Learning Organizations & Decision
Making Styles of Managers:
Russian and Finnish Firms
Candidate Student:
Maxim Shvetsov
Professor Alexander Settles
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?
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)?
Learning Organization
• Learning Organization theory integrates
techniques related to:
– systems thinking
– personal mastery
– mental models
– building shared vision
– team learning
What is a Learning Organization?
• Psychological safety to implement these
techniques
• Allow for the appreciation of differences
• Openness to new ideas
Learning Organization
Building Blocks
1. A supportive learning environment
2. Concrete learning processes and
practices
3. Leadership that reinforces learning
A Supportive Learning Environment
•
•
•
•
Psychological safety
Appreciation of differences
Openness to new ideas
Time for reflection
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)
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
Limitations of Implementing a
Learning Organization Framework
• Leadership alone is insufficient
• Organizations are not monolithic
• Comparative performance is the critical
scorecard
• Learning is multidimensional
Decision Making Styles
• Rowe Framework on Decision Styles.
– Directive
– Analytic
– Conceptual
– Behavioral
• Tool for analysis - Decision Style Inventory
(DSI)
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
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
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.
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
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