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Types of logistics strategies in modern Russian companies and goals of their implementation
Ponomarev Alexey Sergeevich, Rostov State Economic University, Postgraduate Student E-mail: logistica@rambler.ru
Types of logistics strategies in modern Russian companies and goals of their implementation
Abstract: The article describes the main types of logistics systems in the Russian context, and basic directions of their implementation in modern companies are defined. A practical comparison between the effectiveness of construction of a logistics chain and effectiveness of a company’s activity was performed. The strengths and weaknesses of logistics strategies were revealed on the basis of sociological analysis; beneficial final goals were identified; a classification of Russian companies upon the principle of implementation of logistics strategies was conducted. The performed analysis of data shows that a significant number of companies realize «pure» strategies and only 33 % realize combined ones. Classifications presented in the research are of interest for the interpretation of the obtained results from the point of evaluation of the level of market orientation of modern Russian companies and role of logistics strategies realized by them in order to achieve their goals.
Keywords: adaptive logistics, management, logistics strategy, Russian companies, a strategy focused on the process, a strategy focused on the exchange of information, a strategy focused on the market, mixed strategy, coordination of logistics.
Intensive implementation of a strategic approach in the management of modern business [1] implies, particularly, a formation of a business strategy on the basis of interaction of strategies of different functional spheres of the company’s activity [2]. So far, quite a big number of researches aimed at studying the optimal approaches to the development of a logistics strategy and creation of classifications of these strategies used in practical business as well as classifications of the logistics systems has been performed. Thus, foreign authors [3] carried out a comparative study of the importance of two groups of factors in the achievement of the company’s commercial success: specifics of the external environment of the conduct ofbusiness [4; 5] and organization of interaction with firms-partners [6] (including those participating in the chains of supply of the goods produced by the companies). One of the modern classifications [7] implies the division of channels according to the promptness of functioning as well as ability to react to a change of expectations of companiespartners. According to another classification [8], there are four different types of channels:
- channels oriented to the effectiveness during the design of which the exclusion of non-compulsory elements and steps directed to optimization of the work of the entire system enable to reach a low level of costs;
- channels oriented to a low level of risk that reserve a part of supplied products in order to prevent the disruption of supply;
- flexibly functioning channels oriented to active reaction in case of a change of expectations of the firmspartners;
- dynamically developing channels that accumulate the strengths of three described above types of systems.
Bowersox & Daugherty [9] proposed a classification containing three main types of logistics strategies of companies-producers:
- a strategy focused on the process — «management of a standard logistics system with the purpose of costs control»;
- a strategy focused on the market — «management of the selected components of logistics system in order to create more comfortable conditions for the clients»;
- a strategy focused on the exchange of information — «management of a logistics system in order to achieve optimal level of interaction of the participants of supply chain».
The works of other authors [10; 11] describe the main expected results of realization of the selected logistics strategy:
- effectiveness of coordination of logistics;
- execution of obligations before clients;
- competitiveness of the company.
The objectives of the present research:
1. Identification of the types of logistics strategies realized by Russian companies;
2. Identification of the expected results of functioning of logistics systems in Russian companies.
Methods of research
To identify the type of a logistics strategy of the company and goals of functioning of logistics systems, questionnaires described by foreign specialists [12] (Tables 1 and 2, respectively) were used.
A five-point scale was used to evaluate the results of the questionnaire for each question (Table 3).
