Imacs 2016 imecs 2016 Proceedings (Preliminary version) of the 4


ASSESSMENT OF THE DEGREE OF INVOLVEMENT IN THE IMPLEMENTATION OF THE COLLECTIVE ENTERPRISE DEVELOPMENT STRATEGY



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ASSESSMENT OF THE DEGREE OF INVOLVEMENT IN THE IMPLEMENTATION OF THE COLLECTIVE ENTERPRISE DEVELOPMENT STRATEGY

174.Marina Krasnova - Marina Zemskova – Karina Nazvanova



Abstract

The article deals with the factors affecting the involvement of the modern organization employees of all hierarchical levels in the implementation of the enterprise development strategy. There were determined the roles of the employees (officials, managers, specialists of the initial echelon) and the ways of realizing their activities in the increase of the results at the enterprise being analyzed.

The paper represents the primary assessment of the company workers’ interest in implementing the company strategy. The assessment is based on the results of the surveys. There were analyzed such aspects as the correspondence of the team’s idea of the company development perspectives and the strategy being implemented, the degree of the coincidence of the company mission and the goal of an individual employee, their coordination. There were described the realized at the enterprise measures (according to the assessment of the measures assumed) aimed at forming such skills which will enable the workers to effectively fulfil the plans of the company development and successfully solve business problems (the correction of personal actions within the limits of the formulated mission, a wide application of various types of visualization in the process of delivering business messages to the colleagues, the use of the methods of emotional involving the subordinates in the company development process).
Key words: enterprise development strategy, personnel involvement
JEL Code: D 79, M14

175.Introduction


In order to achieve a commercial success in the present-day environment a company has to plan the strategy of its innovation development. It is aimed at searching and applying the innovative solutions of the problems being settled and the new methods of activities which raise the enterprise competitiveness on the market.

Nowadays a high effectiveness of the company activity depends not so much on the manager’s ability to foresee the future and assess the possible risks but mostly on the ability to make the employees understand the main idea of the generated strategy, or more exactly, on the ability to involve all the workers in the realization of the chosen strategy. The manager’s knowledge how to unite the efforts of different people having their own opinion, ambitions, aims and to use their talents enables to achieve good results.


176.1 Research methodology


The company management spends much time, finance and forces on drawing the strategic plan of the enterprise innovative development. This process is long and laborious. The officials may be diverted from the current problems. They have to find compromise solutions for implementing some future ideas, to make up a set of alternative solutions in case when risky situations arise, etc.

The result of this process is the document which is the foundation of the further company development for the next 3-5 years. But very often the content of this document is not put into effect and remains on paper. One of the reasons for such a situation is that the company personnel is not interested in the development plans drawn by the management of the enterprise.

Problem of personnel loyalty and formation of commitment to the enterprise development strategy are being studied by many foreign scientists for decades. Elton Mayo can be called the forefather of the research in the area of assessment of the impact of corporate culture on professional activity. He organized a series of experiments at “Western Electrics” factory during the period 1924-1932, named afterwards the Hawthorne experiment, with the aim of studying the influence of various factors (conditions and organization of work, salary, interpersonal relations and leadership style) on increasing productivity at industrial enterprise. Phenomenological and rational-pragmatic approaches to research of corporate culture are being pointed out among modern ones. Their representatives are K. Gold, A. Jackus, A. Cromby, D. Eldridge, S. Robbins, A. Shine and others. R. Sheridan J.A. Chatman made a noticeable contribution to assessment of correlation measurements of corporate culture. In order to analyze the individual values C.W. Crave theory of spiral dynamics of thinking and D. Beck & Ch.C. Cowan theory of dominant modes of personal thinking are used in respect to organizations and individuals. Relationship between involvement in the labor process and the level of productivity of professional activity were being performed by american scientists J.H. Morris and D.J. Sherman in 60-80’s of the last century, and also by soviet economist M. Moshensky. D. Howden is one of the famous contemporary scientists in the process of involvement. Also important is the contribution of followers of attitude theory and dispositional personal concept of V. Yadov to study of the problem of personnel motivation and their availability to certain behavior. Also not without interest is V. Gerchikov typological model of labor motivation, according to which were identified the basic rules of application of incentive systems for employees with differences by type of labor motivation. Certainly there were named not all the authors who study various aspects related to formation of personnel loyalty to enterprise development strategy, of its involvement in development as it is under the permanent influence of many factors and great potential for research (V. Kharsky, T. Solomanidina, Yu. Vershilo, J. Clifford, I. Hellevig, D. Howden and others).

