tag:blogger.com,1999:blog-74330728339167099162024-03-06T12:02:53.166-08:00Elvin MahmudovMy writings about economy and businessElvin Mahmudovhttp://www.blogger.com/profile/09842959295128234901noreply@blogger.comBlogger23125tag:blogger.com,1999:blog-7433072833916709916.post-9232531554326314122023-10-23T04:46:00.013-07:002023-10-24T04:40:30.083-07:00HOW TO CALCULATE AND ENHANCE HUMAN ECONOMIC VALUE ADDED IN TRADITIONAL COMPANIES<p><span style="background-color: white; font-size: 18px;">In today's competitive business landscape, companies are constantly searching for ways to maximize their efficiency and profitability. One often overlooked aspect of this quest is the value that human capital brings to an organization. Human Economic Value Added (HEVA) is a concept that sheds light on this crucial element, allowing companies to understand and enhance the true worth of their employees.</span></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEix6G3mxVmRjwIhprIX0W0SGUtDkzoEhwket4Kdqg6ISYK1O1Yb0ZTzoS586EAkcBCL_gqYUItSx-BKW_Zn4dYpqc7X6wmFMoAddu6wgd_bI4knaYYH6deixspRMRMOSL8m3J1G1AOeg0oofZLhTAQah04w8KhEvIP6_lglnaP4jqMU3eXXotWeA-6GKGld/s1200/HEVA2.jpeg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="680" data-original-width="1200" height="362" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEix6G3mxVmRjwIhprIX0W0SGUtDkzoEhwket4Kdqg6ISYK1O1Yb0ZTzoS586EAkcBCL_gqYUItSx-BKW_Zn4dYpqc7X6wmFMoAddu6wgd_bI4knaYYH6deixspRMRMOSL8m3J1G1AOeg0oofZLhTAQah04w8KhEvIP6_lglnaP4jqMU3eXXotWeA-6GKGld/w640-h362/HEVA2.jpeg" width="640" /></a></div><span style="background-color: white; font-size: 18px;"><br /></span><p></p><p><span style="font-size: 18px;">Human Economic Value Added (HEVA) measures the economic contribution of human capital to a company. It goes beyond the traditional financial metrics and recognizes the impact that employees have on the organization's overall performance. HEVA takes into account factors such as skills, knowledge, experience, and productivity, providing a more comprehensive evaluation of the value employees bring to the table.</span></p><p><span style="font-size: 18px;">Calculating and enhancing Human Economic Value Added is crucial for several reasons. Firstly, it allows companies to accurately evaluate the contribution of their employees, enabling them to make informed decisions regarding recruitment, training, and compensation. Secondly, it provides a benchmark against which companies can measure their performance and identify areas for improvement. Lastly, by recognizing and valuing human capital, companies can boost employee morale and engagement, leading to increased productivity and overall organizational success.</span></p><p><span style="font-size: 18px;">To calculate Human Economic Value Added, several key components need to be considered. These include the revenue generated by employees, the cost of their compensation, and the capital invested in them. By analyzing these factors, companies can determine the economic value added by their workforce and gain insights into the return on investment in human capital.</span></p><p><span style="font-size: 18px;">There are various methods to calculate Human Economic Value Added, each with its own merits. Ultimately, the choice of calculation method depends on the specific needs and objectives of the organization.</span></p><p><span style="font-size: 18px;">One commonly used approach is the "contribution margin" method, which subtracts the cost of goods sold from the revenue generated by employees. The contribution margin approach focuses on determining the contribution of an individual employee or a group of employees to a company's profitability. It measures the difference between the revenue generated by employees and their costs :</span></p><p><span style="font-size: 18px;"><b>HEVA (Contribution Margin Approach) = Total Revenue Generated by Employees - Total Costs of Employees</b></span></p><p><span style="font-size: 18px;">Another method is the "residual income" approach, which is used to assess the economic value of an employee by calculating how much they contribute to a company's residual income. It measures the difference between a company's net income and the total cost of the employees.</span></p><p><span style="font-size: 18px;"><b>HEVA (Residual Income Approach) = Company's Net Income - Total Costs of Employees</b></span></p><p><span style="font-size: 18px;">In both approaches, a positive HEVA value indicates that employees contribute to the company's profitability, while a negative value suggests that employees may not cover their costs with their contributions.</span></p><p><span style="font-size: 18px;">The precise aims and usage scenarios of the HEVA (Human Economic Value Added) calculation will determine whether the amount obtained after deducting the cost of the employee from the company's net income should be divided by the number of employees. This procedure is frequently referred to as "Average HEVA" or "HEVA Per Capita".</span></p><p><span style="font-size: 18px;">The net profit of the company is deducted from the total cost of employees to determine the average HEVA computation, which calculates an employee's average contribution. This expresses the average economic value per employee and illustrates how much each employee adds to the net profit of the business.</span></p><p><span style="font-size: 18px;">This statistic can be especially relevant in circumstances where employers seek to compare an employee's economic value to other employees or firms. However, the goals of HEVA computation may vary depending on each usage case, hence several calculation techniques may be used.</span></p><p><span style="font-size: 18px;">From a different angle, HEVA is the expanded idea of EVA from the viewpoint of human capital. HEVA is EVA divided by average headcount. It is originated from the concept of economic value added. EVA is a measure of financial performance which considers true economic profit. It shows how much true profit is available after paying off all expenses, taxes and also the cost of capital.</span></p><p><span style="font-size: 18px;"><b>HEVA = (NOPAT - Cost of Equity) ÷ Average Headcount</b></span></p><p><span style="font-size: 18px;">These methods help businesses assess the financial impact of their employees and make informed decisions regarding performance evaluations and resource allocation.</span></p><p><span style="font-size: 18px;">Aside from HEVA, additional metrics that assess human capital efficiency include HCVA and HRROI. HEVA focuses on individual employee contributions to profitability, HCVA assesses the overall impact of human capital on the company's value, and HCROI measures the return on investment of HR-related expenditures and activities. Each concept serves different purposes within human resources and financial management.</span></p><p><span style="font-size: 18px;">HCVA is used to show the contribution of employees to profitability</span></p><p><span style="font-size: 18px;"><b>HCVA = [Sales - (Total Costs - Employee Costs)] / Average Headcount</b></span></p><p><span style="font-size: 18px;">HCROI considers Return on Investment (ROI) in terms of profit for monies spent on human capital employment costs.</span></p><p><span style="font-size: 18px;"><b>HCROI = (Operating Profit + Employment Cost) / Employment Cost</b></span></p><p><span style="font-size: 18px;">These financial based HC metrics require the support of a set of humanbased metrics. There should be complete data on workforce demographics, number of exempt and non-exempt workers, number of regular and contingent employees etc. Information about workforce turnover and performance of different departments, treated as separate profit centers are necessary. All these metrics have their base on operating profit without any consideration for value added. But it should be made clear that it is value added which contributes to the operating profit. As such there should be a clear interrelationship between value added and profitability. The more the value added the more will be the operating profit.</span></p><p><span style="font-size: 18px;">Enhancing Human Economic Value Added requires a strategic approach that aligns the objectives of the company with the development of its employees. One strategy is to invest in comprehensive training and development programs that equip employees with the skills and knowledge needed to excel in their roles. Another approach is to create a positive work environment that fosters employee engagement and motivation. Additionally, implementing performance-based compensation and recognition systems can incentivize employees to go above and beyond, further enhancing their economic value added.</span></p><p><span style="font-size: 18px;">Implementing Human Economic Value Added in traditional companies may pose certain challenges. Resistance to change, lack of data, and the complexity of measuring intangible factors like employee knowledge and skills are common obstacles. However, by addressing these challenges head-on and involving key stakeholders in the process, companies can overcome these barriers and unlock the true worth of their human capital.</span></p><p><span style="font-size: 18px;">Employees are the driving force behind a company's success, and their skills, knowledge, and productivity directly impact its bottom line. By recognizing and valuing the contribution of labor, companies can create a culture of appreciation and motivation, leading to improved performance and financial outcomes.</span></p><p><span style="font-size: 18px;">In an era where technology and automation dominate the business landscape, it is essential not to overlook the value of human capital. Human Economic Value Added (HEVA) provides a framework for understanding and enhancing the true worth of employees in traditional companies. By calculating HEVA, companies can gain valuable insights into the economic contribution of their workforce, make informed decisions, and create strategies to maximize their human capital. By valuing and investing in their employees, companies can unlock their true worth and achieve sustainable growth in today's competitive market.</span></p>Elvin Mahmudovhttp://www.blogger.com/profile/09842959295128234901noreply@blogger.com0tag:blogger.com,1999:blog-7433072833916709916.post-36383175145075548082023-10-23T02:24:00.003-07:002023-10-23T02:25:49.087-07:00WHY AZERBAIJAN STRUGGLES TO CREATE GLOBAL POWERHOUSE BRANDS?<p> Azerbaijan, a country nestled between Asia and Europe, has been striving to establish itself as a global powerhouse in various industries. One significant aspect of this endeavor is the creation of globally recognized and respected brands. However, Azerbaijan faces numerous challenges in this pursuit. To comprehend Azerbaijan's challenges in creating global brands, it is essential to grasp the complexities of the global branding landscape. The competition is fierce, with countless companies vying for consumers' attention and loyalty. Established brands often enjoy a significant advantage due to their long-standing presence and recognition. Building a brand that can compete on a global scale requires meticulous planning, strategic marketing, and substantial investments.</p><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEixBoaNWMGsvh16jBau9FNvynJ1QJgGcdbJ7fKqKCs4KDVZkGbF_1B6OPXKUZcSN7uVYgWoZZYSedAwGtoACPRIB4-saY6KHPJhOhsuUf7xplrFNHtf7XtzzHqWIvkorRVd0laUfuEZHU3lqeq9730XTJPVum4o5YJzHpUemsLdCRMlOam5NKhuUod2LuuE/s600/mia.jpg" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="327" data-original-width="600" height="348" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEixBoaNWMGsvh16jBau9FNvynJ1QJgGcdbJ7fKqKCs4KDVZkGbF_1B6OPXKUZcSN7uVYgWoZZYSedAwGtoACPRIB4-saY6KHPJhOhsuUf7xplrFNHtf7XtzzHqWIvkorRVd0laUfuEZHU3lqeq9730XTJPVum4o5YJzHpUemsLdCRMlOam5NKhuUod2LuuE/w640-h348/mia.jpg" width="640" /></a></p><p>One of the primary challenges Azerbaijan encounters is the lack of global recognition and perception. While the country has made significant progress in various sectors, its presence on the global stage remains relatively limited. Many consumers worldwide are unfamiliar with Azerbaijani brands, even with Azerbaijan as a country, hindering their potential for global success. Overcoming this challenge requires a concerted effort to raise awareness about Azerbaijan's offerings and improve its international reputation.</p><p>Creating a global powerhouse brand necessitates substantial investment in brand development and marketing. Unfortunately, Azerbaijan has historically allocated limited resources to this crucial aspect of brand building. Insufficient funding restricts the ability to conduct extensive market research, develop innovative marketing campaigns, and hire top talent. By increasing investment in brand development and marketing initiatives, Azerbaijan can significantly enhance its chances of creating globally recognized brands.</p><p>Cultural and linguistic barriers pose additional challenges for Azerbaijani companies aiming to establish global brands. Understanding and adapting to different cultural norms and preferences is essential for successful international branding. Additionally, language barriers can impede effective communication and hinder brand messaging. To overcome these challenges, Azerbaijani companies must invest in cultural intelligence, employ local experts, and tailor their branding strategies to resonate with diverse global audiences.</p><p>Before venturing into the global market, it is crucial for Azerbaijani companies to establish a dominant position in the local market. Building a strong foundation at home provides valuable insights into consumer behaviors, preferences, and market dynamics. By leveraging this understanding, companies can refine their products or services and develop a robust brand identity that resonates with the local audience. This local success will then serve as a springboard for global expansion.</p><p>Despite the challenges, some Azerbaijani companies have managed to break global barriers and achieve international recognition. One such success story is SOCAR, the state oil and gas company of Azerbaijan. SOCAR has successfully positioned itself as a global player in the oil and gas industry, operating in more than 20 countries and offering a range of products and services. The subsequent success story belongs to Azercosmos, the national satellite operator of Azerbaijan. Another notable example is PASHA Bank, which has expanded beyond Azerbaijan's borders and established a presence in several countries. These success stories demonstrate that with the right strategies and determination, Azerbaijani companies can overcome the challenges and thrive.</p><p>The Azerbaijani government has several strategies in supporting branding efforts and overcoming the challenges faced by Azerbaijani companies. By providing financial incentives, tax breaks, and access to resources, the government can encourage companies to invest more in brand development and marketing. Additionally, fostering partnerships between local and international entities can facilitate knowledge transfer and open doors to global markets. Government initiatives that promote innovation, entrepreneurship, and international collaborations can significantly boost Azerbaijan's chances of creating global powerhouse brands.</p><p>Azerbaijan's journey towards creating globally recognized brands is not without its hurdles. However, with a strategic approach, increased investment, and government support, Azerbaijani companies can overcome these challenges and establish themselves as global powerhouses. By focusing on building local market dominance, understanding the global branding landscape, and leveraging successful examples, Azerbaijan can pave the way for a future where its brands are celebrated and respected worldwide. The path forward may be challenging, but the potential rewards are immense. It is time for Azerbaijan to rise to the occasion and unleash its full branding potential on the global stage.</p>Elvin Mahmudovhttp://www.blogger.com/profile/09842959295128234901noreply@blogger.com0tag:blogger.com,1999:blog-7433072833916709916.post-58307177204706592682023-09-04T23:55:00.001-07:002023-09-05T00:10:32.688-07:00BUILDING STRONGER ECONOMIES: HOW THE INTEGRATION WITH THE ORGANIZATION OF TURKIC STATES SHAPES AZERBAIJAN'S FUTURE<p> Organization of Turkic States (then called the Cooperation Council of Turkic Speaking States - Turkic Council) was established in 2009 as an intergovernmental organization, with the overarching aim of promoting comprehensive cooperation among Turkic States. Its four founding member states are Azerbaijan, Kazakhstan, Kyrgyzstan and Türkiye. During the 7th Summit held in Baku in October 2019, Uzbekistan joined as a full member. Hungary, Turkmenistan and Northern Cyprus joined as an Observer Members to the Organization.</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhl6psofHGUshX32E8vcbvzUu9PlBPFHkPn2JbvoidAMOugOgI_QsUxQ_BdcYbAJ3sFP3QmyCssOMwDflDIktnnu3tL_3Mp4unyNOwbiqsJU6-0IN0VaW_kJvPdcaMz1C6nrIshq4MVGoKm1T3-JUJX3k9tzz0yeYym7iCUUp_ocuclbwVWUAVWqrFP5P0N/s3000/OTC.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1000" data-original-width="3000" height="214" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhl6psofHGUshX32E8vcbvzUu9PlBPFHkPn2JbvoidAMOugOgI_QsUxQ_BdcYbAJ3sFP3QmyCssOMwDflDIktnnu3tL_3Mp4unyNOwbiqsJU6-0IN0VaW_kJvPdcaMz1C6nrIshq4MVGoKm1T3-JUJX3k9tzz0yeYym7iCUUp_ocuclbwVWUAVWqrFP5P0N/w640-h214/OTC.jpg" width="640" /></a></div><p>Organization is dedicated to strengthening peace and stability, promoting wide-ranging cooperation and disclosing the potential for common development among its member states. Although it brings together a particular group of countries, the organization does not take an exclusive approach. On the contrary, by promoting deeper relations and solidarity among Turkic speaking countries, it aims to serve as a new regional instrument for advancing international cooperation in Eurasian continent, particularly in Central Asia and Caucasus.</p><p>Constructed on four main pillars of common history, common language, common identity and common culture, the Turkic Council does not limit itself to the confines of these commonalities. Rather, it aims to broaden the existing bilateral cooperation areas such as economy, science, education, transportation, customs, tourism and other various fields among the Member States into multilateral cooperation for the benefit of the region.</p><p>At the same time, the Organization does not limit itself within the frames of its Member States and willingly cooperates with its neighboring states in order to ensure peace and stability in its region particularly in the fields such as transport, customs and tourism.</p><p>The principal organs of the Organization are the Council of Heads of State, the Council of Foreign Ministers, the Council of Elders, the Senior Officials Committee and the Secretariat. The activities of the organization are also supported by its related and affiliated organizations such as the Parliamentary Assembly of Turkic Speaking Countries (TURKPA), the International Organization of Turkic Culture (TURKSOY), the International Turkic Academy, the Turkic Culture and Heritage Foundation, the Turkic Business Council, the Turkic University Union and the Turkic Chamber of Commerce and Industry.</p><p>Organization of Turkic States attaches great importance to economic cooperation among the Turkic States and to their economic ties with the rest of the world. Mutually beneficial economic cooperation is the sound basis and the core of Turkic cooperation at large. The Secretariat, in close cooperation with the Ministries in charge of the Economy and other relevant institutions of the Member States, regularly organizes training and experience-sharing programs on various subjects, regularly brings together members of the private sector of the Member States by organizing technical visits for investors/businessmen, holding Business Forums and meetings of the Turkic Business Council, and Round Tables for the Businessmen with the aim of further strengthening economic ties among its members.</p><p>Membership in the Organization of Turkic States has brought numerous benefits to Azerbaijan's economy. The organization serves as a platform for economic cooperation, facilitating trade and investment opportunities among member states. Azerbaijan has leveraged its membership to strengthen bilateral relations with other member countries, which will bring increased trade volumes and mutually beneficial partnerships. The Organization of Turkic States has also provided a platform for Azerbaijan to showcase its economic potential and attract foreign investors, further fueling economic growth.</p><p>For example, at the 7th Summit of the Organization of Turkic States on the theme “Developing Small and Medium-sized Enterprises” (SMEs) held in Baku on 15 October 2019, the Heads of States reiterated their commitment to the purpose of facilitating mutual trade and investment, as well as enhancing cooperation and exchanges among the private sectors; called on the national agencies in charge of trade registry to work on potential cooperation in order to facilitate the cross-border affairs, movements and cooperation of entrepreneurs in the Member States for boosting mutual cooperation and international trade among them. They also instructed Turkic Chamber of Commerce and Industry (TCCI) member organizations to for increasing business programs and projects to increase intra-trade and ensure the socio-economic development of the Member States.</p><p>Moreover, on 16 September 2022, the "Turkic Business Forum "Shusha", devoted to the restoration and socio-economic development of the Karabakh region was held in Shusha, Azerbaijan. The Business Forum was co-organized by the Organization of Turkic States, the Turkic Chamber of Commerce and Industry, Ministry of Economy and National Confederation of Entrepreneurs Organizations of the Republic of Azerbaijan (ASK) and attended by senior officials of Chambers of Commerce and Industry as well as more than 200 business representatives from the Member and Observer States. Following the official remarks of the heads of delegations, the forum proceeded with the special session, moderated by organization, entitled the “Investment opportunities in Karabakh and East Zangazur economic region”.</p><p>Since the establishment of the Organization, a total of 11 ministerial and 13 working group meetings on economic cooperation have been organized under the umbrella of the Organization of Turkic States since its establishment. Close cooperation in this field resulted in the signing of several concrete Memoranda of Understanding on facilitating trade relations among the Member and Observer States.</p><p>Beside the working groups and meetinigs several leverages and tools are initiated to promote cooperation and foster closer ties among its member states like Turkish Business Portal, Turkic Investment and Development Fund, Turkic Chamber of Commerce and Industry and Turkic Trade Houses. Turkic Trade Houses was prepared based on the Azerbaijani practice and model, the Secretariat, with the close collaboration of the Azerbaijan Export and Investment Promotion Foundation (AZPROMO) currently works on establishment of the first “Turkic Trade House” pilot project in Baku.</p><p>The Organization of Turkic States has recognized the importance of infrastructure development and connectivity in promoting economic growth and regional integration. Organization of Turkic States has placed a special emphasis on bolstering transport linkages among the Member States across the Trans-Caspian International East West Middle Transport Corridor (Trans-Caspian Corridor). Eradicating the existing obstacles to efficient, stable and seamless transport and establishing new mechanisms to streamline transport operations in all modes have constituted the basics of cooperation in this area.</p><p>Azerbaijan has been actively involved in infrastructure development projects initiated by the organization. These projects include the construction of transportation networks, such as roads, railways, and pipelines, to enhance connectivity within the Turkic region. Improved infrastructure will not only facilitated trade and investment but has also opened up new opportunities for economic cooperation and cultural exchanges.</p><p>Development of connectivity will bring the working mechanism for improving the infrastructure of land border crossing points and for ensuring convergence of customs rules and procedures with international standards. The necessity to enhance the competitiveness and attractiveness of the Trans-Caspian International East-West Middle Corridor by providing uninterrupted operation of customs-border checkpoints is affecting to the custom practices of Azerbaijan as well as other members of member states.</p><p>In the near future, one of the main areas of cooperation facing the Turkic states will be the effective use and diversification of existing transport corridors. In particular, the consequences of the military actions between Russia and Ukraine and the resulting Western sanctions have created a number of difficulties for Turkic-speaking states. In this tough period and in the future, the importance of the International Trans-Caspian Corridor is expected to increase. There will also be an opportunity to launch the Zangezur transport corridor proposed by Azerbaijan. The opening of the Zangezur corridor is very important, as it will connect Nakhchivan with other Azerbaijani territories, and restore transport and rail links between Türkiye and Azerbaijan and other Turkic republics. The corridor is also vital in terms of reviving the historic Silk Road, China’s Belt and Road Initiative, and in stimulating regional cooperation and trade development. </p><p>While the integration with the Organization of Turkic States has brought and continuing to bring significant benefits to Azerbaijan's economy, there are also challenges and potential obstacles to consider. Differences in economic structures, regulations, and policies among member states can pose hurdles to seamless integration. Additionally, geopolitical tensions and external factors may impact the pace and extent of economic cooperation. However, the Organization of Turkic States has recognized these challenges and continues to work towards overcoming them through dialogue, cooperation, and the formulation of common strategies.