Learning Organizations & Decision Making Styles of Managers: Russian and Finnish Firms

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 • A supportive learning environment • Concrete learning processes and practices • 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 • Outline the Theory related to LO, Creation of Virtual or Networked Organization, and the role of decision making styles on network creation • Gather data on the application (or lack of application) LO model in the Finnish and Russian market • 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 • Explain the affects of business culture and decision making process on the development of LOs