2011 Romanian Management Assessment

2011 ROMANIAN MANAGEMENT ASSESMENT

TABLE OF CONTENTS

FOREWORD ....................................................................................................................................................................................... 9

CHAPTER 1 – DYNAMIC AND INTERNATIONAL COMPARATIVE MANAGERIAL APPROACHES ............................................. 11

1.1. Dynamic managerial approaches ................................................................................................................................................. 11

1.1.1. The need and the specificity of dynamic managerial approaches in present period ................................................................ 11

1.1.2. Dynamic management approaches typology ........................................................................................................................... 12

1.1.3. Main methodological elements involved .................................................................................................................................. 13

1.2. Comparative managerial approaches .......................................................................................................................................... 16

1.2.1. The need and particularities of comparative international managerial approaches ................................................................. 16

1.2.2. Types of comparative studies and analysis ............................................................................................................................. 18

1.2.3. Specific ways, methods and techniques involved .................................................................................................................... 21

1.2.4. Advantages and limits .............................................................................................................................................................. 29

CHAPTER 2 – NATIONAL LEVEL MANAGEMENT ....................................................................................................................... 30

2.1. The performances and the state of national management in 2011 ........................................................................................... 31

2.1.1. Management analysis vision ................................................................................................................................................... 31

2.1.3. Management’s capacity to face and deal with the crisis and its consequences ...................................................................... 33

2.1.4. The business environment viewed as a synergic resultant of the quality of national management ......................................... 37

2.2. Strengths – identification and analysis ....................................................................................................................................... 43

2.2.1. Romanian management main strengths .................................................................................................................................. 43

2.2.2. Causal analysis of the main strengths of the national management ........................................................................................ 46

2.3. Weaknesses – identification and analysis .................................................................................................................................. 49

2.3.1. The main weaknesses ............................................................................................................................................................. 49

2.3.2. Causal analysis of the most frequent management weaknesses ............................................................................................ 52

2.4. Management dynamic in 2009 – 2011 .......................................................................................................................................... 54

2.4.1. Evolution of the national management quality ......................................................................................................................... 55

2.4.2. Management dynamic in Romania comparative to European Union management ................................................................. 55

2.4.3. The evolution of management in Romania comparative to management in Central Europe ................................................... 56

2.4.4. Dynamic of the Romanian management capacity to face crisis and its consequences ........................................................... 57

2.4.5. The evolution of the main strengths ......................................................................................................................................... 59

2.4.6. The evolution of the main weaknesses .................................................................................................................................... 61

2.5. Management, business environment and performances within world and European context .............................................. 63

2.5.1. Characteristics of the Romanian economy, business environment and management in the European Union context ........... 63

2.5.2. The evolution of the competitiveness in Romania .................................................................................................................. 69

CHAPTER 3 – MANAGEMENT OF PUBLIC ADMINISTRATION IN 2009-2011 .............................................................................. 73

3.1. Modernization of the governing process in Romania ................................................................................................................ 73

3.2. Reform measures coordinated by Government .......................................................................................................................... 74

3.2.1. The functional analysis of the central public administration .................................................................................................... 74

3.2.2. Measuring the administrative costs ......................................................................................................................................... 76

3.2.3. The public-private partnership ................................................................................................................................................. 76

3.3. Modernization initiatives realized by the central unit for public administration reform ......................................................... 77

3.3.1. The public administrator ........................................................................................................................................................... 77

3.3.2. Administrative code.................................................................................................................................................................. 77

3.4. The effects of the economic crisis on the public administration reform in Romania ............................................................. 77

3.6. Analysis of management in public administration in 2011 comparative to 2010 .................................................................... 79

3.7. Analysis of the strengths and weaknesses of the public administration management in Romania ..................................... 83

3.7.1. Main strengths of the central administration management ..................................................................................................... 83

3.7.2. Main strengths of the local administration management .......................................................................................................... 83

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2011 Romanian Management Assessment

3.7.3. Main weaknesses of the central public administration management ...................................................................................... 84

3.7.4. Main weaknesses of the local public administration management .......................................................................................... 85

3.7.5. Dynamic comparative analysis of the most frequent strengths in Romania ............................................................................. 86

3.7.6. Dynamic comparative analysis of the most frequent weaknesses in Romania ........................................................................ 88

CHAPTER 4 – ENTERPRISE MANAGEMENT DURING 2009 – 2011 ............................................................................................ 91

4.1 Enterprise management and performance ................................................................................................................................... 91

4.1.1 Enterprise management characteristics and efficiency in 2011 ................................................................................................ 91

4.1.1.2. Brownian organization, insufficiently linked to the results of planning ............................................................................. 97

4.1.1.3. Predominantly empirical coordination, motivation and control-evaluation ....................................................................... 99

4.1.1.4. Managers and human resources management, profoundly influenced by the personnel practices from

the communist period ................................................................................................................................................................... 99

4.1.1.5. Focusing management on quality and performance ...................................................................................................... 102

4.1.2. The evolution of the economic agents in the period 2009-2011 ............................................................................................ 103

4.2 Strengths of enterprise management ......................................................................................................................................... 110

4.2.1 Main strengths of the Romanian companies management ..................................................................................................... 110

4.2.2 Causal analysis of strengths ................................................................................................................................................... 112

4.3 Weaknesses of enterprise management .................................................................................................................................... 114

4.3.1 Main weaknesses ................................................................................................................................................................... 114

