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№ 1-2 (035-036), 2006
Summary
Theme of this issue: What should Responsible Business provide, and to whom?
Subjects for Discussion:
1. Social responsibility: what is it, how is it expressed and to whom?
2. For whom is social responsibility in business necessary, and why?
3. Is it an advantage for a business to be socially responsible?
4. Does social responsibility have an influence on a company’s capitalization?
5. Is it possible to evaluate social responsibility? If so, how?
List of Participants:
1. Vera Minina, Doctor of Sociology, Editor-in-Chief of “Personnel-Mix” Journal, Professor in the Faculty of Sociology at St. Petersburg State University
2. Anna Lezhikova, Nevsky Institute of Language and Culture
3. Yulia Murashova, Nevsky Institute of Language and Culture
4. Yevgenia Gromova, General Director of the “СOMСON-SPb” Company
5. Valeria Vasilkova, Doctor Philosophy, Professor in the Faculty of Sociology at St. Petersburg State University
6. Grigory Tulchinsky, Doctor of Psychology, Professor in the St.Petersburg State University of Science and Arts
7. Irina Demidova, Inter-College Centre of Educational Science Programs in Social Communication at St.Petersburg State University
8. Tamila Zheleznyak, Director of the “City of Masters” Group of Consultants
9. Valery Dolbezhkin, Advertising Department of the Industry & Construction Bank
10. Yuri Blagov, Head of the Department of International Management in the Faculty of Management at St. Petersburg State University, Director of the “ICQ Business and Corporate Social Responsibility” Centre at the Management Research Institute
11. Lola Ikonnikova, Development Director of the “Elite-Trans” Holding Company.
Elina Burganova, Assistant Editor-in-Chief, Personal-Mix Journal (St. Petersburg)
Editorial Review
RESPONSIBILITY EVOLUTION. FROM ROBBER TO STATESMAN
This review examines the explanatory models of social responsibility of business — shareholders and corporate citizenship. The result is an original classification of companies on the basis of their attitude towards social responsibility.
The personifications of business that emerge are: Robin Hood, Statesman, Book-keeper and Robber Baron).How is social responsibility reflected in various aspects of business management, in a company’s reputation and its results? Where are the economic boundaries of social responsibility in business? What is the view of public opinion in various countries concerning social responsibility in business, and how is it defined? These questions are examined in detail in the review.
Mikhail Smirnov, PhD in Psychology, Business Management Consultant and Partner in the “Technologies of Organisational Development” Company (St. Petersburg)
WHAT YOU SOW…
The author considers that the social responsibility of business means the totality of task-oriented actions of the company staff. These actions depend on how the employees answer three basic questions. The first one is: are we an object or a subject of social influence? The second question is: in what kind of community are we going to improve people?s life? The third one is: how do we intend to interact with such community. A famous consultant has a rather unexpected point of view on the subject matter of social responsibility of business.
David Shusterman, Organizational Development Consultant, Director of the Consulting Company Pyateorka (Moscow)
FORWARD TO THE NINETEENTH CENTURY!
The successful development of market relations in countries with a transitional economy is possible only where there is optimism and confidence in the future on the part of businessmen, employees and consumers. Confidence in the future is not possible in conditions where society does not, in fact, recognize and respect private wealth. Why is it that in Russia the very word “businessman” arouses an exclusively negative reaction from many groups in society? Why does Russian society continue to believe dishonesty or even openly criminal activity to be the main (if not the only) source of the creation and increase of wealth? Why is it that even many people of the generation with no experience of the command economy do not understand that the prosperity of the country as a whole is impossible without the prosperity of each of its citizens? What role does the natural conservatism of the Russian national culture play in this? A leading consultant shares his reflections on the subject.
Oksana Alekhina, PhD in Economics, Consultant in Management and Organizational Development, Associate Professor of the MBA program at the Russian Government’s Academy of National Economy (Moscow)
REALIZING A PERSONNEL POLICY: PRO AND CON (Conclusion)
These days probably nobody would dispute that effective human resource management is one of the most important sources of a company’s competitive advantages. However, the extent of the realization and formalization of a human resource policy in Russian companies varies considerably. The author of this article, a well-known consultant, believes it is necessary to speak of two groups of companies. The first group includes companies with a high degree of formalization in its work with personnel, with the active use of existing HR techniques. The other group is made up of companies with a “fire brigade” approach to management, where decisions that concern staff are taken on a common-sense basis as each situation arises. What determines the choice between these approaches — the special features of the business or the base values of the company’s owners and managers? This leading specialist and consultant continues her discussion of the problems of formulating and realizing a personnel policy in Russian organizations.
