Content
Content
INTRODUCTION 3
CHAPTER 1. THEORETICAL ASPECT OF LEADERSHIP AND PEOPLE
MANAGEMENT 5
1.1. Evolution of perspectives on leadership: from management theories to
leadership models 5
1.2. Fundamental principles of leadership and personnel management 13
1.3. The role of leadership in shaping an effective team 17
CHAPTER 2. PRACTICAL ASPECT OF LEADERSHIP AND PERSONNEL
MANAGEMENT IN A RETAIL COMPANY 21
2.1. Current state of human resource management in the retail company 21
2.2. Tools and methods for effective personnel management in the company 23
2.3. Development of a strategy for implementing management approaches in
the business context 33
CONCLUSIONS 42
REFERENCES 44
INTRODUCTION
3
The object of research of this concept was leadership behavior and the conclusion
that a leader can be educated. The concept of leadership behavior includes theories:
Lewin's three leadership styles, Ohio State University research, Michigan University
research, the Likert management system, the management grid, the concept of rewards
and punishments, and leadership substitutes.
Levin's three leadership styles.The German scientist Kurt Lewin, having
conducted research, identified three styles of leadership: authoritarian, democratic and
liberal and the factors affecting their effectiveness. Levin proved that management styles
do not have clear boundaries between them, but on the contrary can smoothly transition
from one to another, forming a continuous chain. At the same time, increasing the
degree of manifestation of one style reduces the manifestation of others [6].
Ohio State University Researchwere conducted with the aim of developing a two-
factor leadership theory based on the study of the structure of relationships in the
organization and interactions within these structures. In the first case, the behavior of the
leader was studied, with the help of which he organizes and determines the structure of
relationships in the group (roles, rules and work procedures), in the second case, the
relationship between the leader and followers was studied. It was found that the most
effective leaders are those who pay attention to both variables.
University of Michigan researchwere conducted to determine the differences in
the behavior of effective and ineffective leaders [2].
They studied the concentration of the leader's attention on work and on
employees. The conclusions were reached: an effective leader is one who tends to
support employees and develop good relationships with them; uses a group approach to
management; sets a high level of work performance and stressful tasks.
These studies formed the basis of Rensis Likert's concept "Management System 1,
2, 3 and 4". He distinguished two categories of leaders: employee-oriented and work-
7
M.2. - people are not capable, but want to work, B.2. - Reassuring - directiveness and support
they have motivation, but lack skills and abilities
M.3. - people are capable, but do not want to B.3. - Participation - motivation and involvement
work, they are not interested in what the manager
11
offers
M.4. - People are able and willing to do what B.4. - Delegating - developing a creative
their manager suggests approach to work
organization seeks to move in the future. However, the definition of the mission is no
less important. The mission describes the main purpose and meaning of the organization.
This is what the company exists for, what values it stands for and what needs it satisfies.
The mission is a kind of compass that guides the activities of the organization at each
stage of its development.
The task of HR management is to ensure that every team member understands and
agrees with the vision and mission of the company. This means actively involving staff
in formulating these elements, clarifying their meaning and encouraging input.
Management must ensure that each employee understands how their work fits into the
overall context of the vision and mission. This may include conducting trainings,
creating clear communication channels and constant reminders of the company's target
orientations. It is also important to create an environment in which employees feel they
are part of the bigger picture and that they are making an important contribution to the
achievement of shared goals [17].
The leader, being responsible for the development of strategies, has the important
task of determining effective ways to achieve the goals and vision of the organization.
This includes an analysis of the external environment, an assessment of internal
resources and competitiveness. A leader must be a strategic thinker, able to identify key
success factors and determine the strategies that will most contribute to the achievement
of the goal. This may include developing new products, introducing innovations,
expanding markets or optimizing processes.
Personnel management plays an important role in the implementation of the
strategies developed by the leader. Defining specific tasks and plans is a key step in this
process. Management should reveal strategies for specific actions and tasks for team
members. This may include assigning tasks, defining deadlines, establishing
responsibilities and interactions between different departments or employees. It is also
15
important to establish a monitoring and reporting system to ensure that strategies are
implemented effectively.