4.3.2. Causal analysis of weaknesses ............................................................................................................................................. 116

CHAPTER 5 – MANAGEMENT TRAINING AND CONSULTANCY ............................................................................................... 119

5.1. Manager training and development ........................................................................................................................................... 119

5.2 Management consultancy ............................................................................................................................................................ 124

5.3 The evolution of management, training and consultancy during 2009-2011 .......................................................................... 128

5.3.1 Managerial training ................................................................................................................................................................. 129

5.3.2 Managerial consultancy .......................................................................................................................................................... 129

5.4 Main strengths and weaknesses of the university, training and consultancy organizations management ........................ 130

5.4.1 Strengths ................................................................................................................................................................................ 130

5.4.2 Weaknesses ........................................................................................................................................................................... 133

CHAPTER 6 – CONCLUSIONS, PRIORITIES AND IMPROVMENTS WAYS OF THE ROMANIAN

MANAGEMENT ............................................................................................................................................................................. 137

6.1 Building and implementing the knowledge-based strategy in Romania and the EU 2020 Strategy -

context of the Romanian management modernisation ................................................................................................................... 137

6.1.1 Knowledge-based economy, a present and future necessity for every country ...................................................................... 137

6.1.2 Knowledge-based economy approach in European Union ..................................................................................................... 141

6.1.3 Coordinates and premises for the knowledge-based economy building in Romania .............................................................. 147

6.1.4 Milestones regarding the creation and structuring of the strategy for building the knowledge-based economy

in Romania ....................................................................................................................................................................................... 149

6.2 Conclusions regarding Romanian management ....................................................................................................................... 149

6.2.1 Management situation in 2011 ................................................................................................................................................ 150

6.2.2 Romanian management evolution in 2009-2011 .................................................................................................................... 152

6.2.3 Characteristics of the management evolution during last decade in Romania ....................................................................... 155

6.2.4 Conclusions regarding public administration management .................................................................................................... 157

6.2.6. Conclusions regarding managerial training and consultancy ................................................................................................. 160

6.3 Management priorities and strategic ways for the coming years ............................................................................................ 160

6.3.1 Strategic ways regarding the entire Romanian management ................................................................................................. 160

6.3.1.1. Professionalizing management nationalevel ................................................................................................................. 161

6.3.1.2 Exerciting a sistemic management, incorporating the five management functions - planning, organization,

motivation, coordination and control-evaluation .......................................................................................................................... 161

6.3.1.3 The placement of the predominantly prospective vision and approach in the core of the management,

reflected in realistic and ambitious priorities ............................................................................................................................... 162

6.3.1.4 Designing and implementing rigorous and functional management systems at all economic levels – national,

sectorial, regional, county, locally and enterprise ....................................................................................................................... 163

6.3.1.5 Proliferation of the management knowledge, training and consultancy at all economic levels. ...................................... 164

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2011 Romanian Management Assessment

6.3.1.6 Designing and implementing professional strategies for the economic branches and the regions ................................. 165

6.3.1.7 Amplification of the national and international management visibility, as the main vector of the economic,

social and political development ................................................................................................................................................. 166

6.3.2. Recommendations regarding the national management development formulated by interviewed managers,

professors, trainers, consultants and other specialists .................................................................................................................... 167

6.3.3 Recommendations focused on the national management development ................................................................................ 169

6.3.3.1 Transfer intensification of the international management know-how, and best practices from the European Union ...... 169

6.3.3.2 Continuous and intense using at the national and organizations level, of the systems, methods and techniques,

provided by management science .............................................................................................................................................. 169

6.3.3.3 Identification, transfer and adaptation of the specific knowledge-based models, methods and techniques ................... 172

6.3.3.4 Creation of innovative companies networks ................................................................................................................... 172

6.3.3.5 Development of innovative manufacturing and/or export clusters .................................................................................. 173

6.3.3.6 Creation of spin-offs ........................................................................................................................................................ 174

6.3.3.7 Development of business incubators .............................................................................................................................. 174

6.3.4 Strategic development for the public administration management ......................................................................................... 175

6.3.4.1. Integration of the public policies in the pulic administration management ..................................................................... 175

6.3.4.2. Improvement of the public policy elaboration ................................................................................................................. 175

6.3.4.3. Decreasement of the “ad-hoc” policies .......................................................................................................................... 175

6.3.4.4. Amplification of the information concerning performance of the public administration .................................................. 176

6.3.5 Priorities and actions concerning to enterprises management ............................................................................................... 176

6.3.5.1 Companies priorities ....................................................................................................................................................... 176

6.3.5.2 Actions regarding modernisation of the enterprises management .................................................................................. 177

6.3.6 Priorities and recommendations concerning the managerial training and consultancy .......................................................... 184

6.3.6.1 Managerial priorities ........................................................................................................................................................ 184

6.3.6.2 Recommendations to the managerial training and consultancy organizations ............................................................... 185

REFERENCES ............................................................................................................................................................................... 191

Appendix 1. SAMRO 20111 questionnaire ..................................................................................................................................... 193

Appendix 2. Sample of the managers, researchers, consultants, trainers and management specialists interviewed

in september-november - november 2011 ...................................................................................................................................... 197

Appendix 3. SME’s With Book 2001 questionnaire ......................................................................................................................... 199

Appendix 4. Sample of the managers and entrepreneurs interviewed in March-April 2011 ........................................................... 206