Introduction
Over the previous century Haram, known as a small Commune in the More and Romsdal county in Norway and a part of the Sunnmore region, has undergone certain changes and problems. Deepening into the nature of change problems faced by Haram it should be stated that they are connected with the development of the following factors such as political, economical, legal, social, environmental, and technological ones.
What is Haram? It is a picturesque city with mountain hamlets in the east the islands in the west. The view of the world of Romsdal and Sunnmøre from the peak of Skjerdingen is considered to be the highest mountain in the area including the coastal area as well. Haram municipality covers 260.5 km2 and contains around 8.620 inhabitants.
Though the municipality is also growing fast to become one of the largest industrial townships in Møre and Romsdal, it is facing many economic crises and other disadvantages as many youngsters are leaving the place for better education or living. The principle industrial activities are on the maritime-related ones though the varying of industries.
As Haram is a city in an underdeveloped country, the problems that the Commune faces are similar to those of the other cities in the other underdeveloped or developing countries. Its major problem is that it is still an underdeveloped region. The place faces various recent setbacks like educational problems, emigration, demographic challenges to the financial challenge, and the mindset of the people. The paper is to disclose the problems that the Commune faces, the steps taken to solve the problems, the after-effects of the steps, and the solutions that can be provided and put to effect in the future.
Case Study
Change Problems: Financial Aspect
Haram is considered one of the lesser developed places on the Norway Coastline and is one of the 36 communes in the county of More and Romsdal. The Commune was started with a meager budget of some 500m Norwegian krone and staff of a little over 550 members were employed which consisted of a majority of part-time workers. It started with the most basic and mandatory functions of delivering services to the people which included a primary school, health care, care for the elderly, and other social functions. None of the parties had a sufficient majority to exercise complete decision-making power and the largest of the parties that existed favored agricultural interests. As a result, the Commune was faced with many challenges to tackle with. Finding solutions that were appropriate for the budget provided proved to be a stupendous task. It was faced with the following challenges. The main challenge in entire Norway is to manage the fiscal and monetary policies, fiscal sustainability, etc.; these problems should also be considered as haram is in Norway. (OECD, 1993, p.49)
The current international system is quite vulnerable to the new financial and economic environment due to which the developing cities are affected. The world economy is getting exposed to dangerous and disruptive economic instability and the most affected are the cities like Haram. (Hooley. W.R, Yu. H.C, Yoo. H.J, 2002, p.324)
The government body established in Haram was in the form of a commune which is the simplest building block of governance. This normally gives out more of an impression of an insignificant economy than that of a one that is just in its developing stages. As a result, the funding and budget for such government bodies are meager and always insufficient to meet the demands of the organization. The Commune cannot hope to make any major changes in the economy given the limited budget. It is also difficult to obtain loans for their undertakings unless success is guaranteed. Financial challenges are inherent in all organizations and rarely a challenge of this kind is completely overcome. But major undertakings or changes cannot be met without adequate funding. But the country should lay its trust in such missions and provide adequate funding and should also support the success of the various measures taken up for development. The impact of inadequate capital would be a stagnant economy that has absolutely no scope for improvement or development. (Drucker, 2007)
Demographic Changes
The demographic changes that are unfolding in Europe and North America will have an irreversible impact in the future. Although economic circumstances will cover the full impact in a shorter term, businesses risk a serious disruption. (Bones. C, 1994, p.8) The Commune had to face the demographic challenge with the majority of its younger generation moving to cities and other better-developed regions of Norway in search of a better life. Migration to other cities meant a better education and diverse job opportunities that Haram would not be able to provide them. Tourism was also better developed in other places of Norway. Haram consisted of four large islands which posed a big challenge to the Public sector management. Communication was also difficult with the managers and politicians adding to the insularity and fragmentation that was already prevalent. Another aspect that hindered the growth of tourism in Haram was that it was not a stop on the route of the main coastline. As a result, the city was hardly known by outsiders other than the residents. The Commune was faced with this difficult situation and had to come up with a way to tackle this issue immediately to prevent the existing residents from migrating to other cities. The organizational structure of the Commune was too rigid and needed to be reformed. There were only a few basic departments that were overloaded with work. The staff was also not efficient enough and lacked the drive and commitment that was the need of the hour. The Commune aimed at popularizing the maritime industry to attract youth and the working class. (Nonaka, 1995) The Administrative Director of the Commune whose position was almost equal to that of the Chief Executive developed a close working relationship with two of the largest maritime employers in the region and developed a common vision of making Haram the leading maritime and industrial in the whole of Norway. This brought about the publicity campaign of the maritime industry to recruit workers to this industry. The campaign was also covered on Norwegian Television. The CEO as well as many other Communes’ political leaders anticipated the future demands of this industry and made efforts to improvise on the existing education system. Visits to the industries from schools were organized to enlighten the young minds about the growing industry and also provide guidelines about the career prospects available. The Commune and companies had discussions on ways to improvise and reform the education system. They supported a system that had more practical lessons than theory. This also led to the introduction of computers and the IT sector in school education. In the year 1999, the commune introduced its first strategic plan which can be considered as the first clear and concrete step in reforming the administration. The reformed administration was demanding in terms of employees. It required competent staff and also those committed to their jobs. The most pressure was perhaps on the Commune in recruiting such competent staff. All of these changes and challenges cannot be meted upon if the Commune is run on the norms of public service orientation. The foremost concern was to bring in more population and to prevent further immigration. The campaigns and the measures taken by the Commune were effective in achieving this target.
