • • • • •
62
Managerial Similarities Between Developed
and Developing Countries • : • • • • • • • ~ • •
64
Comparison of Management Among Developing
Countries Only • • • • • • • • • • • • • •
66
The Socio-Cultural Determinants of Management
69
General Aspects of Socio-Cultural Factors in
Comparative Management • • • • • • • • •
69
Specific Effects of Socio-Cultural Factors
on Management
• • • • • •
72
Social Development ~~nagement
• • •
74
Recapitulation • • • • • • •
• • • •
. . . . 79
Summary of Case Studies of Management in
Single Countries • • • • • • • •
79
Summary of Cross-National Studies in
Comparative Management • • • • • •.• • • • •
79
Summary of Studies of the Socio-Cultural
Determinants of Management • • • • • • •
80
vii

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Page
Summary of the Social Development Management
Literature • • • • • • • • • • • • • • • • • ••
80
Relevance of the Comparative Management
Literature to the Study of Development •
81
IV.
STUDY DESIGN AND ~1ETHODOLOGY
84
The Methodological Problem in Macromanagement
• • • •
84
The Adequacy of an Exploratory Study Design
88
A Heuristic Approach to Exploratory Research • • • • •
89
Procedure for Developing the Framework:
The
Inventory Method
•• • • • • • • • • •
91
Description of the Inventory Method • • • • • • •
91
Selection and Analysis of Studies •
• • • • •
94
Frame of Reference
• • • • • • • • • • • • •
95
Procedure for Empirically Testing Parts of the
Proposed Framework
•• • • • • • • • • • • • • •
96
Selection and Measurement of Variables
• • • • •
97
Goal Variables • • • • • • • • • • • • • • •
97
Efficiency Variables • • • • • •
• • • •
97
Outcomes/Effectiveness Variables • • • • • •
99
Study Sample
• • • • •
100
Data Sources
• • • • • •
102
Reliability of the Data •
102
Statistical Procedures
104
V.
STUDY RESULTS AND DISCUSSION • • •
106
Elements of the Proposed Framework • • • • • •
106
The Background Environment of Management
106
People • •
109
Ideas
. . . .
. .
. . .
.
. .
. . .
.
109
Things .
. . .
. . .
.
. .
. .
. . .
109
Societal Problems, Societal Goals, and
Societal Will • • • • • • • • • •
,109
~mnagement Structure, Contents and Processes
110
Management Philosophy and Style
111
Management Structure • • • • • • • • • •
112
~~nagement Tasks, Roles and Functions
114
Management Outcomes • • • • • • • • •
116
Posited Relationships Between the Elements of
the Framework.
• • • • • • •
117
Phase I • •
•• • •
117
Phase 11
•
• • •
118
Phase III • •
•• • •
119
Comparison of the Proposed Framework with Other
Models in Comparative Management
• • • • • • • •
120
viii

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Page
Richman-Farmer Model •
120
Negandhi-Prasad Model
122
Koontz Model • • • • •
124
Differences Between the Three Models and
this Study Framework
• • • • • • •
124
Results of Illustrative Analysis of Data
127
Summary of Results of Regression Analysis with
Variable 12 (Physical Quality of Life Index
or PQLI) as the Dependent Variable
• • • •
129
Summary of Results
• • • • • • •
129
Discussion
• • • • • • • •
129
Summary of the Results of Regression Analysis
with Variable 13 (Per Capita GNP) as the
Dependent Variable .• •
• • • •
131
Summary of Results
• • • • • •
131
Discussion
• • • • . . • • • • • • • •
131
Summary of the Illustrative Analysis of Data
133
General Discussion
• • • •
• • • • •
133
Proposition 1
• • • •
• • • • • •
134
Proposition 2
• • • •
• • • • •
136·
Proposition 3
• • • • • • • • • •
138
Proposition 4
139
Proposition 5
140
Proposition 6
142
Proposition.7
• • • • • • • • • • • • • • •
143
Proposition 8
144
Proposition 9
145
Proposition 10 •
146
Proposition 11 •
147
Recapitulation
148
VI.
Sm~y AND CONCLUSION
-149
Summary of the Study Problem and Objectives • • • • •
149
~tudy Design and l1ethodology
• • • • • • • • • •
150
Study Results and Discussion
• • • • •
150
Contributions of the Study
• • • • • • • • • •
151
Weaknesses of the Study • • • •
• • • •
153
Reliance ori Verbal Statements
153
Narrowness of Theory Base
154
Weakness of Data Analysis
155
Suggestions for Future Research
155
Identification of Societal Managers
• • • •
156
Operationalization and Ueasurement of
Variables • • • • •
• • • • • • • • • •
156
Exploratory Research and the Refinement of
Research Hypotheses
• • • • • • •
157
ix

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Page
Confirmative Research, Predictive and
Causal Explanations •
•
158
Conclusion
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
159
APPENDIX A:
THE EMERGENCE OF A MANAGERIAL PARADIGM OF
SOCIO-ECONOHIC DEVELOPlmNT:
RATIONALE AND
EXPLANATION
•
•
•
•
•
•
•
•
• •
•
•
•
•
•
163
APPENDIX B:
A NON-EXHAUSTIVE LIST OF IMPORTANT FACTORS IN
THE DEVELOPMENT PROCESS STRESSED BY VARIOUS
DEVELOPMENT SCHOLARS.
•
• •
•
•
•
•
•
•
•
•
•
172
APPENDIX C:
SOCIAL AND CULTURAL FACTORS AFFECTING HANAGEl·mNT.
175
APPENDIX D:
INTERNATIONAL AND NATIONAL ENVIROmmNTAL
FACTORS THAT AFFECT MANAGEliENT •
•
•
•
•
•
181
APPENDIX E:
THE STUDY SA}lPLE, PART A
189
APPENDIX F:
THE STUDY SAUPLE, PART B
191
APPENDIX G:
LIST OF 19 NATIONAL BASIC INDICATORS FOR
tmlcH DATA WERE COLLECTED
• • •
• •
193
APPENDIX H:
VALUES OF 13 VARIABLES FOR 37 COUNTRIES
195
APPENDIX I:
PEARSON CORRELATION COEFFICIENTS •
•
197
REFERENCES
. . . . . . . . . . . . . . . . . . . . . . .
199
x

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LIST OF TABLES
Table
Page
1.
The "Religion of Development" and Other Sacred and
Secular Religions • • • • • •
• • • •
3
2.
Alleged Obstacles to Development in the Third World
46
3.
Factors Contributing to Success in the Management of
Development Programs (Learning Process Versus Blueprint
Programming Models) • • • • • • • • • • • • • • •
77
4.
Estimates of the Average Annual Rate of Grolrth of Real
GDP, 1960-70 for Six African Countries According to
Seven Data Sources
• • • • • • • • • • •
103
5.
Comparison of Three Sets of Philosophical Views About
Human Nature that Affect Management • • •
113
6.
Summary Table of Regression Analysis with Variable 12
(Physical Quality of Life Index) as the Dependent
Variable
.
.
. .
.
.
.
.
. .
.
.
.
. .
.
.
.
.
130
7.
Sucmary of Regression Analysis with Variable 13 (Per
Capita GNP) as the Dependent Variable
• • • •
132
8.
Change in ~1anagement Assumptions
. . . . . . . . 166
9.
Countries Excluded from the Sample
190
10.
Countries Included in the Sample
192
11.
Values of 13 Variables for 37 Countries •
196
12.
Correlation Matrix (Data with Group Medians for
Missing Values) • • • • • • •
• • • •
198
xi

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LIST OF FIGURES
Figure
Page
1.
Price's model of organizational effectiveness • • • • • • •
93
2.
A macromanagerial framework for the study of develop~ent
107
3.
Richman-Farmer model
121
4.
Negandhi-Prasad model •
123
5.
Koontz model
125
xii

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1
CHAPTER I
INTRODUCTION
The present study addresses a major problem that plagues theory
and research on the role of management in promoting socio-econQmic
development, namely, the lack of a unified conceptual framework that
could be used to integrate existing research findings and provide a
general theory base for future research.
In essence, the study is
an exploratory inquiry into the theoretical dimensions of the
relationships between management and development and it seeks to
build the needed framework from a macromanagerial perspective.
While the immediate purpose of this inquiry is to develop a
managerial framework for the study of development, its ultimate goal
is to contribute to development theory.
Since development plays a
central role in the study, a brief look at its importance and
relevance is in order, before the study problem can be more clearly
stated.
The Importance of Development
It is a truism to state that the problem of promoting social and
economic development in the world is one of the most debated questions
in academic circles, national governments and il.-'rnational
organizations.
At issue is what to do to improve the livelihoods of
people and how to do it.
Faced with unprecedented population growth

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2
and seemingly dwindling natural resources, the world community is hard
pressed to meet the challenge of generating and distributing more and
more food and wealth to meet basic human needs for food, health,
shelter and education and thereby, raise the levels and standards of
living of the world's populations.
So important is the issue of promoting social and economic
development that it has been called "one of the great world crusades
of our time" (Bryce, 1960, p. 3), and "the dominant reality of our
times" (Heilbroner, 1968, p. 190).
Indeed, some scholars have
likened the world-wide preoccupation with development to a new
"religion" complete with its saints and sinners.
As Uphoff and
Ilchmann (1972) see it:
Like any religion, the religion of development
provides its believers with a world view that
defines empirical situations in terms of saints
and sinners, transcedent moving forces,
appropriate and inappropriate acts, and the
sequence of activity most laudable and rewarding.
By simplifying reality, the religion allows its
adherents to confront this reality more confi-
dently, if not necessarily more effectively.
Moreover, it gives them scapegoats; failures can
be charged off to various devils or to faults in
character.
(p. 20)
Uphoff and Ilchmann go on to present a table showing the main
features of the "religion of development" as compared to other sacred
or secular religions.
This presentation is shown in Table 1.
The paramount importance attached to development can be
attributed to the dire socio-economic conditions that still prevail
in most parts of the world.
At the very same time when mankind has

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~
Table 1
The "Religion of Development" and Other Sacred and Secular Religions
Christianity
Communism
Nationalism
Development
The Force of
Jehovah
Dialectical
Destiny of the
Science and technology
Creation (Alpha)
materialism
nation
The Source of
Messiah
Karl Marx
The "Father of
Industrialization
Salvation
the Country"
The Recipients
Elect
Proletariat
Colonized
Poor and under-
of Grace
privileged
The Source of
Devil
Capitalists
Colonialists
Opposition
The Agency for
Church
Party (Communist)
Nationalist
Planning Commission
Progress
movement
(USAID)
Decisive Event
Second Coming
Revolution
Independence
Economic takeoff
The Show-down
Last Judgment
Expropriation of
Expulsion of
the expropriators
colonialists
The· Final Age
Hillennium
Communist common-
National
High-consumption
(omega)
wealth
sovereignty
mass society
Source:
Uphoff. N.T .• & Ilchman. W. F.
The political economy of development.
Berkeleyand
Los Angeles:
University of Calif~rnia Press, 1972, 20.
w-

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4
made great strides in scientific and technological achievements and
has decidedly entered the so-called space age, large segments of this
same mankind are still living under socio-economic conditions
reminiscent of the Middle Ages.
Year after year, data collected by
national governments and international organizations show that while
many battles have been won, the war of development has just begun.
Poverty and deprivation are still the most dominant reality for
hundreds of millions of people around the world.
According to Ruth L.
Sivard (1981), there are 2,000,000,000 people with no access to safe
drinking water; 450,000,000 people who are hungry or malnourished;
42,000,000 who are blind; 12,000,000 babies who die every year before
their first birthday; 870,000,000 adults who are illiterate;
130,000,000 children who cannot get elementary education; 500,000,000
people who are unemployed or underemployed; and 250,000,000 who live
in slums and shantytowns.
As long as these conditions exist in the
world, ac~ieving development will always be a top priority.
The Development Debate
How is it that, in spite of all the efforts undertaken at both
national and international levels to fight world poverty, in spite
of the accomplishments made in many areas such as disease control and
improved communications, the overall results still fall far too short
I
'
of expectations?
In more general terms, how can social systems be
made to grow, progress and prosper socially and economically in the
most desirable way?
What criteria are to be used to gauge their

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5
growth, progress and prosperity, and provide standards and
guidelines for purposive action?
These questions lie at the core of
the development debate, a debate that may actually be as old as
organized society itself and yet, has retained all its relevance -
indeed, all its sense of urgency - today.
To date, no universally satisfactory or even universally
accepted answers to these questions have been found.
Over the years,
those engaged in the study of socio-economic development have
stressed different things at different times and in different
settings.
One of the oldest and best known approaches to development
is the economic approach with its emphasis on economic infrastructure
and the accumulation of material wealth.
Through the years, other
perspectives on development have been proposed, one of them being
the human resources approach which stresses human development,
mainly through education.
A relatively more recent approach to the
development problem is the managerial approach.
The Managerial Approach to Development
The argument put forth by the proponents of the managerial
approach to development is simple and straightforward.
The gist of
their reasoning is that the most common factors stressed by
development theorists - natural resources, capital, people with the
right education and skills, adequate economic institutions - as
important as they are, remain by themselves idle, passive or
unorganized elements.
It takes management to bring them together,

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6
organize them and put them to work in an efficient and effective
manner in order to achieve development.
This reasoning has led many scholars to assert that management
plays the most important role in promoting development.
Those who
make this assertion include, among many others, Robock (1961),
Farmer and Richman (1964 & 1965), Budhiraja (1965), Davies (1965),
Robbins (1965), Stanley (1967), Negandhi and Prasad (1968), Drucker
(1969 & 1974), Koontz (1969), Negandhi (1973b), Lall (1976), Korten
(1979), Lindenberg and Crosby (1981), Pascale and Athos-(1981).
To
quote Drucker (1974),
Wherever we have contributed only the economic
factors of production, especially capital, we
have not achieved development.
In the few cases
where we have been able to generate management
energies we have generated rapid development ••••
Management is the mover and development is a
consequence.
(p. 35)
The role of management in the promotion of development has, for
the most part, been investigated within the field of comparative
management, a particular brand of management which seeks to study
managerial policies and practices under different cultures.
Comparative management is in fact a variant of situational or
contingency management, the distinction being that here, the
situation is a particular socio-cultural milieu.
According to
Negandhi (1975), the field of comparative management can be divided
into three groups:
(1) the economic development orientation; (2) the
environmental approach; and (3) the behavioral approach (p. 335).
This study concerns itself with the first of these three approaches.

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7
Statement of the Study Problem
A comparison of the managerial approach to development with the
economic approach or the educational approach, for example, reveals
a serious theoretical weakness of the managerial approach.
Although
different economists may give different explanations of the
development process, they have at least at their disposal a compre-
hensive theory, if not theories, of economic growth as a conceptual
basis for research.
Likewise but perhaps to a lesser extent,
educators interested in the study of development can build on the
theory of human resources.
By way of contrast, managers thus far,
have failed to come up with a workable and comprehensive theory of
socio-economic development.
This failure has been described by
Negandhi (1975) in these words:
This level of concern [with development] in
cross-cultural management studies leads to a link,
theoretically and empirically, with development
theorists.
The area or discipline of economic
development itself, if not vague, is too general
to be suitable for testing the well-conceptualized
hypotheses necessary for building any discipline.
As a result, the cross-cultural management field
did not progress far beyond identifying and noting
the importance of managerial input in economic
development.
(p. 335; emphasis added)
There is thus an urgent need for studies aimed at building a
theory base for the managerial approach to development.
This study
addresses this need and proposes t~ build a comprehensive framework
for the study of developmen~ from a managerial perspective.
It is
intended to be part of the ongoing exploratory works which seek to

---

8
lay the conceptual foundations of a general managerial theory of
socio-economic development.
Problems Related to the Lack of
a Comprehensive Theory
The central problem investigated in this study has its roots in
some more general problems that beset the entire field of comparative
management.
It is, therefore, necessary to take a close look at these
general problems before attempting to clearly define and delineate
the problem area of the study.
In a much quoted article titled "The Management Theory Jungle,"
Koontz (1961) levelled a severe criticism against what he perceived
to be a real Babel Tower in management theory.
According to him,
management scholars tend to attach different meanings ,to the same
key words and give different definitions of management as a body of
knowledge.
Furthermore, he argues, many newcomers to the field tend
to dismiss past observations and analyses, and theorists are unable
or unwilling to understand each other.
Koontz's criticisms apply just as well to comparative
management.
As many scholars point out - e.g., Nath (1969),
Schollhammer (1969, 1973, 1975), Boddewyn and Nath (1970), Roberts
(1970), Negandhi (1974), Kiggundu et al. (1983) - the field of
comparative management is plagued by a number of weaknesses that need
correction if a useful theory is to be developed.
According to
Schollhammer (1975), a large portion of current research can be
criticized as (1) merely descriptive of empirical phenomena and

---

9
lacking in analytical rigor, (2) episodic and produced on an ad hoc
basis, (3) reflecting substantial methodological deficiencies,
(4) self-centered in the sense that already existing studies are
frequently ignored.
Three major problems are most often cited in the literature and
are particularly worthy of note because of their implications for
theory building.
These problems are reviewed below.
Problem of Conceptualization
Negandhi (1974) has flatly asserted that cross-cultural
management studies have "too many conclusions, not enough conceptuali-
zation" (p. 59).
This problem manifests itself in the lack of
similarity in the definition and operationalization of concepts by
different scholars.
This state of affairs has been a stumbling block
in research and theory building in comparative management.
Koontz
(1976) contends that many writers in comparative management have
failed to meet the very first requirement of science, which is the
utilization of clear concepts and definitions.
He writes:
In reviewing the research and analysis that have
been made in the field of comparative management,
one is struck with how many of the differing
conclusions as to the transferability of manage-
ment are due to problems of semantics.
The
concepts of "management and philosophy,"
"management know-how," "management principles,"
and "management knowledge," are usually left
either undefined or not clearly defined.
(p. 84)
Three main reasons seem to account for the present conceptual
problems in comparative management:

---

10
First, management is so pervasive that it escapes easy and clear-
cut definition.
This point is well emphasized by Budhiraja (1965):
The term 'management' is difficult to define; it
means different things to different people.
Some
identify it with functions performed by entre-
preneurs, managers or superiors.
Others think of
it as a particular group of persons.
To workers,
management is synonymous with the exercise of
authority over their working lives.
Some social
scientists view management as a class with
definable status and power in society.
Mangement,
indeed, is all of these things and perhaps more.
It has economic, social, and political dimensions.
(p. 18)
Secondly, and closely tied to the preceding explanation, is the
fact. that management is actually more than a concept.
According to
Haas (1974), a concept whose semantic field is wide enough to
subsume other concepts, should be called a "metaconcept" (p. 47).
In this sense, management is a metaconcept that includes many
concepts such as planning, drganizing, leading and so on.
Given
the width of the semantic field of the term "management," its
definition, operationalization and measurement are bound to vary with
different researchers.
Thirdly, comparative
field which
is
'¥"'¥.'l"l,.t.
Under
these circumstances, scholars are
their
research methodologies and their findings until the field reaches a
stage of relative stability and C0nsolidation.
As Merton (1957)
points out:

---

11
There is a phase in the development of a discipline
in which ad hoc measures and indices are evolved
anew in each study so that although the words
referring to the property remain much the same,
the aspect of the phenomenon they actually
designate varies substantially.
(p. 325; emphasis
in original text)
In short, the conceptual problems in comparative management
are attributable to some visible reasons.
But lest the notion take
hold that these problems of definition and conceptualization are
insolvable, Albanese (1978) has made the helpful suggestion that a
universally accepted definition is not necessary:
Managing can be and is defined in several ways,
depending on the purposes of the definer.
Differences of opinion exist about what should
be included in the definition, and it is unlikely
that this problem will ever be resolved perma-
nently.
If a universally accepted definition of
managing were necessary before we could start our
study of managing, we could never start!
Fortunately, all we need is a nefinition that is
(1) consistent with other widely used definitions
and (2) useful for our purposes...
(p. 7)
Problem of Knowledge Integration
A second major problem that plagues comparative management is
the inability of researchers to integrate their findings into a
coherent body of knowledge.
In this regard, Sigelman (1976) has
made a criticism of comparative administration that is relevant to
comparative management:
Different scholars with different research
perspectives use diffe.~~t instruments to inter-
view different types of bureaucrats in examina-
tions of different problems in different nations.
(p 624)

---

12
The lack of integration can be observed at two levels:
first,
within the field of comparative management itself and second, within
the larger field of general management.
In other words, comparative
management scholars not only tend to ignore each other's work, but
they also fail, in many instances, to make the needed connection
between their specialized field and general management theory.
Schollhammer (1975) puts this best when he writes:
A sizable portion of the on-going international
and comparative management research is not
aimed at theory-building in the sense that
certain hypotheses are tested.
There is evidence
of an inadequate linkage between empirical
research and existing theoretical constructs.
Theoretical and empirical research in current
international and comparative management research
seem to be largely independent of each other
instead of interdependent and mutually supportive.
(p. 38)
Some scholars have made concrete proposals about how to
integrate the field of comparative management.
For example, Nath
(1974-1975) has called for a linking of comparative management to
organizational theory.
Similar proposals were made by Negandhi
(1975) and Cabell (1977).
Another proposal called for the adoption
of an open system theory (Negandhi, 1973a).
Still, the problems of
integration remain acute and new attempts to solve them are needed.

---

13
Problem of Units, Levels and
Focus of Research
Current research in comparative management is, in general, micro-
analytical. *
The units and focus of study are either individual
managers and the people they manage, or individual organizations.
There is nothing wrong with such an approach as long. as the purpose of
research is to increase kno~l~dge about managers and organizations.
However, problems do arise when inferences are made about the larger
social system from the findings of micro research.
This point is of
great importance in the study of the relationship between management
and development because development is a mega-phenomenon that affects
a social system in its entirety.
To draw inferences from studies
conducted at the level of managers or organizations about the larger
social system is to commit an ecological fallacy.
As Guhan (1981)
rightly points out:
A part of the problem is that the management
approach seeks to arrive at its 'concepts and
technologies' for 'development mana8ement' drawing
upon its experience and enterprise management.
This process ignores some basic differences.
To
the enterprise manager, the political system and
its functioning are externalities or 'the environ-
ment' which is to be lived with or manipulated in
the pursuit of the interests of the enterprise.
Onthe other hand, politics is thoroughly internal
to development; the development manager cannot
manipulate, but is rather manipulated by it.
(p. 1689)
*Whether a study on organizations is micro or macro depends in
part, on the frame of reference of the researcher.
It is not uncommon
to find in the organizational literature studies that are considered
to be macroanalytic because the organizations studied' are viewed as
macro-organisms studied in their globality.
In the present study,
however, the frame of reference is a large social system as defined
later in this chapter, i.e., a whole country.
Organizations then are
micro-parts of this large social system.

---

14
Since there is an infinity of managers and organizations, scholars
who focus their research on them, especially in cross-country settings,
are forced by the sheer number and magnitude of the issues involved
to devote their efforts to what Schollhammer (1975) calls "small
problems" (p. 39).
This, in turn, makes integration and synthesis
of knowledge all the more difficult to achieve and all the more
needed.
Schollhammer (1975) sums up the situation in these words:
A very substantial percentage of the research in
progress is one-dimensional, i. e., narrow in
scope and directed to 'small' problems, with
emphasis on short-run results.
This situation
would not have to be viewed critically if at
the same time a comprehensive synthesizing or
integrative research effort was made.
This is,
however, not the case.
International and
comparative management still consists of a
variety of theories, paradigms and a substantial
volume of empirical studies in search of a
synthesizer.
(p. 39)
The Need for a Macromanagerial Perspective
and the Significance of the Study
From the foregoing analysis, it appears that the field of
comparative management and the search for a managerial theory of
development have a lot to gain from a more macro-synthetic, global
approach.
This contention is supported in the research literature.
For example, in one of the most up-to-date assessments of the field
of comparative administration and management, Kiggundu et al. (1983)
have stated that
The findings in particular comparative studies
across countries or regions make a convincing
case for the development of more global approaches
to research on and utilization of administrative
science.
(p. 80)

---

15
The need for a macro-managerial approach extends beyond the
confines of comparative management and well into the realm of general
management.
This point is well stressed by McFarland (1977):
Empirical research in large, complex organizations
has advanced to the point where interorganizational
relationships and environmental influences are
being studied more intensively.
The increased
knowledge now demands intensive research on manage-
ment in the context of social institutions.
A
macromanagement level of theory and conceptualiza-
tion is needed for understanding the linkages of
managers and their organizations within and across
social institutions.
Macromanagement theory will
not only serve to guide and interpret research on
management processes in society at large, but will
also play a vital role in the determination of
social, political, and economic policy.
(p. 613;
emphasis added)
To understand the importance of a macro-managerial approach, one
can look at the discipline of economics.
It is customary to think of
economic theory as a body of knowledge with two branches:
(1) Micro-
economics which focuses on individual consumers and firms and (2)
Macroeconomics which focuses on aggregations of economic units,
especially national economies (Brigham & Pappas, 1976, p. 3).
A macro perspective in comparative management is needed not as a
replacement of micro theory, but as a complement so that the two
branches can reinforce each other and contribute to the widening and
enrichment of the methodologies, contents and processes of
management.
Exclusive reliance on a micro approach leads to the
atomization of knowledge.
At any rate, a general manag~rial theory of
development cannot be developed at the micromanagerial level alone.

---

16
The statement of the central problem of the study and the review
of the related problems listed above set the stage for the enunciation
of the objectives of the study.
Purpose of the Study
The primary purpose of this study is to make a contribution to
the development of a unified managerial theory of socio-economic
development.
It attempts to do so by conducting an exploratory
inquiry into the relationships between management and development, the
latter being the dependent variable.
This overall purpose includes
a number of more specific objectives which are:
1.
To develop an integrated framework for the study of
development from a managerial standpoint.
The framework is
intended to offer both a research tool for synthesizing
existing knowledge on the subject under consideration, and
an integrative device of management theory and development
theory.
2.
To suggest ways for empirically testing the usefulness of
the proposed framework as a research tool and to provide an
illustrative testing of some key elements of the framework.
3.
To generate testable hypotheses for further research, one
of the hypotheses being a proposition for assessing the
effectiveness of social systems in achieving devel~~ment.
With regard to the more general problems of comparative
management - conceptualization, integration of knowledge, and focus

---

17
of research - the study proposes to contribute to their solution
in the following manner:
1.
As a way of contributing to a standardization of concepts
and measures, the study proposes definitions of terms based
on a synthesis of prevailing definitions and uses concepts
and measures which are or can be easily operationalized and
for which empirical data can be collected.
A standardization
of concepts and measures will help solve some of the
conceptual problems in comparative management.
2.
To address the problem of the lack of integration of knowledge,
the study adopts a synthetic, inventory-type of methodology
that calls for the incorporation of existing works in any
new attempt at theory building.
An interdisciplinary
approach is chosen and the theory base of the study is
clearly specified.
3.
To contribute to the development of a macromanagerial theory,
the study focuses on large social systems, namely, whole
countries as its units of research.
Study Assumptions
The following assumptions were made in conducting the study:
1.
A positive relationship is posited between management and
the achievement of development.
This means that the stD~y
does not primarily attempt to answer the question:
Why

---

18
does management play a key role in the pursuit and
achievement of development? *
2.
The study further assumes that an interdisciplinary theory
base provides the best and strongest conceptual "ground"
for the development of a managerial theory of development.
This assumption is warranted in light of the fact that both
fields of inquiry - management and development - are highly
interdisciplinary.
3.
It is also ,assumed that the goal approach to effectiveness
is the most suitable approach for assessing the effectiveness
of social systems in achieving development.
This approach
to effectiveness is defined later in this chapter.
Study Scope and Limitations
The major limitations of the study are as follows:
1.
The study is exploratory.
According to Kerlinger (1973):
Exploratory studies have three purposes:
to
discover significant variables in the field
situation, to discover relations among variables,
and to lay the groundwork for later, more
systematic and rigorous testing of hypotheses.
(p. 406)
In accordance with the purposes of exploratory research and
the already stated purposes of this study, key managerial
variables relevant to the study of development will be
identified and the relationships between some of these
*For a review of some of the reasons why management plays an
important role in development, see Appendix A.