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Table 1. - Affirmations oriented to identification of the approach to the management of logistics (content of the logistics strategy)
Identified strategy Question formulation
Strategy focused on the process 1. The management of my company (department I work for) sets a task to achieve maximum economic efficiency of production, purchase and distribution of goods
2. The main goal of the logistics service in my company is to reduce the costs in purchase, production and distribution of products
3. In my company (department I work for), the logistics service reduces costs and reserves of raw material/component parts on the basis of use of technologies similar to Just-in-Time concept
Strategy focused on the market 1. The management of my company (department I work for) sets a task to achieve maximum level of indicators of operation of goods delivery system corresponding to the clients’ needs
2. The main goal of the logistics service in my company is to achieve maximum simplification (for the client) of the process of interaction with the company
3. In my company (department I work for), the logistics service coordinates the operation of several subdivisions aimed at achieving a high level of competitiveness of the client service system
Strategy focused on the exchange of information 1. The management of my company (department I work for) gives a lot of importance to achievement of a coordinated interaction with wholesale companies, transport companies, retail organizations and other participants of the process
2. The main goal of the logistics service in my company is to control information flows as well as stock by way of setting optimal functioning of goods distribution channels
3. In my company (department I work for), the logistics service is predominantly oriented to the management of information exchange between the participants of goods distribution system — wholesale companies, transport companies, retail organizations
Table 2. - Affirmations oriented to identification of results of logistics strategy implementation
Question formulation
Effectiveness of coordination of logistics 1. A need for a closer coordination of actions with suppliers, customers and other participants of the goods movement channel stimulated the formation of effective interaction between different departments in my company
2. In my company, the planning of the logistics service operation is well-coordinated with the general process of strategic planning in the company
3. In my company (department I work for), the operation of logistics service is well-coordinated with clients, suppliers and other participants of goods movement channel
Execution of obligations before clients 1. Elevation of effectiveness of the operation of client service system (in our company) is a result of realization of staff training programs
2. The operation of client service system in my company/department is well-coordinated with other areas of operation of logistics service
3. The operation of client service system in my company/department is one of the competitive advantages of my company
Competitiveness of the company 1. Compared with the competitors, our company/department reacts faster and more effectively to the change of needs of clients and suppliers
2. Compared with the competitors, our company/department reacts faster and more effectively to the change of strategies of competitive companies
3. Compared with the competitors, our company/department develops and promotes new products on the market faster and more effectively
Table 3. - Questionnaire results evaluation scale
1 2 3 4 5
Absolutely true True Partly true False Absolutely false
34 managers (directors) operating logistics complexes took part in the questionnaire survey. The results were processed with the help of MS Excel functions. In accordance with the proposed scale (Table 3) in the questionnaire, respondents assessed the weight of every answer for every affirmation. Answers with 1, 2 and 3 points imply the ability to implement to
this or that extent a certain logistics strategy in the company. 4 and 5 points discard the realization of the logistics strategy or a concrete result of the system’s functioning.
Thus, if the mean evaluation of answers to the set questions during the identification of a concrete type of logistics strategy is below 3, one can consider that this strategy is realized
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to some extent in the company, according to the respondent’s opinion. Herewith, the closer the mean evaluation is to 1, the bigger the extent of the degree of the company’s orientation to realization of this strategy is. If the mean evaluation is above 3, this strategy is not realized in the company. The answers of respondents to affirmations characterizing the results of logistics strategy implementation were assessed similarly.
Research results
The analysis of respondents’ answers showed that all strategies are realized to this or that extent in the studied companies (there were no respondents’ answers with mean evaluation above 3). In order to reveal the dominating logistics strategy in the company, comparison of obtained mean points for each type of logistics strategies was performed. In
accordance with the selected score system, the dominating strategy in the company received the lowest score. The presence of the only minimum indicated the realization of a single («pure») logistics strategy by the company. In case of several lower scores (over one), it was concluded that the company was realizing a combined logistics strategy.
Obtained results demonstrated that both, three «pure» types of logistics strategies (strategy focused on the process; strategy focused on the market; strategy focused on the exchange of information) and «combined» strategies were used in the studied companies (Table 4).
Results of processing of the questionnaire survey for the logistics service directors of the companies are presented in Table 5 and Figure 1.
