2) Customer Perspective, the customer perspective addresses the question of how the
enterprise is viewed by its customers and how well the enterprise is serving its targeted customers in
order to meet the financial objectives. Generally, customers view the enterprise in terms of time,
quality, performance, and cost. Most customer objectives fall into one of those four categories.
3) Internal Process Perspective, internal business process objectives address the question of
which processes are most critical for satisfying customers and shareholders. These are the processes in
which the enterprise must concentrate its efforts to excel.
4) Learning and Growth Perspective, the learning and growth metrics address the question of
how the enterprise must learn, improve, and innovate in order to meet its objectives. Much of this
perspective is employee centered.
Whereas strategy is articulated in terms meaningful to top management, to be implemented it
must be translated into objectives and measures that are actionable at lower levels in the organization.
The Balanced Scorecard can be cascaded to make the translation of strategy possible.
All above mentioned is useful for every enterprise and especially for the industrial enterprises.
The reason of this importance is using the BSC method as performance measurement system for
industrial enterprises which it is very important for sustainable development of the enterprises as well.
The problem of “sustainable development” is one of the most urgent problems in the world.
Interconnection of economic development and environmental worsening is obvious. So, there exists
the demand for reasonable combination of profit maximization interests, material welfare and
environmental requirements. This problem is touched upon in many international legal acts such as
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Stockholm Declaration of the United Nations Conference on the Human Environment (1972), Rio
Declaration on Environment and Development (1992), “Agenda 21” (1992), Johannesburg Declaration
on Sustainable Development (2002), UNEP Report “Towards “Green” Economies: a Way to
Sustainable Development and Elimination of Poverty” (UNEP, 2011) and others.
“Agenda 21” contains an appeal to the UNO member-countries for development, adoption and
further guaranteeing of coordination of national strategies in sustainable development. The foundation
for these strategies should become “different sector economic, social and environmental programs and
plans realized in the country” (Agenda XXI: Adopted by UNO Conference on Environment and
Development, 1992). Therefore the task of transition to sustainable development on the state level and
on the subjects’ levels is actualized.
In modern conditions, most of the developed and developing countries choose the way
following the concept of sustainable development. Sustainable development is the way based on the
support of the long-run extended reproduction of productive potential, human resources and natural
environment. Sustainable development ensures equilibrium of three associated elements of the system:
economic, social spheres and environment (Ivanov, 2011).
Sustainable development implies the development based on three components of national
economy: (1) economic, (2) social and (3) environmental. And if until recently we could imagine the
process of social development in two-dimensional coordinate system in which only social and
economic parameters were taken into account and nature was considered to be beyond the limits of the
managed system, now it is used three dimensional coordinate system including in addition
environmental (natural resources) subsystem. International Union for protection of nature determines
sustainable type of development as development which ensures real people’s life quality improvement
and at the same time preserves natural variety of the Earth (Vasikova, 2011).
Besides, above mentioned researchers there are different international organizations which they
try to promote and support countries for following and using the sustainable development factors.
We’d like to mention about UN and its some organizations/agencies which they specialized in this
field.
The United Nations Industrial Development Organization (UNIDO) is the specialized agency of
the United Nations that promotes industrial development for poverty reduction, inclusive globalization
and environmental sustainability. The mission of UNIDO, as described in the Lima Declaration
adopted at the fifteenth session of the UNIDO General Conference in 2013, is to promote and
accelerate inclusive and sustainable industrial development (ISID) in developing countries and
economies in transition. The relevance of ISID as an integrated approach to all three pillars of
sustainable development is recognized by the recently adopted 2030 Agenda for Sustainable
Development and the related Sustainable Development Goals (SDGs), which will frame United
Nations and country efforts towards sustainable development in the next fifteen years.
