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Learning Organizations & Decision Making Styles of Managers: Russian and Finnish Firms Candidate Student: Maxim Shvetsov Professor Alexander Settles.

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Presentation on theme: "Learning Organizations & Decision Making Styles of Managers: Russian and Finnish Firms Candidate Student: Maxim Shvetsov Professor Alexander Settles."— Presentation transcript:

1 Learning Organizations & Decision Making Styles of Managers: Russian and Finnish Firms Candidate Student: Maxim Shvetsov Professor Alexander Settles

2 Research Theme and Problem Statement Learning organization –Are Finnish firms organized around learning organization principles? –What are the expectations of Finnish firms for their partners, suppliers, customers, etc. to be learning organizations? –Are Russian firms in the building industry adopting learning organization techniques? –Does a learning organization framework add value to such firms?

3 Research Theme and Problem Statement Decision Making Styles –What are the primary decision making styles in Finnish (and Russian) firms? –What potential conflicts could exist in decision making when Finnish firm enter the Russian market place? –How do Finnish decision makers fit into the Decision Style Inventory (DSI) (Rowe)?

4 Learning Organization Learning Organization theory integrates techniques related to: –systems thinking –personal mastery –mental models –building shared vision –team learning

5 What is a Learning Organization? Psychological safety to implement these techniques Allow for the appreciation of differences Openness to new ideas

6 Learning Organization Building Blocks 1.A supportive learning environment 2.Concrete learning processes and practices 3.Leadership that reinforces learning

7 A Supportive Learning Environment Psychological safety Appreciation of differences Openness to new ideas Time for reflection

8 Concrete learning processes and practices Learning processes involve the generation, collection, interpretation, and dissemination of information Knowledge must be shared in systematic and clearly defined ways –Knowledge sharing can take place among individuals, groups, or whole organizations –Knowledge can move laterally or vertically within a firm. –Knowledge sharing can be externally oriented (networked)

9 Leadership that reinforces learning Organizational learning is strongly influenced by the behavior of leaders If leaders signal the importance of spending time on problem identification, knowledge transfer, and reflective post-audits, these activities are likely to flourish Employees feel emboldened to offer new ideas and options In Russian business culture leadership is crucial for all decisions including creating a learning organization

10 Limitations of Implementing a Learning Organization Framework Leadership alone is insufficient Organizations are not monolithic Comparative performance is the critical scorecard Learning is multidimensional

11 Decision Making Styles Rowe Framework on Decision Styles. –Directive –Analytic –Conceptual –Behavioral Tool for analysis - Decision Style Inventory (DSI)

12 Decision Style Inventory (Mason, Rowe and Dickel) Every person has a characteristic way of making decisions Inventory questionnaire to identify four major styles –analytical, conceptual, directive, behavioral Based upon the DSI questionnaire outcome, style can be placed into four preference ranges –least preferred, backup, dominant, very dominant

13 Decision Making Styles Every person has a characteristic way of making decisions –Analytical: capacity for abstract; logical thinking; high tolerance for ambiguity; searches out and verifies large amounts of data; identifies and questions underlying assumptions. –Conceptual: creative capacity; broad “systems thinkers”; value quality; share values with colleagues; high need for achievement; requires praise and constructive feedback; needs freedom

14 Decision Making Styles –Behavioral: personal; focus on individual; characterized as supportive and participative; people oriented; good listeners; prefer “soft” data to “hard” data. –Directive: focus on short-term results; appetite for control; efficiency oriented; facts are reality; communicate through numbers and facts; seek to establish structure in work.

15 Research Proposal Modify existing research tools for use in a survey of Finnish and Russian firms in the building industry to determine current state of companies ability to integrate learning organization techniques into business practices Explain current Russian business practices and cultural framework Explain methods of decision making in Finnish and Russian companies Determine the relationship between Russian company cultural and learning organization theory

16 Research Outline – next steps 1.Outline the Theory related to LO, Creation of Virtual or Networked Organization, and the role of decision making styles on network creation 2.Gather data on the application (or lack of application) LO model in the Finnish and Russian market 3.Conduct a survey of Finnish firms to determine their LO practices – utilize a modified version Garvin, Edmondson, and Francesca (2008) survey instrument and Decision Style Inventory by Mason, Rowe and Dickel 4.Explain the affects of business culture and decision making process on the development of LOs


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