---

19
variables will be discussed.
The primary interest of the
study lies, however, in the third type of the purposes of
exploratory research identified by Kerlinger:
laying the
groundwork for future research.
What the study does is to
propose a skeleton of theory - the proposed framework - along
with a number of hypotheses, with the hope that subsequent
research will add more flesh to this skeleton of theory.
There is no formal testing of hypotheses in the study.
2.
The study does not attempt to propose definitive solutions
to the managerial problems of promoting development.
Instead,
this exploratory inquiry is more concerned with the
epistemological question of developing a theoretical basis
for the study of development from a managerial point of view.
It is not intended to provide prescriptions for the management
of development.
3.
The units of study are whole countries.
They were chosen for
the purpose of addressing the need for a macro perspective
in comparative manqgement.
4.
The study makes relatively little use of statistics.
An
analysis of data is provided but is only intended to be
illustrative rather than prescriptive.
Three considerations
militated against an exclusive reliance on empirical data
analysis in the study.
First, exploratory research does not
usually allow a researcher to draw inferences and practical
implications from the study; conversely, because the

---

20
researcher is not expected to draw practical implications
from the study, but only to suggest avenues for future
research, there is no pressing need for relying on data
treatment.
Secondly, as will be shown in Chapter IV, the
reliability of the data used in the study is questionable;
it is, therefore, more appropriate to use the data for
illustrative purposes only, because a study based on the
analysis of unreliable data would result in misleading
findings.
Thirdly and most importantly, this study is more
concerned with conceptual analysis than data treatment.
As
Negandhi (1974) and Schollhammer (1975) point out, the most
pressing problem in comparative management is not a lack of
empirical studies, although this problem does exist in some
areas; it is rather a problem of
and theory building.
Definition of Te
Since this study is chiefly concerned
and theory building, a clear definition of
point, necessary.
The definitions given below - the~ are in general
based on a synthesis and/or modification of current definitions - are
proposed with reference to whole large social systems such as
countries.

---

21
Definition of Development
Development, used interchangeably with the phrase socio-
economic development, is the proven ability of a social system to
solve its existential as well as its essential problems over a
relatively long period of time.
This definition is primarily based on a definition of development
proposed by Everett Kleinjans, which is quite representative of
current views on the development process and reads as follows:
Development is the process through which a society
moves to acquire the capability of enhancing the
quality of life of its people, primarily through
the solution of its problems.
In this sense,
although they have been slow to recognize it, the
United States and other affluent countries are
still underdeveloped in such areas as urban life,
environmental protection, race relations, crime,
and other social problems.
(Everett Kleinjans,
"Foreword," in Schramm and Lerner, 1976, p. ix)
Such a definition has the merit of showing that every nation is
underdeveloped with regard to a particular problem and developed with
regard to another one.
This definition can be contrasted to the one
given by Riggins (1968) and quoted in Chapter 11.
Riggins stresses
"rising income," and his definition is more representative of past
views on development, although its insistence on the temporal length
of the development process is still valid.
The definition proposed by
Kleinjans is more objective and balanced because it does not make a
value judgment as to which type of problem solving ability is the best
one.

---

22
Three key elements are stressed in the definition of development
proposed in this study.
First, the definition explicitly mentions
"proven ability," thus implying that development cannot be defined
in terms of latent or potential ability.
All the nations of the world
have the potential to develop, though this potential varies.
Yet,
the majority of these nations are considered underdeveloped because
they still have to convert their potential into reality.
Secondly, the definition makes a distinction between existential
and essential problems.
These terms are employed in their
philosophical meaning.
Existential problems are those that the
social system faces in its concrete, day-to-day existence.
Essential
problems are more abstract in the sense that they have more to do with
the spiritual, metaphysical dimensions of the life of the social
system.
Finally, the definition emphasizes the length of the time during
which development occurs.
A country that is able to feed its people
for 10 years, then is unable to do the same for the next 10 years,
cannot be said to have proven its ability to solve the existential
problem of hunger.
Therefore, it cannot be considered to be developed
with regard to this problem.
The process of development is reversible
and multidimensional.
Definition of Management
Management is the human act of leading people and marshaling and
mobilizing resources to achieve common goals in the most efficient and
effective way.

---

23
The terms "goals," "effectiveness" and "efficiency" are defined
below and, therefore, need no further explication here.
As
mentioned earlier in this chapter, various scholars give different
definitions of management.
However, two common threads run through
most of these definitions of management and they are:
working with
people, and achieving goals.
The word "act" is chosen instead of more popular words such as
"process," "art," "practice" because it is semantically wider and
expresses better the dynamic nature of management.
The definition of management proposed above stresses the point
that management goes hand in hand with efficiency and effectiveness.
Admittedly, one can talk about a system being managed inefficiently
or ineffectively.
In such a case, it would be more appropriate to
talk about mismanagement rather than management.
Definition of Other Terms
The other key terms used in this study are defined below in
alphabetical order.
Effectiveness
Effectiveness is the degree to which the managers of the social
system actually achieve societal goals.
This definition is based on the goal approach to effectiveness,
which is a wide:f known and used approach.
There are competing
approaches to the assessment of effectiveness.
However, it can be
argued that the goal approach to effectiveness is perfectly suited to

---

24
the problem of development
because "becoming developed" can be
easily conceptualized as a major goal which society seeks to achieve.
This major goal can then be broken down into smaller and more specific
objectives, the achievement of which will contribute to the
realization of the major development goal.
Efficiency
Efficiency is the extent to which the managers achieve societal
goals with a minimum expenditure of resources.
This definition of efficiency resembles the economic concept of
technological efficiency.
It was mainly inspired by Simon (1970) who
defined efficiency as "that choice of alternatives which produces the
largest result for the given application of resources" (p. 179).
Framework
A framework (conceptual) is an abstract and hence, simplified
representation of a real life phenomenon from a particular perspective
and for a particular purpose.
To illustrate, the framework proposed
in this study is an abstract and simplfied representation of the
process of socio-economic development from a managerial perspective,
for the pu!pose of providing an epistemological tool for the study of
development.
A framework then, is a conceptual frame similar to a
model.
In this study, how~ver, a framework is considered to be
slightly different l~um a complete model in the sense that it is less
fully developed than a full-fledged model.
As said earlier, this study

---

25
only proposes the bare elements of a "skeleton" of theory.
This is
the essence of an exploratory study.
Goals
Goals are the broad ends sought by a social system and for which
it expends its resources and efforts.
It is a common practice in the
management and organizational literature to make a distinction between
official or stated goals, and operative or real goals.
The latter are
those goals for which efforts and resources are actually spent.
March and Simon (1958) have identified three types of goals:
(1)
official or stated goals; (2) operative goals which reflect the true
intentions of organizational leaders but may be hidden from the public;
and (3) operational goals which are measurable.
In this study, the
terms operative and operational are used interchangeably.
Social System
A social system is defined in Webster (1971) as "the patterned
series of interrelationships existing between individuals, groups, and
institutions and forming a coherent whole" (p. 2162).
This definition does not specify the boundaries of a social
system.
This is so because it is possible to arbitrarily set the
limits of a system to fit one's purposes.
For example, a social
system can be defined as compriFing the members of a family in Iowa
City, or the inhabitants v* a village in Upper Volta.
In this study,
a social system is equated with a whole nation-state.

---

26
In addition to the terms defined in this chapter t other terms
will be introduced later t especially in Chapter V; these terms will be
defined upon their introduction t or shortly after.
Overview and Plan of the Study
Chapter I presented the study problem.
This presentation included
a note on the importance of development t a statement of the study
problem t followed by an overview of some problems in comparative
management that serves to highlight the significance of the study.
A
case was made for a macromanagerial approach to the study of
development.
This chapter also included statements on the purpose of
the studYt its assumptions t scope and limitations t a definition of
terms t and the plan of the study.
Chapters 11 and III consist of a review of the related literature
and taken together t provide the background and the topical context
of the study.
Chapter 11 deals with the development literature in
general t and it reviews the main trends in development ideas in the
post World War 11 period t as well as the different views that have
been advanced by different scholars about the causal factors of
development.
Chapter III is more narrow in scope and focuses
exclusively on some recent works in comparative management that are
relevant to development.
In Chapter IV t the methodology used to conduc~ th~ study is
presented t following an explanation of some practical considerations
that led to the choice of this particular methodology.
Chapter IV

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28
CHAPTER 11
REVIEW OF DEVELOPMENT LITERATURE
To provide some of the elements of the topical context of this
study, this chapter offers a background on development through a review
of some of the major trends in development ideas since World War 11.
This review eontains, among other things, an examination of the main
alternative views that have been expressed by various development
scholars about development and its determinants.
Chapter 11 includes these major sections:
(1) The Interdisci-
plinary and Eclectic Nature of Development Studies; (2) Competing
Approaches to Development; (3) Broad Changes in the Evolution of
Development Ideas; (4) The Search for a Prime Mover of Development;
(5) Obstacles to Development; (6) Recapitulation.
The review of the development literature was conducted according
to a simple technique of topical grouping.
The following criteria
were used to select writings for inclusion in the review:
(1) the
writings clearly belong to a distinct perspective on development;
(2) they belong to the post-World War 11 period.
By and large, the
works reviewed constitute a representative sample of the development
literature.

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29
The Interdisciplinary and Eclectic
Nature of Development Studies
The field of socio-economic development studies is characterized
by a great number of theories and opinions.
Bearing witness to the
great diversity of development ideas, there has been in the last
three decades or so, a tremendous growth in the development literature.
To quote Eugene R. Black former president of the International Bank
for Reconstruction and Development,
Few subjects have received more intensive study in
recent years than the subject of economic develop-
ment.
The disciplines of all the social sciences
have been brought to bear, and a whole new body of
literature has resulted.
To digest and order this
body of literature would require a philosopher,
widely schooled in academic economics, with a good
command of history, who hel~ a degree in civil
engineering, with geography and anthropology as
minor subjects, and who had taken a post-graduate
course in modern social psychology.
(as quoted in
Riggins, 1968, p. 7; emphasis added)
The point made by Eugene R. Black regarding the seemingly
insuperable task of "digesting" and "ordering" the development
literature is valid because, as he points out, the subject of
development has been - and still is - investigated by all social
scientists.
Nonetheless, it is possible to provide a useful overview
of development ideas by limiting the overview to the major trends-in
development thinking instead of attempting to cover the entire body
of the development literature.
Such an overview is provided in the
t~_lowing pages.

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30
Competing Approaches to Development
Weaver and Jameson (1978) attempted to discern the main
paradigms * of development by focusing on these aspects of these
paradigms:
value assumptions about human nature, the good life and
the good society; operational criterion provided for attaining the
good life and the good society; general methodology; strategies
suggested for solving the development problem.
On the basis of these
guidelines, they identified three major approaches to development which
they termed respectively the conventional approach; the non-
conventional or political economy approach; the derivative or growth
with equity approach.
The Conventional Approach to Development
The conventional approach to development, according to Weaver and
Jameson, is the same as the traditional, neoclassical, orthodox, or
economic approach.
It began with Adam Smith and was carried on by
economists like Ricardo, Mill, Marshall, Schumpeter and Keynes.
More
recent scholars who represent this approach include, among others,
Arthur Lewis, Nurkse and Hirschman.
In this approach, man is
assumed to be a rational animal seeking his self-interest.
For him,
the good life means the maximization of pleasure and the minimization
of pain, that is, getting the greatest possible amount of goods and
*Weaver and Jameson borrow the conccl''" of "paradigm" from
Thomas Kuhn.
It is defined as a "world-view shared by a group working
on or thinking about a particular topic."
(Weaver & Jameson, 1978,
p. 2).
The term is used in this study with the same definition.

---

31
services with the smallest effort.
The criterion of development is
the growth of output in terms of Gross National Product (GNP) and the
strategy for achieving development is basically the adoption of a
capitalist model of development.
More specifically, a number of policy guidelines are proposed,
the main ones being the following:
(l) "laissez-faire" which calls
for a limited role of government in the belief that development is
best achieved through the actions of private individuals (advocated
by economists like Friedman, Haberler, Johnson and Bauer); (2)
planning which, in turn, can be done in two ways:
a) balanced growth
according to which investment should be made simultaneously in many
industries so that these industries will provide the demand for each
other's output, and b) unbalanced growth, an approach with the most
linkages to other industries.
The balanced approach is advocated by
scholars like Nurkse (1967) while Hirschman (1958) supports the
strategy of unbalanced growth.
Because of its emphasis on economic growth, the conventional
approach is sometimes referred to as the "grow now, distribute later"
or the "trickle down" approach to development.
The Non-Conventional Approach to Development
Unlike the conventional approach, the non-conventional approach,
also known as the radical or political economy approach, stresses the
*The Gross National Product (GNP) is the value of all goods and
services produced in the national economy in a given period.

---

32
paramount importance and influence of the social interactions of
individuals and the questions of equity and distributive justice.
This line of thinking started with Karl Marx and continued with Lenin,
Mao, Baran and Gunder Frank.
This school of though is also shared by
some Latin American dependency theorists such as Furtado, Sunkel and
Dos Santos, as well as by the so called liberationists (Illich,
Goulet, Freire).
Like the conventional approach, this approach,
too, assumes that people are rational beings but insists, however,
that they act in groups and that, beyond the satisfaction of basic
human needs, the good life is the result of social activities.
Accordingly, development is to be achieved in a collective manner
which involves the whole social system.
The Growth with Equity Approach:
A Derivative of the Conventional and
Non-Conventional Approaches
The third approach identified by Weaver and Jameson is an out-
growth of the first two and may be called the growth with equity
approach.
It has a number of variants and is associated with such
writers as Grant (1976), Haq (1976), Hellor (1976), Waterston (1974,
1975), Adelman (1975) and Streeten.
Though this approach rejects
the other visions, it does borrow many of their elements.
For
example, it uses the capitalist institutions of the traditional
(
approach and the egalitarian ideas of the political economy approach.
According to Weaver and Jameson, each approach has its limita-
tions.
The growth approach is unsatisfactory because it does not give

---

33
due consideration to the questions of equity and distributive justice
whereas the radical mode does not adequately address the problem of
promoting rapid growth.
As for the third approach, critics contend
that it offers nothing new.
Weaver and Jameson briefly mention another approach to development
which they call the "neo-Malthusian" approach (p. 73).
However,
their analysis rests essentially on the three approaches reviewed
above.
In addition to the three main approaches to development identified
by Weaver and Jameson, there are other perspectives on development.
To be sure, many of these other perspectives can be grouped within
the three-pronged classification proposed by Weaver and Jameson.
For example, dependency theory can be lumped together with either
the non-conventional approach, or the growth with equity approach.
However, these perspectives on development have received so much
attention on the part of development theorists that they warrant a
separate review.
Three of these perspectives are particularly
important:
(1) the human resources approach;
(2) dependency theory;
and (3) the New International Economic Order.
The Human Resources Approach
A perspective on development that began to be popularized in the
1960's by scholars like Schultz (1963) - and later ry Schultz (1970),
Becker (1975), Denison (1974), among others - is the human resources/
human capital approach.
The proponents of human capital theory

---

34
contend that expenditures on education, health and other social
services, are not mere consumption expenditures.
Instead, they amount
to a sound investment in people to build a human capital that will
contribute to more economic growth and development.
According to Lockheed et al.
(1980), economists only began to
pay systematic attention to the contribution of education to economic
growth in the 1960's.
Yet, they point out, educators in the 1920's
had already begun to investigate the role of education in improving
agricultural productivity.
For instance, as early as 1920, studies
were reported by Folkes that showed a strong influence of education
on agricultural productivity in Indiana, Missouri and New York. *
A more recent historical antecedent to the theory of human
capital can be seen in the works of Robert Solow (1957) who showed
that over 80% of the growth in output per labor hour in the D.S.
economy for the period of 1909-1949 was attributable to technical
progress.
Following in Solow's footsteps, other researchers showed
that technical progress is achieved through education, training and
research.
The main contribution of the human capital approach to development
was to rightly point out that, in the final analysis, people are the
key to growth and development.
Physical capital is important but
people are a sine quanon of development.
There is still, however,
*The study mentioned by Lockheed et al. is Gertrude Folks, "Farm
Labor vs. School Attendance," American Child, 2, 1920:73-80 (Lockheed,
et al., 1980:39n)

---

35
an ongoing debate on whether the full development of human capital is a
cause, a concomitant, or a consequence of overall development.
Dependency Theory and Development
One of the newest perspectives on development, according to
Portes (1977), is dependency theory which considers development as
liberation from various forms of dependency.
Unlike most other
development theories, dependency theory originated in the Third World.
It has been most forcefully expounded by Latin American scholars such
as Sunkel, Prebisch and Furtado.
The proponents of dependency theory
contend that the developing countries are in a position of dependency
and subservience vis-a-vis the developed countries.
Development and
underdevelopment, they argue, are not two different stages in the
history of mankind but rather the integral parts of the same world
economy.
Breaking the relationships of dependency and exploitation
that tie the developing countries to the developed nations is a
necessary first step for the development of the poorer countries.
Dependency theory has been criticized for exaggerating the
importance of external factors while neglecting the key role of
internal factors within individual countries:
In the hands of some writers, dependency has
become a deus ex machina explanation of
everything that is wrong with Third World
societi~s..•.
!i.st, some writings have equated national
development with liberation from foreign
domination ...•

---

36
Second, denunciations of imperialism and
dependency as global phenomena leave no room
for analysis of national variants.
(Portes,
1977, p. 124)
In sum, the critics of dependency theory argue that it is biased
and one-sided and therefore, is of limited value.
The New International Economic Order (NIEO)
Dependency theory contributed in part in convincing the leaders of
the developing countries that the present world economic system is
fundamentally detrimental to their development efforts.
Hence, their
demand for a New International Economic Order.
The following
quotation gives a good idea of what the NIEO is:
The present phase of the much longer-term debate
on international economic issues between the
developed and the developing countries grew out
of intensified pressure by the world's poorer
countries in 1973-74 for fundamental changes in
the existing international economic order, which
they perceived to be working against their
interests and which they had been actively
seeking to change since the creation of the U.N.
Conference on Trade and Development in the early
1960's.
At the 1974 Sixth Special Session of the
U.N. General Assem2ly - spurred on by the
successes of OPEC,
which they saw as strengthening
their bargaining power - they demanded better
access for their manufactured goods to the markets
of the industrialized world, more stable and
preferably higher prices for their raw materials,
renegotiation of their external public debt, curbs
on the activities of multinational corporations
and improved access to technology, a growing share
in the world's industrial production, a new and
less demeaning aid relationship, and a greater
voice in the management of the internatio ..~l
*OPEC: Organization of Petroleum Exporting Countries.

---

37
monetary system and the international financial
institutions.
Collectively, their goals came to
be known as the "new international economic order."
(McLaughlin, 1979, p. 77)
Other Approaches to Development
There are other approaches to development.
One of these is a set
of theories of social evolution which, according to Portes (1977),
date back to 19th century Europe and evolved to lead to new
formulations such as the theory of social differentiation.
In the
perspective of social evolution theory, ~evelopment is built on
polarities provided by ideal-typical forms of social organization
(for example, modern versus traditional).
Development is thus
considered to be the gradual passage from one social form to a more
differentiated form of social organization.
Since the field of development studies has benefited from the
contributions of all the social sciences, anthropologists,
communication specialists, geographers, historians, philosophers,
sociologists, just to mention these, have all proposed their own
perspective on the development problem.
But by and large, the main
approaches to development are those reviewed above.
Broad Changes in the Evolution
of Development Ideas
According to Brookfield (1975), the view of development as the
realization of human potential is ancient and the idea of economic and
social progress dates back to classical times.
For him, what is new
and significant is the realization of unacceptably low living

---

38
standards among national populations as a whole.
Another rather
recent development idea as seen by Brookfield is the finding that
laissez-faire policies have severe limitations in the promotion of
development and that government action is needed; this view gives
legitima~y to development planning.
There is also a growing concern
about world inequality, and widespread agreement that economic growth
alone is not enough; equally important is the need for restructuring
international specialization and reducing inequalities.
Parallel to this evolution, notes Brookfield, there has been
a trend away from conventional models of growth to new approaches
which take into account the issues of world inequalities and the
distinctive features of the less developed countries.
These changes
in development thinking can be attributed to a number of major
historical factors of which the following are most worthy of note:
the great depressions; the two world wars and their related events;
the formation of the United Nations Organization; the advent of
Marxism and the ensuing fear of revolution in the West; the progress
of decolonization and the emergence of the Third World countries as
independent and sovereign nations.
Streeten (1977) has identified six major changes in development
thinking:
(1) the emergence of differing views between the
industrialized countries' and the Third World as illustrated by the
shift from a lino : theory of development to a theory of neocolonialism
and dependency; (2) a change in emphasis on the meaning and measure

---

39
of development; (3) a growing concern about the world's common
problems and shared constraints; (4) a greater attention to actual
or potential conflict; (5) an acknowledgment of the wide variety of
experiences, interests and stakes in the world order; (6) a shift
from optimism about development prospects to deep pessimism in the
1970's.
Another way of looking at changes in development ideas,
according to Streeten, is to consider some key elements such as
capital, entrepreneurship, skills, education, foreign trade,
population, unemployment, rural development, and see how they have
respectively influenced development thinking over time.
In this
regard, many earlier ideas have been discarded and new strategies
are emerging.
For example, many earlier development economists
thought that the experience of the rapid recovery of post World War 11
Europe with American assistance could be duplicated in the developing
countries.
Top priority was given to industrialization and
infrastructure and there was a belief that high average growth rates
of production would reduce poverty.
The goals of development were
narrowly defined in terms of GNP and growth rate, and the contribution
of the developed countries were primarily considered to be capital
and technical assistance.
Moreover, the Third World was regarded as
a monolithic bloc with its common problems, and development waF
exclusively seen as a problem of the underdeveloped coul. __ ies alone.
Today, these ideas have largely been abandoned.

---

40
Other scholars whose writings give a good sense of the changes
in development thinking are, among others:
Krause (1961), Ewing
(1966, 19n9), Higgins (1968), Schiavo-Campo and Singer (1970),
Livingstone (1975), Ewing and Koch (1977), Salvatore and Dowling
(1977).
Based on their writings as well as those of the scholars
reviewed above and others, it is possible to identify two broad types
of changes that have occurred in the history of development ideas
since World War 11.
The first major change is to be seen in the shift from an
exclusive reliance on theories originating in the industrialized
countries with little or no relevance for the developing world to
more relevant, more relativist and often Third World-centered
theories.
This type of change can be explained by the failures of
past development approaches, the increase in knowledge and world-wide
communications, and the concomitant imperative for factual accuracy
and relevance.
The second broad type of change relates to the increased concern
for more equality between and within countries and regions in an
interdependent world with limited resources.
This concern can be
attributed to the pressures from poor countries, the emergence of
new geo-political conditions and a new awareness in the rich
countries of the interdependency of world problems.

---

41
The Search for a Prime Mover of Development
From the preceding overview of historical trends in development
thinking. it is obvious that over the years. development scholars
have had divergent opinions as to what factors account for the
development or underdevelopment of nations.
The earlier causal
explanations of development and underdevelopment have been summarized
by Heilbroner (1968) as follows:
Why are the underdeveloped nations so pitiably
poor?
Only a half-century ago it was common to
attribute their backwardness to geographic or
climatic causes.
The underdeveloped nations
were poor, it was thought. either because the
climate was too debilitating or because natural
resources were lacking.
Sometimes it was just
said that the natives were too childlike or
racially too inferior to improve their lot.
(p.
190)
The Economic Determinants of Development
In the recent history of the development debate, economists were
the first to seriously grapple with the issues.
The reason for that
was simple:
Unique among the social sciences, economics had a
metric - money - and hence would readily measure
and quantify in areas where other social sciences
could not.
(Bryant & White, 1982, p. 6)
For the most part and quite logically, economists tended to pose
the development problem in predominantly, if not exclusively,
economic terms.
Because de-relopment was considered ab initio to be an
economic problem, its achievement was believed to depend on economic

---

42
activities.
In this perspective, the very definition centered around
the idea of increasing national income.
As Riggins defines it,
development is:
a discernible rise in total and per capita
income ... widely diffused among occupational
groups and among regions and continuing for at
least two generations.
Fluctuations may take
place around a long-term trend, but a rise in
income for a decade or two followed by relapse
into chronic stagnation over long periods (such
as seems to have taken place in Indonesia) would
not constitute development.
The process will be
accompanied by structural change,. narrowing gaps
in productivity among sectors and regions, and
improved education and health.
(Riggins, 1968,
p. 33)
From this definition, it follows that such things as structural
change, education and health, are the consequences or the concomitants
of development since they only "accompany" it.
The key factor is
rising income.
And quite logically again, promoting development from
this standpoint means first of all, fostering economic growth in
order to increase income.
And for growth to take place, the
traditional factors of production - mainly land, capital and labor -
were strongly emphasized.
To illustrate this point, Adler (1961),
for example, claimed that capital formation was one half of economic
develof>ment and that "the other half is rather meaningless without it"
(pp. 118-119).
To the three pillars of the production function were added some
adjunct elements such as the division of labor, the level of
technology, the existence of an entrepreneurial class, and so forth.

---

43
The combined factors constituted the essential components of growth,
and hence were the determinants of development.
When viewed in this manner, development is hindered in the poor
countries because some of the necessary ingredients are missing.
Therefore, for development to happen, the missing elements must be
provided and obstacles removed.
When they were put to the test in
real life situations, these prescriptions did not bring about the
expected results.
The Non-Economic Dete~minants of Development
There are two main reasons why an exclusive emphasis on the
economic aspect of development could not bring about rapid
development.
For one thing, it was discovered that a country could
well have economic growth without development.
But perhaps even more
important, it was found that many other determinants of development
especially social factors, had not been given due recognition:
The more economists labored with the exotic
cultures of Asia, Africa, and Latin America,
the more impressed they became with both the
force and intricacy of social factors.
Ten
years after the end of World War 11 some leading
economists were ready to admit that the really
fundamental problems of economic development are
noneconomic.
°CCochran, 1964, p. Ill)
The recognition of the paramount importance of social factors
meant that the development problem could not be solved by economists
alone, and that the efforts of other scholars in other disciplines
were needed.
And as it turned out, there was no reluctance on the

---

44
part of other social scientists to come to the rescue with their own
prescriptions:
Anthropologists talked of the need to change
traditional attitudes and to induce a work ethic;
political scientists talked of the need for
political control; administrators talked of the
need for merit civil service systems; and
sociologists talked of the need for elites to
provide the necessary savings, role models, and
leadership.
(Bryant & White, 1982, p. 6)
The combined efforts of economists and other social scientists
increased the available knowledge on the development problem but by
and large, a large part of this knowledge tended to be of a negative
type in the sense that many scholars had an irresistible penchant
for stressing the negative factors or conditions that hindered
development in the poor countries, instead of putting more efforts in
\\
the identification of the positive indigenous elements that would
enhance development.
Obstacles to Development
In more specific terms, it was often argued that the poor
countries exhibited a set of overall negative conditions that were
obstacles to development and impervious to change.
Phrases such as
"low equilibrium" or "slow growth" economies, "missing factors,"
"vicious circle of poverty,1I "backward societies," "obstacles to
growth,1I inadequate institutionG,1I "poor resource endowment," IIdual
economies,1I "bad climateb, ' "soft states," IIpr ismatic societies,"
just to mention these few, were widely used to describe the poor

---

45
countries.
In retrospect, it seems as if earlier development
theorists were competing with each other as to who could come up with
the lengthiest list of obstacles to development in the poor countries.
Table 2 presents a list of obstacles that were being stressed in the
mid-sixties.
A good example of the search for obstacles to development can be
seen in Rogers (1969) who attempted to identify the common elements of
what he called the "subculture of Peasantry".
According to him,
Central elements in this subculture of peasantry
are:
(1) mutual distrust in interpersonal
relations; (2) perceived limited good; (3)
dependence on and hostility toward government
authority; (4) familism;
(5) lack of innovative-
ness; (6) fatalism;
(7) limited aspiration;
(8) lack of deferred gratification; (9) limited
view of the world; (10) low empathy.
(p. 25)
Since peasants make up the large majority of the population in
most poor countries, it goes without saying that the derogatory traits
identified by Rogers apply to most people in these countries.
Critique of the Search for
Obstacles to Development
The quest for obstacles to development has contributed little to
the solution of development problems because in general, long lists
of obstacles amount to little more than tautological statements about
why the poor must stay poor.
History has it that Napolean Bonaparte,
the famed French emperor and conqueror, used to say that a war c~iminal
is he who has lost his war.
To paraphrase this saying, for most of
those who only see obstacles to development in poor countries, these

---

Table 2
Alleged Obstacles to Development in the Third World
TYPES OF UNDERDEVELOPMENT
Limiting
Model
Characteristic
Elaboration
1.
SUB-SAHARA
AN INADEQUATE
- recent emergence from colonial rule
(for example,
CULTURE BASE
- insufficient trained personnel
Zaire)
- mismanagement of public funds
- unstable government
- unreliable law enforcement
- minimum public services
- restricted opportunities for large-scale commerce
and industry
- inadequate educational system
11.
LATIN AMERICA
A RIGID SOCIAL
- social position dependeng on land ownership,
(except Mexico
STRUCTURE
business, government employment, and' position
and Costa Rica)
in the armed forces
- large rural mass depend end on the produce of
small plots of land
- unskilled, semi-employed urban population
- government in the interest of the economically
unproductive elite
Ill.
SOUTH ASIA
POOR DISTRIBUTION OF
- large and dense population
(for example,
THE FACTORS OF
- shortage of arable land
India and
PRODUCTION
- limited savings
Pakistan)
- retarded industrial development
- limited effective employment
- risk-taking prohibitive
Source:
Galbraith, J. K.
An overview.
In D. P. Rogers, R. J. Clark, & J. J. Farrell (Eds.),
.p-
C'
Inside world politics.
Boston:, Allyn & Bacon, 1974, 234.
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---

47
countries are "development criminals" for not having won their
"development war".
It is the classic case of blaming the victim.
The Ambiguous Nature of
Obstacles to Development
By the mid-sixties, many of the alleged obstacles to development
were shown in many instances not to be obstacles_at all.
For example,
Japan which had a rather rigid social structure (resistant to change)
with relatively little known natural resources developed at a pace
that was the envy of even the rich countries.
Socialist countries
developed without the required institutions of a free market and the
profit motive.
By way of contrast, countries with huge natural
resources such as Zaire in Africa and many oil-rich nations failed
to develop as quickly as the earlier proponents of capital formation
would have predicted.
This state of affairs led scholars like Hirschmann (1972) to state
that those who were much concerned with obstacles to development had
overstated their case and that the identification of obstacles had
become a "quasi-vanishing act".
According to him, these alleged
obstacles are, for the most part, factors whose elimination is
unnecessary or postponable, or factors that can actually be turned
into assets:
(1) The obstacle does not ·constitute an absolute
barrier in the case of country Y; certain forward
moves are available to this country, and the
obstacle, while still exerting a negative
influence on development, can still be dealt with,
perhaps more easily, at a later time.