Ensuring clarity of tasks and their compliance with strategic goals helps direct the
entire team to achieve common goals. The interaction of the leader and personnel
management in this context determines the effectiveness of strategic development and
its implementation in practice [32].
The leader, responsible for leading the team, must create an inspiring environment
in which team members can develop and maximize their potential. This involves
creating an atmosphere that supports creativity, innovation, and the open exchange of
ideas. A leader must be a role model in managing his own development, creating a
culture where learning and growth are an integral part of the work process. An
organization where everyone feels that their contribution is important and valuable
becomes an open field for unlocking the potential of each team member.
Personnel management has the task of creating an effective team environment in
which each employee feels important and interacts with other team members. This
includes the formation of high-quality communication links between participants, the
creation of a positive working climate and the support of interaction. Management
should help resolve conflicts, promote cooperation, and ensure mutual assistance within
the team. Common goals and mutual understanding of tasks form effective team
dynamics, where everyone feels their role in achieving common goals [18].
The focus on personal development and support of team interaction contribute not
only to the efficiency of task performance, but also increase the morale and engagement
of team members. Successful team leadership includes promoting personal growth,
building a positive psychological climate, and creating conditions for achieving
collective success.
A leader who is responsible for motivation and recognition recognizes and
understands the individual needs and motivators of his team members. This includes not
16
only material incentives, but also an understanding of the personal and professional
goals of each employee. A leader must create an environment where employees feel that
their efforts are valued and important to the achievement of common goals. This may
include recognizing high achievement, providing opportunities for self-improvement
and development, and creating a supportive work environment.
Human resource management uses a variety of motivational techniques to
maintain employee performance and satisfaction. This may include a system of rewards
and recognition for achievements, providing opportunities for training and professional
development, as well as creating a transparent career growth system. An important
element is considering the individual characteristics and wishes of employees in order to
motivate their commitment and involvement in work. Positive feedback, constructive
guidance, and opportunities for self-expression help improve team morale and
productivity [23].
Addressing individual needs and motivators, as well as providing recognition for
achievement, are key elements of effective leadership in the context of employee
motivation and satisfaction. This not only increases work efficiency, but also helps
create a positive work climate where employees can develop and achieve great results.
Effective leadership involves ensuring open and effective communication within
the organization, creating mechanisms that allow everyone to understand shared goals
and objectives. This includes regular meetings, briefings, electronic communication
tools and other tools for communicating information. A leader must create a sense of
openness and accessibility so that team members feel that their views and ideas are
important. In particular, this may include clarifying strategies, emphasizing the
importance of each contribution, and promoting open exchange of information between
all levels of management.
Personnel management involves the ability to listen, express ideas and
instructions clearly and comprehensibly. This means not only transmitting information,
17
but also actively listening to employees, taking into account their opinions and taking
into account important aspects in communication. Management must show empathy and
understanding of the individual needs and perspectives of employees. Clear and
understandable instructions create conditions for completing tasks without
misunderstandings, and also support effective cooperation within the team [19].
Thus, for both leadership and personnel management, effective communication is
defined by openness, clarity, and mutual understanding. This allows achieving common
goals while maintaining a high level of internal coordination and employee involvement
in common tasks. Therefore, these principles interact with each other and create a basis
for effective leadership and personnel management, contributing to the success of the
organization.
processes. If he plans to remain the leader of the group without being a member of it,
then he concentrates on creating conditions that ensure the maximum effective use of the
potential of team activity, and also reserves the functions of monitoring and evaluating
the team's performance. He can perform both roles at the same time, being, for example,
in the strategic planning team and remaining the managerial leader of a number of teams
at lower levels of management. In each case, he acts as a change agent, whose task is to
create conditions for the effective functioning of the team, first of all due to the approval
of the common vision of its mission and the specifics of its activities.
