Dynamic Relationships Management Journal, November 2013 1
We all agree on the importance of manage-
ment for the success of enterprises and other or-
ganisations, as well as of the entire economy and
society. Countries in the current crisis – Slovenia is
one example – often talk about different measures
of financial and similar policies that would, they
hope, end the crisis and result in a healthy economic
and social situation. Regardless of the soundness of
these policies, which are mainly directed to savings
and preventing the deterioration of the well-being
of citizens, it is clear that they cannot succeed with-
out their acceptance by enterprises, employees and,
above all, managers.
The role of management and of corporate gov-
ernance in Slovenian enterprises was the focus of a
debate evening held by members of the Slovenian
academy of management (SAM). The situation in
management and corporate governance has been
critically analysed and some possible solutions for
the problems offered. The participants agreed that
the present socioeconomic system in Slovenia does
not offer a favourable environment for enterprises.
However, this is often an excuse for poor manage-
ment or at least that not much can be done to im-
prove the achievements of the enterprises.
The introductory presentation on management
focused on some steps of the human resources
management process. The recruitment and selec-
tion of managers was the topic of the previous de-
bate evening, which revealed a lack of educated and
skilled managers, little use of known selection ap-
proaches and the still significant role of political af-
filiation. 
More attention at the present debate has been
paid to the evaluation of quality of managers. In the
public, the opinion prevails that Slovenian managers
are not particularly good. However, to avoid subjec-
tivity in the evaluation of managers, we have to con-
sider some rational criteria. Such criteria are the
success of the managed enterprises (e.g. profitabil-
ity, social responsibility) as we claim that it is the ut-
most responsibility of managers; the attainment of
agreed goals set by corporate governance and ac-
cepted by managers; the knowledge and appropri-
ate use of managerial functions; the traits of
managers themselves; the relationship between or-
ganisational culture and managers’ traits. Consider-
ing the poor results of Slovenian enterprises, a lack
of setting and achieving high goals, a lack of knowl-
edge of management by managers, etc., partici-
pants came to the conclusion that Slovenian
managers have much to improve.
More discussion has focussed on the education
and training of top managers. The situation follow-
ing the introduction of Bologna process has been
criticized. The discussion revealed that not the basic
ideas of Bologna process but their implementation
has failed and resulted in less efficient and useful
education, which is the very opposite of the inten-
tions behind it. The situation in management edu-
cation is worse than before and represents a barrier
to improvements efforts of management. Partici-
pants proposed two possible solutions: returning to
the basic principles of Bologna reform, or accepting
defeat and establishing a kind of specialization in
management (as well as improving the orientation
of doctoral studies) after five years (first and second
level) basic university schooling.
Corporate governance has not been discussed
in detail. Let us mention only some of the problems
encountered: little basic understanding of corporate
governance and its relationship to management;
unclear distinction between governance and man-
agerial decision-making; following only economic
FROM THE PRESIDENT
OF THE SLOVENIAN ACADEMY OF MANAGEMENT
RUDI ROZMAN
University of Ljubljana
Dear Reader,
Dynamic Relationships Management Journal, November 20132
principal-agency theory without any consideration
of the organizational stewardship theory based on
trust; unimportant and unclear role of other stake-
holders (labour) except owners; problematic recruit-
ment and selection of members of supervisory
boards; their inability to supervise while simultane-
ously trying to direct the enterprises etc.
Participants believe that poor management and
corporate governance in recent years are some of
the most significant reasons for problems within the
enterprises and other organisations. They also be-
lieve that crucial part of the exit from the crisis is
the change and improvement of corporate gover-
nance and management. As the first step to im-
provement, they see a detailed, systematic and
honest analysis of the present situation in corporate
governance and management as well as in the
neighbouring areas. They see that the solution not
only lies in new economic policies but even more in
the improvement of governance and management.
In this, they also see the challenges for the academy,
whose basic mission is to support the knowledge in
corporate governance and management and their
neighbouring areas.
Rudi Rozman
President of the Slovenian academy of management