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Management Styles are Culture-Dependent
From a global perspective the Nordic countries are
very similar; and they do share many of the same
fundamental values. A preference for similar
management styles across the region, however, does
not mean that each of the countries should be
interpreted in the exact same way. Fine nuances,
subtle as they may be, are often disregarded and
therefore end up creating culture clashes and
problems. Both domestic firms and firms investing in
the region can benefit from knowing the cultural
sensitivities that distinguish the Nordic countries;
disregarding them may prove costly.
This document will help you to get insight into key
management issues across the Nordic countries. The
four countries are approached one by one and crucial
elements highlighted.
The cultural differences amongst the four countries
can take on different meanings depending on which
culture you yourself are from. Your own culture
defines how you look at others. Being Swedish gives a
different view of the Danes than being German. In
this document the Nordic cultures are approached
from a non-Nordic perspective.
Organization
In the Nordic countries, corporate structures tend to
be decentralized with top-light management
hierarchies, although Finnish organizations are a little
less egalitarian than the other Nordic organizations.
The Nordic managers have been instrumental in the
development of the concept of bottom-up
management. Managers go to great length to
delegate responsibility and to share power, i.e.
decision-making with all layers of the hierarchy, and
on their side subordinates expect to be heard and to
be involved in decisions, which concern their work.
Leadership
The leadership style predominant in the Nordic
countries is participative management. The most
important quality for Nordic managers is to obtain
results in co-operation with employees; a people
orientation. Nordic managers rely more on
subordinates and peers and less on formal rules and
superiors compared to managers from other
countries, however, important contrasts are found
between the Nordic countries, and the level of
participation differs among the four Nordic countries.
The Danish management style is ‘bottom-up and
informal’. Danish managers rely on own experiences
and subordinates to a very high degree, while they
are less dependent on their superiors and rely less on
formal rules. Danish managers expect subordinates
to challenge them to a higher degree than is the case
in the other Nordic countries and subordinates will
also do so.
The Finnish management style is characterized by
‘expertise in a culture of equality’. Finnish managers
rely more own epertise and experiences and to a
somewhat lesser extent on subordinates.
Participative management in Finland is influenced by
structural constraints and a concern for quality.
Finnish managers rely more on rules compared to
their Nordic counterparts, however, rules which are
imposed by others are used as source of guidance less
strongly.
The Norwegian management style is ‘bottom-up,
collegial’. Norwegian managers rely on own
experiences and subordinates and co-workers (team-
work) to a very high degree. Norwegian managers
are also concerned about doing what is judged
decent and correct by the broader community. In
Norway, there is also a moderately high reliance on
rules.
Leadership in the Nordic Countries Denmark, Finland, Norway & SwedenDenmark, Finland, Norway & SwedenDenmark, Finland, Norway & SwedenDenmark, Finland, Norway & Sweden
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Participative management in Sweden is strongly
influenced by equality and fairness. The Swedish
management style is characterized by ‘conformity in
a culture of eqality’. Swedes place strong reliance on
everybody following the same consensus-driven
informal rules and procedures, and are moderately
reliant on own experiences. The Swedish managers
are also concerned about doing what is judged
decent and correct by the broader community.
Decision-Making
The Nordic decision-making style is consensual,
participative, and inclusive. There is a high degree of
interdependence and trust, and communication is
open and flows in all directions. Decision-making is
done by looking for shared interest of all stakeholders
and to create consensus in order obtain the broadest
possible consent in connection with important
decisions. Basically, the same form for pragmatic,
decision-oriented rationality with a high degree of
objectivity applies to all Nordic countries.
The communicative Danes are more individualistic
and tend to approach things in a relatively
independent and flexible way, changing their minds
along the way during the decision-making process.
The Danish managers are result and goal-oriented
and they can act swiftly and are able to adapt quickly.
The role of the Danish leader is to cut things short
when the employees have had a chance to argue for
their opinion. Subordinates need to be heard, but one
does not need to have reached consensus in the same
way as the Swedes would need to reach consensus.