Table 4. - Logistics strategies realized by the studied companies
Logistics strategies Reference
Strategy focused on the process PROCESS
Strategy focused on the market MARKET
Strategy focused on the exchange of information INFO
Combined strategies
Strategy focused on the process + strategy focused on the market PROCESS+MARKET
Strategy focused on the process + strategy focused on the exchange of information PROCESS+INFO
Strategy focused on the market + strategy focused on the exchange of information MARKET+INFO
Strategy focused on the process, market and exchange of information PROCESS+MARKET+INFO
Table 5. - Number of companies realizing different types of logistics strategies
Logistics strategies Reference Number of companies
Strategy focused on the process PROCESS 15
Strategy focused on the market MARKET 7
Strategy focused on the exchange of information INFOR 1
Strategy focused on the process, strategy and focused on the market PROCESS+MARKET 4
Strategy focused on the process and strategy focused on the exchange of information PROCESS+INFO 3
Strategy focused on the market and strategy focused on the exchange of information MARKET+INFO 3
Strategy focused on the process, market and exchange of information PROCESS+MARKET+INFO 1
9% 3%
21%
□ process; ■ VI АНКЕТ □ ГМГО
□ PROCESS-MARKET ■ PROCESS-] NEO □ MARKET+INFO
■ PROCESS' MARKET-INFO
1. Percentage correlation of types of logistics strategies realized by the studied companies
Fig.
The most common logistics strategy in Russian companies is the strategy focused on the process (PROCESS) applied by 43 % of the studied logistics complexes. The strategy focused on the market (MARKET) was chosen by 21 % of the studied companies and the strategy focused on the exchange of information (INFO) was applied by 3 %.
33 % of the studied companies realize combined strategies:
- strategy focused on the process and strategy focused on the market (PROCESS+MARKET) — 12 %;
- strategy focused on the process and strategy focused on the exchange of information (PROCESS+INFO) — 9 %;
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- strategy focused on the market and strategy focused on the exchange of information (MARKET+INFO) — 9 %.
3 % of companies realize a combined logistics strategy focused on the process, market and exchange of information (PROCESS+MARKET+INFO) to equal extent.
It should be noted that in the companies with a combined strategy, 73 % of cases in its structure refer to the strategy focused on the process (PROCESS — Table 6),
in 73 % of cases — the strategy focused on the market and in 64 % of case — the strategy focused on the exchange of information.
The data characterizing the results of implementation of logistics strategies in the studied companies is presented in the table below (Table 7).
Processed results of the performed survey are presented in Table 8.
Table 6. - Shares of different variants of combined strategies
Combined strategies Share, %
Strategy focused on the process and strategy focused on the market 36.36
Strategy focused on the process and strategy focused on the exchange of information 27.27
Strategy focused on the market and strategy focused on the exchange of information 27.27
Strategy focused on the process, market and exchange of information 9.10
Table 7. - Expected results of functioning of logistics systems in the studied companies
Results of implementation of logistics strategies Reference
Effectiveness of coordination of logistics ECL
Execution of obligations before clients EOBC
Competitiveness of the companies CC
Combined approaches
Effectiveness of coordination of logistics and execution of obligations before clients ECL + EOBC
Effectiveness of coordination of logistics and competitiveness of the company ECL + CC
Execution of obligations before clients and competitiveness of the company EOBC + CC
Effectiveness of coordination of logistics, execution of obligations before clients and competitiveness of the company ECL + EOBC + CC
Table 8. - Information about the results of implementation of logistics strategies in the studied companies
Approach to realization of a logistics strategy Number of companies realizing the approach
Effectiveness of coordination of logistics 18
Execution of obligations before clients 1
Competitiveness of the company 7
Combined approaches
Effectiveness of coordination of logistics and execution of obligations before clients 0
Effectiveness of coordination of logistics and competitiveness of the company 6
Execution of obligations before clients and competitiveness of the company 0
Effectiveness of coordination of logistics, execution of obligations before clients and competitiveness of the company 2
Thus, obtained data showed that the biggest share in the studied companies refers to the achievement of effectiveness of logistics activity of the company (ECL) — 52 % (Figure 2); 21 % refers to the approach aimed at elevation of competitiveness (CC); 18 % refers to effectiveness of coordination
of logistics and elevation of competitiveness simultaneously (ECL + CC).
Tables 9 and 10 present summary results of the research indicating the number of companies realizing different types of logistics strategies and achieved outcomes.
