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UDC 005.95/96+005.35]л658(477) JEL: L26; M12; M14; M59
HR MANAGEMENT BY VALUES AS AN INNOVATIVE WAY TO IMPROVE PERSONNEL WORK
®2020 LIAKH I. O., LYTVYN O. I.
UDC 005.95/96+005.35]л658(477) JEL: L26; M12; M14; M59
Liakh I. O., Lytvyn O. I. HR Management by Values as an Innovative Way to Improve Personnel Work
The article is aimed at generalizing the theoretical and practical foundations of HR management by values, allocating the difficulties of such management. The theoretical studies of Western and domestic scholars on the management by values are analyzed, which, according to the authors of the article, is one of the most effective ways to improve personnel work. Involving staff in the decision-making process is possible in any management model. Values change the behavior of the staff. Each company has its own values, and the behavior of employees is grounded on basic values. As a result of the research carried out on the basis of one of the largest banks in Ukraine - JSC CB «PrivatBank» - five main directions of improvement in motivation of labor are proposed, which are also the main problems of the financial organization, which need to be addressed. An analysis of the bank's system of motivation showed that HR management is carried out through a combination of administrative, economic and socio-psychological management methods. It is determined that the development and implementation of the values system in the company is as follows: development of key criteria for the value system (for this are created working groups of key employees); interviewing staff to determine the importance of each criterion to them; conducting a survey among employees to determine the extent to which each criterion is implemented in the company; analyzing the employees' perception of the company's existing values system based on the data obtained. Recommendations for hiring staff are proposed, as outlined in the checklist to valuate the quality of the candidate as a future employee. The difficulties of management by values at Ukrainian enterprises are substantiated. Based on the authors' own research, the core values from the employee's point of view are proposed. Also recommendations to improve the company's personnel policy in the context of HR value management are proposed. Keywords: management, staff, values, personnel work, personnel policy, motivation. DOI: https://doi.org/10.32983/2222-4459-2020-6-328-333 Tabl.: 3. Bibl.: 10.
Liakh Inna O. - PhD (Economics), Associate Professor of the Department of Management and Administration, Educational and Research Institute «Karazin Business School» of V. N. Karazin Kharkiv National University (1 Myronosytska Str., Kharkiv, 61002, Ukraine) E-mail: liakh@karazin.ua
Lytvyn Olha I. - Student, Educational and Research Institute «Karazin Business School» of V. N. Karazin Kharkiv National University (1 Myronosytska Str., Kharkiv, 61002, Ukraine)
E-mail: olyalytvyn17@gmail. com
УДК 005.95/96+005.35]л658(477) JEL: L26; M12; M14; M59
Лях I. О., Литвин О. I. Управл'шня персоналом за цшностямияк шовацшний шлях удосконалення кадровоïроботи
Метою cmammi е узагальнення теоретичних i практичних засад щодо управл'шня персоналом за цшностями, виокремлення складнощв такого управлшня. Проанал'вовано теоретичн дотдження заядних i втчизнянихучених стосовно управл'тня за цнностями, яке, на думку автор'ю стат-т'1, е одним iз найбльш ефективних шляхiв удосконалення кадровоÏроботи. Залучення персоналу в процес прийняття ршень можливе в будь-я^й
модел'> менеджменту. ЦНностi змшюють поведжу персоналу. У кожноi компанИ сво! ц/нност/, та поведжа ствробтниюв будуеться на базових цнностях. У результатi проведених доМжень на базi одного з найб'шьших бант Укра:ни - АТ КБ «ПриватБанк» - запропоновано п'ять основних на-прямшв полпшення мотивацИ прац1 якi також е головними проблемами ф'шансовоi оргашзац« та потребують виршення. Анал'в системи мотивацИ прац в банку показав, що управлння персоналом здйснюеться за допомогою поеднання адмнстративних, економiчних i соцiально-психологiчних метод'в управлння. Визначено, що розробка та впровадження системи цнностей у компанИв'дбуваеться таким чином: розробка ключових кри-терпв системи цнностей (для цього створюються робоч групи з ключових ствробтниюв); проведення опитування серед ствро&тнишв з метою визначення важливостiкожного критерю для нього; проведення опитування серед ствробтнишв зметою визначення ступеня реал'ваци в компанИ кожного критерю; проведення аналзу сприйняття сшвробтниками кнуючоi системи цнностей компанИна основi отриманих даних. Запропоновано рекомендацИ по найму персоналу, як викладеш в чек-лист'> щодо оцнки якост'> кандидата як майбутнього працюника. Обфунтовано складнощi управл'шня за цнностями тдприемствами Украни. Виходячи iз власних доМжень запропоновано основн цнност'> з точки зору сшвробтника. Також наведено рекомендацИ щодо вдосконалення кадровоi полтики шдприемства в контекстi управлшня персоналом за цнностями. Ключов'! слова: управлшня, персонал, щнност^ кадрова робота, кадрова полтика, мотива^я. Табл.: 3. Ббл.: 10.
