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Elena Egorova Educational and Scientific Institute “Higher School of Economics and Management” (IEM) Faculty: Management (FM) Department: Personnel Management and Labour Economics (PMLE) Speciality: “Personnel Management and Labour Economics” (PMLE) Theme of Master's Work: “Management of the Company Personnel Security” Scientific Supervisor: Ph.D. (in Economics), Associate Professor of the PMLE department Natalia Podluzhnaya |
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ABSTRACT Master's Qualification Work "Management of the Company Personnel Security"
INTRODUCTION In the economic instability and the importance of entrepreneurship in the operation of various enterprises is the notion of personnel security. Its software is necessary for the elimination of social and economic threats in the industrial and commercial activities of the enterprise. The basis of management personnel security is personnel management. Without vetting careful selection, training, testing personal qualities and other procedures the organization can't do a balanced and effective work processes, so the managers should think about personnel security. TOPICAL ISSUE While managers are seeking to protect their business from external threats, competitors or other independent conditions, no less a threat may come from within enterprise, from its staff. Research in the field of personnel security given an opportunity to reduce this threat, anticipate and eliminate it, as well as prevent it. Currently, the company felt the growth of level of threats from their own staff. This threat is associated with increased risk in the management of personnel. The negative consequences of these risks may not only lead to a deterioration in business management, but also to a complete loss of its owner, etc. [1] AIMS AND OBJECTIVES Objective - research issues of security personnel for domestic enterprises from an example of one of them, the rationale for the implementation of measures for its protection in current conditions and make appropriate recommendations. To achieve this goal the following tasks must be solved:
The object of study is a staff of domestic enterprises. The subject of the study are research methods, management and evaluation of personnel security company. In progress Master's thesis such methods are applied: surveillance and information gathering, analysis and synthesis, systematic approach, method of expert estimates. PROPOSED SCIENTIFIC NOVELTY The analysis of available research data on master's work revealed the following. Currently, issues of personnel security on the domestic enterprises are not seen everywhere. The problem only recently been given the necessary attention. It follows that the optimal governance mechanism security personnel had not yet worked out. It is proposed to bring the most appropriate support mechanism for calculating the indicators which show the status of personnel security on domestic enterprises. Also recommendations on the management of this process will be provided. APPROBATION The results of work were reported at VI International scientific-theoretical conference of young scientists and students "Actual problems of economic and social development of the productive sphere"(DonNTU, May 21-22, 2009), X International scientific-practical conference of students and young scientists "Economics and marketing in a global integration: challenges, experiences, best thought"(DonNTU, March 25-26, 2010), International student conference "Modern trends in management: legal and economic aspects" (DonNTU, Department of Management and Business Law, April 22-23, 2010)and published in the respective collections. REVIEW OF RESEARCH AND DEVELOPMENT RELATED In DonNTU. The research on this topic has dealed with Associate Professor of PMLE Podluzhnaya Natalia. Her thesis of Candidate of Economic Sciences on "The Organization of management of economic security of the enterprise" is dated by June 8, 2001. Now she is engaged in issues of personnel security. Professor of the PMLE department Irina Shvets develops the economic security in personnel management and makes risks analysis. In Ukraine. Table 1 provides a list of Ukrainian researchers in the field of personnel security and themes of their works. Table 1 – The work of scientists in the field of personnel security.