Fig. 2. Expected results of functioning of logistics systems in the studied companies
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Types of logistics strategies in modern Russian companies and goals of their implementation
Table 9. - Types of logistics strategies and expected results of their implementation in the studied companies (absolute values)
Logistics strategy Result of logistics strategy implementation Number of companies implementing the approach
PROCESS ECL 8
PROCESS EOBC 0
PROCESS CC 3
PROCESS ECL + EOBC 0
PROCESS ECL + CC 4
PROCESS EOBC + CC 0
PROCESS ECL + EOBC + CC 0
MARKET ECL 3
MARKET EOBC 0
MARKET CC 3
MARKET ECL + EOBC 0
MARKET ECL + CC 1
MARKET EOBC + CC 0
MARKET ECL + EOBC + CC 0
INFO ECL 1
INFO EOBC 0
INFO CC 0
INFO ECL + EOBC 0
INFO ECL + CC 0
INFO EOBC + CC 0
INFO ECL + EOBC + CC 0
PROCESS + MARKET ECL 2
PROCESS + MARKET EOBC 1
PROCESS + MARKET CC 0
PROCESS + MARKET ECL + EOBC 0
PROCESS + MARKET ECL + CC 0
PROCESS + MARKET EOBC + CC 0
PROCESS + MARKET ECL + EOBC + CC 1
PROCESS + INFO ECL 1
PROCESS + INFO EOBC 0
PROCESS + INFO CC 0
PROCESS + INFO ECL + EOBC 0
PROCESS + INFO ECL + CC 1
PROCESS + INFO EOBC + CC 0
PROCESS + INFO ECL + EOBC + CC 1
MARKET + INFO ECL 3
MARKET + INFO EOBC 0
MARKET + INFO CC 0
MARKET + INFO ECL + EOBC 0
MARKET + INFO ECL + CC 0
MARKET + INFO EOBC + CC 0
MARKET + INFO ECL + EOBC + CC 0
PROCESS + MARKET + INFO ECL 0
PROCESS + MARKET + INFO EOBC 0
PROCESS + MARKET + INFO CC 1
PROCESS + MARKET + INFO ECL + EOBC 0
PROCESS + MARKET + INFO ECL + CC 0
PROCESS + MARKET + INFO EOBC + CC 0
PROCESS + MARKET + INFO ECL + EOBC + CC 0
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Table 10. - Types of logistics strategies and expected results of their implementation in the studied companies (relative values)
Type of a company’s strategy Strategy implementation result Share, %
Strategy focused on the process Effectiveness of coordination of logistics 24
Strategy focused on the process Competitiveness of the company 9
Strategy focused on the process Effectiveness of coordination of logistics and competitiveness of the company 12
Strategy focused on the market Effectiveness of coordination of logistics 9
Strategy focused on the market Competitiveness of the company 9
Strategy focused on the market Effectiveness of coordination of logistics and competitiveness of the company 3
Strategy focused on the exchange of information Effectiveness of coordination of logistics 3
Strategy focused on the process + strategy focused on the market Effectiveness of coordination of logistics 6
Strategy focused on the process + strategy focused on the market Execution of obligations before clients 3
Strategy focused on the process + strategy focused on the market Effectiveness of coordination of logistics and competitiveness of the company 3
Strategy focused on the process + strategy focused on the exchange of information Effectiveness of coordination of logistics 3
Strategy focused on the process + strategy focused on the exchange of information Effectiveness of coordination of logistics and competitiveness of the company 3
Strategy focused on the process + strategy focused on the exchange of information Effectiveness of coordination of logistics, execution of obligations before clients and competitiveness of the company 3
Strategy focused on the market + strategy oriented on the exchange of information Effectiveness of coordination of logistics 9
Strategy focused on the process, market and exchange of information Competitiveness of the company 3
The most common variant in the practice of the studied Russian companies is the realization of the strategy focused on the process (PROCESS) aimed at achieving the results of effectiveness of coordination of logistics (ECL) — 24 % of all studied companies (Table 10).
