CC BY
93
Section 8. Economics and management
Urinov Bobur Nasilloevich, Senior scientific employee - researcher at "Corporate governance" department, Tashkent state university of economics E-mail: [email protected]
Corporate approach of personnel management: theory and analysis
Abstract: In given the article described necessity of the corporate approach to management of personnel, essence of the corporate approach, value of non-material stimulus in management of the personnel and their formations, also defined characteristic lines of corporate approach to management of personnel.
Keywords: Management, personnel, corporate approach, corporate culture, motivation.
As a goal of any company (corporative organi- with itself integrated systems and consulting in the
zation) is maximization revenue. Consequently, it can be reach by increasing income and decreasing costs, which are operational, administrative and expenses of personal (human recourses). By the other side maximization of income can be extend either by rising operational costs, or by rising labor productivity. It simply means that company again faces with the issue of HR. So today both theory of economy and theory management returned to the issue of significands of HR, and understanding its professional and personal characteristics. By the end of 70th - beginning of 80th there was famous approach called "industrial", according to which success can be reached only by productivity of producing entities, their automatization and employees participating as aiding part. But new conditions of economy pushed into first plan not producing ability but its realization (selling). And standardized method in marketing and selling were non compatible, so we have again HR as the first importance dispute. After "industrial approach" comes "informational-technological approach" (the end of 80th - beginning of 90th) considering technology and degree of informatization (Internet) of business process as a key of success. Which is bringing
sphere of high technologies. But crisis of let's say "New" economy showed us that capacities of internet — business were overestimate, and whole economy reverted back to "traditional" one. Indisputable, it is impossible to imagine nowadays companies without informational technologies and automatized business process, these achievements came to our whole life, but the principles and methods remained "classical".
Today, especially in developing countries states practicing new concepts of governance and management of enterprises, like in Uzbekistan, government implementing "Corporate governance" in governance process of stock companies. There was signed decrees of President of Republic of Uzbekistan (№ 2327-31.03.2015) about further development system of "Corporate governance" at Stock companies.
So nowadays mass media and scientific literature widely using terms like "cooperation", "corporate", "corporate culture", "corporate environment", and they have already extensively spired in business practice of leading companies all over the world. First before discussing these terms, we have to identify what does "corporation" means.
Section 8. Economics and management
In the base of this idea laying establishment of different kind of commercial entities for co-operational goals. Specification of legal executions of such process in different states can only identify common similarities but no any characteristics of "corporations". It is also necessary to mention that this term only used in American economical - legal systems, because in Europe as a juridical term "corporation" is absent, and it corresponding with term "company". Even in US, where the corporations have 20 % in the whole amount acting business entities and cover 90 % of all production and selling of products and services [1], there is no unique criteria of identifying the term "corporation" and legislation of different states give different interpretation of the term. For example in the General law of Delaware State [2] considers following criteria's of corporations:
• Status legal bodies;
• Principe's of Ltd;
• Unlimited existence;
• Free trading opportunity of shares or stocks;
• Centralized governance.
The last one is about giving liability of governance to specific organ — which is about Doctrine of allotment impossibility of shareholders into governance process [3].
As it can be see there is no one unique identification for corporations, but there is one the most suitable to it, it is definition of Rosenberg [4]: "Corporation — is an organization that has set itself certain objectives, acting for the public welfare, has certain rights, a legal entity, acting on a permanent basis with limited liability".
In the Uzbek legislation the term "corporation" has no official registration, and various researchers hold different views on the conceptual framework of this term. Some include as corporations — all commercial membership-based organizations, others — commercial companies and partnerships, and some others — only joint stock companies.
Therefore, by mentioning about certain corporate principles and methods we mean "corporation", not as an economic-legislative entity, but as a form of business organization, which has a wide range of characteristics.
The analysis of main theories of A. Maslow and F. Herzberg and others, allows us to make a following conclusions about main lines and properties ofHR as a part (actor) of corporate system and model:
a) Non-material (Intangible) need are essential for human;
b) Non-material methods are more effective than material (physical).