</p><p>The integration with the Organization of Turkic States presents promising future prospects for Azerbaijan's economy. The organization's focus on economic cooperation, trade facilitation, and infrastructure development aligns with Azerbaijan's development goals. As the country continues to diversify its economy and attract foreign investment, membership in the Organization of Turkic States provides a valuable platform for expanding economic opportunities. Azerbaijan's strategic location, coupled with its membership in the organization, positions it as a key player in regional economic integration and fosters greater economic prosperity for the country and its people.</p><p>In conclusion, the integration with the Organization of Turkic States has significantly shaped and will continue to shape Azerbaijan's future. The organization is playing a vital role in promoting economic cooperation, trade, and investment among member states. While challenges exist, the Organization of Turkic States presents promising opportunities for Azerbaijan's economy to thrive and contribute to the overall development of the region.</p>Elvin Mahmudovhttp://www.blogger.com/profile/09842959295128234901noreply@blogger.com0tag:blogger.com,1999:blog-7433072833916709916.post-23023044040142022412023-08-28T23:05:00.005-07:002023-08-29T00:28:29.866-07:00WHY STAFFING NORMS MATTER: UNVEILING THE KEY BENEFITS FOR BUSINESSES<p>As businesses strive to achieve efficiency and productivity, one crucial factor that often goes overlooked is staffing norms. Staffing norms refer to the established guidelines and standards for determining the optimal number of employees required to fulfill the operational needs of a business. These norms play a significant role in ensuring that the business is operating with right number of staff, right people are in the right positions, leading to improved performance and cost saving.</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhEB89m2s0vbaDdY4IFaFffw9wry-44sa8cbU73JUp13hIwTYeCd1e87W2joO9v3PPcOQFueiXGe8wEmzXNYym9SOX6R-XxYqO_CqrrN-BSpMlCH_vLS5MPN8NouLRRBDHs11WZqjccTmDJ9uB0liZureU4H2oKKVIoALXZ18BGeIuoeotYdvh38C0ErIAE/s1200/staffingnorms.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="560" data-original-width="1200" height="298" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhEB89m2s0vbaDdY4IFaFffw9wry-44sa8cbU73JUp13hIwTYeCd1e87W2joO9v3PPcOQFueiXGe8wEmzXNYym9SOX6R-XxYqO_CqrrN-BSpMlCH_vLS5MPN8NouLRRBDHs11WZqjccTmDJ9uB0liZureU4H2oKKVIoALXZ18BGeIuoeotYdvh38C0ErIAE/w640-h298/staffingnorms.jpg" width="640" /></a></div><br /><p>Implementing staffing norms in businesses is essential for several reasons. Firstly, it helps in maintaining an appropriate balance between workforce demand and supply. By analyzing the value chain, value stream map, business processes, activities, jobs, how the job is done, the technology and equipment used in value creation, market trends, historical data and projected growth, businesses can determine the ideal staffing levels necessary to meet customer demands without overburdening resources or incurring unnecessary costs.</p><p>Secondly, staffing norms provide a framework for effective workforce planning. They enable businesses to anticipate their future hiring needs and allocate resources accordingly. With a clear understanding of the required headcount, businesses can streamline their recruitment processes, reduce time-to-fill positions, and avoid the pitfalls of under or overstaffing.</p><p>Lastly, staffing norms foster fairness and consistency in managing human resources. By establishing transparent guidelines for hiring, promotions, and workload distribution, businesses can ensure equal opportunities for employees and minimize the risk of bias or favoritism. This not only promotes a positive work culture but also enhances employee satisfaction and retention.</p><p>Implementing staffing norms in businesses brings forth a multitude of benefits. Firstly, it allows for optimized resource allocation. By accurately determining the required workforce, businesses can allocate their financial resources more efficiently, avoiding unnecessary costs associated with excess staff or the potential loss of business due to understaffing.</p><p>Secondly, staffing norms contribute to increased productivity. When businesses have the right number of employees in each department, it leads to improved workflow, reduced bottlenecks, and enhanced collaboration. This, in turn, results in higher productivity levels, faster turnaround times, and improved customer satisfaction.</p><p>Moreover, staffing norms promote employee engagement and satisfaction. When employees feel that their workload is manageable and that their efforts are valued, they are more likely to be engaged and motivated. By aligning staffing levels with workload demands, businesses can create a positive work environment that fosters employee loyalty and reduces turnover.</p><p>Effective headcount planning is a critical aspect of business success, and staffing norms play a pivotal role in this process. By establishing clear guidelines for workforce requirements, businesses can accurately forecast their hiring needs and plan accordingly.</p><p>Staffing norms provide businesses with valuable insights into their current and future workforce needs. By analyzing relevant data listed above, businesses can determine the optimal number of employees required to meet their operational demands. This proactive approach to headcount planning enables businesses to avoid last-minute hiring rushes or the risk of being understaffed during peak periods.</p><p>Furthermore, effective headcount planning using staffing norms allows businesses to align their staffing levels with their strategic goals. By understanding the skills and competencies required to achieve these goals, businesses can identify any gaps in their current workforce and take the necessary steps to bridge them. This ensures that businesses have the right talent in place to drive growth and success.</p><p>Establishing accurate and effective staffing norms requires careful consideration of various factors. Firstly, businesses need to analyze their operating model and business processes. Complex work studies must be implemented to define relevant staffing norms.</p><p>Secondly, it is necessary to analyze historical data to identify trends and patterns in workforce demand. This analysis should take into account seasonality, market fluctuations, and any other factors that may impact staffing requirements.</p><p>Thirdly, businesses should assess their current and anticipated future workload. By understanding the volume and complexity of tasks, businesses can determine the number of employees required to handle these demands effectively. This analysis should also consider factors such as employee skills, experience levels, and the need for specialized roles.</p><p>Additionally, businesses need to consider the impact of technology and automation on staffing requirements. As technology continues to evolve, certain tasks may become automated, reducing the need for human intervention. By considering these advancements, businesses can accurately determine their workforce needs and make informed decisions regarding staffing levels.</p><p>Several businesses have successfully implemented staffing norms, reaping the benefits of improved efficiency and productivity. One such example is DQTKUEM, SOCAR’s factory producing diving equipment that experienced significant growth over the years.</p><p>By aligning their staffing levels with production plan, DQTKUEM was able to optimize their workforce and plan its headcount according to customer demands. By implementing staffing norms, they were able to accurately determine the number of employees required on the production floor to meet their production goals. </p><p>Developing and implementing staffing norms in your business can be a complex process, but with the right approach, it can yield significant benefits. Here are some tips to help you in this endeavor:</p><p><b>- Work study:</b> Analyze value chain, business processes, workflows, personnel, technology and equipment, working hour balance, method study, time study, motion study, ergonomics and etc.</p><p><b>- Analyze historical data:</b> Review past workforce data to identify trends, patterns, and areas of improvement.</p><p><b>- Consider market factors: </b>Take into account market fluctuations, seasonality, and other external factors that may impact your staffing requirements.</p><p><b>- Involve key stakeholders:</b> Collaborate with managers, professionals, and other relevant stakeholders to gather insights and ensure buy-in for the staffing norms.</p><p><b>- Regularly review and update: </b>Staffing norms should be dynamic and regularly reviewed to ensure they remain aligned with changing business needs.</p><p><b>- Invest in technology: </b>Leverage workforce management software or tools to streamline the process of analyzing data, forecasting staffing needs, and monitoring performance.</p><p>There are several tools and resources available to assist businesses in effective headcount planning using staffing norms. Here are some notable examples:</p><p><b>1. Workforce management software</b></p><p>These software solutions help businesses analyze business processes, current situation, historical data, forecast future staffing needs, and monitor workforce performance.</p><p><b>2. Benchmarking reports</b></p><p>These reports provide industry-specific data on staffing ratios and help businesses compare their staffing levels against industry standards. Especially, norms prepared by the USSR State Committee on Labor and Social Affairs and insider reports of reputable organizations could be cited as an example.</p><p><b>3. Professional associations</b></p><p>Industry-specific professional associations often provide resources, guidelines, and best practices for effective headcount planning. Hopefully, Human Resources Association in Azerbaijan is going to collect industry data and publish such reports in future.</p><p><b>4. Use of digital workers</b></p><p>An intelligent automation (IA) digital workforce is the future of work, utilizing digital technology to enhance the capabilities of employees and businesses alike. With the rise of artificial intelligence (AI), machine learning (ML), business process management (BPM), natural language processing (NLP), and robotic process automation (RPA), all of which are elements in the IA sphere, organizations can now automate tedious manual tasks to improve efficiency, reduce costs and free up human employees to focus on more strategic initiatives.</p><p>Implementing staffing norms in businesses may come with its fair share of challenges. Some common challenges and their solutions include:</p><p><b>- Resistance to change: </b>In the cases, when organization’s culture do not feed the performance culture, line managers resist to the optimization of staffing levels. On the other hand, employees also may resist changes in staffing levels due to fear of job loss or increased workload. Effective culture, strict performance management system, effective communication and transparency can help address these concerns and gain employee buy-in.</p><p><b>- Lack of data:</b> Some businesses may struggle with limited historical data or inaccurate data. In such cases, conducting workforce assessments, surveys, or engaging external consultants can help gather the necessary information.</p><p><b>- Changing business needs:</b> Businesses evolve, and staffing norms need to adapt accordingly. Regularly reviewing and updating staffing norms can help businesses remain agile and responsive to changing demands.</p><p>Staffing norms play a vital role in the success of businesses. By implementing accurate and effective staffing norms, businesses can optimize their resource allocation, improve productivity, and foster employee engagement. Through careful analysis of business processes, current situation, historical data and market trends, businesses can accurately forecast their headcount needs and align their staffing levels with strategic goals. While implementing staffing norms may present challenges, the benefits far outweigh the efforts involved. By investing in the development and implementation of staffing norms, businesses can pave the way for long-term success and growth.</p><div><br /></div>Elvin Mahmudovhttp://www.blogger.com/profile/09842959295128234901noreply@blogger.com0tag:blogger.com,1999:blog-7433072833916709916.post-58830957733897709402023-08-28T01:13:00.005-07:002023-08-29T00:28:39.035-07:00THE IMPACT OF DIGITAL TRANSFORMATION ON CORPORATE GOVERNANCE AND COMPLIANCE<p>In today's rapidly evolving business landscape, digital transformation has become a necessity rather than a choice for companies across industries. The digital revolution has brought about significant changes in how organizations operate, communicate, and interact with their stakeholders. One area that has undergone a profound transformation as a result of digitalization is corporate governance and compliance. In this article, we will explore the impact of digital transformation on corporate governance and compliance, the advantages of embracing this change, the challenges and risks associated with it, strategies for successful implementation, best practices for ensuring compliance, the role of technology, and the future of corporate governance and compliance in the digital era.</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgwO2sjefm1RdX-lpiVDCGdqpDZ9yZVe5vQUsgq9KXhLVv5_IWogOCkIGwHxf67SX3pb_3cvfp4mSUjV-czel-Fk_bRcRLRlQBEFD9bOsHWpnl8wLJYaVvgVTa-1iMo7EsRNe-TQit-pGXUFw2YgiJdJAxhLblHeKlCELKqT_OGcd2ygvMUz-MCB1xv7jOC/s1200/digitaltransformation.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="600" data-original-width="1200" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgwO2sjefm1RdX-lpiVDCGdqpDZ9yZVe5vQUsgq9KXhLVv5_IWogOCkIGwHxf67SX3pb_3cvfp4mSUjV-czel-Fk_bRcRLRlQBEFD9bOsHWpnl8wLJYaVvgVTa-1iMo7EsRNe-TQit-pGXUFw2YgiJdJAxhLblHeKlCELKqT_OGcd2ygvMUz-MCB1xv7jOC/w640-h320/digitaltransformation.jpg" width="640" /></a></div><br /><p>Corporate governance refers to the system of rules, practices, and processes by which a company is directed and controlled. It encompasses the relationships between a company's management, its shareholders, and other stakeholders. Compliance, on the other hand, involves adhering to laws, regulations, standards, and ethical practices.</p><p>In the digital age, corporate governance and compliance have taken on a new dimension. Organizations are faced with the task of governing and ensuring compliance in an increasingly complex and interconnected world. The rapid advancement of technology has not only changed the way businesses operate but has also created new challenges and risks that need to be addressed.</p><p>Embracing digital transformation in corporate governance and compliance offers numerous advantages. Firstly, it allows for greater transparency and accountability. Digital tools and technologies enable real-time reporting, data analytics, and enhanced communication, making it easier for companies to track and report on their governance and compliance efforts.</p><p>Secondly, digital transformation enhances efficiency and productivity. Automating processes, streamlining workflows, and implementing digital solutions can significantly reduce manual errors, save time, and improve overall operational efficiency. This enables organizations to allocate resources more effectively and focus on strategic initiatives.</p><p>Lastly, digital transformation enables better risk management. By leveraging advanced analytics and artificial intelligence, companies can gain valuable insights into potential risks and proactively mitigate them. This not only helps in ensuring compliance but also protects the company's reputation and minimizes legal and financial risks.</p><p>While digital transformation brings about numerous benefits, it also presents challenges and risks that need to be carefully addressed. One major challenge is the need for a cultural shift within the organization. Embracing digital transformation requires a change in mindset, as well as a commitment to continuous learning and upskilling. Resistance to change can hinder the successful implementation of digital solutions.</p><p>Another challenge is the risk of cybersecurity threats. As companies become more digitally connected, they become increasingly vulnerable to cyberattacks. Protecting sensitive data and ensuring the security of digital systems and networks is crucial for maintaining effective corporate governance and compliance.</p><p>Furthermore, the rapid pace of technological advancement can make it challenging for organizations to keep up with the latest trends and developments. Failure to do so can result in outdated processes and systems, which can hinder the organization's ability to meet governance and compliance requirements.</p><p>To successfully implement digital transformation in corporate governance and compliance, organizations need to adopt a strategic and holistic approach. First and foremost, it is essential to have a clear vision and roadmap for digital transformation. This involves identifying the specific goals and objectives, as well as the key areas that need to be transformed.</p><p>Additionally, organizations should invest in the right technology infrastructure and digital tools. This includes leveraging cloud computing, data analytics, artificial intelligence, and automation. It is important to choose solutions that are scalable, secure, and aligned with the organization's governance and compliance requirements.</p><p>Moreover, organizations should prioritize change management and employee engagement. Providing training and support to employees, fostering a culture of innovation and collaboration, and effectively communicating the benefits of digital transformation can help overcome resistance and ensure successful adoption.</p><p>In the digital era, ensuring compliance requires a proactive and comprehensive approach. Here are some best practices to consider:</p><p>1.<span style="white-space: pre;"> </span>Regularly assess and update governance and compliance policies to align with changing regulations and industry standards.</p><p>2.<span style="white-space: pre;"> </span>Implement robust data protection measures and cybersecurity protocols to safeguard sensitive information.</p><p>3.<span style="white-space: pre;"> </span>Conduct regular internal audits and risk assessments to identify potential compliance gaps and address them promptly.</p><p>4.<span style="white-space: pre;"> </span>Foster a culture of ethics and integrity throughout the organization, emphasizing the importance of compliance at all levels.</p><p>5.<span style="white-space: pre;"> </span>Establish clear communication channels and provide training and resources to employees to enhance their understanding of compliance requirements.</p><p>6.<span style="white-space: pre;"> </span>Leverage technology solutions such as compliance management software and automated reporting tools to streamline compliance processes and ensure accuracy.</p><p>Technology plays a crucial role in enhancing corporate governance and compliance in the digital era. Advanced analytics and data visualization tools enable organizations to gain actionable insights and make data-driven decisions. Artificial intelligence and machine learning algorithms can detect patterns and anomalies, enabling proactive risk management and fraud detection.</p><p>Moreover, technology solutions such as cloud-based document management systems, digital signature platforms, and compliance management software automate and streamline governance and compliance processes. This not only increases efficiency and accuracy but also ensures data integrity and facilitates compliance with regulatory requirements.</p><p>As technology continues to advance at a rapid pace, the future of corporate governance and compliance holds great potential. The integration of emerging technologies such as blockchain, Internet of Things (IoT), and robotic process automation (RPA) is expected to revolutionize governance and compliance practices.</p><p>Blockchain technology, for instance, can provide a secure and transparent platform for recording and verifying transactions, enhancing trust and accountability. IoT devices can collect real-time data, enabling organizations to monitor and manage risks more effectively. RPA can automate repetitive tasks, freeing up resources for more strategic initiatives.</p><p>However, with these advancements, new challenges will also emerge. Organizations will need to adapt to evolving regulatory frameworks, address ethical concerns surrounding the use of emerging technologies, and continuously invest in cybersecurity measures to protect against ever-evolving threats.</p><p>In conclusion, digital transformation has a profound impact on corporate governance and compliance. Embracing this change offers numerous advantages, including increased transparency, efficiency, and risk management. However, organizations must also address the challenges and risks associated with digital transformation.</p><p>By adopting a strategic approach, investing in the right technology solutions, and prioritizing employee engagement and change management, organizations can successfully implement digital transformation in corporate governance and compliance. By following best practices and leveraging technology, organizations can ensure compliance in the digital era and position themselves for success in the future.</p>Elvin Mahmudovhttp://www.blogger.com/profile/09842959295128234901noreply@blogger.com0tag:blogger.com,1999:blog-7433072833916709916.post-68038202160028016522023-08-24T04:45:00.003-07:002023-08-28T01:15:13.602-07:00ENHANCING HR OPERATIONS IN THE OIL AND GAS SECTOR: THE POWER OF RPA TECHNOLOGY IN PEOPLE MANAGEMENT<p><span style="background-color: white; font-size: 18px;">The oil and gas sector is known for its complex and demanding operations, requiring efficient and effective management of its workforce. In recent years, the integration of technology in various industries has revolutionized traditional processes, and the field of human resources is no exception. One such technology that has gained significant attention is Robotic Process Automation (RPA). RPA has the potential to streamline HR operations and enhance people management in the oil and gas sector.</span></p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhQi6j7_DEeOhQHeHbn3WTQG5rAyIBKAcdjHZjA8OdFk9Y6IA_fqMVUAYYU77y7mzHcxSwiFgyzcTKLxowYgfX3wapd27Y9-Crys-flwRUgExKUgrUz-4Loo_Z--0RkIHWxSEKO4svY4FKAOKnLTR_rIqYBLNXOevz1YmwgmKi2aB7tGfizcAT-ewzcvj6Y/s850/rpaOG.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="478" data-original-width="850" height="360" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhQi6j7_DEeOhQHeHbn3WTQG5rAyIBKAcdjHZjA8OdFk9Y6IA_fqMVUAYYU77y7mzHcxSwiFgyzcTKLxowYgfX3wapd27Y9-Crys-flwRUgExKUgrUz-4Loo_Z--0RkIHWxSEKO4svY4FKAOKnLTR_rIqYBLNXOevz1YmwgmKi2aB7tGfizcAT-ewzcvj6Y/w640-h360/rpaOG.jpg" width="640" /></a><br />