Лях 1нна Олександрiвна - кандидат економiчних наук, доцент кафедри управлшня та адм'нктрування, Навчально-науковий 'нститут «Каразн-ська школа б'внесу» Хар^вського нацонального ушверситету iменi В. Н. Каразша (вул. Мироносицька, 1, Харт, 61002, Украна) E-mail: liakh@karazin.ua
Литвин Ольга lгорiвна - студентка, Навчально-науковий нститут «Каразнська школа б'внесу» Хар^вського нацонального ушверситету 'мен В. Н. Каразна (вул. Мироносицька, 1, Харт, 61002, Украна) E-mail: olyalytvyn17@gmail.com
УДК 005.95/96+005.35]л658(477) JEL: L26; M12; M14; M59
Лях И. А., Литвин О. И. Управление персоналом по ценностям как инновационный путь совершенствования кадровой работы
Целью статьи является обобщение теоретических и практических основ управления персонала по ценностям, выделение трудностей такого управления. Проанализированы теоретические исследования западных и отечественных ученых относительно управления по ценностям, которое, по мнению авторов статьи, является одним из наиболее эффективных путей совершенствования кадровой работы. Вовлечение персонала в процесс принятия решений возможно в любой модели менеджмента. Ценности меняют поведение персонала. У каждой компании свои ценности, и поведение сотрудников строится на базовых ценностях. В результате проведенных исследований на базе одного из крупнейших банков Украины - АО КБ «ПриватБанк» - предложено пять основных направлений улучшения мотивации труда, которые также являются главными проблемами финансовой организации, требующими решения. Анализ системы мотивации труда в банке показал, что управление персоналом осуществляется с помощью сочетания административных, экономических и социально-психологических методов управления. Определено, что разработка и внедрение системы ценностей в компании происходит следующим образом: разработка ключевых критериев системы ценностей (для этого создаются рабочие группы из ключевых сотрудников); проведение опроса среди сотрудников с целью определения важности каждого критерия для него; проведение опроса среди сотрудников с целью определения степени реализации в компании каждого критерия; проведение анализа восприятия сотрудниками существующей системы ценностей компании на основе полученных данных. Предложены рекомендации при найме персонала, изложенные в чек-листе по оценке качества кандидата как будущего работника. Обоснованы сложности управления по ценностям предприятиями Украины. Исходя из собственных исследований предложены основные ценности с точки зрения сотрудника. Также представлены рекомендации по совершенствованию кадровой политики предприятия в контексте управления персоналом по ценностям. Ключевые слова: управление, персонал, ценности, кадровая работа, кадровая политика, мотивация. Табл.: 3. Библ.: 10.
Лях Инна Александровна - кандидат экономических наук, доцент кафедры управления и администрирования, Учебно-научный институт «Кара-зинская школа бизнеса» Харьковского национального университета имени В. Н. Каразина (ул. Мироносицкая, 1, Харьков, 61002, Украина) E-mail: liakh@karazin.ua
Литвин Ольга Игоревна - студентка, Учебно-научный институт «Каразинская школа бизнеса» Харьковского национального университета имени В. Н. Каразина (ул. Мироносицкая, 1, Харьков, 61002, Украина) E-mail: olyalytvyn17@gmail.com
In the current context of unstable development of At the turn of the century, the idea was expressed
the Ukrainian economy, the construction of effective that there observed a transition from management by in-
personnel w°rk in enterprises in Ukraine is one of structions to management by values [3]. P. Pruzan previ-
the primary conditions for them to achieve a sustainable ously indicated that there was a shift from the traditional
financial result. The integration of Ukraine into the Eu- management approach, based on direct control and per-
ropean community and other international processes, on c i u j
formance monitoring, to a value-based perspective ap-
proach [6].