Out of all studied companies realizing the strategy focused on the process (PROCESS), 24 % of the companies aim at achieving the effectiveness of coordination of logistics (ECL); 12 % of the companies aim at the combine variant of strategy realization — effectiveness of coordination of logistics + competitiveness of the company (ECL + CC); 9 % of the companies aim at competitiveness of the company (CC).
Companies realizing the market strategy (MARKET), in 9 % of cases direct their activity to achieve the effectiveness of coordination of logistics (ECL); in 9 % of cases, they aim at the competitiveness of the company (CC); and in 3 % of cases they aim at the effectiveness of coordination of logistics and competitiveness of the company simultaneously (ECL + CC).
Strategy focused on the exchange of information (INFO) is realized by 3 % of companies using the approach oriented to the effectiveness of coordination of logistics (ECL).
At implementation of the combined (focused on the process and market) strategy (PROCESS + MARKET), the expected result of functioning of logistics system «effectiveness of coordination of logistics» (ECL) is pursued by 6 % of the companies; «execution of obligations before clients»
(EOBC) is pursued by 3 %; and the approach «effectiveness of coordination of logistics» + «execution of obligations before clients» + «competitiveness of the company» (ECL + EOBC + CC) is pursued by 3 %.
Realization of another combined strategy (focused on the process and exchange of the information — PROCESS + INFO) implies the following distribution of goals of functioning of logistics systems: effectiveness of coordination oflogistics (ECL) — 3 % of the companies; effectiveness of coordination of logistics + competitiveness of the company (ECL + CC) — 3 % of the companies; effectiveness of coordination of logistics + execution of obligations before clients + competitiveness of the company (ECL + EOBC + CC) — 3 % of the companies.
Realization of the combined strategy focused on the market and exchange of information (MARKET + INFO) in combination with an aim at effectiveness of coordination of logistics (ECL) takes place in 9 % of the companies.
Realization of the combined strategy focused on the process, market and exchange of information (PROCESS + MARKET + INFO) in combination with an aim at competitiveness of the company (CC) takes place in 3 % of the studied companies.
Analysis of the data presented in Table 9 showed that among possible variants of implementation of strategy focused on the process (PROCESS), the biggest share accounts for the aim of the companies at the effectiveness of coordination of logistics (ECL) (Fig. 3); among the variants of implementation
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Types of logistics strategies in modern Russian companies and goals of their implementation
of strategy focused on the market, the aim at the effectiveness of coordination of logistics (ECL) and competitiveness of the company (CC) is presented to equal extent (43 % each) (Fig.4).
Realization of the strategy focused on the exchange of information is related to the aim of companies at effectiveness of coordination of logistics only (ECL) — 100 %.
□ Effectiveness of coordination of logistics
■ Competitiveness of the company
□ Effectiveness of coordination of logistics and competitiveness of the company
Fig. 3. Relative indicators of functioning of logistics systems in the companies implementing the strategy focused on the process
□ Effectiveness of coordination of logistics
■ Competitiveness of the company
□ Effectiveness of coordination of logistics and competitiveness of the company
Fig. 4. Relative indicators of functioning of logistics systems in the companies implementing the strategy focused on the market
At realization of the combined strategy focused on the process and market (PROCESS + MARKET), 50 % of efforts are directed to effectiveness of coordination of logistics and 25 % each to execution of obligations before clients (EOBC) and competitiveness of the company (CC) (Fig.5).
The results of implementation of the combined strategy fo -cused on the process and exchange of information (PROCESS +
INFO) present almost equal share of effectiveness of coordination of logistics (ECL) — 34 %, combined approach directed to effectiveness of coordination of logistics and competitiveness of the company (ECL + CC) — 33 %, combined approach oriented to all studied goals — effectiveness of coordination of logistics, competitiveness of the company and execution of obligations before clients (ECL + EOBC + CC) — 33 % (Fig. 6).