Alexander Prokhorov, PhD in Economics, Associate Professor in the Department of Management at Yaroslavl State University (Yaroslavl)
PERSONNEL AND REFORMS: WHO WILL WINN ?
Why do large-scale changes planned by Russian organizations frequently come to nothing? The author of this article, a well-known specialist, considers that it is the social experience amassed by people over thousands of years that is to blame: Russian workers (like Russians in general) are accustomed not to expect any positive consequences for themselves from reforms. In the major privatization program carried out in the first half of the 1990s they saw not the opportunity to become genuine owners of valuable assets but a threat to their stability, even though it brought with it a higher standard of living. So is the reason for the failure of organizational changes to be found in the characteristics of the Russian mentality? In the historical legacy of the country? In the notorious Russian model of management? Or in something else? The dramatic story of an attempt to make organizational changes in a Russian enterprise, vividly and emotionally described by the author, will give you new food for thought.
Leonid Gendler, PhD in Economics, Group Leader in the “MKD-Consult” Management Consultancy Company (St. Petersburg)
A COMMUNICATORY APPROACH TO AN ORGANIZATIONAL STRUCTURE STUDY
When planning structural changes, the management of an organization often uses an organizational chart as the first point of reference. However, an organizational chart shows the structure which ought to exist, not the one that exists in actual fact. The differences between the formal and informal structure may be so substantial that it may turn out that the organization depicted on the chart simply does not exist at all. Are there effective methods of studying and understanding the actual structure? The author of this article, a well-known specialist, believes there are, and suggests that it can be done by studying the flows of information within an organization. The direction, intensity and other characteristics of these flows will help you to understand the actual role played by the various departments in a company, highlight existing problems, and thereby increase the probability of the successful introduction of organizational changes.
Maria Rubtsova, PhD in Sociology working for a Doctorate in the Department of Social Management and Planning in the Faculty of Sociology at St. Petersburg State University (St. Petersburg)
MANAGEABILITY IN AN ORGANISATION: FROM DEFINITION TO DELIVERY (Conclusion)
The traditional views on how to achieve manageability in an organization are no longer effective. Manageability today is achieved not by control, but by delegation of authority, the provision of assistance to employees in the formulation of tasks, and in a benevolent sympathy with them in the process of their fulfillment. That is the opinion of the author, a well-known specialist, as she continues her examination of the problems of manageability within an organiz ation.
Zoya Ivanova, Leader of the ITMO Project (Interkulturelles Training und Managementberatung fuer Osteuropa) in Russia, Consultant and Business Trainer (Moscow)
DO’S & DON’T. COMMUNICATION, RESPONSIBILITY AND PERSONAL GROWTH
“We don’t know how to communicate effectively” is the sad conclusion the author is compelled to draw, on the basis of her extensive experience. At a time when the top managers of successful companies, which operate on a global scale, never tire of repeating that the main thing their jobs involve is communication — with subordinates, colleagues, business partners, public figures, and so on, many Russian companies still neglect training for their employees in the development of effective communication skills, considering it to be a waste of their limited resources. Attempts to set up an effective management system without resolving this problem is doomed to failure from the beginning. This well-known trainer and consultant conducts a serious conversation with you on the necessity of developing civilized communication skills and how this can be achieved.
Alexey Komarov, MBA (Higher School of Economics), General Director of a major interregional recruitment network Avenue (Moscow)
AN ATTRACTIVE IMAGE. THE COMPANIES THAT RECRUITERS PREFER
The image of an organization as an employer is important not only for its current and prospective employees — nobody is now in any doubt about this: it attracts no less attention from private employment agencies. Recruiters are concerned that job-seekers and employers find each other: in carrying out an organization’s commission in selecting an employee, the recruiter has to know what the organization is like as an employer, how attractive a place of work it is, and whether it is on the “black list” of companies of which every qualified job-seeker is aware. It is therefore extremely important to understand the internal and external factors that have influenced the formation of the employer’s image, and what might influence the candidate’s first impression of the organization. These are the thoughts of the head of one of Russia’s leading recruitment agency networks.
Yulia Merkurieva, PhD in Sociology, Director of the Business Training Studio in the Higher Economic School at St. Petersburg State University of Economics and Finance (St. Petersburg)
WHO ROBBED WHOM? IS THERE NO APPEAL AGAINST THE SENTENCE…?