Modern tendencies in the study of personnel involvement and its effects on various characteristics of a company activity are conducted by the leading research agencies and consultants in the field of organization development (Great Place to Work Institute, Hewitt Associates, Towers Watson, Gallup Inc. and others). Every single of them explains the meaning of “involvement” on the basis of the evaluated by the company factors.

Thus, Great Place to Work Institute conducts a survey called “Trust Index” which evaluate the rate of trust, pride and camaraderie in company working atmosphere. Also, Culture Audit is held for determining the main tricks inspiring company employees to maximum work involvement (M.Burchell, J. Robin “The Great Workplace: How to Build it, How to Keep it, and Why it Matters”). Hewitt Associates believes that the main indicators of involvement are the following: how positive an employee speak about the company with colleagues, potential employees and customers, how much an employee want to stay in the company and want to be its part, how much an employee makes extra efforts to contribute the company’s success. Leaders of companies should put an emphasis upon the issues, which deals with current needs and problems of employees. As key ensuring instruments of personnel involvement they see the following: improving of prosperity, creation of productive working environment and redefinition of desired management behavior. Gallup Inc. pointed out 4 measures of personnel involvement which are reflected in 12 questions: basic needs (2 questions), management support (4 questions), teamwork (4 questions), growth (2 questions), and correlate with labor productivity, customer loyalty and sales growth. Than all the ratings of these 12 questions are combined into index which can be used for division of employees onto three categories: involved personnel, noninvolved personnel and active “deactivated” personnel.

While using western methodologies of assessment of personnel involvement Russian companies come across the paradox when the index involvement rate of their personnel is higher than in western companies. This fact often misleads Russian employer convincing him of the high level of personnel commitment. They don’t take into account a number of psychological and cultural features of Russian employees. High power distance under the pressure of patriarchal culture when the employees can not afford to criticize the leaders of their company and inability of giving the constructive reaction during the surveys are the most significant ones.

Taking into account all above mentioned features of Russian citizens mentality we offer another approach of assessment of the degree of involvement in the implementation of the collective enterprise development strategy. Since the straw poll does not allow employees to convey constructive feedback, we used indirect instruments of its production, in particular the observation of external experts. On the business meetings they filled the forms listed below on the workers' interaction.

The mission of the paper is to determine the significance of assessing the level of the employees’ involvement in the company strategy, to systematize the tools of involving the staff in implementing the strategy of the enterprise innovative development and to justify the practical significance of controlling the level of the company personnel involvement.

In our research the staff involement in the strategy implementation is interpreted as a moral and psychological, motivational and physical state of the enterprise team members which determines the degree of the staff participation in drawing, correcting and implementing the development strategy.

The workers’ interest in implementing the projects is directly connected with the level of their motivation whose limits define the dependence of an employee’s contribution on the reward size. This implies the possibility of promotion, creative realization, training, implementation of innovation proposals. Due to this process each member of the staff can have the feeling of his significance, responsibility for the result, stimulate the initiative, search and application of the new methods increasing the employees’ satisfaction. Understanding of your contribution and the feeling of your participation in achieving some common goal are among the strongest stimulie encouraging the activity.


177.2 Model of studying the staff involvement in the general enterprise strategy


The assessment of the staff involvement in implementing the enterprise development strategy was carried out in several stages which are given on scheme 1.

Fig.1: Model of studying the staff involvement in the general enterprise strategy



Source: author

At the first stage there were solved the problem of diagnosing the initial level of the staff involvement in the implementation of the company new plans and the problem of drawing up a program for improving the level with the company staff.

At the second level there were found the means of increasing the level of the staff interest. The middle management was trained to use the methods of the repeated staff involvement (such as facilitation, visualization, dialogization, gamification and others).

At the third stage of creating the company staff involvement in the enterprise strategy implementation the managers included into their activities new means of interaction in the team paying special attention to the dynamics of the staff satisfaction with the professional activities.