□ Effect i vcncss о f coordina I ion о f logistics
■ Execution of obligations before clients
□ Effec l ivciiess of coordination of logistics, execution of obligations before clients and competitiveness of the company
Fig. 5. Relative indicators of functioning of logistics systems in the companies implementing the strategy focused on the process and market
Effectiveness of coordination of logistics
Effectiveness of coordination of logistics and competitiveness of llie comnanv
Effectiveness of coordination of logistics, execution of obligations before clients and competitiveness of the company
Fig. 6. Goals of functioning of logistics systems in the companies implementing the strategy focused on the process and exchange of information
33%
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Section 12. Economics and management
The activity of the companies realizing the combined strategy focused on the market and strategy focused on the exchange of information (MARKET + INFO) is aimed at effectiveness of coordination of logistics (ECL) — 100 %. The combined strategy consisting of all three types of strategies (PROCESS + MARKET + INFO) is only oriented to competitiveness of the company (CC) — 100 %.
Other combinations of the strategy variants and their realization were absent in our observations.
The analysis of the data from Table 10 shows that 67 % of the companies implement «pure» strategies and 33 % implement combined ones. At implementation of combined
strategies, 55 % of companies direct efforts to achieve a result — elevation of the level of effectiveness of coordination of logistics (ECL) (Table 11, Fig. 7); 18 % await for the achievement of a complex result — elevation of effectiveness of coordination of logistics (ECL), competitiveness of the company (CC) and execution of obligations before clients (EOBC); a few companies, 9 % each, expect the achievement of the following results:
- increase of competitiveness of the company,
- execution of obligations before clients,
- increase of effectiveness of coordination of logistics and competitiveness of the company.
Table 11. - Information about the results of implementation of combined strategies by companies
Results of implementation of the chosen strategy Share, %
Effectiveness of coordination of logistics 55
Effectiveness of coordination of logistics and competitiveness of the company 9
Effectiveness of coordination of logistics, execution of obligations before clients and competitiveness of the company 18
Competitiveness of the company 9
Execution of obligations before clients 9
n Effectiveness of coordination of logistics
■ Effectiveness оГ coordination of logistics and competitiveness of the company
□ E ffect ivenessorcoordinalioitoflogislics, execution of obligations before clients and competitiveness of the company
D Competitiveness of the company
■ Execution of obligations before clients
Fig. 7. Relative indicator of the results of functioning of logistics system in the companies implementing combines strategies
The results obtained in the present research can be summarized as follows:
• regardless the chosen logistics strategy, the vast majority of companies (52 %) see the effectiveness of coordination of logistics as the result of logistics strategy implementation; elevation of competitiveness of the company accounts for 21 % and 18 % show a combined result — achievement of effectiveness of coordination of logistics and increase of competitiveness;
• only 3 % of companies are oriented to execution of obligations before clients as a priority result of logistics strategy implementation;
• 6 % of all companies strive to achieve a complex result: achievement of effectiveness of coordination of logistics, elevation of competitiveness and execution of obligations before clients;
• the largest number of Russian logistics companies chooses the strategy focused on the process (43 %),
i. e. «management of standard logistics system in order to control costs». Herewith, most of these companies (53 %) want to achieve a high level of effectiveness of coordination of logistics as the result
of implementation of the chosen strategy; 27 % set a priority task to achieve effectiveness of coordination of logistics and elevation of competitiveness and only 20 % of companies strive to increase the competitiveness of the company;
• 21 % of companies realize the strategy focused on the market — “management of selected components of logistics system in order to create more comfortable conditions for clients”. 43 % of these companies attempt to achieve high effectiveness of coordination of logistics, other 43 % strive for high competitiveness of the company;
• the smallest number of companies (3 %) chooses the strategy focused on the exchange of information — «management of logistics system in order to achieve optimal interaction of the participants of supply chain»; the goal of these companies is also to achieve effectiveness of coordination of logistics;
• the third part of the companies (33 %) realizes combined strategies; the result of implementation of most of them is the achievement of effectiveness of coordination of logistics (55 %).
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Discussing the role of logistics in the system of management of modern companies, it is reasonable to mention the integrating importance of this function [13; 14], which should be based on the following approaches:
- integration of functioning of logistics system components;
- integration of logistics with other functional spheres of the company’s activity;
- integration of interaction of the participants of the chain of supply of materials and products.