---

48
(2) The alleged obstacle, in view of another set
of circumstances, turns out not to be an obstacle
at all and therefore does not need to be removed,
either now or later.
(3) The alleged obstacle, in view of yet other
circumstances, turns into a positive advantage
and asset for development.
(pp. 55-56)
Another economist who has criticized the obstacle approach to
the explanation of development is Heilbroner (1968).
He writes:
Bad climates may have had adverse effects.
Yet,
many hot areas have shown a capacity for sustained
economic growth (for example, the Queensland areas
of Australia), while we have also come to
recognize that a number of underdeveloped areas,
such as Argentina and Korea, have completely
temperate climates.
So, too, we now regard the
lack of resources in many areas more as a symptom
of underdevelopment than a cause -- which is to
say that in many underdeveloped areas, resources
have not yet been looked for.
Libya, for
instance, which used to be written off as a
totally barren nation, has within the last few
years been discovered to be a huge reservoir of
oil.
Little is heard today about native childish-
ness or inherent inferiority.
(Perhaps we
remember how the wealthy classes similarly
characterized the poor in Europe not too many
centuries ago.)
Climate and geography and
cultural unpreparedness unquestionably constitute
obstacles to rapid economic growth -- and in some
areas of the globe, very serious obstacles -- but
there are few economists who would look to these
disadvantages as the main causes of economic
backwardness.
(p. 190; emphasis in original text)
Critigue of Dualism and the Myth
of Tradition Versus Modernity
Even the claim that "traditional society" and "dual society" -
which incorporates both traditional and modern features - are a
hindrance to the promotion of development has not been substantiated

---

49
by the facts.
As England and Japan show, traditional institutions,
indeed feudal institutions, can survive side by side with modern-day
institutions without per se impeding development.
The distinction
made between tradition and modernity has been criticized by Gusfield
(1967) as leading to what he calls "misplaced polarities" (pp. 51-62).
Brookfield (1975) is critical of dualism and modernization
because he feels that at the core of both lies a dichotomous thinking
which, in the final analysis, impedes advance in understanding the
problems at hand.
For him, the method of economic dualism appears
as one which sets up ideal types based on assumptions drawn from
observations of real world dualism - which is acceptable.
But
unfortunately, the analysis of the interrelationships between the two
sectors leads to oversimplifications and generalizations that are far
removed from the real world conditions.
The modernization thesis,
likewise, embodies a particular view of change based on the dualistic
view that tradition and modernity are opposed forces and the latter
grows at the expense of the former.
This approach stresses unilinear
change instead of the continuous interaction that takes place, and it
o~scures such important processes as opposition to change interaction
and symbiosis.
In sum, Brookfield contends that the dichotomous
thinking which underlies dualism and modernization is simplistic and
misleading.
Similar criticisms have been made by Geertz (1963) whose views
about the relationship between traditional and modern social
structures and socio-economic development can be summarized as

---

50
follows:
as far as development goes, there is no such things as an
intrisically "bad" traditional structure that will inevitably impede
development, or an inherently "good'·' modern structure that will
automatically bring about development.
Every particular social
structure has its unique features, its own strengths and limitations
and there are many roads to development and many development models.
There are no uniform relationships between traditional and modern
social structures and development.
Instead, there are different
sorts of traditionalism that can lead to contrasting sorts of
modernism through development.
This should not be construed to mean
that generalizations cannot be made.
Indeed, it is possible to
identify some common factors and constants of social and cultural
change associated with development; however, the process of
development can tak~ place in a variety of forms and the traditional
features of local settings in the developing world which are shunned
by development planners, need not be a hindrance to development.
The influence of these traditional features will depend on the model
and strategy of development selected.
•
Redefinition of Obstacles to Development
The criticism made about the obstacle approach to the explanation
of development or underdevelopment does not imply that there are no
real obstacles.
The problem with the traditional approach is that it
tends to be one-sided and partial because it over-emphasizes problems
in the poor countries and overlooks similar problems in the richer

---

51
countries.
For example, corruption, neopotism, red tape, patron-
client types of relationships in politics, the force of social
inertia, are often mentioned in reference to the Third World when
in fact, these are universal phenomena.
But real bottlenecks do exist in all countries that impede
certain types of progress.
Hirschman (1972) points out that very often,
the real obstacle is the inability of policy-makers themselves to
have a clear understanding of the opportunities available in any
country and take full advantage of them to promote development:
Finally, and most important, while our exercise
points to many ways in which obstacles can be
made into assets, it says nothing about the
ability to perceive these possibilities on the
part of the policy-makers in developing countries.
If this ability is strictly limited, as is often
the case, then this very limitation emerges as a
super-obstacle, which commands and conditions the
existence and seriousness of the more conventional
obstacles.
(p. 61; emphasis in original text)
Whether a country has good leadership and good policy-makers
is not a question that is limited to any particular type of countries;
it is relevant everywhere.
Streeten (1977) has enumerated a number
of problems that tend to be neglected or dismissed by development
analysts.
An illustrative list of these real problems includes the
following:
(1) the unwillingness of governments to firmly grasp some
sensitive issues such as land reform and taxation; (2) nepotism and
corruption; (3) oligopoly and monopoly
ver - power of large land-
owners, of big industrialists and multinational corporations; (4) the
power of organized urban labor unions; (5) the unequal structure of

---

52
power and wealth and the restricted access to public services;
(6)
weak entrepreneurship and defective management of public sector
enterprises, of the civil service and of the private but protected
firms;
(7) the lack of coordination between central planning and
executing ministries and between the different levels of the socio-
economic system;
(8) the weakness of the United Nations specialized
agencies charged with the promotion of development;
(9) the
violation of basic human rights and the staggering expenditures on
armaments.
Recapitulation
The point to emphasize is that,"in general, development scholars
do not agree on what causes development or underdevelopment.
A non-
exhaustive list of key factors that have been identified by different
development theorists would include factors that are economic;
technological; psychological; political; sociological; ecological;
educational; administrative; communication-related, and the list could
be lengthened at will.
A more detailed listing of some of these
factors is provided in Appendix B.
It may be safe to say that almost everything matters, when it
comes to promoting development.
The process of starting and sustaining
the development efforts of a country is affected by a myriad of
factors and the weight assigned to each factor depends, in part, on
the particular development theorist.
An economist will tend to stress
economic factors whereas an anthropologist might show more interest in

---

53
socio-cultural factors.
The need for an integrated approach that
could bridge the gap between competing development theories is one
of the many reasons that paved the way for the emergence of a managerial
perspective on development.
This point is further elaborated in
Appendix A.

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54
CHAPTER IH
REVIEW OF MANAGEMENT LITERATURE
Chapter III provides a summary review of some of the comparative
management literature relevant to the study of socio-economic
development.
The studies selected for inclusion in this review had
to be fairly recent, i.e., published within the last 15 years or so.
Furthermore, all studies had to relate partly or entirely to the
developing countries; this criterion excluded comparative studies of
management in the developed countries only.
The selected studies
were grouped according to their topical coverage and then reviewed in
chronological order.
Authors whose 'publications appeared during the
same year were listed in alphabetical order.
This chapter includes the following sections: , (1) The Changing
Assumption of Comparative Management; (2) Case Studies of Management
in Single Countries; (3) Cross-national Studies in Comparative
Management; (4) The Socio-cultural Determinants of Management;
(5) Social Development Management; (6) Recapitulation.
The Changing Assumption of
Comparative Management
Traditionally, comparative management studi€s
were largely based
on the assumption that "good" management practices were to be found
only in the industrialized countries, and that the poor countries

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55
needed to import these practices from their more fortunate counterparts.
The transfer of management know-how was viewed as a one-way flow from
the "management-rich" countries to the "management-poor" nations.
Though this view has not disappeared altogether, more and more recent
studies attempt to adopt a more balanced approach according to which,
countries of both groups can learn from each other.
Wallender (1978)
expresses this view:
The disparities between the function of management
in the developing countries (DCs) and in the
industrialized countries (ICs) suggest that
developing country managers may have much to teach
us about our own approach to management.
Interim
results from the study show that DC management
may be more capable of dealing with turbulent
environments and crisis situations than is U.S.
management.
(p. 23)
During the 1960's, the view that poor countries should import
managerial know-how from elsewhere was prevailing and the need was
often expressed by national governments and international agencies to
find ways of transferring managerial know-how from the industrialized
countries to the Third World countries.
To meet this need, many an
international forum was held with hopes of increasing knowledge on
the social and cultural factors that may enhance or impede management
transfer.
At a meeting of experts convened by the International Labour
Office (ILO) in November 1963, an attempt was made to draw a list
of the socio-cultural factors that affect management.
The experts
came up with a list - indicative rather than exhaustive - of the
following factors:
(1) Group and personal relations and loyalties;

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56
(2) Attitudes toward authority and responsibility;
(3) Educational
and intellectual traditions; (4) Status and prestige; (5) Concepts of
justice; (6) Attitudes toward work; (7) Attitudes toward property;
(8) Attitudes toward women; (9) Attitudes toward public authorities
(ILO, 1966, pp. 181-184).
A complete listing of the sub-factors included in each of these
nine categories is provided in Appendix C.
The ILO experts went on to identify these three areas for which
further research was needed; (1) Case studies of management in single
countries; (2) Management and managerial effectiveness in different
cultural settings; (3) Real influences of social and cultural
factors on management in specific cultures (ILO, 1966, pp. 184-185).
The review of literature undertaken in the pages to follow will
show, among other things, how current research in comparative
management has contributed to these three areas of needed research.
Findings of Case Studies of Management
in the Developing Countries
The studies reviewed in this section are divided into these two
groups:
(1) Case Studies of Effective Management; (2) Case Studies of
Ineffective Management.
Case Studies of Effective Management
in the Developing Countries
In - study of Indian managers in an engineering firm, Kakar (1971)
found that managers with a more democratic leadership style were more

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57
effective than authoritarian managers in terms of employee performance
and satisfaction.
Farris and Butterfield (1972) studied the distribution of
control in 16 development banks in Brazil, using Tannenbaum's control
graph model. *
They found that contrary to common assumptions about
Latin American organizations, these banks were not managed by
authoritarian executives and control in these organizations was evenly
distributed among hierarchical levels.
They also found that control
at each level was associated with bank effectiveness.
The authors
hypothesized that their findings could be explained by viewing
effective development banks as technocracies.
According to Flores (1972), American managerial techniques in
management control and planning can be used effectively in a
developing country such as the Phillippines.
In a study of the relationship between entrepreneurship and
development, Dresang (1973) reported that in Zambia, bureaucrats with
a sense of entrepreneurship tried to advance their career by
identifying themselves with successful development programs.
This in
turn, contributed to development.
After conducting an empirical study of the management practices
and effectiveness of American and Japanese subsidiaries, and local
firms in Taiwan, Negandhi (1973) concluded that advanced management
practices and know-how found in U.S. industries
'uld be usefully and
effectively transferred to industrial enterprises in Taiwan.
* See Tannenbaum, A. S. CEd.). Control in organizations. New
York:
McGraw-Hill, 1968.

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58
Jaggi (1977) assessed the managerial styles of 120 Indian
executives and found a significant positive relationship between job
satisfaction and a consultative-participatory managerial style.
To identify and describe variables which contributed to
managerial effectiveness in Nigeria, Imoisili (1978) studied the
management practices and effectiveness of 18 large business companies
operating in that country.
Two sets of effectiveness indicators were
used:
(1) economic indicators (return on capital, productivity of
assets, sales margin, net operating margin); and (2) non-economic
indicators (employee turnover, ability to retain management talent,
c~mpetitiveness of compensation schemes, employee satisfaction).
The
results of the study showed that the difference between effective and
less effective organizations could be explained by these factors:
perception of the Nigerian environment; planning; delegation of
authority and control; and span of control of managers.
Neubauer (1978) reported the effective use in Mexico of
managerial techniques such as job evaluation, performance appraisal
and wage determination.
Following an observation of several industrial and business
projects in China, Blake and Mouton (1979) argued that in that
country, individual productivity was emphasized over all other goals.
This primary goal was supported by several strategies such as the
maximization of personal contributions to the state and the tying of
the bonus compensation system and team leadership advancement to
productivity.

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59
W~rker participation in the decision-making process was found by
Szal (1979) to contribute to effectiveness in mobilizing local
resources and satisfying the community's needs.
Based on a study of administrative practices in Egypt, Badran
and Hinings (1981) took the position that by virtue of being late-
comers, firms in the Third World countries were in a better position
to adopt new managerial techniques than the older firms in the West.
Altunbay and Kizilian (1982) reported the promising implementation
of a management information system at the Marmara Scientific and
Industrial Research Institute in Turkey.
The system was designed to
provide for a continuous review of the activities of the Institute and
facilitate the collection of accurate and timely data to help
affiliated organizations.
Findings of Case Studies of Ineffective
Management in the Developing Countries
A study of the Nigerian military by Luckham (1971) revealed
that there was a conflict between institutional practices transferred
from the West and the local socio-cultural factors.
This conflict
tended to reduce bureaucratic efficiency.
Why does planning fail in Nepal?
This question was asked by
Wildavsky (1972).
He suggested that the failure of planning in this
country was attributable to insufficient information, few and poor
project proposals, inability to program foreign aid, adversary
relationships with the Ministry of Finance, and limited administrative

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60
capacity.
The author argued that planning by itself cannot solve the
problems inherent in the basic political and administrative factors.
In Mexico, welfare bureaucracies were found by Poitras (1973)
to deviate from the goals for which they were created.
Bureaucratic efficiency in Nigeria was found to be hampered by
conflict between public bureaucracies and the political establishment
(Balogun, 1976).
Managerial effectiveness in this country was
limited because of low .levels of education, corruption, and political
enta~glement (Iboko, 1976).
AI-Araji (1977) reported that in Irak, development administration
and plapning failed because objectives lacked consistency and
comprehensiveness, and there was no adequate coordination of
activities.
In Kenya, the activities of a personal department within an
organization extended far beyond the bqundaries of the organization
and well into the larger social environment (Henley, 1977).
Development administration in Guyana, according to .Hope (1977),
was made difficult by a lack of high-level manpower for policy
implementation, a highly bureaucratic public service and excessive
centralization of authority and control, a lack of coordination of
policies between departments, a lack of dissemination of information
for effective decision-making, low levels of economic developm~nt,
and scarce financial resources.

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61
The bureaucratic system in Colombia was characterized by
subjective decision-making, high concentration of power in a limited
number of people, low level of development, and high socio-political
instability (Lombard, 1978).
A study of the Department of Food of India by Sinha (1979)
revealed that as it grew larger, this department became a rigid
bureaucracy insensitive to the needs of its constituencies.
Public
participation in decision-making became very limited and central
decisions were no longer dictated by the mission of the department,
but by other considerations such as status-consciousness.
In the Philippines, the central government's legislative and
executive branches were assigned the task of formulating policies
for municipal reform, thus showing a lack of local autonomy and a
lack of delegation of authority (Villanueva, 1979).
In a case study of India's organizational structure, Raragopal
(1980) argued that this structure tended to exacerbate conflict
between regulatory and development departments.
Other recent case studies of management in different countries
include Getter (1975), Goodall (1975), Reginbotham (1975), Rowell
et al. (1975), Mahar and Rezende (1975), Coward (1976), Crosby (1976),
Runt and Truitt (1976), Blair (1978), Boseman and Phatak (1978),
Adebayo (1979), Cheema (1979), Adeniyi (1980), Choguill (1980),
De Beer and Van de Ven (1980), Farid (1980), Rirschman (1980),
Kingshott (1980), Lungu (1980), Scott (1980), Yavas and Rountree
(1980), and Zabra (1980).

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62
Cross-National Studies in Comparative Management
In this section, studies comparing management in two or more
countries are reviewed.
These studies are grouped into these
categories:
(1) Differences Between Developed and Developing
Countries; (2) Similarities Between Developed and Developing Countries;
(3) Comparisons Among Developing Countries Only.
Managerial Differences Between Developed
and Developing Countries
Helmich and Papageorge (1976) conducted a cross-cultural study
of leadership styles in the United States, Japan,
India, r~xico and
Greece.
They found that leaders in the more industrialized countries
tended to be more task-oriented, while those in the less industrialized
countries were more employee-oriented.
Timsit (1976) argued that foreign managerial models were likely
to create more problems than they solved in the Third World countries.
They must, therefore, be avoided in these countries.
In a comparative study of role-tensions in Western and Chinese
factories in Singapore, Deyo (1978) found that Western factories were
more democratic and decentralized, whereas Chinese factories were
centralized, autocratic, and task-oriented.
A study of the personal value systems of over 2,556 managers
in Australia, Japan, Kore~, India and the United States led the
author (England, 1_',J) to suggest that there were large individual
differences in personal values withi.n each group of managers.
The

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63
author also found that these value systems were relatively stable and
related to the way a manager behaved on the job, and to a manager's
career success.
To test the hypothesis that differences in executive behavior
were linked to a wide dispersion of national patterns of reward for
executives, Granick (1978) conducted an empirical analysis of the
reward structure for executives of large industrial enterprises in
three capitalist countries (England, France, and the United States),
five socialist countries (German Democratic Republic, Soviet Union,
Slovenia, Hungary and Romania), and one developing country (Algeria).
The author found that there were great differences among these
countries' rewards systems and that the pattern of the dominant type
of reward was neither a function of the country's socio~economic
system, nor of its level of deyelopment.
Granick made this interesting
observation:
Britain"France and the United States constitute
a sample of striking contrast.
They are countries
with reasonably similar cultures, methods of
organizing the economy, and levels of technology.
Yet each falls into a different grouping of
managerial reward patterns ....
(p. 46)
A 10-year study of over 100,000 managers in the United States,
11 West European countries, India, Japan and several Latin American
countries was reported by Bass et al.
(1979).
The study showed the
following:
(1) U.S. managers had the highest tolerance for risk-
taking; (2) German and Austrian managers had the lowest preference
for authoritarian work incentives; (3) Japanese managers were least

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64
concerned with conformity to rules while their Indian counterparts
were the most concerned; (4) managers with high rates of advancement
(ROA) valued leadership, expertise and prestige more highly than
those with low ROA; (5) however low ROA managers placed higher value
on self-realiz~tion, affection, security aud imagination than did
high ROA managers; (6) high ROA managers were task-oriented and
pragmatic, often opposed to group decision-making and less dependent
on higher authority.
Rosenberg and Rosenstein (1981) compared workers' participation
in two D.S. plants to workers' participation in directing councils
in Yugoslavia.
The U.S. system was considered by the authors to be
discretionary and consultative while the Yugoslav system was
mandatory.
The study led to the suggestion that participative
programs in the U.S. enjoyed greater workers' involvement in
managemen t.
Managerial Similarities Between
Developed and Developing Countries
Goodsell (1976) compared the postal systems of the United States
and Costa Rica and concluded that their bureaucracies were strikingly
similar and tended to erode the differences between the two systems.
Wright (1976-77) compared the responses of American and Chilean
firms to the changing environmental conditions in Chile during the
four years preceding the marxist regime of Salvador Allende.
IIe found
that both American and Chilean managers perceived similar country

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65
environmental factors as being critical and thei~ perception changed
with time.
American firms were not more innovative than their
Chilean counterparts.
Prasad (1981) compared the beliefs of Brazilian managers to those
of expatriate managers in Brazil and found that Brazilian managers
did not manifest significant differences with their West European
and North American counterparts on his measures of information sharing
and objectives.
However, Brazilian managers had a lower belief in
the capacity of their subordinates for leadership and initiative.
North American expatriate managers expressed the most democratic
attitude.
Stephens (1981) attempted to measure the relative influence of
national environments on a number of variables believed to affect the
leadership styles of managers.
He administered a questionnaire to
managers in six textile plants in the U.S. and Peru (three plants in
each country).
The plants were similar in number of employees, level
of technology and independence of management.
The following
leadership traits were studied: perception of employee initiative;
willingness to share information and objectives with subordinates;
attitude toward participative management; perception of locus of
control.
The author found no significant differences between Peruvian
and American leadership s~yles.
His expectation of finding a more
participative democratic style in the U.S. as opposed to an
authoritarian, external control-oriented style in Peru, was not
fully supported by the data.

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66
Comparison of Management Among
Developing Countries Only
Montgomery (1972) studied the extent to which the delegation of
authority increased the effectiveness of land reform policies in
several countries, using four measures of effectiveness:
(1) improved
tenure security, (2) increase in peasants' income, (3) increase in
peasants' political power, and (4) adequate bureaucratic power.
He found that delegation of authority increased effectiveness and
that land reform was less effective in countries with centralized
authority.
A research program at Cornell University of Asian countries
(Esman, 1978) found that the grouping of small farmers into membership
organizations increased the effectiveness of assistance programs
because effective organization allowed farmers to have more influence
and provide mutual assistance.
However, organizing them effectively
was a difficult task to initiate and maintain.
According to Muwanga-Barlow (1978), the development of the
administrative sciences in Anglophone African countries requires
confident and secure leadership, a definite and firm socio-economic
philosophy, a clear sense of direction, a set of objectives, a
continuous period of stability, an efficient machinery for
implementation as well as trust, confidence and cooperation between
political leaders and top bureaucrats.
A comparison of the managerial problems and practices in India
and Nigeria by Nambudiri and Saiyadain (1978) showed the following:

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67
in both countries, the practice of long-range planning was still in
its infancy.
Both societies faced the unsolved conflict between
traditional values and the requirements of a modern industrial
society.
Both countries needed more and better trained managers,
higher productivity and a more effective accommodation with trade
unions.
Unlike India, Nigeria had a national wage policy for public
servants which was also used as a guide by the private sector.
However, Indian managers had demonstrated more competence in
acquiring technology, managing large organizations, shaping a large
and viable public sector, and in competing with multinational
corporations.
Gable and Springer (1979) made a comparative empirical analysis
of public efforts to improve rice production in Indonesia, Korea, the
Philippines and Thailand, by conducting a cross-national survey of
1,815 public officials working in agencies responsible for
implementing national policies.
The survey was supplemented by case
studies and data on rice production in each country.
The authors
inferred from the study that there were many strategies to achieve
development and that the choice of a particular strategy required an
understanding of the administrative system within a country.
Ting -(1980) investigated the extent to which modern management
technology contributed to the effective performance of firms in newly
industrializing countries.
The study sample consisted of six firms in
Singapore and Taiwan.
The author used two measures of performance
(net profit margin and operating profit margin) and management

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68
technology was assessed with three measures (management positional
level, qualification level, and management intensity level).
The
author found that technology factors, especially management
development intensity, were strongly associated with operational
performance.
It was not possible, however, to establish a cause and
effect relationship.
In a study of 12 firms in India and Tanzania (six in each
country), Kanawaty et al. (1981) found that new forms of work
organization used in the industrialized world, could be effectively
adopted in the Third World countries.
Using two macro-analytical units (management-system facets,
and development-process concomitants), Khan (1982) conducted a study
of public management as a key factor of the development programmes
of the seven East Carribean Common Market countries (Antigua,
Dominica, Grenada, Montserrat, St. Kitts-Nevis, St. Lucia, and
St. Vincent).
The author suggested that management was influenced by
the colonial experience of these countries, their growth patterns,
and the experience of public services in managing development plans
and projects.
Other studies of cross-national management include, among
others, Barrett and Bass (1970), Kasfir (1972), Hesseling (1973),
Hanson (1974), Ronen and Kraut (1977), De la Torre and Toyne (1978),
Inzerilli (1978), Raksasataya (1978), Schaffer (1978), Crino and
White (1980), Thompson (1980).

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69
The Socio-Cultural Determinants of Management
The studies reviewed under this heading are divided into two
groups:
(1) General Aspects; (2) Specific Effects of Socio-Cultural
Factors on Management.
General Aspects of Socio-Cultural Factors
in Comparative Management
Ajiferuke and Boddewyn (1970b) conducted a correlational study of
managerial attitudes in 14 countries on three continents; their
analysis correlated eight socio-cultural, political and economic
indicators with the attitudes and motivation of managers.
They found
that managerial attitudes were significantly affected by cultural
and economic factors.
Of these factors, the most important ones
were:
level of education, life expectancy, and percentage of Roman
Catholics.
The authors cautioned that
it is both difficult and dangerous to label
factors as economic, political, social or cultural
since most of them have multiple dimensions.
(p. 458)
According to Boguinard (1971), the task to be performed was the
most influential factor, not the environment per se.
Perhaps the most comprehensive work in comparative management in
terms of identifying the elements of the environment that affect
management was a study by Richman and Copen (1972).
This study itself
was the continuation of earlier works by Richman and others.
The
authors proposed a typology of the environmental factors divided into
two broad spheres:
the national environment, and the international

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70
environment.
A complete listing of these factors is given in
Appendix D.
The findings of their study led the authors to conclude
that American managerial practices and techniques could be effectively
implemented in developing countries, although some of them should be
modified.
The authors suggested that the major factors inhibiting the
success of these managerial practices in the developing countries were
a lack of knowledge of the local environment, and a lack of a vehicle
to transfer managerial techniques.
Kizilbach (1974) made the point that the cultural norms, the
economic and trade practices, and the patterns of human relations
found in a society were important environmental factors that must be
taken into account in training managers.
An organizational questionnaire based on Likert's eight
organizational variables * was administered by Bennett (1977) on two
samples of Filipino and Hong Kong Chinese bilingual managers.
He
found that equivalent questions generated different responses,
depending on the language in which the questions were asked.
The
author theorized that the different answers related to different
reference groups.
*Likert's organizational variables are: (1) leadership process;
(2) motivational forces; (3) communication process; (4) interaction-
influence process; (5) decision-naking process; (6) goal setting or
ordering; (7) control processes; (8) performance goals and training.
See Likert, R.
The human organization.
New York:
McGraw-Hill,
1967, 197-211.