<p class="MsoNormal"><span style="font-size: 18px;">In the oil and gas sector, people management plays a crucial role in ensuring the success and productivity of the workforce. With a large number of employees, contractors, and suppliers, managing human resources becomes a complex task. HR professionals in this sector are responsible for recruitment, onboarding, training, performance management, and compliance. Effective people management is vital for maintaining a skilled workforce, ensuring safety, and achieving operational excellence. By leveraging RPA technology, HR operations can be streamlined, allowing HR professionals to focus on strategic initiatives and creating a positive work environment.</span></p><p class="MsoNormal"><span style="font-size: 18px;">Robotic Process Automation (RPA) is a technology that uses software robots or "bots" to automate repetitive and rule-based tasks. These bots mimic human actions and interact with various systems and applications to perform tasks with speed and accuracy. RPA can be applied to a wide range of HR processes, including data entry, payroll processing, employee onboarding, leave management, and performance evaluations. By automating these tasks, HR professionals can save time, reduce errors, and allocate their resources to more value-added activities. RPA technology has the potential to transform HR operations in the oil and gas sector by increasing efficiency and effectiveness.</span></p><p class="MsoNormal"><span style="font-size: 18px;">Implementing RPA in HR operations offers numerous benefits for the oil and gas sector. Firstly, it improves accuracy and reduces errors by eliminating manual data entry. RPA bots can extract data from various sources, validate information, and update HR systems accurately and consistently. Secondly, RPA enhances efficiency by automating time-consuming tasks. This allows HR professionals to focus on strategic initiatives and employee engagement, leading to improved productivity. Thirdly, RPA ensures compliance by following predefined rules and regulations, reducing the risk of non-compliance. Lastly, RPA provides valuable insights through data analytics, enabling HR professionals to make data-driven decisions and improve overall people management strategies.</span></p><p class="MsoNormal"><span style="font-size: 18px;">RPA technology can be applied to various key areas of people management in the oil and gas sector. Firstly, in recruitment and onboarding, RPA can automate resume screening, background checks, and document verification processes, ensuring a smooth and efficient hiring process. Secondly, in employee data management, RPA can update employee records, track certifications and licenses, and manage personnel files, reducing administrative burdens. Thirdly, in performance management, RPA can automate performance evaluations, feedback collection, and goal tracking, facilitating a fair and consistent evaluation process. Lastly, in compliance management, RPA can monitor regulatory changes, update policies and procedures, and ensure adherence to safety and environmental standards.</span></p><p class="MsoNormal"><span style="font-size: 18px;">Beside this, it is important to notice that, the use of RPA in organizational design and staff planning process can reduce the number of employees and labor costs up to 25% (Automation Anywhere) and increase the efficiency and effectiveness up to 27% (NICE).</span></p><p class="MsoNormal"><span style="font-size: 18px;">Furthermore, implementing RPA in different functional areas such as finance and accounting, supply chain management, IT, exploration, production and etc can :</span></p><p class="MsoNormal"><span style="font-size: 18px;"><b>Save time</b></span></p><p class="MsoNormal"><span style="font-size: 18px;">Repetitive administrative tasks are a common part of many business processes. RPA allows your business to automate and perform repetitive tasks with quick, robotic speed. Also, your company and employees benefit from RPA by being able to spend more time on sensitive and complex tasks.</span></p><p class="MsoNormal"><span style="font-size: 18px;"><b>Increase ROI</b></span></p><p class="MsoNormal"><span style="font-size: 18px;">RPA tools are more efficient at managing repetitive tasks than humans, and they help your business improve work productivity. That’s why one of the greatest benefits of RPA is its positive impact on ROI. With robotic process automation, your business can improve several processes and collect significant amounts of qualitative and quantitative data over time, which helps to inform and manage costs more efficiently.</span></p><p class="MsoNormal"><span style="font-size: 18px;"><b>Eliminate human error</b></span></p><p class="MsoNormal"><span style="font-size: 18px;">Realistically, no matter how skilled a person is in their role, human error and fatigue are always factors to be considered. With RPA, automated bots never get tired, so tasks are performed accurately, as they’re meant to, each time.</span></p><p class="MsoNormal"><span style="font-size: 18px;"><b>Elevate security</b></span></p><p class="MsoNormal"><span style="font-size: 18px;">Cybersecurity is extremely important for your business, and RPA solutions help guard against security threats. RPA elevates security by reducing the number of human interactions with sensitive data and information, which helps prevent costly data leaks and breaches. RPA tools help to keep your business secure, whether guarding against access by unauthorised users, or performing triggered account logouts.</span></p><p class="MsoNormal"><span style="font-size: 18px;"><b>Increase compliance</b></span></p><p class="MsoNormal"><span style="font-size: 18px;">Compliance is important for the reliability and sustainability of your business, and RPA solutions adhere to set rules and guidelines with great accuracy and consistency. Typically, most organisations follow various industry and government regulations, and these organisations reap the benefits of RPA with automated, consistent compliance. Additionally, RPA can be audited from a single location, rather than performing multiple application audits—which reduces compliance risks. Robotic process automation can be applied to contract workflows and submissions, form updates, as well compliance-related notifications, and alerts.</span></p><p class="MsoNormal"><span style="font-size: 18px;"><b>Scale business process automation</b></span></p><p class="MsoNormal"><span style="font-size: 18px;">As your company applies an RPA tool to more business activities, the automation of processes and tasks expands throughout your organisation. Robotic process automation also allows your business to scale to meet seasonal increases in demand, and projected targets with greater confidence, whether processing orders, invoices, managing stock, or other forms of production and service.</span></p><p class="MsoNormal"><span style="font-size: 18px;"><b>Employee satisfaction</b></span></p><p class="MsoNormal"><span style="font-size: 18px;">When tedious processes are automated, employees are freed up to focus on more critical needs of your business. As RPA reduces repetitive tasks typically performed by humans, employee satisfaction increases. Employees can then apply their skills to tasks that require strategic thinking, like business planning, public relations, and brainstorming.</span></p><p class="MsoNormal"><span style="font-size: 18px;">Implementing RPA in HR processes requires careful planning and consideration. Firstly, organizations need to identify the HR processes that can benefit from automation and prioritize them based on their impact and complexity. Secondly, a cross-functional team comprising HR professionals, IT experts, and RPA specialists should collaborate to design and develop the automation solution. This includes mapping out the process, identifying automation opportunities, building and testing the bots, and integrating RPA with existing systems. Thirdly, organizations should ensure proper change management by training employees on the new system, addressing concerns, and monitoring the performance of the bots. Continuous improvement and optimization are essential to maximize the benefits of RPA in HR operations.</span></p><p class="MsoNormal"><span style="font-size: 18px;">While RPA technology offers significant advantages, there are challenges and considerations that organizations need to address when adopting RPA in people management. Firstly, organizations should carefully assess the cost and return on investment of implementing RPA. While automation can lead to cost savings in the long run, the initial investment and maintenance costs should be evaluated. Secondly, organizations need to ensure data security and privacy when using RPA bots. Data encryption, access controls, and compliance with data protection regulations are essential to maintain the integrity and confidentiality of employee information. Lastly, organizations should also consider the impact on employees and the need for upskilling and reskilling to adapt to the changing HR landscape.</span></p><p class="MsoNormal"><span style="font-size: 18px;">As RPA technology becomes increasingly prevalent in HR operations, HR professionals need to acquire the necessary skills and knowledge to leverage this technology effectively. Organizations should provide training and upskilling programs to HR professionals to enhance their understanding of RPA and its applications in people management. Training programs can cover topics such as RPA basics, process automation, bot development, and data analytics. Additionally, HR professionals should be encouraged to embrace continuous learning and stay updated with the latest advancements in RPA technology. By investing in training and upskilling, organizations can ensure that their HR teams are equipped to maximize the benefits of RPA in HR operations.</span></p><p class="MsoNormal"><span style="font-size: 18px;">RPA technology has the power to revolutionize HR operations in the oil and gas sector, enhancing people management and improving overall productivity. By automating repetitive and rule-based tasks, HR professionals can focus on strategic initiatives and creating a positive work environment. However, organizations should carefully plan and implement RPA, considering the challenges and ensuring proper change management. Successful case studies in the industry highlight the potential of RPA in streamlining HR processes. With proper training and upskilling, HR professionals can harness the power of RPA and drive the future of HR operations in the oil and gas sector.</span></p><p class="MsoNormal"><span style="font-size: 18px;">In conclusion, oil and gas companies must note that RPA technology needs to be implemented along with a roadmap, where IoT network maturity, networking capabilities, and edge computing play a central role. However, complete digitization can help energy companies score big wins in 70% lesser engineering hours, 60% reduction in data interpretation time, 40% lower maintenance costs, up to 5% more production, and 30% faster delivery. Here are the top 15 use cases of automation in the oil and gas industry that enable leading companies to turn those numbers into reality (Birlasoft):</span></p><p class="MsoNormal"><span style="font-size: 18px;"><b>1. Rig and Well Drilling Automation</b></span></p><p class="MsoNormal"><span style="font-size: 18px;">Well planning and construction, which typically accounts for 40-70% of an O&G company’s CAPEX, can be turned into a differentiating factor with automation. Currently, offshore rigs require 100 full-time employees on board. With automation of the drilling process, which consists of hazardous tasks like drill pipe lifting, pressure drilling, and drill string assembly, and others that call for a high degree of precision, such as well fracking — O&G companies can orchestrate the entire well drilling and rig construction process with 10-15 FTEs.</span></p><p class="MsoNormal"><span style="font-size: 18px;">Moreover, by injecting intelligence into automation-based platforms, geospatial data, surveys, and flow controls can be internalized with exploration analytics toolsets to automate the various steps associated with the well-planning process. In a mature state, drilling workflows are completely digitized using submersibles, connected sensors controlling the machinery, and interfaced with tablets and augmented reality.</span></p><p class="MsoNormal"><span style="font-size: 18px;"><b>2. Remote Monitoring</b></span></p><p class="MsoNormal"><span style="font-size: 18px;">The oil and gas industry is an asset-intensive one, where mission-critical systems that track environmental data points such as temperature, pressure, flow rate, motor torque, tank levels, and amperage must be monitored 24x7. Added to this are situations that call for instant attention - such as compressor failures, power outages, high tank levels, or low water pressure.</span></p><p class="MsoNormal"><span style="font-size: 18px;">Where monitoring these variables calls for round-the-clock human presence, callout devices, and PLC alarms, and onsite drones can automate the monitoring process and eliminate the need for keeping human eyes fixated on the screens and machinery to avoid expensive downtime. Moreover, monitoring automation brings zero error and negligence to onsite operations, increasing uptime and reducing costly workforce hours.</span></p><p class="MsoNormal"><span style="font-size: 18px;"><b>3. Field Operations Automation</b></span></p><p class="MsoNormal"><span style="font-size: 18px;">Field operations in the oil and gas industry, when running on the manual mode, are powered by field workers that can spend only 25% of their time on the target activities. However, with advances in wireless networking and fiber connectivity, installation of fixed cameras, and land and sub-sea robotics, field operations can be automated to identify troubled and sub-optimally running components and virtually eliminate inspection time.</span></p><p class="MsoNormal"><span style="font-size: 18px;">Moreover, augmented microwave imaging and connected worker platforms are also being leveraged to automate reporting and communication in field operations. At high maturity, field operations automation is powered by fully connected assets, augmented with observability solutions, and conditionally optimized with digital twin technology.</span></p><p class="MsoNormal"><span style="font-size: 18px;"><b>4. Oil and Gas Production Optimization</b></span></p><p class="MsoNormal"><span style="font-size: 18px;">Production optimization in the oil and gas industry accounts for over $50 bn of the total value. However, production automation and optimization consist of varying environmental conditions. With current networking technology, a major chunk of the production process - such as pressure reduction in the transfer line, nodal analysis, inflow performance analysis, digital separation optimization, and sub-surface equipment handling can be automated and integrated with alerting systems for highly optimal production.</span></p><p class="MsoNormal"><span style="font-size: 18px;">Automated processes, gas lift insights, flow rate variables, and production analytics can be integrated into the operators’ digital platform to improve their decision-making while empowering them with key controls for real-time intervention. Lastly, production automation also enables operators to run the plants and minimum allowable rates during challenging times when demand stoops, thereby increasing the profitability of production operations in the long run.</span></p><p class="MsoNormal"><span style="font-size: 18px;"><b>5. Logistics and Fleet Management</b></span></p><p class="MsoNormal"><span style="font-size: 18px;">Delivery logistics account for ~15% of total production costs for oil and gas companies. Optimal logistics operations are critical for achieving industry-leading paradigms such as just-in-time delivery of drilling equipment, minimal emission levels from trucks, optimized water-hauling, and remote material tracking post-purchase of equipment.</span></p><p class="MsoNormal"><span style="font-size: 18px;">These paradigms are activated by end-to-end connected logistics, powered by automated fleet management and complete visibility into all the moving parts of the fleet. Logistics automation can also reduce the cost of delivery vehicle service by 20%, dropping the total cost of materials by 2%, representing a 2-3% overall reduction in cost per BOE.</span></p><p class="MsoNormal"><span style="font-size: 18px;"><b>6. Regulatory Compliance</b></span></p><p class="MsoNormal"><span style="font-size: 18px;">The oil and gas industry is heavily regulated, and sustainability-oriented directives will only take the costs of violations higher than before. With some oil and gas companies paying nearly $30 bn in fines, compliance automation can retrospectively safeguard O&G operations by creating audit traceability and guard-railing operations with rules-based process guidelines.</span></p><p class="MsoNormal"><span style="font-size: 18px;">From programming logic that aligns business and production processes to compliance imperatives to report generation automation, compliance automation can bring end-to-end operations of upstream, midstream, and downstream arms of O&G companies to the limelight, thereby helping avoid costly fines and eliminating incidences of violation which cost reputation in addition to a negative impact on the bottom line.</span></p><p class="MsoNormal"><span style="font-size: 18px;">Modern compliance software is also loaded with carbon tracking features that can also help companies adhere to stringent emission guidelines and achieve sustainable operations in the process.</span></p><p class="MsoNormal"><span style="font-size: 18px;"><b>7. Back-office automation</b></span></p><p class="MsoNormal"><span style="font-size: 18px;">With the pandemic underlining the fragility of physical work models, offloading back-office operations onto a remote-ready platform that a digital workforce can operate is critical in finding the agility needed for continuous operations. These tasks include marketing and sales processes, HR processes like onboarding, payroll management, invoice reconciliations, and operational metrics reporting.</span></p><p class="MsoNormal"><span style="font-size: 18px;">By integrating process metrics into persona-focused virtual work platforms, back-office automation can reduce the costs associated with a workforce-intensive unit in the oil and gas industry and improve the employee experience and reduce attrition rates.</span></p><p class="MsoNormal"><span style="font-size: 18px;"><b>8. Data, Analytics, and Reporting</b></span></p><p class="MsoNormal"><span style="font-size: 18px;">With a vast amount of structured data generated from SCADA systems, surface and sub-surface process control data, and time-series production data, analytics automation can inject efficiency gains into the production process, refinery efficiency and ultimately improve the profitability of overall operations. However, reporting processes are currently being run in manual mode, and extracting data from disparate systems to collate them in one place brings redundancy into an otherwise automatable process.</span></p><p class="MsoNormal"><span style="font-size: 18px;">Reporting automation is an easy-to-implement use case that can be leveraged to generate customized reports for various stakeholders at regular intervals, ultimately bringing learnings and insights into action in the oil and gas industry.</span></p><p class="MsoNormal"><span style="font-size: 18px;"><b>9. Workplace Safety</b></span></p><p class="MsoNormal"><span style="font-size: 18px;">The oil and gas industry is replete with high-risk processes where manual intervention leads to hazardous incidents even in the most controlled and monitored environments. However, automation of these high-risk processes in the rig construction, drilling, and fracking stages can help eliminate the need for human intervention.</span></p><p class="MsoNormal"><span style="font-size: 18px;">In addition, connected wearable health devices and cameras, and drones augmented with image recognition technology can be leveraged to improve workplace safety by alarming in case of hazards. Environmental monitoring solutions can alert onsite employees proactively to avoid hazards before they occur.</span></p><p class="MsoNormal"><span style="font-size: 18px;"><b>10. Pricing</b></span></p><p class="MsoNormal"><span style="font-size: 18px;">With the demand for oil and natural gas peaking in 2030 and reducing after that, the need for maximizing gains on each barrel has become critical. However, a lack of pricing guidelines during deals and complex contractual arrangements render legacy cost + margin - based pricing models ineffective. However, by using strategic price management tools powered by real-time market variables and delivery of deal-specific price guidance and incentive pitches to sales staff, oil and gas companies can achieve over 2% higher annual returns.</span></p><p class="MsoNormal"><span style="font-size: 18px;">Such toolsets also internalize mix analysis, rationalize input costs across multiple parties, thereby securing the pricing perimeters within profitable ranges, even when the markets fluctuate and demand levels waver unpredictably.</span></p><p class="MsoNormal"><span style="font-size: 18px;"><b>11. Order Processing</b></span></p><p class="MsoNormal"><span style="font-size: 18px;">Most oil and gas companies are characterized by siloed operations when it comes to ordering fulfillment. What complicates order management processes further is that paper-based processes create the need for multiple back-and-forths to confirm production levels, volume commitments across deals, and a healthy flow within the downstream supply chain.</span></p><p class="MsoNormal"><span style="font-size: 18px;">However, most tasks within these processes lend themselves well to automated execution through RPA bots - for example, order capture, billing, credit/debt management, shipment order accuracy, and shipment documentation and status tracking can be completely automated, thereby eliminating inaccurate orders, reducing costs, near-complete transaction accuracy, and nearly 40% productivity gains.</span></p><p class="MsoNormal"><span style="font-size: 18px;"><b>12. Pipeline Monitoring and Surveillance</b></span></p><p class="MsoNormal"><span style="font-size: 18px;">Gas pipeline construction and maintenance projects can often turn into a cost black-hole when regular field visits and inspections call for multiple trips and the inability to respond to fast compounds losses. However, IoT devices tethered via LPWAN networking can deliver real-time asset data such as cracks, wall thickness, flow rates, and external data such as soil pH, resistivity, humidity, and moisture levels to rules-configured monitoring systems.</span></p><p class="MsoNormal"><span style="font-size: 18px;">Armed with real-time status of the pipelines and automated monitoring and maintenance triggers, zero inspection trips, and instantaneous response to incidents can deliver big savings for downstream oil and gas players.</span></p><p class="MsoNormal"><span style="font-size: 18px;"><b>13. Lease Record Management</b></span></p><p class="MsoNormal"><span style="font-size: 18px;">In the oil and gas industry, most documents still exist on paper. Because these documents are digitized to add up to unstructured data ultimately, automated document management systems are a must-have to keep track of lease termination, renewals, land files, property files and contracts outlining terms of joint ventures, and other critical documents. Otherwise, back-office workers end up under paperwork, and legal expenses can hamper an otherwise profitable venture.</span></p><p class="MsoNormal"><span style="font-size: 18px;">Automated lease record management is all the more critical for global players with operations spanning across multiple geographies and legislations, where leases must be digitized to avoid legal conflicts and interruptions to operations.</span></p><p class="MsoNormal"><span style="font-size: 18px;"><b>14. Asset Management</b></span></p><p class="MsoNormal"><span style="font-size: 18px;">Upstream and mid-stream oil and gas companies rely on thousands of expensive assets in orchestrating production, refining, and transportation. As a result, a comprehensive asset management platform that automates and standardizes acquisition, operation, maintenance, and decommissioning of assets with complete visibility across multiple sites is a key element of operational excellence, making the operations resistant to market volatility improving profitability.</span></p><p class="MsoNormal"><span style="font-size: 18px;">Asset management automation platforms also integrate with predictive maintenance solutions, bring seamless asset management that results in enhanced performance, and maximize the value of capital expenditures for O&G businesses.</span></p><p class="MsoNormal"><span style="font-size: 18px;"><b>15. Procure to Pay Automation</b></span></p><p class="MsoNormal"><span style="font-size: 18px;">Because the oil and gas industry brings unique constraints in the Procure-to-Pay cycle, standardization is central in P2P automation. The Petroleum Industry Data Exchange standards enable a streamlined exchange of technical data points that enable O&G companies to automate their P2P processes, injecting efficiency in the process while reducing invoice clearing times and backlogs.</span></p><p class="MsoNormal"><span style="font-size: 18px;">P2P excellence is also critical for maintaining cost competitiveness, and automation can bring promising results while improving profitability for upstream, midstream, and downstream players.</span></p><p class="MsoNormal"><span style="font-size: 18px;">The oil and gas industry is at a tipping point, and automation brings big promises in the form of potential value untapped in the industry. Moreover, automation releases operations from heavy reliance on human intervention and forms a stepping stone to enabling remote operations for a digital workforce. The next few years will be decisive in demarcating the leaders, and automation will make early adopters a strong contender, especially as it brings savings and cost-competitiveness to an industry combating pricing pressures.</span></p>Elvin Mahmudovhttp://www.blogger.com/profile/09842959295128234901noreply@blogger.com0tag:blogger.com,1999:blog-7433072833916709916.post-51979219087600983292023-08-23T04:20:00.005-07:002023-08-24T05:03:10.676-07:00THE ZANGEZUR CORRIDOR: A GAME-CHANGER FOR INTERNATIONAL TRADE AND LOGISTICS<p><span style="background-color: white; font-size: 18px;">The Zangezur Corridor, located in the South Caucasus region, has emerged as a transformative route for international trade and logistics. This strategic corridor connects the landlocked countries of Azerbaijan and Armenia providing them with access to vital markets and enabling seamless connectivity between Europe and Asia. The development of the Zangezur Corridor has the potential to revolutionize trade routes and reshape global transport networks. In this article, we will explore the significance of the Zangezur Corridor for international trade, delve into its potential economic benefits, analyze the challenges it faces, and discuss the government initiatives and investments that are driving its development.</span></p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiCKVvLXqWi-xYdn-mDAyb_fXamoMO6Vzf4LI1CiNnji-RS0oLMo8ScHH_sUNQgTYxe-nzIVlcgH3utz6YgAcjvXVvVq3Jx30hK2PlLnHUMR6TdUyHcLOOqWhenes5W2yEvcUlrp6zUENZc_UvIMcfARV_Beu5PgEqmEeVrEblxfbt4cbFjed_bqD-qpbRv/s1946/zangezur.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1070" data-original-width="1946" height="352" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiCKVvLXqWi-xYdn-mDAyb_fXamoMO6Vzf4LI1CiNnji-RS0oLMo8ScHH_sUNQgTYxe-nzIVlcgH3utz6YgAcjvXVvVq3Jx30hK2PlLnHUMR6TdUyHcLOOqWhenes5W2yEvcUlrp6zUENZc_UvIMcfARV_Beu5PgEqmEeVrEblxfbt4cbFjed_bqD-qpbRv/w640-h352/zangezur.jpg" width="640" /></a></div><br /><div><div><span style="background-color: white; font-size: 18px;">The Zangezur Corridor holds immense significance for international trade due to its strategic location and the opportunities it presents for seamless connectivity. Previously, Armenia and Azerbaijan were geographically isolated from major markets, hindering their ability to participate fully in global trade. However, with the establishment of the Zangezur Corridor, these countries now have a direct and efficient route to access the Black Sea and the Mediterranean Sea. This development opens up new avenues for trade, allowing businesses in the region to tap into a broader customer base and diversify their export markets. Moreover, the Zangezur Corridor provides a shortcut for cargo transportation between Europe and Asia, reducing transit times and costs. This enhanced connectivity has the potential to boost trade volumes and stimulate economic growth in the region.</span></div><div><span style="background-color: white; font-size: 18px;">The development of the Zangezur Corridor brings forth a myriad of potential economic benefits for the countries involved and the wider region. By providing landlocked countries like Armenia and Azerbaijan with improved access to global markets, the corridor unlocks new trade opportunities and stimulates economic growth. Increased trade volumes have the potential to generate employment, attract foreign direct investment, and enhance productivity. Moreover, the Zangezur Corridor can act as a catalyst for regional integration, fostering cooperation between countries and promoting stability. The corridor also facilitates the development of logistics hubs, which can serve as centers for value-added services, such as warehousing, packaging, and distribution. These hubs attract investments and create jobs, further contributing to the economic prosperity of the region.