The task of the study was to describe the opinions of the forestry experts engaged in the State forestry organization and the organization for promotion of private forestry, and of the appointed representatives in the organization for the promotion of private forestry concerning the official forestry administration and its development. The study material was based on two samples, one of 240 forestry experts and the other of 290 appointed representatives. The data was compiled by mail inquiry.
Forestry experts were found to rate the success of the official forestry administration in its tasks lower than did the appointed representatives. Both the forestry experts and appointed representatives were of the opinion that the official forestry administration has been most successful in accomplishing timber production and least successful in the tasks concerning multiple use of forests. The results also indicate that 44% of the forestry experts were of the opinion that the most suitable organization model would be a uniform state organization for both the State, and private owned forests. About a third of the forestry experts considered that the best model would be two different state organizations, one for the State forests and the other for the private forests. 62% of the appointed representatives were of the opinion that the best solution would be to retain the official forestry administration such as it is now.
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In addition to the research carried out by the Faculty of Agriculture and Forestry of the University of Helsinki, the Forest Research Institute, and the State Committee for Agriculture and Forestry, applied forest research is performed in Finland by the Forest department of the Work Efficiency Association, Metsäteho, the Forest Work Study Section of the Central Association of Finnish Woodworking Industries, the Logging Technical Office of the State Board of Forestry (today the Development Section of the Organization Bureau), and Uittoteho, research body for floating questions in Northern Finland.
These establishments are concerned chiefly with the development of and experimentation with working methods, tools and machines in wood harvesting and with the analysis of wage and payment bases for timber preparation and haulage jobs.
An endeavour has been made to coordinate the forest technological research in these institutes and the University of Helsinki and the Forest Research Institute. Each institute is presented in a cooperation organ formed by the Society of Forestry in Finland. This organ also functions as the Finnish section of Nordiska Skogsarbetsstudiernas Råd (NSR). These bodies agree about the division of the research tasks and discuss the research programmes jointly.
In addition, some foundations give notable support to forest research, in particular the Foundation for Forest Tree Breeding, Foundation for Research of Natural Resources in Finland, and SITRA, the Fund for the Jubilee Year 1967 of Finland’s Independence.
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The aim of this paper was to shape and analyse certain alternatives in the development processes in the organization chains of Finnish forestry. The material was collected by analysing market structures and characteristics of competition with regard to raw wood and forest industry products.
The paper presents two alternative ways to rationalize the organization chains between the forest owner’s organizations and forest industry. In the price mechanism of raw wood originating from Finnish private forests there there has been increasing influence of the central organizations of the private forest owners and forest industry. In their relationship, the model of bilateral monopolistic competition can be chosen as a conceptual framework.
Under bilateral monopoly price is fixed as a result of negotiations between competitive parties, and the position and tactics within the negotiations are of great importance for the negotiating parties. Because of the competition, Finnish forest industry cannot compensate the increase in the production costs by raising independently the export prices of its products. This and the fact that the annual earnings of forest workers are fixed by law to the earnings of the workers in wood-processing industry, will cause pressure on stumpage prices.
In the paper two schemes are outlined. In the Scheme 1 a development alternative is described in which the organization chain of private forest owners is supposed to develop to the industry growing direction. In the Scheme 2 the organization chain of private forest owners is supposed to develop to the organizational orientated direction.
It is concluded that as long as the forest owners’ organizational orientated central organization is too weak to form a monopoly as counterweight to the monopsol of forest industry (except the industries of forest owners), it will consider the industry growing direction superior to the organizational orientated alternative.
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This paper aims at creating a picture of the tasks of forestry departments of those enterprises engaged in the wood working industry in Southern Finland, to analyse tasks performed by them and to discover the details from which the tasks have been built. In the first part of the work a general theory of organization study is dealt with from the point of view of structural research, and in the second part the results obtained are applied to the forestry departments.
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