the one hand, contribute to the introduction of new progressive management mechanisms in organizations, and, on the other hand, require new management approaches Regarding the values of the personnel of organiza-
in order to increase effectiveness of personnel manage- tions, the words of management classics T- Peters and R-
ment systems. Waterman should be cited, "...the real role of the chief
According to the author, the most effective way to executive is to manage the values of the organization" [8].
improve personnel work is to introduce values in the or- The values of the organization's personnel form corpo-
ganization of personnel management. rate culture.
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The book of T. Peters and R. Waterman "In Search of Excellence: Lessons from America's Best-Run Companies" [8] is one of the first works on the problems of personnel management by values. It describes the concept of 7C, the central component of which is corporate values as a resource for the development of an organization.
Further promotion of the idea of using corporate values to manage companies is associated with the names of S. Dolan and S. Garcia [3]. They argue that values management has a threefold goal:
+ to simplify the organizational problems that arise in connection with the growing need to adapt to changes at all levels of the company; + to indicate the strategic vision of the future of the company;
+ to ensure the dedication of each employee to daily high-performance work.
From a practical point of view, the goal of value-based management is to create conditions under which employees can work independently and effectively to achieve the goals of the company [5]. K. Jaakson defines management by values as "a series of interrelated managerial activities to ensure the acceptance of relevant organizational values inside and outside the organization" [4].
Modern innovative approaches to social development of an enterprise stimulate and form its fundamentally new strategic directions. One of these is the effective personnel management based on the value system formed by the enterprise itself. Under modern conditions, considering the mechanism of personnel management as a whole, it is necessary to start with the value system, and then choose forms and methods of personnel management, build a personnel policy (selection, training, personnel development), take into account the influence of external and internal factors. The foundation of personnel management is organizational culture with its functions: security, integrational, regulatory, motivational, economic one, etc. [7].
In support of the trend towards the transition to value management, a number of well-known companies (General Electric, Microsoft, Levi Strauss, AT&T, etc.) began to integrate values into their business practice. Examining a number of successful companies, J. Collins and J. Porras came to the conclusion that all of them did not change either their core goals or core values while their business strategies and practices were repeatedly adapted to changing conditions. This allowed them to become unique organizations able to innovate and achieve impressive results over a long period [2].
The work of A. Skobtseva identified the important role of corporate culture. According to the research, 86% of companies around the world recognized that the key to success of their business in highly competitive realities was a healthy corporate spirit. Due to the increased involvement of personnel, companies were able to improve the quality of work by 44% and increase profits by 22% per year [9].
American researchers K. Cameron and R. Quinn [1], analyzing the characteristics of the cultures of several hundred organizations, identified four basic types:
+ clan culture, which is similar to a family, tribe, sect, where people have a lot in common. The organization is held together by a commitment to tradition;
+ adhocracy culture (from the Latin. Ad hoc - "on occasion", situationally), which suggests a creative, innovative association. The unifying essence, value is the willingness to constant change, experimentation, innovation; + hierarchy culture, which implies structured and formalized environment. It is controlled by procedures;
+ market culture, which is aimed at achieving results. Competition, desire to become the best are welcome here.
In any organization, there are always elements of all basic cultures in various proportions. However, one of the described cultures always prevails.
Value-based management rests upon corporate ideology. Ideology is a system of views and ideas that determines the values of a company, its corporate culture, vision and development concept. Ideology is consciously created by chief executives as a tool for management and development of an organization [10].
Our studies were conducted on the basis of one of the largest banks in Ukraine, Joint Stock Company Commercial Bank "PrivatBank". Personnel management at the bank is in charge of its HR Management Department, which performs the functions of personnel planning, selection and hiring; career guidance; staff adaptation; professional training and staff development.
Based on the analysis of the bank's main structural unit dealing with human resources management, we came to the conclusion that it has the following tasks: planning staffing and staff movement; organizing staff recruitment and placement; analizing professional and personal qualities of the bank's employees; organizing HR management; assessing and certifying the bank's employees; organizing staff training and development; forming a personnel reserve, organizing leadership development and career management; improving working conditions and solving social issues; developing motivation of the bank's employees.