</span></div><div><span style="background-color: white; font-size: 18px;"><br /></span></div><div><span style="background-color: white; font-size: 18px;">The Zangezur Corridor has a pivotal role to play in global transport networks, offering a more direct and efficient route for cargo transportation. Previously, trade between Europe and Asia predominantly relied on maritime routes, which often involved lengthy and costly detours. However, with the establishment of the Zangezur Corridor, cargo can be transported overland, significantly reducing transit times and costs. This alternative route not only benefits the countries directly connected to the corridor but also has a positive impact on neighboring regions. The corridor enables seamless connectivity between the Black Sea and the Caspian Sea, opening up new trade routes and enhancing regional cooperation. Additionally, the Zangezur Corridor aligns with China's Belt and Road Initiative, further integrating it into global transport networks and positioning it as a key transit hub between Europe and Asia.</span></div><div><span style="background-color: white; font-size: 18px;"><br /></span></div><div><span style="background-color: white; font-size: 18px;">Despite its immense potential, the development of the Zangezur Corridor faces several challenges and obstacles. One of the primary challenges is geopolitical tensions in the region, which have hindered cooperation and coordination between countries. These tensions have led to infrastructure disruptions and limited cross-border trade, impeding the smooth functioning of the corridor. Additionally, the mountainous terrain in the region poses logistical challenges, requiring significant investments in infrastructure development. Furthermore, the Zangezur Corridor intersects with existing trade routes, necessitating the harmonization of different regulatory frameworks and customs procedures. Overcoming these challenges will require close collaboration between governments, international organizations, and private stakeholders to ensure the seamless functioning of the corridor and maximize its potential benefits.</span></div><div><span style="background-color: white; font-size: 18px;"><br /></span></div><div><span style="background-color: white; font-size: 18px;">Azerbaijan and some other governments in the region have recognized the importance of the Zangezur Corridor and have undertaken various initiatives and investments to facilitate its development. Infrastructure projects, including the construction of roads, railways, and border crossings, are being carried out to enhance connectivity and streamline trade flows. Governments are also implementing policy reforms to improve the ease of doing business and attract foreign investments. Furthermore, regional cooperation agreements are being forged to foster trade integration and enhance cross-border cooperation. These government initiatives and investments are crucial in creating an enabling environment for the development of the Zangezur Corridor and ensuring its long-term success.</span></div><div><span style="background-color: white; font-size: 18px;"><br /></span></div><div><span style="background-color: white; font-size: 18px;">To gain insights into the potential of the Zangezur Corridor, it is instructive to examine case studies of successful trade routes and logistics hubs around the world. The Panama Canal, for example, revolutionized global trade by providing a shortcut between the Atlantic and Pacific Oceans. This waterway significantly reduced transit times and costs, facilitating the growth of international trade. Similarly, logistics hubs like Dubai's Jebel Ali Port and Singapore's Port of Singapore have become critical nodes in global supply chains. These hubs offer state-of-the-art infrastructure, efficient customs procedures, and value-added services, attracting businesses and facilitating seamless trade. Drawing lessons from these case studies, the Zangezur Corridor can aspire to become a thriving trade route and a logistics hub of global importance.</span></div><div><span style="background-color: white; font-size: 18px;"><br /></span></div><div><span style="background-color: white; font-size: 18px;">The future prospects for the Zangezur Corridor are promising, with numerous opportunities for further development and growth. As geopolitical tensions ease in the region, the corridor can fully unlock its potential and become a vibrant trade route. The corridor's strategic location positions it to capitalize on the growing trade flows between Europe and Asia, particularly as China's Belt and Road Initiative gains momentum. Moreover, advancements in technology and digitalization can further enhance the efficiency and effectiveness of the corridor, enabling seamless cargo tracking, streamlined customs procedures, and improved supply chain visibility. By embracing these opportunities and addressing the challenges, the Zangezur Corridor can become a game-changer for international trade and logistics.</span></div><div><span style="background-color: white; font-size: 18px;"><br /></span></div><div><span style="background-color: white; font-size: 18px;">The development of the Zangezur Corridor has far-reaching implications for both regional and global economies. Regionally, the corridor can stimulate economic growth, promote regional integration, and foster stability. By providing landlocked countries with improved access to global markets, the corridor can attract investments, create jobs, and diversify export markets. Moreover, the enhanced connectivity facilitated by the Zangezur Corridor can foster cooperation among neighboring countries, leading to improved political relations and stability. Globally, the corridor contributes to the diversification and resilience of trade routes, reducing dependence on maritime routes and enhancing global trade flows. The corridor's alignment with China's Belt and Road Initiative further positions it as a key player in global trade and logistics.</span></div><div><span style="background-color: white; font-size: 18px;"><br /></span></div><div><span style="background-color: white; font-size: 18px;">The Zangezur Corridor represents a transformative opportunity for international trade and logistics. Its strategic location, potential economic benefits, and role in global transport networks make it a game-changer in reshaping trade routes and stimulating economic growth. Despite the challenges it faces, government initiatives, infrastructure investments, and regional cooperation efforts are paving the way for the corridor's development. As geopolitical tensions ease and technology advancements continue, the Zangezur Corridor has the potential to become a thriving trade route, connecting Europe and Asia seamlessly. The impact of the corridor on regional and global economies cannot be understated, as it fosters economic growth, promotes stability, and enhances global trade integration. The Zangezur Corridor is poised to redefine the future of international trade and logistics.</span></div></div>Elvin Mahmudovhttp://www.blogger.com/profile/09842959295128234901noreply@blogger.com0tag:blogger.com,1999:blog-7433072833916709916.post-14740752701726734332023-08-23T02:38:00.008-07:002023-08-23T03:23:43.031-07:00ECONOMIC GROWTH MODEL FOR KARABAKH:THE LIBERATED REGION FROM OCCUPATION<p>Karabakh, the recently freed region from occupation, now faces the challenge
of rebuilding its economy and ensuring sustainable growth for its people. One
potential solution lies in implementing an economic growth model tailored
specifically to Karabakh's unique circumstances.</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh5zN--jhAvbQWIoLLzhiKXhmbLaWK0F04n-szAtrRWY6tyNJxLj23_YK6HN02QH9ECtujrUQUnPi-dTc9Qy-e2IMq7nv9ICHpfF7qSSjaN6et0aR78g8VU72f0ZGuqhosZzIvHyR89OGHzzs1r76KewYqXDA8gpRc73GSv4sSCGfR_brLc8a74eixmQ6YH/s975/karabakh.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="669" data-original-width="975" height="440" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh5zN--jhAvbQWIoLLzhiKXhmbLaWK0F04n-szAtrRWY6tyNJxLj23_YK6HN02QH9ECtujrUQUnPi-dTc9Qy-e2IMq7nv9ICHpfF7qSSjaN6et0aR78g8VU72f0ZGuqhosZzIvHyR89OGHzzs1r76KewYqXDA8gpRc73GSv4sSCGfR_brLc8a74eixmQ6YH/w640-h440/karabakh.jpg" width="640" /></a></div><p>To begin with, it is important to assess the current economic situation in
Karabakh. Years of conflict and occupation have left the region devastated, with
infrastructure in ruins and a high number of internally displaced persons
(IDPs) who have lost their homes and livelihoods. The priority must be on
creating new opportunities for these IDPs while also attracting investment and
fostering entrepreneurship.</p><p>The economic growth model for Karabakh should focus on several key areas. There
needs to be a strong emphasis on diversifying the economy beyond traditional
sectors such as agriculture. This could involve promoting industries like
tourism, technology, and renewable energy that can provide much-needed jobs and
generate revenue.</p><p>Investing in education and skills training is crucial for ensuring that the
local workforce is equipped with the necessary knowledge to participate
effectively in emerging sectors. This would not only enhance productivity but
also attract investors looking for a skilled labor force.</p><p>Furthermore, infrastructure development plays a vital role in enabling economic
growth. Improving transportation networks, communication systems, and access to
basic services will create an environment conducive to business expansion while
improving living standards for residents.</p><p>In addition to these measures, it is essential to prioritize social welfare
programs that support vulnerable groups such as refugees who have been affected
by years of conflict. By providing them with adequate housing assistance,
healthcare services, and educational opportunities, they can become active
participants in Karabakh's economic revival rather than being left behind.</p><p>Implementing this economic grow model tailored specifically to Karabakh's needs
has multiple benefits. It will lead to job creation at various skill levels
which will help alleviate poverty rates among IDPs and other marginalized
communities. Increased foreign direct investment will boost capital inflows
into the region, stimulating economic activity and providing resources for
further development.</p><p>The benefits of implementing an economic growth model in Karabakh are vast
and far-reaching. It would provide a solid foundation for the region to rebuild
its shattered economy after years of occupation and conflict.</p><p>By focusing on economic growth, Karabakh can attract investment from both
domestic and international sources. This influx of capital would not only
create job opportunities for the local population but also stimulate
entrepreneurship and innovation.</p><p>Additionally, an economic growth model would enable Karabakh to diversify its
industries beyond traditional sectors like agriculture. By embracing new
technologies and encouraging sectoral development, the region can tap into
emerging markets and capitalize on global trends.</p><p>Furthermore, sustained economic growth would improve living standards for the
people of Karabakh. It would lead to increased access to healthcare services,
education facilities, and infrastructure development. This improved quality of
life would foster social stability and cohesion within the community.</p><p>Moreover, by adopting an economic growth model that prioritizes sustainability
and environmental responsibility; Karabakh can preserve its natural resources
while still reaping the benefits of development.</p><p>Implementing an economic grow model in Karabakh holds immense potential for
revitalizing the region's economy, creating employment opportunities, improving
living standards, fostering innovation & entrepreneurship whilst preserving
the environment. It is a crucial step towards building a prosperous future for
this freed region from occupation.</p><p>The economic growth model holds great potential for revitalizing Karabakh and
fostering its development as a thriving region after years of occupation. By
implementing strategic policies that prioritize investment, infrastructure
development, and job creation, Karabakh can attract both domestic and foreign
investors, stimulate various sectors of the economy, and provide opportunities
for its displaced population.</p><p>The liberation of Karabakh from occupation presents a unique opportunity to
rebuild not only physical structures but also social cohesion and unity among
its people. Through education initiatives that focus on skills training and
entrepreneurship programs, the region can empower its citizens to actively
participate in shaping their own future.</p><p>It is important for international organizations, neighboring countries, as well as the global community to come together in
supporting the economic growth model for Karabakh. By offering financial aid,
technical expertise, and diplomatic support during this critical transition
period, we can collectively contribute to establishing stability in the region
while ensuring sustainable economic progress.</p><p>Let us envision a prosperous future for Karabakh where refugees are resettled
with dignity and have access to equal opportunities. The implementation of an
inclusive economic growth model will not only bring tangible benefits such as
increased employment rates and GDP growth but also foster reconciliation among
communities torn apart by conflict.</p><p>Karabakh's journey towards economic recovery will require time, dedication,
collaboration between various stakeholders including government agencies at
different levels (local authorities), private sector actors (businesses), civil
society organizations (NGOs) - all working hand in hand towards
shared prosperity.</p><p>As we reflect on past challenges faced by this resilient region with hope in
our hearts let us continue supporting efforts aimed at creating a brighter
future for all who call Karabakh home!</p><p><o:p></o:p></p>Elvin Mahmudovhttp://www.blogger.com/profile/09842959295128234901noreply@blogger.com0tag:blogger.com,1999:blog-7433072833916709916.post-46657532086638313472023-08-23T00:38:00.007-07:002023-08-23T00:42:35.576-07:00ENHANCING TRANSPARENCY AND ACCOUNTABILITY: HOW MANAGEMENT TOOLS COMBAT CORRUPT BUSINESS PRACTICES<p>In today's global economy, corrupt business practices have become a significant concern. Corruption not only undermines the integrity of businesses but also has severe implications for society as a whole. It erodes public trust, hampers economic growth, and perpetuates social inequality. To combat this issue, it is crucial to enhance transparency and accountability within organizations. By implementing effective management tools, businesses can mitigate the risk of corrupt practices and foster a culture of integrity.</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEirmQoPGpFsu0dVYI3edGuL3s-TKrESAIpo4KdCPkQTkCGM_moPkgCqWoAl_QpGCzg0RzkKRYAj3UlSh1Jfna9PpM_A1n2fuJr7iBINHaT4MQTRZ_sqfOy1FR2OUqY1RXPJm94MbkBGCskr43jklJEqvqlHqowZ7yfafWAoAboZpteq-hSHiLDKWiZ78FOG/s1903/bribery.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="550" data-original-width="1903" height="184" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEirmQoPGpFsu0dVYI3edGuL3s-TKrESAIpo4KdCPkQTkCGM_moPkgCqWoAl_QpGCzg0RzkKRYAj3UlSh1Jfna9PpM_A1n2fuJr7iBINHaT4MQTRZ_sqfOy1FR2OUqY1RXPJm94MbkBGCskr43jklJEqvqlHqowZ7yfafWAoAboZpteq-hSHiLDKWiZ78FOG/w640-h184/bribery.jpg" width="640" /></a></div><p>Transparency and accountability are fundamental pillars of a well-functioning business environment. Transparency ensures that information flows freely, enabling stakeholders to make informed decisions. It involves disclosing relevant data, processes, and transactions, thereby creating trust among stakeholders. Accountability, on the other hand, holds individuals and organizations responsible for their actions. It establishes a framework where ethical behavior is rewarded, and unethical conduct is penalized.</p><p>Corruption can take various forms within businesses. Bribery, embezzlement, fraud, and nepotism are just a few examples. Bribery, in particular, is a prevalent corrupt practice. It involves offering or accepting gifts, money, or favors to gain unfair advantages. Embezzlement occurs when an employee misappropriates funds entrusted to them for personal gain. Fraudulent activities, such as misrepresentation of financial statements, can deceive investors and stakeholders. Nepotism, favoring relatives or friends in hiring or promotions, undermines meritocracy and fairness.</p><p>Management tools play a crucial role in combating corrupt practices within businesses. These tools provide a structured framework for monitoring, analyzing, and controlling various aspects of organizational operations. By leveraging technology and data analytics, management tools enable businesses to identify suspicious patterns, detect anomalies, and prevent fraudulent activities. Moreover, they facilitate the implementation of robust internal controls and risk management systems, ensuring transparency and accountability at every level.</p><p>There are various management tools available to enhance transparency and accountability within organizations. Enterprise Resource Planning (ERP) systems integrate and streamline business processes, enabling real-time monitoring of financial transactions. These systems provide audit trails, ensuring transparency in financial reporting. Customer Relationship Management (CRM) software enables businesses to track interactions with clients, ensuring fair and equitable treatment. Workflow management tools automate and standardize processes, reducing the risk of favoritism or manipulation.</p><p>The use of management tools brings several benefits in preventing corruption. Firstly, they enable businesses to identify and analyze potential risks, allowing proactive measures to be taken. This minimizes the likelihood of corrupt practices occurring. Secondly, management tools automate routine tasks, reducing the chances of human error and manipulation. By removing opportunities for unethical behavior, businesses can create a culture of integrity. Lastly, these tools provide a robust framework for internal audits and compliance monitoring, ensuring adherence to ethical standards and legal regulations.</p><p>Several case studies demonstrate the successful implementation of management tools in combating corrupt practices. One such example is the use of data analytics software by a multinational corporation. By analyzing vast amounts of transactional data, the company could identify suspicious patterns and detect potential fraud. This led to the prevention of significant financial losses and the prosecution of individuals involved in corrupt practices. Another case study involves the implementation of ERP systems in a large oil and gas company. The system automated budgetary processes, reducing the risk of embezzlement and improving financial transparency.</p><p>While management tools are valuable in combating corruption, they are not without challenges and limitations. One significant challenge is the initial cost of implementing these tools. Small and medium-sized enterprises may find it financially burdensome to adopt sophisticated management systems. Additionally, the effectiveness of these tools relies on accurate data input and proper system configuration. Inadequate training and resistance from employees can hinder the successful implementation of management tools. Moreover, the rapidly evolving nature of technology requires businesses to continuously update their systems to address new threats and vulnerabilities.</p><p>To ensure the successful implementation of management tools, businesses should follow certain best practices. Firstly, it is crucial to conduct a thorough risk assessment to identify the specific areas where corrupt practices are most likely to occur. This enables businesses to prioritize their investments in management tools effectively. Secondly, businesses should provide comprehensive training to employees to ensure they understand how to use these tools effectively. Regular audits and system checks should be conducted to identify any vulnerabilities or weaknesses. Lastly, businesses should foster a culture of transparency and accountability, where employees feel empowered to report any suspicious activities without fear of retaliation.</p><p>Enhancing transparency and accountability is a critical step in combating corrupt business practices. By utilizing effective management tools, businesses can mitigate the risk of corruption and create a culture of integrity. These tools enable businesses to monitor, analyze, and control various aspects of their operations, ensuring transparency in financial reporting, fair treatment of stakeholders, and adherence to ethical standards. While challenges and limitations exist, following best practices and continuously updating management systems can help businesses stay ahead of evolving threats. The future of transparency and accountability in business lies in the hands of organizations willing to invest in these tools and foster a culture of integrity.</p><p><br /></p>Elvin Mahmudovhttp://www.blogger.com/profile/09842959295128234901noreply@blogger.com0tag:blogger.com,1999:blog-7433072833916709916.post-31902360157323928442023-08-22T04:35:00.004-07:002023-08-28T09:37:44.437-07:00COMPETENCY SERIES: INNOVATION<p>Innovation is the willingness and ability to take a creative approach to problems or issues, to “think outside the box”, to go beyond the conventional, and to explore creative uses of resources (e.g., doing more with less). It involves the ability to develop, adopt and apply new and unique approaches and ideas with clear impact on improving business outcomes. It also includes using intuition, experimentation and fresh perspectives to enhance performance by developing or promoting new processes, services and/or programs.</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhVR_OI6zK7oQYQZeS4CDHuqZFe4rrB1kZGM5oVB3SXWfASfjoZFAhnAkTmi81AUNIxX88y0dreH9gUcBOp8TGrcsQBHtadSw2PJ9rCPgQGBNY8oypNe6XohRrake4h3F3e2vO4z00YeCINoiVtPr4WrM15smp6RtLp6oCJya1g0OMpxGTfdaC22J8CBio-/s960/innovation.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="540" data-original-width="960" height="360" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhVR_OI6zK7oQYQZeS4CDHuqZFe4rrB1kZGM5oVB3SXWfASfjoZFAhnAkTmi81AUNIxX88y0dreH9gUcBOp8TGrcsQBHtadSw2PJ9rCPgQGBNY8oypNe6XohRrake4h3F3e2vO4z00YeCINoiVtPr4WrM15smp6RtLp6oCJya1g0OMpxGTfdaC22J8CBio-/w640-h360/innovation.jpg" width="640" /></a></div><p>The main elements of innovation are:</p><p><b>1. Is open to new ideas</b></p><p>- Is open minded when presented with a new perspective.</p><p>- Applies new information to work problems and situations.</p><p>- Recognizes when a situation calls for or can be improved by an approach different from the usual.</p><p><b>2. Questions conventional work methods</b></p><p>- Questions/challenges conventional approaches and/or current thinking.</p><p>- Uses new information to offer realistic alternatives.</p><p>- Is prepared to “try out” different solutions in a way that maintains a safe environment.</p><p>- Actively contributes to brainstorming sessions in his/her work area.</p><p>- Works with peers or colleagues to test the viability of a new approach before applying it.</p><p><b>3. Proposes innovative ideas</b></p><p>- When looking at information, generates new ideas and innovative solutions to problems by importing ideas from outside the organization.</p><p>- Pulls together ideas, issues and observations to create and/or introduce innovative solutions or suggestions.</p><p>- Suggests approaches and methods from other sources as alternative solutions to conventional</p><p>approaches when there is evidence or sound thinking substantiating the viability of this approach.</p><p>- Is not overly influenced by current thinking or methodologies.</p><p>- Seeks out and incorporates new suggestions and ideas.</p><p><b>4. Takes action to innovate</b></p><p>- Uses diverse perspectives to improve the effectiveness of organizational processes, practices or programs.</p><p>- Modifies practices or methodologies that have been used elsewhere.</p><p>- Enhances performance by doing something that may be new and different for the organization.</p><p>- Is agile and draws upon experiences in relevant and/or unrelated areas to create breakthrough solutions.</p><p><b>5. Encourages others to innovate</b></p><p>- Leads others by demonstrating innovations that advance the efficiency and effectiveness of the organization.</p><p>- Acts in ways that help others to generate breakthrough ideas, fresh perspectives and new opportunities.</p><p>- Uses proactive methods and tactics to foster creativity by creating an environment that inspires new ideas, and provides the necessary resources to realize them.</p><p><b>6. Drives innovation forward</b></p><p>- Enhances performance by strategically positioning the organization to introduce leading edge technologies, services, programs and processes new to the municipal services sector.</p><p>- Takes calculated risks in trying something new.</p><p>- Commits personal investment to innovation in the face of uncertain outcomes.</p><p>- Seeks out and develops revolutionary technologies </p>Elvin Mahmudovhttp://www.blogger.com/profile/09842959295128234901noreply@blogger.com0tag:blogger.com,1999:blog-7433072833916709916.post-91273518024209417712023-08-22T01:21:00.012-07:002023-08-28T09:37:56.517-07:00COMPETENCY SERIES: BUSINESS ACUMEN<p>Business acumen is the ability to understand the business implications of opportunities and decisions, and to implement successful business strategies to improve organizational performance. It requires an ability to see the big picture by combining an awareness of business issues, processes and outcomes, and the impact they have on the community and organization’s strategic direction.</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj9fN3tmxn8kAFuz2LzhOJXUlRwQM4zCr9YbtegfANxs1faKA85mQmgL4yHJZDMM3ipAT1HsbC0M_hk2iRtuY0ZPLl-BswZcAQLCPwsrULjfWbl3jv_LCeb7wp28u0APycDHyhnYABIr2yMJtB-6UvHqdZeq2IoGbm2Qs3NxaQQUf3cz-OqyD5sLpFpkS93/s2000/cons.