The influence of the management leader on the team is determined by the
following interrelated factors [30]:
- objective goals and capabilities of the managerial leader in team formation and
management;
- individual characteristics of group members, their personal motives, competence
and expectations;
- features of the team formation stage and group dynamics processes;
- organizational goals, strategy, their connection with the goals of team activity;
- the management leader's choice of an appropriate way to support the team.
The management leader carries out his activities in the formation and
management of the team in the following areas [24]:
- providing assistance to team members in the reorientation of their expectations,
dominant motives of behavior and experience (in order to transfer the aspirations of
subordinates from self-realization to the fulfillment of a single task);
- assisting team members in their desire to realize themselves as a team where
everyone has common values and behavior patterns;
- helping team members to understand the role of interdependence in success or
failure;
- increasing the degree of trust and mutual understanding between team members;
21
PJSC "Zorya" is one of the leading companies in the field of printing and has a
modern production base for the creation of high-quality packaging, advertising and label
products.
The mission of PJSC "Zorya" is to fully satisfy the demand of consumers in the
field of production of plastic products and printing products. The main goal of the
company is to constantly improve the quality of goods and services to meet the needs of
consumers, both in the field of printing and in the field of animal identification. In the
field of printing, the company has a full range of works that allow you to create a wide
range of printing products [25].
- advertising polygraphy (postcards, booklets, prospectuses, brochures,
posters, postcards, calendars);
- packaging products (boxes for food products, boxes for Christmas
decorations, packaging forperfumes, various configurations and designs of boxes for
New Year's gifts);
- branded advertising stands for beer glasses
In the field of animal identification, the company's work is aimed at providing
consumers with the necessary tools for effective agricultural business. PJSC "Zorya" is a
national manufacturer and distributor of modern means of animal identification.
Also, the printing enterprise develops advanced technologies and implements
modern onesequipment, providing quality and efficiencyperformance of such works
22
bodies and structural subdivisions, reflects the distribution of powers between structural
subdivisions and their subordination, and enables optimizing the decision-making
process related to the fulfillment of set tasks and goals.
PJSC "Zorya" has a complex branched organizational three-level management
system, which includes three management structures: general meetings; - Supervisory
Board; - CEO. This structure provides for the separation of powers and the transfer of
responsibility for decision-making by function vertically. The structure of PJSC "Zorya"
has divisions that ensure the implementation of the following main functions of its
activity [33]:
1. development packaging and labeling products and means for
identifying animals and introducing new technologies into production.
2. Production, control and supervision of the quality of printing products
produced;
4. Marketing and sale of printing products.
The organizational structure of PJSC "Zorya" is linear and functional, such a
structure is the most common nowadays. It successfully combines linear divisions that
perform the entire scope of basic economic activity with departments and services that
implement specific management functions at the scale of the entire organization
(planning, production, finance, marketing, personnel). The transfer of current
management to the heads of line divisions and the functional distribution of management
activities of the organization as a whole allow top management to focus on solving
strategic problems of the company's development, to ensure the most rational interaction
with the external environment. The organizational structure acquires a certain strategic
potential, and management - the conditions for its implementation.
2.2. Tools and methods for effective personnel management in the company
24
The essence of the personnel management system of PJSC "Zorya" is work with
personnel, in accordance with the concept of the development of a printing enterprise
(Fig. 2.1).
The goal is to achieve an optimal leveling of the processes of updating and maintaining the
numerical and qualitative composition of personnel so that they meet the needs of the enterprise, the
requirements of current legislation and the state of the labor market.
Promotion WageLabor
Certification
system policy,
Recruitment,
organization
personnel
training Determination
Planning
costthe
selection forof
needand
management the general
personnel
evaluation strategy
taking
of personnel of the enterprise
into account the personnel
reserve
One of the most important elements is the definition of the general strategy of
personnel management. It develops and details the business and corporate strategies of
the printing enterprise and subordinates to the task of their implementation. The
personnel management strategy of Zorya PJSC is to attract highly qualified employees,
26
constantly improve their professional skills and create attractive working conditions to
ensure the competitiveness, stability and reliability of the enterprise.
