Western Siberia Petroleum Company Succession Management Development Utilizing Innovative - Based Technology

Abstract

Establishment and training of the executive pool, planning and control over these processes, systematic and in equal measure, individual way of implementing all these tasks is an important tool of scientifically justified HR policy in a modern company. The goal of the succession pipe line is for the mid – and top-tier executives to fill in vacancies appearing at company subdivisions as a result of employee turnover, quickly and with minimal detriment to the company. The true meaning of this process however is that personnel movement shall not be chaotic but instead as predictable as possible; it shall be a subject to planning and it should fit in the general concept of progressive growth of the company’s organizational structure as to strengthen its human resources. The subject of this article is the succession planning system of a petroleum company in Western Siberia. Through the use of sociological research method – a poll – the factors were defined that contribute to dissatisfaction of the succession pool with managing provided. In order to reduce negative effect of said factors, the implementation of individual development plans for succession candidates is proposed, where as a competency-based approach shall be utilized along with succession candidates’ ‘autonomy week’ routine. Employees’ awareness of a real career advancement opportunity within the organization stimulates their interest in improving own personal competency, increases staff loyalty towards the company and as such binds people’s understanding of career prospects with their current employer.

Keywords: Talent poolorganizationpersonnelefficiencycompetenceinnovations

Introduction

The accelerated pace of the Russian economy modernization on the basis of innovation, as well as increased competition and improving the certainty of the business environment with general political and financial instability, causes an urgent need to develop and implement new methods and forms of management activities that will ensure the organization’s sustainable competitiveness (Robertson & Abbey, 2004). The goal of personnel management lies in initial forming and subsequent effective usage of the company’s human resources, there fore ensuring their normal operating practices (Astahova & Milovidov, 2008; Chulanova, 2016). Cost reduction and effective use of personnel about potential remains in focus of the senior management of companies, organizations and establishments ofvarious levels and sorts. To ales error greater extent, they manage their personnel according to the latest in scientific accomplishments and the best in worldwide practices meant for innovative personnel management (Petriglieri, 2017). Today’s priority is creating favorable work environment (Danielsson & Bodin, 2008; Barck-Holst, Nilsonne, Torbjorn, & Hellgren, 2015; Rogach, Frolova, Kirillov, Bondaletov, & Vinichenko, 2016; Vinichenko, Frolova, Maloletko, Bondaletov, & Rogach, 2016) and humanization of lab our on the grounds of emotional intelligence and emotional competency of the company’s executives (Chulanova, 2016).

Obviously, deliberate attention is paid to innovation in the HR management systemas well as assessmentof personnel at all stages of their presence in a company (Gureva, Kirillov, Vinichenko, Melnichuk, & Melnychuk, 2016; Makhmudova, 2017; Chulanova, 2017). Personnel assessment is an essential ongoing duty of the HR department and line managers. Employees are being assessed both comprehensively and per event, at the start of their labor activity and in the end of their career in a given company. Some executives practice systematic approach to the assessment of their subordinates, others onlyassess performance and progressof their employees periodically (Trubitsyn, Mitrofanova, Khriashchev, & Mitrofanova, 2017).

The results of personnel assessment are the ground for direct management oforganization’s succession pool as well (succession pool training and development).

Prioritized are all innovative technologiesin personnel management (Vinichenko, 2014; Avanesova, Bugaev, Kontsevich, & Sarkisyan, 2016; Aeon & Aguinis, 2017; Chulanova, Kucherenko, Chulanov, Kirillov, & Melnichuk, 2017), assessment of HR and job results (Azevedo, Apfelthaler, & Hurst, 2012; Makhmudova, 2017; Prichina, Orekhov, & Esipova, 2017). Talent management prevails as one innovative technology since it allows for targeted search for talented people beginning with acquisitionand then throughout their entire service in a company (Hughes, 2018; Effron & Orth, 2014) it all owes for a succession pipeline (Kirillov & Vinichenko, 2017), training and development of talented staffin the light ofcompetency-based approach (Chulanova, 2016; Chulanova et al, 2018).

More and more executives of modern Russian companies are focusing their attention on the most effective means of training for the specialists who are able, when needed, to fill senior positions of different levels (Mupepi, 2017). Experience has shown that the search for such professionals outside of a company is an item of significant expenditure in both time and finance. Most recent organizations being oriented towards self-development choose these coned approaches, and in that case we observe a succession pipe line that is able to replant this company’s need for executives of various levels when corresponding vacant positions appear.

