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Development paths of integration processes in holding entities

https://doi.org/10.38013/2542-0542-2017-4-4-11

Abstract

The paper focuses on the mechanisms of increasing the corporate community of large industrial associations and introduces new approaches to developing the corporate culture at the integrated structures level. The experience of the “Almaz – Antey” Air and Space Defense Corporation in arranging scientific-technical, sport, mass cultural events and creative activities is summarized.

For citation:


Kozlov G.V., Korobeynikova E.V. Development paths of integration processes in holding entities. Journal of «Almaz – Antey» Air and Space Defence Corporation. 2017;(4):4-11. https://doi.org/10.38013/2542-0542-2017-4-4-11

Introduction

Consolidation of companies into integrated structures is a necessary step in the integration process. However, this is but the initial stage, at which, besides the transfer of shares to the managing company, various processes are implemented. For fullfledged implementation of the mission of a holding company under formation, it is necessary to organise close cooperation between subsidiaries on the basis of a strategic development plan that provides for the development and implementation of a unified scientific and technical policy, creation of a scientific reserve, optimisation of production capacities, modernisation of the equipment, unification and standardisation of products, creation of a unified financial and economic environment, implementation of corporate human resources and social policy.

For successful implementation of these integration processes, the development of the corporate community of employees within subsidiaries and formation of committed ties between them are of great importance. This is a very challenging and time-consuming process, which cannot be solved by administrative action. A corporate community (or more precisely, its level) is the result of targeted measures for the formation and development of corporate culture, which is known to perform two main functions: internal integration of employees and external differentiation of the organisation as a business partner, employer, etc.

The issue of corporate community formation assumes the highest relevance in large holding companies. The main specific features of such associations are:

• high numbers and structural diversity of the human resources (in terms of age, gender, profession, etc.);
• territorial dissociation of the enterprises within the holding company;
• the impact of the socio-political and economic situation in the region where the holding company’s enterprises are located;
• different production and economic specialisation of the enterprises within the holding company (serial production plants, research and production institutes, repair and maintenance enterprises).

A high level of corporate community within the holding company enables to successfully resolve such key issues as the dissemination of common standards, enterprise management norms, prompt resolution of arising issues by branch establishments without involving the head office, exchange of experience, implementation of best practices at all enterprises of the holding company, staff rotation between enterprises of the holding company, resolution of HR problems and increasing the viability of not only individual subsidiaries, but also the holding company on the whole [1].

The result of all actions aimed at forming a corporate community is the creation of trusting relationships. The trust-based atmosphere emerges when solving common problems and interacting on the basis of common interests. The abovementioned mechanisms of integration processes are used in solving common problems, and their application enables the formation of business relationships, primarily at the subsidiary management level. Additionally, the contacts formed on the basis of common interests contribute to the task of forming a corporate community at the individual and corporate team level.

In this article, the mechanisms of corporate community development are considered on the basis of projects launched by the participants in the work team leader identification program of “Almaz – Antey” Air and Space Defence Corporation [2][3]. Fourteen projects containing specific suggestions and mechanisms of their implementation have been developed within the targeted call for proposals.

The interests and hobbies of people are very diverse, but among them one can single out those that are most naturally suited to the formation of horizontal links in corporate structures. They can be divided into several groups:

• scientific and technological conferences and seminars;
• thematic training camps for professional and inter-professional groups;
• corporate media;
• festive events and celebrations;
• sports competitions;
• intellectual games;
• creative contests;
• individual hobbies.

Scientific and technological conferences and seminars

Scientific and technological conferences and seminars are an important and necessary form of communication between researchers, developers, process engineers and production engineers. These events promote networking among employees, dissemination of knowledge and best practices, professional development and scientific growth of specialists. The specialised conferences of the Corporation are held by major institutes and design bureaus, while more general conferences are held by the “Almaz – Antey” Science and Education Centre named after Academician V. P. Efremov [4][5].

Thematic training camps for professional and inter-professional groups

One of the most effective tools for sharing best practices are regular (annual, as a rule) training camps for managers and leading specialists representing certain professional groups (general directors, managers of HR departments, accountants, IT specialists, PR specialists, QA/QC specialists, etc.). The meetings are used for training, exchange of experience, announcement of the results of annual competitions, informal communication, and professional networking.

Besides, worthy of note are the meetings of inter-professional group representatives, such as participants in the work team leader identification program and the Board of Captains, the Corporation’s scholarship holders, and the Corporate Council of Young Specialists (CCYS).

Corporate media

The following three categories of corporate media can be distinguished: scientific journals, multi-discipline publications, and digital media.

The scientific journals are intended for publishing the results of original research and development projects. The availability of published scientific articles is a prerequisite for candidate and doctoral theses defence. To that end, large corporate structures with developed scientific and technical potential invest funds and make efforts to support their journals that meet the requirements of the Higher Attestation Commission (HAC). The Journal of “Almaz – Antey” Air and Space Defence Corporation is issued on a quarterly basis and is open to all those willing to place a free publication in their specific field (Fig. 1). The Special Journal of “Almaz – Antey” Air and Space Defence Corporation is intended for publication of classified materials.