The management system at Zorya PJSC is based on the following principles [35]:
- Importance (people are the key and most valuable componententerprises);
- Reasonableness (any decisions and actions regarding personnel should be
made and implemented only to increase the efficiency of the printing enterprise);
- Systematicity (any decisions and actions regarding personnel should be
made and implemented only taking into account all management elements);
- Objectivity of evaluation (the company guarantees that the evaluation of
each employee and candidate for positions is carried out objectively. Objectivity means
that the evaluation of each employee or candidate for a position is carried out according
to uniform criteria, in accordance with established evaluation procedures and as
independently as possible from the subjective judgments of managers, employees, etc.);
- Focus on the result (all departments, specialists and managers must have a
clearly defined result of their activities and all employees must strive to achieve it. This
result is the criterion for evaluating success, and it is also the only criterion on which the
system of stimulation and motivation of PJSC personnel is based " Star");
- Continuous personal development and ensuring the self-realization of
employees (the development of the enterprise directly depends on the development and
self-realization of its employees);
- Correspondence of financial remuneration to qualifications and the level of
personal participation in the enterprise's activities (the system of material remuneration
of employees takes into account not only the qualifications of the employee, but also
contributes to increasing the level of his personal participation in the enterprise's
activities).
The personnel management system of Zorya PJSC formulates requirements for
managers and employees specific to different functional areas. These requirements are
27
So, the company has a fairly wide range of types of professional training.
One of the main problems that hinders the professional training of employees at
PJSC "Zorya" is the low responsibility of employers for the level of professionalism and
qualifications of employees, as well as the reluctance to allocate funds for this. In
Ukraine, the responsibility for financing vocational training rests only with the
employer, so a significant number of enterprises do not have the opportunity to improve
31
ensuring the effective operation of the enterprise, at implementing and introducing new,
as well as changing old approaches to managing the enterprise structure.
PJSC "Zorya" has a management hierarchy (pyramid) with differentiation
according to the rank of command authority, decision-making competence, authority,
position: higher, middle and lower levels of management. The management hierarchy is
a tool for realizing the company's goals and a guarantee of maintaining the system. The
higher the hierarchical level, the greater the volume and complexity of performed
functions, responsibility, share of strategic decisions and access to information. The
director belongs to the highest level of management. Up to the middle level of
management: financial director, production director, development director, commercial
director, advertising director. The lower level of management includes the director of the
economic department, the chief accountant.
Table 2.3 shows the distribution of company managers by management level.
Zorya" refer to the middle level of management. The head of the enterprise at the
highest level ensures the interests and needs of the owner of the printing enterprise,
develops the policy of the organization and promotes its practical implementation.
Middle management managers ensure the implementation of the organization's
operational policies developed by top management and are responsible for bringing
more detailed tasks to divisions and departments, as well as for their implementation.
33
The managers of the lower management level are responsible for bringing specific tasks
to the immediate executors [28].
Therefore, the organizational structure of PJSC "Zorya" is a prerequisite for the
effective functioning of all subsystems of the enterprise, as well as the basis for
achieving its strategic goals. At the same time, within the framework of the management
structure, there is a management process (flow of information and management
decision-making), among the participants of which management tasks and functions, and
therefore rights and responsibilities for their implementation, are distributed. In this
context, it is appropriate to investigate the level of staff motivation as a value
characterizing the staff's motivation to work to achieve personal and enterprise goals.
Comparing the results of PJSC "Zorya" activity and indicators of the level of work
motivation will allow to determine the direction of improvement of personnel
management methods. The indicator of the level of staff motivation gives an idea of the
degree of staff participation in decision-making, planning, control and evaluation of
activity results, the level of management decentralization, the orientation of the
motivation system towards the achievement of personal or collective goals, which
allows determining the main areas of improvement of the company's personnel
management system.