Thus, by creating succession pools most companies pursue the following goals:

  • provision of sustainable competitive gains in the context of human resources;

  • establishment of optimum personnel structure able to secure company’s strategic goals.

Problem Statement

Sufficient research has been conducted on the topic of studying work with the reserve pool of staff. The success of such decisions will largely depend on a degree to which company seniors and professionals will prove ready for these new conditions (Bostjancic & Slana, 2018). Significant role will not be played as much by technical retraining of the executives as it will by internal necessity and incentive to seek new solutionsamong employees of the branch (Polyakova, Durakova, Volkova, & Kobceva, 2013). Therefore employees’ motivational mechanism and the extent of their involvement and loyalty shall be changed accordingly. All these changes must find their reflection in the company’s succession planning with the aid of innovative technologies (Gureva et al., 2016).

Research Questions

As summing a fore mentioned issues, the following questions can be considered for a basis of this research:

  • Is there a necessity to implement new more advanced and highly-demanded technologies into a company’s succession planning?

  • How can these technologies affect effective succession planning and the company as a whole?

Purpose of the Study

Based on the above, it seemed relevant to assess the existing management system of the personnel reserve in the organization of the oil and gas complex and, on the basis of the obtained data, to identify evidence either confirming or disproving the need of introducing new innovative technologies into the practice of working with the personnel.

Research Methods

Hypotheses development

The reserve pool organization is a specially formed and trained group of employees who have a high level of managerial competencies and professional skills that meet business requirements, this group is also intended to be promoted.

In accordance with this, it is possible to identify the main objectives of the Company’s work with personnel reserve:

  • ensuring the continuity of the management process and the corporate culture of the Company;

  • minimizing the risks associated with errors in the appointment of a vacant position;

  • ensuring the systematic replacement of vacant leadership positions with candidates with a high level of professional and managerial competence;

  • reduction of the period of adaptation of employees upon appointment to a managerial position;

  • increasing the level of motivation of employees for professional and personal development due to the creation of career prospects.

Sample

In order to determine problems in the company’s succession planning a questionnaire survey has been used. Questioning is one of theme an so communication directed at gathering information.

For the survey, a distant questioning method has been used. This method was first used by F. Galt on to conduct his research. There searcher was studying intellectual abilities and personal development conditions of scientists of the 19thcentury. Hence a survey makes for a procedure of carrying out an inquiry by means of prearranged questionnaire.

Table 1 -
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With consideration of all pro sand cost of this particular sociological research method, the questionnaire ‘Succession planning evaluation’ has been developed.

The selection criterion has been the qualification of a respondent as part of a succession pool (for no less than 1 year). As a result, 120 people have taken part in the survey.

Data collection procedures

Succession candidates have been asked to give answers to four questions. The list of questions is as follows:

Evaluate succession planning in your company on a 5-pointscale.

  • Are you satisfied with the training programs provided for a succession pool? (This question required Yes or No answer. If answering negatively, a succession candidate had to state the reason for it).

  • Do these training programs and practical courses as well as individual coaching and other training methods facilitate the effectiveness of your work? (This question required Yes or No answer. If answering negatively, a succession candidate had to state the reason for it).

Your ideas on improving succession planning in your company.

The survey has been held an only mousy using Google forms, in the course of two months.

Findings

Analysis of the data has brought the following results (Figure 01 ).

Figure 1: Succession planning evaluation distributed to a 5-pointscale. Source: Authors
Succession planning evaluation distributed to a 5-pointscale. Source: Authors
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As it is seen in the figure, succession candidates mostly evaluate succession planning as being ‘good’. Despite this, are as on ably large percent age of respondents (27%) have evaluated the planning as ‘satisfactory’, which suggests that succession planning requires improvements. It is necessary to constantly monitor succession candidates ’management and to provide means for feedback, thus emphasizing the importance of proper succession planning. This will increase personnel in evolvement into efficiency gains in both employee’s work and the company performance indices.

Here we proceed to the next question of the survey which deals with the training programs provided for succession candidates (Figure 02 ).