The fourth stage consisted of summarizing the data obtained and assessing the efficiency of the tools used.

The model approbation was carried out on the premises of “Megatorg”, one of the largest trading centers in Vladimir region. The Company has been developing successfully for more than 11 years. The main areas of the Company activities are the development and management of the commercial capital facilities. To be a success in the realization of its activity the enterprise tries to find and use the most optimal and modern methods including the actual means of involving the employees in their professional activities. The Company conducts the policy of changing the strategy of its development trying to ultimately attract the staff to the realization of the policy. In order to get the objective comprehension of the staff involvement in the professional activities and of the dynamics in the course of applying the new methods by the managers interacting with the subordinates, there was carried out the assessment of the involvement of the personnel in the development strategy. 284 people of the Company staff (7 top managers, 16 managers, 161 specialists) took part in the polling. This approach is rather simple and informative in use and can be utilized by the majority of the commercial structures.


178.3 Research results


In order to find the criteria of the staff involvement in the strategy of innovation development there was carried out a discriminant analysis. Diagnosed indicators of the motivational sphere were taken as the criteria (G.Rotter’s methodology “The definition of the rate of motivating a success”, observation and diagnostics with the use of Minnesota polling.

The results of the diagnostics showed that a great part of employees needs the external stimulation to the activities. They can work only with the tasks set by the management. They do not make their own decisions. They need support and approval, otherwise they work worse. The other part of the personnel is characterized by the wish to acquire some new knowledge, the drive for self-development, self-actualization in profession. The analysis of the job satisfaction components demonstrates a low level of satisfaction with the work done, the admission of the necessity to upgrade professional skills, to change the company policy, to have a fair remuneration of labor. The analysis also showed that the employees are satisfied with the facts that there exist the guarantees of having a stable occupation, possibilities to use professional skills, to be in charge of the people, to improve the ways of performance. There is also a satisfaction with independence, style of leadership, management competence, the variety of tasks, labor conditions.

In order to give a general assessment of the rate of the staff involvement in implementing the development strategy there was held the anonymous polling of the company employees. It was done in accordance with the authorized methodology and in the following areas: identification of the level of knowledge about the involvement in fulfilling the company plans, synergetic foundations of professional interaction, revealing the experience of applying organizational forms and methods stirring up the staff professional activity.

As the contribution of each of the respondants to implementing business processes of the enterprise is different, the questions which the respondants were asked gave every employee the possibility to assess the work done at various levels of the company hierachy. The workers were offered to assess the activities by the 5-grade scale where 5 grades is an exellent level of activity, 4 grades is a sufficient level, 3grades is a satisfactory level, 2grades is a low level and, if there are no activities, it is equal to one grade. The interview was conducted in the areas, such as the system of forming the general understanding of the staff about the company potential goals; availability of the process aimed at coordinating the staff activity and the company goals; the arrangement of new skills development for the subbodinates in the limits of the admitted strategy.

The work of the managers was analyzed from the point of view of: the correspondence of the company plans with the specific missions, new tasks, priorities with applying the urgent methods work standards, the arrangement of discussing disputable decisions, etc; of the coordination of interaction between your division and other departments; of the correspondence of the labor hours with the volume of the problems raised; of the uniform distribution of the problems among the employees taking into account the participation of everybody in the company development; of motivating and increasing the level of the subbordinates’ interest; of finding an optimal solution with different opinions in the team.

The activity of average executives was analyzed by such factors as: the availability of the necessary equipment and materials; the ability to plan their work and due to that to do the assigned tasks timely; realization of professional and open relations with the colleagues; the desire for obtaining and analyzing the information about the company, its competitors, external trends, etc; the correspondence between the assigned task, the personal professional interests and the company goals; the degree of the subbordinate participation in making important decisions connected with his responsibilities, goals, work methods; fair estimate of your own and your colleagues’ results of work.



The efficiency of the company activity on the implementation of the chosen strategy was also analized by the process of coordinating the aims of some individual employee or department with the general goals of the company. The matter is that very often the company employees have to make their own decisions which must correspond to the idea of the enterprise development. The research carried out in 2014 and 2015 resulted in data which were later arranged in the blocks by the polling zones. The results are presented in Table1, 2, 3:

Tab. 1: The essessment of the top manager activity in the area of involving the staff in the strategy

The subject of the questions block

Score

2014

2015

The system of achieving the general understanding of the potential enterprise goals

1,7

3,9

The system of concurrence and formulation of the goals

3,1

4,6

The organization of traning new skills in the limits of the accepted strategy.