Educational Transformations and their Impact
Education is a major requirement in Haram. This is one of the reasons why people migrate out of the Commune to greener pastures where they could get better education as well as jobs. It is, therefore, a direct cause that is causing the migration of people. Secondly, the industrial growth in the area will depend on the education of its people. This will also decide on the financial strength of the Commune.
Though it is unsaid, the following demands are mandatory for every country in today’s world. The modern, economic, political, social, and technological requirements demand all people irrelevant what community they belong to to have a minimum level of basic education. But the toughest challenge is to reach the historically under-served people. As the countries start to receive basic education, the competitive world will demand secondary, tertiary, and technical education. Similar pressure is coming in the workplace to update with the knowledge and the recent technologies. (ICT, n.d)
The Haram Commune had an imbalance between the future industrial demands and the actual skills and the education workforce. Haram’s adult population (above 16 years) had a comparatively less high education than the neighboring counties. An analysis in 2002 shows the percentage of education received by the adult population in Haram is 13.3% against the county which had 17.3% and Norway 22.3%. As the place did not concentrate much on education due to its strict and religious rules due to which Haram’s literacy was much lesser than the normal Norwegian average, the result was that many youngsters started leaving the municipality to get a better education and living. As the future population started leaving the Commune, the scope for education became even more meager. The maritime is the major business in Haram. It has two shipyards and many manufacturers of maritime equipment owned by big international companies like Rolls-Royce and Aker RGI it became a subject of concern when the traditional work that these workers provided was outsourced to a much more educated workforce. (Slethaug, 2007)
Emigration Social Change
Haram is a picturesque area on the coast of Norway with not more than 8750 occupants. But what’s a beautiful Commune without its people? What’s a picturesque area without proper facilities and administration to maintain it, let alone improve it? So, due to this lack of sufficient facilities and enough career opportunities, the budding young population of Haram decides to pack their bags and leave the Commune! Emigration is not a problem just on a national level. When people leave their native place to make a better living in a foreign region, it is called emigration. In most cases, emigration is the main cause of brain drain. Brain drain is nothing but the emigration or movement of high skilled labor from the native place to a foreign region. When people with relatively higher skills and better knowledge leave their native place to work for someone else on foreign land, we call it brain drain. The term “brain drain” is used to describe the outflow of highly qualified and talented manpower which has been trained at considerable expense in one country and which migrates permanently to another country. (Sukhatme. S. P, 1994, p.1) Again, this is seen not only as a national issue but also starts from every little Commune such as Haram. When the highly talented and skilled young people of Haram decide to abandon their native region and carry out efforts to find better opportunities in another city or a town, the little Commune could gradually lose its identity. This is the main issue that threatens the Commune – The emigration of the young generation.
Effects of the Change Process
As mentioned earlier, the main reason for this emigration is the lack of proper facilities and services and career opportunities. People felt that there is no other choice except to move out. What they had not realized for so long was how to arrive at a solution. As it has turned out, escaping from the clutches of a problem is not the solution. Therefore, finally, the key leaders of the commune decided to work together as a group as the first step in getting Haram back. As the basic problem was lack of career opportunities, the CEO of the Commune, along with his group tried to create some, by recruiting workers for the maritime industry. As Haram is located on the coast of Norway, the maritime industry is something that could have a good scope for growth. As mentioned in the case study, the Haram Commune has two shipyards. One of the areas where the Commune could show some progress in the maritime industry. Therefore the initial change that the Commune brought in is the efforts put forth for the upliftment of this maritime industry.
Impact of the change
Though there were efforts to improve the maritime industry, it did not see much a progress as Haram was not a stop on the route of the main coastal shipping line, popularly known as a hurtigrute. The Hurtigruten Cruises, earlier known as the Norwegian Coastal Voyage began in 1893. It is a great tourist attraction. But as Haram was not one of the stops the maritime industry in that place did not flourish, as expected.
