Wage adjustments for employees are a reactive mechanism to changing market conditions and form a significant part of pay policy. Though various attempts to explore wage levels and wage differentials have been made, wage adjustment policies remain an understudied topic. This paper analyses the determinants of wage adjustments based on data from Russian companies 2015–2017. The analysis is based on detailed data from an employer survey which covers more than 5,000 firms in both the public and private sector. The study adopts probit models to identify the reasons for wage revisions, depending on internal employer characteristics and external labour market conditions. The results are in line with previous research on the topic and suggest that both internal and external factors influence wage adjustments. A wage adjustment is a reflection of an ability to pay, meaning that revisions are often made by successful firms with high employee turnover. Institutional frameworks, especially trade union activity, affects a firm’s decision to adjust wages, despite the widely-held opinion regarding the insignificance of unions in Russia. This study contributes to the limited literature by analysing the determinants of wage policies depending on a firm’s characteristics. This is the first study of its kind based on extensive Russian data.
In this study we analyze topics and sentiments of online job reviews for 989 organizations operating across 12 different knowledge-intensive industries in Russia. Using text mining techniques, such as topic modeling and sentiment analysis, we identify factors of job satisfaction and examine how they differ for former and current employees of Russian organization. The analysis reveals that (1) working arrangements and schedule, (2) working conditions, (3) job content, (4) salary/wage, (5) career development, (6) psychological climate and interpersonal relations with co-workers are the six key topics discussed by employees online in relation to job satisfaction, with the latter — psychological climate and interpersonal relations — being the most widely discussed topic, especially for current employees. Overall, our study suggests that in their decision to leave the company, employees are more likely to tolerate economic factors of job satisfaction (such as salary, career development and working arrangements) rather than socioemotional factors (such as poor relationships with their co-workers and content of work).
High-growth companies, also known as gazelles, are an important source of economic growth. The development conditions of such companies differ by country. In case of Russia, it is enhanced by a special population structure: about 80% of Russian gazelles are affiliated with business groups. The authors set themselves the task of understanding how dependence or independence of gazelles is related to their chances of becoming fast-growing. The study shows that in Russia the standard factors that determine the likelihood of transition of independent firms to the rapid growth are statistically insignificant for affiliated firms, and even approximately do not explain the process of their transformation into high-growth companies. The authors offer a hypothesis that the most important factors of the transformation of affiliated firms into gazelles should be sought on the demand side (the possibility of growth on intracorporate orders; access to government orders; the availability of technologies that open the ways to unsaturated markets, etc.).
This article reviews how CEOs of technology companies can be successful in companies performance at different stages of the life cycle. The object of the research is the tech companies of the United States of America. The companies are given special attention today as the driver of the new economic cycle. Due to the fact that the technology sector is closely related to the personalities of CEOs, who determine the vector of development, activities and functioning of companies, the study analyzes the choice of the most suitable leader depending on the stage of the life cycle.
This paper analyses the impact of two reforms dealt with transparency improvement and adoption of more flexible regulation on effectiveness of procurement of a large state university (Higher School of Economics) in the period from 2008 to 2012. We evaluate the impact of two significant changes in the public procurement regulation: transfer to electronic auctions and adoption by this organization of its own Procurement Provision. We show that transfer to electronic auctions leads to higher competition and more significant price decreases, whereas the adoption of Procurement provision has an opposite effect. Regarding such indicator as delays in contracts execution, the first reform has no effect and the second regulation changes result in decreasing of delays.
This paper addresses the question of existence of relationships between usage of contemporary marketing practices and profitability for companies operating on the Russian market. To address this issue, we utilize an artificial intelligence method that so far was barely present in marketing and management science. The paper is not only promoting a novel research method, it also establishes the relationships between profitability and specific sets of marketing practices. We show that the companies having negative profitability make use of a wide spectrum of marketing practices (with an exception of interactive marketing) and they do not prioritize any specific types of practices. In contrary, profitable companies intensively use interactive marketing and also combine it with IT-marketing and network marketing. This shows that successful companies focus on relationship marketing in a variety of its forms.