The number of articles and learned tomes concerning the problems of personnel training can no longer be counted. Here is yet another book, which the author, a well-known trainer and consultant, has read. It poses the question: “Who is to blame that training courses often do not have the effect that the client company expected, but even do obvious harm?” and answers it as follows: “More often than not the training courses themselves are at fault (to be more precise, those who devise and run them)”. What are the authors of this best-seller accusing training of, and why does our author not agree with them? This discussion will undoubtedly help you to understand better all the difficulties in the relations between a training course and its client, a company’s management, their mutual complaints and possible ways of satisfying them.
Yuliya Isaienko, Consultant of REFA (Moscow)
COUNT THE TIME AND REDUCE THE COSTS
Working time losses at the Russian companies nowadays are from 30 to 60 per cent from the potential working hours, as an author of the item confirms. Forced outage and performance of no peculiar operations for the employee are the main purposes of it. What is necessary for the increasing of effectiveness of working hours spending? First of all, we should realize the diagnosis of labour management, the author answers this way, suggesting you the algorithm of such diagnosis.
Sergey Skosarev, Vice-rector of Instruction at the Higher Commercial School, Associate Professor (Moscow)
HUMAN RESOURCE MANAGEMENT. PROSPECTION
Today virtually every Russian company prefers to talk not of “staff management” nor even of “personnel management”, but of “human resource management”. However, the change in a department’s title from “Staff Section” to “Human Resource Management and Development Service” and of the position of “Head of Staff Department” to “Human Resource Director” rarely means a real change in the methods of managing people. What is authentic “human resource management”? In what way is it linked to organizational strategies? On what principles should it be constructed? What trends can be observed in the sphere of human resource management today? How is the role of the personnel manager in an organization changing in modern conditions? A leading expert conducts a detailed conversation with you on this subject.
Marina Libo, PhD in Economics, General Director of the “Adventure Races” Team-Building Company, Extreme Trainer (St. Petersburg)
TEAM-BUILDING: THE RUSSIAN EXTREME
Team-building is currently one of the types of training that is most in demand with Russian organizations. However, both the content of the training available on the Russian business training market and the methods used differ considerably. What is real team-building training? When and why did it come into being? How does it differ from quasi-training, which often leads to company picnics in the open air, giving staff the opportunity to relax and have a good time, but not helping to resolve serious human resource management problems? What is “extreme training” and can it be of benefit to any organization? What threats to the company can extreme training cause, even when conducted by a highly-qualified trainer? If you wish to tackle these far from simple questions and grasp the rudiments of extreme team-building training, read this article by a specialist in the field, who has numerous successes in such training to her credit.
Yelena Molodova, Trainer and Consultant at the “Evolution” Personnel Development Centre (St. Petersburg)
AN INSURANCE AGENT MOTIVATION. HOW TO SECURE THE EFFECTIVENESS
The insurance agent is one of the figures most in demand on the Russian labour market today. However, various periods of an insurance agent’s working life (the same applies to many other groups of employees) are characterized by a specific level of effectiveness. This level of effectiveness reflects not only the number of clients the agent deals with or the amount of insurance premiums he collects, but also his general activeness, high job motivation and standard of professionalism. Why are periods of high effectiveness inevitably followed by spells when it falls? When and why do certain motivators cease to work? How can motivation be maintained at a level acceptable to an organization and such fluctuations in effectiveness be diminished? A well-known consultant trainer reveals the secrets of the life cycle of a successful insurance agent.
Edgar Linchevsky, PhD in Medicine, Associate Professor at the “VOENMEKH” Baltic State Technical University (St. Petersburg)
“MY UNCLE…”
No modern organization can avoid conflicts: conflicts between employees, conflicts between staff and management, conflicts between departments. Every day we encounter difficult situations in communication within our organizations that may not escalate to the level of a conflict, but can nevertheless breed a host of negative consequences. We will never find universal recipes for optimal behavior in such situations, but learning about others’ practical experience in resolving similar problems is always very valuable. This article is the first in a new section devoted to the problems of intra-organizational communications, and you will have the opportunity of forwarding your suggestions for resolving them. A leading expert offers the first situation for discussion, a fairly typical one — alas! — for Russian organizations: a member of staff who is incompetent and light-fingered, but at the same time is… a relative of yours…
Anna Romanova, Director of “LeGranes” Company (St. Petersburg)
ENCOURAGEMENT FOR THE SAKE OF PROFIT. INCENTIVE PROGRAMMES
Perhaps the most difficult problem facing management — past, present and future — is stimulation. The first thing that springs to mind when we talk of stimulation is the stimulation of personnel. However, stimulation of customers is also essential, in order that they purchase a company’s products; stimulation is also necessary for managers. What techniques can help a company resolve these problems? According to the author of this article, a well-known consultant, incentive programs may prove useful. What are incentive programs? What elements can they comprise? Can the organization of a tourist trip be classed as an incentive program? What is the stimulating effect of such programs? A comparative analysis of the effect of incentive programs on various interested groups will help you to choose the most appropriate incentive program for resolving problems in your organization.