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1200" data-original-width="2000" height="384" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj9fN3tmxn8kAFuz2LzhOJXUlRwQM4zCr9YbtegfANxs1faKA85mQmgL4yHJZDMM3ipAT1HsbC0M_hk2iRtuY0ZPLl-BswZcAQLCPwsrULjfWbl3jv_LCeb7wp28u0APycDHyhnYABIr2yMJtB-6UvHqdZeq2IoGbm2Qs3NxaQQUf3cz-OqyD5sLpFpkS93/w640-h384/cons.jpg" width="640" /></a></div><p>The main elements of business acumen are:</p><p><b>1. Possesses basic knowledge of business</b></p><p>- Understands how own job fits in relationship to results / outcomes / performance.</p><p>- Appropriately applies existing policies to address business needs.</p><p>- Improves one’s understanding of the business.</p><p>- Demonstrates a basic understanding of business fundamentals.</p><p><b>2. Incorporates business fundamentals</b></p><p>- Understands tactical business fundamentals and incorporates them into decision making and setting and measuring outcomes against critical performance indicators (e.g., financial, productivity, etc.).</p><p>- Builds the business case for services, programs and initiatives, demonstrating how they support broader business objectives.</p><p><b>3. Understands the internal and external environment</b></p><p>- Is aware of trends in the external environment that have an impact on the organization (e.g., new technologies).</p><p>- Actively researches current developments in the areas of business.</p><p>- Demonstrates how business unit services, solutions and initiatives help organization to respond to the impact of changing economic conditions.</p><p>- Brings in other areas of expertise that can help to position the organization for continued growth.</p><p><b>4. Applies broader business metrics</b></p><p>- Communicates the implications of business strategies on business unit programs and offerings.</p><p>- Reviews own strategic actions against the long-term strategic goals of the organization.</p><p>- Quantitatively measures the effectiveness (cost and value) of each product, service, and solution to determine their business viability (i.e., risk versus cost-benefit).</p><p>- Leverages cost-benefit analyses when designing and implementing new programs, services and other initiatives.</p><p><b>5. Demonstrates strategic agility</b></p><p>- Develops new programs or approaches to align the business strategy with the external environment; displays an innovative mindset.</p><p>- Understands the strategies of key stakeholders, and formulates proactive strategies to gain advantages.</p><p>- Identifies and acts on the critical issues among competing and compelling business priorities to ensure actions are aligned with the organization’s strategic goals.</p><p><b>6. Directs the organization</b></p><p>- Displays a strategic understanding of the economy, trends and broad business issues, including new developments in community services and the public sector, and uses that understanding to formulate strategies for the organization.</p><p>- Develops the strategy for partnerships and alliances that will best further the goals of the organization.</p><p>- Applies an extensive knowledge of all of the internal and external factors that influence and affect the long-term success of the organization.</p>Elvin Mahmudovhttp://www.blogger.com/profile/09842959295128234901noreply@blogger.com0tag:blogger.com,1999:blog-7433072833916709916.post-19707884326986479232023-08-22T00:39:00.005-07:002023-08-22T05:11:14.904-07:00SPAN OF CONTROL<p><span style="color: #56687a; font-family: -apple-system, system-ui, BlinkMacSystemFont, Segoe UI, Roboto, Helvetica Neue, Fira Sans, Ubuntu, Oxygen, Oxygen Sans, Cantarell, Droid Sans, Apple Color Emoji, Segoe UI Emoji, Segoe UI Emoji, Segoe UI Symbol, Lucida Grande, Helvetica, Arial, sans-serif;"><span style="font-size: 24px;"><i>"The optimal span of control for managers is the extent to which they can assess and manage the individual effectiveness of employees" - Elliott Jaques</i></span></span></p><p>Span of control refers to the number of employees who report directly to the manager. In the first half of the last century, the maximum number of employees directly subordinated to the manager was 6 people, or even less. But since the 1980s, with the development of industry and information technology, organizational leaders have flattened their organizational structure, and the upper limit of this range has been increased to 10 or more people. The main reason for this was the development of information technologies and the availability of these technologies. Information technologies have gradually replaced middle management functions such as collecting, processing, and presenting operational data, and organizations have been able to reduce the number of middle managers and employ more employees with fewer managers. It is no coincidence that in 1986 statistics, 55% of Fortune 500 companies had a COO (chief operating officer) position, which oversees the company's main business processes and includes the main powers in this area, while in the corresponding statistics of 2014, this ratio was decreased to %36.</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwsU9-QNQ0N9muUvXwuLkaO3Ylz0BPeLGEtNmTC-kk74HPVBP_ot1yhH4NS44Tso8HmO2RROKpCUIzdGBA_BBebcwNqhSFGgrMb6S-yd-ASZtIg7Z4KPrJ0cRiWMqR7zqKmbNb6_Hrfi16eMv3aBWx-D34eT0j5RoyERDpzDtXCRwoLbhjH8zEQ8hicMQg/s900/ND.jpeg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="600" data-original-width="900" height="426" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwsU9-QNQ0N9muUvXwuLkaO3Ylz0BPeLGEtNmTC-kk74HPVBP_ot1yhH4NS44Tso8HmO2RROKpCUIzdGBA_BBebcwNqhSFGgrMb6S-yd-ASZtIg7Z4KPrJ0cRiWMqR7zqKmbNb6_Hrfi16eMv3aBWx-D34eT0j5RoyERDpzDtXCRwoLbhjH8zEQ8hicMQg/w640-h426/ND.jpeg" width="640" /></a></div><br /><p>Another reason for the expansion of the span of control is that organizations are implementing more and more effective follow-up training programs. Thus, in the traditional management approach, the path to the position of CEO (General Director) passed through the positions of Deputy CEO (Deputy Director, Vice President, etc.) or COO. In this case, those duties led to narrowing the range of the head of the organization and increasing the chain of command. Continuing education programs have enabled the promotion of positions from various functional areas to the position of CEO, and thus the need for the positions of Deputy CEO and COO in career matters has gradually disappeared.</p><p>The expansion of the range of control has not left an impact on the composition of the management board of the organizations. Thus, the mentioned trend led to the involvement of some functional managers in the management team and the expansion of the composition of the team. For information, it can be noted that since the eighties of the last century, 4-5 new functional management positions such as CMO (marketing director), CIO (IT director), CHRO (HR director) have been involved in the board.</p><p>Graicunas, one of the first theorists on the optimal number of spans of control, hypothesized in 1933 about the influence of mental capacity and attention on spans of control. He proved mathematically that each employee included in the span of control increases the potential for interaction with the supervisor and the workload of the supervisor. According to Graicunas, the cost and speed of management with a rigid chain of command creates a dilemma, and organizations must think of different mechanisms to overcome this problem.</p><p>In 1956, Lyndall Urwick further theorized the effect of geographic spread and face-to-face encounters on span of control.</p><p>McKenzie also stated in 1978 that: “some think that a wide span of control will lead to a reduction in management costs. but on the other hand, if the span of control is wide, the manager will not be able to effectively manage a large number of employees who directly report to him. Therefore, organizations must be able to properly balance the above-mentioned opposing trends."</p><p>Fayol, who interpreted the management of the organization from the management perspective for the first time, also noted that the span of control is directly proportional to the burden of information on the managers. He recommended that the subordinate employees communicate with each other directly, not through their superiors. This principle is called "Fayol bridge" in management science. According to the Fayol bridge, decision-making authority should be shared with people or structures at the lower level of the organization, and the authority and responsibility of the lower ones should be increased. This theory is one of the first steps taken in the field of horizontal integration of organizational activities.</p><p>Fayol suggested that the optimal number of employees should be less than 6, and that there may be up to 20-30 people in positions such as foreman, foreman, and supervisor.</p><p>In 1951, Davis further concretized the ideas about the optimal span of control and divided management work into 2 parts: physical and mental work. For high-level and intellectual leaders, an adequate range was determined to be 3-8 people. It was reported that the first-level line managers who manage the workforce can manage 30 people.</p><p>Theorists such as Mckenzie, Massie, and Pugh note that there cannot be a generally accepted optimal range. According to them, there are many factors that influence the balance between the controllability of an organization and the desired level of control.</p><p>The span of control is highly dependent on factors such as organizational structure, technology used, functions and tasks performed, competence of managers and employees, and geographical distribution. Elliott Jaques in 1988 brought an alternative approach to this issue, stating that the optimal span of control for managers is the extent to which they can assess and manage the individual effectiveness of employees.</p><p>In 2012, Gary Nielsen, in an article published in HBR magazine, noted that the seniority of the CEO directly affects the span of control. Thus, a newly appointed manager prefers to work directly with all subordinate managers at the beginning and during the learning period. As managers gain experience, they tend to delegate and narrow their spans of control. In addition, factors such as the CEO's participation in internal committees and commissions, performing work and responsibilities other than his direct main functions, also directly affect the scope of control.</p><p>In general, there is no standard figure for the control range. It is not a right step to create and apply a norm for the organization based on the information provided in various theories or benchmark reports. If such a norm is to be created, the strategy, corporate culture, management style, leadership training programs of that organization should be taken into account.</p>Elvin Mahmudovhttp://www.blogger.com/profile/09842959295128234901noreply@blogger.com0tag:blogger.com,1999:blog-7433072833916709916.post-42442834230612501412023-08-22T00:32:00.006-07:002023-08-22T03:07:52.318-07:00HOW EFFICIENTLY ARE WE USING OUR LABOR RESOURCES?<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi0ZnX9DZRGmo-OWFQJO1DpFWqVaVq7OsgAYAvGnRU3gkioDUhTHeBTU7z4JeVe9C1q415Hvz38jMRMgB72qGtqu-tiZZNY19nARaGD9Qu6IptuRQwqdNaexucvXbxWIDiHjdj9uV3ZsDnPfOtzXsjh_509ngStmaulsKNp-FsfsMj53GwYVyPzNxm7IVU1/s752/ER0.jpeg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="332" data-original-width="752" height="282" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi0ZnX9DZRGmo-OWFQJO1DpFWqVaVq7OsgAYAvGnRU3gkioDUhTHeBTU7z4JeVe9C1q415Hvz38jMRMgB72qGtqu-tiZZNY19nARaGD9Qu6IptuRQwqdNaexucvXbxWIDiHjdj9uV3ZsDnPfOtzXsjh_509ngStmaulsKNp-FsfsMj53GwYVyPzNxm7IVU1/w640-h282/ER0.jpeg" width="640" /></a></div><br />Since the end of 2014, as a result of the rapid drop in oil prices, there has been a decrease in the gross domestic product of our country, and the GDP of 2014, which was 75.2 billion dollars, has decreased in the following years to the level of 37.49 billion dollars in 2016. At the end of 2016, a 3.8% decrease in GDP was observed compared to last year. (see chart 1)<p></p><p>Chart 1</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgZLRynFhTwxeO0ajnqXujSUFCnngLv5g505b6m5eDLxMQnAL_E_ivUoHY1MlSGjfZAOYyFEarBxwxnhT3xYbqCi9PUc_MPe7dLrb7AlQjV4aEavhDQOAqPPBcfdytJLrtQis25SSh0rYG-35aR7yPFwp6nLEet-t1uVbvCdkuIJVfteNOzl8jvo0VkNxYv/s396/ER1.jpeg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="147" data-original-width="396" height="238" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgZLRynFhTwxeO0ajnqXujSUFCnngLv5g505b6m5eDLxMQnAL_E_ivUoHY1MlSGjfZAOYyFEarBxwxnhT3xYbqCi9PUc_MPe7dLrb7AlQjV4aEavhDQOAqPPBcfdytJLrtQis25SSh0rYG-35aR7yPFwp6nLEet-t1uVbvCdkuIJVfteNOzl8jvo0VkNxYv/w640-h238/ER1.jpeg" width="640" /></a></div><br /><p>According to the information provided by the Statistics Committee, 66% of the GDP was formed by the non-oil and gas sector, and 34% by the oil and gas sector. A 27.6% decline in the construction sector was noted as the biggest impact on the decline of GDP.</p><p>The analysis of GDP by sector structure shows that the growth rates of the oil and gas industry are weakening and the share of the oil sector in GDP is decreasing year by year. This is mainly due to two reasons. The main reason is the decrease in oil production from 2011 to the present. The second is related to the price movement of oil in world markets.</p><p>Due to the negative increase in GDP, the amount of GDP per capita also decreased. Thus, in 2014, the GDP indicator per person was $6122.9, in 2015 it was $6115.7, and in 2016 it was $3889.</p><p>Of course, the decrease in GDP did not leave the population's well-being and the labor market unaffected. Thus, the salary of $596.6 in 2014 was calculated as $296.3 in 2015, and $313.7 in 2016. Although there is an 8.7% increase in the total income of the population in terms of manat, the increase in this indicator in terms of foreign currency is also in a negative direction.</p><p>Based on the above-mentioned statistics, it is possible to calculate that the employed part of the population receives wages at the rate of 97% of the created value (GDP per capita) (and based on the statistics on the authoritative website tradingeconomics.com, this indicator is calculated at the rate of 85%). Analogously, when we compare neighboring countries Georgia and Turkey, we see that this indicator is 118% for Georgia and 127% for Turkey. (see table 1). This indicator shows that the salary threshold is low compared to the GDP created in our country. (see chart 2)</p><p>Chart 2</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjSa2_I2-sCKJXmi5x4t5MAfEzAisVXiz5TaGxdmJaKjbNckxphK1CVDWU2y9Kt4pHg7wZFBLqBzCkVK6c09fwTUielvVo4dKTM-oAWd6WEjjMpgmeMBAXZBtD7IIZ5Gn_baJGVEaZ5GBeuPummZxHXTDwXIVeQTTlhobSwxMHMKy_rmqHLTIwjqh6I9CSA/s1185/ER2.jpeg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="712" data-original-width="1185" height="384" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjSa2_I2-sCKJXmi5x4t5MAfEzAisVXiz5TaGxdmJaKjbNckxphK1CVDWU2y9Kt4pHg7wZFBLqBzCkVK6c09fwTUielvVo4dKTM-oAWd6WEjjMpgmeMBAXZBtD7IIZ5Gn_baJGVEaZ5GBeuPummZxHXTDwXIVeQTTlhobSwxMHMKy_rmqHLTIwjqh6I9CSA/w640-h384/ER2.jpeg" width="640" /></a></div><p>The main reason for this situation is the high level of employment of the population in Azerbaijan. So, according to statistics, 4.67 million (48%) of the 9.7 million population in our country are employed. 0.6 million (16%) of the 3.72 million population in Georgia, 27.06 million (34%) of the 79.81 million population in Turkey are considered employed. This means that Azerbaijan has a GDP per capita of $3,889 with a labor force of 48%, Georgia has a GDP per capita of $121 more than us with a labor force of 16%, and Turkey has a GDP per capita of $92.5 less than us with a labor force of 34%. produces with (see table 2).</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjX8bmJKIYcnXJ4wdzBldqaUVcSSSFfdjaM6QZbuACfNCh_w8MMkpCgBYEiVCntYwgw4TQbsm7XKVxlm7iRKWMDXdbQ3ewsajAmwjMAAXLI8tHKp95YHbtU92qtDin0MlkLJhp-0sJh-_L6PCgzEji3qKicSoS8ddbD0Zlo3SCqQ6_f2TTQQvPmzCqcJSzN/s964/ER3.jpeg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="166" data-original-width="964" height="110" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjX8bmJKIYcnXJ4wdzBldqaUVcSSSFfdjaM6QZbuACfNCh_w8MMkpCgBYEiVCntYwgw4TQbsm7XKVxlm7iRKWMDXdbQ3ewsajAmwjMAAXLI8tHKp95YHbtU92qtDin0MlkLJhp-0sJh-_L6PCgzEji3qKicSoS8ddbD0Zlo3SCqQ6_f2TTQQvPmzCqcJSzN/w640-h110/ER3.jpeg" width="640" /></a></div><p>When we divide GDP by the number of employed population, not by the total population, that is, when we calculate the value created by the working population, a different picture emerges. Thus, if the GDP per 1 employed person in Azerbaijan is $8,008, in Georgia this indicator is 3 times more than ours, that is, $23,283. This means that one worker working in Georgia creates about 3 times more value than one worker working in Azerbaijan. A similar indicator is $80,918 for Israel, that is, more than 10 times more than us, and $118,273 for the United States, that is, about 15 times more than us.</p><p>There can be two main reasons for this situation. The first is that labor force is used inefficiently in our country. That is, if any work can be performed with less labor force, more workers than necessary are involved in that work. At the same time, the low use of modern technologies in the production process of products and services increases the demand for labor force. Thus, although there is no increase in GDP, there is an increase in the number of employed people. This factor also reduces the GDP indicator created by the employed population.</p><p>The second is that labor is used in less productive and mostly low-skilled jobs, the products and services produced are of low value, and intelligence and technology are not applied in their production. If we look at the distribution of GDP in Azerbaijan by types of economic activity, we see that the largest share in GDP (29%) belongs to the mining industry. (see chart 3)</p><p>Chart 3</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZuzHdQAHC26hjCZhacSKnRoR_loSNgrE8szbzaujegvJOwUsvl-MgeEFi57ILFA0n8xLHEsg9U5UDFgBwPnsPjEy6l1aIGNaZQZDsE4CkMRW2j4CqhlTjJxI7Xq8L9FuyB0vnNWa3yh6evC9LyqsTHvgAjWPIrK9vjUrnlxJEZR_PcGCPqW4HwQmEk_n6/s1028/ER4.jpeg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="722" data-original-width="1028" height="450" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZuzHdQAHC26hjCZhacSKnRoR_loSNgrE8szbzaujegvJOwUsvl-MgeEFi57ILFA0n8xLHEsg9U5UDFgBwPnsPjEy6l1aIGNaZQZDsE4CkMRW2j4CqhlTjJxI7Xq8L9FuyB0vnNWa3yh6evC9LyqsTHvgAjWPIrK9vjUrnlxJEZR_PcGCPqW4HwQmEk_n6/w640-h450/ER4.jpeg" width="640" /></a></div><p><br /></p><p> As an example, it can be noted that if the income created by 1 worker in SOCAR is about $630,000, then the French company Total S.A., which operates in the same sector, is similar. the value created by its employee is 2.1 times higher than that of Socar, and in Apple Inc., an American technology company, this indicator is 3 times higher than that of Socar.</p><p><br /></p><p>In such a situation, the most important step that can be taken to increase the profitability of labor is the creation or development of more profitable economic areas in accordance with the economic, political, social and other conditions of the country. Also, it is felt that it is necessary to look at labor from an economic perspective rather than a social one at the state level, and to take concrete measures related to increasing the efficiency of labor.</p>Elvin Mahmudovhttp://www.blogger.com/profile/09842959295128234901noreply@blogger.com0tag:blogger.com,1999:blog-7433072833916709916.post-55753706774685905132023-08-22T00:21:00.002-07:002023-08-22T00:22:29.562-07:00AN OVERVIEW OF THE INTERNAL CONTROL SYSTEM, CONTROL ENVIRONMENT AND HUMAN RESOURCES MANAGEMENT FROM THE POINT OF VIEW OF INTERNAL CONTROL<p>Internal control is a management system consisting of financial and other control systems intended for effective and efficient implementation of activities, protection of assets and resources, correct and complete accounting, timely and reliable processing of financial data. Within the framework of the COSO model, which is the best accepted model of this system, internal control is designed to ensure the conformity of work and activities in the organization to the norms, the reliability of financial and management reports, the effectiveness of activities and the protection of assets.</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhtSBUTN4DFDgpAgMwd088E8bUIigUhS2csqvDGStk6a2MUdOUQTPPDyykTFNn4BjpPRcvGyiYXSaX5OIGX7YWHLUbGgQeIY49LK1ZrMplGM_1LlcMV1MFr2b4UNj1yUdgPEYvoHpL8O4U3MGP57mgj-wnUOFJTpNYyLn5LyZNEFeb7sFt9wRRpoBu9k83g/s1296/AB.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="652" data-original-width="1296" height="322" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhtSBUTN4DFDgpAgMwd088E8bUIigUhS2csqvDGStk6a2MUdOUQTPPDyykTFNn4BjpPRcvGyiYXSaX5OIGX7YWHLUbGgQeIY49LK1ZrMplGM_1LlcMV1MFr2b4UNj1yUdgPEYvoHpL8O4U3MGP57mgj-wnUOFJTpNYyLn5LyZNEFeb7sFt9wRRpoBu9k83g/w640-h322/AB.jpg" width="640" /></a></div><br /><p>According to the methodology, there are 5 main components of the internal control system, and the first of these components is the "CONTROL ENVIRONMENT". Other components are risk assessment, control activities, information and communication and monitoring.</p><p>According to the COSO methodology, the control environment creates the basis for other components of internal control by ensuring the formation of internal control consciousness of employees. The control environment is the main component of the internal control system.</p><p>A properly functioning control environment, where the goals of the organization are known, tasks and responsibilities are clearly defined, the organizational structure shows accountability and hierarchical relationships, the human resources system is formed based on objective rules, the management and personnel adopt ethical values, and the training and resources needed to increase the competence of the personnel includes a work environment in which management is provided and managers set an example for employees by following controls.</p><p>In this framework, the control environment mainly means the organizational culture, which includes factors such as the internal control awareness of the organization, values, the form and procedures of work execution, and the relations of employees with managers.</p><p>The main elements of the control environment are the following:</p><p>- Principles of personal and professional integrity</p><p>- Adoption of ethical values by management and staff</p><p>- Management support for internal control</p><p>- Organizational structure</p><p>- Professional competence and performance of personnel</p><p>- Human resources policies and procedures</p><p>- Management philosophy and work style</p><p>- Transfer of powers</p><p>Internal control is directly influenced by the historical and cultural characteristics of the organization. Each person in the organization must adopt and apply personal and professional integrity and ethical values. To ensure this, managers should implement performance appraisals that promote ethical behavior with an approach that supports internal control.</p><p>Management and staff must create and maintain a positive and supportive environment for the internal control system. The fact that management regularly monitors the internal control system, behaves in accordance with ethical rules, and sets an example for employees by observing control activities shows that they have mastered the internal control system. Evaluations carried out by managers should promote the effective and efficient implementation of activities in accordance with ethical rules. Performance evaluations should be carried out taking into account these issues.</p><p>If the internal control system is mastered by the management, the confidence of other employees in the operation of the system will increase and the foundations of a healthy control environment will be laid. If the management does not master the internal control system, the employees will be reluctant and the organization will not be able to achieve its goals. In this regard, management's support for the internal control system is very important.</p><p>In addition to the adoption of the internal control system by the management, it is also considered important that the organizational structure of the institution clearly shows the division of authority and responsibility. Along with authority and responsibilities, administrative levers and accountabilities must also be defined. The most effective tool used to ensure accountability is the reporting system. Therefore, the organizational structure is also required to show reporting relationships and hierarchical relationships.</p><p>It is of great importance for the quality of the control environment that employees know their duties and responsibilities and understand the contribution of their activities to organizational goals. It is necessary for employees to accept personal and professional integrity as a principle and adopt ethical values in terms of effective and efficient implementation of activities. Paying attention to the use of competent and qualified specialists in the implementation of the human resources system will create conditions for increasing the awareness of control.</p><p>For a well-functioning control environment, the organization's goals, organizational structure and tasks must be determined in advance, and personnel performance must be periodically evaluated.</p><p>Another factor that is considered important for the control environment is the issue of authority and transfer of authority in organizations. Thus, for good governance, the boundaries of authority should be clearly defined and communicated in writing. Delegation of authority should be carried out taking into account the importance and risk of authority.</p><p>As mentioned above, according to the methodology, 4 main standards for the control environment were defined in the internal control standards. According to the COSO methodology, the control environment standards are as follows:</p><p>STANDARD 1 : ETHICAL VALUES AND INTEGRITY</p><p>It should be ensured that the rules defining personnel behavior are known to the personnel</p><p>STANDARD 2: PURPOSE, ORGANIZATIONAL STRUCTURE AND DUTIES</p><p>The goals of the organizations, the statutes of the structures and the job instructions of the personnel should be determined in writing, communicated to the personnel, and the organizational structure appropriate to the institution should be formed.</p><p>STANDARD 3: STAFF COMPETENCE AND PERFORMANCE</p><p>Organizations should ensure the compatibility between the competence and duties of the personnel, and take concrete steps to evaluate and develop the performance.