Ukraine hasn't entered into any one of the world rankings on the intranet and fraud against him. True, this is not the reason to rejoice in the business and state-owned companies in our country with no face. In 2006, the average state-owned enterprise Ukraine annually accounted for violations, which cost 10 mln. hrn. The situation in the business is a little better, but we have known cases where dishonesty of employees led to a multimillion loss. Therefore, Ukrainian businesses following in the footsteps of foreign companies and more actively implementing measures to combat thefts from his own pocket. The most common measure is the protection, but the companies that deal with multi-million dollar annual turnover and create a department of internal audit and internal controls. However, the most effective way to combat corporate crime are the denunciations of fellow criminals. With such an ancient method about 17% of all corporate crimes are revealed. [2] In the world. From the economic crimes of its employees are suffering more than 40% of companies losing as a result of theft of up to 7% of their income. Now many companies are struggling with this scourge. But, according to Grant Thornton International Business Report, to combat intra fraud rose for 45% of companies worldwide. A study conducted in 33 countries among 7800 companies, found that the most active fighters against theft live in the North American Free Trade Area (NAFTA; Canada, USA, Mexico), and the most passive - in East Asia. However, pay attention to this problem companies begin only when personally feel a lack of money in the corporate pocket. The company's management is trying to do everything possible to continue to not give them such opportunities. Year by year grows more and more organizations, which impose a system of corporate security, internal audit, encourage whistle blowing and fight to strengthen the "corporate ideology". According to research Grant Thornton International in 2007 the number of companies hit by fraud all available measures to combat them has increased by 12%. In the ranking of countries in which the owners of the companies more likely to hold a security service, leading the Philippines (72%), Mexico (71%) and Russia (63%). Not far away USA, Armenia and South Africa. Here, 60% of companies consider it necessary to protect themselves from fraud on their own staff through internal security department. In Canada, Argentina, the Netherlands and Australia - 40% "conservative" companies. Vietnam, Denmark and Japan bottom the list, where internal control is made only by a 20% of companies. T here is a direct connection between the level of intra-corporate theft and the level of combat . Low activity of Japan in the fight against this scourge specialists, for example, is explained by the high corporate spirit in Japanese companies and devotion to the team leader. In the U.S., the level of intra-corporate fraud is only slightly less than the number of firms which have already started to deal with them (52% versus 59%, respectively). Although type positions, responsible for internal security, 87% of U.S. firms, according to the Association of Certified Experts intra-corporate fraud in U.S. forces was not "preventive" care, and already the offender. But in general, experts are not branding the countries with a large number of companies that have security departments, as such, that are at greatest level of intra-corporate theft. In Russia, for example, high levels of anti-fraud investigators GTI explain such as the traditional "love" of Russians to law enforcement and the various security agencies. [2] In Russia I. Chumarin the most deeply engaged in matters of personnel security. He was the first in the CIS who is widely coined the term "personnel security". He has numerous articles, seminars, as well as a monograph on this subject. Also he was the first in the CIS who in 1999 given the status of a member of the International Association of Certified Fraud Experts on intra-corporate (U.S.). REVIEW OF EXISTING RESEARCH OF THE TOPIC Under the personnel security the process of preventing negative impacts on the economic security of the enterprise through the risks and threats associated with the staff, his intellectual capacity, and labor relations in general understanded. The essence of the impact of staff on economic security can be illustrated by the following scheme (Fig. 1). [3]
Figure 1 - Areas of the human factor influence on the economic security
of the enterprise
(animation: size - 40,4 Кb; image size - 400x300; shots quantity - 7; delay between shots - 100 ms.; delay between last and first shot - 500 ms.; number of repetition cycles - endlessly) Personnel security is not the result. It's an ongoing process to prevent undesirable actions by staff, which can harm the company. If the whole of the security must meet the security service organization, the responsibility for ensuring personnel security rests on the shoulders of the manager of HR. According to statistics, the ratio of external and internal threats to the company refers as 20 to 80. Thus 4/5 of all the problems are born within the company in the ranks of their own staff [4] Personnel security threats may be classified on several parameters. For example, the stage of interaction between workers and enterprises - those that arise in employment during the employee's work at the plant and separation. [1] Also they may be classificated by type of destructive behavior of staff - afety violations, theft and fraud, the destruction of a coherent moral climate. [5] Classification according to the types of examples of poor performance of HR - in the absence of monitoring, the fallacy of any findings, the absence of monitoring system. [6] The classification can lead to parameters that depend on the specific nature of the problem. For any enterprise undesirable presence in the team - at work, in government organization - employees who are or may potentially enter into one or another risk group. The risk group is the totality of people who have fallen under the influence of the most common types of relationships, thus having a deviant behavior (from the Latin. Deviatio - "evasion"). This behavior is associated with the human desire to escape from reality by changing the state of his mind. Avoiding reality is always accompanied by strong emotional experiences. Man in fact doesn't depend on the object itself, but on emotion. Emotions are an integral part of addiction. Man planted on the "emotional hook", it's very easy to manage. [1] The risk is as follows:
The main risk groups include members of religious formations, alcoholics, drug addicts, players, members of financial pyramids. Failure to carry out almost complete screening of candidates (due to legal and other factors) leads to the appearance in the organization of so-called risk groups (Fig. 2). These are people who have fallen under the influence of any of the dependencies, which are unreliable and demonstrate wrongful destructive behavior. [3]
Figure 2 - Threats to personnel security caused by risk groups. Bad faith conduct of ordinary workers can be prevented through direct observation, use of technical means of verification (such as cameras and special computer software that allows you to check what do the employees at the workplace) and based on measuring the results of work (for example, the number of manufactured parts). However, the direct monitoring of managerial behavior is ineffective, and evaluating the results of their work is very difficult. The surest way to protect yourself from unscrupulous managers - to limit the relationship around proven partner whose reliability is no doubt. It is recommended to prevent threats from staff (and from the leaders in particular) to analyze both the internal performance of the enterprise and external - the competitiveness of products, the reputation of the firm. Internal indicators are based primarily on profit figures, while the external act as market indicators, reflecting the well-being of shareholders - stock price dynamics of enterprise, the size of dividends paid. Manipulating these parameters is much more difficult because the valuation of the company is giving the market from the outside. [7] For example, the most important criteria of economic security are the indicators of financial and economic activities of the company. This group of indicators includes the characteristics of liquidity, financial condition, turnover and profitability. Parameters of these categories are included in the financial component of economic security, as deduced from the relevant management accounting and reporting. The main criteria for personnel security groups are: 1) numerical performance of the staff and its dynamics; 2) performance skills and intellectual capacity; 3) indicators of performance of staff; 4) quality indicators of motivational systems. [8] The Code of Labour Laws specified a number of documents that directly affect the safety of the enterprise, and service staff is just obliged to ensure their availability, accuracy, efficiency and lack of negative legal consequences. These documents primarily include:
The possibility of specific types of threats for specific risk groups and the methods of their prevention may be traced such as in example (Table 2). Table 2 - The classification of threats to enterprise risk and methods of prevention
Some of the risks associated with personnel security are advisable to insure. These risks include:
But one of the most important factor in ensuring the safety of personnel in the company and as a consequence, the method of prevention of threats, is the formation of a workers' loyalty and commitment to the enterprise. Social technologies have lead to the achievement of the following parameters:
- Raising the level of commitment or
loyalty to the collective enterprise; Organizational commitment is a psychological formation, including a positive assessment of the employee of his stay at the company, intends to act for the benefit of the enterprise for the sake of its objectives and maintain membership in it. Lack of commitment is a factor inadequate, incompetent management of the enterprise, a factor functioning of weak social technologies, and is expressed in the alienation of the worker from the company. In the organization of inclination can be divided into 3 main components. 1. Identification is the realization of company's goals as their own, and it depends on the extent to which employees informed about the status of the company, about the prospects of solutions are important to their business or they are proud of the fact of work for this company, whether they consider it a fair evaluation of their work. 2. Engagement is the desire to exert their own efforts, contribute to achieve the objectives of the enterprise, provides for the involvement of readiness when required by the target company, and additional efforts are not limited to duties, self-esteem, based on satisfaction with their professional achievements and his work, interest in achieving significant for enterprise business results, the responsibility for the results of their work. 3. Loyalty is an emotional attachment to the enterprise, the desire to remain a member, it states that this work raises for workers: the satisfaction of the work conducted, the feeling of attention and concern on the part of companies' satisfaction with their careers at the company, the confidence in the desirability of continuing work on this enterprise, the confidence the leadership [11]. Developments have shown that the commitment of the staff have a high level of respect for oneself and others, they are willing to accept the new without panic and resistance, take into account the interests of others and less susceptible to propaganda and manipulation of conventions. [12] CONCLUSION At this stage, personnel safety is not yet comprehensive coverage of the topic. It is in active development, the majority of entrepreneurs are interested in applying innovative, effective, scientifically sound management practices. From the personnel security depends those just how can be sure a leader of company in the competence of its employees, that the company won't succumb to the danger caused by the staff. The process of protecting businesses from the risk begins at the stage of selection of employees to existing vacancies. That is literally the first minute, when the person responsible for the selection of staff, sees a candidate for employment. And this process of protection exists continuously during the entire period of operation of the enterprise, as it continually operates at its staff. Analyzing the available data, we can conclude that at this stage there is no generally accepted "best" scheme for domestic enterprises analyze and act on personnel security. In the master's works are planned to study the current situation, to justify and calculate some figures (as well as a series of observations) that will reliably indicate the status of personnel security in the enterprise. Next will be given the appropriate conclusions and recommendations. REFERENCES
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REMARK In writing this essay Master's work is not yet completed. Final completion is scheduled for December 2010. Full text of the work and materials can be obtained from the author or his manager after that date. |