The silent Finns are rather dynamic achievers and
decision-makers, who approach decision-making
pragmatically and with a purpose. When faced with a
decision, Finnish managers reserve time to think
about the issue, gather supporting and expertise
information, and discuss the issue within the
organization. Finns prefer to rely on their ‘gut’ feeling
rather than on more time-consuming political
processes. The involvement of subordinates mainly
takes the form of consultative discussions and there
is less striving for consensus than in the other Nordic
countries. Finnish leaders are slighty more decisive
than their Nordic counterparts. Finns will sometimes
be slow in making up their minds because they want
to have a full overview. Once their minds are made
up, however, they are unlikely to change them.
In Norway, there is a stronger focus on group-
decisions, and there is a tradition for sitting down
with the subordinates, agree upon what is to be
done, and then to implement it. However, even if
there is a high degree of involvement of co-workers in
leadership, it is generally acceptable for the leader to
make decisions. The Norwegians are analytical, focus
on details, and have a relatively strong need for
control of resources. Nevertheless, they are also
result-oriented and good at simplifying things. When
it looks like a decision has been made, however, they
might actually very well keep on discussing. Once the
final decision has been made, they prefer to act
quickly.
Swedish managerial decisions are strongly influenced
by involvement. In Sweden, consensus is extremely
important and Swedish managers will have a more
patient and understanding attitude towards their
subordinates and will spend a lot of time reaching
agreement and building group consensus.
Communicating intensively with as many different
parties as possible is assumed to be an efficient way
to reach good decisions. The Swedes are very
thorough in their planning and often evaluate
everything before making their minds up. The
decision itself emerges from the consultation process.
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Conclusion
As can be seen from the above, Nordic leadership is
an interactive and dynamic process; involving and
including subordinates and co-workers to a very high
degree. At the same time, however, cultural
differences contribute to subtle, yet significant
differences in behavior. Successfully navigating the
Nordic countries requires an understanding of the
idiosyncratic cultural differences found between
Denmark, Finland, Norway, and Sweden.
This document is not a complete overview of the
many cultural differences and similarities amongst
the Nordic countries, it should more be seen as key
insight points. Neither does it give an answer to
where these differences or similarities come from. For
a thorough understanding of the deeper lying values
driving the people in the Nordic region, a useful tool
is the 5-D Model of professor Geert Hofstede. For a
more elaborative view on the cultural challenges and
opportunities between the Nordic countries, efficient
strategies to manage the cultural differences, and an
introduction to the 5-D Model, please contact:
Pernilla Roersoe, Managing Director, Senior
Consultant, Copenhagen Office, itim Group
References
itim International - Country Briefings
itim International - Culture Data-base
Hofstede, G. (2001), ‘Cultures Consequences –
Comparing Values, Behaviors, Institutions and
Organizations Across Nations’, Sage, United Kingdom
Holt Larsen, H. and Bruun de Neergard, U. (2007),
‘Nordic Lights - A research project on Nordic
leadership and leadership in the Nordic countries’,
København
Lewis, R. D. (2006), ‘When Cultures Collide – Leading
Across Cultures’, Nicholas Brealey International, USA
Smith, P. B. et al., ‘In search of Nordic Management
Styles’, Scandinavian Journal of Management, 19
(2003) 491-507
Szabo, E. (2007), ‘Participative Management and
Culture – A Qualitative and Integrative Study in Five
European Countries’, Peter Lang, Frankfurt am Main
Weiss, K. (2006), ’Når Vikinger Slås - hvorfor
skandinaviske virksomheder har det så svært med
hinanden’, Jyllands-Postens Forlag, København
Pernilla Roersoe, M. Sc. in International Business
Srategy (IBS) has been with itim International
since 2007.
Working with intercultural management from
an operational and a strategic perspective, she
assists companies in succesfully operating and
maneuvering in a globalized world.