According to the classical theory of A. Maslow, human in his/her production activity guided by the desire to meet his/her needs, which can be divide into five categories. In modern science, this theory has found its continuation in the work of many researchers, and in this paper I would like to give the option developed in the works of Botykin [5].
It is more important for human to have social needs, self-expression and self-realization, and one of the objectives of the corporate system is to help the employee in achieving these objectives, especially because it will cost much less than direct financial incentives. Of course, money is one of the main driving's of human activity, and the employer can motivate staff by material means, so that the employees could solve all their problems. In management theory, this approach is called "American", but this is quite an expensive way to go. It is much more profitable for the company to use the non-material incentives and offer employees the needs of the highest level by the employer, but are they really effective impact on HR arrangements? So, it is needed to analyze the factors affecting the productivity of workers. American researcher Frederick Herzberg [7] conducted a similar study and found that these motivators for employees are intangible incentives.
Many workers are willing to accept intangible promotion as a result of their work, and moreover, the intangible incentives are the main motivators to increase the productivity of their work. The roots of these phenomena can be see in human psychology, in his/her desire to be recognized and appreciated, in his/her quest to stand out from others. There is even a so-called behavioral theory of equality, which states that the basis of the behavior of the employee is the desire to stand out from the evaluation ofthe functioning of other employees. Nowadays, many companies have come to realize the importance of non-material
2.
3.
incentives of human psychology, and offer to HR the new principles of relations between employer and employee. They can be summarized as follows:
1. Any problem of company — is the problem of HR management;
Any problem of HR management — is a general problem oflinear and personnel services; Understanding and convergence of the objectives of management and staff — are the shortest way of rising effectivity of the company's activity;
The easiest way to achieve understanding between the management and staff — when they have common goals and objectives; In the relations with staff important to pay attention primarily on the psychological rather than physical factors. This approach is called "Corporate" and concluding the perception of all employees as a whole organism. Management formulates the goals and objectives of the company in such way that they are understandable and interesting to employees, and provides a system of motivation and promotion related to the results of collective work. This is a very important point. Management does not separate their own interests from the interests of employees, and offers all the staff working on the implementation of the common objectives, and shifts the responsibility to the employees themselves.
4.
5.
For corporate approach characterized by a form of compensation as a share of employees participating in the company's capital and, as a result, participation in the company's profits. Thus, the income of an employee tied not to his/her own results, but to the result of the work of the whole team in general. Increased interest of workers in their common work and team spirit will be stimulated. From the perspective of the sociology of collective professing corporate principles, gradually drifting from the social institution to a certain image of social unit. The characteristic features of a corporate approach include:
• Convergence of the objectives of management and employees;
• Delegation of the responsibility of the lower hierarchical levels;
• Team spirit within the team.
By choosing a corporate approach, management, consciously or unconsciously chooses the most cost-effective option. From a formal point of view, there is co-operation interests of management and staff, but actually on the staff assigned additional obligations and the "fair" remuneration is directly tied to the result of industrial activity is replaced by non-specific salary and rewards system. Moreover, the company focuses on mechanisms to promote the intangible, which are cheaper than the share in profits from the sale of the product.
References:
1. Лунев Л. В. Тактика и стратегия управления фирмой. - М.: Финпресс, НГАЭиУ, 1997. - С. 18.
2. [Electronic resource]. - Available from: http://www.delawer. gov
3. Батлер У Э., Гаши-Батлер М. Е. Корпорации и ценные бумаги в России и США. - М.: Зерцало, 1997.
4. Розенберг Д. М. Бизнес и менеджмент. Терминологический словарь. - М.: ИНФРА-М, 1997. - С. 105.
5. Бовыкин В. И. Новый менеджмент: (управление предприятием на уровне высших стандартов; теория и практика эффективного управления). - М.: Экономика, 1997.
6. Хлюнева М. В., Звезденков А. А., Верхоглазенко В. Н. Пирамида Маслоу плюс или Когда бесспорное стало сомнительным/ДЕЬСтотс resource]. - Available from: http://www.dis.ru
7. Duncan W. Jack. Great Ideas in Management. - San Francisco, Oxford, 1990.