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71
Pizam and Reichel (1977) compared two groups of Israeli managers:
(1) those who migrated to Israel from Europe and America and were
considered as Westerners, and (2) those who came from Africa and Asia,
called Orientals.
They found that in comparison to managers of
Western ancestry, managers of Eastern descent were (1) less inclined
toward centralized decision-making; (2) more likely to have their
peers' counsel in evaluating their subordinates; (3) more prone to
believe in a long time employment commitment to one company; (4) more
paternalistic in dealing with their subordinates; (5) less respectful
of formal authority; (6) less inclined toward team work.
The two
groups were similar in attitudes toward rules and procedures,
seniority and nepotism.
In a study of the relative roles of culture and industrialization
in shaping the value systems of managers in five countries (Australia,
India, Japan, Korea and the United States), ~fuitely and England (1977)
found that both culture and industrialization accounted for the
similarities and differences found in the value systems of managers.
The authors insisted that both played an important role.
Wallender (1978) reported an exploratory study launched in 1977
to identify the factors that affected technology acquisition and
management development in various developing countries.
Five countries
were chosen:
Brazil, Peru, Korea, Tanzania and Kenya.
Eight to
sixteen cases were written for F _~h country, focusing on such things
as how local firms were organized, planned their activities, and
,,

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72
utilized technology.
A total of 67 cases were completed.
Partial
results of the study pointed to a number of critical factors which
influenced organizations.
These factors were:
limited understanding
of the value of technology; internal organizational practices;
attitudes of managers; availability of manpower; lack of information;
local economic and technological infrastructure; local technology
options.
The author suggested that the managerial functions of
organizing and controlling preceded the functions of planning and
leading, contrary to traditional conceptualization of the management
process.
To investigate the role played by face in the managerial
practices of Chinese managers, Redding and Ng (1982) surveyed 102
managers in Hong Kong, using questionnaires and content analysis of
narrated face incidents.
Their survey provided strong support to
the view that face plays an important role in organizational behavior.
Specific Effects of Socio-Cultural
Factors on Management
The cultural environment in the developing countries does not
permit either mechanistic or organic organizations to work effectively.
This conclusion was reached by Milne (1970) who argued that in these
countries, Western managerial practices could not work because the
natives had a high degree of ritualism, familism and formalism.
Adamolekun (1976) contended that attempts to correct administra-
tive deficiencies in Africa have generally been undertaken on an
ad hoc basis and that three conditions must be met to create

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73
development-oriented bureaucracies in Africa:
a strong and purposeful
leadership; a clear conception of public service internalized by all
public officers; and a permanent machinery for administrative reform.
The environment of organizations in Latin America is character-
ized by a lack of local autonomy and a lack of delegation of
authority.
Such was the conclusion of Tapia-Videla (1976), who used
the notion of the "corporate-technocratic" state to study comparative
public administration in Latin America.
Anglophone African countries have in general followed the
elitist system of British administration, but there is one major
difference.
Unlike British administration which has a convention of
civil service neutrality, administration in Africa is politicized
(Subramanian, 1977).
Local governments in Jamaica are ineffective because they
operate in a socio-cultural environment which exhibit these short-
comings:
a tradition ofnon-participative decision-making; excessive
centralization; authoritarian/submissive attitudes reflected in a
dependency syndrome (Mills, 1979).
Stahl (1979) has called for far-reaching changes in the socio-
cultural environment of Third World countries to increase managerial
effectiveness.
Factors that influence the development of modern management
practices in Saudi Arabia include:
Islamic religious beliefs; male-
dominated business enterprises; strong family ties; traditional

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74
attachment to pride and self-respect; and a shortage of skilled
managers (Anastos, et al., 1980).
According to Glenn and James (1980), elements of the socio-
political environment that make it difficult to apply conventional
techniques in countries of the Third World include:
the governments'
policies of placing an ever increasing number of people on the payroll;
the scarcity of machinery, materials, energy and money; and the
strict regulation of business life.
Organizational development in Latin America is inhibited by an
environment which contains more negative than positive elements
(Bourgeois & Boltvinik, 1981).
Other studies of the socio-cultural environment include
Ajiferuke and Boddewyn (1970a), Sirota and Greenwood (1971), Negandhi
and Prasad (1972), Kellyand Reeser (1973), Negandhi and Reimann
(1973), Pezeshkpur (1978), Almaney (1981), Kelley and Worthley (1981),
Wigglesworth (1981), and Wright (1981).
Social Development ~~nagement
The late 1970's saw the emergence of a small but important
school of thought in the field of international management:
the
school of social development management.
This emergence has been
described by de Vogeler (1982) in these words:

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75
In 1977 members of a working group from four
management schools* in developing countries
identified, on the basis of their respective
experiences in teaching management, a kind of
organization whose manager needs conceptual
frameworks and managerial skills that are
different from the ones that are commonly taught
to private and public enterprise managers, or
even to managers or public organizations that
handle, for example, tax collection, public
security and water supply.
The working group
called the third kind of organization social
development organizations and their managers
social development managers.
(p. 1; emphasis in
original text)
The ideas espoused by the proponents of social'development
management have been most forcefully expressed by Korten in a series
of writings.
According to him, the purposes of social development
management are:
(1) to. strengthen the effectiveness of development
programs intended to build the capacity of the poor to solve their
own problems and improve their livelihoods; (2) to build through
active involvement and learning a body of management knowledge and
methods that are of practical relevance to development programs;
(3) to approach development from the perspective of responsible
people working through organizations to mobilize resources in pursuit
of development objectives (Korten, 1980a, p. 8).
A representative sample of the social development management
literature is reviewed below.
*The four management schools are the Asian Institute of
Management in Manila, Philippines, the Indian Institute of }~nagement
at Ahmedabad, India, the InstitutoCentroamericano de Administracion
de Empresas in Managua, Nicaragua, and the Instituto de Estudios
,
Superiores de Administracion in Caracas, Venezuela (de Vogeler,
1982, p. 3).

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76
Ickis (1978, 1982) advanded the thesis that development
programs designed to improve the lives of the rural poor in Central
America, have failed because of the failure to adapt the rigid
structure of public agencies to the demands and requirements of
integral rural development strategies.
Development strategies,
he argued, were doomed to failure from the time of their inception
because they were formulated without an implementation structure.
In a paper presented at the 25th Anniversary World Conference
of the Society for International Development, Korten (1982) offered
a summary of his observations and studies of the effectiveness of
development programs in the developing countries.
His summary is
shown in Table 3.
Thomas (1982) identified five constraints that hinder the
achievement of effective people-centered development programs:
(1) the fear of local leaders of the empowerment of citizen groups;
(2) the lack of a political will in national government leadership;
(3) the need for certainty among planners and managers of government
agencies; (4) the incapacity of schools, universities and training
institutes to teach social learning and collaborative planning; and
(5) the extreme diversity that exists in culturally mixed
organizational systems around the world.
Accordinp, to him,
bureaucratic performance must be reoriented to help achieve social
d.·~~lopment objectives.
Such a reorientation requires the following:
(1) planners and other professionals who can share their expertise
with non-experts and can listen effectively to their clients'

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Table 3
Factors Contributing to Success in the Management of Development Programs
(Learning Process Versus Blueprint Programming Models)
Successful Development Programs
Typical Development Programs
(Learning Process)
(Blueprints)
Initiated
In Village
In Capital
Begin With
Action
Plan
Program Design
Evolving-Collaborative
Static-Experts
Technology
Indigenous-Scientific
Scientific
Primary Resource Base
Local People and Resources
Central Funds and Technicians
Error
Embraced
Buried
Supporting Organization
Built Bottom-Up
Existing or Built Top Down
Growth
Gradual-Organic
Rapid-Mechanistic
Staff Development
Continuous-Action Based
Preservice-Formal Classroom
Organized T,y
Teams
Technical Specialty
Evaluation
Self-Continuous-Process
External-Intermittent-Impact
Leadership
Strong-Sustained-Individual
Limited-Changing-Positional
Social Analysis
For Problem Definition
To JustifyPlan
Primary Management Units
Systems and Institutions
Projects
Source:
Korten, D. C.
Social development management.
Paper presented at the 25th Anniversary
World Conference of the Society for International Development, Baltimore, ~laryland,
July 18-22, 1982, 10.
.....
.....

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78
definitions of needs and facts; (2) non-bureaucratic control
mechanisms characterized by equal, two-way communication channels;
(3) incentive mechanisms which reward bureaucrats for being
responsive to clients; (4) evaluation criteria for organizational
performance responsive to and shared by clients.
The author
summarized his views on the reorientation of bureaucracies as
follows:
Reorientated norms for bureaucracies suggests
reciprocal rather than hierarchical controls;
flexible, temporary (perhaps amoebic-like)
structures rather than fixed pyramids; special-
izations tempered by extensive intra-
organizational and inter-organizational
communication, especially with client groups;
flexibility and discretion in the application of
rules and procedures determined by task group
negotiation and sub-organizational contract
devices; and, equity as a primary evaluation
criteria [sic] followed by efficiency measures.
(Thomas, 1982, p. 12)
Paul (1983) reported the findings of an international study of
the managerial and institutional interventions associated with six
successful development programs in different developing countries.
Each program was analyzed within a framework of strategic management
in terms of (1) strategic interventions; (2) structural interventions;
and (3) process interventions.
The study showed that each of these
interventions, and the interaction effects among them, contributed
to effective performance if there was congruence among them.
Lack of
congruence reduced performance.
The author suggested that the three
major factors singled out by many development observers as being

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79
critical to the success of development programs - political
commitment, resources, and leadership - were important but not
sufficient to insure success.
Recapitulation
Summary of Case Studies of
Management in Single Countries
There are both cases of effective and ineffective management in
the developing countries.
Effectiveness and ineffectiveness are
both accounted for by a wide array of factors.
Current research
does not make it possible to identify factors or managerial
practices that are universally associated with effectiveness.
It
may well be that such universal factors do not exist, and this is
precisely the fundamental proposition of situational management
theory.
Summary of Cross-National Studies
in Comparative Management
The studies reviewed showed similarities and differences
between the developed and developing countries on the one hand, and
on the other hand, among the developing countries themselves.
Some
writers-have suggested that managerial differences between countries
are attributable to cultural differences whereas similarities can be
explained by degree of industrialization (Negandhi, 1975).
However,
as Ajiferuke and BoddeWYn (1970) point out, it is not always possible
to distinguish cultural factors from economic factors.
As to the

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80
applicability of Western management practices in the developing
countries, those practices that are technical in nature are the
easiest to apply whereas those that involve important factors in the
local environment require some modification (Kiggundu, et al., 1983).
Summary of Studies of the Socio-Cultural
Determinants of Management
The comments made by Ajiferuke and Boddewyn, and by Kiggundu
et al., are also relevant to studies in comparative management that
have sought to either simply identify socio-cultural factors that
affect management, or to investigate some specific effects of these
factors.
The negative aspects of the local environment that inhibit
managerial effectiveness in the Third World are fairly well documented.
But there are relatively few studies that show a positive association
between socio-cultural factors in the developing countries and
effectiveness.
It may be safe to say that those who report cases of
effective management in these countries do not attribute
effectiveness to the core, first-order, elements of the socio-cultural
milieu such as the prevailing religion or traditional family
structure.
It is rather attributed to second-order elements such as
level of technology, national political ideology, availability of
resources, and existence of competent managers.
Summary of the Social Development
Management Literature
Two common threads run through the social development management
literature:
(1) development programs must put people first and empower

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81
the poor to solve their own problems; (2) the management of develop-
ment is made more effective by the adoption of a democratic-
participatory style, Le., a "human-relations" approach to management
that allows the manager to get actively involved and learn while
managing.
Relevance of the Comparative Management
Literature to the Study of Development
In Chapter I, comparative management studies were criticized for
being:
(1) limited by weak conceptualization; (2) lacking in
knowledge integration; and (3) micro-analytical in the sense of
focusing on individuals and organizations and less on whole countries.
The review of the literature provided in this chapter warrants this
criticism.
In spite of these shortcomings, comparative management studies
are relevant to the study of development.
This relevance is rather
indirect for a large body of the comparative management literature
because in many instances, there is no explicit and outright
reference to development.
But although many studies do not explicitly
mention the socio-economic development of a country as their main
concern, there is always an underlying assumption that the effective
management of organizations has a positive impact on the welfare of
a country.
Thus, these studies address the question of development
indirectly.
The literature of social development management, for its part,
addresses the development debate in a very direct and explicit way.

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82
It is, thus, the body of literature that comes closest to the spirit
of this study.
There are, however, two key differences between this study and
the perspective of social development management.
First of all, the
theorists of social development management advocate a heavy reliance
on a human-relations approach to management as the single best way
to achieve effectiveness.
This study, in contrast, is based on
situational management theory according to which, different approaches
to management can be equally effective in the "right" situation.
Secondly, the main focus of study of the social development
management writers is on development projects and what these writers
consider to be some specialized organizations which are structurally
and functionally different from the complex organizations traditionally
studied by organizational theorists.
This study does not focus on
organizations or development projects; its units of study are whole
countries.
There are also two major areas of agreement between this study
and the writings of the social development management theorists.
The first area of agreement is the recognition of the need for a
comprehensive theory.
As de Vogeler (1982) puts it:
There is a need for a theoretical base on the
nature of social development to underpin the
generation of knowledge and technologies to
manage social development programs.
Such a theory
would be more comprehensive than a focus on the
poor and their needs; it would include an under-
standing of the political, economic and social
structures and dynamics that lead to the regenera-
tion of poverty.
(p. 35)

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83
The second area of agreement between this study and social
development manap,ement is the call for a macromanagerial approach to
development at the level of whole countries.
Thomas (1982) writes:
A part of the research and experimentation agenda
must reach the macro-level of organizational
analysis and practices.
It is not enough to deal
only with the linkages at the bureaucracy-
community nexus.
The implications for national
level and international organizations are yet to
be examined in substantive detail.
(p. 14;
•
emphasis added)
To contribute to the development .of a macromanagerial theory of
development is precisely the central concern of this study.

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84
CHAPTER IV
STUDY DESIGN AND METHODOLOGY
The rules of objective inquiry require a researcher to specify
the procedures used to investigate a particular subject, so as to
allow other researchers to eventually replicate the original study
and confirm or infirm its findings.
To meet this criterion of
replicability, the steps followed in conducting this study are fully
described in this chapter.
To begin with, some practical problems
that led to the choice of the particular design and methodology used
in the study are briefly reviewed.
As pointed out in Chapter I, this study is exploratory.
Therefore, its design reflects its exploratory nature.
The main
reason for choosing such a design has to do with the relative novelty
of the subject matter of the study.
As compared to other topics of
the social sciences, the management of macrosocial systems is in its
infancy and well established methods for investigating it are hard
to come by.
The Methodological Problem in Macromanagement
Although there is a substantial number of works that have
attempted to address the problem of devising adequate methods for
the study of large social systems from a cross-national

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85
standpoint,* suitable instruments for the study of these systems
from a macromanagerial perspective are yet to be developed.
In the field of comparative management, the existing tools of
investigation are primarily designed to study individual managers
and organizations and are, at best, very imperfect research
instruments for approaching the macromanagerial and developmental
problems of large social systems as conceptualized in this study.
That great caution must be exercised in extending the findings of
research conducted at the levels of individuals and organizations
to larger social systems, is well documented in the social sciences
literature.
For example, Salvatore and Dowling (1977) have
pointed out that what is good for individual business firms within
a country may actually be detrimental to the economy of this country
as a whole.
These two writers state that,
in a less developed country it is frequently
possible to have a conflict between micro- and
macro-efficiency in an investment project.
In
industry, for example, a firm may find that a
capital-intensive means of production will
minimize its costs even though capital is the
relatively scarce resource in the economy and
labor is abundant.
This is particularly true
when interference with the market mechanism
makes wages artifically high and the price of
capital artificially low.
In such cases, what
is good for the firm (micro-efficiency) is not
good for the economy as a whole (macro-
efficiency).
*See for example Rokkan (1968), Halt and Turner (1970),
Przeworski and Teune (1970), Armer and Grimshaw (1973), Elder (1976),
Smelser (1976), Treiman (1976), Szalai (1977), Berting et al.
(1979),
and Niessen and Peschar (1982).

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86
Similar problems exist in agriculture.
Much of
the new technology is designed for large-scale,
mechanized farming, where machines predominate
from plowing to harvesting.
Using the new
technology as it exists, and thereby achieving
micro-efficiency, will exaggerate society's
unemployment problem and lead to macro-inefficiency
in the economy.
(pp. 132-133)
To make generalizations about the larger social system from
research done at the micro-social level rests on a fundamental
assumption that is highly open to dispute:
the assumption that a
social system is a mathematical sum or product of its component
parts.
But as Sutherland (1978) points out,
societal systems cannot be understood merely as
some product of their parts.
That is, in moving
from the individual to the organization, from
the organization to the institution and from the
i~stitution to the societal system, something new
is added at each stage.
Any higher-order system
is, as a rule, something more than the sum of
its parts.
And unless we are able to capture
this 'something more' that is added, we cannot
adequately comprehend societal phenomena or
rationally manage them.
(p. XIV)
The distinction between micro and macro levels of study
reflects more than a concern for methodological rigor.
It has very
practical implications for the management of large social systems.
It may be safe to state that the biggest problem confronting the
leaders of the Third World countries, perhaps of all countries, is
not so much the management of organizations within the larger
social system,* although this problem does exist.
The biggest
*In this study, the terms country, nation, large social system,
and societal system are used interchangeably.

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87
challenge, it seems, is to manage the total society itself in order
to achieve overall results that are more than the sum of the partial
results obtained by all single organizations within society.
And
this is precisely one of the areas in which the contributions of
social scientists have been notably meagre.
According to Sutherland, social scientists have paid scant
attention to large societal systems because:
(1) the components of
these systems are not always empirically accessible, (2) their
critical properties cannot always be measured precisely, and (3) they
cannot be taken apart and analyzed in a laboratory environment
(pp. XII-XIII).
With regard to the management of large social systems,
Sutherland notes that social scientists must contend with the
added difficulty of identifying and defining the "managers" of these
systems:
One cannot talk about societal management in the
same terms that we might speak of the management
of some institution or organization.
In the
first place, we really don't know who--or what--
should be responsible for societal management.
It is not government, for government can only
control institutions, and less directly the
array of formal organizations it can identify.
A societal system is more than any calculable
function of the institutions and organizations
within its boundaries.
It is also deceptive to
speak about the people determining their societal

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88
destiny; this, as historians will quickly po~nt
out, is at best a vapid assertion.
(p. 208)
In sum, the management of large social systems has not been
adequately investigated by social scientists and as a result, there
is a paucity of tried and tested methodological instruments to be
used for research and theory on the topic.
The Adequacy of an Exploratory Study Design
In light of these problems, an exploratory study design is
called for because, as Hartman and Hedblom (1979) point out:
An exploratory study ... examines new areas of
inquiry, including new or previously unintegrated
social phenomena as well as techniques of data
collection or measurement.
The desig~ should be
employed in areas in which theory is lacking or
disputed (mixed results), or when concepts,
variables, measurement instruments, and techniques
are poorly defined.
(p. 80)
The conditions specif~ed in the preceding quotation apply to
the subject matter of this study.
The authors from whom the
quotation was excerpted sum up the reasons for employing an
exploratory design in these words:
In short, the exploratory design is typically
undertaken when the problems are heretofore
unstructured or poorly defined.
Such a design
assumes that concepts and relationships between
*For the purpose of this study, the managers of a social system
are simply the major decision-makers within the system, those who
have and exercise power.
For the countries included in the study
sample, the most visible major decision-makers are national governments;
therefore, these governments will be considered to be managers of
their countries, even though they are not the sole managers.

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89
variables have not been established or tied to
existing theory.
Its strengths lie in the fact
that the design is free to follow the sense of
the problem rather than being constricted by a
rigid design.
It should break ground and explore
tools and techniques to be used in later, more
extensive projects.
(p. 81)
The flexibility of the exploratory design does not mean that the
researcher is free to follow the vagaries of his imagination.
As
Lastrucci (1967) cautions,
A good exploratory study should not ..• be designed
as a short of catch-all of research problems.
The principles of parsimony should always be kept
in mind.
It is much more fruitful to limit the
initial exploration to the major problems of
research.
(p. 106)
Without proper constraints; an exploratory study of the type
undertaken here runs the risk of limiting its usefulness because of
two different but related problems.
On one hand, in order to
reach a satisfactory level of generalization of its substantive
contents, the study may over-abstract reality and omit some key
variables. 'On the other hand, an attempt to stay close to the
empirical facts and include a large number of variables may result
in overloading and increased complexity, which runs counter to one
of the basic aims of research: bringing clarity and simplification
•
to obscure and complex issues.
A Heuristic Approach to Exploratory Research
To cope with the twin problems of the great complexity of the
subject matter of the study and the very real possibility of
overloading it with too many variables, the design of this

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90
exploratory work largely follows what Sutherland (1978) calls a
"heuristic process" and which he defines as being:
A search process where the final destination is
unspecified, but where the individual or agency
has two sources of discipline:
(a) a set of a
priori constraints which serve to artificially
bound the search space (or to determine a first,
tentative step); and (b) a set of criteria for
distinguishing a favorable from an unfavorable
(a promising from a sterile) trajectory.
A
trial-and-error process lacks both the above.
In short, a heuristic process is employed when
we know only vaguely where we want to go and
are not sure how to get there.
In a more
extended form, a heuristic process is employed
when we know that we want to get somewhere else,
but we don't know where that might be till we
actually strike it.
In operational terms, then,
a heuristic process is the procedure recommended
for operations in an extremely complex, protean
and rapidly changing environment.
(pp. 309-310)
The heuristic approach to research is well suited to the
purposes of this exploratory study.
To rephrase the study problem in
heuristic terms, it can be said that a major goal of the study is to .
build a managerial framework for the study of development.
It is
further posited that the overall dependent variable is development
while management is the determinant.
However, it is not known
beforehand how the final framework will look like.
Nor is it'known
what the relationships between managerial variables and development
variables will be, both in terms of nature--positive or negative--and
degree--strong or weak.
In other words, it is vaguely known where
the study should lead to, but the actual destination is uncertain.
The a priori constraints that limit the study space and the criteria
for distinguishing a favorable from an unfavorable route are the
•

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91
specific procedures used to conduct the study.
These are described
below.
Having examined the practical problems that led to the choice
of an exploratory type of study design, the specific procedures
employed to conduct this study can now be described.
Two procedures
are used.
The first one which is the main methodological component
of the study, is a set of steps followed in developing the framework
proposed in the study.
The second procedure is secondary and involves
some limited analysis of data as a way of testing empirically some of
the relationships between some key variables depicted in the
framework.
This empirical testing is provided for illustrative
purposes only.
Procedure for Developing the Framework:
The Inventory Method
Description of the Inventory Method
To build the framework proposed in this study, an inventory
approach to model building is used.
As the name implies, this
method usually involves the selection and inventory of research
findings about a particular phenomenon according to a specified
number of selection criteria, followed by the integration of the
disparate findings into a meaningful whole with or without
modifications. _ Examples of social scientists who ~sed this method
include, among others, Berelson and Steiner (1964), and Price
(1968).

---

1
92
Perhaps, the best way of describing the inventory method of
model building is to describe a specific instance of its use.
The
above cited Price (1968) provides a good example.
In order to
develop a comprehensive model of organizational effectiveness, Price
analyzed 50 studies that he selected from the literature according
to these four criteria:
(1) each study contains information about
organizational effectiveness; (2) each study is reported at fairly
great length; (3) each study is based on primary sources; (4) each
study describes an administrative organization (Price, 1968, pp. 6-8).
The author defines an administrative organization as "an organization
composed primarily of full-time members.
This criterion excluded
studies of voluntary associations" (p. 8).
Using a single frame of
reference to reduce the conceptual confusion inherent in the
multiplicy of the studies analyzed, Price derived from these studies
the core variables that determine organizational effectiveness.
These core variables were divided into a number of categories and
integrated into a comprehensive model of organizational effectiveness.
Price's model is shown in Figure 1.
In its broad lines, the method followed to develop the framework
proposed in this study is similar to that used by Price.
But there
is a difference.
In developing his model, Price was able to use
the findings of studies of organizational effectiveness.
That is,
the focus of the studies that he analyzed was on organizations.
However, as stated earlier, there are not many studies of the
managerial determinants of socio-economic development that primarily

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93
THE ECONOMIC SYSTnt
1. DIVISION OF LABOR
f--i
2. SPECIALIZED DEPARTMENTALIZATION
3. MECHANIZATION
~l
4. CONTINUOUS ASSDmLY
I
I
I
'1'1
I
I
I
I
I
I
THE POLITICAL SYSTni (INTERNAL)
1. LEGITIMACY
2. RATIONAL-LEGAL
r-l
3. CENTRALIZATION (TACTICAL)
i!'--H
4. CENTRALIZATION (STRATEGIC)
'1'1
I-!J
THE POLITICAL SYSTnt (EXTERNAL)
1. AUTONOMY
FUNCTIONS AND DYSFUNCTIONS
2-5. IDEOLOGY (CONGR~CE,
PRIORITY, AND CONFORMITY)
6. CO-OPTATION
INTERVENING VARIABLES
7. MAJOR ELITE CO-OPTATION
1. PRODUCTIVITY
8. REPRESENTATION
2. CONFORl1ITY
9-10. MAJOR ELITE REPRESENTATION
~-=1
AND CONSTITUENCY
3. HORALE
EFFECTIVENESS I
4. ADAPTIVENESS
'j'
I
5. INSTITUTIONALIZATION
I
1
THE CONTROL SYSTnt
1. SANCTIONS
2. SECONDARY NORM ENFORCER-
NORM CONFORMER RELATIONSHIP
----- - RELATIONSHIPS DISCUSSED
3. GRADED SANCTIONS
4. COLLECTIVE SANCTIONS
---- - RELATIONSHIPS NOT DISCUSSED
5. COMMUNICATION
6-7. VERTICAL AND HORIZONTAL
COMMUNICATION
8-10. INSTRUMENTAL, PERSONAL,
AND FORMAL COMMUNICATION
. 1
I
.1",
POPULATION AND ECOLOGY
1. SIZE
2. SPATIAL MOBILITY
3. SPATIAL MOBILITY ORIENTED
TO EFFECTIVENESS
Source:
Price, J. L.
Organizational effectiveness:
An inventory of propositions.
Homewood, IL:
Richard D. Irwin, 1968, 205.
Figure 1.
Price's model of organizational effectiveness.

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94
focus on large societa1 systems.
Therefore, the findings of current
and past research in comparative management cannot be integrated into
a unified framework without some modification.
In fact, the
inventory of findings only served to help identify broad classes of
variables that are important for theory bUilding.
Selection and Analysis of Studies
The comparative management studies reviewed in Chapter III as
well as some other studies* were ana1yzed with this question in mind:
What are the managerial or management-related variables that have
been found by researchers to have a significant relationship with
socio-economic development, directly or indirectly?
An inventory of
the findings of these studies revealed that important variables
could approximately be divided into three major categories:
(1) Environmenta1/situationa1 variables.
These are variables
related to the physical and socio-cu1tura1 environment where management
*In addition to the studies reviewed in Chapter Ill, the
following works were ana1yzed:
Barish and Verhu1st (1965), Basu
(1965), B1air (1978), BoddeWYn (1970), Budhiraja (1965), .Burke (1969),
Caiden and Wi1davsky (1974), Chambers (1974), Chapel (1977), Chowdhry
(1966), Co1eman, et al. (1977), Co1es (1975), Coward, Jr. (1976),
Crino and White (1980), Dehoeck and Kinsey (1980), Dwivedi and Nef
(1982), E1-Namaki (1979), Gant (1979), Ghise11i, et al.
(1969),
Gooda11 (1975), Goodman and Love (1979), Gou1d (1979), Grind1e (1980),
Gross (1980), Hart (1970), Hunter (1970), Hyman (1967), Ing1e (1979),
Inzeri11i (1978), Jed1icka (1977), Kent (1981), Kirkgreen (1979),
Knight (1980), Ku1p (1970), La11 (1976), Lee (1968), Linjenberg and
Crosby (1981), Marston (1978), McC1e11and and Win·.- (1969), Mentzer
and Sam1i (1981), Morgan (1979), Negandhi and Prasad (1968), OECD
(1967), Onyeme1ukwe (1973), Prasad (1966), Putti (1979), Richman and
Farmer (1964), Riggs (1970), Rondine11i (1982), Rothwe11 (1972), Roxas
(1976), Seidman (1979), Siffin (1972), Stringfie1d (1965), Thurber and
Graham (1973), Vanek and Bayard (1975), Vozikis and Mescon (1981),
Webber (1969a, 1969b), Weidner (1970).

---

I
95
takes place.
(2) Management policies and practices variables.
These
variables include the commonly accepted tasks of management such as
planning, organizing, coordinating and leading, as well as such
things as management philosophy, management technology, and know-how.
(3) Effectiveness variables.
These variables show the extent to
which management is effective in achieving common goals; they are
outcome variables.
Frame of Reference
To integrate all the variables into a unified framework, the
management process chart developed by MacKenzie (1969) was used as
a guiding frame of reference.
This chart shows in schematic form
the basic elements, functions, and activities that are part of the
management process.
The three basic elements with which management
deals, and their three related managerial tasks are identified in
the chart as follows:
At the center are people, ideas, and things,
for these are the basic components of every
organization with which the manager must work.
Ideas create the need for conceptual thinking;
things, for administration; people, for
leadership.
(MacKenzie, 1969, pp. 80-87)
MacKenzie also identified three general or continuous managerial
functions--problem analysis, decision making, and communication--and
five sequential functions:
planning, organizing, staffing,
directing, and controlling.
Each function entails the carrying out
of a number of specific activities.
For example, the function of

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96
planning involves forecasting, setting objectives, developing
strategies, programming, budgeting, setting procedures, and
developing policies.
Although the primary focus of MacKenzie's chart is on organiza-
tions, most of its elements are general or abstract enough to be
applicable to larger macrosocial systems such as whole countries.
The chart provided this study with a convenient scheme for building
two key components of the proposed framework:
the environmental
component, and the component of management structure, contents and
processes.
These two components correspond respectively to the first
and second major categories of variables mentioned above:
environmental/situational variables; and management policies and
practices variables.
All the components of the proposed framework
are fully described in Chapter V.
Procedure for Empirically Testing Parts
of the Proposed Framework
It will be recalled that the main purpose of this study is to
develop a managerial framework for the study of development.
It was
pointed out in Chapter I that the study is more concerned with
conceptualization than data treatment.
However, to be useful and
workable, the proposed framework must lend itself to empirical
testing.
Therefore, an illustrative testing of some of the
relationships b r Teen some of the variables included in the framework
is provided in this study.
The purpose is to show how the elements
of the framework can be subjected to empirical testing.
Given the

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97
exploratory nature of the study, a simple correlational study is an
adequate way for achieving this purpose.
The specific steps followed
in carrying out this correlational study are outlined below.
Selection and ~feasurement of Variables
Thirteen variables derived from three major concepts of the
proposed framework--managerials goals, efficiency and effectiveness
were included in the correlational study.
Goal Variables
To begin with, five variables were selected to show the relative
level of priority attached by the managers of a country to a number
of alternative goals which they seek to achieve.
These variables
were operationally defined as the percentages of central government
expenditures allocated in each country to the following areas:
1.
Education
2.
Health
3.
Social security, housing and welfare
4.
Economic services
5.
National defense
Efficiency Variables
Next, six variables were used to tap the dimensions of the concept
of efficiency as applied to the management of a whole country
seeking to achieve its development goals.
These variables are listed
and operationally defined as follows:

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98
6.
Administrative efficiency:
percentage of central government
expenditures allocated to general administrative services.
This percentage is inversely proportional to degree of
efficiency.
The actual data used for the purpose of
determining administrative efficiency were data for general
public services.
7.
Labor efficiency (or productivity) in agriculture:
ratio of
percentage of labor force in agriculture to percentage share
of agriculture in the Gross Domestic Product (GDP).*
8.
Labor efficiency in industry:
ratio of percentage of labor
force in industry to percentage share of industry in GDP.
9.
Labor efficiency in services:
ratio of percentage of labor
force in services to percentage share of services in GDP.
10.
Educational efficiency:
ratio of percentage of government
expenditures allocated to education to national literacy
rate.
11.
Efficien~ of capital:
ratio of increase in gross investment
to increase in GDP (same as the incremental capital/output
ratio or ICOR).
The Incremental Capital Output Ratio (ICOR) is a standard
measure used by economists, usually for the purpose of estimating the
*There is a difference between GNP and GDP. According to Kurian
(1982), "GDP equals GNP plus income earned in the country but-sent
abroad, minus income earned abroad but sent into the country.
Thus
GDP tends to exceed GNP in debtor countries and the reverse is true in
creditor countries" (p. XVI).
A definition of GNP is provided in
Chapter 11.