Insufficient Administration
Due to the mobility of skilled labor to other locations in Norway, there were few competent people to take care of the Commune. The maintenance of the region was very poor, the administration of the Commune was not good enough and the government failed in its responsibilities. People could not restore the Commune, nor could they stop people from moving out, as the right to do so did not lie in their hands. The lack of proper administration was also because of the lack of education. The level of education and the skills of the people in power were not on par with the future needs and requirements of the people. The Commune remained less developed compared to the areas surrounding it. The local governments in this area could not anything else but watch on while their people moved out and the Commune began to lose its identity.
Changes effected
The demographic challenge and the lack of education posed a major threat to the progress of the Commune. As mentioned in the case study, the “public service” model which used to serve well became a hurdle for Haram’s progress. The time had come to introduce change. The Commune leaders realized that a change had to be brought in sooner or later to improve the Commune’s condition. So, a new CEO or Administrative Director was appointed in 2007. He developed a close relationship with the two largest maritime employers then and succeeded in developing a common vision with them which states that Haram is to become the industrial Commune and leading maritime in Norway.
Impact of the change
This particular change did have a positive impact. The managers were grouped and were encouraged to pursue their Masters’s programs. A higher number of stakeholders were brought into the strategy process and this included both internal and external. The overall quality of the administrative department increased as they were introduced to education. Therefore the impact of the change was quite positive.
There has been a consistent growth in the educational standard and the demographic shift that has been happening in the Commune has slowed down. This is mainly because of the steps taken to bring in large maritime industry leaders to Harem and thereby, creating job scope for people. Similarly, a change in the educational structure also has brought about major changes in the way people in Harem viewed their livelihood.
Implementing management concepts such as ‘Balanced Scorecard’ to bring about an immediate vision of whatever is the impact on the Commune, paved a great say in the matters.
Who “Owns” the Problem?
The owner of the change faced by the Haram Community is considered to be the CEO who needs to ensure that the Commune had enough funds. The CEO felt that the traditional public sector model had to be changed to a new and flatter structure and this led to a new and revised structure. Managers were exposed to newer techniques and were encouraged to implement them in the administrative process. Therefore such changes were effected, hoping that it would produce a positive result.
Though the CEO and Haram’s many political parties are taking various steps to develop the Commune, the rate of progress is very slow. But the effects of change are a bit productive with the introduction of the IT sectors in schools that is the booming field now.
To improve the educational standards in Haram, the CEO and Haram’s many political parties who saw that in the future the requirements of the industrial sector would change, took various steps. Certain educational initiatives were launched. Scholl people and industry managers were made to exchange visits so that the students get an insight on the industrial sector also, the Commune and the large industries discussed how to work together and improve education. This led to the introduction of IT in schools. In 1999, the Commune prepared an organized plan to promote community development as this development was not considered before.
Conclusion
The analysis of the case gave an opportunity evaluating the major problems faced by Harem. Financial, demographic, educational and administrative changes experienced by Harem are closely connected with problematic issue of Haram Community life.
The analysis of Haram showed that there was a perceptible change in the demographic map of the Commune and so was the change in the economic front as well. This does not mean that all the problems are solved for Harem. The Commune is still having numerous minor issues which need to be set right over a period of time. The industrialization should be carried forward and employment opportunities should be raised further. Secondly, educational changes that have been brought about should be equally carried forward. Facilities for education need to be enhanced. These will form the next set of challenges that Haram will be facing. In addition to this, the global recession could also be hurting the growth of the Commune in its own way which has to be countered. All these are the possible future issues that the Commune has to address in the coming years.
References
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- Drucker, F.P, 1999, Management Challenges for the 21st Century (Electronic Version), Harper Business.
- Drucker, F. P., 2007. Management Challenges for the 21st Century. Classic Drucker Collection. Collins.
- Hooley, W.R, Yu.H.C, Yoo.H.J, 2002, The Post-financial Crisis Challenges for Asian Industrialization (Electronic Version), Emerald Group Publishing, p.324, Web.
- ICTs, n.d, Challenges to Education Systems (Electronic Version),
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- Nonaka, I. 1995. The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation. Oxford University Press.
- OECD, 1993, Oecd Economic Surveys: Norway (Electronic Version), OECD Publishing, p 49, Web.
- Slethaug, G.E, 2007, Teaching Abroad: International Education and the Cross-cultural Classroom (Electronic Version), Hong Kong University Press, p.5, Web.
- Sukhatme, S. P, 1994, The Real Brain Drain (Electronic Version), Orient Blackswan , p.1, Web.