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Managerial decision-making and leadership style with a proactive organizational culture, for forestry in transition countries, can be a key link in the process of forest companies’ operational and business improvement. In theory and practice, there are several styles of leadership, from autocratic to democratic, and numerous studies have proven the existence of a causal link between management style and business improvement. In forestry, however, no one has specifically evaluated the management style of the forestry company, and it made reference to indicators of cultural component of the company and the mental load of employees. Through a case study, this paper analyzes the employees opinion of forestry company related to (a) existing and desired management style and (b) connection of management style with a share of a particular cultural type and indicator value in the relationship between work effort-reward (ERI indicator).
General findings (Figure 2) highlight autocratic style (74%) as the predominant leadership in forestry company, while the preferred way of managing enhanced democratic style (87%). Frequency of answers showed that 62% of employees never or rarely receive recognition and remuneration for their work (Figure 3). Never, rarely or occasionally assigning additional responsibilities emphasized 62.34% of respondents (Figure 4), and lack of investment in human resources training was highlighted by 55.56% of the respondents (Figure 5).
Correlation model results (Table 3) shows that low numerical value of management style, which is characterized by strong and / or generally autocratic management style with formal and directive approach to the management and with the orientation on the result, is followed by very strong hierarchical type of culture on which is linked and higher load i.e. respondents discontent within the structural units. The above is supported by the results of the regression analysis where the most unique contribution to explaining the value of the dependent variable, i.e. the management style is contributed by the hierarchical type of culture and ERI indicator (Table 4). Examination of the differences between the mean values of management style versus conditional class of ERI indicator (Figure 7) shows statistically significant differences, and the results indicates that the prominent presence of autocratic management style increases the mental workload of employees which can have a negative impact on productivity and health status of employees. The comparison of the company dominant culture with perceived management style (Figure 8) show that a high level of representation of the hierarchical culture type follows expressed autocratic management style and strong democratic management style of the company is positively correlated with a greater share of group cultural type.
Relationship analysis of management components shows that a hierarchical business culture of company is followed by a pronounced autocratic management style that is positively correlated with the ERI indicator, i.e. followed by increased mental workload of employees. Highlighted democratic management style of the company is positively correlated with group business culture on which is linked and lower load i.e. respondents’ discontent within the structural units. Unbalanced focus of the existing culture with formal directive management style and lack of reward system is resulting with a strong resistance to the necessary changes and needy improvement of forestry company management practice. Guidelines for the improvement of the present situation are listed in the discussions and conclusions of the work.
Key words: forestry; forestry company; management style; organizational culture; improving management practices
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