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99
amount of investment needed in an economy or an enterprise to produce
an extra unit of output.
The measure used in this study is crude
because it uses unweighted data.
These six constructs capture a great number of the dimensions of
managerial efficiency at the level of a whole country.
Whether they
tap all its dimensions is irrelevant because the purpuse is not to
establish definitive causal connections but only to assess the degree
of association between variables.
Outcomes/Effectiveness Variables
To complete the list of variables included in the illustrative
analysis of data, two measures of the effectiveness of countries in
achieving development were chosen.
These measures are:
12.
The Physical Quality of Life Index (PQLI).
This measure
was developed by the Overseas Development Council (ODC).
It
combines three indicators of development--life expectancy
at age one, infant mortality rate, and literacy rate--with
equal weights to yield a single score ranging from 0 to 100
for each country.
The three indicators were chosen by ODC
on the valid assumption that they mirror the overall socio-
economic conditions that prevail in a country.
13.
Per capita GNP. - This is one of the traditional yardsticks
used by economists to measure the economic performance of a
country.
It is computed by dividing the GNP of a country by
its population.

---

100
The PQLI and per capita r-NP are complementary measures for
assessing the development performance of a country.
Per capita GNP
gives an idea about how wealthy a country is, whereas the PQLI shows
how successful a country is in meeting basic human needs in health
and education.
A country may score relatively high on one of these
measures and relatively low on the other.
For example, Tanzania
would rank as one of the least developed countries in terms of per
capita GNP ($250).
Yet it has one of tne best PQLI scores (50).
By
way of contrast, Gabon has the highest per capita GNP in the study
sample ($3,280), but also one of the lowest PQLI scores (21).
Although this is not a causal study, one of its assumptions is
that there is a positive link between management and development, and
that development is the dependent variable.
The logical implication
of this assumption is that a country's development performance as
measured by both its PQLI and per capita GNP, is partially determined
by the 11 goal and efficiency variables mentioned above.
Study Sample
Three major considerations guided the drawing of the sample of
countries included in the study.
First, it was initially deemed
necessary to have the largest sample possible since a main goal of
the study is to contribute to a unified and general managerial theory
of development, i.e., a theory that would be relevant to th~ ~reatest
number of countries.
Thus, the initial sample of the study comprised
all countries for which data could be found.
As it turned out, all

---

101
the countries of the world met the criterion of data availability.
But two other considerations led to a drastic reduction of the sample
size.
First of all, there was a need to reduce variance as much as
possible.
By limiting the sample to a group of countries located
in the same geo-physical and geo-political area, variance could be
reduced and homogeneity increased.
Secondly, as the study progressed, it appeared preferable to
this writer to limit this part of the study to countries he knew
best.
And although the writer has had many opportunities to engage
in direct observation of development problems in several countries
on three continents (Africa, Europe, and America), he is most familiar
with the countries of Africa, south of the Sahara Desert.
These considerations led to the retention of a pool of some 40
countries from which a few more countries were deleted and a final
sample of 37 countries was retained.
The reasons for deleting some
countries from the sample are exposed in Appendix E while the
countries included in the study sample are listed in alphabetical
order in Appendix F.
To be sure, limiting the sample to Sub-Saharan Africa does not
provide a perfectly homogeneous sample.
There is no doubt that
African countries exhibit a great deal of differences in size, wealth,
resource endowment, population, ethnic composition, just to mention
these few.
However, the sample would be even more heteregeneous, had
it included African countries together with, say, American or Asian

---

102
countries.
At any rate, it can be strongly argued that when it comes
to being managed for achieving development, African countries show
far more similarities than differences.
Moreover, these countries
form a coherent bloc within the overall geo-political configuration
of the world.
Data Sources
The data for the measures included in the correlational study
came, for the most part, from a report on African development
prepared by the staff of the World Bank and originally published in
1981 (see World Bank, 1981).
The World Bank itself gets its data
from specialized national and international agencies engaged in
cross-national data collection.
Data for national literacy rates
and the PQLI were obtained, respectively, from Ruth L. Sivard (1982),
and Kurian (1982).
Reliability of the Data
A few words must be said about the reliability of the data.
It
,
is widely recognized that the gathering of data in and about Third
World countries is a very imperfect endeavor.
There is evidence
that figures usually vary with the data gatherer.
Table 4 shows how
different sources of data collection differ in their estimates of
the rates of growth of the Gross Domestic Product for six African
countries.
As the table shows, for Y~li, the highest estimate (IBRD
figure) is 13 times the lowest (UN figure) (World Bank, 1981, p. 187).

---

Table 4
Estimates of the Average Annual Rate of Growth of Real GDP,
1960-70 for Six African Countries According to Seven Data Sources
Country planning
Country
SOEC
SIEC
UN
OECD
IBRD
UNCTAD
ministry
Chad
2.1
2.2
1.2
1.5
1.4
0.5
5.5
Mali
3.0
2.5
0.5
2.8
6.6
5.2
Mauritania
7.4
8.0
7.7
7.3
6.5
6.9
Niger
2.4
2.0
4.7
2.0
0.9
2.4
Senegal
1.6
1.6
1.3
2.0
2.1
1.0
Upper Volta
3.9
3.3
3.0
2.0
1.5
0.7
SOEC: Secteur des Etudes Socio-Economiques de Synthese (Bureau des Programmes, Direction de l'Aide au
Developpement, Ministere de la Cooperation, Paris).
SIEC: Secteur d'Inforrnation Economique et Conjuncture (Bureau des Programmes,Directionde l'Aide au
Developpement, Ministere de la Coop~ration, Paris).
UN: United Nations.
OECD: Oreanization for
Economic Cooperation and Development (Development Assistance Committee).
IBRD: International Bank for Reconstruction and Development (The World Bank).
UNCTAD: United Nations Conference on Trade and Development.
Source:
The World Bank.
Accelerated development in sub-Saharan Africa.
Washington, DC:
The Bank,
1"11,187.
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104
The problem of data unreliability does not constitute a forbidding
obstacle to the conduct of this exploratory study because the analysis
of data is only proposed for illustrative purposes and no attempt is
made to draw definitive causal inferences from it.
This is not to
imply that reliable data are not needed.
Studies aimed at empirically
proving or disproving specific causal relationships between management
and development will have to adequately solve the problem of data
reliability, or they will lead to nowhere.
To get the measures for the 13 variables included in the
correlational study, data were collected for a total of 19 indicators
for each country.
These indicators are listed in Appendix G.
Statistical Procedures
To analyze the data, the SPSS* statistical package was used.
The actual analysis consisted of a multiple regression analysis.
This procedure makes it possible to assess the amount of variance
in the two outcome variables--PQLI and per capita GNP--explained by
all of the 11 goal and efficiency variables.
Multiple regression
analysis also makes it possible to assess the separate contribution
of each of the 11 goal and efficiency variables in explaining the
variance in the two outcome variables.
Thus, this procedure provides
a convenient way for assessing the degree of association, i.e., of
correlation between:
(1) goal variables and outcome variables;
(2) efficiency variables and outcome variables.
*SPSS, short for Statistical Package for the Social Sciences, is
a widely used computer language designed to provide a wide array of
statistical analyses in social science research and computing.

---

105
According to Kerlinger and Pedhazur (1973), and Kim and Kohout
(1975), the use of multiple regression analysis is subject to the
following assumptions:
the relationships among the variables are
linear; the variables are additive; the measurement of the variables
is done on an interval scale; the error terms are normally distributed,
uncorrelated, and have a constant variance or homoscedasticity; the
independent variables are uncorrelated.
These assumptions were
posited in the study, not demonstrated.
The results of the analysis
of data are presented in Chapter V.

---

106
CHAPTER V
STUDY RESULTS AND DISCUSSION
The results of the study are presented in this chapter.
The
presentation begins with a detailed description of the elements of
the proposed framework and proceeds with a discussion of the posited
relationships between the key elements of the proposed framework.
This chapter also includes a comparison of the framework to current
models in comparative management, a presentation of the results of
the illustrative analysis of data, and a general discussion of the
study.
The general discussion is organized around 11 major
propositional statements.
Elements of the Proposed Framework
Figure 2 depicts the framework developed in this study.
The
framework contains three major components:
(1) the background
environment of management; (2) management structure, contents, and
processes; and (3) management outcomes.
These components are
described below.
The Background Environment of Management
The background environment of mar.agement is the initial spatio-
temporal, physical and social milieu where management takes place.
An inventory of the environmental factors mentioned by various

---

PHASE I
PHASE 11
PHASE III
A
BACKGROUND ENVIRONMENT
MANAGEMENT STRUCTURE
MANAGEMENT OUTCOMES
OF MANAGEMENT
CONTENTS & PROCESSES
CONCEPTUAL
PHASES' OF
Core elements
~nagement style
Intermediate Outcomes
MANAGEHENT
and philosophy
1. People
1. Efficiency
2. Ideas
1. Theory X
2. Goal congruence
3. Things
2. Theory Y
3. Managerial adeauacv
'-~
~ 3. Theorv Z
~
J,
Derived elements
J,
Ultimate outcome
~nagement structure
1. Societal problems
1. Effectiveness
2. Societal will
1. Power distribution
J,
3. Societal goals
2. Goal structure
Managed Environment
3. Reward svstem
J,
1. People
~anagement tasks
2. Ideas
roles and functions
3. Things
4. Solved problems
1. Leadership
5. Unsolved/new problems
2. Conceptual thinking
6. Unmet/new goals
30 Administration
4. Problem analysis
5. Decision-making
6. Communication
7. Resource allocation
B
CORRESPONDING
fi
LESS DEVELOPED
STRATEGY OF
HORE DEVELOPED
PHASES OF
U
SOCIAL SYSTEM
DEVELOPMENT
SOCIAL SYSTEM
SOCIO-ECONOMIC
DEVELOPMENT
------~) Relationship of direct determination
~
Relationship of indirect determination
....
Figure 2.
A macromanagerial framework for the study of development.
o
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---

108
comparative management writers shows that these factors are generally
grouped under such categories as sociological, political, legal,
economic, educational factors, and so forth.
Appendices C and D give
two examples of factor classification.
Current categorizations of the environment factors that affect
management suffer from two weaknesses.
First, they suffer from the
difficulty inherent in any attempt to differentiate between different
categories of factors.
As Ajiferuke and Boddewyn (1970a) rightly
point out, it is not always possible to establish a clear distinction
between cultural and economic factors.
Take, for example, the
question of how the people in country X make a living; should it be
considered an economic question or a socio-cultural question?
lfust
existing categorizations of environmental factors do not address
this kind of question in a satisfactory manner.
Another weakness of existing classifications of environmental
factors in management is the tendency to compile lists of factors
of excessive length.
While long lists of environmental factors may
give a sense of inclusiveness, they may also run counter to one of
the basic principles of science:
the principle of parsimony.
Theory
building requires, among other things, the search for the most
parsimonious solutions to complex problems.
Unlike most writings that have attempted to categorize
environmental factors, this study does not use such headings as
political, economic, cultural factors.
Instead, the key factors of
the environment of management are defined as being the basic elements

---

109
upon which management acts.
As pointed out in Chapter IV, these
basic elements have been identified by tfucKenzie (1969) as People,
Ideas, and Things.
These three items are shown in Figure 2 as the
constituent core elements of the background environment of management.
Three derived elements--societal problems, societal will, and
societal goals--complete the list of the environmental elements.
People
This element refers primarily to the socio-demographic
dimensions of a society.
It encompasses various characteristics of
the population such as age, sex, ethnic composition, number, active
labor force, etc.
Ideas
These are the ideas and ideals that orient and permeate the life
of a society.
Examples of ideas include religious beliefs,
philosophical thouehts, ideologies, scientific knowledge.
Things
This element represents the tangible, physical objects found in
the environment of a society; they can be natural elements such as
land, air, and water, or man-made objects such as houses, paved
roads, and machines.
Societal Problems, Societal Goals,
and Societal Will
These are derived elements that arise from the interaction among
and between the three basic core elements of the environment of society.

---

I
110
As defined in this study, the. environment of a large social
system like a country is not external to the system.
A country is
equal to its environment if our frame of reference is the national
environment, and a subset of the environment if we refer to the
international environment.
In real life, the environmental elements
to be managed by societal managers come under a composite form, that
is, they combine two or more of the three basic elements.
Societal
problems and goals are composite elements.
Two other examples of
composite elements are education and technology.
Education is
essentially an idea embodied in people, while technology, usually
but not always, comes under the form of knowledge (idea) with a
concrete expression in a tool (thing).
Societal will refers to
the collective will of society to solve its problems and achieve
its goals.
(See Chapter I for a definition of goals and a
presentation of the two types of problems faced by a society.)
Management Structure, Contents and Processes
This phrase refers to the overall management policies and
practices most commonly found in a social system.
The structure,
contents, and processes of management constitute the second major
component of the framework depicted in Figure 2.
They include three
sub-components:
management philosophy and style, management
structure, and management tasks, roles, and functions.

---

I
111
~~nagement Philosophy and Style
It is generally agreed that the act of managing within a society
cannot be divorced from the philosophical beliefs held by people in
general, and by managers in particular, about human nature, the good
life, and the good society.
McGregor (1960) has proposed two sets
of philosophical assumptions made by managers about human nature,
and which he labeled respectively Theory X and Theory Y.
Theory X
managers assume that human nature is innately "bad".
The people
whom they lead are seen as being inherently lazy, motivated by lower-
order needs such as physiological and safety needs, lacking self-
discipline and ambition, and avoiding responsibility.
Therefore,
they must be forced to work, and tightly controlled and directed.
Theory Y managers, on the other hand, assume that human nature
is intrinsically "good" and work is perceived as a natural activity
by workers who actively seek responsibility, and are motivated by
higher-order needs such as autonomy and self-actualization.*
Reddin (1970) added a third theory about human nature which he
called Theory Z.
This theory is more consistent with situational
management theory and it postulates that human nature is neither
good nor bad.
Instead, people are complex beings and they can be
bad and good, depending on the situation.
Theory Z offers a
"rational situationist view of man" (Reddin, 1970, p. 190).
*McGregor's ideas are based, in part, on ~faslow's hierarchy of
needs.

---

112
Reddin (1970) writes:
Taking a position one way or the other [Theory X
vs. Theory Y] on this kind of issue is good for
an argument.
Since neither position is to any
extent provable, the argument is based on what
each side would like to believe.
A much more
useful approach for a manager would be Theory Z.
It carefully avoids the ideological traps of
either X or Y.
It sees man as a situationist
and as one open to both "good and evil" (p. 189)
Although these theories were developed to apply primarily to
individuaf managers and organizations, they are general enough to
be applicable to management at the level of a whole country and are,
therefore, included in the framework proposed in this study.
A
comparison of Theories X, Y, and Z is provided in Table 5.
The philosophical views of management within a society will
determine, to a large extent, the dominant style of management found
in that society.
By style is simply meant the overall manner in
which managers, as a group, choose to exercise the tasks of leading
people and managing resources to achieve societal goals.
The
dominant style of management within a society can range anywhere
from the most anarchic form of laissez-faire to the most ruthless
regime of authoritarianism.
Management Structure
This is the infrastructural setting of management, that is, the
formal institutional arrangements of mana"~ment.
Three essential
components of the structure of management are:
(1) the distribution
of power both within management, and between management and the

---

Table 5
Comparison of Three Sets of Philosophical Views About Human Nature that Affect Management
Theory X
Theory Y
Theory Z
1.
Man is a beast
1.
Man is a self-actualizing
1.
Man has a will
being
2.
Evil is man's inherent
2.
Good is man's inherent
2.
He is open to good and evil
nature
nature
3.
Biology drives man
3.
Humanism drives man
3.
Situation drives man
4.
Force motivates man
4.
Voluntary cooperation
4.
Reason motivates him
motivates man
5.
Competition is man's basic
5.
Cooperation is man's basic
5.
Independence is man's basic
mode of interaction
mode of interaction
mode of interaction
6.
Individual is man's social
6.
Group is man's social unit
6.
Interaction is man's social
unit of importance
of importance
unit of importance
7.
Pessimistic best describes
7.
Optimistic best describes
7.
Objective best describes man's
man's view of man
man's view of man
view of man
Theorists:
Hobbes;
Theorists:
McGregor; Likert;
Theorists:
Locke; Fromm; Sullivan;
Machiavelli; Freud; Taylor;
Argyris; Maslow; Herzberg
Kelly; Drucker
Weber
Source:
Adapted from Reddin, W. J.
~lanagerial effectiveness.
New York:
McGraw-Hill, 1970, 189-190.
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---

114
larger social system; (2) the structure of goals, i.e., the number
and hierarchy of the societal goals which management seeks to achieve;
and (3) a reward system designed to induce both managers and non-
managers to work toward the achievement of societal goals.
Management Tasks, Roles and Functions
Tasks, roles, and functions are what managers do to help
achieve societal goals.
With regard to the achievement of development,
many past and present development theorists have, at one time or
another, stressed the essentiality of some managerial functions in
the development process.
For example, the following managerial
functions have been singled out as key activities that must be
performed to help achieve development:
(1) Planning:
Haq (1963),
Waterston (1965), Lewis (1966), Kulp (1970); (2) Entrepreneurship:
Schumpeter (1934), Hoselitz (1952), Hartman (1959), Walinsky (1962),
Katzin (1964), Hart (1970), Killy (1971), Dresang (1973); (3) Decision-
making:
Hirschmann (1958), Simon (1959); (4) Implementation:
Caiden
and Wildavsky (1974), Heginbotham (1975), Ryavec (1975), Ingle (1979),
Pressman and Wildavsky (1979); (5) Motivation:
lkClelland (1969);
(6) Communication:
Rao (1966), Rogers (1976), Hedebro (1982); (7)
Budgeting:
Caiden and Wildavsky (1974).
The managerial function most often mentioned in the development
literature is by far Administration.
In fact, there is a whole
separate body of literature devoted to the topic of Development
Administration and Comparative Administration.
Examples of scholars
who have contributed to this specialized field include, among others:

---

115
Burke (1969), Kasfir (1972), Bendor (1976), Sigelman (1976),
Springer (1977), Esman (1978), Heady (1978, 1979), Cheems (1979),
Dwivedi and Nef (1982), Rondinelli (1982).
There is no general agreement on the nature of the relationship
between management and administration:
The terms "management" and "administration" are
often used interchangeably.
Historically,
however, distinctions have been made.
Individuals
from a business orientation tend to refer to
management as a higher-level activity within the
organization and administration is described as
a lower-level function of the managerial process.
Conversely, individuals from a public administra-
tion perspective tend to use the term "administra-
tion" to describe the managerial process at a
higher-level within the organization and manage-
ment as a lower-level function.
(Kaluzny, et al.,
1982, p. 8n)
The position taken in this study is that administration is a
function of management.
This is in agreement with Richman and
Copen's definition of management as "administration plus entrepreneur-
ship" (Richman & Copen, 1972, p. 21), and MacKenzie's categorization
of managerial tasks as being leadership, conceptual thinking, and
administration.
A synthesis of managerial tasks and functions has been attempted
by MacKenzie (1969) who identified three major tasks of management
(leadership, conceptual thinking, and administration); three all
important managerial functions (problem analysis, decision making,
and communication); and five sequential functions (planning,
organizing, staffing, directing, and controlling).
The three major

---

116
tasks, as well as the three major functions are included in this study
framework.
Another major task--resource a110cation--was added.
Management Outcomes
The third main component of the framework is management outcomes.
At the level of a whole society, the outcomes of management can be
divided into two major categories:
intermediate, and ultimate
outcomes.
The extent to which management increases its own efficiency is an
intermediate outcome.
Two other important intermediate outcomes are
goal congruence, and managerial adequacy.
Goal congruence is the
degree of concordance between the operative goals actively pursued
by management and the recognized goals of society.
Managerial
adequacy means two related things.
First, it denotes the degree to
which the various elements of management within society form a
coherent whole.
Secondly, adequacy refers to the suitability of the
existing managerial system in terms of actually contributing to the
achie~ement of societa1 goals.
The ultimate outcome of management is effectiveness, i.e., the
achievement of societa1 goals.
From the standpoint of achieving
socio-economic development, management is effective only to the extent
that it brings about a new society whose environment contains elements
that are "more developed" than those that w'ere present in the initial
background environment of management.

---

•
117
Posited Relationships Between
the Elements of the Framework
As shown in Figure 2, the three key components of the proposed
framework correspond to three conceptual phases of the management
process.
These phases are presented in two levels.
Level A
describes the process from a managerial perspective whereas Level B
shows the same process from the standpoint of development theory.
Needless to say, these levels are purely conceptual and cannot be
separated in real life.
The relationships between the elements
included in the framework are described below.
Phase I
From a managerial standpoint, Phase I represents the background
or initial environment of management.
In terms of socio-economic
development, this initial environment constitutes an underdeveloped
or less developed social system.
Out of the interactions between the
core elements of the social system arise a great number of existential
and essential problems that reflect the needs and values of a society.
Development is one of these problems.
If a society as a whole clearly perceives its problems and
recognizes the need to solve them, the solution to each societal
problem becomes a societal goal to be achieved.
The achievement of
socio-economic development is one of the most important goals of
modern day ~~cieties.
For a societal problem to become a societal goal, there must be
a will to solve this particular problem on the part of society.

---

118
When applied to the problem of development, the ~rill to solve societal
problems becomes the "will to develop". * The "'Till to develop is a
powerful intervening element between the problem of development and
the goal of development on one hand, and on the other hand, between
the goal of development and the choice and implementation of a
strategy of development.
This will can either arise directly from
the grassroots within a society, or be induced by the leaders--the
managers--of a society and then transmitted downwards to the larger
masses.
In sum, the environment of a society largely determines the
nature and number of problems faced by this society, and hence, the
managerial problems of society.
Phase II
Once a society has decided to solve its problems and achieve its
collective goals, including the goal of development, it must evolve
a strategy that corresponds to Phase II of the framework proposed in
this study.
A strategy chosen and implemented for the purpose of
achieving development is, by necessity, a managerial strategy because
the essential tasks to be accomplished are invariably to lead people,
and marshal and mobilize resources to achieve the common goal of
development.
These tasks constitute the essence of management, as
defined in Chapter I.
*This phrase was borrowed from Montgomery and Marglin (1965).

---

119
To the extent that the chosen strategy is a response to problems
arising from the interactions between the core elements of the
environment, it can be said that management is determined by its
background environment.
Consequently, all the constituent elements
of the structure, contents, and processes of management (as shown in
Phase II of the framework) are largely and initially determined by
the environment whence they evolved.
Phase III
Phase III in the framework describes the outcomes of management,
i.e., the results brought about by the strategy chosen by society to
achieve its collective goals.
The framework shows that the structure,
contents, and processes of management, directly, determine the
outcomes of management.
No direct relationship is shown between the
background environment of management and the outcomes of management.
This lack of a direct relationship is explained by the fact that
management acts as an intervening variable between its environment and
its outcomes.
This point will be further discussed later in this
chapter.
A close look at the framework also reveals that the ultimate
outcome of management comprises a new environment made up of basic
elements similar to those found in the background environment of
management.
This 'is to say that, at the level of a large social
system such as a whole country, the environment is the social system
itself.
To manage the environment of a whole country is to manage

---

120
the country.
The managed environment becomes a new background
environment from which evolves a new set of management structure,
contents, and processes, and the process depicted in the framework
starts all over again.
Comparison of the Proposed Framework with
Other Models in Comparative Management
At this point, it may be useful to compare the framework
proposed in this study to current models in comparative management.
For this purpose, three of the major models were selected.
These
models are described below.
Richman-Farmer Model
Richman and Farmer (1965), two leading pioneers in model
building in comparative management, developed a model designed to
identify both the environmental determinants of management, and
the critical elements of the management process.
They identified
four major categories of environmental factors (educational, socio-
logical, legal-political, and economic), and six elements of the
management process (planning, organizing, staffing, directing,
controlling, and policy making in operating areas).
An updated
version of the classification of the environmental determinants of
management as shown in the Richman-Farmer ~IDdel was provided by
Richman and Copen (1972) and is shown in Appendix D.
The model
itself is depicted in Figure 3.

---

Affect
I
1
Elements of the
tlanagement Process
External
Management
Constraints
Planning
and
Organizing
Hanagerial
Educational
Affect
Staffing
Affect
...
, Effectiveness
Sociological
Directing
Legal-political
Controlling
Economic
Policy making in
operating areas
J
ne
Fir
effici
J
ne
System
efficiency
Source:
Richman, B. M., & Farmer, R.
Comparative management and economic progress.
Homewood, IL:
Richard D. Irwin, 1965, 35.
Figure 3.
Richman-Farmer model.
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---

122
Two major criticisms have been made against the Richman-Farmer
model.
According to Koontz (1976), the model does not completely
separate the environmental factors from the basics of management
because it puts together actual policies with the basics of management.
Koontz contends that actual policies differ considerably in varying
environments and therefore, cannot be considered as part of the
basics of management.
Scho11hammer (1969) has criticized the Richman-Farmer model for
presenting organizations and management as passive products of the
environment.
In his view, Richman and Farmer overemphasize the need
for environmental adaptation and fail to recognize the ability of
management to act in defiance of some external constraints.
Negandhi-Prasad Model
Another popular model in comparative management is the Negandhi-
Prasad model (1971); it was first developed by Negandhi and Estafen
in 1965.
The 1971 version of the model is graphically depicted in
Figure 4.
The environmental factors included in the mode1--socio-
economic, educational, political, and 1ega1--are similar to those
identified by Richman and Farmer.
The model also incorporates the
following management practices:
planning, organizing, staffing,
motivating and directing, controlling.
The basic difference between the Richman-Farmer model and the
Negandhi-Prasad model lies in the inclusion in the latter model, of
management philosophy as a major independent variable, that is, a

---

Hanagement
Philosophy
Management Attitudes
toward
Employees
f--
Consumers
lIanagement
Suppl:l "':s
Practices
Stockholders
Government
Planning
Conununity
Organizing
Affect
..., Management
Affect
...., Staffing
Effectiveness
Affect
.....
Hotivating and
Environmental
directing
Factors
Controlling
Socioeconomic
'---
Educational
Political
Enterprise
Legal
Affect
.. Effectiveness
Source:
Negandhi, A. R., & Prasad, S. B.
Comparative management.
New York:
Appleton-
Century-Crofts, 1971, 23.
Figure 4.
Negandhi-Prasad model.
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---

124
variable not determined by the environment.
Management philosophy is
defined in the model as management attitudes toward employees,
consumers, suppliers, stockholders, government, and community.
Koontz (1976) has criticized the Negandhi-Prasad model on the
grounds that management philosophy can hardly be seen as being
independent from environmental factors.
He further contends that
"the model itself does not make sure that management techniques or
approaches can be separated between basics and environmentally
influenced practices" (p. 87).
Koontz Model
Having argued that both the Richman-Farmer and the Negandhi-
Prasad models were inadequate for analyzing the universality and
transferability of management across cultures, Koontz (1976)
proposed another model which, he felt, was superior to the other
models.
This third model is depicted in Figure 5.
According to Koontz, his model is better because it separates
the art and science of management and recognizes the importance of
other factors such as enterprise functions sciences, human and
material resources.
The model also stresses the important role of
non-managerial practices such as marketing, engineering, production,
and finance.
Differences Between the Three Models
and this Study Framework
There are four major differences between the three models
described above and the framework proposed in this study.
First of

---

Basic Management
Science
Concepts
Principles
Theory
Knowledge of general
~
Managerial
application
Practices
Affect
....
Approaches
Enterprise Function
~,
Techniques
-
Effectiveness
Sciences
-)-e
Objectives
due to
Marketing
•
Policies
~
Managerial
I
Programs
Factors
Engineering
I
Enterprise
Production
----i3
J
J~
Affect..
Due
Finance
I
,.Affect
Effectiveness 1---.
to
I
Effectiveness
,
due to
Human and Material
-)I
Non-managerial
4 Non-managerial
I
Practices
Resources
~ ---~~~~£~--)
-
Factors
Narketing
I
External Environment
I
Engineering
I
Production
I
Educational
~
Finance
Political-legal
.
Economic
Technological
Sociological-ethical
Source:
Koontz, H.
A model for analyzing the universality and transferability of management.
In
H. Koontz & C. O'Donnell (Eds.).
Uanagement:
A book of reading.
New York:
McGraw-Hill,
1976, 81-90 (article originally published in 1969).
.....
Figure 5.
Koontz model.
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---

126
all, the focus of these models is on enterprises, i.e., on
organizations.
This study framework focuses on whole countries.
It
should be noted that Richman and Farmer considered their model to be
applicable to organizations and countries alike.
However, such a
claim is disputable.
Secondly, the three models classify the environmental determinants
of management under such headings as economic, educational, political,
and legal factors.
The framework of this study lists the basic
elements of the environment of management as People, Ideas, and
Things.
Thirdly, the three models propose a unidirectional relationship
between management and its environment.
They show that environmental
factors affect management but do not show that management, in turn,
affects it environment.
This study framework shows that while
management is initially a product of its environment, it modifies
its own environment over time.
As a result, the ultimate outcome of
management as shown in Phase III of the framework, comprises a new
environment.
Fourthly, with the exception of Koontz's model, the models show
a d~rect relationship between the environment of management and the
outcomes of management such as efficiency and effectiveness.*
This
study framework, by way of contrast, shows an indirect relationship
*This direct relationship is depicted in the models by an
arrow between environmental factors and the outcomes of management.