</p><p>STANDARD 4: DELEGATION OF AUTHORITY</p><p>The framework of authority and delegation of authority in organizations should be clearly defined and communicated in writing. Delegation of authority should be carried out taking into account the importance and risk of the delegated authority.</p><p>As the names of the aforementioned standards suggest, they affect a large part of the organization's human resource management system and define requirements. Organizations, in turn, should take into account the relevant requirements of the internal control system and ensure that the systems are integrated when forming their human resources systems.</p>Elvin Mahmudovhttp://www.blogger.com/profile/09842959295128234901noreply@blogger.com0tag:blogger.com,1999:blog-7433072833916709916.post-57973317384625137752023-08-04T05:23:00.011-07:002023-08-22T00:23:27.866-07:00BENEFITS OF AN EFFECTIVE COMPLIANCE AND ETHICS PROGRAM<div>Organizations today are under increasing pressure to protect their reputation and maintain compliance with laws and regulations. An effective compliance and ethics program can help organizations achieve these goals while also protecting their employees and customers</div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhGK8_CqySDDeWTTIVLbc_yJmnycLarpX-5iU5j8QYvodteVgoQelO3n4fvg5KAPJrDxEXsbCiINciBJP1gESh3x40Nn5YZCfCuXtto-0plJSjivuzIXFVyxCycC5yZKkMZghZOa6GL5qookamRu1DTI3PXPdglIIEIFEj-n3HY8RpVLL0eyZiQv1wutvL1/s683/compliance%20(2).jpeg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="359" data-original-width="683" height="336" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhGK8_CqySDDeWTTIVLbc_yJmnycLarpX-5iU5j8QYvodteVgoQelO3n4fvg5KAPJrDxEXsbCiINciBJP1gESh3x40Nn5YZCfCuXtto-0plJSjivuzIXFVyxCycC5yZKkMZghZOa6GL5qookamRu1DTI3PXPdglIIEIFEj-n3HY8RpVLL0eyZiQv1wutvL1/w640-h336/compliance%20(2).jpeg" width="640" /></a></div><br /><div>An effective compliance and ethics program helps an organization ensure adherence to applicable laws, regulations and standards. It also helps create an ethical culture among employees by establishing clear expectations of ethical behavior and providing training and support to ensure those expectations are met.</div><div><br /></div><div>A well designed compliance and ethics program will include a code of conduct, a system of reporting, and an effective monitoring and enforcement system. The code of conduct should clearly articulate the expected ethical standards for employees and should be regularly reviewed and updated to reflect changes in the organization. The reporting system should provide employees with an easy way to report violations or unethical behavior without fear of discrimination or retribution. The monitoring and enforcement system should have mechanisms in place to ensure that reported violations are investigated and addressed appropriately.</div><div><br /></div><div><div>An effective compliance program is an essential aspect of any organization's operations. It is a framework that helps companies adhere to legal and regulatory requirements while promoting ethical behavior. A compliance program can help prevent legal violations, improve business operations, and enhance the reputation and stakeholder confidence of an organization regardless of its size. It helps protect the company from potential risks and promote accountability while promoting ethical behaviour for everyone involved.</div><div><br /></div><div>Compliance programs establish clear regulations and responsibilities for the company and its employees, allowing them to better understand the legal and regulatory issues surrounding their day-to-day operations. These programs also encourage compliance by offering guidance on applicable laws and regulations and providing regular training and education to all employees. Moreover, they also help in the prevention of fraud and other unethical behaviours.</div><div><br /></div><div>Compliance programs also help the company to avoid reputation risks by ensuring that everyone within the organization is aware of and understands the company’s policy. Additionally, it also aids in ensuring that the company is up to date with all applicable laws and regulations.</div><div><br /></div><div>An effective compliance program also helps protect the company from costly mistakes or legal actions. Furthermore, it helps to increase the company’s efficiency as well as its performance and profitability.</div><div>Lastly, it also helps to build trust in the company’s reputation and foster a culture of integrity and transparency within the organization. In sum, an effective compliance program is essential for any business as it provides invaluable protection and safety to the company, its employees, and stakeholders alike.</div></div><div><br /></div><div>We can sum the benefits of an effective compliance and ethics program like:</div><div><br /></div><div>- Improved reputation and brand image: A well-designed compliance and ethics program sends a strong message to stakeholders that the organization is committed to ethical behavior and compliance with laws and regulations.</div><div><br /></div><div>- Reduced legal and financial risks: An effective compliance and ethics program helps to reduce the risk of legal and financial penalties by identifying and addressing potential areas of non-compliance.</div><div><br /></div><div>- Improved employee engagement: An effective compliance and ethics program creates a culture of trust and respect among employees, which can lead to higher levels of employee engagement and improved performance.</div><div><br /></div><div>- Improved customer satisfaction: An effective compliance and ethics program ensures that customers are treated ethically and fairly, which can lead to higher levels of customer satisfaction.</div><div><br /></div><div>An effective compliance and ethics program is essential for any organization that wants to protect its reputation, maintain compliance with laws and regulations, and ensure that its employees and customers are treated with respect. It is an important part of any organization’s risk management strategy and should be regularly reviewed and updated to ensure it is meeting the needs of the organization.</div>Elvin Mahmudovhttp://www.blogger.com/profile/09842959295128234901noreply@blogger.com0tag:blogger.com,1999:blog-7433072833916709916.post-82255621432366840492023-07-05T03:00:00.016-07:002023-08-21T06:10:39.064-07:00UNVEILING CORPORATE GOVERNANCE: A DESCRIPTIVE EXPLORATION<h1 style="font-size: 27px; line-height: 1.2; text-align: left;"><span style="font-size: medium; font-weight: 400;">Corporate governance is a crucial aspect of modern business that plays a significant role in ensuring the integrity, transparency, and accountability of organizations. It encompasses a set of principles, processes, and practices that guide the way corporations are directed and controlled. This short blog post aims to provide a descriptive exploration of corporate governance by examining its definition, historical background, key components, and mechanisms. By delving into these aspects, we can gain a deeper understanding of the importance and relevance of corporate governance in today's business landscape.</span></h1><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="634" data-original-width="1024" height="397" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhiRyObF1rMrbS7iAr5RScpVxa3u3N9FI6sRdcGwQh5vEztO_NJ6VdPeUK21a1HvKcsHr4oPXZ4igLvyEn5wZFIpfzq0ivZCI_Oj-DBNWk2iL0qfkwONrVCpg6Gf0YD_TrcDHZ7hNNHFnkpB0AG48cl-7MoqkDzFjKEIW1SqCOgr1hv2Z9eOpVTys5lZlmh/w640-h397/corporate%20governance.jpg" width="640" /></div><br /><p>An overview of corporate governance reveals its fundamental nature and its evolution over time. Corporate governance can be defined as the system of rules, practices, and processes by which a company is directed and controlled. It encompasses the relationships between the various stakeholders involved, including shareholders, management, and the board of directors. The concept of corporate governance has a rich historical background, with its roots dating back to the early 20th century. However, it gained significant attention and prominence in the wake of high-profile corporate scandals such as Enron and WorldCom in the early 2000s. These scandals highlighted the need for effective corporate governance mechanisms to prevent fraud, unethical behavior, and mismanagement. In response, regulatory bodies and organizations around the world have developed guidelines and frameworks to enhance corporate governance practices. Today, corporate governance is recognized as a vital aspect of business operations, ensuring the long-term sustainability and success of organizations.</p><p>The key components of corporate governance can be identified through the roles and responsibilities of the board of directors, shareholders, and executive management. The board of directors, as the primary governing body of a corporation, holds the responsibility of overseeing the company's strategic direction, decision-making, and risk management. They are accountable to shareholders and are expected to act in the best interests of the company. The composition of the board is crucial, as it should consist of individuals with diverse skills, expertise, and independence to ensure effective oversight and decision-making. Shareholders, on the other hand, play a vital role in corporate governance through their ownership rights, responsibilities, and influence. They have the power to elect or remove board members, approve major decisions, and hold management accountable. Lastly, executive management is responsible for the day-to-day operations of the company and is accountable for its performance. They are expected to uphold ethical standards, ensure transparency in financial reporting, and make decisions that align with the long-term interests of the company and its stakeholders.</p><p class="MsoNormal" style="line-height: normal; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><!--x-tinymce/html-->
</p><p>Corporate governance mechanisms and practices encompass both internal and external aspects. The regulatory framework and legal requirements for corporate governance vary across jurisdictions but generally aim to establish minimum standards and guidelines for companies to follow. Internal mechanisms, such as internal controls, risk management systems, and audit processes, are put in place to ensure effective management and control of the company's operations. These mechanisms help identify and mitigate risks, prevent fraud, and ensure compliance with laws and regulations. External mechanisms, on the other hand, involve engaging with stakeholders, conducting external audits, and fulfilling reporting requirements. Stakeholder engagement allows companies to consider the perspectives and interests of various stakeholders, including employees, customers, and the wider community.</p>Elvin Mahmudovhttp://www.blogger.com/profile/09842959295128234901noreply@blogger.com0tag:blogger.com,1999:blog-7433072833916709916.post-56789857814471687182019-09-17T12:12:00.007-07:002023-08-21T06:11:01.470-07:00DECISION MAKING PROCESS IN MANAGEMENT<blockquote class="tr_bq" style="text-align: center;">
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The most important task of management is decision-making. As it is known, organizations are faced with the need to make decisions to solve the various problems they face from the day of their formation. Decisions made by organizations to solve their problems are called management decisions. Effective organizations outperform their competitors in terms of decision-making in 3 ways:</div><div class="MsoNormal"><br /></div><div class="MsoNormal"><div class="MsoNormal">- they make correct and reasoned decisions;</div><div class="MsoNormal">- they make decisions faster;</div><div class="MsoNormal">- they implement the adopted decisions more quickly and successfully.</div><div class="MsoNormal"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguTTgL-Pg6e4BqoLIZZt2HoAL0MUov1TLH6-5wJrkXG7saWt5qxqO_2HbGQVTW7ZzaFwCbiLQhNRp_ehSziBDfD6izwgcI4X4TTvobFC4UH0lCPmqKnmv55KxcOrnyU0u4D0dCOVdgk5TGEegCVTHs_bphFBF5OXDBuW5k1Hu5_kgbHQ8CX11QiO3y4jvj/s1600/decision-making.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="Decision making" border="0" data-original-height="686" data-original-width="1600" height="274" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguTTgL-Pg6e4BqoLIZZt2HoAL0MUov1TLH6-5wJrkXG7saWt5qxqO_2HbGQVTW7ZzaFwCbiLQhNRp_ehSziBDfD6izwgcI4X4TTvobFC4UH0lCPmqKnmv55KxcOrnyU0u4D0dCOVdgk5TGEegCVTHs_bphFBF5OXDBuW5k1Hu5_kgbHQ8CX11QiO3y4jvj/w640-h274/decision-making.png" title="Decision making" width="640" /></a></div><br /><div class="MsoNormal">As can be seen, the decision-making process is considered very important in terms of the effectiveness and competitiveness of organizations and constitutes the core of the management process.</div></div><div class="MsoNormal"><div class="MsoNormal"><br /></div><div class="MsoNormal">The decision-making process in management is the selection of the best among the alternatives for the organization or individual individuals to achieve their goals within the scope of their duties and powers. The most important quality of any manager is his willingness to make important and difficult decisions and the competence to make those decisions. The manager's performance is related to the effectiveness of his decisions. The decision-making process gives the leader the right to make a decision freely by thoroughly analyzing and evaluating the situation. Since the leader makes the decision himself, he is also responsible for its implementation.</div><div class="MsoNormal"><br /></div><div class="MsoNormal">As mentioned, effective, consistent decision-making is of great importance in the management system. When the organizational decision-making process is weak, the results produced by the general management functions are also unsatisfactory. From this point of view, the management decisions should be of the same quality as the information. For this purpose, the following basic requirements are imposed on management decisions:</div><div class="MsoNormal"><br /></div><div class="MsoNormal"><div class="MsoNormal">- Having a purposeful tendency, direction</div><div class="MsoNormal">- Systematic, complex justification</div><div class="MsoNormal">- Hierarchical subordination</div><div class="MsoNormal">- Being specifically addressed</div><div class="MsoNormal">- Directiveness</div><div class="MsoNormal">- Provision of appropriate resources</div><div class="MsoNormal"><br /></div></div></div><div class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -0.25in;">
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<div class="MsoNormal"><div class="MsoNormal">That is, to put it in a short form, management should be given purposefully and should solve a specific problem. The decision should not be made intuitively and thoughtlessly, but should be fully justified. It is necessary to determine who will execute the given decisions in the organizational hierarchy, what resources are required to implement that decision, and justify whether those resources are available or not.</div><div class="MsoNormal"><br /></div><div class="MsoNormal">In practice, the following factors are used in the process of making management decisions:</div><div class="MsoNormal"><br /></div><div class="MsoNormal"><div class="MsoNormal">- management hierarchy;</div><div class="MsoNormal">- cross-functional purpose groups;</div><div class="MsoNormal">- formal plan, rules and methods;</div><div class="MsoNormal">- horizontal relations in management</div><div class="MsoNormal"><br /></div></div></div><div class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -0.25in;">
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<div class="MsoNormal"><div class="MsoNormal">The use of the principle of hierarchy in the decision-making process is carried out in order to coordinate management activities and further strengthen centralization in management. The main goal here is to prevent the interference of different level functions in management, to expect the ring principle in management, and to ensure that each level has a direct relationship with the level that is only one link below it.</div><div class="MsoNormal"><br /></div><div class="MsoNormal">In the practice of using cross-functional groups in decision-making, highly qualified specialists in the relevant field are supposed to group together and apply their knowledge and skills in making complex decisions in the relevant direction. Focus groups are mainly involved in making complex management decisions, such as creating new products and implementing innovations. Such groups are usually created on an ad hoc basis and are disbanded after the problem is resolved.</div><div class="MsoNormal"><br /></div><div class="MsoNormal">The effective use of formal plans, rules and methods in the decision-making process is of great importance in coordinating the activities of the employees of the administrative apparatus. It is necessary to implement a number of administrative measures for the process of development of management decisions. In order to comprehensively approach the solution of the existing problem, certain procedures for the development of management decision options should be defined. The use of plans in making management decisions is aimed at coordinating the activities of the organization as a whole. Plans are aimed at ensuring that the interests and goals of different levels of management serve a single criterion. Through plans, the manager can control and intervene in the activities of all departments of the organization and evaluate the results of the activities depending on their implementation.</div><div class="MsoNormal"><br /></div><div class="MsoNormal">In the decision-making process, the direct use of the existing horizontal relationships in the management apparatus enables managers to make decisions freely in a short time, without referring to the top management, and to further increase their responsibility for the implementation of the adopted decision.</div><div class="MsoNormal"><br /></div><div class="MsoNormal">The management decision-making process consists of 5 stages. If we want the decisions we make to be effective, each of these stages must be fully followed when making a decision:</div><div class="MsoNormal"><span style="text-indent: -0.25in;"><br /></span></div><div class="MsoNormal"><span style="text-indent: -0.25in;"><b>Collection, systematization and analysis of information.</b></span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">At this stage, possible statistical current and prospective information about the problem to be decided is collected, systematized and processed in a related manner. This includes information in the internal reporting system, current external information (target markets, marketing channels, competitors, communication audiences, macro-environmental factors), threats and opportunities related to the implementation of the decision. Based on this information, the conditions of the problem are revealed and their structures are determined.</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;"><br /></span></div><div class="MsoNormal"><span style="text-indent: -0.25in;"><b>The problem setting stage.</b></span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">Here, as a result of the analysis, taking into account all the opportunities of the organization and possible obstacles, the problem to be solved is determined in accordance with the goal facing the organization. Goals and tasks, conditions of their fulfillment, coordination and assessment of the sub-parts of the issue are resolved and the specific setting of the problem is agreed upon.</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;"><br /></span></div><div class="MsoNormal"><span style="text-indent: -0.25in;"><b>Development of alternative options.</b></span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">At this stage, the problem solving model, search, processing and selection stages, including the problem solving algorithm, are developed, and alternative options are calculated as a result of them. Such alternative options are also prepared on the basis of the expert evaluation method, and on the basis of mutual comparison of all options, appropriate options are selected according to the selected objective function.</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;"><br /></span></div><div class="MsoNormal"><span style="text-indent: -0.25in;"><b>Decision making stage.</b></span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">At this stage, a concrete decision is made. The decision can be made both for the global level and for individual local parts of the problem. The decision made is divided into sub-decisions (sub, minor) depending on the levels and sequence of solutions (according to the time factor). Dividing the overall decision into sub-decisions changes the amount of information and the proportions of controllable and uncontrollable factors. But the general scheme of decision-making remains unchanged. It is clear that the stages of the decision-making process, as seen from the diagram, have a direct and opposite relationship. For example, if it is not possible to develop an algorithm for solving the problem, the model itself needs to be revised; when a difficulty arises in the modeling itself, the setting of the problem itself is simplified, that is, a number of factors are abandoned, etc.</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;"><br /></span></div><div class="MsoNormal"><span style="text-indent: -0.25in;"><b>The stage of implementation of the adopted decisions.</b></span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">At this stage, the adopted decision is specified for each executor and delivered to him, the directives are developed and given to each executor for the purpose of implementing the decision, the control function is implemented in connection with the execution of the decision, the necessary changes are made depending on the specific conditions and the level of execution, and the execution of the decision. issues such as evaluation of progress are resolved. Management decisions are made both by scientific methods - economic analysis, multivariate calculations with the application of mathematical models, selection of the optimal option based on efficiency criteria, as well as the intuitive and expert valuation method, which saves time and money, but can lead to more uncertainty and errors. can be accepted with The decision should be made taking into account all the main influencing factors as much as possible.</span></div><div class="MsoNormal"><span style="text-indent: -24px;"><br /></span></div><div class="MsoNormal"><span style="text-indent: -24px;">In addition to the stages mentioned above, there are 3 key elements to an effective decision-making process. When making a decision, these elements should also be considered:</span></div><div class="MsoNormal"><span style="text-indent: -24px;"><br /></span></div><div class="MsoNormal"><span style="text-indent: -24px;"><b>- Quality of the decision-making process:</b> This indicator requires a careful and comprehensive analysis of the problem and finding the optimal solution by correctly comparing the options.</span></div><div class="MsoNormal"><span style="text-indent: -24px;"><br /></span></div><div class="MsoNormal"><span style="text-indent: -24px;"><b>- The ability to implement the decisions made: </b>This indicator requires the reduction of obstacles in the adoption of the decision by everyone (or the majority) and therefore its implementation.</span></div><div class="MsoNormal"><span style="text-indent: -24px;"><br /></span></div><div class="MsoNormal"><span style="text-indent: -24px;"><b>- Time for making decisions: </b>Decisions should be made in an optimal time. Neither too early nor too late.</span></div><div class="MsoNormal"><span style="text-indent: -24px;"><br /></span></div><div class="MsoNormal"><span style="text-indent: -24px;">Based on his extensive experience, professional manager Kevin Sharer states that effective decision-making begins with building the right team and listening to them. According to him, in order to make the right decision, it is necessary to attract the best employees who are related to that decision to the meeting room and listen to them fully, comprehensively and openly. In the second stage, the options related to solving the problem are defined, the pros and cons, risks and benefits of the options are discussed in detail. The team then builds consensus around the most optimal choice that everyone will support. Then the right decision is made.</span></div><div class="MsoNormal"><span style="text-indent: -24px;"><br /></span></div><div class="MsoNormal"><span style="text-indent: -24px;">In order to determine whether decisions are effective, it is necessary to look at whether the steps and elements of the decision-making process are correctly applied, rather than its results. That is, the most important thing here is to focus on the process. In fact, nothing gives us a guarantee that decisions will always be made correctly. Or it is impossible to guarantee that the given decision will produce the best result. However, if decision-making is approached from a process approach and managed according to its stages and elements, success is more likely to be achieved in the long run.</span></div><div class="MsoNormal"><span style="text-indent: -24px;"><br /></span></div><div class="MsoNormal"><span style="text-indent: -24px;">There are 2 main types of decision-making in management practice: individual and collective. Thus, the type of decision-making is determined by the nature of the problem to be solved. Collective decisions are used when solving complex complex problems due to the influence of the human factor. Individual decisions are usually made by a single leader, while collective decisions are made in groups. Examples of these groups include:</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;"><br /></span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">- Directorate;</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">- Collegium;</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">- Directors meeting;</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">- Expert groups</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;"><br /></span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">As we mentioned above, there are individual and collective types of decision-making. These types have their own pros and cons. So, the positive feature of collective decision-making is the following:</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;"><br /></span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">- In some cases, collective decision-making is more effective than individual decision-making. Because the main goal of collective decision-making is to find new ideas and ways of implementing decisions. In this regard, collective opinions are more important than individual opinions.