The optimal company management model for Latvian financial sector

Marcis Grinis

Student thesis: Master thesis

Abstract

The key aim of this study was to gain a profound understanding of various management theories, empirical researches and management practices and to investigate the possible contribution of these in finding the optimal management approach for companies in Latvia, as often company management in Latvia is weak and managers fail to transfer necessary knowledge from developed countries. Another aim was to develop the most appropriate management approach among medium and large size companies in Latvian financial sector. Qualitative research method was used to achieve this goal. Previous literature was gathered from public sources, scientific management journals, databases and books and analyzed chronologically. Theoretical and practical implications found were exploited to construct theoretical management framework. Based on this, interview survey was developed and 9 interviews in 5 Latvian financial sector companies were carried out. Results were analyzed by using theoretical background as a fundamental framework. The principal conclusion of the study was that even widely recognized management theories fail to suggest the most appropriate management approach for Latvian companies; nevertheless, it was found that theories are helpful in structuring management elements and providing a framework for building effective management approach. Moreover, results revealed that a more appropriate management approach exists among medium and large size companies in Latvian financial sector and it includes: mix of democratic and autocratic management style, autonomy balanced with level of command, transparent system of authority, low degree of bureaucracy in the company‚Äüs upper level, emphasis on teamwork, short-term oriented hiring, selection, and retention policies, non-material motivation, control system highly linked with motivation and reward system, and discreet failure management scheme.

EducationsMSc in Finance and Strategic Management, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2011
Number of pages100