3,9

4,8

Source: study of the authors of this article

Tab. 2: The essessment of the middle management activities in the area of involving the staff in the strategy

The subject of the questions block

Score

2014

2015.

Interpretation of the potential enterprise goals to the staff

2,8

4,1

Implementation of the process of coordination betweem the staff activity and the company goals

2,2

3,7

Training the subbodinates new skills within the accepted strategy and motivating them to further apply these skills

3,5

4,3

Source: study of the authors of this article

Tab. 3: The assessment of the average executive involvement in the strategy

The subject of the questions block

Score

2014

2015

Understanding the potential company goals, areas of its development, the system of the staff activity.

1,3

3,6

Concurrence of people’s own efforts and strategic goals of the company

2,1

3,3

Application and development of the skills required for the strategy implementation

2,4

4,7

Source: study of the authors of this article

The results of the first stage research (2014) showed that the process of transmitting the information about the aims of the company in a popular form is not functioning at the company. Most employees apprehend this information as the data for an aquaintance and stay with their own understanding of the company potential. The officials serve the interests of their departments rather than the general strategy interests preserving their significance. This situation results in the occurrence of the plans contradicting the proposals of other team members.The competition is going on within the enterprise and this decreases its competitiveness in the external environment. The development of the staff abilities is at a low level and the gained knowledge is applied rarely. This factor is also reducing the possibility of a successful realization of the company strategy.

The foundation of the actual solution of the strategic problems is the creation by the officials such environment in which the subordinates could realize the necessity of changes. It is necessary to create such conditions under which every team member feels as if he is the integral part of the general idea, realizes his significance and has a stimulus to suggest something new for the company activity. An employee having some definite job starts feeling his significance, his participation in the common business when his ideas are accepted, discussed and analyzed, when his opinion on professional problems is respected and when his proposals are rejected only reasonably.

The stimulus of changing and improving the company activity in the process of implementing the strategy is the modification interaction methods. In this case a dialog becomes a rather important form of communication. It enables to find the optimal means of doing intermediate tasks, stimulates the search for new ideas, to reveal hidden possibilities, to see invisible barriers.

Another important aspect of attracting the company employees to the implementation of the enterprise strategy is visualization, i.e. the creation of visual patterns and the ways of managing them. Meanwhile, it is necessary to keep to some terms. In order to be resultative the aim must have a positive character, maximum specific features with the fixed date of implementation. The goal must be brightly colored [3, с. 190]. Particularly, there were introduced different visualization tools for facilitation of business information and problem-solving process at LLC “Megatorg”: SWON-analysis, “Road map”, Heijunka box, Moodboard and etc.

To attract the employees and raise their involvement in the new areas of the company activities, their interest to solve the required problems we used gamification, i.e. the use of approaches typical for computer games, game thinking in non-game professional activity. The games help the employees better understand their aims and tasks, solve the problem faster and more efficient and without extra management. Gamification is based on the principles of the immediate feedback. A big goal is divided into a great number of small goals; a worker always notices even a little progress. The company started out the game “Creditable rating” the main goal of which is creation of database of useful tips from employees in the form of creative video clips; “Dearheart contest” is held for giving the employees extra bonus who have shown mutual assistance when solving business problems of their colleagues and others.

One of the most efficient means enabling to control the process of implementing the strategy is the use of facilitation by the managers of the company who work closely with the subordinates. Such methods help the employees do their job and minimize the common problems which they face during their joint work. Facilitation makes the process of accepting new ideas less antagonistic. It is more efficient to have an internal facilitator who is a company worker and there is no need to explain him the specific character of the problems occurred. The employee assuming these responsibilities can be paid less than some outside representative. There were introduced facilitation techniques at the enterprise, which were used at meetings, briefings, current issues discussing: “Brainstorming”, “Medical consultation”, “Polarization of opinions”, “Composition of group agreement”, “Step forward, step back”, “Listening in pairs”, “Speaking in a circle”, “Spectral lines”, “Methods of prioritization” and etc.

