Creative Learning in Vida AB: A Case to describe organizational learning as a function of management style

Author

Peter Österberg

Scandinavian Forest Economics: Proceedings of the Biennial Meeting of the Scandinavian Society of Forest Economics, 8-11, issue 41

Abstract: Research in general suggests management style to be an important determinant for organizational adaptability in order to learn how to cope with new situations; this is important when major environmental changes encounters an organization, as the organization need to keep pace in order to staying competitive on the market. Other research suggests that this kind learning take place in an implicit communications process. It is also suggests clear and challenging super ordinate goal setting to be a strong determinant to explain individual and organizational commitment and performance in general, and to mediate organizational creativity to be market-based. During the weekend of 8-9 January 2005, a storm, Gudrun, hit south of Sweden with hurricane-force. The impact of the storm was devastating across society as it destroyed large areas of forest. According to the Swedish National Board of Forestry, 75 million cubic meters was destroyed or damages. In this situation, the C.E.O. of Vida AB decides to buy 1 million cubic meters of the trees that had fallen due to the impact of Gudrun. In reality C.E.O. committed himself to buy 3.5 million cubic meters of fallen trees, and to take the cost for those parts that would proved to be damages. The decision made by the C.E.O. is obviously clear and challenging, suggesting it to make members of the organization to commit themselves to fulfill that decision. But how they learned, or develop, abilities to cope with this major change is unclear.

Keywords: Management style; climate; super ordinate goals; organizational performance; Agribusiness (search for similar items in EconPapers)
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