Speaking about the effectiveness of logistics, it is practical to distinguish the following analyzed components;
- effectiveness of goods delivery;
- minimization of operational costs;
- increase of the quality of logistics operations from the point of service of internal and external clients.
Some studies conducted by contemporary specialists [15; 16; 17] are dedicated to the analysis of potential of
creation of competitive advantages of the company based on the optimization of logistics system operation. When developing certain competitive advantages, mentioned researchers propose another classification of logistics strategies, which are significantly different from the ones described above:
- conceptual logistics based on preliminarily designed schemes (concepts) of realization of operations and building of interaction with functional areas of the company’s activity that are not included in the logistics system;
- adaptive logistics that realizes the changes in the work of logistics system in order to increase the effectiveness of its functioning in most important areas from the point of achievement of commercial success by the company.
At the same time, all classifications presented in this study are of interest for the interpretation of results obtained by us from the point of evaluation of the degree of market orientation [18; 19; 20] of modern Russian companies and role of realized logistics strategies in achieving their goals.
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Pronina Nina Nikolaevna, Ph. D. in Economics, Associate Professor, Plekhanov Russian University of Economics, Russia, Moscow
E-mail: proninann60@gmail.com
Agibalova Elena Leonidovna, Ph. D. in Philology, Associate Professor, Plekhanov Russian University of Economics E-mail: elenagib@rambler.ru
Analysis of the existing model of normative per capita funding
Abstract: the article is dedicated to the improvement of funding for higher educational institutions in the Russian Federation. It reviews main factors that will influence the amount of funding for higher educational institutions next year.
Keywords: financial reform in the sphere of higher education, normative per capita funding, quality of education, human resources, standard costs, government task.
Ensuring the constitutional right to education is one of the most important duties of state policy. The solution of this problem envisages, among other things, the creation of proper mechanisms of educational institutions funding that guarantees the fulfillment of their mission. The indicated provision has been translated into law. Article 4 of the Federal law “On education in the Russian Federation” stipulates that the objective of legal regulation in the educational sphere is “the creation of legal, economic and financial conditions for proper operation and development of the educational system”
Today educational policy is aimed at the achievement of ambitious and challenging goals. The National program of the Russian Federation entitled “The development of education” for the years 2013-2020 envisages the creation in the long run of an educational system that would meet the changing needs of economics and society, provide high-quality services in accordance with developing needs of citizens.
The program stipulates that the priority is the quality improvement of the results of education from the perspective of both the formation of core competencies necessary for personal development of citizens and the solution of general problems of the country’s modernization in socio-cultural and economic spheres.
In recent years a number of measures aimed at the development of the educational system and the quality improvement of the services it renders have been taken at the national level. A big number of such measures were connected with the improvement of funding mechanisms. The documents of the State program “The development of education” indicate
that over the last five years the level ofbudgetary expenditures per one student grew on the average by almost 13.5 % a year, being ahead of the inflation rate. The fastest growth rate was observed in the volumes of budgetary funding for higher education — 20.1 % a year (except 2015).
The development of effective financial and economic mechanisms is among the objectives of the national policy in the sphere of education that have been determined for the next few years. Aggregate costs for the educational sphere in relation to GDP are to increase before 2020 by more than one percentage point — from 5.4 % to 6.5 %. At the same time emphasis should be made on the development of certain financial tools. The National program highlights the importance of the following tools: funding for institutions on the basis of standards that take into account productivity of educational activity as well as the effective contract with teachers. Official documents stress the necessity of a differentiated approach to the funding for government tasks of educational institutions.
The national policy also focuses on the formation of “growth areas” by supporting leading universities designed to become accelerators of modernization of the educational system in general. The national program “The development of education” stipulates that before 2020 at least five Russian universities have to be among one hundred best world universities according to internationally recognized rankings.
The key role in the solution of the abovementioned problems is given to the Ministry of Science and Education of the Russian Federation which exercises powers and functions of the institutor in terms of educational institutions under its
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