In general, we can note that "PrivatBank", in order to retain the best employees, as well as increase its reliability and efficiency, needs to do the following:
+ to find out what its employees really want (by communicating with them and continuous feedback);
+ to provide a wide range of career opportunities
and development for its employees; + to introduce a system of criteria and incentives that clearly show what exactly the bank expects
from its employees, and how they should work to be rewarded.
In the optimal amount, the planned need for personnel can be facilitated by promoting the bank's employees or by hiring. Promotion may require retraining. It is also needed in order to prevent the aging of personnel.
Improving the management process is possible through staff development and enhancing the personnel assessment system.
Personnel training helps, on the one hand, increase efficiency of the bank and professional growth of its employees, on the other hand, strengthen its authority for partners and customers, and further develop the entire banking industry.
Features of the formation of the banking staff development system depends on the specifics of banking activities in general (working with clients, introducing new services, new software, new banking products, etc.), features of the bank (its strategic objectives, financial status, size, banking operations), as well as material resources, the willingness of the bank's management to invest in the development of its staff.
Thus, the construction of an effective and versatile personnel development system unser the current conditions allows Joint Stock Company Commercial Bank "PrivatBank" to solve a whole range of management tasks, form a highly professional and motivated team, as well as increase the bank's competitiveness.
We can define five main areas for improving labor motivation, which are also the five main problems that need to be addressed. In view of this, the following recommendations were developed (Tbl. 1).
Table 1
Five major problems and recommendations for their solution in JSC CB "PrivatBank"
Problem Solution Recommendations
Material incentive Applying a performance-based employee incentive program
Staff quality Introducing a continuing education system
Labour organization Implementing and rewarding initiatives of employee, not just those of managers
Personnel involvement in the management process Implementing the democratic principle "to hear all opinions"
Intangible incentive Accounting for the employee's identity in providing intangible incentives
Source: developed by the authors.
Analysis of the system of labor motivation in "PrivatBank" showed that personnel management is carried out using a combination of administrative, economic and socio-psychological management methods. The ba-
sis of the personnel incentive system is organizational and technical methods that optimize the construction of a labor efficiency management system.
The system of motivation of JSC CB "PrivatBank" and its impact on the performance of its personnel are given in Tbl. 2.
The used socio-psychological methods are effective non-material means of improving employee performance, creating a favorable psychological climate in the team and a sense of belonging to the organization. The established at the bank stable amount of staff remuneration prevents an increase in the staff turnover and reduces the cost of finding new labor resources.
Most people go to work for a salary. Salary motivates, but not enough. Good employees are motivated by career opportunities. They think in terms of the future. Using only material incentives is not efficient even in the West. A balanced set of different motivation groupspo-vides a good result.
In general, well-framed efforts to develop a career management system in a bank can help employees in determining their own needs for promotion, provide information on relevant career opportunities within the financial organization, and combine the needs and goals of an employee with the goals of the organization. The formation of the system can reduce the aging of human resources, which are so expensive for a bank. In addition, the career counseling system is able to provide considerable assistance to the bank's management in terms of understanding the motivation of their employees and adjusting the methods and incentive programs used.
When hiring the staff, it is advisable to follow the recommendations set out on the checklist for assessing qualities of a candidate as a future employee (Tbl. 3).
We believe that the main criterion in the formation of a bank's personnel should be human values. You can prepare a person professionally very quickly, but values are difficult to change.
Difficulties in managing values: + the value should be similar to those of the person. Most people can not define their values, are not capable of self-identification; + a person cannot accept a value when at work and abandon it when leaving work. Not all employees see their work as a place they live; + the organization should have a leader obsessed with the idea, who could be be an example to follow;
+ when recruiting staff, a rigorous selection should be performed with consideration for the organization's values.
