The Scandinavian management style has in the age of the knowledge worker grown in popularity. Companies worldwide are looking to Scandinavia to understand how these countries have been able to provide global market insight, innovation, creativity, and growth. The interest in the Scandinavian Management Model is also supported by how these countries have built a fantastic welfare system of free education and health services, while also supporting a good work-life balance. Scandinavians work less than most comparable nations, but still have world leading productivity and growth. In a recent study the Scandinavian countries were all on the Top8 list of the world happiest countries - Reference article
The Scandinavian Management Model and the inherited culture of the Scandinavian countries is a big part of the answer to why this model works to support creativity, innovation and growth. Pragmatism, consensus, and "down-to-earth” mentality has allowed the Scandinavians to find a way, where equality and socialism are combined with freedom and market forces - to create a truly mixed economy.
The reason why many are looking to the Scandinavian Management style is because of its belief that it better addresses the challenges companies and organizations face in a knowledge driven world. The world is constantly becoming smaller and globalization increases, knowledgeable-workers are everywhere, and we now, more than ever, work more collaboratively with the use of new efficiency tools and the value these tools provide in ability to connect with best practices and new competences.
The traits for a Scandinavian management style was defined in an article in MandagMorgen, 22 June 2004:
- Respect for the individual
- A holistic, humanistic and value based approach with multiple stakeholder focus
- Flat and non-bureaucratic organizations with distributed responsibility and accountability – an empowering and enabling environment which stimulates creativity, innovation and collaboration
- Trust, care and concern as key values
The Scandinavian management style is network-oriented and motivating, where managers empower and have trust in the employee’s ability to deliver the necessary value and results. In Scandinavia, companies manage with goals and values rather than control and strict chains of command.
Scandinavian management is supported by a democratic process and management style. Democratic managers are results-oriented, and enter into discussions to achieve consensus. This consensus model is implemented differently among the Scandinavian countries, and need to be balanced to achieve progress. The Danish model has proven to be the best to move from pure consensus to taking a decision that is in the best interest to the value of most and company interest, probably because it is considered to be a bit more direct than the pure consensus driven Swedish model for instance.
Democratic managers, who are both relation-oriented and goal-oriented, are better at creating productivity, employee happiness, and collegiality among the staff. They create greater staff efficiency, more risk-taking, and a feeling of accomplishment. The successful manager succeeds to communicate to their employees that they are important to the company, that their efforts are valued and meaningful. This is core to the Scandinavian culture where people are taught to think independently and critically, and where employees often have developed their professional skills based on their personal interest. That gives a high level of competence and what has proven to be some of the world's most motivated and creative workers.
A flat management structure opens and strengthen the flow of ideas through the organization. Good ideas can be created anywhere in an organization, and Scandinavian employees are encouraged to bring improvements and ideas to their managers. The strongly relation-oriented management style strengthens openness and trust in the company, which again helps promote well-being and motivation, who are central aspects to support creativity.
A good Scandinavian manager combines the ability to be goal-oriented, relation-oriented as well as having a change and development-oriented behavior. The manager thinks strategically long term, has an eye for the employees' personal development, with a foundation built upon relationships. Scandinavian culture helps promote qualities to enable successful managers.
When discussed, Scandinavian countries are considered to be flat, but in reality Scandinavian management is more about being relation-oriented. In countries where there is a strong culture for hierarchical structures, it is hard to create a flat structure as the culture is ingrained with employees who inherently focus on risk and reward. Scandinavian management style appears to be ideal to lead the workers of the future, but it is also a demanding management style, as the manager need to act more as a personal coach, motivator and guide in reaching strategic objectives.
Close personal contact between manager and employees in the knowledgeable worker environment will become even more important than it is today. The successful manager will be the one who can handle the oxymoron of finding a balance of when to pressure workers and when to back off. My experience tells me that we still have a lot of work to do to get out the full power, competence and the right use of each of our employees. We all still need to be innovative and invest in the development and well-being of our employees, while we resist the pressures of taking a short-sighted bottom-line focus. If we manage to continue that quest we are well on our way into the future.
This article is written with influence from many different sources, to many to mention and developed over time.But if someone would like to get a full list of sources, some written and some discussedand if someone would like to know more about the background of the article, please comment or reach out. All articles written are my personal view, and not to be the view of any existing or former employer.
FAQs
The Scandinavian management style is network-oriented and motivating, where managers empower and have trust in the employee's ability to deliver the necessary value and results. In Scandinavia, companies manage with goals and values rather than control and strict chains of command.