The article presents analysis of the impact of human resource management systems (HRM) on the financial performance of banks operating in the Russian market. The sample includes 67 banks with different organizational characteristics (nationality of capital, ownership, lo-cation of the head office, number of years of operation in the Russian market). The research is based both on qualitative (a survey of heads of HR services of banks) and quantitative (analysis of financial statements of banks). Data were collected in the period from 2011 to 2015. Initially, the main indicators characterizing the effectiveness of the HRM system (labor productivity and return on investment in human capital), as well as indicators of the financial performance of banks (return on assets and return on capital), were calculated. Further, with the help of the system of econometric equations, the impact of performance indicators of HRM systems on financial results of banks was determined. The study revealed that, on one hand, implementation of the functions of the HRM system does not have a positive impact on financial performance of the bank. At the same time, the impact of effects of some particular variables characterizing the HRM system itself (orientation on the strategic goals of the bank, the composition of the functions performed, the automation of functions, the flexibility and innovation of the HRM system, the amount of personnel costs) on performance of banks was revealed. So, the positive effect of the HRM system arises from its orientation towards the strategic goals of the bank, as well as with the use of electronic systems that automate the functions of HRM and thus improving the timing and quality of their implementation. Together, these variables, characterizing the HRM system, increase the return on investment in human capital. If the bank also achieves the flexibility and innovation of the HRM system, then labor productivity also increases. This, in turn, has a positive impact on the financial performance of banks.
The paper is devoted to the analysis of CEO letters as an instrument for influencing the expectations of shareholders and potential investors. The aim of the research is to analyze empirically the influence of semantic characteristics of CEO letters on financial indicators of the company. The authors suggested that CEO letter’s tonality, its length and readability have a great impact on the company’s financial indicators, their prediction and mid-year stock value. To check the hypotheses stated, a sample group of 102 Russian companies was analyzed with the use of “bag of words” method (specialized dictionaries were applied). For this purpose, neural network models were also developed. The results obtained confirmed the influence of CEO letter’s semantic characteristics on the stock value of company.
The authors examine manifestations, individual and organizational antecedents and consequences of abusive supervisor behavior which is defined as regular humiliating, suppressive, rude and insulting day-to-day practices towards subordinates. Empirical analysis is based on the online survey of 198 employees from private and public organizations. We found, first, that abusive supervision in Russian organizations is most often manifested in coercion to do routine and unqualified work tasks; ignoring of subordinates’ ideas and initiatives; public critique in an insulting manner; cheating subordinates. Second, our investigation shows that respondents attribute such behavior to demonstration of power or to supervisors’ poor communicative skills. Third, we revealed that the strongest predictor of abusive supervision was employee’s economic dependence, namely, the reward system depending rather on personal leader-employee relationships than on objective performance indicators. Forth, abusive supervision considerably decreases employees’ job satisfaction and work engagement, contributes to burnout and intentions to quit.
Currently the stakeholders of companies, in Russia and worldwide, need the instruments which enable them to detect financial statements fraud. The models developed by M. Beneish and M. Roxas are the examples of such instruments. However these models can not take into account specific features of accounting reporting regulations, accounting standards and business practices in Russia. Based on the sample of 60 Russian companies the authors discovered that the models by Beneish and Roxas identify whether financial statement fraud takes place or not only in 62% and 58% of cases respectively. The article suggests and assesses the revision of models’ benchmarks on the base of data on Russian companies. This revision increases the performance of models proposed by Beneish and Roxas to detect financial statement fraud.
Статья посвящена рассмотрению двух новейших методов стимулирования — геймификации и автоматизации по KPI. В ней представлены результаты эмпирического исследования геймификации, которое стало одной из первых попыток систематизации всех теоретических аспектов, связанных с формами игрового стимулирования. Кроме того, авторы проводят теоретический анализ другого современного управленческого инструмента — автоматизации по KPI. Результаты исследования двух подходов позволяют прояснить их место в исторически сложившейся системе методов стимулирования, а также сделать некоторые прогнозы относительно перспектив их развития.