Figure 2: Satisfaction with the training program. Source: Authors
Satisfaction with the training program. Source: Authors
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The majority of succession candidates (68%) were satisfied with the training program provided. Nonetheless 32% of negative answers are also worth mentioning. The respondents have stated various reasons for such an answer but for the most part, a summarized reason would be that the program was not consistent with the succession candidates’ expectations. Succession candidates would like to have more interest for them on the part of the HR department and to be able to provide better feedback.

Figure 3: Succession candidates’ training program efficiency. Source: Authors
Succession candidates’ training program efficiency. Source: Authors
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Drawing a conclusion from aforementioned data one may tell that succession candidates were generally satisfied with HR management. But there is a significant percent age of those dissatisfied with succession pool management due to various reasons.

As previously noted, those reasons for dissatisfaction of the succession candidates with HR department have been specified differently.

After having analyzed the reasons of discontent of reservists with the work of human resource services, it is possible to say that such an essential task of the personnel reserve in the organization as "formation and development of motivation for further career growth and efficiency of activity of the worker" (Petriglieri, 2017) cannot be fulfilled:

  • Inefficiency of implementing the existing methods of selection, evaluation, and development of reservists. This problem is reflected in the irregularity and unsystematic application of methods of reservists’ assessment and selection, which makes it difficult for the latter to understand the criteria for accession to the personnel reserve and, therefore, the process of interaction with the existing personnel reserve.

  • Not optimal workload for reservists, who are forced to combine their main activities with the ones for their own development. It is necessary to consider the wishes of the manager and the reservists themselves and to create a training program taking into account the specifics of the main activities of the reservist, to form an interest in the successful result of the training process for both the reservist and his/her manager.

  • Disinterest of the reservist in being listed in the personnel reserve pool, due to insufficient feedback, low moral and financial incentive.

As for the last open question, all recommendations of reservists on improving the quality of work with the reserve can be summarized as follows (Fig. 04):

Figure 4: Recommendations of reservists about improvement of quality of work with a personnel reserve. Source: Authors
Recommendations of reservists about improvement of quality of work with a personnel reserve. Source: Authors
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As such, a new approach is being proposed in this paper to lay out individual development lan for succession candidates. It will be recalled that the individual development plan is being made for each succession candidate and is a document, composed under the supervision of HR department assisted by responsible seniors in order for a candidate to develop competencies required to successfully carry out duties in a superior position.

We believe that a development plan will be less of a formality after implementation of a competency-based approach (Chulanova, 2016). Competence is a social and labor characteristic of an employee which aggregates knowledge, skills and abilities and professionally important qualities and motivational characteristics that exhibit emergence and are necessary to achieve success and that comply with the job requirements and the company’s strategic goals. Competence is a characteristic of potential quality and it encompassed ascription of practically every element of personnel’s readiness to work efficiently in a given work environment under given conditions and as a team (Chulanova, 2016).

Competency analysis and evaluation per succession candidate serves as a basis for a development plan as well as self-training for each succession candidate.

Levelled approach and different competency evaluation methods en able reviewing the results and defining ‘weak’ points of the competencies required by a succession candidate. Next, their areas for development are identified. It should be emphasized that the most important competences have to be developed incrementally (Makhmudova, 2017). An individual development plan shall include 1-2 competencies at each stage. Then each competence is supported by 3-5work events or actions that facilitate capacity building. Key factor is avoiding treating succession candidates’ competency building as a formality, and because of that an individual plan shall have precise wording of set goals and defined timeframes.

As an important means of succession candidates’ practical training and assessment of their leadership skills, personal qualities and professional aptitude, a ‘Succession candidate’s autonomy week’ may be held periodically within an organization.

Its goal is to evaluate read in esse of a succession candidate to carry out executive tasks in the proposed position and to adjust the areas for competency development, and for succession candidate to obtain hands-on executive experience.

Employees placed within a succession pool assume job duties, rights and responsibilities of an executive to whom they are deemed successors. A succession candidate performs all required management duties, and also be are responsibility for all decisions made. Succession candidate is supervised by a senior, i.e. acting executive.

Following the end of such experimental week a succession candidate together with their immediate superior (participation of higher-ranking executive is also possible) determine the positive and negative results of a succession candidate’s performance, determine the extent of their training, practical managerial and other skills and abilities, and analyze errors in order to correct them and avoid them in future.

At the competition committee meeting, divisional managers report on the week’s results, review results of the succession candidates’ practical activities, make proposals regarding further development of their competencies and rank advancement. Evaluations of their performance are madeutilizing360-degree feedback (Effron & Orth, 2014).