In the process of the strategy implementation it is necessary to develop skills and abilities at the company level, those which are required for realizing the accepted strategy. The course of study includes the tutors who are more experienced and possess a wide set of professional methods. They can teach less experienced workers and help to accept innovations.

After the above recommendations for realizing the company business-tasks had been implemented in November,2015, the recurrent study of involving “Megatorg” workers was done (Tables 1, 2, 3).

The recurrent polling shows that the process of involving employees in implementing the strategy has become more coordinated. The development and application of integrated verbal options, which have no differentiations and contradictions and which are formulated in the language being clear to every worker, simplify the interaction and involvement in the business process. One can notice that the development and support of the changing way of thinking influence favourably on how the staff understand their goals. This also helps combine the efforts and achieve good results. Having new skills the employees can eveluate the problem from another level (hierarchy, department, colleagues). This enables to get a single essessment of the situation taking into cosideration the general perspective.


179.Conclusion


Thus, the process of the staff involvement under the conditions of transforming the enterprise activity stirs up many hidden resources of the workers and significantly influence on the level of achieving the objectives. Using the available means of involving the personnel in the company strategy, which include the dialog, image visualization, facilitation, gamification, and tutorship, the management enable to optimize the ways of solving intermediate problems, stimulates the search for new ideas, finds the hidden possibilities, reveal the invisible barriers, makes it easier to accept innovations.

Drawing the conclusions about the level of involving the wokers of “Megatorg” in the general strategy of the enterprise, it can be said that the officials have achieved a significant positive dynamics in the formation of the workers’ common understanding of the potential goals of the company. The managers exactly translate the company strategy, the average executives understand the idea and the activities of their enterprise. It should be mentioned that the picture of the general priority goals has appeared at the company. But it is still difficult for the management to oppose not only competitors but also some departments of the company dealing with the goals of their divisions as with the priorities. This fact affects the transformation of the company goals into the applied problems for the departments, and as a result, the average executives fail to understand the urgent areas of activity and their contribution affects the realization of the general company strategy.


180.References


Frolova, O.A. (2011) The formation of professional intercultural competence by game technology. Scientific bulletin of MGIIT, 3, 116-125

Khoden, G. (2011) Art of Involvement: how to completely reveal the potential of your staff. Moscow: Exmo

Khellevig, I. (2012) Involvement of the staff if Russia. Helsinki: Russia Advisory Group Oy. Retrieved from http://lib100.com/book/wealth/involvement_staff/Ion%20Khellevig,%20 Involvement%20staff%20in%20Russia.pdf

Martinova A.V. (2011) Facilitation as the technology of organizational development and changes. Organizational psychology, V. 1, № 2, 53-91

Pervakova E.E.(2012) About the mechanisms of corporate culture effect on the labor efficiency and productivity. Management of corporate culture, 3, July. Retrieved from http://civisbook.ru/files/File/Pervakova.pdf

Tracy, B. (2016) Full Engagement! Inspire, Motivate, and Bring Out the Best in Your People:

Moscow: Mann, Ivanov and Ferber

Pleshkova, N.A. (2015) The involvement of staff as a tool to improve the efficiency of its operations. Management of economic systems, 10. Retrieved from http://uecs.ru/ index. php?id=3745&option=com_flexicontent&view=items

http://www.gallup.com/

Shevchenko, V.A. (2015) Visual communications: tendencies of forms and techniques of transmitting information. Vestnic of Chelyabinsk State University, 5 (360), 189-195

Stoyanovkaya I. (2012) Staff organizational culture and motivation through values. The problems of theory and practice of management, 6, 97-102
Contact

Krasnova Marina

Vladimir State University name after Alexander and Nikolay Stoletovs

600000, Vladimir, st. Gorkogo, 87

mkrasnova@vlsu.ru
Zemskova Marina

Vladimir State University name after Alexander and Nikolay Stoletovs

600000, Vladimir, st. Gorkogo, 87

merlin10007@mail.ru


Nazvanova Karina

Vladimir State University name after Alexander and Nikolay Stoletovs

600000, Vladimir, st. Gorkogo, 87

kalateya_flower@mail.ru





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