Besides, there is the UN Global Compact, which it is a strategic policy initiative for businesses
that are committed to aligning their operations and strategies with ten universally accepted principles
in the areas of (1) human rights, (2) labour, (3) environment and (4) anti-corruption. By doing so,
business, as a primary driver of globalization, can help ensure that markets, commerce, technology and
finance advance in ways that benefit economies and societies everywhere. Secretary-General of the
UN, Mr. Kofi Annan, who spoke to world economic leaders at the World Economic Forum, 1999
inviting and urging them to collaborate with UN agencies to support global efforts for sustainable
developments. Following this appeal, the UN Global Compact was officially launched in 2000 as a
principle-based framework for businesses, stating ten principles in the areas of human rights, labour,
the environment and anti-corruption. The 10 Global Compact Principles spell out how companies can
incorporate Labour Standards, Human Rights, Environment and Anti-corruption as an integrated part
of their corporate culture or way of doing business.
Results
The results show that the potentialities of the Balanced Scorecard method as performance
measurement system for industrial enterprises as well as a tool for strategic management control are to
be sought in an interactive approach to the strategic process whereas it is traditionally presented as a
tool for diagnostic control of the industrial enterprise. Besides, BSC method is very helpful for every
enterprise which it is impact to sustainable development and it is very important for national economy
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of the country. The reason is if the industrial enterprises will use all needed and useful methods as
BSC and others then they can produce or offer in high quality and suitable price products and services
with “Made in Azerbaijan” brand then it will impact to their income and government budget/economy.
Azerbaijan develops its non-oil sector and especially industry where the government establish
different industrial parks, streets, techno-parks, business incubator centers, clusters and giving all
residents of industrial parks: exemption from corporate and income taxes, land taxes, VAT (for
equipment, facilities and goods imported for production purposes) for 7 years after registration and
starting activity there. Besides, mentioned support from the government site is not enough for
sustainable development of the industrial enterprises. Every top manager and owner of the industrial
enterprises must follow sustainable developments three components of national economy: economic,
social and environmental as well as follow UNIDO and UNGC principles which it is very useful
opportunity. In this case every industrial enterprise will achieve successful results as income and
benefit then it will impact to the national economy of the country as well.
THE LIST OF LITERATURE
1.
The State Programme on Socio-economic Development of the Regions of the Republic of Azerbaijan (2014-2018);
2. The State Programme for Poverty Reduction and Economic Development in the Republic of Azerbaijan (2008-2015);
3. The State Programme on Reliable Food Supply to the Population in the Republic of Azerbaijan (2008-2015);
4. The State Program on the Development of Industry in Azerbaijan for the years 2015-2020;
5. http://www.senaye.gov.az/ and http://economy.gov.az/
6. The State Statistical Committee of the Republic of Azerbaijan, http://www.azstat.org/
7.
Kaplan, R.S. and Norton, D.P. (2001b), “Transforming the balanced scorecard from performance measurement to
strategic management: part II”, Accounting Horizons, Vol. 15 No. 2,pp. 147-60.
8.
United Nations Industrial Development Organization (UNIDO), http://www.unido.org/
9.
UN Global Compact, https://www.unglobalcompact.org/
IMPACTING OF HUMAN RESOURCE DEPARTMENT’S CAREER
DEVELOPING STRATEGY TO FIRM’S COMPETITIVE POWER
(IN AZERBAIJAN FIRMS EXAMPLE)
Res. Ass. Aygun ABDULOVA
Azerbaijan State Economic University
sabah.aygun2015@gmail.com
ABSTRACT
Human resource management deals with the design of formal systems in an organization to ensure the
effective and efficient use of human talent to accomplish organizational goals. In an organization, the
management of human resources means that they must be recruited, compensated, trained, and developed.
Human resource management influences to workers developing of their career.
Research Purpose. The purpose of this article is to research new strategy of Azerbaijan changing
national institutional management system which HR uses to improve workers career. In addition to this article
analyzed the sustainability of such strategy and investigate the power’s impact as the result of the company’s
competitiveness.
Research Hypothesis. The developing of career strategy impacts to workers to gain competitive power.