It is proposed that in future talent management technology shall be based off the ground of systematic approach. Succession planning by means of talent management technology assumes training using modern technologies such as guidance, coaching, mentoring, supervision, consulting, walkthrough teaching.

The following issues dictate the need for succession pool development based off talent management:

  • the need for better professional aptitude and abilities as to carry out company’s strategic goals;

  • the need for better managers being ‘grown’ within the company, which will reduce time and finance expenditure and make effective results possible;

  • the need for additional knowledge and skills required by a succession pool worker stat willet both employees and the organization achieve better results;

  • the need for feedback generated by a succession pool which is necessary in order for them to advance in ranks.

There we may also list main methods and principles of HR department development based off talent management technology:

  • succession planning on the basis of talent management technology is the tool to ensure company’s important strategic goals;

  • succession planning shall not accumulate unnecessary skills and knowledge that provide company no benefit;

  • succession planning shall become a motivator of sorts for not the succession candidates only but for the rest of company personnel too;

  • if succession planning does not fall in line with corporate development strategies, such planning shall be deemed ineffective.

At the initial succession planning stage, a check is being carried out on whether there is a demand for talented employees able to secure sustainable long-term company operation. Professional succession planning is necessary in order to improve professional competencies of the employees.

It is worth noting that proper selection of methods and tools used to achieve the goal of succession planning is an important stage of the process. In order to perform succession planning effectively, a number of methods have to be utilized. It is essential to carryout initial analysis of own succession planning expertise as well as experience of domestic and foreign enterprises.

The analysis shall be represented by three constituents:

1) enterprise-level;

2) subdivision-level;

3) level of the employee, who is on the succession planning list.

Therefore, tasks and functions shall be defined at each of the company’s subdivisions according to succession planning requirements in order to carry the main goal of succession pool development with the use of talent management technology. Further differentiation is done between the employees of these a me sub divisions for the purpose of distinguish in highly skilled professionals to fill in key roles in the company.

Consequently, the efficiency with which the initial stage processes are accomplished affects end goal. In adequate performance at any stage may significantly decrease or nullify the efficiency of talent pool management.

A good succession pipe line maybe achieved with well-developed individual plans that guarantee maximum effect. An individual development plan is meant for long-term candidate development through performing practical tasks to the end result. It is also recommended to get Assessment centers involved in order to evaluate and improve upon professional competencies of the succession candidates.

Questionnaire survey makes it possible to define the attitude of succession candidates towards development process as a whole and to find possible effects in the individual plans. This is the basis for a progress report that in turn allows for further improvement in the process of succession planning and candidates development. If down sides are discovered they should obviously be eradicated.

Conclusion

In order for a company to achieve its strategic goals, especially for large companies, a combination of several succession planning strategies is the most effective approach. Right now, as it is during any transitional period, a company mayget a substantial competitive edge if itsHR management is built according to the new tendencies (Mitrofanova, Mitrofanova, Konovalova, Ashurbekov, & Trubitsyn, 2017).

Common action during crisis which is to freeze recruitment and toclose personnel development projects including succession planning is not effective. Even in crisis it is necessary to find ways to develop, retain and even attract talented employees, and this is becoming more real as labor market changes.

The logical and consistent way to continue this research is, in the author’s opinion, to design and implement the modelof succession pipeline system on the basis of talent management technology which should improve upon the process ofsuccession planningin an enterprise and ensure success in all talent-related strategic goals.

Overall, planning succession within an organization and focusing effort son recruitment and development of the talent poolare the tools able to provide the company with a solid competitive edge over the long run (Hughes, 2018). It should be stressed that the succession planning system is only an effective and viable management tool whenever it is in clouded into the unified HR policy, is built with business plan in mind and is supported by senior executives.

Proper succession planning is an indication, on the one hand, of the competence of management hierarchy, and on the other, a pledge of efficiency of the whole enterprise.

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18 December 2019

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Cite this article as:

Makhmudova*, I., Chulanova, O., & Korosteleva, D. (2019). Western Siberia Petroleum Company Succession Management Development Utilizing Innovative - Based Technology. In & V. Mantulenko (Ed.), Global Challenges and Prospects of the Modern Economic Development, vol 57. European Proceedings of Social and Behavioural Sciences (pp. 1748-1758). Future Academy. https://doi.org/10.15405/epsbs.2019.03.177