---

127
between environment and outcomes.
The relationship is indirect
because management is an intermediate and intervening variable between
its environment and its outcomes.
The differences between the framework proposed in this study and
existing models in comparative management would seem to indicate
that while current models are helpful in the study of management as
it relates to organizations, they are inadequate conceptual frameworks
for the study of the socio-economic development of whole countries
from a managerial perspective.
The framework proposed in this study,
on the other hand, was expressly designed for the study of the
managerial aspects of the development of countries.
Results of Illustrative Analysis of Data
As shown in Chapter IV, a multiple regression analysis was
carried out with data for five goal variables numbered 1 through 5,
six efficiency variables numbered 6 through 11, and two outcome
variables numbered 12 and 13.
These variables were fully described
in Chapter IV.
The 11 goal and efficiency variables were entered
in the analysis as the independent variables* while the two outcomes
variables were considered to be dependent variables.
The study
sample consisted of 37 Sub-Saharan African countries.
The numerical
values of the 13 variables for the 37 cases are given in Appendix H.
*In the framework described earlier in this chapter,
efficiency is ~ategorized as an intermediate outco~e of management,
that contributes to the effectiveness of manageMent.

---

128
To account for missing data, the analysis was conducted with
the original data supplemented with group medians in lieu of the
missing data.
This was done according to the suggestion made by
Talbot et al. (1976) who recommend the use of assigned values that
have a minimal biasing effect to eliminate missing data.
For this
study, the median values of the variables were chosen for best
meeting this criterion.
To obtain the group medians for the 13
variables, the 37 countries were divided into four groups.
This
grouping followed the classification of these countries by the World
Bank (1981) into these four categories:
(1) low-income semi-arid
countries; (2) other low-income countries; (3) middle-income oil
importing countries; (4) middle-income oil exporting countries.*
Low-income countries are those with a per capita inco~e equal to or
less than $370, whereas middle-income countries are those with a
per capita income exceeding $370 (World Bank, 1981, p. 142).
The
median value of each of the 13 variables was computed for each group
of countries and was used for the corresponding missing value within
each group.
The results of the multiple rer,ression analysis
are
presented in summarized form and discussed below.
A correlation
matrix for all the 13 variables is provided in Appendix T.
*Group I includes countries 7, 11, 20, 21, 23, 23, 34, Group 2
includes countries 2, 4, 6, 9, 13, 14, 17, 19, 22, 25, 27, 29, 31,
32, 33, 35.
Group 3 includes countries 3, 5, 12, 15, 16, 18, 26,
30, 36, 37.
Group 4 includes countries 1, 8, 10, 24.
See Appendix F
for the names of these countries.

---

129
Summary of Results of Regression Analysis with
Variable 12 (Physical Quality of Life Index
or ~QLI) as the Dependent Variable
Summary of Results
A summary of the results of the multiple regression analysis with
variable 12 (PQLI) as the dependent variable, is shown in Table 6.
As the table shows, the 11 goal and efficiency variables taken
2
together, account for about 45% (R
= .44779) of the variance in the
dependent variable.
Of this total, the single largest contribution
2
(about 25%; R
= .24888) is made by variable 5, i.e., percentage of
central government's expenditures on national defense.
~fuen variable
10 is entered into multiple correlation with variable 5, this
percentage of variance explained arises to 38%.
The remaining nine
variables, added one at a time, do not explain much more of the
variance in the dependent variable.
Discussion
The results of the regression analysis presented above suggest
that two variab1es--expenditures on national defense, and educational
efficiency--account for most of the observed variance in the P0LI.
These results could be interpreterl as fo110\\7s:
since military
expenditures for the 37 countries of the study sample consist, for
the most part, of expensive imports of armanents, it may be safe to
say that these expenditures constitute a severe drain on the
resources of these countries and adversely affect their development.

---

130
Table 6
Summary Table of Regression Analysis with Variable 12
(Physical Quality of Life Index) as the Dependent Variable
Independent variables by order
2
of entry in regression*
Uultiple R
R
Simple R
% expenditures, national
.49888
.24888
-.·49888**
defense (5)
Educational efficiency (10) .
.61530
.37859
-.38645***
Efficiency, services (9)
.62976
.39659
.19793
Efficiency, capital (11)
.64027
.40995
.21568
% expenditures, health (2)
.65761
.43246
.02456
Efficiency, agriculture (7)
.66271
.43919
-.01955
% expenditures, economic
.66551
.44290
.13033
services (4)
% expenditures, education (1)
.667l f6
.44550
.13996
Administrative efficiency (6)
.66853
.44693
-.00568
Efficiency, Industry (8)
.66914
.44775
.00845
% expenditures, social security,
.66917
.44779
.03446
housing, welfare (3)
*The numbers in parentheses are the original numbers of the
variables.
**Significant at p < .002.
***Significant at p < .018.

---

131
That would explain the negative correlation (R = -.49888, p ~ .002)
between percentage of expenditures on defense and the physical
quality of life.
lfure puzzling is the negative correlation (R = -.38645, p ~ .018)
between educational efficiency and the physical quality of life.
The
explanation lies, perhaps, in the fact that education cannot, or
should not be evaluated in terms of efficiency; it is one of these
goals that are worth achieving whether they are achieved efficiently
or not.
Summary of the Results of Regression Analysis
with Variable 13 (Per Capita G1W)
as the Dependent Variable
Summary of Results
As Table 7 shows, the 11 goal and efficiency variables account
for about 92% of the observed variance in the dependent variable, per
capita GNP.
Variable 7 alone--efficiency of labor in agriculture--
accounts for 83% of the variance.
The other 10 independent
variables account for the remaining 9% of the observed variance in
per capita GNP.
Discussion
One variable, labor efficiency in agriculture, accounted for
most of the observed variance in per capita GNP.
This finding can be
explained by the fact that all the 37 countries of the study sample
are non-industrialized nations, and agriculture contributes the

---

132
Table 7
Summary of Regression Analysis with Variable 13
(Per Capita GNP) as the Dependent Variable
Independent variables by order
2
of entry in regression*
Hultiple R
R
Simple R
Efficiency, agriculture (7)
.91308
.83371
.91308**
Efficiency, services (9)
.93421
.87274
.08632
% expenditures, economic
.94327
.88976
.36106***
services (4)
% expenditures, education (1)
.94917
.90093
-.03796
% expenditures, social security,
.95376
.90966
.13189
housing, welfare (3)
Administrative efficiency (6)
.95689
.91564
-.29646****
Educational efficiency (l0)
.95933
.92031
-.22038
Efficiency, capital (11)
.96023
.92205
.21144
Efficiency, industry (8)
.96100
.92352
-.25409
% expenditures, health (2)
.96121
.92392
-.29410****
% expenditures, national
.96132
.92413
-.00661
defense (5)
*The numbers in parentheses are the original numbers of the
variables.
**Significant at p < .001.
***Significant at p < .028.
****Significant at p < .07.

---

133
largest share in their gross national product.
However, the degree
of association between the two variables is so high (R = .91,
significant at p ~ .001) that it may be due, in part, to spuriousness.
The problem of spuriousness may also explain why some variables such
as expenditures on economic services, did not account for much of the
explained variance in per capita GNP.
Summary of the Illustrative Analysis of Data
In summary, the multiple regression analysis showed that, of all
the 11 goal and efficiency variables, only three accounted for most of
the explained variance in the two outcomes variables.
These three
variables were, in order of magnitude, the following:
efficiency in
agriculture, expenditures on national defense, and efficiency in
education.
The value of this finding can only be suggestive.
Future research
could check the reliability and validity of the measures used in
this an~lysis to determine their value as important elements of the
framework proposed in the study.
Because the analysis of data was
primarily undertaken to show how the eleflents of the framework could
be operationalized, measured, and tested, it can be said that this
purpose was achieved.
General Discussion
To achieve one of the stated objectives of this study--providing
hypotheses for future research--the follo\\.ing discussion proposes

---

134
11 propositions that can be refined and couched in hypothesis form
for theory and research on the relationships between management and
socio-economic development.
The proposed propositiona1 statements
elaborate some of the posited relationships between the elements of
the framework developed in the study. *
Proposition 1
The quantity and quality of things under the form of natural or man-
made physical resources that are part of the environment of a
society, constitute a helpful condition of the effectiveness of
societa1 managers in achieving socio-econo~ic development.
One of the weaknesses of classical economic theory in explaining
the process of development stems from a biased emphasis on land, i.e.,
natural resources and capital as key determinants of development.
Land and capital are thus placed on an equal footing with 1abor in
the equation of growth and development.
The abundance of capital and natural resources, assuredly, is a
considerable asset for a country.
It is indubitable that the growth
and the development potential of many an oil-rich nation have been
decisively enhanced by oil revenues.
Yet, with the possible
*Propositions are similar to hypotheses. According to
Zetterberg, they are explanatory, theoretical statements.
The
following types of propositions have been identified:
(1)
irreversible:
if X, then Y, but if Y, there is no conclusion about
X; (2) stochastic:
if X, then probably Y; (3) coeRtensive:
if X,
then also Y; (4) sufficient:
if X, then necessarily Y; (5) dependent:
if X, then Y, but only if Z (Zetterberg, 1965; 69-83).

---

135
exception of the United States, the developed countries do not possess
more natural resources than the so-called underdeveloped countries.
It can well be argued, that the lack of natural resources may actually
act as a powerful incentive for a nation to devise new ways for
creating material wealth, and open new paths to development.
At any rate, countries without a wealth of natural resources
have been able, throughout history, to acquire these resources from
elsewhere by trading the fruits of the skills and creativity of their
peoples.
Today, developing countries that have not mastered the
basics of modern technology can still purchase the most sophisticated
machinery in the international market place.
But, as scholars like
Solow (1957) and the human capital theorists point out, a country
can have a wealth of capital and natural resources and still fail to
develop.
This point has been strongly made by Salvatore and Dowling
(1977):
Industrialization.
At the end of World 'Jar 11,
Argentina had a stronger industrial base than was
left to either of the two defeated Axis powers.
Yet, within ten years, both Germany and Japan
had far outstripped Argentina's production
levels.
Economic capability is not measured
solely by the number of machines at a country's
disposal.
Technology.
Technology speeds development.
But
many less developed countries have imported the
latest technology for their steel mills and
textile plants and progress has not spread to
other areas of the economy.
Iran at preaent is
importing $3 billion worth of tec' 1,~logy
annually, but it will be years before she ranks
. among the developed countries.

---

136
Natural resources.
Natural resources aid develop-
ment.
Brazil and Indonesia are among the richest
naturally endowed countries of the world but they
rank far behind Holland, which has little more
than an industrious people and a central location.
(Salvatore & Dowling, 1977, p. 9; headings
emphasized in original text)
In other words, material resources can enhance the development
chances of a country, especially in the short run.
But they are not
the chief determinants of development.
This point is to be
emphasized in any attempt to build a managerial theory of socio-
economic development.
Proposition 2
The quantity and quality of ideas in the environment of a society
constitute a necessary condition of the effectiveness of societal
managers in achieving development.
Even more important than the abundance of material resources, is
the availability of ideas that a society creates, borrows, and
otherwise acquires and uses for its development.
Two major types of
ideas are particularly influential in shaping the management and
development of nations.
The first type is ideology.*
It comprises
all normative ideas about the nature of man, the good society, and
the good life.
The ideological configuration of a society colors its
*An ideology is defined in Webster (1979) as "the doctrines,
opinions, or way of thinking of an individual, class, etc." (p. 902).

---

137
political, economic, and cultural spheres.
Ideologies actually
provide nations with their own definition of socio-economic development
and a specification of the ends of development as well.
The second major type of ideas is what may be called utilitarian
or practical knowledge, for want of a better appelation.
This type
includes ideas about how to engage in concrete action so as to solve
societal problems and achieve societal goals.
Technology and
scientific know-how are of this type of idea.
As Weaver and Jameson (1978) aptly point out, theories of
development incorporate both major types of ideas.
Since different societies face different problems, the ideal for
any society would be to create ideas tailored to its own needs.
But it is a matter of historical record that the most dynamic
societies are those that are also capable of borrowing and
assimilating ideas from other societies.
For example, Europe borrowed
the Judeo-Christian ideas from the ltiddle East, and modern Cuba
borrowed some of the socialist ideas of the Soviet Union.
In both
cases, the borrowed ideas made a decisive contribution to the growth
and development of these societies.
Today, Japan is often cited as
a pertinent example of the ability of a nation to borrow ideas from
elsewhere, modify them according to its own needs, and use them for
its own development.
In ~~~ary, ideas exert such a powerful influence on the life of
a society that their quantity and quality constitute a necessary

---

138
condition of the effectiveness of societal managers in achieving
development.
A managerial theory of socio-economic development will
ultimately prove the tenability of this proposition.
Proposition 3
The quantity and quality of people constitute both a necessary and
sufficient condition of the effectiveness of societal managers in
achieving development.
Although ideas are of crucial importance, the best ideas cannot
ensure the development of a country if the members of society fail
to make a judicious use of these ideaR.
As pointed out in Chapter II, one of the main contributions of
human capital theory to development theory was to rightly point out
that, in the final analysis, people are the single most important
determinant of development.
This point has been so well documented
in the literature of human capital theory that it need not be
elaborated here.
Suffice it to say that, with regard to the other
two basic elements of the environment, people are the creators and
users of ideas, they attach meaning and value to the physical world,
and they create and consume material wealth.
People initiate and implement all the activities conducive to
development, including the act of managing.
They are the alpha and
omega of management and development.
Therefore, their <Iuantity
(numbers) and quality (intrinsic value) constitute both a necessary
and sufficient condition of the effectiveness of societal managers in

---

139
achieving development.
This is to say that
only people can make a
developed society.
A managerial theory of socio-economic development
will by necessity consider people as its cornerstone.
Proposition 4
The relationship between management and its environment is
reciprocative, interactive/iterative, and dialectical.
The relationship of determination between management and its
environment is reciprocal.
As said earlier in this chapter,
management is a product of its environment ab initio.
Over time,
however, as management grows, it can partly feed upon itself as well
as borrow from other management systems in other environments.
In
the process, management becomes a major shaper of its own environment.
Indeed, some scholars have singled out the creation of environments
as the essential task of management.
A1banese (1978), for example,
has stated that:
l1anaging, or management, is ••• the work of
creating and maintaining environments in which
people can accomplish goals efficiently and
effectively.
These environments involve the
integrated use of human, financial, and
natural resources for the purpose of achieving
goals.
(p. 7)
The relationship between management and its environment is also
interactive and iterative.
The interactive nature of this relationship
stems from the reciprocal influence that either entity exerts upon
the other.
The relationship is iterative because it repeats itself
at any given point in time.

---

140
Finally, the relationship between management and its environment
is dialectical.
At time 1, management is a product of its
environment.
In due time, however, management shapes its environment.
The resulting managed environment at time 2 is a synthesis of the
environment at time 1 and management.
The relationship is dialectical
because the new environment produces new management that will bring
about another environment and so forth.
The process unfolds ad
infinitum.
Proposition 5
The more the managers of a country are effective in developing all
the three basic elements of the environment--people, ideas, and
things--the more their effectiveness in achieving overall socio-
economic development.
On the- surface, the preceding statement seems tautological.
But this semblance is misleading.
The statement implies that the
managers of societal systems do not attach
the same degree of
priority to the development of the three basic elements of the
environment.
In their pursuit of development, nations tend to
adopt, in the long run,'some identifiable patterns of priorities in
allocating resources and human energies to competing problems and
goals.
This tendency has been recognized and built upon by the
tenants of unbalanced growth theory.*
*See Chapter 11 for a summary review of unbalanced growth theory.

---

141
Theoretically, and on the basis of the preferential treatment
accorded to each of the basic elements, it is possible to identify
three archetypes of societies:
(1) those that spend most of their
energies and resources on people; (2) those that are most concerned
with ideas; and (3) those that are most interested in things.
One can further envision two extreme ways for a society to
expend its resources: . (1) expending almost all of them on one single
element; (2) dividing them equally between the three elements.
Most
societies fall somewhere between these two extremes.
Sutherland (1978) has proposed a tryadic classification of
societal systems that lends support to the typology of societies
presented above •. According to him, there are three types of
societal systems:
"systems of spiritual significance, systems of
social significance and systems of material significance" (pp. 283-
284).
The spiritual, social, and material dimensions of societies
identified by Sutherland correspond respectively to the three basic
elements of the environment--ideas, people, and things--incorporated
in the framework proposed in this study.
Sutherland further contends that there are not "many systems of
synthetic significance, where all three generic benefit categories
were more or less equally accessible and elaborate" (p. 284).
This
contention is in agreement with the fundamental idea discussed in
proposition 5:
that countries tend to attach different priorities
to the development of the three basic elements.
This tendency is
especially marked in the short run.

---

142
The effective management of a country for the purpose of
achieving development requires, in the long run, the balanced--not
necessarily the equal--development of all the basic elements of
the environment.
One corollary proposition would be that the
longer an element has been neglected, the harder it will be to
develop, relative to the other elements because long-term
distortions are bound to arise.
A managerial theory of development
will help clarify these issues.
Proposition 6
The effectiveness of societal managers in achieving development is
enhanced by the degree of agreement between managers and the larger
society on the definition of societal problems and goals, and the
extent to which both groups have the will to develop.
This statement points to two problems in the management and
development of nations.
The first problem is related to the
very definition of a country's problems and goals.
The relevant
questions here are:
Do societal managers and those they lead
perceive similarly the problems faced by their country?
Do they
agree on the most pressing needs of their society and on the ways
and means to meet these needs?
To the extent that the answers to
these questions are affirmative, one could theorize that the task of
societal managers would be made relatively easier.
The second problem
indicated by proposition 6 can be expressed
with these questions:
Is there a shared willingness on the part of
societal managers and their people to solve societal problems?
Is

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there a will to develop?
If yes, does this will arise directly from
the larger society or does it originate from managers and is then
transmitted downwards to the larger society?
These questions under-
score'one of the crucial issues in managing a country:
enlisting
widespread participation in national development efforts.
Oftentimes,
many development programs and projects in many countries fail to
entice the approval and support of the very same people expected to
benefit from them.
The key to this problem. may revolve around the
nature and origin of the will to develop and it may be provided by a
managerial theory of development.
Proposition 7
The effectiveness of societal managers in achieving development is
enhanced by a high degree of congruence between the overall goals of
society and the operational goals of managers.
In any country, there is never a complete guarantee that societal
managers will give top priority to the most important goals of society
as a whole.
For example, the leaders of a country struck with hunger
and disease, may choose to ignore the sufferings of their people and
spend the resources of their country on sophisticated weapon systems
and luxury goods.
In such a case, there would be a low degree of
congruence between the goals of society and the operational goals of
leaders.
The importance of goal congruence has been emphasized in a
recent study by Wilkins and Ouchi (1983) with reference to

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organizations and organizational clans.
At the level of whole
countries, it would seem logical to expect low correlations between
low goal congruence and the effectiveness of societal managers in
achieving development.
This expectation must be ultimately tested
within a comprehensive managerial theory of development.
Proposition 8
The effectiveness of societal managers in achieving development is
enhanced by high degrees of managerial efficiency.
As defined in Chapter I, efficiency refers to the ability of
management to achieve societal goals with a minimal expenditure of
resources.
Efficiency increases the likelihood of effectiveness
because it sets free resources that can be allocated to other areas
of need, thereby allowing managers to achieve more goals.
Efficiency
allows managers to do more with limited resources and this is very
significant for the development of nations since no country has an
unlimited supply of resources.
For a country, high managerial
efficiency translates into increased productivity.
But efficiency will be of no help if managers fail to take
advantage of the opportunities created through efficient management.
The search for efficiency can be counterproductive if it" is done at
the expense of worthy goals that cannot be achieved efficiently.
In sum, efficiency contributes to effectiveness.
But it is, at
best, a necessary condition of effectiveness, not a sufficient
condition.

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145
Proposition 9
The effectiveness of societal managers in achieving development is
enhanced by high degrees of fit between the structure, contents, and
processes of management that prevail in a society.
Research by many management scholars (e.g., Pascale and Athos,
1981; Paul, 1983) has shown that whether management is operating in
the private or the public sectors, its effectiveness depends, in part,
on how all the elements of management fit together and form a
coherent whole.
Paul (1983) for example, has shown that in the
developing countries, effectively managed development programs contain
a high degree of managerial coherence and congruence:
They exhibit a surprising measure of congruence
among their environmental, strategic, structural
and process variables.
The mutual fit and
interaction effects among these influences seem
to have created a synergy which cannot be
explained in terms of anyone of them alone.
(p. 84; emphasis in original text)
Managerial congruence is even more important at the level of a
whole country because macro social problems and goals are more complex--
and harder to deal with--than organizational goals, and the structure,
contents and processes of management are not clear-cut at the macro-
managerial level.
One of the biggest challenges that await a
managerial theory of development is to specify the types and degrees
of macromanagerial congruence that contribute to the effectiveness of
societal managers in achieving development.

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146
Proposition 10
The effectiveness of societal managers in achieving development is
facilitated by the existence of an adequate reward/incentives systems
within society.
Some development theorists have advanced the proposition that
any type of political system, i.e., any country, is capable of rapid
development if it has a good internal reward system.
The following
quotation is a good example of this line of thinking:
There are many instances from the past and
present of similar political systems producing
quite different economic results.
Within a
democratic framework, De Gaulle brought
stability and reasonable growth to France;
Peron in A~gentina brought eventual chaos and
near collapse of the economy.
Under a Fascist
regime, Hitler ran an efficient war machine in
Germany; the war effort in Italy soon broke
down under Mussolini.
Communism, too, has seen
its successes and failures.
As a Communist
dictator, Stalin succeeded in accelerating
growth in Russia; Castro has not been notably
successful in Cuba.
The military regime in
Brazil has had conspicuous success economically
in r~cent years; the junta of generals in Chile
continues to have difficulties.
In the case of
Democratic Socialism, Sweden has fared better
than Britain.
The above seems to indicate that the nature of
incentives within the system is often more
important than the type of political system
itself.
(Salvatore & Dowling, 1977, p. 10;
emphasis added)
Since the reward system within a society is an integral part of
societal management, a managerial theory of development must address
the question of devising and strengthening adequate reward systems

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147
that will increase the effectiveness of societal managers in
achieving development.
Proposition 11
The effectiveness of societal managers in achieving development is
determined by the overall adequacy of the existing managerial system
in relation to the environment and needs of a specific society.
Ultimately, the question may be asked as to whether the manage-
ment system found in a country is the most appropriate system for
that country.
A continuous assessment of the overall adequacy of
management is necessary to ascertain whether or not management stays
in tune, and is responsive to the changing demands of its environment.
Whenever there is a conflict between the situational/environmental
elements and management, the effectiveness of societal managers is
bound to suffer.
Perhaps, a good illustration of this proposition would be the
case of Poland today.
In that country, the strong religious beliefs
of the people seem to be at odds with the professed atheism of
socialist ideology and management.
The current economic woes in the
country and the repressive measures taken aeainst the labor movement
are symptoms of the ineffectiveness of Polish leaders to solve their
country's problems.
It may well be that the Polish managerial system
has outgrown its adequacy.
A managerial theory of development will provide ways for assessing
the adequacy of any country's managerial system and for changing the
system when needed.

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Recapitulation
To the extent that the 11 propositions set forth in the
preceding pages are valid, then, the overall effectiveness of
societal managers in achieving development could be predicted
globally in equational form.
This would be done by considering
overall effectiveness as a dependent variable which is a function of
the following determining variables:
(1) the quantity and quality
of the core elements of the environment; (2) the balanced development
of these core elements; (3) the will to achieve societal goals on
the part of both management and the larger society; (4) the
congruence between managerial goals and societal goals; (5) the
efficiency of management; (6) the mutual fit between the structure,
contents, and processes of management; (7) the reward system; and (8)
the overall adequacy of management.
The validity and, ,hence, the usefulness of this suggested
approach to predicting overall effectiveness, must ultimately be
subjected to empirical testing as part of the development and
validation of a comprehensive management theory of development.
Such
a theory will also show whether the terms of the effectiveness
equation specified above are adequate or whether some terms should be
modified, added, or subtracted.
In the next chapter of the study,
some specific suggestions are made regarding further research.

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CHAPTER VI
SUMMARY AND CONCLUSION
This sixth and final chapter presents a summary of the study, a
brief review of its contributions and weaknesses, some suggestions
for future research, and a conclusion.
Summary of the Study Problem and Objectives
One of the newest perspectives on socio-economic development
is the managerial perspective according to which, management plays
the most crucial role in determining the success of a country in
achieving its development objectives.
The usefulness of the
managerial approach has been limited, however, because it has not
progressed beyond recognizing the importance of management, and so
far, its proponents have failed to develop a comprehensive theory
to guide further research.
There is thus a need for studies that
could contribute to the development of the needed theory.
This
exploratory study was undertaken to help meet this need and it
proposed to develop a comprehensive framework for the study of
development from a macromanagerial perspective.
The framework
was designed to provide researchers with a conceptual tool for
integrating knowledge on the ~ k tionships between management and
socio-economic development, and for orienting future research
aimed at building a comprehensive managerial theory of development.

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150
In sum, the framework developed in the study offered the bare
elements of a comprehensive theory for epistemological purposes,
and it focused on whole countries as its units of study.
Study Design and Methodology
To develop the proposed framework, the study relied primarily
on an inventory method of model building, a method that is perfectly
suited to the nature and purposes of this exploratory inquiry.
The
inventory method allowed the author to canvass and synthesize the
relevant literature in order to identify the key variables to be
included in the proposed framework.
The study also included a
limited analysis of data with a sample of 37 African countries; this
analysis was solely undertaken for the purpose of showing how the
variables included in the framework could be measured and subjected
to empirical testing.
Study Results and Discussion
The chief result of the study was the proposed framework.
This
framework was shown to include three major components:
(1) the
background environment of management; (2) management structure,
contents and processes; and (3) management outcomes.
Each component
comprised a number of identifiable elements.
In describing and
discussing the elements of the framework and the relationships
between them, 11 major propositional statements were put forth.
These statements were intended to offer a basis for generating
testable hypotheses for future research.

