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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

pernilla@itim.org

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.