Management styles - Romania

Romania, now a member of the EU, has for so many years been a society where
management authority was highly concentrated in the hands of a few people who could
wield their authority in quite an arbitrary way. The management style was often autocratic
and the main expectation of the workforce was that of quiet obedience. But then came
foreign managers and things started to change.
The nature of management varies between societies and dominant cultural norms shape
the style of management in different countries. It is not enough for the Western businessman to
think global, act local. It is also important that they think about the local and know something
about it.For example, Romanias banking segment is overwhelmingly based upon foreign
European capital. Consequently, a significant part of the top management in the Romanian
foreign owned banks came from Europe, and/or has had training and experience in Western
leadership and management styles. They saw themselves as exemplars of the new management
agenda (ex.: strategic approach, less authority, team working, flexibility, participation). Some
were modeling the behavior of lower level managers (eg: networking, motivational leadership,
transparency, trust building etc).
For older senior staff cultural change often meant a process of denying the values of a
lifetime and painfully acquiring the skills of the new age. For younger managers, especially those
with less emotional investment in the past, it was a new road to liberalization.Almost all
organizations experienced cultural blocks or resistances to the participative, pro-active and
empowered management which the Anglo-American model of management implied due to
societal culture and history as the key explanatory variables.
This management culture values things like overcoming status barriers between grades
and levels; experimenting with new consulting styles in facilitating teams of knowledge
workers; building flexible communication systems; empowering staff with more authority.
Being a Manager in Romania

In order to achieve successful cross cultural management in Romania it is important to
understand some that it still governed by a great deal of bureaucracy. Therefore, personal
relationships are crucial if you want to cut through the red tape. Although eager to move to a
market economy, only about half the state-owned businesses have been privatized. Much
business involves overlapping local bureaucracies, which make conducting business a time
consuming process that requires perseverance. The legal framework is unclear and the judicial
system is slow and bureaucratic. Commercial litigation is still in the embryonic stage and
enforcing contracts can be difficult.
The Role of a Manager
Successful intercultural management is more likely to be achieved if you keep in mind
that each person has a very distinct role within the organization, and maintaining that role helps
to keep order. It is the expectation that supervisors have been chosen because they have more
experience and greater knowledge. Therefore it is unnecessary, and even inappropriate for them
to consult with lower-ranking individuals when they make a decision.
Decision Making
In a businesses that retains a strong hierarchical structure, managers tend to be autocratic.
They expect their subordinates to follow standard procedures without question. In such
companies, getting things accomplished is a matter of knowing the right people who can then
help to achieve the main goal.Older workers, perhaps as a holdover from the communist era,
avoid admitting mistakes. This can lead to excessive delays in decision making. Younger
employees are more willing to accept individual responsibility.
Boss or Team Player?
In post communist countries, there is a tradition of teamwork inherited from the
communal aspects of the previous era where groups and work units commonly met together to
discuss ideas and create plans. However, those plans seldom resulted in implementation or
results, leading to apathy and cynicism among the workers.
Today the after-effects are still evident among much of the older generation resulting in a
lack of drive and energy. However, there is vibrancy among the younger generation, who seem
to be eager to tackle many of the challenges and take the opportunities presented. They will
participate in teams and share ideas, but intercultural sensitivity will be needed and it should be
understood that they will need to be coached in the process.

Communication and Negotiation Styles
Business moves at a slow pace. The society is extremely bureaucratic and patience will
be a necessary cross cultural attribute. Business is hierarchical and the decision-making power is
held at the top of the company. Most decisions require several layers of approval. At times it
may appear that no one wants to accept responsibility for making the decision. Romanians are
concerned about being taken advantage of by foreigners. Hire your own interpreters for meetings
and negotiations to avoid any possible cross cultural miscommunication. Use local banks that are
correspondents of western banks. Romanians have a tendency to tell others what they think they
want to hear and decisions are easily reversed. Use an indirect negotiating style. Being too direct
is viewed as rude.