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151
Although some significant correlations were found between
the dependent and independent variables included in the analysis of
data, limited use was made of the results of this analysis and no
implications were drawn from them.
The decision to make little use of
this part of the study stemmed from the fact that the analysis of data
was only undertaken for illustrative purposes and did not constitute
a central part of the study.
The data for the study came, for the
most part, from the World Bank, and they were analyzed by means of
multiple regression analysis.
The results of the analysis of data
were presented in Chapter V.
Contributions of the Study
The main specific objectives of the study as stated in Chapter I
were:
(1) to develop an integrated framework for the study of
development from a managerial perspective; (2) to suggest ways for
testing the value of the framework as a research tool and to provide
an illustrative empirical testing of some elements of the framework;
and (3) to generate testable hypotheses for future research.
Objectives 1 and 3 were fully achieved with the development in
Chapter V of the proposed framework and the statement of 11
propositions.
Objective 2 was partially met in Chapter V with the
illustrative analysis of data; it will be fully met in the penultimate
section of this chapter when suggestions are made about future
research.

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152
It is also hoped that the study will make a contribution to
the solution of some of the general problems of comparative
management--deficient conceptualization, lack of knowledge integration,
and micro-analytic bias--by respectively (1) using definitions based
on a synthesis of existing definitions as well as concepts that can
be measured in some fashion; (2) adopting a synthetic, inventory-
based methodology; and (3) focusing on whole countries as the units
of study.
Since the study was exploratory, this contribution can
only be suggestive.
The basic overall purpose of the study was to contribute to the
development of a comprehensive managerial theory of social and
economic development.
A theory, as defined by Kerlinger (1973) is:
a set of interrelated constructs (concepts),
definitions, and propositions that present a
systematic view of phenomena by specifying
relations among variables, with the purpose of
explaining and predicting the phenomena.
(p. 9)
To the extent that the framework developed in the study exhibits
some of the characteristics of a theory as specified by Kerlinger.
it can be said to contain. at least. some of the elements of a theory.
But are these elements sufficient and valid?
The answer to this
question and the value of this study. or for that matter, of any
exploratory study. rest ultimately on subsequent research.
This
point is well made by McCormick and FranciF (1958):
The scientific value of cas~ studies. life
histories. and other descriptive and exploratory
studies, apart from suggestions. lies in the
assumption that they will be converted first into
generalized types. and later will be subjected to
more rigorous research analysis.
(p. 25)

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153
In summary, this study makes a suggestion about how to approach
the study of the relationships between management and development in
order to develop a comprehensive theory of development from a
managerial perspective.
The proposed framework represents the bare
elements of a theory but it behooves future research to determine its
epistemological value.
Weaknesses of the Study
Besides the limitations spelled out in Chapter I, this study
has some weaknesses that are exposed below with hopes that future
research will be able to correct them.
Reliance on Verbal Statements
Perhaps the most visible weakness of the study is its reliance
on verbal statements instead of formulations based on empirical
data, for developing the proposed framework, and for discussinG the
relationships among· the variables included in the framework.
Because of the suggestive and non-prescriptive nature of exploratory
studies, the use of verbal statements in conducting these studies
is an accepted practice.
In this regard, rkCormick and Francis
(1958) have made this observation:
By exploratory studies are meant those that are
intended to be merely suggestive rather than
definitive; they are expected to open up Bround
for more careful investigation; that is, they
simply record what is observed without any formal
testing of hypotheses.
They may use verbal
statements only, or may cite figures, or may
attempt both.
(p. 24; emphasis added)

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154
Although verbal statements constituted an adequate vehicle
for conducting this study, a reliance on them usually makes a study
difficult to replicate by other researchers,* and leads to untested
formulations.
Therefore, this aspect of the study amounts to a
weakness, even though it was justified on methodological grounds.
Narrowness of Theory Base
Knowledge is never created ex nihilo and the value of a study
rests in part on its ability to build on, and contribute to "existing
knowledge.
This is to say that a study should be based on the most
current, most relevant, and most complete body of knowledge in the
area of investigation.
Because of the highly interdisciplinary
nature of the phenomenon of socio-economic development and the study
thereof, the ideal for the present study would have been to build
on concepts and knowledge drawn from all disciplines relevant to
development.
In practice, however, most of the concepts used in
the study came mainly from two areas:
the field of development
itself, and the discipline of management, with a particular emphasis
on comparative management.
Therefore, the theory base of the study
is somewhat narrower than it should ideally be.
To be sure, the narrowness of the theory base of the study is
mitigated by the fact that both management and development incorporate
many of the concepts of a great number of disciplines.
The inter-
d1~_lplinary nature of these two fields of inquiry is documented in
*How this study attempted to meet the criterion of replicability
was dealt with in Chapter IV.

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155
Chapter I and Appendix A.
But still, the theory base of the study
could have been made stronger by tapping directly into the knowledge
accumulated in such disciplines as sociology, anthropology,
philosophy, political science, general systems theory, just to
mention a few.
Weakness of Data Analysis
Another weakness of the study lies in the area of data analysis.
The unreliability of the data used in the study was acknowledged in
Chapter IV.
But there are other problems.
The procedure of multiple
regression was used without some empirical evidence that the
conditions for using the procedure were adequately met.
Furthermore,
although the measures of the variables are all replicable, they
leave something to be desired.
For example, in measuring goal
variables, only the percentages of central government expenditures
allocated to competing areas were used.
It would have been better
to use percentages of GNP because a central government's budget
represents only a portion of a country's GNP.
Due to these short-
comings, it is recommended that the measures be only considered as
examples of how testable measures can be constructed for the
variables related to the elements of the proposed framework.
Suggestions for Future Research
What follows is an outline of sugges'c~ steps that could be
followed by researchers interested in contributing to the development
of a comprehensive managerial theory of development.

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156
Identification of Societal Managers
In this study, societal managers were conveniently, but somewhat
simplistically, defined as the major decision-makers within society,
and it was further proposed that national governments were the most
visible managers of their countries.
Researchers interested in
developing a sound managerial theory of development should begin with
an attempt to systematically identify and describe societal flanagers.
These could include among others, religious and spiritual leaders,
tribal elders, traditional chiefs, and so forth.
If the macro-
perspective proposed in this study is followed, then societal
managers are to be identified and studied, not as isolated individuals,
but as distinct social classes in the Marxist sense, since our
interest lies in the aggregate effects of their collective managerial
actions on the development of their societies.
The identification
of societal managers is extremely important because management
cannot be studied independently of managers.
Operationalization and Measurement of Variables
If the framework proposed in this study is to have any value as
a research tool, then, its constituent elements and the relationships
between them, must be empirically tested.
The illustrative analysis
of data included in the study attempted to show how variables
related to three important elements of the framework--goals,
efficiency, and effectiveness--could be operationalized and measured
for testing purposes.
Future research could do the same for all the
other elements of the framework.

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157
To operationalize and measure all the variables related to
management structure, contents, and processes at the level of total
societies, it will be necessary'to develop some ad hoc measures as
well as to use some existing measures in management and organization
theory that are general enough to be applicable to whole societies,
mutatis mutandis.
For example, the basic forms of organizations
identified by Etzioni (1961)--coercive, utilitarian, and no~tive
types--and their respective forms of involvement and basis of
authority, are general enough to be applicable to total societal
systems; they could therefore be used with some modification and
refinement to provide guidelines in operationalizing and measuring the
structure, philosophy and style of management at the macromanagerial
level.
In all likelihood, not all the elements of the framework could
be quantified.
'fl.1e concept of "societal will," for instance, cannot
be easily quantified and measured.
Nevertheless, a systematic
attempt at operationalzing and measuring all the elements of the
framework will help to identify variables that cannot be measured
with numbers.
Exploratory Research and the Refinement
of Research Hypotheses
The identification of societal managers, and the measurement of
the elements of the framework developed in this study, can be under-
taken as part of more extensive exploratory research with large
samples of countries and more valid and reliable data.
This type of

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158
research could also help to refine the propositional statements set
forth in this study in order to arrive at the most parsimonious core
of quality hypotheses for testing.
Confirmative Research, Predictive
and Causal Explanations
Once clearly refined hypotheses are available for testing, it
will be possible to engage in confirmatory research with even better
data and more sophisticated techniques of data analysis so as to
accept, reject or modify these hypotheses.
The next logical step
would, then, be to move toward causal and predictive explanations
of the process of socio-economic development from a managerial
standpoint.
A comprehensive and sound theory would have been
developed in the process.
It may well be impossible to establish some definitive causal
links between management and development because causality is one
of the most troublesome areas in social research.
Kerlinger (1973)
has asserted that causal notions are not "necessary to scientific
work" (p. 393).
He writes in substance:
The position taken in this book is that the study
of cause and causation is an endless maze.
One
of the difficulties is that the lvord "cause" has
surplus meaning and metaphysical overtones.
Perhaps more important, it is not really needed.
Scientific research can be done without invoking
cause and causal explanations, even though the
words and other words that imply cause are .-tlmost
impossible to avoid and thus will oc~c~ionally be
used •••• We agree that causal laws cannot be
demonstrated empirically, but we are equivocal
about thinking causally.
There is little doubt
that scientists do think causally and that when

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·159
they talk of a relation between E and ~ they hope
or believe that E causes S.
But no amount of
evidence can demonstrate that E does cause ~.
(Kerlinger, 1973, p. 393; emphasis in original
text)
Kerlinger's statement implies that special care must be taken in
defining causality as it applies to the relationships between
management and development.
It also implies that the establishment
of causal connections is not a sine qua non for the development of a
scientifically valid managerial theory of development.
Conclusion
The main theme that runs through this exploratory study is that
global societal systems must be the primary focus of study in the
search for a managerial theory of social and economic development.
This contention is lent support by both Gestalt theory and situational
or contingency management theory.
Gestalt theory states that any
phenomenon is best understood as a whole, not as a sum of its
components.
Situational management theory, on the other hand, posits
that the effectiveness of management is contingent upon the symbiotic
interface of management and a particular situation.
rfuen dealing
with the management of social and economic development, the "situation"
refers to a total societal system, and management will be effective
only to the extent that it is premised on this fundamental fact.
It is the position of this writer that a global modeling of the
process of development from a macromanagerial perspective is needed
for the development of a comprehensive theory.

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160
However, some scholars would disagree with this position.
For
example, with regard to what is often referred to in the literature
as "development administration," LaPalombara (1971), Kasfir (1972),
and Gable and Sprincer (1979) have expressed doubts about the
usefulness of global models because, according to them, these models
are too highly general, too abstract, and they fail to reflect the
great diversity of patterns and relationships in the developing
countries.
In reply to these criticisms, it can be said that global, macro-
managerial models designed to grasp the features of total societies
as they relate to development, are not only useful; they are
actually necessary.
This point was made in Chapter I when the need
for the study was presented.
The case of the field of economics,
with its conceptual division into Microeconomics and Macroeconomics,
was cited as an example of the adequacy and necessity of theory
building at both the micro and macro levels.
Macro models are not
sufficient in, and by themselves; but neither are micro models.
The
two must complement each other, and in certain areas, one type may
be more adequate than the other.
The point cannot be overemphasized that models are just
conceptual tools created by the human mind.
Both macro and micro
models are imperfect representations of real life phenomena.
The
framewor-. ,roposed in this study is an imperfect representation of
the phenomenon of development viewed from a managerial angle.
In

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161
the real world, real life phenomena are entities that are not defined
solely by either their macro or micro parts.
The long-term
challenge to social scientists is precisely to bring their conceptual
tools, including their models, closer to reality by arriving at a
level of conceptualization that is so integrated that the lines
between macro and micro models will be obsolete.
But for now, it is
necessary to theorize ar both the macro and micro levels.
To condemn
global, macro modeling because existing global models do not work, is
abusive.
Another disagreement with the perspective taken in this study can
be seen in a suggestion-made by Negandhi (1973).
According to him,
the field of cross-cultural comparative management could be made more
manageable by restricting attention to the functioning of orr,anizations
as the prime concern instead of trying to deal with all the
complex
economic and social problems of a society or nation.
Negandhi's suggestion brings this question to mind:
If those
who are interested in the study of comparative management, especially
societal management, do not concern themselves with the problems of
social and economic development, who will?
To abandon the problem
because of its difficulty will only delay the finding of long-term
solutions.
The study of development, whether it is done from a
managerial perspective or from any other perspective~ will always be
difficult and lead to only tentative conclusions.
The difficulty is
inescapable because the bottom line is this:
development is the
search for a better, indeed, for an ideal society.
It may well be

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162
that this is an impossible goal to reach; research will show how
close we can get to the ideal.
Like any other discipline, the field
of comparative management must make its contribution to mankind's
never-ending quest for knowledge and socio-economic development.
In conclusion, it was in the nature of this exploratory study
to raise questions rather than give answers, to explore rather
confirm or infirm hypotheses, to make suggestions instead of
providing prescriptions.
If the questions raised here are asked
time and again by others, and elicit new efforts to find answers,
then the study would have reached its goal:
the long-term development
of a sound and comprehensive managerial theory of socio-economic
development.

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163
APPENDIX A
THE EMERGENCE OF A MANAGERIAL PARADIGM OF SOCIO-
ECONOMIC DEVELOPMENT:
RATIONALE AND EXPLANATION

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164
This appendix reviews some of the reasons that point to manage-
ment as a crucial determinant of development.
As stated in Chapter I,
the reasoning of the tenants of a managerial approach to development
is simple and straightforward.
A good summary of this reasoning is
provided by the following quotation:
It is increasingly recognized that management is
the key factor in economic development.
Capital
investment, the introduction of advanced technology
or improvement of technical and vocational skills
can only be fully effective in raising the
performance of an enterprise, an industry or the
economy of a country when combined with good
management.
(ILO, 1966, p. 175)
Those who stress the key role of management in promoting
development often cite the case of Japan.
For example, Drucker (1974)
has asserted that this country was able to develop rapidly because it
produced good management:
Japan a hundred years ago was an underdeveloped
country by every material measurement.
But it
very quickly produced management of great
competence, indeed, of excellence.
Within twenty-
five years Meiji Japan had become a developed
country, and, indeed, in some aspects, such as
literacy, the most highly developed of all
countries.
We realize today that it is Meiji
Japan--rather than the traditional models of the
economist:
eighteenth-century England or
nineteenth-century Germany--which is the model
for the underdeveloped world.
(p. 35)
The case of Japan is also cited by Pascale and Athos (1981).
Other scholars point to the United States as a good example of the
contribution of management to development.
Johnson, et al. (1976)
write:
The most important influence on the growth of
America ••• was the ability of people to manage
large organizations.
Settlers coming to
America possessed a pioneering spirit and were
willing and able to accept change.
Many of the
first settlers were natural managers.
(p. 4)
Some writers go so far as LO assert that the whole field of
economics--a major part of the field of development--evolved from a
branch of management:
household management.
Stringfield (1965)
emphatically makes this point by stating that the "very word economy
has its root in management through the original Greek, oikonomia,
household management" (p. 41).

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165
The connection between economics and household management is
mentioned in the works of some economists, as evidenced by the
following statement made by Heilbroner (1968):
It is a little hard for us to imagine, but in the
third decade of nineteenth century England, a
knowledge of economics was part of a proper young
lady's accomplishments •••• In those days, economics
was not only esteemed as important but it was
actually a popular study.
(p. IX)
Regardless of the role that management may have played in the
genesis of the field of economics, an economic system must be
managed to bear fruit.
The evolution in management assumptions that led to the quest
for a managerial theory of development has been traced by Drucker
(1969) whose ideas are summarized in Table 8.
There are many specific .reasons that brought about the idea that
a management-based theory of development could well be the most
useful development theory to date.
Some of these reasons are:
Management is an essential and an indispensable activity.
Johnson, et al. (1976) have stated that:
To o~e degree or another, we are all involved in
managing and are constantly making decisions
concerning how to spend or use our resources.
For example, we may need to choose between buying
a television set and spending the money on a
vacation, or between studying for an exam and
going skiing.
In such cases, we are managing
scarce personal resources according to established
preferences and needs.
When the officials of a
corporation decide between building a new plant
and increasing dividends to stockholders, they
are managing the company's resources according to
a set of priorities.
When the president of the
United States presents the national budget to
Congress for the coming year, he is serving as
the manager of the federal economy.
(p. 3)
The foregoing statement suggests that the act of managing is
always permeating all the actions of people.
Individuals need
management, and so do groups.
The larger the group, the more the
need for management; and the more complex the task to be done, the
greater the demand for good management if the desired objectives are

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166
Table 8
Change in Management Assumptions
Old Assumptions
New Assumptions
1.
Only business has "social
1.
All in~titutions are accountable
responsibility" •
for the quality of life.
2.
Entrepreneurship and
2.
Entrepreneurial innovation is
innovation lie outside
the very heart of management.
management's scope.
3.
Management's task is to make
3.
It is management's task to make
the manual worker productive.
knowledge more productive.
4.
Management is a science or at
4.
Hanagement is both a science
least a discipline.
and a humanity.
5.
Management is the result of
5.
Economic and social development
economic development.
is the result of management.
Source:
Adapted from Drucker, P. F.
Hanagement's new role.
Harvard
Business Review, November-December, 1969, 49-54 (emphasis
added).

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167
,
to be reached.
The task of development is a long, arduous and
complex endeavor which involves whole societies.
Such a task cannot
bear fruit without good management.
Management touches upon all aspects of human life.
As shown in Chapter 11, owing to the acknowledgement that
development is a multi-faceted phenomenon that affects and is affected
by almost everything in a society, its study has increasingly become
highly interdisciplinary.
It is now believed that the reality of
development is best grasped by an interdisciplinary approach, and a
managerial approach is the interdisciplinary approach par excellence
because, as Nickell, et al. (1976) point out, management draws its
concepts .and laws from all disciplines and impinges on all aspects
of human life:
It makes use of all the findings of science and
of knowledge concerning all aspects of life~­
economic, social, psychological, physical,
spiritual and technical.
(p. 31; emphasis added)
~~nagement is people-centered.
Today, development thinking largely concerns itself with the
human element in development, that is, the demographic factors, the
cultural values, beliefs and attitudes of people as well as their
basic needs for food, clothing, shelter and other necessities of
life.
And so does management.
The ultimate goal of nana~ernent, its
raison d'etre--and its greatest challenge--is to help people achieve
their individual and group goals.
To quote Nickell, et al. (1976),
Management is not only a means·to accomplish
desired outcomes through people, as is most
often the case in business and industry; it
is also a means to accomplish desired outcomes
within people.
Personal management is a'means
for human development, self actualization, and
renewal.
(p. 31)
Because of the close connection between people and management,
managerial practices are in general, products of the social
environment,* and particular brands of management are the reflections
of different social settings.
This point is well stressed by
Drucker (1969):
*The relationships between management and its environment are
discussed in Chapter V.

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168
But management is also a culture and a system
of values and beliefs.
It is also the means
through which a given society makes productive
its own values and beliefs.
(p. 53)
Management is oriented toward action and results.
Etymol08ically, the word management has as its root the Latin
word manus, the hand.
This etymology sUf,p,ests that managing is a
deliberate action that does not happen by chance.
Ther~ is no such
thing as laissez-faire management, properly speaking, even though a
particular manager may have a laissez-faire style.
In the development field, there were times when a laissez-faire
approach was advocated by some theorists, e.g., Bauer and Yamey
(1957), as the best way to achieve development.
According to such
an approach, government should play as little a role as possible
and allow the free play of the market and private interests.
Today,
it is generally accepted that in the poor countries, development
cannot happen without a strong and judicious intervention of
government; the socio-economic system must be managed to develop.
Closely tied to management's orientation toward action is its
emphasis on results as its ultimate evaluative criterion.
As
Nickell (1976), et al. see it:
Management is planned activity directed toward
the realization of values and the satisfaction
of wants.
It is the accomplishment of ends.
(p. 31)
One of the main limitations of many existing development theories
is that they tend to be long on analysis but short on results.*
A
sound managerial theory of development is more likely to overcome
this limitation because achieving results will be its core element.
Management is all pervasive and applies to all tyPes and sizes
of groups.
Promoting development implies dealing with all kinds and sizes of
social institutions ranging from economic institutions to welfare
agencies.
If the development efforts are to be successful, all the
various institutions have to reach the goals for which they were
established and make a contribution to society.
To do so, they must
be managed.
The all pervasiveness of management and its applicability
to all types of organizations, have both been emphasized by Albanese
(1978) in these words:
*This is to say that the application of these theories does not
bring about the expected results.

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169
[M]anaging occurs in parks, ranches, hospitals,
farms, universities, cities, labor unions,
fraternities, police agencies, churches, airports,
community organizations, and so on.
[It] applies
to any situation in which people are attempting to
achieve goals efficiently and effectively.
Since
that includes every organization, we say that
management occurs in all types of organizations.
(p. 9; emphasis in original text)
Management is universal.
Some writers such as Prasad (1966) and Drucker (1974) have
argued that management is basically an American phenomenon.
Prasad
writes:
The term "management" is culture-bound and
connotes the management philosophies and
practices or even administrative methods as
they evolved and have taken shape in the western
world meaning the North American continent and
some parts of Western Europe.
It is desirable
in the opinion of this writer to use the term
"managerialism" instead with the understanding
that this term refers to managerial practices
such as they can be found in any society.
For
example, such practices may occupy a whole
spectrum all the way from small business manage-
ment of a workshop in an underdeveloped African
nation to high-level corporate management in a
multinational organization such as Unilever.
(p. 27)
The claim that any particular country or region has a monopoly
on management is disputed by many scholars.
It is true that the
particular brand of management that evolved from the Industrial
Revolution to become a profession in its own right, and the formal
study of management as an academic discipline, have largely been
pioneered in the industrialized world with America making perhaps
the biggest contribution.
But the more general art and practice
of management transcend any national boundaries and can be traced
back to the dawn of history.
As Ivancevich, Donnelly, and Gibson
(1980) a?tly point out:
Organizations and opinions about how to manage
them have existed for thousands of years.
Documents from ancient China, Greece, Egypt and
Rome reveal that managers skillfully practiced

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170
their profession.
For example, the writings of
the Chinese author Sun Tzu discussed military
managers.
He wrote in 500 B.C. that "now the
general who wins a battle makes many calculations
in his temple where the battle is fought.
The
general who loses a battle makes few calculations
beforehand."
This early description called
attention to the management planning function
which is so important even today.
The pyramids of ancient Egypt are standing
testimony to the management feat of coordinating
the work of many people.
The Greeks and Romans
developed quasi-factory systems to manufacture
armaments, textiles, and pottery.
These and
other early civilizations had managers apply
their skills in state government, the home, and
religious units.
It was these early beginnings
which gave rise to the importance of management
during and after the industrial revolution.
(p. 9)
The universality* of the art and practice of management cannot
be overemphasized because without it, a managerial theory of socio-
economic development would have very little to offer other than
to advocate the transfer of managerial know-how from the industrialized
countries to the poor countries.
That would be a variant of the
"missing elements" approach to development, with managerial skills
being the elements in short supply in the poor countries.
But if
it is accepted that some form of managerial competence, however
limited, does exist in any social system, then, the problem is not
to transfer from outside but rather to discover from within and
develop what is available.
Any external addition would be welcomed
but only as a supplement that would help improve, change and
strengthen what is available.
As Davies (1965) rightly points out,
Entrepreneurial and managerial abilities are
initially talents and gifts which may be found
everywhere; they are not the monopoly of any
social or economic class nor are they confined
to anyone country.
However, the task of
discovering such abilities in countries with a
*By universality is meant the fact that the phenomenon is
found everywhere, albeit under different forms.
It does not mean
uniformity.

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171
very short commercial and industrial tradition
and where t in the very recent past t virtually
all posts of higher responsibility were reserved
to the foreignert is extremely difficult and
training a lengthy process.
(p. 15)
To recapitulatet there are many reasons why management plays a
very important role in the achievement of developmentt and why a
managerial theory of development would be most useful.
Butt as
stated in Chapter I; the managerial perspective on development has
not progressed beyond recognizing the importance of management in
the development process t and a comprehensive theory remains to be
developed.
This study was undertaken with hopes of contributing to
the development of the needed theory.

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172
APPENDIX B
A NON-EXHAUSTIVE LIST OF I}PORTANT FACTORS IN THE
DEVELOPMENT PROCESS STRESSED BY VARIOUS DEVELOPlffiNT SCHOLARS

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173
1.
Economic factors:
a.
Capital formation:
Nurkse (1953), Lewis (1954), Kindleberger
(1958), Adler (1961), Krishna and Raychaudhuri (1981).
b.
Balanced investment:
Nurkse (1953).
c.
Unbalanced investment:
Hirschman (1958), Scitovsky (1959).
d.
Foreign Exchange:
Krause (1961), Bruno (1972).
e.
International trade:
Frank et al. (1975), Balassa (1978,
1980).
f.
Import substitution.
2.
Technological factors:
a.
Technological progress:
Solow (1957), Denison (1974).
b.
Adoption and diffusion of innovations:
Rogers (1962),
Chan (1981).
c.
Appropriate technology:
Montgomery (1974), Jedlicka (1977).
3.
Psychological factors:
a.
Achievement motivation:
McClelland (1961), ~1cClelland and
Winter (1969).
b.
Moral conditions:
Helleiner (1961).
c.
Motivation to work:
Boeke (1958).
4.
Political factors:
a.
Liberation from imperialism and dependence:
Sunkel (1969),
Rhodes (1970), Rodney (1972).
b.
Popular particulation:
Esman (1978), United Nations (1978),
Cohen and ~oldsmith (1979), van Heck (1979), White (1981).
c.
Self reliance:
Galtung, et al. (1980).
5.
Sociological factors:
a.
Urbanization and urban industrial growth centers:
Perroux
(1955), Friedmann (1966), Hermansen (1969), Southall (1979).
b.
Nuclear family:
Bauer and Yamey (1957), Higgins (1968).
c.
Modernization:
Weiner (1961), Rogers (1971), Ali (1981).
6.
Education:
Schultz (1963), Peaslee
,169), Psacharopoulos (1981),
Said and Tyson (1981).

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174
7.
Mass communications:
Rao (1966), Rogers (1976), Ascroft and
Gleason (1981), Hedebro (1982).
8.
Ecological factors:
Jackson (1979), Sah (1979).
9.
Other factors:
a.
Land reform:
Raup (1963), Clark (1968), Ballance (1981).
b.
Satisfaction of basic human needs:
International Labour
Office (1977), Crosswell (1978), Richards (1981).
c.
Planning:
Haq (1963), Waterston (1965), Lewis (1966),
Kulp (1970), Killick (1976), Seidman (1979), Kent (1981).
d.
Entrepreneurship:
Hoselitz (1952), Walinsky (1962),
Katzin (1964), Hart (1970), Killy (1971), Dresang (1973).
e.
Public administration:
United Nations (1961), Burke (1969),
Weidner (1970), Rothwell (1972), Gould (1979).
f.
Marketing:
Mentzer and Samli (1981).
g.
Socio-economic justice:
Galbraith (1961).

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175
APPENDIX C
SOCIAL AND CULTURAL FACTORS AFFECTING }~AGEMENT

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176
The following is a list (indicative rather than
exhaustive) of the various factors involved:
1.
Group and personal relations and loyalties:
a.
the degree of loyalty and sense of
obligation to a group (ethnic, tribal,
political or religious);
b.
the importance of the family as a social
unit and the degree of kinship to which
a sense of obligation extends;
c.
attitudes to friendship and the obliga-
tions arising from them;
d.
the extent to which working relationships
may be personalised;
e.
the capacity of the individual to stand
alone as opposed to his need to belong to
and act as a member of a group;
f.
the existence of two or more large groups
(ethnic, religious, etc.) liable to
arouse conflicts within an enterprise.
The above factors may be expected to affect owner-
ship, including the willingness to accept financial
aid from outside which might mean the introduction
of non-family members into positions of control.
They may also affect the composition of the top and
senior management groups, organisation structure,
delegation of authority, recruitment and dismissal,
promotion, training, remuneration, and the composi-
tion of working groups.
2.
Attitudes to authority and responsibility:
a.
attitudes to authority including such
aspects as respect for age, uncritical
deference to authority, expectations of
authoritarian behaviour;
b.
attitudes to consultation wit.u those in
authority, e.g. where consultation with
subordinates by those in authority may be
seen as demonstrating ignorance or weakness;
over-eagerness of subordinates to consult
and be consulted.