The analysis of the effectiveness of the staff on the economic activity of the
printing enterprise begins with the study of the supply of the enterprise with employees
in terms of number, structure, qualification and cultural and educational level and the
characteristics of the labor force movement. The purpose of such an analysis is to
identify internal labor savings reserves in connection with a more rational placement of
34
workers, their loading and use in accordance with the received profession, specialty and
qualification.
The personnel management system of printing enterprises should be formed on
the basis of modern principles that will enable such enterprises to achieve both general
goals within the selected markets and a high level of employee commitment. An
effective personnel management system is work with personnel in accordance with the
concept of enterprise development [41].
In this context, a diagnosis of the personnel management system at PJSC "Zorya"
was carried out in order to make corrections in the current management system. Thanks
to it, a complete picture of the already formed personnel management system and
training scheme was obtained, and its weak points were identified, namely [15]:
- lack of eyesnkathe role of staff participation in the adoption of rishenand in the
planning oflazinessand pidprisrevenge;
- low vidpovandfar awayandStmanagement for riwhereprofessionanalandto
changeand qualifandkatsof workgot intoandin.
‐ inmissingandStcreative methodsinfell downnyastaff on pidprisvendettaand
Based on the analysis, measures to improve the personnel management system at
Zorya PJSC are proposed (Table 2.4).
Specialist in personnel
training and Specialist in personnel
development selection and
adaptation
Communications specialist Sector of social development
and stimulation of employees
The main task of the HR director will be to build a strong team within the
division. The director bears individual responsibility for the quality of the team in his
unit; is responsible for maintaining valuable members of his team, providing them with
motivational and career opportunities; is responsible for maintaining the image of PJSC
"Zorya" inside and outside the company; in cooperation with the HR department, they
36
ensure the availability of promising candidates for key positions in their department,
including through the constant search for the best candidates on the market [34].
The main task of the head of the personnel management department will be the
formation of a strong team within the unit. He bears individual responsibility for the
quality of his team, ensuring the retention of valuable employees and providing them
with motivational and career opportunities. The manager is also responsible for
maintaining a positive image of PJSC "Zorya" both inside the company and outside of it.
In cooperation with the human resources department, they ensure that promising
candidates are available for key positions in their division, including a constant search
for talented candidates in the market.
To achieve effective personnel management at Zorya PJSC, it is important to
establish a system that will be regulated by the "Regulations on the Personnel
Management Department". This document should include the following sections [42]:
1. General provisions. The personnel management department is recognized as an
autonomous structural unit of the apparatus.
2. Tasks of the department: This section defines tasks aimed at ensuring personnel
support, forming a stable workforce, reducing staff turnover and strengthening labor
discipline.
Sub-tasks of the relevant units (HR department, training and development sector,
etc.) include:
- development and implementation of personnel policy in accordance with
internal standards and concepts of personnel management;
- creation and maintenance of an information and analytical base for decision-
making regarding personnel management;
- organization of safe working conditions and provision of material and moral
stimulation of employees.
37
necessary for effective competition on the market. It is important to realize the gap
between the existing knowledge of the staff and the need for them to acquire new,
sustainable skills.
Taking this into account, it is suggested to consider trainings as an initial stage in
the process of implementing a corporate training system. The process of creating an
effective training system consists of three consecutive stages. First, the management of
the company recognizes the need to use progressive training methods and starts using
trainings. The next step is to develop staff development programs that involve a regular
set of training activities planned in advance.
At the final stage, provided that the importance of the role of personnel potential
is understood, a comprehensive system of corporate training is created, which is
currently the most improved form of development of professional and personal skills of
personnel.
The assessment of the effectiveness of employee training is determined using the
performance criteria presented in the table. 2.5.
The manager is satisfied About a month after the end of the training, an evaluation is
with the training results carried out using a special questionnaire that takes into account the
revealed in the employees' effectiveness of the training.
activities
In particular, new and important tasks facing the personnel service include
training, advanced training and retraining of employees. The main goal of these tasks is
the formation of competitive personnel, and they require the service to develop and
implement training and personnel development strategies.
CONCLUSIONS
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