Management according to Norwegian theory and practice

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1 Management according to Norwegian theory and practice Introductory seminar Syktyvkar, May 2006

2 Organisational archetypes strong organism Efficiency soft External linkages Machine Innovation/ flexibility weak Internal linkages hard Asbjørn Røsseth, Norske Shell

3 Traditional organisations Steap Flat Decentralized structure - delegation of power and responsibility Centralized hierarchy - bureaucracy and centralized power and responsibility

4 Training/ competence Defined framework conditions Power and authority Information - participation Flat structure - conditions Managers must give other persons possibility to take responsibility/initiative High degree of delegation to persons/ groups High degree of maturity initiative and mutual obligations between managers and employees

5 Norwegian organisational structure Simple and informal report system De-centralized Flat structure High degree of delegation of tasks and responsibility High degree of transparency High degree of accountability

6 Organisational models in project management Restricted authority (line/basis organisation) Good for organisations with only a few professional oriented projects and good interprofessional co-operation conditions

7 Organisational models in project management Restricted authority (line/basis organisation) Advantages: Simple Good way to organise internal project activities if projects are few Doesn t break with basis organisation s traditional pattern Drawbacks: Problematic when projects are mixed with the rest of line`s tasks Can lead to a fight on scarce resources Complex communication both horisontally and vertically Professional box mentality suboptimalisation Suits organisations with only a few professional oriented projects and good interprofessional co-operation conditions Often leads to: bureaucracy inefficiency/bad resource utilization responsibility pulverization low level of unformal contact between project and its environment

8 Organisational models in project management Shared/divided authority (matrix organisation) Suits organisations which carry out a large number of small project in addition to the core business

9 Organisational models in project management Shared/divided authority (matrix organisation) Suits organisations - which carry out a large number of small project in addition to the core business Advantages: Good utilization of capacity Good interprofessional participation Drawbacks: Complex management conditions ( many superiors ) Excess consumption of co-workers Often leads to: Improved decision and responsibility structure Improved communication through shorter communication lines A more flexible organisation Interprofessional enrichment Improved resource utilization

10 Organisational models in project management Full autonomy (separate organisation) Suits organisations which have a small number of large projects with professional connection to separate departments

11 Organisational models in project management Advantages: Good possibility to carry out the projects out of own premises Project participants can devote themselves to the project tasks Project management reports directly to organisation`s top management - contributes to quick and effective solutions Effective accomplishment of difficult tasks Softening of hierarchal structure Suits organisations - which have a small number of large projects with professional connection to separate departments Drawbacks: Projects tend to live their own lives from basis organisation Problematic to terminate such projects continue beyond planned limits isolation

12 Norwegian managers considered to be quite democratic usually inform and include the employees in crucial and important decisions/ challenges/ plans of the company will usually ask for the employees opinion usually team-work between managers & employees conduct employee conversation with their sub-ordinates 1-2 times a year socialize (associate) with employees interact with subordinates/ employees quite informally delegate responsibility and tasks

13 Delegation, because: release/ free resources faster decisions higher degree of flexibility extension of job content create higher sense of responsibility IN THE LONGER TERM EMPOWERMENT

14 Delegation of tasks and responsibility, that s not for me : I want to do it myself Others will fail/ not succeed It has to be done immediately I will have influence on most things I will show that I work hard I want it to function simply Others say that I have/ ought to do it I do not want to bother/ worry others

15 Reasons for insufficient delegation of tasks and responsibility unclear goals and strategies low degree of openness/ transparency low degree of trust low degree of safety/ confidence afraid of losing control defending his position don t dare to correct, direct/ guide Mr. Know-it-all specialist

16 Delegation of tasks and responsibility presupposes accepted goals clear rules personal contact information and co-operation follow-up support and honesty feedback

17 What is management? To solve tasks and problems by the use of necessary resources in time?

18 Norwegian employees work/ tasks based on freedom & responsibility usually not afraid to express their opinions expected to: - take initiative - propose ideas/solutions - work independently i.e. not expected to wait for directions expect to be informed about enterprise s development may criticize their superiors, but then in a constructive way

19 Intercultural management in decision-making Masculine style of management countries: USA, France, Great Britain, Russia? Top Feminine style of management countries: Scandinavian countries, Netherlands Top Rapid process Top manager makes decisions on his own Slow process Decisions based on compromises Consensus important Org. Org. Implementation of decisions slow Implementation of decisions rapid Goal Goal

20 Decision-making Top manager focus on most important decisions the rest is delegated to subordinates - also important problems/ challenges Managers at different levels make own decisions Subordinate managers try to solve all possible/ necessary tasks and problems while the top manager is absent It s better to ask for forgiveness than ask for permission Managers include professional employees in the decision-making process

21 Gender and management % % of the top management positions in NHOs statistics held by women. 11,1% in other management positions 20,6% of recruitment positions 6,4 % of board members Top managers other managers recruitment positions Kilde: NHOs funksjonærstatistikk

22 Development of corporate culture Career formula survey rating of Russian and Western enterprises by Russian students Important when choosing place of work: Wages/economical benefits not at first place, but possibilities of self-realization Just as important: Also important: - type of business -corporate values -corporate culture - development possibilities - internal communication - social security -education - fringe benefits - happenings

23 Development of corporate culture Corporate culture - not an abstract aspect - important in order to achieve results on the bottom line Tendencies in Russia nowadays: - increase of OD and HR departments - noticeable development of corporate responsibility - rapid development in business transparency

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25 Russians: Well prepared: - already worked out different proposals and solutions (Plan B, C ) -evaluated and analysed every detail Expects that the other party: -has studied the documentation thoroughly -is ready to make decisions right away In negotiations and meetings - cultural conflict? Scandinavians: Not concrete - procedure case handling - like to discuss the content and terms of the agreement/offer thoroughly - like to reach mutual understanding and solutions during the process Expects discussions and negotiations with the Russian party Considers the Scandinavian party s reluctance unserious, expects actions: -Shall we do business or not?! -Agreement on prices and conditions or not?! Does not understand why the Russians are in such a hurry unserious attitude

26 Group work Please, discuss the following issues: 1. Discuss how your organisation is organised. What is your opinion about the organisational structure s a) advantages? b) disadvantages? c) what would you like to improve and/ or change? 2. Discuss the management of your organisation in terms of decisionmaking and emphasize: a) what is functioning well? b) what is functioning badly? c) what can/ should be improved/ changed and how?

27 Group work 3 Discuss the degree of delegation of tasks and responsibilities in your organisation. 4 Information flow/distribution in your organisation: a) What kind of information about the company and its performance/ framework condition does the top management/ department management share with employees? In what ways is the information distributed? b) If the information flow in your organisation is insufficient: What kind of actions/ changes would you propose in order to improve the situation?

28 Group work 5. Motivation a) Why do you think motivation in an organisation is important? b) Who should motivate? c) How can management motivate their department/ employees etc. d) How do you think motivation can influence on the results of your organisation?