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177
c.
attitudes to responsibility and
accountability, e.g. refusal to acknow-
ledge responsibility for the actions of
subordinates; reluctance to accept posts
involving responsibility;
d.
attitudes to decision-making, e.g.
passing responsibility for decision-making
to higher authority; collective rather
than individual decision-making;
e.
attitudes to delegation of authority;
willingness or unwillingness to delegate.
These factors may be expected to affect top manage-
ment workloads and efficiency, oreanisation
structure, decision-making, delegation, discipline,
and innovation.
3.
Educational and intellectual traditions:
a.
educational traditions, e.g. the extent
to which education may be seen as the
handing down of knowledge rather than as
a process of intellectual development;
b.
the existence or absence of a scientific
tradition;
c.
attitudes to new ideas an innovation
generally.
These factors may affect development and training,
including teaching materials and methods, innova-
tion, changes in methods, the development of
systems, problem-solving, and mechanisation.
4.
Status and prestige:
a.
the status in the community of industrial
employment, especially in managerial and
technical grades, vis-a-vis other
occupations and professions; this is linked
with the "ideal man" of the society;
b.
the importance of maintaining personal
perstige and of "loss of face";
c.
concepts of privileges and obligations of
wealth and power;

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178
d.
willingness to accept advice, including
that of paid consultants.
The above factors are likely to affect the quality
of people willing to take up management posts,
other than as members of owner groups, all types
of personal relationships including those involving
discipline and the introduction of change, and the
introduction of management consultancy.
5.
Concepts of justice:
e.g. whether seen as
impersonal, as depending on the application
of laws and rules, or as personal and open to
appeal.
This factor is critical in all human
relationships, especially in ~tters of
discipline.
6.
Attitudes to work:
a.
whether work is seen as an evil borne for
the sake of the remuneration, as an
obligation to society or as the satisfac-
tion of a personal urge to create;
b.
whether work is traditionally individual
or collective.
This factor may affect
the organisation of work (in groups or
individually), systems of remuneration,
disciplinary systems, and quality control
systems.
7.
Attitudes to property:
a.
attitudes to· property and possessions,
e.g. whether property is seen as
individual or collective; acquisitiveness
or lack of it;
b.
attitudes to public property or the
property of the enterprise.
This factor may affect marketing management,
remuneration, and the delegation of responsibility
for property, including finance and security
_easures within the enterprise.

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179
8.
Attitudes to women:
a.
attitudes to the placing of women in
positions of authority and responsibility;
b.
status of women vis-a-vis men;
c.
attitudes to the employment of women, e.g.
universally employed, employed only on
traditional work, or employed only before
matrimony.
d.
segregation of women.
This factor may be of great importance both in the
work situation and socially.
It may affect
recruitment, promotion, remuneration, working
conditions, including possible provision for
segregation, organisation of work, and supervision
and discipline.
9.
Attitudes to public authorities:
traditional
attitudes to government, e.g. suspicious,
willing or unwilling to co-operate, leaning
on government for actions within the power
of individual managements, honesty towards
government.
This factor may affect the
effectiveness of management development
programmes in the accounting field and of
consultancy.
It may cause firms to refuse to
recommend actions which would benefit them
because they believe that these are the
government's responsibilities.
The following are among the socio-economic
and political factors that affect the behavior
of managers or workers and may have to be
taken into account by those concerned with
management development and the introduction
of change into organisations:
a.
political stability;
b.
the scope and intensity of political or
ideological conflict in indusL.:
and in
J
the society as a whole;

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180
c.
government policies affecting industry
including monetary, policy, taxation
vis-a-vis both private investment and
state enterprises, and commercial
policies, including those relating to
imports and to export promotion;
d.
the extent of government control of, or
interference with, industry;
e.
the extent of competition in domestic
and foreign markets;
f.
the existence of economic agreements;
g.
the credit system;
h.
the proportion of foreign investment to
investment from domestic sources;
i.
conditions in the raw material market;
I '
j.
the range and medium size of industrial
enterprises;
k.
the capital/labour intensity of processes;
1.
the degree of technological advancement
in the country;
m.
labour market conditions, including
availability of particular skills, the
size and nature of labour surpluses;
geographical and interfirm mobility;
n.
the extent and effectiveness of the social
security system;
o.
the state of development and strength of
workers' and employers' organisations and
their ability to control the actions of
individual members of minority groups;
p.
the extent 00 which the workers and their
representatives play any significant role
in the management of the entreprise.
(lLO, 1966, pp. 175-185)

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181
APPENDIX D
INTERNATIONAL AND NATIONAL ENVIRONMENTAL
FACTORS THAT AFFECT MANAGErfENT

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182
International Environmental Factors
1.
Sociological constraints
a.
National ideology:
The general collective
ideology of a nation, as exemplified by
their writing, speaking, and other mani-
festations of a national point of view.
b.
View toward foreigners:
The general
attitude toward non-nationals, as evidenced
by overt behavior.
c.
Nature and extent of nationalism:
The
manifestation of the collective national-
istic feelings within the country, as
evidenced by actions, writings, and
behavior.
2.
Political-legal constraints
a.
Political ideology:
The political view-
points of existing governments, as
demonstrated by the prevailing pattern
of rule, philosophy of leading political
parties, and similar factors.
b.
Relevant legal rules for foreign business:
The special rules of the games applied
only to foreign owned firms, including
special discriminatory labor and tax
legislation.
c.
International organization and treaty
obligations:
Formal obligations of the
country in terms of military responsi-
bilities, political obligations, copyright,
postal, and patent obligations, and
similar matters.
d.
Power or economic bloc grouping:
Member-
ship in formal and informal political,
military, and economic blocs, such as
communist marxist, or neutralist groups;
explicit and implicit obligations OL
.uch
blocs.
e.
Import-export restrictions:
Formal legal
rules controlling exports and imports,
including tariffs, quotas, export duties,

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183
export restrictions, and similar
matters.
f.
International investment restrictions:
Formal legal and administrative
restrictions on investments by foreigners
within the country.
g.
Profit remission restrictions:
Formal
legal and administrative restrictions on
remittance of profits of local operations
to foreign countries.
h.
Exchange control restrictions:
Formal
legal and admin±strative controls on the
conversion of the local currency to any
or all foreign currencies or gold.
3.
Economic constraints
a.
General balance of payments position:
The general state of the balance of
payments, including deficits or surplusses
on current account, the flows of capital,
both long and short term, new term
international financial obligations, and
tendencies for chronic deficits or
surplusses in the balance of payments.
b.
International trade patterns:
The usual
flows of exports and imports to and from
the country.
Patterns of commodities
and services traded, by countries and
regions.
c.
Membership and obligations in international
financial organizations:
Obligations and
responsibilities of the country toward
international organizations such as the
World Bank and the IMF; rights of the
country as a member of such organizations.
National Environmental Factors
1.
Education
a.
Literacy level:
The percentage of the
total population and those presently
employed in industry who can read, write

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184
and do simple arithmetic calculations, and
the average years of schooling of adults.
b.
Specialized vocational and technical
training and general secondary education:
Extent, types and quality of education and
training of this type not directly under
the control or direction of industrial
enterprises.
The type, quantity arid
quality of persons obtaining such education
or training and the proportion of those
employed in industry with such education
and training.
c.
Higher education:
The percentage of the
total population and those employed in
industry with post-high school education,
plus the types and quality of such
education.
The types of persons obtaining
higher education.
d.
Special management development programs:
The extent and quality of management
development programs which are not run
internally by productive enterprises, and
which are aimed at improving the skills
and abilities of managers and for potential
managers.
The quantity and quality of
managers and potential managers of
different types and levels attending or
having completed such programs.
e.
Attitude toward education:
The general or
dominant cultural attitudes toward educa-
tion and the acquisition of knowledge, in
terms of its presumed desirability.
The
general attitude toward different types of
education.
f.Educational match with the requirements
of industry and manpower utilization:
The extent and degree to which the types
of formal education and training in a
givenc~untry fits the needs of productive
r~terprises and all levels of skill and
acnievement, and the degree to which man-
power utilization is effective.
This is
essentially a summary category; depending
on the type of job involved, different
educational constraints indicated above
would be more important.

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185
2.
Sociological-cultural
a.
View toward industrial managers and
management:
The general or dominant social
attitude toward industrial and business
managers of all sorts, and the ways that
such managers tend to view their managerial
jobs.
b.
View of authority, responsibility and
subordinates:
The Beneral or dominant
cultural attitude toward authority,
responsibility and persons in subordinate
positions and the way that industrial
managers tend to view their authority,
responsibility and their subordinates.
c.
Interorganizational and individual
cooperation:
Extent and degree to which
business enterprises, government agencies,
labor unions, educational institutions
and other relevant organizations cooperate
with each other in ways conducive to
industrial efficiency and general economic
progress.
The degree to which individuals
employed in productive enterprises
cooperate with each other towards this
end.
d.
View toward achievement and work:
The
general or dominant cultural attitude
toward individual or collective achievement
and productive work in industry.
e.
Class structure and individual mobility;
The extent of opportunities for social
class and individual mobility, both
vertical and horizontal, in a given
country, and the means by which it can be
achieved.
f.
View toward wealth, material gain and
self interest:
Whether or not the
acquisition of wealth from different
sources is generally considered social1u
desirable, and the way that persons
employed in industry tend to view material
gain.

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186
g.
View toward scientific method:
The
general social and dominant individual
attitude toward the use of rational,
predictive techniques in solving various
types of business, technical, economic
and social problems.
h.
View toward risk taking:
Whether or not
the taking of various types of personal
collective or rational risks is
generally considered acceptable, as well
as the dominant view toward specific
types of risk taking in business and
industry.
The degree and extent to which
risk taking tends to be a rational process
in a particular country.
i.
View toward change:
The general cultural
attitude toward a social change of any
type which bear directly on industrial
performance in a given country, and the
dominant attitude among persons employed
in industry toward all types of signifi-
cant. changes in enterprises operations.
3.
Political-legal
a.
Relevant legal rules of the game:
Quality, efficiency, and effectiveness
of the legal structure in terms of
general business law, labor law, and
general law relevant to business.
Degree
of enforcement, reliability, etc.
b.
Defense and military policy:
Impact of
defense policy in industrial enterprise
in terms of trading with potential enemies,
purchasing policies, strategic industry
development, labor resources competition,
and similar factors.
c.
Foreign policy:
Impact of policy on
distrail enterprise in terms of trading
restrictions, quotas, tarrifs, customs,
unions, foreign exchange, etc.
d.
Political stability:
Influence on
industrial enterprises of revolutions,
changes in regime, stability or

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187
instability over protracted periods,
etc.
e.
Political organization:
Type of
organization in constitutional terms;
degrees of centralization or decentrali-
zation; degree and extent of red tape,
delays, uncertainty and confusion in
industry-government dealings; pressure
groups and their effectiveness;
political parties and their philosophies,
etc.
f.
Flexibility of law and legal changes:
Degree to which relevant barriers to the
efficient management of industrial
enterpirses can be changed and the time-
liness of such changes; predictability
and certainty of legal actions, etc.
4.
Economic
a.
Basic economic system:
Including such
factors as the overall economic organiza-
tion of the country (i.e., capitalistic,
marxist, mixed), property rights and
similar factors.
b.
Central banking system and monetary
policy:
The organization and operations
of the central banking system, including
the controls over commercial banks, the
ability and willingness to control the
money supply, the effectiveness of
government, policies regarding price
stability, commercial bank reserves,
discounting credit controls, and similar
factors.
c.
Fiscal policy and the state budget:
General policies concerning government
expenditures, their timing, and their
impact; the general level of deficit,
surplus, or balance; total share of
government expenditures in gross
national product.

---

188
d.
Economic stability:
The vulnerability
of the economy to economic fluctuations
of depression and boom, price stability,
and over-all economic growth stability.
e.
Organization of capital markets:
The
existence of such markets as stock and
bond exchanges, their honesty,
effectiveness, and total impact; the size
and role of commercial banking, including
loan policies and availability of credit
to businessmen; the existence of other
capital sources, such as savings and loan
associations, government sponsored credit
agencies, insurance company loan
activities, etc.
f.
Factor endowment:
Relative supply of real
capital and land (agricultural, minerals,
and other raw materials) per capita; size
and general health of the work force.
g.
~mrket size:
Total effective purchasing
power within the country plus relevant
export markets for different branches
of industry making up the total industrial
sector.
h.
Social overhead capital:
Availability and
quality of power supplies, water,
communications systems, transportation,
public warehousing, physical transfer
facilities, housing, etc.
(Richman & Copen,
1972)

---

189
APPENDIX E
THE STUDY SAMPLE, PART A

---

190
Table 9
Countries Excluded from the Sample
Countries
Reasons for Exclusion
l.
Algeria
Located north of the Sahara;
2.
Egypt
considered part of the }tiddle
3.
Libya
East.
4.
Morocco
5.
Tunisia
6.
Cape Verde
Island nations; not part of
7.
Comoros
continental Africa.
8.
Madagascar
9.
Mauritius
10.
Reunion
11.
Sao Tome and Principe
12.
Seychelles
13.
Djibouti
Insufficient data.
14.
Equatorial Guinea
15.
Former Spanish Sahara
Claimed by ~1orocco.
16.
Namibia
Illegally occupied by South
Africa.
17.
South Africa
Atypical case.
Government based
on institutionalized, legally
sanctioned racism and oppression
of the majority of the people.

---

191
APPENDIX F
THE STUDY SAMPLE t PART B

---

192
Table 10
Countries Included in the Sample
Number
Country Name
l.
Angola
2.
Benin
3.
Botswana
4.
Burundi
5.
Cameroon
6.
Central African Republic
7.
Chad
8.
Congo
9.
Ethiopia
10.
Gabon
ll.
Gambia
12.
Ghana
13.
Guinea
14.
Guinea-Bissau
15.
Ivory Coast
16.
Kenya
17.
Lesotho
18.
Liberia
19.
Malawi
20.
Hali
2l.
Mauritania
22.
Mozambique
23.
Niger
24.
Nigeria
25.
Rwanda
26.
Senegal
27.
Sierre Leone
28.
Somalia
29.
Sudan
30.
Swaziland
31 •.
Tanzania
32.
Togo
33.
Uganda
34.
Upper Volta
35.
Zaire
36.
Zambia
37.
Zimbabwe

---

193
APPENDIX G
LIST OF 19 NATIONAL BASIC INDICATORS
FOR WHICH DATA WERE COLLECTED

---

194
1.
Percentage share of central government expenditures on general
public services.
2.
Percentage share of central government expenditures on national
defense.
3.
Percentage of central government expenditures on education.
4.
Percentage share of central government expenditures on health.
5.
Percentage share of central government expenditures on social
security, housing and other social services.
6.
Percentage share of central government expenditures on
economic services.
7.
Gross Domestic Investment, 1960.
8.
Gross Domestic Investment, 1979.
9.
Gross Domestic Product, 1960.
10.
Gross Domestic Product, 1979.
11.
Percentage of labor force in agriculture.
12.
Percentage of labor force in industry.
13.
Percentage of labor force in services.
14.
Percentage share of agriculture in GDP.
15.
Percentage share of industry in GDP.
16.
Percentage share of services in GDP.
17.
National literacy rate.
18.
Physical Quality of Life Index (P~LI).
19.
Per capita GNP.
N.B. The data for all these indicators, e.{cept 7 and 9, are for the
year 1979.
See Chapter IV for dath .ources.

---

195
APPENDIX H
1-
VALUES OF 13 VARIABLES FOR 37 COUNTRIES

---

196
Table 11
Values of 13 Variables for 37 Countries
Country
Variables'"
1.D.
Number
2
3
4
5
6
7
8
9
10
11
12
13
1
'"
'"
'"
'"
'"
'"
1.25
0.70
0.83
'"
0.13
14
440
2
'"
'"
'"
'"
'"
'"
1.07
1.33
0.84
'"
0.22
26
'"
3
20.50
6.00
8.80
28.00
'"
20.50
3.95
0.17
0.24
0.59
0.47
51
720
4
20.60
4.70
6.20
30.90
11.20
16.20
1.53
0.33
0.37
0.90
0.14
30
180
5
16.80
4.80
8.90
29.50
8.30
27.40
2.59
0.44
0.19
0.40
'"
30
560
6
'"
'"
'"
'"
'"
'"
2.38
0.22
0.18
'"
0.20
21
290
7
13.50
4.20
3.00
26.50
25.80
22.40
1.21
0.64
0.42
0.75
0.14
23
110
8
'"
'"
'"
'"
'"
'"
2.69
0.72
0.76
'"
0.19
37
630
9
11.50
5.00
7.40
25.90
'"
43.70
1.74. 0.47
0.33
1.64
0.09
21
130
10
'"
'"
'"
'"
'"
'"
13.17
0.15
0.38
...
0.29
21
3280
11
6.50
6.30
5.10
52.00
'"
25.30
1.72
1.11
0.24
0.54
0.24
22
250
12
18.70
7.50
2.70
28.00
16.00
19.90
0.82
0.95
2.00
0.53
0.02
41
400
13
'"
'"
'"
'"
'"
'"
2.00
0.42
0.21
'"
'"
20
280
14
15.60
13.60
'"
20.20
24.00
23.40
1.72
0.11
0.18
*
'"
14
170
15
35.70
7.80
4.70
31.70
7.20
17.80
3.04
0.17
0.33
1,43
0.32
31
1040
16
18.70
7.50
2.70
28.00
16.00
18.40
2.29
0.48
0.27
0.42
0.22
31
380
17
21.30
5.70
7.10
28.20
'"
34.70
2.42
0.27
0.18
0.35
0.33
52
340
18
11.30
6.10
4.70
29.60
2.70
'"
2.03
0.54
0.38
0.56
0.27
51
500
19
11.80
5.30
4.80
37.60
11.30
21.30
2.00
0.25
0.24
0.44
0.32
31
200
20
21.60
6.20
4.70
12.70
18.60
23.50
2.10
0.45
0.15
2.16
0.16
18
140
21
'"
'"
'"
'"
'"
'"
3.15
0.15
0.25
...
,..
21
320
22
'"
'"
'"
'"
'"
'"
1.52
1.06
0.40
'"
-0.04
27
250
23
23.30
6.00
3.80
19.50
6.10
33.10
2.07
0.09
0.25
2.91
0.31
16
270
24
9.60
2.20
6.20
45.80
17.90
13.50
2.40
0.40
0.82
0.34
0.32
28
670
25
18.80
6.30
2.90
29.70
12.40
20.40
2.17
0.10
0.19
0.63
0.21
32
200
26
19.00
6.00
9.30
13.80
10.70
24.10
2.62
0.42
0.30
1.90
0.23
23
430
27
16.00
7.60
6.40
24.80
7.80
26.30
1.83
0.83
0.37
1.07
'"
31
250
28
14.00
6.10
7.50
25.60
20.10
26.80
1.40
0.73
0.28
2.80
0.17
34
'"
29
5.20
1.70
5.30
39.30
13.60
7.40
2.05
0.77
0.24
0.26
0.08
32
370
30
21.40
6.50
4.90
32.30
6.50
27.00
'"
'"
'"
0.48
0.30
43
650
31
12.50
5.90
3.90
45.60
10.50
18.00
1.54
0.46
0.33
0.21
0.22
50
260
32
13.70
5.80
10.90
15.90
9.60
22.30
2.72
0.65
0.33
0.53
0.43
27
350
33
'"
'"
'"
'"
'"
'"
1.51
0.86
0.29
'"
0.04
42
290
34
15.60
5.50
2.50
29.40
21.89
22.30
2.18
0.60
0.12
1.73
0.28
17
180
35
15.10
4.00
4.90
17.90
10.80
18.40
2.27
0.54
0.28
0.38
0.09
32
260
36
16.80
7.70
4.00
'"
'"
32.70
4.53
0.27
0.48
0.31
0.20
41
500
37
'"
'"
'"
'"
'"
'"
5.00
0.38
0.51
'"
0.13
'" 470
"'See Chapter IV for a full description of each variable.
An asterisk in the table
signifies a missing value.

---

197
APPENDIX I
PEARSON CORRELATION COEFFICIENTS

---

Table 12
Correlation Hatrix (Data with Group Hedians for l!issing Values)
- -
- -
Variables
1
2
3
4
5
6
7
8
9
10
11
12
13
1
2
0.46903
3
-0.09220
-0.16577
4
-0.49622
-0.47692
-0.14794
5
-0.36972
-0.04971
-0.2384'7
0.16670
6
0.24806
0.39984
0.13812
-0.43982
-0.21495
7
-0.06104
-0.22043
0.12388
0.20811
-0.00011
-0.16491
8
-0.39309
-0.17788
0.01844
0.16014
0.14031
-0.13811
-0.38604
9
-0.03474
-0.09137
-0.17299
0.21291
0.04182
-0.19141
-0.12025
0.39043
10
0.36802
0.18491
0.03606
-0.50585
0.05376
0.43468
-0.18140
-0.10243
-0.24424
11
0.11909
-0.42106
0.15751
0.13583
-0.28834
0.03737
0.22701
-0.18431
-0.09306
0.06710
12
0.13996
0.02456
0.03446
0.13033
-0.49888
-0.00568
-0.01955
0.00845
0.19793
-0.38645
0.21568
13
-0.03796
-0.29410
0.13189
0.36106
-0.00661
-0.29646
0.91308
-0.25409
0.08632
-0.22038
0.21144
0.01121
N = 37
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---

199
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222
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.
:.~~
BDukary 5AV~UGO
NCTE UE i ~~: ~NT~TION DL THl5E
-
1
TITHE
I--------------------
THEORI£. DU ~"ANAGE:ME~a ET vE. vLlCPH,:.t'iENT SC:";10-CCC:(\\;Cii',;Il UE
j
•
•
•
MOUElE EXF~ORATOIRE FCUR L'ETUDE DU DEVELOPFEMENT DhNS
••
•
UNE H.RSf ECTIVI:. tv1.~\\CHOU11\\II..GE.R IilLE •
•
Th~6e ds rh. D., UnivEr~it~ de IIIo~a, U.5.A., 19L3 (~36
dont 12 peges de prelimin~irE5
; 12 taLleaux ; 5 figures ; 9 docu-
ments anne}':ES ; )55 el(!",ente de blbliographie).
t~~_~_.:_RES_Ut;~_ _J
Une des plus r~cent~B approches de le probl~~Gti~ue Ju
soclo-~cGnomlque Est le r~rspFctive mEnag~riBle Dui consid~re le
(ou gEftion) comme le fccteur le rlue c~terrninant de 16 r6UfEite dlun
ses efforts de d~vEloppement. Toutefols, cette epproche nul ne mcn~ue
t~r~t nfa pas tt6 dlune grande utllit~ rarcE qulElle nle pes su progrecser
au-dEl~ ~e l~ r~ccnnEie8Ence de 1 1 lmportance cruciale de le gEstion pt ses
d~fenseure nlont pes pu d~v~lopper une 50lide th'orie rour ~uider lE5 rech~rc
C'est pour 8lder ~ combler cette l~cune tr6ori~ue que nou~ avens
entre~rls de .:ievE:lepper dene. le cadre de cette thE()e un mcde!le 'omprehen~1f
1 1 etude du developr,err.ent deTiE une rerEpE:ctive menag6riale. Le ;'108818 est con~u
don~ le but d' offrir (lW, chcrcheurs un cutil spiDH:wclegi::ue i'cur int&grer lee
connaiEsances e:·,istfmteE f',llr lrT liens :-'ntrE le r;;8n8~:t,:amt et le t16velop~.e[';1ent·
::ccnomir:tue dlun!: part, et L:lr;utrr:~ r:'~rtt pcur orienter leE r[ch(~rches futures
event pour olJjectif l'~l(,Lrlrc::ti[1n Cl Iur,t: veri t:- LIe thf-'orie lTiBnC'l,/~ricle du
d:~veloppement.

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.J
- 2 -
un cadre th!.:orir:ue IJE6UCfJUr r::!us comr'let c:t ,deux udn(lte i' la m,tllre du rro-
Richman/Farmer (~) I Ne~ ui,.;,i/Prr)sr=.;G (~) et. Koontz (:3). r~o·,rc;crrr.uli:.:tion Est
plus complE te flBrce c:u:.::, nOIl E'IQUle;,lent, E:lle int~ ~;rc 1 1t rf intiel C:ES 61icmente
identifies par ler. rU'i;Furs prC:cit88 ct Li'eutrr;s chE:rcheurs, If.Ei:: £~ncore elle
prend comme unlteE d'8n21y~e dL LeEE', des §ccno~1es nstion2lcE 8101'[ ~ue lee
uni teB C;' .:nalyse dE;: ~utr(~r· .. !(1l.1l,lCE ~(!nt surtout l~eE entr priE,es.
t.:n cs qui cunccrnr:.: J...: i / thod[:lo~.:lie, l' or1g1na11 te dr~ notre C/;iiic,r:::he
r~slde Burtout dens le chci~ 0'unc epproche plur1diEclplin8irE ~E nuture
E:;X~lorBto1re et heuristic,ue C':Ul r.cnvient pLrfci;:ement r:. la ncturc et c.ux
objEctifE LE 1 t~~tude et n.li j'~eri;et L;r:: decr.uvr1er ler impor'i."ntef; vuri6tJles
int.§sr/~es dam~ le "ToLle.
~,.,I.'
I
ARTli,;LiLt,TlLif\\i Dt:. U. T~E.SE
,
t_ _- - - '
Le these Le cOmpOE'E: C:' un d,e",l trE intIoC:uctif, l~E: l'U;- trc char i tres
centraux et [i'un chcpitrr: final l'E cLnclus1on, !Seit En tout six crl::.:pitres.
Chupitr~ I : Introduction
•
•
••
Dans ce chEp1trs ert ~nonc' le rrobl0rne centrEl de l'~tude. 11 s'tJuit
ie1 dE soulign~r l'importEnce du dtveloppement Et de feire un ra~idE tour
d'horizon du manaGEment co~;p~re qui vient ~clcirEr le siCnificLtion profcnde
de l'8tude. La these cEntralE r~st b~tle sur !E) ntceesi te d' EGseoir lee :. 2St!S
th20riques dE: l' cpproche li1£in2Q ~:r18le c!8 l' f. tude du dr velopperlent. ee cha!·i tre
et ses liml tt6, sins1 r;ue 18 d!~1'j ni ticn L:E s rrincir- E:UX cr~nct:iJtfJ et le plan

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- 3 -
CBB~1tre 11 : Revue de le l1tt~reture
•
•
de recherche sur le ~6veloppement
. .
. -
Ge cflapi th2 ~~ b.',' VErr: um; revue 2LSt' Z ~:pJ,: I'ofondie >:[,8 ~cri ts l;,ur le
developpEmmt eX8mine If:S hndcnces I L.Fcurl::.S dEms l' ~vl~lution L:L'r: iLLes Eur le
developpeme:nt depuis la ~E~COnL;(' liucrre ,on, .. i;:olE tl'ut 8n ,-n;:;ly~·,.nt let, point:::
de vue des cherch urs fJur lrL' f't:cteurs d6tt·rninants t:!u d€:velor:rement •
.9hapi tl:;:' Ill.: Revue dE: la 11 tt2EaturE....._
de recherche sur le
msn8~ement
•
Dans ce ch::J~itre ~.:cnt revur. et E:nEilvs2r. leE recEnts trav8UX en mJns-
Ql::ment compare pr2u-,'nte.nt un int~r~t ;:,oLlr lE: ::.roblElTie centrr:l r:E hi these.
Chapitre IV : Conc8Etion rt M~thodvloQie 0e l'{tude
Ce ch8~itre ; r~!Ente 18 ~~thodologie £dDrt~e pour (t~diEr le problLme
pas' tout En CXrOs8nt lc~ crn[i~'rrtions d'crdr8 frrticue ~~i crlt d~term1n6 le
choix ue la m&thode d'Gn~roche. Ce ch~- itre f~it 8U2Ei ~t8t J~s sources des
1!
~
donnees recuel11ie~, de:' ;'8\\'E' tnr-lus i..i3nr: lltchantillon de ll!"·tude, de la
sflectlon Et la ~~fure ~CE: ~~ri(bles 2t dES rroc§dur~s stGti~tiq~C8 emplov6es
, ,
t;
,
Chacitre V : R~sultBts et discussion
CB chapi tre ccntiEnt e:n
ubr tence une dE::t crirticJn cetC:.iillee du r:~r<dile
d§velopp~ d2n~ l'~tude, une 2n21y~~ rtetiLtiqU2 dE donn~es ~lour illustrer l'~tude
deE liens Entre le~ !Jrincl~cles voricjlea du ffiod~le, une discussiun d8S r6sLltats
obtenus et une fcmTIulatirm (1' hYPllthesef.: oe trsv3il ~our h~s rcct:erChE!f' fLJturcs.
Ces hypothr.[:es sont ::,r6~>r.llteE!L ,-('us fGrlil8 r:e [.:ropositlomc scicntifh:ues i'OiT!ent
,
commentees"
\\
I.~

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, ,J....
- 4 -
Chopitre VI
CDnclusion
Dans ce dErnier chE, 11 trE: c!ui conclut l~ these, i1 est !>ropos{ un
r~capitulatlf de 1'~tude ~uivi d'une r~0v~1uation d~s 11mite~ et des :.ug~eGtions
et rE:cOI1'II1:EndE tions ;::-[iur ler r2cherchE'5 u1 t:riEUreEl.
•
; t.
-
(1)
8.. N. Richman et R. Farmer. Comp;;,rotive mfln2gen:ent and econOlr:ic progresr.
•
•
Homewood, I111noi~ : RichErd D. Irwin, 1965, p~ 35
(2)
A. r.. NEgandhi et S. L. Pr268d. Comparative mEmryeHient. New Yorl<
App1eton-Century-Crofts, ~S?1, p. 23
(3)
H. Koontz. A mod8! for ~nalyzing the univer~a1ity of mEnEge~ent. In H. Koontz
. et C. Cl 'Oonne11, eds. t-1c:ncQr?IT,ent : 8 book of rE6dings. New York : NcGrow-
Hill, 1976, pp C1-S0
Ij,
_.0
\\
j
1

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