The introduction of changes in the company always causes resistance. It can be optimized but not eliminated. Most people don't like something in the company. A person's own goal may not coincide with the mission of the company. However, a balance between the interests
Table 2
Incentive program of JSC CB "PrivatBank" and its impact on the personnel performance
Motivation group Motives and incentives + To personnel performance (according to expert observations of the author)
Material incentives Salary, participation in profits, acquisition of shares, performance-based payments +50%
Non-material incentives Diplomas of Merit, valuable gifts, title, souvenirs, oral encouragement, good relations with colleagues and top managers +25%
Career Opportunity, Decision-Making Freedom of choice and action, satisfaction of an employee's own ambitions, achievement of a higher position in society, application of his/ her knowledge and skills, justified expectations +10%
Social Security Health and pension insurance, social benefits, recreational opportunities, special working conditions +5%
Group motivation Mission, corporate culture, team affiliation, socio-psychological climate +5%
Training, continuing education Trainings, courses, seminars, adaptation of new employees, new knowledge +5%
Source: developed by the authors.
Table 3
Checklist for assessing qualities of a candidate as a future employee (for the management of departments of JSC CB "PrivatBank")
Qualities of the candidate Score
Formal parameters
Personal qualities
Professional qualities
Health status
Appearance
Job specific qualities
Source: developed by the authors.
of employees and the interests of the company must be achieved.
The development and implementation of a value system in a company includes the following stages:
+ developing basic criteria of the value system (for this purpose, working groups of key employees are created);
+ conducting a survey among the company's employees in order to determine the importance of each criterion for him/her; + conducting a survey among the employees in order to determine the degree to which each criterion is implemented in the company; + analizing employee perceptions of the existing value system of the company based on the data obtained.
The survey is conducted among the company's employees anonymously.
Based on our own research, we offer the following core values from the point of view of an employee: + product (work) value:
a) interesting work;
b) decent salary;
c) career growth, promotion;
e) training and development;
g) incentive program;
+ company value:
a) company image;
b) prestige of working in the company;
c) corporate culture;
e) social programs;
g) company stability;
+ individual (leader) value:
a) leadership qualities;
b) professional qualities;
c) attention to employees;
e) encouragement of initiatives;
g) focus on achievements.
Involvement of personnel in the decision-making process is possible in any management model. It should be borne in mind that values change the staff behavior. Each company has its own values and employee behavior is based on core values.
The personnel policy in JSC CB "PrivatBank" should be aimed at creating a systematic work with personnel in order to achieve not only economic effect, which is extremely important, but also social effect, which is even more important. We believe that in the personnel policy of an enterprise, two aspects of work of the HR department should be distinguished. The first direction is associated with the awareness of the person-
nel of the rules, norms, values adopted by the enterprise. The second aspect of work of the HR department is the degree of openness of the enterprise to the outside world, i.e., orientation toward either its own or attracted personnel. Our own observations show that the focusing of a company on its own personnel, i.e., when employees understand the transparency of career building, tangible and intangible incentives, is a more productive approach in a strategic perspective.
We have defined five main recommendations for improving the personnel policy of an enterprise in the context of personnel management by values:
+ improving personnel quality due to enhancing
quality of attraction and selection of specialists; + implementing performance-based incentives; + using intangible incentives depending on the values of an individual employee; + involving personnel in the management process on the principles of social partnership between employees of the enterprise; + improving the organization of labor through using feedback between managers and employees.
CONCLUSIONS
Today, in Ukraine, there are a number of factors that, on the one hand, require applying new technologies, and, on the other, introduceing personnel value-based management. Based on the foregoing, we conclude that management by values is a systematic work. It should be carried out in the following areas: implementation of team work in the company, client focus, fairness to staff, and initiative.
Thus, we can summarize the results obtained during the study. Firstly, today, prerequisites for domestic enterprises to actively introduce the concept of "value management" into the management system have formed. Secondly, it is determined that the consistency of the beliefs and values of managers with the values of employees is one of the key factors in improving team performance and company profits. This has urged the need to develop appropriate tools to identify the most significant values through the synthesis of employees's ideas at different levels. ■
LITERATURE
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2. Collins J. C., Porras J. I. Built to Last: Successful Habits of Visionary Companies. 3rd ed. New York : Harper Business, 1994. 368 p.
3. Dolan S. L., Garcia S. Managing by values: Cultural redesign for strategic organizational change at the dawn of the twentyfrst century. Journal of Management Development. 2002. Vol. 21. Issue 2. P. 101-117.
DOI: 10.1108/02621710210417411
4. Jaakson К. Management by values: Are some values better than others? Journal of Management Development. 2010. Vol. 29. Issue 9. P. 795-806.
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