Research Methodology. In the research we use questionnaire method to HR’s manager of 50 Azerbaijan
national firms and 5 workers of each firms asks question, interviews about their career developing. We used in
research literature.
In the end the results will be discussed and the suggestions will be given to companies with theoretical
background.
Keywords: Human resource management, career development, organizational behavior, career planning.
Introduction
Career development is a action of workers to reach their career goals during their working
period. Organizational and personal thinking and expectations are very important factors for career
development. Career decisions should be taken into special attention on this point. Today, the
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employers should try out the career development programs in order to make workers get benefits of
human resources functions which are the very important factors for every organization. This way they
could both ensure organizational activities and supply workers with job.
The main purpose of career development is to direct and support the workers’ career and
increase the competitiveness of companies. Besides, it has the following purposes:
Reduction of ineffectiveness caused by target uncertainty and decrease in motivation;
Help workers to overcome the obstacles came across during the improvement;
Prepare professionals to new positions for organization’s future needs;
Develop positive organizational culture based on high career expectations;
Help workers to define new career targets by identifying their potential abilities;
Development of productivity of organizations; Career planning covers individual’s knowledge,
skills, interests, values, estimation of strong and weak aspects, self-determination of short and long
term plans, development of career plans and the adaptation process of plans. Career planning is the
decision making and problem solving process aimed to build appropriate relations between
employees’ needs and values and their work experience and opportunities. The process itself would
cause employees to become more happy and productive and train employees with high motivation
who are likely to predict their future goals and expectations and defining targets in accordance with
their future expectations.
The purpose of this research work is to investigate career as the human resources management
function from the point of prospective influence of companies’ competitiveness strength.
Career Strategy In Human Resources Management
Career management is a basic rule of planning peoples’ work life. Career management contains
combination of human resources plans with the system, definition of career steps, job description
announcement for getting detailed information on career field, estimation of employee performance,
development of work experience and educational programs (Ahmadov, 2009). Human Resources
Management supports the responsibilities of leading position employers, personal career planning of
employees and improvement of their mental skills. The employee is the one defining the self-career
target and self-improvement strategy on this direction. “Planning of Work Life” closely matches the
interests of humans as career is one of the main aspects of human life. Its being planned as limited
process is very important from the view point of reaching the targeted career goals. Companies with
good career management planning predicts its employees’ future prospective levels for the next one or
five years. The mentioned prediction is utmost important as it helps the company to increase employee
loyalty and adoption, motivate them and make a part of the company.
Career management is the self-preparation strategy of how to step to the next stage predicting
the career future.
People during the career management process, before starting their career options should fill the
company form asking what position they would like to explore and what skills do they need to ace the
position. According to this form a career plan can be developed for the employee. This aspect takes a
special place in the personal file of employee. It is not always possible to go through the defined
career development plan as the career development is linked to several other factors. However the
employee’s perspicacity and willingness come ahead of these factors.
Career plan development involves responsibility of both employee and company. Employee
should know what to do and where to go, and be prepared beforehand. Company in its term, should
prepare the employee on what direction to pass and how to use their skills. From this point of view
both company and employee should take into account the promotion opportunities. The attained
information in the end of performance estimation period can be used also for career management.
Another purpose of career management is the existing competition in human resources market.
The characteristic of human resources management is to establish opportunities for people to
look ahead with confidence, plan for the future and develop career plans within the company.
Career planning takes essential place among the modern management approach methods. The
career development system consists of 2 main actions. In the first place the career planning should be
provided for the employee, then the company following its responsibilities should proceed with career
management.
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The duties of employee during the career planning period are as follows:
Personal evaluation: Individual’s self estimation and self-attitude of skills and behavior are
very important in this point.
Evaluation of career opportunities: Employee should evaluate the achievable career opportunities
inside and out the company.
Combination of personal skills and career opportunities: Individual should build relation
between existing skills and possible opportunities.