Why are Scandinavian countries so successful? ›
There are a cluster of factors that tend to co-occur, including high life satisfaction, high levels of social and institutional trust, high-quality democratic institutions, extensive welfare benefits, and social-economic equality, and this cluster of factors is nowhere else so strong as in the Nordics.
What is the Scandinavian model of leadership? ›
Scandinavian leaders don't get respect from their employees just by being the boss. Instead, by including, sharing, and encouraging different opinions, they will be on the right path. Leaders must be prepared to be told if their employees disagree with them. Sharing knowledge and important information with each other.
What approach Scandinavian countries often take to management and why this approach fits with their culture? ›
The Scandinavian management model is characterized by flat hierarchies, greater participation and the delegation of responsibility – and is quite the opposite to the hierarchical, authoritarian, command and control-based management style which dominates the way work is organized in many other parts of the world.
What is the Scandinavian decision making style? ›
The first characteristic is a high level of employee involvement in the decision-making process. The second is the short distance between managers and employees. The third is the 'freedom with responsibility', which means that the employee has ample space in which to take initiative and work independently.
What are the good things about Scandinavian countries? ›
Stress free and relaxed. If you ask a Scandinavian what makes them so happy to be living in their country, most will reply that they feel secure, all their basic needs are met and they don't have to fear being broke. They have very little to stress about since their social programs provide so much support.
Why is Scandinavia so popular? ›
The Scandinavian Peninsula is famous for its scenery and is often ranked in the top ten 'most beautiful countries in the world'. Iceland tends to rank highly with its volcanoes, expansive underground ice caves and glacial lakes, closely followed by Norway for its dramatic mountains, fjords and dense forests.
What is the main motivation behind the Scandinavian model? ›
Egalitarianism: A key aim of the Nordic Model is to reduce income inequality. Redistribution of wealth is facilitated through progressive taxation, while generous social benefits help to level socio-economic differences.
What is the Scandinavian style of management? ›
The Scandinavian management style is network-oriented and motivating, where managers empower and have trust in the employee's ability to deliver the necessary value and results. In Scandinavia, companies manage with goals and values rather than control and strict chains of command.
What is the Scandinavian approach to learning? ›
This is the Scandinavian way.
We highlight and value different needs, opinions and perspectives within the group. We notice, acknowledge and respond to the children's perspectives and actions. In conversation and in play, we challenge the children's thinking and invite them to take part in curious exploration.
The Nordic model is described as a system of competitive capitalism combined with a large percentage of the population employed by the public sector, which amounts to roughly 30% of the work force, in areas such as healthcare and higher education.
Why are Scandinavian countries so productive? ›
2 The key causes of Nordic prosperity and quality of life are often identified as wage equality, high public welfare spending, solid public primary and secondary education, and a relatively hom*ogeneous population.
What is the Scandinavian model of teaching? ›
Enquiry-based Learning
Each term includes a question that teachers are asked to create lesson plans in which children are invited to ask and answer the question in different ways, challenging them to interact with the subject matter in more meaningful ways.
What is the Scandinavian approach to work? ›
The Swedes have a specific word to describe their attitude towards work – “lagom”, which roughly translates to “just the right amount”. They work enough hours in the day to get everything done, but they value their free time and don't sacrifice it.
What is the Scandinavian approach to design? ›
Scandinavian interior design emerged in the 20th century and stands among the most popular interior design styles in America today. Its focuses on simplicity and coziness are two of the many facets that inspire homeowners to this day. “Scandinavian design is not over-thought.
What is the Scandinavian benefits system? ›
The Nordic model yields equality and social mobility. Everyone has free access to decent public services, including some of the best education and healthcare in the world, and people appear happy to pay their taxes to make sure that this continues.
How did Scandinavia become so rich? ›
Norway, Sweden and Finland have always had rich natural resources of timber and fish. Norway, in addition, has had oil & gas since the mid-70s. The governments have been transparent, with a large level of public oversight, the kind that is possible in such micro-countries.
Why are Scandinavian countries so sustainable? ›
The Nordic region is rich in natural resources and environment-based sectors such as forestry, agriculture, fisheries and mining. This is important for ensuring vibrant rural areas. To strengthen the economy and sustainable development, it is important that these resources are used but not depleted.
What is the most powerful Scandinavian country? ›
What made Denmark the most powerful Scandinavian country, despite being the smallest among them? Denmark might have had a smaller land area than Norway and Sweden, but the lands Denmark did have were more valuable.