Fig. 1. Journal of “Almaz – Antey” Air and Space Defence Corporation

Multi-discipline newspapers and journals cover various activity aspects of the Corporation as a whole and of its subsidiaries. The major enterprises have their own publications, which are very popular among the employees and present an efficient tool of unifying the personnel.

In recent years, digital media have been actively developing. These include, first and foremost, corporate websites, social media pages, internet portals and forums. The use of those tools makes it possible to effectively form an information environment for communication and exchange of experience between the holding company employees through regular publication of press and post-event releases, statements on the most important or acute topics, as well as initiation of online discussions. A key part here is played by the PR services of the holding company as a whole and of its subsidiaries.

Festive events and celebrations

At all levels, from family to state, birthdays and foundation days of the holding company and individual organisations are celebrated.

The Victory Day is in truth a second birth of the country. At the state level, this holiday fosters the patriotism of citizens, especially the youth, through appreciation of how grand the labour and exploits of the previous generations were (Fig. 2).

Fig. 2. The Immortal Regiment event at JSC FNPC NNIIRT

The Foundation Day is a good occasion to remember the outstanding people who laid the basis upon which today’s scientific and manufacturing successes rest. At enterprise and corporate level, it is an occasion to take stock of the endeavours undertaken by the work teams, as well as to reward and commemorate the front-rank performers. By the initiative of the participants in the work team leaders identification program, a Corporation’s Book of Honour will be created, with the names of front-rank employees.

Sports competitions

In the modern world, sports are becoming an increasingly important mechanism for countries to demonstrate their status on the international stage. World championships and Olympic victories have become politically important and exert great psychological influence on citizens.

In the integrated structures, sports competitions between enterprise teams are very popular and attract the interest of employees. Since 2011, in accordance with a decision of the Corporation management, company-wide sports competitions for the Corporation Cup in mini-football and table tennis have been held annually. Since 2018, two additional sports have been supplemented: men’s and women’s volleyball and swimming.

The competitions are arranged in two stages. Regional competitions are based in Moscow, St. Petersburg, Ulyanovsk and Ekaterinburg. Based on their results, athletes who come in 1st and 2nd take part in the final games held at the sports complex of the North Western Regional Centre of “Almaz – Antey” Air and Space Defence Corporation. It should be particularly noted that PJSC MZiK employees (Ekaterinburg) have been showing advanced sports achievements over several years, which is the result of good organisation of sport-related activities at this subsidiary (Fig. 3).

Fig. 3. PJSC MZiK football team, long-standing Corporation Cup holder

Drawing a further analogy with professional football, we can conclude that it is advisable for the Corporation to reach a higher level of competition in order to develop corporate community as well. In particular, it means competing with other integrated structures of the defence industry complex and other corporations. The first step in this direction has already been taken. Thus, in 2017 representatives of two of the Corporation enterprises (JSC FNPC NNIIRT and JSC Moscow Mechanical Engineering Plant Avangard) took part in the Rostec Summer Games held in the city of Alushta. Athletes competed in two sports: mini-football and table tennis. The next stage in the development of this initiative will be the creation of the united team of the Corporation, bringing together the best athletes from the subsidiaries.

Development of children’s sports at the level of the holding company is no less important from the standpoint of forming a corporate community. Thus, since 2016 “Almaz – Antey” Air and Space Defence Corporation has held the international children’s and youth tournament “Lev Burchalkin Cup” (Fig. 4) in memory of the legendary Zenit football club forward, who started his football career with the Bolshevik sport club team (now “Almaz – Antey” football club). The aim of the tournament is creating a positive image of Russia, strengthening friendly relations with the European Union among other countries, promoting and boosting football among the younger generation. Athletes under the age of 14 representing renowned football clubs of Russia and Europe take part in the tournament: Zenit (Saint Petersburg), CSKA (Moscow), Villarreal (Spain), Lokomotiv (Moscow), Brodarac (Serbia), HJK (Finland), Dynamo (Moscow), and others. The winners of the first two cups were the visitors from Spain, Villarreal FC. The “Almaz – Antey” team won an honourable 3rd place in 2017.

Intellectual games

Intellectual games and competitions are very popular in our country, which is due to the high intellectual potential of citizens. KVN stand-up show and What? Where? When? quiz game have gained true popular affection. They are favoured in schools, at campuses and at enterprises of various industries, including the defence industry. “Almaz – Antey” Air and Space Defence Corporation has created teams at a number of subsidiaries, between which annual competitions are held. In 2017, intellectual competitions were held between the youth of the subsidiaries for the first time. In March, Almaz R&P Corp. hosted What? Where? When? quiz game (Fig. 5), and in November, Izhevsk Electromechanical Plant hosted young intellectuals from 32 subsidiaries who competed in Management Combats (Fig. 6).