</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;"><br /></span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">- The collective decision-making method allows to identify more possible solutions to decisions. As a result, the probability of finding an optimal solution to a management decision increases.</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;"><br /></span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">- As we know, various management decisions have one or another level of uncertainty. Conducting collective assessments on complex problems allows to obtain results closer to the truth.</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;"><br /></span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">- The unity of viewpoints and ideas determined as a result of decision-making acts as a positive motivation factor for the effective work of each employee as well as the team.</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;"><br /></span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">- Group members and employees support and obey the decision made collectively (even if they are dissatisfied with the decision).</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;"><br /></span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">Along with the positive aspects of collective decision-making, there are also negative aspects. These are the following:</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;"><br /></span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">- When points of view and ideas do not come close to each other, there is a deadlock in making decisions.</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;"><br /></span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">- Tension and conflict situations may arise due to the clash of different opinions during the collective decision-making process.</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;"><br /></span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">- Consensus method often plays a positive role in the resolution of conflicts arising during collective decision-making, creating calmness in the work of the organization. However, as a result of using this method, unsuccessful decisions can be made.</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;"><br /></span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">There are 3 main methods of collective decision-making:</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;"><br /></span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">- Consensus method</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">- Devil's advocate method</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">- Dialectical questioning method</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;"><br /></span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">The most used method in collective decision-making is the "consensus" method. In the consensus method, all team members express their comfortable opinions about an issue, everyone comfortably expresses their logical arguments, ideas, suggestions and preferences and contributes to the work of the team. Arguments supported by all (or most) members of the team are selected and form a decision.</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">This method is easy to use and apply. Because, unequivocally, everyone agrees on the same decision, and therefore everyone supports the implementation of this decision.</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">In the devil's advocate method, the decision-making group is divided into two equal subgroups. While one group develops proposals for solving the problem, another group plays the role of devil's advocate and criticizes and rigorously tests the proposal. Through a systematic and consistent exchange of ideas, the group forms the final proposal.</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">The "dialectical questioning" method is very similar to the "devil's advocate" method. The difference with this method is that it requires more debates, disagreements and divergent thinking.</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">In the "dialectical questioning" method, the group is divided into two subgroups. One group prepares proposals for solving the problem and presents it to another subgroup. The second sub-group prepares alternative or counter-hypotheses and proposals and shares them with the first sub-group. Both subgroups discuss alternatives and engage in heated debate with each other to determine the final decision. The final decision may incorporate elements from the proposals and approaches of both groups, or a new idea that neither group intended and that emerges during the discussion may determine the final decision.</span></div><div class="MsoNormal"><span style="text-indent: -0.25in;">The main differences between dialectical questioning and devil's advocate methods are shown in the table below:</span></div></div><div class="MsoNormal">
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<b style="mso-bidi-font-weight: normal;">THE DEVIL'S ADVOCATE<o:p></o:p></b></div>
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<td style="border-left: none; border: 1pt solid windowtext; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 177.95pt;" valign="top" width="237"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 0in; mso-margin-top-alt: auto; text-align: center;">
<b style="mso-bidi-font-weight: normal;">DIALECTIC QUESTIONING<o:p></o:p></b></div>
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<b style="mso-bidi-font-weight: normal;">A view to decision making<o:p></o:p></b></div>
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Competition<o:p></o:p></div>
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Joint problem solving / cooperation<o:p></o:p></div>
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<b style="mso-bidi-font-weight: normal;">The purpose of the discussion<o:p></o:p></b></div>
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Persuasion and lobbying<o:p></o:p></div>
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Hypothesis testing and evaluation<o:p></o:p></div>
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<b style="mso-bidi-font-weight: normal;">The role of participants<o:p></o:p></b></div>
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Group spokesperson<o:p></o:p></div>
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Critical thinkers<o:p></o:p></div>
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<b style="mso-bidi-font-weight: normal;">Behaviors<o:p></o:p></b></div>
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Trying to influence others<o:p></o:p></div>
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Presenting balanced arguments<o:p></o:p></div>
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Defend your position<o:p></o:p></div>
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Be open to alternative ideas<o:p></o:p></div>
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Hiding weaknesses <o:p></o:p></div>
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Accepting constructive criticism<o:p></o:p></div>
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<b style="mso-bidi-font-weight: normal;">A view to minorities<o:p></o:p></b></div>
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It is discouraged and ignored<o:p></o:p></div>
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Considered and valued<o:p></o:p></div>
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<b style="mso-bidi-font-weight: normal;">The result<o:p></o:p></b></div>
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Winners and losers<o:p></o:p></div>
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Collective ownership of decisions<o:p></o:p></div>
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<div class="MsoNormal"><div class="MsoNormal">Taking into account the above, it can be concluded that in order to increase the effectiveness of the decision-making process, it is necessary to regulate 3 main issues (3C):</div><div class="MsoNormal"><br /></div><div class="MsoNormal">- Conflict (Conflict)</div><div class="MsoNormal">- Consideration</div><div class="MsoNormal">- Conclude (Closure)</div><div class="MsoNormal"><br /></div><div class="MsoNormal">According to Professor David Garvin of Harvard Business School, in order to increase the effectiveness of the decision-making process, it is necessary to balance the participation and attitudes of group members in order to attract different opinions (conflict), draw attention to all opinions and views in the group (take into account), and voluntarily complete the discussion.</div><div class="MsoNormal"><br /></div><div class="MsoNormal">In general, management decisions, their content and method largely depend on the work style, intellectual level, personal motives of the manager, as well as the nature of the problem to be solved. In short, management decisions consist of combining creative and critical thoughts and ideas and executing them within a certain discipline.</div><div class="MsoNormal"><br /></div><div class="MsoNormal">When making a decision, it is very important to determine the nature of the issue and choose the right decision-making method. History is replete with failure stories of leaders who failed to identify the right decision-making method, or success stories of leaders who made the right decisions.</div><div class="MsoNormal"><br /></div><div class="MsoNormal">I would like to complete the article with the aphorism of Cyrus the Great, the Achaemenid king who lived in the 6th century BC: "Diversity in counsel, unity in obedience to orders."</div></div>
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<br />Elvin Mahmudovhttp://www.blogger.com/profile/09842959295128234901noreply@blogger.com0tag:blogger.com,1999:blog-7433072833916709916.post-64978250090698132662015-03-26T08:12:00.014-07:002023-08-23T02:56:43.983-07:00THE END OF THE OIL ERAAlthough the sharp drop in oil prices seems to be a big problem for the country's economy, it is actually a great advantage because it gives us great signals to prepare for the future.<div>The end of 2014 and the beginning of 2015 were marked by failures for oil exporting countries, including Azerbaijan. So, while the price of oil exceeded $110 in June 2014, it lost enough value and approached $40 at the end of the year. Currently, the price of oil varies between $50-60.<br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhkCQwDgYFwXM7hH3kICjAHnAqndpS7xt7LNv9G5UfjfZPstF5LaelizX8b6YTZ0q5hOwN6XETtTVgDjmWbAybEMqnnhxfzpo2Ie2RfPLrrKnwzjSgfXV9tyjWKydcy9z2Iv9aSZrOL7wxOAZm90D9J69a1EmaTH5j8coq-VFDXQTvJTTPXpUi1uRIICy67/s2560/oil%20era.webp"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhkCQwDgYFwXM7hH3kICjAHnAqndpS7xt7LNv9G5UfjfZPstF5LaelizX8b6YTZ0q5hOwN6XETtTVgDjmWbAybEMqnnhxfzpo2Ie2RfPLrrKnwzjSgfXV9tyjWKydcy9z2Iv9aSZrOL7wxOAZm90D9J69a1EmaTH5j8coq-VFDXQTvJTTPXpUi1uRIICy67/w640-h360/oil%20era.webp" /></a><br />There are a number of conspiracy theories about the drop in oil prices. According to some, the main reason for the drop in oil prices is the desire of the United States to punish Russia. According to some, the kingdom of Saudi Arabia, a major oil exporter, is deliberately lowering the price of oil to drive US shale oil out of the market.<br />According to other theories, the increase in the use of alternative energy and shale oil indirectly had a negative impact on oil consumption and oil prices.<br />Against the backdrop of a sharp drop in oil prices, the fact that the Saudi kingdom and OPEC do not reduce production increases the belief in conspiracy theories. Whether the price of oil reaches $110 or drops to $50 can be based on conspiracy theories.<br />Oil is currently still one of the dominant commodities defining the world economy. It is no coincidence that many researchers call this period the "Era of Oil" in their scientific articles. It is common for conspiracy theories to subject such a strategic product to speculation.<br />At first glance, it is a great chance that our country exports oil, which is such a strategic product. However, when the country's economy is dependent on oil, speculations on oil products have a deep impact on the country's economy and can create imbalances. As we are currently going through this painful process against the background of the decrease in budget revenues and the depreciation of the manat.<br />On the other hand, there is also a theory that oil brings misery and laziness to most countries. From an economic point of view, the non-oil sector is developing poorly, the efficiency of the economy is decreasing, and the country is gradually becoming dependent on oil. Politically, it becomes the subject of struggles and conflicts between the world's great powers and becomes one of the most injured parties in this process.<br />At the same time, thanks to our rich oil and gas resources, we were able to attract a large amount of currency to the country, but our economic dynamics in the non-oil sector could not develop sufficiently. It is no coincidence that oil and gas products accounted for 95% of the country's exports in 2014.<br />Taking advantage of the advantages of the oil era, our state was able to collect more than 35 billion dollars for the oil fund. But these advantages and the oil era are not eternal. As everything has an end, the oil era also has an end, and the country's leadership, as well as enterprises and organizations, as well as individuals, should prepare themselves for this end and the beginning of the next era.<br />There are many speculations about when the oil era will end. According to my personal opinion, we are gradually approaching the end of the oil era. I would like to inform my readers in advance that the end of the oil era does not mean the end of oil consumption. The end of the oil era means that oil will lose its dominant power as a commodity and be replaced by other commodities. Oil will be used as fuel in engines, plants and factories for a long time. Also, I think that we have not yet reached the end of the oil era, we still have 4-5 years, at best up to 10 years ahead.<br />Guy Bechon claims that with the beginning of 2015, the world has entered a new era. The era of Arab oil is over, the era of global innovation and technology, information revolution, intelligence has begun. It is unlikely that the income will be increased by a large amount due to raw materials.<br />The statements made by the president of the country at the meeting on January 27, as well as his statement that we will not be able to increase our foreign currency reserves as before, are a manifestation of the lack of confidence that the price of oil will rise in the future.<br />As you know, in 2014, Azerbaijan was able to maintain the exchange rate of the manat despite the sharp fall in the price of oil due to its foreign exchange reserves. However, despite the steps taken for the PR of the manat, devaluation was already started in February 2015 due to lack of confidence in oil prices. In my opinion, the loss of value of the manat will continue to increase. We faced a 34% loss in value in February. Although we will see occasional fluctuations in the value of oil and manat next year, I think this ratio will increase even more. Although it is difficult to predict what the exchange rate of the manat will be at the end of the year, it can be said for sure that our income will decrease significantly.<br />Different researchers have different opinions about the fate of oil prices. Some researchers say that the real price of oil is between $70-80 and will be offered at the limit of $60. Some are writing that oil will drop to $10. Although opinions differ, everyone agrees that the dynamics of oil prices will not be encouraging. As Dennis Gartman said, "what is important is not what the actual price of oil will be, but whether the price of oil will fall."<br />This situation will make a positive contribution to the economies of the main oil-consuming countries, and will cause serious problems for the oil-exporting countries whose economy is dependent on oil. We can say that the crisis is at the door, especially for countries like Azerbaijan that have not developed the non-oil sector and do not manage their resources effectively.<br />But what to do in this case?<br />From a macro-economic point of view, the main burden in this matter is, of course, on the state institutions. The competitive environment in our economy should be strengthened, the development of entrepreneurship should be intensified, real economic areas in the non-oil sector that create value should be developed, especially export-oriented areas should be encouraged, intellectual capital should be strengthened, in addition, the state budget, state projects and investments should be more strictly controlled, and the president of the country also noted wastage should be prevented as he did. In simple words, the foreign currency inflow to the country should be increased by developing the non-oil sector, and the foreign exchange expenditure from the country should be strictly controlled and the ineffective expenditure of foreign currency should be reduced.<br />Enterprises and organizations in the microeconomic field should increase their management efficiency, adopt and apply innovative management approaches that ensure competitive, sustainable development, and increase total quality.<br />Individuals should develop their personal effectiveness and professionalism. I think those who will benefit the most from the crisis situation will be ambitious professionals who know their fields well. So, in the conditions of a weak competitive environment, if the management of the company gives more place to the principles of loyalty, closeness, familiarity in personnel selection, then the principle of performance will be given place in order for the company to stand up in the competitive environment, and the employees who add value and profit to the company will be able to come to the fore.<br />By the same token, if more protocol competencies, language skills and standard qualifications were required from managers in a less competitive environment, the actual performance of the employee in a competitive environment would be taken into account.<br />I think that the sharp drop in the price of oil is not based on economic grounds, but rather on political grounds, and this situation will be restored in a certain sense, even if it is not at the previous level. However, I am of the opinion that the current situation is actually a chance for us and gives important signals for us to prepare for the end of the oil era. At the same time, although the crisis situation that may arise due to the decrease in the price of oil may seem like a serious problem for our country and our economy at first glance, it is possible to turn this problem into an advantage through proper anti-crisis policy, increasing the efficiency of the country's economy, and developing the real economy and competitive environment. it is possible for us to successfully move to the next economic stage.<br /></div>Elvin Mahmudovhttp://www.blogger.com/profile/09842959295128234901noreply@blogger.com0tag:blogger.com,1999:blog-7433072833916709916.post-28618181752473176682015-02-16T02:31:00.004-08:002023-08-21T06:11:24.300-07:00APPLICATION OF McCLELLAND'S THEORY TO BUSINESS MEETINGS<blockquote class="tr_bq"><span style="color: grey;"><i>Practicing once is better than reading a hundred times.</i></span></blockquote>
<div class="MsoNormal"><div class="MsoNormal">Recently, I was having an interesting conversation with a young, but very potential and promising HR friend of mine. During the conversation, my young friend told an incident. I thought this event would be useful and wanted to share it with you.</div><div class="MsoNormal"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi-Gk8amwSKupdmfKJi5gBOJ0ixM6q10Y9If2uxWh28-miZScDhBmT-7eGlBkChs__TPSRBhBX3BrJd1fDfm1faeoC7rzglp8D2vnoTmAruxuqCerDshCs2eHrxrVuP2jTunGLPm_rRT4Mzl5mU60honrjtWNLPE5QryiImXKceY6-isyKdl0odVs247Y3_/s800/david-mcclelland.jpg" style="margin-left: 1em; margin-right: 1em;"><img alt="McClelland" border="0" data-original-height="401" data-original-width="800" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi-Gk8amwSKupdmfKJi5gBOJ0ixM6q10Y9If2uxWh28-miZScDhBmT-7eGlBkChs__TPSRBhBX3BrJd1fDfm1faeoC7rzglp8D2vnoTmAruxuqCerDshCs2eHrxrVuP2jTunGLPm_rRT4Mzl5mU60honrjtWNLPE5QryiImXKceY6-isyKdl0odVs247Y3_/w640-h320/david-mcclelland.jpg" title="McClelland" width="640" /></a></div><br /><div class="MsoNormal"><br /></div><div class="MsoNormal">According to my young friend, there is a vacancy in the company where he works as HR. He also applies to his former university to fill the vacancy and asks the university to send some potential candidates who have recently graduated. The university, in turn, sends several potential graduates it deems suitable to an interview with our friend. During the interview process, young and inexperienced candidates try to show inappropriate sincerity, they prefer to talk about their shared values and mutual acquaintances, which they can have with our HR friend, rather than their personal professional qualities. This approach annoys our HR friend and decides not to hire candidates referred from the university.</div><div class="MsoNormal">Hearing this incident reminded me of some of my earlier memories and McClelland's theory, and I smiled involuntarily.</div><div class="MsoNormal">It was somewhere 5 years ago. I was a representative of a Turkish consulting company in Azerbaijan. I made an appointment with one of the big companies operating in Azerbaijan to present our services. Since the meeting was considered high-level, a high-level representative of the company in Turkey also participated in the meeting. The person we were going to meet was one of the decision makers of that company. He studied in Turkey. The meeting was mainly between him and our Turkish representative. They mostly talked about "unrelated" topics such as the general situation in Turkey, the university our interlocutor studied at, and the football club he was a supporter of. Very little of the conversation was about our services. Finally, general information about our services was given, the catalog was presented, we said goodbye and left. For me, this meeting was not a successful one. Because we could not provide our services sufficiently. I also experienced a little disappointment because I knew my Turkish colleague as a very experienced professional.</div><div class="MsoNormal">I expressed my thoughts and comments about this to my Turkish colleague. In his answer, he confidently said that the meeting was successful and added that people are divided into 3 types:</div><div class="MsoNormal">- People with a need for achievement</div><div class="MsoNormal">- People in need of empowerment</div><div class="MsoNormal">- People who need affiliation</div><div class="MsoNormal">Factors that motivate each person are different according to their worldview, culture, social norms, and experiences. What drives them is their need for the 3 factors listed above. A person may need all three factors. But one of the needs becomes more dominant for that person.</div><div class="MsoNormal">People with a need for achievement strive to perform better than others, to take on and achieve difficult tasks and goals, to be different and superior. It is necessary to make these people feel successful. If the person we are meeting falls into this category, we need to clearly explain to him how our services will affect his success.</div><div class="MsoNormal">People with a need to show power try to show power, control others, and impose their opinion on them. Their main motivation is to be counted by people, to be respected and to have status. They always try to be the winning side in arguments and discussions. It is necessary to give these people a place in management and make them feel that they are strong. If the person we are meeting belongs to this category, we should emphasize our deep respect and honor to him in the meeting, use words like "you know better, sir", "natural sir".</div><div class="MsoNormal">People with a need for belonging prefer to socialize, make friends, be united, work together, and belong to a group rather than compete. Their main motivation is to be loved and liked by the group they belong to. At the beginning of the conversation, I determined that the person we met belongs to this category. Therefore, I conducted the conversation with him in a more private way.</div><div class="MsoNormal">After saying these things, I once again confirmed that my Turkish colleague is really a "wolf" negotiator, and later I learned that he was talking about McClelland's Theory of Needs, which is one of the motivational theories memorized at the university and found its place in most HR books. I also realized that it is better to practice once than read a hundred times.</div><div class="MsoNormal">Being a chameleon in a relationship is often not considered a good thing. In everyday communication, a person should be natural, as Mevlana said, he should either appear as he is or be as he appears. But I would at least advise people reading the article not to open all their cards in serious meetings without first analyzing people.</div><div class="MsoNormal">As for our young HR friend, I think he is a person who needs serious achievement. From this point of view, the approach that motivates people in need of affiliation has been able to demotivate them on the contrary.</div></div>Elvin Mahmudovhttp://www.blogger.com/profile/09842959295128234901noreply@blogger.com0tag:blogger.com,1999:blog-7433072833916709916.post-60733600688263780092013-07-23T05:12:00.003-07:002023-08-21T06:11:31.658-07:00ENGINEER APPROACH, CORPORATE MEMORY AND CPB<br />