Sergey Arens, Member of the External Communications Committee of the Association of Graduates of the Faculty of Management at St. Petersburg State University (St. Petersburg)
FASHIONABLE HR TOOLS
The constant, unpredictable changes in the business environment, and in the aims and tasks of business itself, forces managers to be continually in search of new, more effective management techniques. As a result, they are presented with a constant stream of new management tools, which rapidly become “fashionable”. However, a company cannot be fashionable to the detriment of its efficiency. The unconsidered adaption of new techniques can lead to the depletion of an organization’s resources, the deterioration of its image with consumers, the dismantling of its structure and substantial difficulties in relations between workers and management. What must be done to ensure that “fashionable” management technique begins to resolve organizational problems? Above all — in the opinion of the author, the head of a successful company — the staff must be prepared for the introduction of the new system, and involved in its discussion and implementation. As proof of this, he analyses the experience of two Russian companies in the introduction of a Balanced Scorecard System and Total Quality Management system.
Igor Romanov, Consultant in Organizational Development at the “KONTAKT-EXPERT” Consulting Company (Moscow)
NEWCOMER INDUCTION. SHALL WE INVITE PROCRUSTES?
The constant, unpredictable changes in the business environment, and in the aims and tasks of business itself, forces managers to be continually in search of new, more effective management techniques. As a result, they are presented with a constant stream of new management tools, which rapidly become “fashionable”. However, a company cannot be fashionable to the detriment of its efficiency. The unconsidered adaption of new techniques can lead to the depletion of an organization’s resources, the deterioration of its image with consumers, the dismantling of its structure and substantial difficulties in relations between workers and management. What must be done to ensure that “fashionable” management technique begins to resolve organizational problems? Above all — in the opinion of the author, the head of a successful company — the staff must be prepared for the introduction of the new system, and involved in its discussion and implementation. As proof of this, he analyses the experience of two Russian companies in the introduction of a Balanced Scorecard System and Total Quality Management system.
Olga Fokina, Director of the Volga Consulting Centre, Regional Partner of the “Catharsis” Traning Centre (Moscow)
IN SEARCH OF THE PERFECTION AN EMPLOYEE AND A POSITION
Who are the various systems for stimulation of personnel developed by Russian organizations aimed at? At the ideal employee — professional, conscientious, full of initiative, and so on? Or at the typical employee — unconscientious and undisciplined, but still dissatisfied with his or her remuneration? What should be the starting-point of any system of stimulation? The author, a leading consultant, believes it should be the question: “Why does the company need this employee, whether it be a top manager or a member of the operational staff?” As the author’s experience shows, by no means every organization can quickly give a precise answer to this question, which means that by no means every organization understands what tasks each employee is supposed to perform. In these circumstances, the selection of mechanisms for stimulation becomes virtually impossible. The experience of one project for reforming a system of remuneration may help you to resolve this problem in your own organization.
Oleg Butenko, Personnel Director of the “Elaks” Joint-Stock Company (Kiev, Ukraine)
WHY DO PERSONNEL APPRAISAL SYSTEMS NOT WORK?
Every organization attempts to develop a personnel appraisal system, on the basis of which its staff can be more effectively trained and remunerated. Sooner or later, however, every organization comes to the conclusion that the system they have introduced is not working or produces entirely different results. Why is this? According to the author of this article, the reason is that traditional appraisal systems, based on employees being given precise, clear and measurable objectives, are being rendered worthless by major changes in the business environment and in the staff themselves. These rapid changes are reducing the use of the celebrated SMART objectives to naught; in a situation where staff is increasingly mobile, it is difficult to talk about an objective appraisal of the results of the work of employees who do not remain with the same employer for more than a year. Is it then possible to create a really effective staff appraisal system? By what criteria should organizations evaluate and reward their employers in order to channel their efforts into the achievement of strategic objectives? A leading HR-manager shares his doubts with you.
In the Information Section of the Journal
CONFERENCES AND EXHIBITIONS. Interesting events in the world of HR.
WHAT'S NEW AND INTERESTING? A press review, compiled by recruiters.
WHAT TO READ? An editorial review of new books.
THE AUTHORS AND EXPERTS IN THIS ISSUE. INDEX OF ORGANISATIONS.
CONTENTS OF THE ISSUES IN 2005
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