Fig. 4. “Almaz – Antey” football team (St. Petersburg)

Fig. 5. The team of the North Western Regional Centre of “Almaz – Antey” Air and Space Defence Corporation – winner of What? Where? When? quiz game

Fig. 6. Management Combats, a new format of intellectual games

In addition to that, the first inter-corporate competition was held in 2017, which proved to be a great success and enjoyed considerable interest among the Corporation employees. Two teams from each side participated in the competition. The final stage of the game was an extremely fierce and engaging competition. There are plans to develop this initiative in the future, and Vega Corporation team has already been challenged to participate.

Creative contests

The main corporate event is the Courage Festival, which has been held over several years due to the initiative of Izhevsk Electromechanical Plant Kupol [5].

The third festival, held in 2016, brought together an unprecedented number of young people: 350 people were representing 23 enterprises from St. Petersburg to Novosibirsk. The contest program traditionally included creative assignments (KVN, the choreographic show Film Casting, Best Art Object), sports competitions (volleyball, sports tourism) and intellectual games.

Creative contests in preparation for the New Year’s concert in the North Western Regional Centre of “Almaz – Antey” Air and Space Defence Corporation are loved and enjoyed (Fig. 7) [6].

Fig. 7. Yipee! The Carnival! – a New Year’s party held at the North Western Regional Centre of Almaz – Antey Corporation

Individual hobbies

People are brought together not only for work reasons, but also by other interests and hobbies. The expansion of such contacts among employees of the subsidiaries is promoted by bringing them to the corporate level. In particular, by uniting amateur poets, a collection of poems can be published for the next anniversary of the Corporation, an arts exhibition (even in digital format) can be presented comprised by the works of enthusiast artists, and a digital forum can be created for communication between avid fishermen, hunters, gardeners, etc. Such initiatives can be implemented without significant costs, they do not require interrupting people from their professional activities, and their benefit for the development of corporate community is evident.

Similar initiatives will be implemented through the efforts of the participants in the work team leader identification program, one of the objectives of which is development of corporate community of the personnel of Corporation’s subsidiaries. In terms of program implementation, in-absentia rounds and training camps were held in 2017, leading to the nomination of a group of 54 winners from 27 subsidiaries. In 2018, the second stage of the program was underway, and as a result, the number of winners is expected to double. The Board of Captains of the teams participating in the qualifying rounds was established to ensure communication with the program participants. The networking structure of the program participants is shown in Fig. 8.

 

Fig. 8. Networking structure of the work team leader identification program participants

The functions of the Board of Captains are as follows:

• developing the work plan;
• coordination of the interaction between teams;
• interaction with the centre;
• monitoring the situation around leaders;
• preparing an annual report;
• elaboration of proposals for the future.

The work plan foresees the participation of the program winners and teams in the implementation of most of the corporate community development activities listed above. Their activities are conducted in direct contact with the program’s management at the head office, supervising the work by the Board of Captains and providing financial and administrative assistance.

The winners of the program are in constant interaction, working on solving the received tasks, expanding their network within the Corporation and developing their managerial skills. Coupled with other forms of program activities, such as advanced training, postgraduate studies, Master of Business Administration (MBA) degree in the defence industry complex, thesis defence and mentoring activities, this should contribute to their competence growth and personal responsibility development not only in regards to the results of their work, but for the Corporation enterprises as a whole.

Conclusion

The activities under discussion, aimed at forming a corporate community, are very diverse in their nature and forms of organisation, but all of them have a shared objective: bringing together the thousands-strong body of the Corporation’s personnel. This is a prerequisite for unconditional fulfilment of its key mission of protecting the country in the aerospace area.

References

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About the Authors

G. V. Kozlov
“Almaz – Antey” Air and Space Defense Corporation, Joint Stock Company
Russian Federation

Kozlov Gennadiy Viktorovich – Doctor of Physical and Mathematical Sciences, Professor, Deputy Head of the Office of the Director General – Head of the Administrative Office. Science research interests: radiophysics, management of holding entities, corporate culture development.

Moscow



E. V. Korobeynikova
Federal Research and Production Centre “Nizhniy Novgorod Research Institute of Radio Engineering”, Joint-Stock Company
Russian Federation

Korobeynikova Elena Vladimirovna – Candidate of Psychological Sciences, Deputy Head of Service – Head of HR Department. Science research interests: personnel management, corporate culture development, appraisal of personnel performance, staff development, management efficiency improvement.

Nizhniy Novgorod



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For citation:


Kozlov G.V., Korobeynikova E.V. Development paths of integration processes in holding entities. Journal of «Almaz – Antey» Air and Space Defence Corporation. 2017;(4):4-11. https://doi.org/10.38013/2542-0542-2017-4-4-11

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ISSN 2542-0542 (Print)