Defining individual needs and targets: Targets should be defined and certain plans should be
developed in order to reach the goals. (BAYRAKTAROGLU, 2003)
The responsibilities of company during the career planning period:
Cooperative evaluation: Company should look through the existing human resources in
general. This practice of career management at the same time lays down the foundation of human
resources management application. Individuals’ position development needs will be defined during the
process.
Definition of career opportunities: Definition of individual’s promotion forms and conditions
are very important.
Observation and performance estimation of employees: Observation information about
individuals’ possible leaving places and results of performance estimation should be used for this
point.
Career consultation: The most important function of human resources is to give advice about
the possible career opportunities. Worker should be aware of development opportunities, expansion of
work, shifting terms and rules concerning the company.
Education matching with career opportunities.
Career opportunities within the company, performance estimation actions, educational training
programs are very important factors in increasing research results for employee motivation.
Career management is much easier in the companies belonging to hierarchic system. Especially,
this can be easily implemented in manufacturing businesses.
The very important subject of attention what human resources should take into account during
the period of career management and planning is to arrange equal opportunities for people.
Unfortunately, nowadays we come across with individual approach and injustice in many companies.
There should not be any intercessions in career planning process. Also, gender discrimination is a
subject of discussion in companies. The necessary points of career planning are individual’s skills,
successes and performance opportunity. The performance should be based on objective criterions as
much as possible.( BARUTCUGİL İ. 2004)
Career planning cause difficulties either for company or employee as it requires future planning
and supposing skills. Human resources centers with the application forms matching workers’ profile
bring discipline to career planning.
Career development program objectives:
Firstly, to decrease business productivity loss;
Simplify comprehensibility of affirmed work and targets;
Increase psychological satisfaction by decreasing workers’ tension;
Develop organizational values;
Give development and promotion opportunity to women;
Assist in quality formation;
Develop organizational abilities;
Offer all necessary facilities for individuals’ improvement on the stages of organization;
The best career decision should embrace individual’s demands and needs as well as interests
and abilities. Such kind of decision encourages to get job with higher prospective. Also, makes oneself
feel important and doing valuable work, and helps to achieve high overcomes as result of made efforts.
General suggestions on career selection:
Position advantages of people are different. Each person might not like doing the same works.
The belief of doing useful work makes people become happier.
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People make good relations, work more productively and find common points with the people
sharing similar interests.
Career direction of a person begins with perceiving belonged skills and values. This difference
will probably cause to unchangeable decision in future.
Career direction researches and observations generally consist of 8 “career sails”. They are:
Safety and determinedness, technical/functional adulthood, progress, independence/autonomy,
creativeness / entrepreneurship, service / be beneficial, mode of life/balance and stick difficulties.
Career management starts by defining needs and career researching. This process involves
both individual and environment by objectively estimating perception, personal values, beliefs, needs,
goals, wishes and abilities of a researcher.
The second step is defining goal and developing strategy. The goal must be based on specific,
measurable and accessible meaningful result and deadline. Goal defining will increase individual’s
motivation and provide control on achievements in working environment. Thus, individual should be
concentrated on achieving the defined goals by using available resources.
The third step starts by practicing the defined career strategy. (FINDIKÇI İ., 2002)
Career planning is an endless process and all the changes in individual’s life should be taken
into account.
Professional career passes through 4 stages like entry stage, colleague stage, counselor stage
and advisory stage. Each step is linked with individual’s skills and abilities, not with age.
Entry stage characterized by learning necessary information concerning the job and requires
others assistance and support.
Colleague stage characterized by gradually loosing dependence, but requires gaining skills to
tie relations with colleagues of similar profession.
Counselor stage is marked by taking responsibility, either formal or informal, for developing
others in the organization by sharing gained experience and skills.
Advisory stage is a level of knowledge, ability and skills and experience capable shaping
strategy of the organization through innovative ideas and original concepts. Advisor should act smart
and courageously to start new businesses.
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