<blockquote class="tr_bq"><span style="font-size: 13.3333px;"><i>A company that learns faster than its competitors can take a step ahead of the competition.</i></span></blockquote>
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<div class="MsoNormal" style="text-align: justify;"><div class="MsoNormal">In my article "Mastery System", I shared my thoughts about what this system is and what risks it has for the company. In this article, I will try to express my opinion on what steps should be taken to prevent such a situation in the management system.</div><div class="MsoNormal">The reason for the existence of the mastery system is that the management system is not fully regulated. The lack of regulation of the management system means the absence or insufficiency of regulatory documents regulating the activities of the company. In unregulated systems, due to the fact that the problems that will arise related to the system op<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjlbGHfu2UQu3zb0kVVsG89VG-HudwR1KeArv3Kx_AIAr86O5NjOW53GHcsfmS533zJnojeuE6tjaHGtbVd750pzuRGh2_aHloaPcJaaseij1AhyvJfUja5Im3oCgl3NEPxHobU_p3GHADzk80py4fXJLF9n68R3LSMfYOavOvt0_VP-gqtfWQQEhFxY5Mc/s1000/cpb.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="563" data-original-width="1000" height="360" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjlbGHfu2UQu3zb0kVVsG89VG-HudwR1KeArv3Kx_AIAr86O5NjOW53GHcsfmS533zJnojeuE6tjaHGtbVd750pzuRGh2_aHloaPcJaaseij1AhyvJfUja5Im3oCgl3NEPxHobU_p3GHADzk80py4fXJLF9n68R3LSMfYOavOvt0_VP-gqtfWQQEhFxY5Mc/w640-h360/cpb.jpg" width="640" /></a></div><br />eration are not determined in advance, uncertainties and stops can occur in the process flow. In addition, one of the most affected systems within the company's overall management system is the company's human resources system. So, as I mentioned in the previous article, the mastery system leads to an incompetent workforce.</div><div class="MsoNormal"><br /></div><div class="MsoNormal">What should be done?</div><div class="MsoNormal"><br /></div><div class="MsoNormal">Companies operating in such conditions and feeling the weight and complications of the system on themselves should without wasting time switch to the engineering system, which is an alternative to the mastery system, or in other words, to the quality management system.</div><div class="MsoNormal"><br /></div><div class="MsoNormal">How?</div><div class="MsoNormal">In accordance with the company's strategy, it should be started from the modeling of the company's business processes (we assume that the company's strategy exists).</div><div class="MsoNormal">After developing the business process model, it is necessary to regulate these processes. That is, the procedure regulating the process, rules, instructions, and forms regulating the flow of information should be prepared. It is necessary to pay attention to the compliance of the prepared documents with the requirements of the legislation related to the subject, scientific research, the experiences of other large companies, the standards and rules of use of the used machine and equipment.</div><div class="MsoNormal">According to these regulations, process flow charts and technological routes should be drawn.</div><div class="MsoNormal">It is necessary to ensure that each employee learns the regulations that apply to him. Therefore, a regulatory matrix for positions should be prepared, and knowledge of regulations should be included in the company's competency matrix as "required technical knowledge".</div><div class="MsoNormal">Formation of corporate memory and improvement of employees' competencies of the corporate learning system. I would like to write this article under a new title, since it is one of the main topics of today's article.</div><div class="MsoNormal"><br /></div><div class="MsoNormal"><br /></div><div class="MsoNormal">CORPORATE MEMORY</div><div class="MsoNormal"><br /></div><div class="MsoNormal">Corporate memory, in the broadest sense, is a collection of information formed by registering activities and transactions in the company. Corporate memory can be divided into 2 stages according to the level of development of management systems of companies:</div><div class="MsoNormal"><br /></div><div class="MsoNormal"><i>Management Accounting</i></div><div class="MsoNormal"><br /></div><div class="MsoNormal">Management accounting includes the process of preparing the information needed by the manager for the planning and control of production and commercial activities. Management accounting links the management process with the accounting process.</div><div class="MsoNormal">Management accounting develops information bases for making various management decisions (operational, tactical and strategic) based on the accounting of operations. It fully provides business managers with the necessary information for making operational and tactical decisions. In order to make a strategic decision, it is necessary to use the data obtained as a result of special research along with the accounting data.</div><div class="MsoNormal">Management accounting is often thought of by people as accounting. However, according to the process management approach, the concept of management accounting is a broad concept. Process regulations and accounting, corporate reporting and document circulation accounting also form a very important basis for decisions to be made.</div><div class="MsoNormal">A strong memory of past activities is not enough to make decisions. Being able to quickly access in-memory data, link data, and receive any type of report is at least as important as memory. In humans, the brain is considered a large memory store. However, when there are problems in the nervous systems that collect and process information from the brain, people cannot remember the past despite the information being stored in the brain. Or they experience short-term memory loss and memory impairment. In this regard, I can say that this system should be supported by a good software so that companies can have effective management accounting and form strong corporate memory.</div></div>
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<div class="MsoNormal" style="text-align: justify;"><div class="MsoNormal"><i>Corporate Learning</i></div><div class="MsoNormal"><br /></div><div class="MsoNormal">The implementation of the concept of corporate learning with effective learning methods for the development of human capital that adds value to the company and its work, at the same time directly affects the corporate culture and company performance, business results, and leads to sustainable development and competitive advantage for companies. A company that learns faster than its competitors can be one step ahead of the competition. The first of the main topics I want to touch on in this article within the corporate learning system is the base of business processes, regulations and the system of learning these regulations. Competence in regulations is extremely important for an engineering system. If we approach the issue with process logic, since the company consists of business processes, we can see that the improper functioning of these processes, failure to ensure the correct flow of information and activities according to the work flow diagrams, will lead to the incompleteness of the company's activities and failure to achieve the set goals. Of course, this problem also arises from the fact that the employees who perform those processes do not have the required competence for the processes and lack of knowledge about how the process works and how to solve the problems that will arise. A company-wide database of all regulations and a learning system designed to teach technical knowledge of these regulations will largely eliminate problems related to employee incompetence. But the study of this technical knowledge is not enough on its own, and its support in other sub-systems within the Human Resources System of the company is very important.</div><div class="MsoNormal">Another topic related to the corporate learning system is the data collection, storage and optimization system that we as the G5 group call the "Corporate Precedents Base" (hereafter CPB). The concept of CPB frees the company from the dependence of individual specialists, increases the speed of learning by sharing the successful experience of one with all employees, and stimulates the development of the company by increasing the power of innovation and creativity.</div><div class="MsoNormal">CPB is the registration in a database of successful solutions to problems that arise in any process and the solution of which is not predetermined. The information in this database also acts as corrective and preventive suggestions and leads to the development of regulations on the relevant process.</div><div class="MsoNormal">In order for CPB to work effectively, it is first necessary to develop the corporate culture of the company, create a learning culture, and prepare a motivational ground for people to share their experiences.</div></div>
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Elvin Mahmudovhttp://www.blogger.com/profile/09842959295128234901noreply@blogger.com0tag:blogger.com,1999:blog-7433072833916709916.post-62794778072859870452013-07-18T02:23:00.002-07:002023-08-21T06:11:39.536-07:00MASTERY APPROACH TO MANAGEMENT<br />
<blockquote class="tr_bq" style="text-align: justify;"><span style="color: #999999;"><i>The mastery approach is the corporate incompetence created against the background of the inadequacy of the regulatory framework regulating activities in the enterprise, and in this environment of incompetence, employees perform work not according to any regulatory documents and instructions, but according to their personal practices or the instructions of other relatively more experienced employees.</i></span></blockquote>
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<div class="MsoNormal" style="text-align: justify; text-indent: 0.5in;"><div class="MsoNormal" style="text-indent: 0.5in;">One of the biggest challenges facing companies in terms of human resources is a low-skilled workforce that does not have a deep understanding of their work. In particular, this problem manifests itself more prominently in production enterprises where there are complex technical processes where technical knowledge is more required.</div><div class="MsoNormal" style="text-indent: 0.5in;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjCoq66f2IaNNOl_MtYoQ1-4-O8w5o143stDeomgM_-k7CelO_duckI8J7MrATcJsw7dW66cxPWThJv1rzKXUjfFoZWtFrQiyKSbFJi7q5wpsfi2xpfeq97nLL1xrd4bDzC7MGfkTOO8qNPi7RdHuuldvgM67AbY9aaCv5234RLIttz0NukV78qNtAdDH40/s770/master.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em; text-align: center; text-indent: 0px;"><img border="0" data-original-height="486" data-original-width="770" height="404" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjCoq66f2IaNNOl_MtYoQ1-4-O8w5o143stDeomgM_-k7CelO_duckI8J7MrATcJsw7dW66cxPWThJv1rzKXUjfFoZWtFrQiyKSbFJi7q5wpsfi2xpfeq97nLL1xrd4bDzC7MGfkTOO8qNPi7RdHuuldvgM67AbY9aaCv5234RLIttz0NukV78qNtAdDH40/w640-h404/master.jpg" width="640" /></a></div><div class="MsoNormal" style="text-indent: 0.5in;">As we all know, the level of competence of the company's human resources affects the effective operation of the company's business processes, the company's strategic goals, and financial indicators. The problem of incompetent workforce brings with it problems such as inefficiency and low performance to companies.</div><div class="MsoNormal" style="text-indent: 0.5in;">All of these financial and performance ramifications aside, this time I'm going to talk about an often overlooked, under-represented topic – the mastery approach caused by corporate incompetence.</div><div class="MsoNormal" style="text-indent: 0.5in;"><br /></div><div class="MsoNormal" style="text-indent: 0.5in;"><i>What is this mastery </i>approach <i>?</i></div><div class="MsoNormal" style="text-indent: 0.5in;"><br /></div><div class="MsoNormal" style="text-indent: 0.5in;">The mastery approach is the corporate incompetence created against the background of the inadequacy of the regulatory framework regulating activities in the enterprise, and in this environment of incompetence, employees perform work not according to any regulatory documents and instructions, but according to their personal practices or the instructions of other relatively more experienced employees.</div><div class="MsoNormal" style="text-indent: 0.5in;">Inadequacy of the normative base naturally produces masters who solve problems related to work on different processors or structural units based on their personal experience. These masters are selected according to their structure and guide other less experienced workers in the status of "apprentices". Due to the lack of nomatic base, corporate learning system and corporate memory, mastery is mainly gained through experience and seniority.</div><div class="MsoNormal" style="text-indent: 0.5in;"><br /></div><div class="MsoNormal" style="text-indent: 0.5in;"><i>Mastery </i>approach <i>carries many risks for the company.</i></div><div class="MsoNormal" style="text-indent: 0.5in;"><i><br /></i></div><div class="MsoNormal" style="text-indent: 0.5in;">Ungrounded job knowledge: How well-grounded the job knowledge of the foremen guiding others in a structural unit is always under question. Because this knowledge is not gained on the basis of specific scientific theories, or this knowledge is not gained by looking at all the processes of the company from above and seeing the interrelationship of the processes. For this reason, there is a possibility and risk of errors in this knowledge.</div><div class="MsoNormal" style="text-indent: 0.5in;">Blackmail of the masters: In the mastery approach, the masters have a significant role in the execution of the processes and in this way the processes and hence the company become dependent on them. The resulting dependence can lead to the masters blackmailing the company, demanding higher wages, more social benefits and benefits.</div><div class="MsoNormal" style="text-indent: 0.5in;">Non-sharing of information: Masters do not want to lose the advantage and power they have gained through experience and knowledge by sharing this knowledge. In this regard, the maturation period of the students under the supervision of the masters often takes a very long time. Sometimes a disciple's full apprenticeship may even last until the master's retirement or near death.</div><div class="MsoNormal" style="text-indent: 0.5in;">Loss of information: When a master leaves the company, he takes with him the knowledge and experience he has acquired over a long period of time. Again, it takes many years for the company to recover from this data loss.</div><div class="MsoNormal" style="text-indent: 0.5in;">Fear of work: Work is often seen by apprentices as an abstract, messy, complex set of activities because the frameworks and solutions to the problems encountered in the mastery approach are not defined in advance. And the masters who keep the knowledge required by the work as their monopoly are like heroes.</div><div class="MsoNormal" style="text-indent: 0.5in;">I would like to share with you a funny story that a friend of mine told me related to the topic. But I will not be able to write all the parts of the story in this article.</div><div class="MsoNormal" style="text-indent: 0.5in;">He becomes a confectioner in Sheki. He used to cook tel halwa very well. Apart from that man, there was no one in that region who could make tel halva. No matter how hard other confectioners tried, no matter how many tests they did, they could not make the composition of the halva. The man does not share his secret about the composition of halva with anyone until the end of his life. No matter how hard his students try, they cannot learn this secret. So, the man directly performs the last process of halva himself and did not entrust that process to anyone. This man has a disciple in his old age. This guy can't get anything no matter how many men he chases. One day the man falls ill and falls on his deathbed. He called his student and said: "Son, I have hidden my secret from everyone until today. But in these last days I will share my secret with you. I used to keep lemon salt in my hand while cooking halva, you didn't see it. At the end, when mixing the halva, I added this salt to the halva. This is my secret. Don't tell anyone this secret of mine. Now go and fight the case."</div><div class="MsoNormal" style="text-indent: 0.5in;">The man says this and after a while he commits his life. The boy also spreads the secret he learned to all his friends. After that, everyone starts cooking from that halva.</div><div class="MsoNormal" style="text-indent: 0.5in;">As you can see, in reality, the work is not so bad. If only other confectioners knew the composition and preparation rules of halva, they could easily prepare halva.</div></div>
<div class="MsoNormal" style="text-align: justify; text-indent: 0.5in;"><div class="MsoNormal" style="text-indent: 0.5in;">The mastery approach is not just a system that connects those whose job title is mastery. The mastery approach is not only framed by production processes. There can be a mastery approach in the structure of Human Resources, in finance, and in marketing. It is enough to have "fertile" conditions for the development of masters.</div><div class="MsoNormal" style="text-indent: 0.5in;">In order not to make it too long, I'll end the post here for now. In my next article, I will try to continue the topic by covering topics such as how to fight the mastery approach, engineering system, corporate memory.</div></div><br />Elvin Mahmudovhttp://www.blogger.com/profile/09842959295128234901noreply@blogger.com0tag:blogger.com,1999:blog-7433072833916709916.post-62671353292270528432013-07-10T03:51:00.020-07:002023-08-21T06:11:46.332-07:00WHY IS WORK EXPERIENCE IMPORTANT?<div style="text-align: left;"><br /></div><i><div style="text-align: center;"><i>all qualification requirements are actually intended to ensure the competency requirements and are important if they meet these competencies.</i></div><div style="text-align: center;"><i><br /></i></div></i><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEit0V5B1tTGo2OZWo5GhEQqJbiVi16bK0NUSK5hcFMx5nvLTFeJaqcguIFArLAEJ0q7BDCqbzAGpqTIepyd2lKSQNFscLWoDV4dIZKNqjjarh6Tc6m5kKPluTcnUfASBQujtFMzdcJC1rR3aZCqmq1P8tTMaW71JHoieoTOhEOtz4uHVVLYVKKqhR-Kq9Eh/s896/fisherman.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="500" data-original-width="896" height="358" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEit0V5B1tTGo2OZWo5GhEQqJbiVi16bK0NUSK5hcFMx5nvLTFeJaqcguIFArLAEJ0q7BDCqbzAGpqTIepyd2lKSQNFscLWoDV4dIZKNqjjarh6Tc6m5kKPluTcnUfASBQujtFMzdcJC1rR3aZCqmq1P8tTMaW71JHoieoTOhEOtz4uHVVLYVKKqhR-Kq9Eh/w640-h358/fisherman.jpg" width="640" /></a></div><div style="text-align: center;"><br /></div>
<div class="MsoNormal" style="text-align: justify; text-indent: 0.5in;"><div class="MsoNormal" style="text-align: left; text-indent: 0.5in;">It can be said that in almost all companies, regardless of whether they implement competency-based HR systems or not, the seniority criterion is one of the indispensable criteria in job requirements. As we've probably all seen in job postings, after a few general template competency requirements, there are absolute work experience and education requirements. Of course, if the position is a position that requires qualifications. At the same time, there are extremely low-qualified and inexperienced job seekers who complain about the barrier of the seniority requirement in the labor market. Job seekers in this category sometimes direct their legitimate objections to the company's human resources staff: "Everyone is looking for an experienced employee, so where do we get the experience?" I will try to answer this question in other articles. For now, I would like to share my thoughts on the importance of seniority.</div><div class="MsoNormal" style="text-align: left; text-indent: 0.5in;">Whether companies know its importance or not, in most cases they come to us with a request for an internship. Based on my observations, I can say that companies mostly accept that an employee with experience knows that job and has learned on the job. In some cases, because they do not find other objective criteria to evaluate, they turn to internship and education criteria. It is true that the internship gives the employee knowledge and skills, but the human resources structure of the company should investigate what this knowledge and skills are, what competencies the company needs that can be gained through internship, and whether those competencies are really present in that employee. All qualification requirements are actually designed to meet competency requirements, and as long as they meet these competencies, work experience is as important as other qualification requirements.</div><div class="MsoNormal" style="text-align: left; text-indent: 0.5in;">It is true that an internship is one of the most effective ways to learn a job. In connection with this, I would like to share a part that I remember from an article written about Kjell Nordstrom, one of the most famous thinkers in management science:</div><div class="MsoNormal" style="text-align: left; text-indent: 0.5in;">"My father was a fisherman. He was engaged in fishing all his life. Sometimes he took me fishing with his small boat. After a while, as my experience increased, I began to tell him that such and such a place looks like a good place, let's go fishing here. And my father would only smile and say, "This "No day, the fish are gathered here today," he said, "and he would walk a few miles in that direction. He was right almost every time. I don't ask him how he knew that. He would look at the sky, feel the wind, watch the waves, and analyze the results of it all. he knew where the fish were."</div><div class="MsoNormal" style="text-align: left; text-indent: 0.5in;">As can be seen from Kjell Nordstrom's memoir, his father, who was a fisherman, acquired the ability to determine the right result by analyzing various factors in the field of fishing as a result of long experiences, knowledge and skills related to fishing. But if we bring that experienced fisherman from the cold waters of the north to the Caspian Sea and send him fishing, I wonder if he will be able to catch fish with that skill? As the fish of warm waters are different, the rules of catching these fish can be different. And in order to learn these rules, it will be necessary to practice for a certain period of time, to determine the correct method by making mistakes.</div><div class="MsoNormal" style="text-align: left; text-indent: 0.5in;">In order to avoid the need for such a long internship, employees who perform that job should know the theoretical knowledge of that job in advance and strengthen their knowledge with experience. When we say theoretical knowledge, we don't just mean the knowledge given in formal educational institutions. In addition to this knowledge, rules, procedures, processes, technological routes, forms, normative legal acts and other regulatory documents related to that work, written and oral information related to previous practices and precedents, trainings, seminars and courses, on-the-job training and experiences are also theoretical. defines the framework of knowledge.</div><div class="MsoNormal" style="text-align: left; text-indent: 0.5in;">Work experience is an important criterion for learning a job, but if experience is strengthened with theoretical knowledge, the employee becomes a more professional and skilled worker.</div></div>
Elvin Mahmudovhttp://www.blogger.com/profile/09842959295128234901noreply@blogger.com0tag:blogger.com,1999:blog-7433072833916709916.post-7747950168264065532011-09-27T09:16:00.002-07:002023-08-22T03:13:17.306-07:00KPI Definition Form Example - Competency Index of New Hired Personal<div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj0217srP6MZWm4vojOFfGCSbGQVrbWrAIlJRWnFNugsYGXXnuT2ZqUQhN2LPjKiw-XhHJ34kscrmSqH6UdVtn4wYCXiGOxrRWRUS8UmECPahEZj7opOzwcdUbe9tNKJvyBQIaPukEEXx7E9IDBoHoWQKqSn6m-8mNgUrrgOTUJn3XsTr7i2jHZ7bGJV-a_/s850/KPI.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="460" data-original-width="850" height="346" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj0217srP6MZWm4vojOFfGCSbGQVrbWrAIlJRWnFNugsYGXXnuT2ZqUQhN2LPjKiw-XhHJ34kscrmSqH6UdVtn4wYCXiGOxrRWRUS8UmECPahEZj7opOzwcdUbe9tNKJvyBQIaPukEEXx7E9IDBoHoWQKqSn6m-8mNgUrrgOTUJn3XsTr7i2jHZ7bGJV-a_/w640-h346/KPI.jpg" width="640" /></a></div><br /></div>Dear <span class="Apple-style-span" face="Arial, Helvetica, 'Nimbus Sans L', sans-serif" style="-webkit-text-size-adjust: none; background-color: white; font-size: 13px; line-height: 15px; text-size-adjust: none;"><a class="commenter" href="http://www.linkedin.com/groups?viewMemberFeed=&gid=3728076&memberID=67736079&goback=%2Egmp_3728076" style="-webkit-text-size-adjust: none; background-color: white; border-bottom-width: 0px; border-color: initial; border-left-width: 0px; border-right-width: 0px; border-style: initial; border-top-width: 0px; border-width: 0px; color: #006699; font-family: inherit; font-size: 13px; font-style: inherit; font-weight: bold; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; margin: 0px; outline-color: initial; outline-style: none; outline-width: initial; outline: none; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; padding: 0px; text-decoration: underline; text-size-adjust: none; vertical-align: baseline;" title="See this member's activity">Gulf Elite HR & Recruitment Solution</a>, </span>here I placed an example of KPI Definition Form of Competency Index of New Hired Personal KPI, which used in META Consulting & Investment company upon your request. I hope it'll be useful for you<br />
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<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7f82lNrvknBszKELuCIL6PBZu9slsnGUiHAv7QwLBMitaPz2-nhx-FmZ0ufmG2sGwWDxWhEljl-Quk8iZcg8E4NFUeOnd6jj0rGYMaDgSzsTebmrYs9ARVJPcYbt5DIT20pK53Ryg-gLs/s1600/image002.gif" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7f82lNrvknBszKELuCIL6PBZu9slsnGUiHAv7QwLBMitaPz2-nhx-FmZ0ufmG2sGwWDxWhEljl-Quk8iZcg8E4NFUeOnd6jj0rGYMaDgSzsTebmrYs9ARVJPcYbt5DIT20pK53Ryg-gLs/s320/image002.gif" width="307" /></a><br /></div><div class="separator" style="clear: both; text-align: center;"><br />
</div>Best regards,<br />
Elvin MahmudovElvin Mahmudovhttp://www.blogger.com/profile/09842959295128234901noreply@blogger.com0